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Monday, March 19, 2018

Dibrugarh University Question Papers: Corporate Accounting' 2017 (May)

2017 (May)
(General/Speciality)
(NEW COURSE)
Full Marks: 80
Pass Marks: 24

1. (a) Fill in the blanks:                                                   1x4=4
                                 i.            Reserve capital is a part of ____ capital.
                               ii.            A company can declare and distribute dividend even if its Memorandum and Articles are ____.
                              iii.            Reduction of share capital is ____ except when sanctioned by the court.
                             iv.            Profit of the subsidiary company made after the date of the purchase of shares by the holding company is treated as ____ profits.
    (b) State the following statement whether True or False:                                         1x4=4
                                 i.            Bonus shares can be issued to the existing members only.
                               ii.            Dividends cannot be declared except out of profits.
                              iii.            Payments made to debentures holders should be considered as part of purchase consideration.
                             iv.            In a wholly owned subsidiary, there is no minority interest because all the shares with voting rights are held be the subsidiary company.
2. Write short notes on (any four):                                           4x4=16

a)      Prorata Allotment.
b)      Convertible Debentures.
c)       Corporate Dividend Tax.
d)      Purchase Consideration.
e)      Minority Interest.
f)       Goodwill.
3. (a) What is bonus share? What are the circumstances that warrant the issue of bonus shares? State the SEBi guidelines for issue of bonus shares.                                                            2+5+7=14
Or
(b) Ledger balances of Kaveri Ltd. as at 31st March, 2016 were as follows:
Credit Balances
Rs.
Debit Balances
Rs.
Share Capital:
Equity Shares of Rs. 100 each, fully paid
7% Redeemable Preference
Security Premium Reserve
Capital Reserve
Revenue Reserve
6% Debentures
Creditors


5,00,000
3,00,000
50,000
1,00,000
2,00,000
3,00,000
1,50,000
Fixed Assets
Investments
Cash
Other Current Assets
8,00,000
1,00,000
2,00,000
5,00,000

16,00,000

16,00,000
Both the redeemable preference shares and debentures were due for redemption on 1st April, 2016. Kaveri Ltd. took the following steps in this respect:
a)      It issued 2000 Equity shares of Rs. 100 each at a premium of 10%, the shares were fully subscribed and paid for.
b)      It sold the investments for Rs. 90,000.
c)       It arranged a bank loan to the extent necessary.
The redemption was fully carried out.
Give Journal Entries to record the above and prepare the Balance Sheet of the company immediately afterwards.                                                                                                                                                                                                           8+6=14
4. (a) Give a specimen form of Balance Sheet and Profit & Loss statement of a company according to the Companies Act, 2013 taking imaginary figures.                                    7+7=14
Or
(b) The Trial balance of a company as on 31st March, 2016 shows the following items:

Dr. Rs.
Cr.  Rs.
Provision for Income Tax A/c
Advance Payment of Tax A/c
-
1,55,000
70,000
-
You are also given the following information:
         i.            Advance payment of tax includes Rs. 65,000 for 2015 – 16.
       ii.            Actual tax liability for 2015 – 16 amounted to Rs. 68,000 and no effect for the same has been given so far in the accounts.
      iii.            Provision for Income Tax to be made for 2016 – 17 is Rs. 80,000.
Prepare the various Ledger A/c involved and also show how relevant items will appear in the Balance Sheet of the company.                                                            10+4=14
5. (a) X Ltd. and Y Ltd. decided to amalgamate and a new company XY Ltd. is formed to take over both the companies as on 31st March, 2016. The following are the Ledger balances of the companies as on that date:
Credit Balances
X Ltd.
Rs.
Y Ltd.
Rs.
Debit Balances
X Ltd.
Rs.
Y Ltd.
Rs.
Share Capital of Rs. 10 fully paid up
Surplus A/c
Dividend Equalization Fund
Workmen Compensation Fund
Bank Overdraft
Sundry Creditors
Bills Payable

5,00,000
2,30,000
-

20,000
-
90,000
50,000

3,00,000
2,00,000
1,00,000

-
50,000
1,10,000
30,000
Goodwill
Land & Building
Plant & Machinery
Patents & Trade Marks
Sundry Debtors
Stock
Bills Receivable
Cash at Bank
1,00,000
2,50,000
2,00,000
-
90,000
2,00,000
-
50,000

80,000
1,90,000
2,55,000
52,500
40,000
1,50,000
20,000
2,500

8,90,000
7,90,000

8,90,000
7,90,000

Show how the amount payable to each company is arrived at and prepare the Amalgamated Balance Sheet of XY Ltd. assuming amalgamation is done in the nature of purchase.                                                          6+8=14
Or
(b) Explain the various provisions of alternation of share capital as given in the Companies Act, 2013 with examples. 14
6. (a) The following are the Ledger balances of H. Ltd. and its subsidiary company S Ltd, as on 31st March, 2016:
Credit Balances
H Ltd.
Rs.
S Ltd.
Rs.
Debit Balances
H Ltd.
Rs.
S Ltd.
Rs.
Share Capital:
Shares of Rs. 10 each fully paid
General Reserve
Profit & Loss A/c
Creditors
Bills Payable


6,00,000
1,50,000
70,000
90,000
20,000


2,00,000
70,000
50,000
60,000
10,000
Machinery
Furniture
Investment:
70% of shares in S Ltd. at cost
Stock
Debtors
Bills Receivable
Cash at Bank
Preliminary Expenses
3,00,000
70,000


2,60,000
1,75,000
55,000
20,000
50,000
-
1,00,000
45,000


-
1,89,000
30,000
10,000
10,000
6,000

9,30,000
3,90,000

9,30,000
3,90,000
H Ltd. acquired the shares of S Ltd. on 30th June, 2015. On 1st April, 2015, S Ltd. General Reserve and Profit & Loss a/c stood at Rs. 60,000 and Rs. 20,000 respectively. Bills receivable of S Ltd. include bills for Rs. 8,000 accepted by H. Ltd. and creditors of S Ltd. include Rs. 20,000 due to H. Ltd. No part of preliminary expenses was written off during the year ended on 31st March, 2016. You are required to prepare the Consolidated Balance Sheet as on 31st March, 2016 showing therein how your figures are arrived at.                                                     14
Or
(b) Give in detail the particulars which shall be disclosed in the Balance Sheet of holding company regarding its subsidiaries and also state what documents shall be attached to the Balance Sheet of holding company regarding its subsidiaries.                                                     8+6=14
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
1. (a) State whether the following statements are True or False:                                                               1x4=4
                                 i.            Shareholders get interest.
                               ii.            A debenture holder is the creditor of a company.
                              iii.            Internal reconstruction means reduction of share capital of a company which is to be reconstructed.
                             iv.            Insolvency is not a necessary condition for liquidation of a company.
    (b) Write the correct answer:                                                                 1x4=4
                                 i.            Preference shareholders are
1)      Owner of the company.
2)      Creditors of the company.
3)      Customers of the company.
                               ii.            A contributory is a
1)      Debenture holder.
2)      Shareholder.
3)      Creditor.
                              iii.            The Companies Act, 1956 defines a subsidiary company under Section
1)      3
2)      4
3)      5
                             iv.            Accounting for amalgamation relates to Accounting Standard
1)      12
2)      13
3)      14
2. Write short notes on (any four):                                                           4x4=16
a)      Forfeiture of Share.
b)      Buyback of Share.
c)       Reduction of Share Capital.
d)      Voluntary Winding-up.
e)      Minority Interest.
f)       Redeemable Preference Share.
3. (a) Luit Co. Ltd. issued 10000 shares of Rs. 100 each at a premium of 10% payable as under:
                On Application – Rs. 30
                On Allotment – Rs. 60 (including premium)
                On Call – Rs. 20
Bikash holding 700 shares failed to pay the call money. The company forfeited his shares and reissued them to Jatin as fully paid up at Rs. 90 per share. Give Journal entries to record the above transactions and show the Balance Sheet of the company.            8+4=12
Or
(b) Discuss the provisions of the law with regard to redemption of redeemable preference shares as laid down in Section 80 of the Companies Act, 1956.                                                  12

4. (a) Liabilities and Assets of X Ltd. as on 31st March, 2016 are given below:
Liabilities
Rs.
Assets
Rs.
Paid-up Share Capital:
2000000 Equity Shares of Rs. 10
Security Premium Reserve
General Reserve
14% Redeemable Debentures
Current Liabilities 

2,00,00,000
20,00,000
1,80,00,000
1,00,00,000
1,00,00,000
Freehold Property
Stock-in-Trade
Sundry Debtors
Bank Balance
2,00,00,000
1,20,00,000
1,00,00,000
1,80,00,000

6,00,00,000

6,00,00,000
It was resolved in the meeting of shareholders:
                                 i.            To buyback 20% of Equity Shares @ Rs. 12 per share.
                               ii.            To utilize General Reserve for buyback of shares.
                              iii.            To utilize securities premium for premium on buyback of shares.
                             iv.            To immediately cancel the shares bought back.
Pass Journal Entries and draw up the Balance Sheet after the above transactions have been given effect to.  6+5=11
Or
(b) Journalize the following transactions at the time of issue of redemption of debentures in the books of the Company:                                                 3+4+4=11
                                 i.            Issued Rs. 90,000, 13% debentures at 10% discount, redeemable at par.
                               ii.            Issued Rs. 90,000, 13% debentures at par, redeemable at 10% premium.
                              iii.            Issued Rs. 90,000, 13% debentures at 5% premium, redeemable at 10% premium.
5. (a) Distinguish between the following:                                                              6+5=11
                                 i.            Amalgamation in the nature of merger and Amalgamation in the nature of purchase.
                               ii.            Pooling of interest method of amalgamation and Purchase method of amalgamation.
Or
    (b) P Ltd. had the following Balance Sheet as on 31st March, 2015:
Liabilities
Rs.
Assets
Rs.
Share Capital:
8000 Equity Shares of Rs. 100 each fully paid
7½% Debentures
Profit prior to incorporation
Sundry Creditors  


8,00,000
3,00,000
10,000
2,00,000
Land & Building
Plant & Machinery
Goodwill
Patents
Cash in Hand
Stock
Debtors
Profit & Loss A/c
Preliminary Expenses
4,00,000
3,50,000
1,00,000
20,000
10,000
90,000
1,00,000
1,90,000
50,000

13,10,000

13,10,000
The following scheme of reconstruction was adopted:
         i.            Each share was to be reduced to a share of Rs. 50 each.
       ii.            Each shareholder was to subscribe for half the number of shares already held by him and pay immediately in cash for the new shares acquired.
      iii.            All fictitious assets including goodwill and patents were to be eliminated.
     iv.            A provision of 5% on debtors in respect of doubtful debts to be created.
       v.            Machinery was to be written down by Rs. 40,000.
Give Journal Entries to record the above and show the Balance Sheet after the scheme is carried through. 6+5=11
6. (a) What do you understand by the Liquidator’s Final Statement of A/c? Give a proforma of such an account with imaginary figures.                                                            4+7=11
Or
(b) The following particulars related to a limited company which has gone into voluntary liquidation. You are required to prepare the Liquidator’s Final Statement of Account allowing for his remuneration @ 2% on the amount realized and 2% on the amount distributed to unsecured creditors other than preferential creditors:                             11

Rs.
Preferential Creditors
Unsecured Creditors
Debentures
10,000
32,000
10,000
The assets realized the following sums:

Rs.
Land & Building
Plant & Machinery
Fixtures and Fittings
20,000
18,650
1,000
The liquidator expenses came to Rs. 1,000
7. (a) A Ltd. (holding company) acquired 4000 shares of B Ltd. (subsidiary company) as on 1st April, 2015. Their Balance Sheet as on 31st March, 2016 stood as follows:
Balance Sheets
As on 31st March, 2016
Liabilities
A Ltd.
Rs.
B Ltd.
Rs.
Assets
A Ltd.
Rs.
B Ltd.
Rs.
Share Capital:
1000 Equity Shares of Rs. 10 each fully paid
5000 Equity Shares of Rs. 10 each fully paid
Profit & Loss A/c
Creditors



1,00,000

-
40,000
40,000



-

50,000
10,000
20,000
Fixed Assets
Investment:
4000 Equity shares of B Ltd. at Rs. 12.50 each.
Current Assets
1,00,000



50,000
30,000

60,000



-
20,000

1,80,000
80,000

1,80,000
80,000
On 1st April, 2015, the Profit & Loss A/c of B Ltd. showed a loss of Rs. 15,000 which was written off out of profit earned in 2015 – 16. Prepare a Consolidated Balance Sheet as on 31st March, 2016                                                                 11
Or
(b) Discuss the provisions relating to holding company laid down in Section 212 of the Companies Act, 1956.        11