BCom In Accounting & Finance (BCAF) SEM V 2018 19 Nov 2018-19 FINANCIAL ACC. V Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 (A) Rewrite sentence after selecting correct alternative (Any Eight) 8 marks
2. Q1 The underwriter is entitled to claim remuneration on
   • a) The issue price of shares underwritten
   • b) The face value of shares actually purchased
   • c) The face value of shares not purchased by him
   • d) None of the above
3. Q2 Accounting for amalgamation is governed by
   • a) Accounting Standard 1
   • b) Accounting Standard 13
   • c) Accounting Standard 14
4. Q3 Internal Reconstruction
   • a) No company is liquidated
   • b) Only one company goes into liquidation
   • c) Two or more companies are liquidated
   • d) One or more companies go into liquidation
5. Q4 Amount of calls in advance is treated
   • a) Secured creditor
   • b) Asset not specifically pledged
   • c) Preferential creditor
   • d) Unsecured creditor
6. Q5 Interest on debenture and unsecured loan is payable up to the date of
   • a) If the company is solvent
   • b) If the company is insolvent
   • c) Whether the company is solvent or insolvent
   • d) None of the above
7. Q6 Marked applications
   • a) Applications bearing the stamp of the underwriters
   • b) Applications carrying the signature of public who applied for shares
   • c) Applications carrying the stamp of company which offered the shares
   • d) None of the above
8. Q7 Buyback must be completed from the date of passing the
   • a) 12months
   • b) 3months
   • c) 6months
   • d) 2months
9. Q8 The asset which is not taken under the Net assets method of calculating
   • a) Loose Tools
   • b) Bills Receivables
   • c) Machinery
10. Q9 Capital Redemption Reserve can be utilized only for
    • a) Issue of fully paid bonus shares to the members
    • b) Issue of partly paid bonus shares to the members
    • d) None of the above 10.For capital reduction under internal reconstruction, authorization/approval is required
    • a) Shareholders
    • b) Articles of Association
    • c) Tribunal
    • d) All of the above 1.B) State whether given statements are True or False (Any 7) 7
11. Q1 A company is allowed to convert fully paid shares into stock 2.The balance in security premium account cannot be transferred to capital
12. Q3 Buyback of security is governed by section 68 of Companies Act of contingent liability is treated as profit to the company
13. Q5 Equity shares can be bought back out of fresh issue of shares only
14. Q6 Underwriting may be done by individuals, partnership firms or joint stock applications are also known as direct applications
15. Q8 Local taxes are an example of secured creditors
16. Q9 In the case of amalgamation there are two or more liquidations and one
17. Q10 If the company is insolvent, interest on debentures is payable up to the date of actual payment
18. Q2 A Ltd. and B Ltd. were carrying on the business of manufacturing of auto components. Both the companies decided to amalgamate and a new company AB Ltd. is formed with an Authorised Capital of Rs.10, 00,000 divided into 1, 00,000 Equity shares of Rs.10 each. The Balance Sheet of the companies as on 31-3-2018 were as under: (15) Balance Sheet as at 31-3-2018 1.Shareholders Funds
    • a. Share Capital 1,40,000
    • b. Reserves and Surplus Profit and Loss A/c. 30.000 35.000 3.Current Liabilities Plant and Machinery ----- 80.000 Furniture and Fixture 25 000 25 000 2.Current Assets
    • b. Trade Receivables 44 000
    • c. Cash at Bank 30,000 58,000 The assets and liabilities of the existing companies are to be transferred at book value with the exception of some items detailed below:
19. Q1 Goodwill of A Ltd. was worth Rs.50,000 and B Ltd worth Rs.1,50,000
20. Q2 Furniture and Fixture of B Ltd was valued at Rs.35
21. Q3 The debentures of A Ltd. are to be discharged by issue of 8% 11000 debentures of AB Ltd. at premium of 10% You are required to:
    • ii) opening entries in the books of AB Ltd and draw a Balance sheet of AB Ltd. as per Purchase Method
22. Q2 The following is the Summary Balance Sheet of Teena Ltd: Issued and Paid-up Intangible Assets 50,000 Equity Share Capital of Rs. | Fixed Assets 10 each Current Assets 1,10,000 Statutory Reserve (to be Profit& Loss A/c 80.000 maintained for 3 more years) Meena Ltd. agreed to absorb Teena Ltd, on the following terms: 15 marks
23. Q1 Meena Ltd agreed to take over all the assets and liabilities
24. Q2 The assets of Teena Ltd. are to be considered to be worth Rs.5,00,000
25. Q3 The purchase price is to be paid one-quarter in cash and the balance in shares. of at premium of each
26. Q4 Liquidation expenses amounted to Rs.300 agreed to be paid by Teena Ltd
27. Q6 The amalgamation is in the nature of purchase You are required to show:
    • a) Purchase Consideration
    • b) Ledger accounts in the books of Teena Ltd
    • c) Opening entries in the books of Meena Ltd
28. Q3 The following is the Balance Sheet of XY Ltd which is in the hands of the liquidator. (15) Balance Sheet as at 31/03/2018 shares of Rs. 100 each, Book debts 2,000 Equity shares of Profit and Loss Rs. 100 each | Account 2,000 Equity shares of Loan from Bank (on security of stock) The assets realised the following amounts (after all costs of realisation and liquidator's commission amounting to Rs. 5,000 paid out of cash in Calls on partly paid shares were made but the amount due on 200 shares was found to be irrecoverable Prepare the Liquidators' Final Statement of Account
29. Q3 Following is the Balance sheet of Panasonic Itd as on March,2018 shares of Rs.100 each 6.00 000 Patents 40 000 of Rs.10 each 5,00 Furniture 1,00 5% Debenture of Stock Rs.100 each 3,00 000 Sundry Debtors 75 000 Debenture interest 50,000 Profit and loss a/c Note: Preference dividend is in arrears for three years The following scheme of reconstruction is approved by Court 15 marks
30. Q1 The Preference shares shall be converted into equal number of 9% Preference shares of Rs.50 each and the Equity shares shall be reduced to Rs.3 each
31. Q2 5% Debentures shall be reduced to Rs.75 each. The debenture holders agreed to waive 50% of outstanding interest
32. Q3 Sundry creditors agreed to waive 30% of their claims and to accept Equity shares for Rs.30,000 in part settlement of their renewed
33. Q4 Arrears of Preference dividend to be reduced to one year’s dividend which is paid immediately
34. Q5 The assets are revalued as under
    • a. Building — Rs.6,60,000
    • b. Furniture - Rs.80,000
    • c. Stock - Rs.1,00,000
35. Q6 Intangible and fictitious assets are to be written off You are required to Pass Journal entries and prepare Capital reduction a/c in the books of Panasonic
36. Q4 Following is the Balance sheet of Ms. Satya Ltd. as on March,2018 Profit and Loss A/c 25,00.000 | Other Current Assets 50,00 The Company decided to buy back its equity shares for this purpose the company took the following steps:
37. Q1 Issued 3,000, 8% preference shares of Rs.100 each at a premium of 5%
38. Q2 Issued 2,000, 10% Debentures of Rs.100 each at a premium of 10%
39. Q3 Sold 70% of investments at a profit of 10%
    • a) Maximum Number of equity shares that can be bought back
    • b) Maximum price it can offer for buy back
    • c) Pass Journal Entries in the books of the company
40. Q4 Spine Ltd. invited applications from public for 1,00,000 Equity shares of Rs.10 each at a premium of Rs.5 per share. The entire issue was underwritten by the underwriters P,Q, R and S to the extent of 30%, 30%, 20% and 20% respectively with the provision of firm underwriting of 3,000; 2,000;1,000 and 1,000 shares respectively. The underwriters were entitled to the maximum commission permitted by law The company received applications for 70,000 shares from public out of which applications for and 8,000 shares were marked in favor of P, Q, R and S respectively Calculate the liability of each of the underwriters when firm underwriting shares are treated as marked and unmarked applications 5 A) State the conditions for amalgamation in the nature of merger. 8 15 marks
    • B) What do you mean by Liquidation of a company? Describe the different modes of winding up? 7
41. Q5 Short notes: (Any 3) 15 marks
42. Q1 Overriding commission
43. Q2 Purchase consideration
44. Q3 Preferential Creditors
45. Q4 Need of Internal Reconstruction
46. Q5 Buyback of equity shares

Read from the scan above, so a character or two may differ. The scan is the original.