B.Com In Banking & Insurance (BCBI) Sem II 2017 18 April 2017-18 FINANCIAL ACCOUNTING II Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q2 Workings should form part of your answer
2. Q1 a) Match the following (Any Eight) : Terms of redemption Not redeemable Cumulative preference shares Transfer to capital reserve Discount on buyback Not treated as fresh issue Receipt of call money 25% of capital plus free reserve 8 marks
3. Q10 | Intrinsic Value j) Required for redemption out of
   • b) State whether following statements are true or false (Any Seven) : 7
4. Q1 Goodwill consists of the super earning power
5. Q2 |Acompany can buy back any security
6. Q3 Bonus shares can be issued out of CRR
7. Q4 cannot be exchanged for new shares
8. Q5 is considered in valuation of Goodwill
9. Q6 Equity shares can be redeemed by a company Debentures can be redeemed at discount Goodwill is fictitious asset
10. Q9 After buy back, Debt- Equity ratio should not exceed 2:1 Capital reserve is a divisible profit
11. Q2 Provides you with following Balance Sheet as on March 2017 : 3750 Equity shares of 3,75,000 | Goodwill 52,500 15 marks
    • Q.P. Code : 31200 Profit before providing for taxation for past five years are : 2013 — 93,000; 2014 — Tax rate is 40% and 15% is fair return on capital employed in such type of concerns Ascertain goodwill of the business by :
    • a) Capitalization of average profits
    • b) Five years purchase of super profits
    • c) Capitalization of super profits
12. Q2 Following figures are extracted from Balance Sheet of KM Ltd. as on 15 marks
13. Q1 9% preference shares of 100 each 3,00,000
    • ii) 10,000 Equity shares of 10 each paid up 50,000
    • iii) 10,000 Equity shares of £10 each 2.50 paid up 25,000
    • iv) 10,000 Equity shares of each fully paid up 1,00,000 Reserves and Surplus :
    • i) General Reserves On revaluation of assets as on 31.03.2017, it was found that they had appreciated by over their value in aggregate You are required to calculate value of each equity share
14. Q3 SK Ltd. company, decided to buyback 1,00,000 equity shares of each at 20% premium. The balances on account were You are required to check whether legal requirements are fulfilled and pass the
    • Q.P. Code : 31200
15. Q3 Following is the Balance Sheet of NG Ltd. Balance Sheet as on March, 2017 Equity shares of each 12,50,000 46,50,000 The company wants to buyback maximum number of Equity Shares at maximum possible price as per applicable provisions. Calculate maximum number of shares that can be bought back and the price that can be offered for the buyback Also show journal entries for the buyback 15 marks
16. Q4 RK Ltd. Issued = 2,00,000 redeemable preference shares at 1“ January, 2010, redeemable at the option of the company on or after 31** December, 2015 in whole or in The company made following redemptions out of profit : The company decided to redeem all the remaining preference shares on 31 December, 2017 and issued equity shares of the face value of at a premium of the same date Pass necessary journal entries to record above transactions 15 marks
17. Q4 JT Ltd. Issued debentures of each at 952 per debenture. The debentures are redeemable in five annual instalments of each. It is decided to write off discount in proportion to the amount of debenture finance usage over the various You are asked to: Prepare statement for write off of discount over the period of five years 15 marks
18. Q2 Pass appropriate journal entries for first and second year
    • Q.P. Code : 31200
19. Q5 a) What are the provisions of Companies Act, 2013 about redemption of preference — 8 marks
    • b) Explain methods of valuation of shares. 7
20. Q5 Write short notes on any three : 15 marks
    • c) Profits
    • d) Capitalization of Super Profit
    • e) Sources of buyback

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