B.Com In Banking & Insurance (BCBI) Sem II 2019 20 Nov 2019-20 FINANCIAL ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A) Fill in the blanks. (Any 8). 8 marks
   • 1. The premium payable on redemption can be provided out of
   • c) Debentures d) Loan for bank
   • 2. Super profit is
   • a) Excess of average profit over normal profit
   • c) Average profit earned by similar companies
   • d) None of these
   • 3. Capital redemption reserve can be utilized for
   • a) Paying dividend b) Issue of bonus shares
   • c) Set off against losses d) Write off fictitious balance
   • 4. Average profit is Rs.19,167 and normal profit is Rs.10,000 the super profit is
   • 5. Net asset value is also called as
   • 6. The amount remaining unpaid to preference shareholders is included in balance sheet
   • 7. Yield value depends on
   • c) Normal rate of return of the above
   • 8. Securities premium may be used for
   • a) Payment of dividend
   • b) Issue of fully paid bonus shares
   • c) Issue of partly paid bonus shares
   • d) None of the above
   • 9. Interest on sinking fund investment is credited to
   • d) None of the above
   • 10. Maximum buy back in a year can be \
   • B) Match the column. (Any 7) (07) \
   • 1. Fresh issue a) Convertible into equity shares
   • 5. Terms of redemption e) Part of buy-back
   • 6. Convertible preference shares f) Compulsory under companies act
   • 7. Cumulative preference shares g) Specific at issue
   • 8. Reserves h) optional
   • 9. Fictitious asset i) Based on rate of interest and rate of risk
   • 10. NRR j) Intangible having no realizable value
2. Q2 The assets and liabilities of Ajit Ltd, as on 3 December,2016 were as follows. Fully paid Plant and machinery 1,50,000 Profit & Loss A/c Furniture and fitting The Net profit of the company before Tax were as follows: Income tax may be taken @30% normal rate of return may be assumed as 12.5%. Find out of the value of goodwill on five years purchase of the average super profit for the last five years, and also find out value of goodwill as per capitalization of super profit 15 marks
3. Q2 The balance of the Jindal Ltd. As on march 2016 revealed the following. Equity share of Rs.10 Less depreciation 15 marks
   • 1. Fixed assets and Goodwill were revalued at Rs.7,50,000 and Rs.1,00,000
   • 2. The Net Profit after tax for the immediately preceding three years were Rs.1,10,000 Rs.1,05,000 and Rs.1,45,000 of which 25% were transferred to reserves
   • 3. A fair return in the industry in which the company is engaged is considered to be 10% Compute the value of the company’s share by:
4. Q3 Following is the balance sheet of Anish Ltd. As on 31/03/2016. \ (shares of Rs.10 The company exercised the options to redeem the preference shares at 10% premium for this purpose, it issued 67,500 right shares of Rs.10 each at a premium of Rs.10 per share Investment were sold for Rs.5,13,000. Pass necessary journal entries in books of Anish
5. Q3 balance sheet of Straight Ltd. As on 31% March, 2016 was as under. 25,000 Equity shares of Rs.100 each | 25,000 Investments 1,00,000 fully paid preference shares of Rs.100 On 1“ April,2016 the company made a call of Rs.10 each on its preference shares and call money was duly received. All preference shares were redeemed at a premium of 2% The company sold all its investments at market value. For the purpose of redemption, the company issued minimum number of equity shares at a premium of 10% after utilizing available resources to the maximum extent, keeping in view the provision of the companies Act, 1956. Pass journal entries in the books of the company that redemption is 15 marks
6. Q4 balance sheet of Archana Ltd. As on 31 march,2016 is as follows Subscribed and called up Investments Keeping in view all the legal requirements ascertain: 15 marks
   • i) Maximum number of equity shares that Archana Itd. Can buy-back
   • ii) The maximum price it can offer Assume that the buy-back is carried out actually on the legally permissible terms, record the entries in the journal of Archana Ltd
7. Q4 A company gare notice of its intention to redeem its outstanding Rs.50,000, 10% debentures of 100 each at a premium of 5% and offered the holders the following
   • 1. To accept 12% cumulative preference shares of Rs.20 each at Rs.25 per share
   • 2. To accept 10% debentures stock at 96%
   • 3. To have their holding redeemed for cash accordingly,
   • i) Rs.25,000 debentures holders accepted the proposal 1
   • ii) Rs.20,000 debentures holders accepted the proposal 2
   • iii) Remaining debentures nolders accepted the proposal 3 Pass the journal entries in the books of company
8. Q5 A) Explain the provision of the companies Act,1956, regarding redemption of
   • B) Distinguish between redemption of shares and buy back of shares. (97,
9. Q5 Write short notes (Any Three) 5)
   • a) Sources of Buy back
   • b) Bonus
   • d) Yield value metliod of shares valuation
   • e) Super- profit method of valuation of goodwill

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