B.Com. (Financial Management) SEM III 2019 2020 Oct 2020 CORPORATE ACCOUNTS Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A) State whether the following is True or False (any 8):- 8 marks
   • 1. Anew company is formed on conversion of a firm into a Ltd. Company
   • 2. of partnership firm into Ltd. Company, old firm dissolved
   • 3. Final accounts are prepaid at the end of each accounting year
   • 4. firm dissolved on conversion into a Ltd. Company
   • 5. Under Piecemeal distribution assets realized gradually
   • 6. AS-14 deals with Amalgamation of firm
   • 7. On amalgamation, old firms are dissolved
   • 8. Loss on Realisation is debited to partners’ capital Accounts
   • 9. Surplus capital method and maximum loss method both are same s
   • 10. In piecemeal distribution of cash, reserve for contingent liabilities is created before payment of any liabilities
2. Q1 B) Match the following (any 7):- 7 marks
   • l. Deed A | 1956 4, Loan from Wife D | External Liabilities Loss on Realisation E | Debited to partners’ capital A/c 6 Interest on partners Loan F 12% 7 Amalgamation G | Distributed among the partners 8 Purchase consideration H_ | Formation of new company 9 General reserve .|. Amount payable by new firm to old firm 10 | Conversion of firm into a Itd. Sale of firm to a company
3. Q2 Mohan and Sohan are partners sharing profit and loss equally. From the following Trial Balance of the firm. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as on that date after taking into account the additional Trial Balance as on 31" March 2018 Cash in hand 3,000 | Bills Payable 7,000 Postage and telegram 1,700 | Sales 52,000 Land and building 2,40,000 | Commission 4,000
   • 1. Stock on March, 2018 was Rs.65,000
   • 2. Land at 20% p.a
   • 3. Wages outstanding are Rs.2,500 Write off Rs. 1000 as Bad debts and provide 5% Reserve for Bad debts on sundry debtors and 2% for discount on debtors
   • 6. Write off one fifth of Patents
   • 7. Goods costing Rs. 5000 have been stolen but not entered in the books
4. Q2 The following is the Trial Balance of firm as on December, 2018 15 marks
   • 1. P andQ were partners sharing profits and losses equally Mr. R was admitted to the partnership on July, 2018
   • 3. On December, 2018 stock was valued at Rs. 43,500
   • 4. Rent and Rates paid in advance Rs. 1900
   • 5. General expenses were outstanding Rs. 1800
   • 6. Charge depreciation on Furniture @ 10% p.a
   • 7. Share of Goodwill of partner was valued at Rs. 10,000 on July, 2018 and yet to Prepare Trading and Profit and Loss Account For the year ended 3lst December, 2013 and Balance Sheet as on that date
5. Q3 A, B, C were in partnership, sharing profit and losses in the ratio of equally . The firm was dissolved as on 31-3-2015 on that date the Balance Sheet of the firm was as under Balance sheet as on 31.3.2015 Realisation and expenses were as under Stock were completely disposed off and the remaining debtors were taken over by “A” at Rs 1200 You are required to prepare
   • (a) Statement of excess capital
   • (b) Statement of distribution of cash
6. Q3 Sadguru Paints and Rose Interiors decided to amalgamate on the following terms and conditions on Ist April, 2014 when their Balance Sheets were as follows :- 15marks Terms of amalgamation:
   • (1) In case of Sadguru Paints:
   • (a) Goodwill was valued at Rs. 60,000
   • (c) Investments were taken over by the new firm at Rs. 30,000
   • (d) Building was taken to be worth Rs. 7, 90,000 : (e) Stock to be valued at Rs. 32,600
   • (f) Provision for doubtful debts to be created at 5 % on debtors
   • (2) In case of Rose Interiors:
   • (a) Goodwill was valued at Rs. 59,000
   • (b) Stock was valued at Rs. 42,000
   • (c) Provision for doubtful debts to be created at 4% on debters
   • (3) Other assets and liabilities of both the firms were taken at book values You are required to show necessary ledger accounts in the beoks of bothe the Companies that are amalgamating and prepare Balance Sheet of New firm after Amalgamation Sheet of M/s. Day & Co. and M/s. Night& Co. as on 31-12-2016 were as Capital: Land and Building 30,000 40,000 The two firms decided to amalgamate and form into M/s Item & Co. with effect from 31-12 2016. Partners would share profits and losses equaily between themselves as they were doing prior to amalgamation and they agreed to following revaluation of assets and liabilities: Land and Building 45,000 45,000 In addition to the above it was decided —
   • 1. Goodwill of M/s. Baba & Co. and M/s. Baby & Co. was valued at Rs. 35,000 and Rs = 20,000 respectively and it should be written off in the New Firm
   • 2. That the reconstructed capitals of the partners would be Rs. 37,500 each. The difference, if any, should be transierred to Current Account You are required to show The accounts in the books of the Amalgamating Companies. and Opening Balance Sheet of the new firm
7. Q4 A, Band C were partners carrying on partnership business and sharing profit and losses in ratio of 1:2:3. On 3 march 2015, their balance sheet was as under: 15marks Balance sheet on March, 2015 On the above date a private Itd. Company was incorporated to take over business on the following terms and conditions :
   • 1. All assets (except cash and investments) and liabilities (except A’s loan) to be taken over by the company for which all assets are valued at par except Building which is considered worth RS 54,000 and stock as worth Rs28,000.Further,goodwill is valued at Rs60,000
   • 2. A’s loan to be parity liquidated by his taking over the firm’s cash and investments at par. For the balance he is given 8% debenture received from the company in part discharge of
   • 3. The balance of the purchase consideration is received in the form of equity shares of the company which are to be appropriately distributed amongst the partners Give ledger accounts to close the books of the old firm
8. Q5 . A) Explain in process of Admission of a partner. 8 marks
   • B) Explain fixed capital method and fluctuating capital method. 7
9. Q5 write short note on (any 4) 15 marks
   • 1) Partnership firm
   • 3) Conversion of firm into Company
   • 5) Purchase consideration
   • 6) Objective of Amalgamation

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