B.Com. (Financial Management) SEM III 2022 2023 Oct 2023 CORPORATE ACCOUNTS Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 (A) State whether following statements are True or False: (Any Eight) 8 marks
2. Q1 Goodwill requires special treatment on amalgamation
3. Q2 On amalgamation fictitious assets are transferred to a capital account
4. Q3 capital accounts are closed on settlement of purchase consideration among the partners
5. Q4 Dues payable to employees is a preferential liability of the firm
6. Q5 Provision for discount on debtors shows credit balance
7. Q6 Goodwill requires special treatment on amalgamation
8. Q7 Drawing appears on the debit side of the capital account
9. Q8 General reserve is credited to partners' capital account
10. Q9 Goodwill requires special treatment on amalgamation
11. Q10 On amalgamation fictitious assets are transferred to a capital account
12. Q1 (B) Match the following: (Any Seven) 7 marks
    • F. Ratio of Sacrifice VI. all Partners Capital
    • G. Retirement of Partner A/c
13. Q1 Wages of workers Ill. | Debited to Trading Account
    • J. Loss in Realization on Amalgamation Debited to Profit and Loss
14. Q2 A) Following is the Balance Sheet of two firms as at 31st March, 2006: { [o22. SYFMG. CORPORATE ACCOUNTS 2% HRS. MARKS 75 It was mutually agreed to amalgamate the business from Ist April, 2006 Terms of amalgamation as follows: f a) A premise was valued at Rs. 10,000 and computers at Rs.12,000 15 marks
    • b) Furniture was not taken over by new firm
    • c) A reserve of 5% is to be created on debtors
    • d) Goodwill was valued as: M/s. Prem & Co. at Rs. 10,000 and that of M/s. Raj & Co. at Rs
    • e) The new firm also assumed other Assets and Liabilities of old firm at book value. Show necessary accounts in the books of old firms and the Balance Sheet of new firm M/s.Prem Raj &
15. Q2 B) Madhuri, Tabu and Juhi carrying on business in partnership decided to dissolve it on and from 30" September, 2013. The following was their Balance Sheet on the date: (15) As per the arrangements with the bank, the partners were entitled to withdraw Rs. 4,000 immediately and Rs 9,000 after Ist December, 2013. It was decided that after keeping aside an amount of Rs.1,000 realisation expenses, the available funds should be distributed amongst the partners as and when following were the realisations: Actual realisation expenses amounted to Rs 700. You are requested to submit a statement showing distribution of cash amongst the partners by Proportionate Capital Method SYFMG. SEM-III CORPORATE ACCOUNTS 2% HRS. MARKS 75
16. Q3 A) A and B were partners sharing profits and losses in the ratio of 3 : 2. With effect from 1-10-2012, C joins as a third partner. The new profit sharing ratio was 2: 2:1. The following is their trial balance as on 31-3-2013. (15) A A's Drawings and Capital 15,000 3,00,000 C's Drawings and Capital 5,000 1,50,000 Purchases and Sales 9 00 000 14 00 000 Debtors and Creditors 626000 Cash and Bank Balance 350000 2.50.000 Amount brought by C (for his share of
17. Q1 Stock on 31 -3-2013 was Rs 1,80,000
18. Q2 Purchases from | -4-2012 to 30-9-2012 were Rs 4,00,000
19. Q3 Sales from 1-4-2012 to 30-9-2012 were Rs 6,00,000
20. Q4 Wages from 1-4-2012 to 30-9-2012 were Rs 60,000
21. Q5 Stock on 30-9-2012 was Rs 80,000
22. Q6 Furniture worth Rs 1,00,000 was purchased on 1-1-2013. Write off depreciation on furniture at 7, Interest on capital is to be provided at 12% p.a
23. Q8 No interest is to be charged on partners' drawings. You are required to prepare :
    • a) Trading A/c containing the columns for: 1-4-2012 to 30-9-2012 and 1-10-2012 to 31-3-2013
    • b) Profit and Loss A/c containing the columns for: 1-4-2012 to 30-9-2012 and 1-10-2012 to 31
    • c) Profit and Loss Appropriation A/c containing the columns for: 1-4-2012 to 30-9-2012 and 1
    • d) Balance sheet as on 31-3-2013
    • B) ABC Co. Ltd. was formed with an authorised capital of 1,50,000 consisting of 10,000 Equity shares @ 10 each and 5,000, 72% Preference Shares of 10 each to acquire on 1-7 14 the business of M/s 'Lad and who were sharing profits in the ratio of 3:2. Their Balance Sheet as on 30-6-14 was as follows: (15) Trade Creditors 16,580 | Land and Building 40,000 Overdraft 8,950 | Plant and Machinery 24,000 VCD SYFMG. SEM-III CORPORATE ACCOUNTS 2% HRS. MARKS 75 The company took over all the assets and assumed all the liabilities and the consideration was fixed at 1,10,000. In computing this figure, Land and Building were valued at 60,000, Plant and Machinery at 20,000; Stock at 15,000 and Debtors at book value subject to allowance of 5% to cover the doubtful debts The purchase price was settled by the issue of 3,300 Equity shares at 10 each, to the firm, 2,500 Preference shares of 10 each, and the balance paid in cash
    • (b) Partners' Capital A/c
    • (d) Cash A/c
24. Q4 A) L, U and M were in partnership, sharing profits and losses in the ratio of 1/2, 1/3, 1/6 respectively. Their firm was dissolved as on 31st December 2013 on which date the Balance Sheet of the firm was as under: (15) Balance Sheet As At 31st December, 2013 It was agreed that the realisation should be distributed in their due order at the end of each fortnight. The realisation and expenses were as under: vcD | SYFMG. SEM-III CORPORATE ACCOUNTS 2% HRS. MARKS 75 Stocks were completely disposed off and the remaining debtors were to be taken over by M at an agreed amount of Rs. 600 Show the Statement of distribution of cash, following Relative Capital Method 4.B) The following is the Trial Balance of a firm as on 31st December, 2013. (15) On Ist July 2013, 'A' retired and the following adjustments were agreed upon:
    • a)Goodwill of Rs 90,000 was brought into the books of accounts
    • b) Furniture worth Rs 20,000 was purchased on 31-3-2013 but the invoice was not recorded in
    • c)Balance in A's account after making all adjustments was to be transferred to his loan account
    • d) Closing stock was valued at Rs 42,000
    • e)Depreciate machinery, by 10%, Premises by 5% and furniture by 5% p.a
    • f) Provide interest on capital at 10%. Prepare Trading and Profit and Loss Account for the year ended 31-12-2013 and a balance sheet as on that date
25. Q5 (A) Explain the meaning of Proportionate capital method. 8 marks
    • (B) Explain in detail Order of payment of external liabilities in Piecemeal distribution. VCD SYFMG. CORPORATE ACCOUNTS 2% HRS. MARKS 75 7
26. Q5 Write short notes on: (Any Three) 15 marks
27. Q1 Piecemeal distribution of Cash
28. Q2 Preferential Creditor
29. Q3 Amalgamation of Firms
30. Q4 Purchase Consideration
31. Q5 Benefits of Conversion of Firm into a Company

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