B.Com In Financial Management SEM IV 2018 19 May 2018-19 CORPORATE ACCOUNTS Question Paper - Mumbai University | munotes

Questions asked in this paper

• 2. Figures to the right indicate full Marks

1. Q3 Working note should be part of Answer
2. Q1 State whether the following statements are True or False (Any 8) 8 marks
3. Q1 No dividend is paid on calls in advance
4. Q2 A bonus issue can be made out of capital reserve
5. Q3 Advertising Expenses allocated on the basis of sales ratio
6. Q4 can redeem only fully paid preference shares
7. Q5 Debenture holders are entitled to receive interest at fixed rate
8. Q6 A company can issue debentures with voting rights
9. Q7 A debenture holder is an owner of the company
10. Q8 A debenture holder receives interest only in the event of Profits
11. Q9 A notice of 21 days is must for the payment of calls on shares
12. Q10 Interest on calls in advance is allowed @
13. Q1 B Match the column (Any 7) 7 marks
14. Q2 Summary Balacesheet of RAVI Ltd. as at 2017 10,000 Equity Shares of 10 each Issued and paid-up Capital: 10,000 Equity Shares of Rs. 10 each — | 80,000 Necessary resolutions were passed: 15 marks
15. Q1 Partly paid shares to be converted into fully paid-up shares 2.Issue 2,000 fully paid bonus shares of Rs. 10 each to the existing shareholders Pass necessary Journal Entries to record the above and prepare Revised Balance sheet
16. Q2 is the Balacesheet of KIRAN Ltd. as on March, 2017: shares of Rs. 100 each, Fully paid Bank 2,18,000 1,00,000 Equity Shares of Rs.10 10,00,000 | Investments 1,50,000 each, Fully paid (Market Value Profit and loss Account 4,50,000 On the above date, the directors of the company took following steps to redeem 8 % Preference Shares at a premium of 5 % 15 marks
    • a) The company issued 4,000 Equity shares of Rs. 10 at a premium of per share for the purpose of redemption of preference shares
    • b) Investments were sold at market price
    • c) All the payments were made to the Preference Shareholders except those holding 100 shares who could not be traced You are required to:
17. Q1 Pass necessary Journal Entries in the books of Prakash Limited complying with requirements of Companies Act, 2013 li) Prepare the Balacesheet of the company after redemption of Preference shares
18. Q3 ABC Ltd. issued 1,100 5% debentures of Rs.100 each on 1“ January 2011, redeemable at par. The company decided to set aside every year a sum of Rs.34,898 to be invested @ 5% outside the business The investments were sold at Rs. 71,580 at the end of the third year and the debentures were redeemed Give Journal entries. Also prepare Sinking Fund Account and Sinking Fund Investments Account.( 15
19. Q3 Company gave notice of its intention to redeem its outstanding Rs. 4, 00,000, 12 % Debentures Stock at Rs. 102 and offered the holders following options: (15 Marks) To apply the redemption money for subscribing:
    • a) 8 % Cumulative Preference Shares of Rs. 20 each at Rs. 22.50 per share
    • b) 10% Debenture stock at 96 Percent
    • c) To have their holding redeemed for cash Holders of accepted the proposal (a) Holders of Rs.1, 44,000 Stock accepted the proposal (b) And the remaining stock holders accepted the proposal C Pass the journal entries to record the above transactions. Requirement of depositing or investing the amount at the beginning of the year may be ignored
20. Q4 The promoters of the proposed New company REDO Ltd. purchased a running business on January 2017 from Mr. AMIT. The New company was incorporated on may,2017. The profit & loss account for the year ended 31 December 2017 was as under: (15 Marks) Interest Paid to Vendors 20,000 Following further information available: Sales upto 30 April, 2017 was Rs. 6,00, 000 out of total sales of Rs. 30,00,000 for the year Purchases upto 30 April, 2017 was Rs. 6,00,000 out of total purchase of of the year. Interest paid to vendors was @ 12 % on Rs. 2,00,000P.a till the payment was made From the above information, prepare Statement of Profit & Loss for the year ended 31 st December , 2017 showing Pre and Post- Incorporation Profits and how it will be treated in
21. Q4 VIJAY Private Limited was incorporated on August 2016. This company agreed to take over business of Jay Ajay & company as going concern, effective from Ist April, 2016.The profit & Loss Account for the year ended 2017 is : (15 Marks) To Salaries 30,000 By Gross Profit 1,20,00 To Rent 9,000 By Profit on Sale of | 20,000 To Office Expenses 6,000 Investment To Sales Commission 15,000 To Bad Debts 5,000 To Director fees 8 000 To Debenture interest 8,000 To Interest to Vendor 6,000 To Net Profit 35,000
22. Q1 Monthly Sales for October, 2016 to March, 2017 is 150 % of monthly sales for April, 2016 li) Bad debts is in respect of sales affected two years ago ili) Investment was sold on November, 2016
    • iv) Consideration to Vendors was paid on 1 October, 2016
    • v) Rent was increased from Rs. 500 per month to Rs. 1,000 per month effective from 1 Prepare Statement of Profit & Loss
23. Q5 a) What do you mean by Company? Describe its features. 8 marks
    • b) List any two method of redemption of debentures. 7
24. Q5 Write short notes (Any 3) 15 marks
25. Q1 Profit prior to Incorporation
26. Q2 Redemption by conversion
27. Q4 Divisible Profits
28. Q5 Bonus share

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