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

Questions asked in this paper

1. Q1 A) Multiple Choice Que itions. (8 out of 10) 8 marks
   • 1. Debenture holders are of the company
   • (a) Creditor (b) Owner
   • (c) Debtor (d) Assets
   • 2. cannot issue redeemable preference shares for a period exceeding
   • (a) 20 years (b) 10 years
   • (c) 50. years (d) 15 years
   • 3. Interest on debenture is calculated on its
   • (c) Issued price (d) None of above
   • 4. For computing pre-incorporation profits deprecation is allocated in
   • (c) Time ratio (d) none of above
   • 5. In balance sheet of a company, debenture account is shown under
   • 6. Debenture holder get rate of interest
   • (a) Fixed (b) Fluctuating
   • (c) Both fixed and fluctuating (d) None of above
   • 7. A company cannot issue preference shares
   • (c) Cumulative (d) redeemable
   • 8. For computing pre-incorporation profits postage is allocated in
   • (c) Time ratio (d) none of above
   • 9. Profit on forfeiture of redeemable preference shares is credited
   • (c) profit and loss A/c (d) general reserve A/c
   • 10. A company can issue debenture
   • (a) with voting right (b) Without voting right
   • (c) Both (d) None of above
2. Q1 B) State whether the following are true or False: (7 out of 10)
   • i. Depreciation is aliocated on the basis of sales ratio
   • 2. The profit made on acquisition of business is credited to general reserve
   • 3. Profit after incorporation is capital profit
   • 4. is not given, gross profit should be allocated in the equally
   • 5. Time ratio is ratio of number of sales before and after incorporation
   • 6. After debenture are redeemed balance of debenture redemption reserve is transfer to
   • 7. Debenture holders are the owner of the company
   • 8. Debenture cannot be redeemed during life time of company
   • 9. can issue irredeemable preference shares 10 Preference shareholders are creditors of company VCD SYFMG/ SEM-IV /SUB CORPORATE ACCOUNTS - II /2% Hr/75Marks
3. Q2 A) Amey Itd. was incorporated on august, 2016 to take over a running partnership business with effect From April 2016. Following are details of income and expenses for the year ended Rent is paid on the basis of floor space occupied floor space occupied was double in the post
   • 2. Sales for each month of December,2016 to march,2017 were double the moathly sales of April
   • 3. Audit fees are for the entire year
   • 4. Mr among was a working partner in the firm entitled to a remuneration @ Rs 24,000 per month, from 1* august 2016, he was made managing director of the company and was entitled to a salary @ Rs 30,000 per month. The remaining salary is to two clerks emp!oyed during the period from a 1* July, 2016 to 30" November, 2016 Prepare a statement showing profit for the pre and post incorporation period separately , Q.2. B) The promoters of the proposed zedo Itd. Purchased a running business on 1* January 2017 from Mr Antonio. The new company was incorporated may 2017 Tne profit and loss account for the year ended 31" December 2017 was as under. (15) Interest paid to vendors VCD SYFMG/ SEM-IV /SUB - CORPORATE ACCOUNTS - II /2% Hr/75Marks
   • 1. Sales upto 30h April,2017 was Rs 6,00,000 out of total sales of Rs 30,00,000 for the year
   • 2. Purchases upto 30the April,2017 was Rs 6,00,000 out of total purchase of Rs 18,00,000 of the
   • 3. Interest paid to vendors was @ 12% on Rs 2,00,000 p.a. till the payment was made
4. Q3 A) The balance sheet of ICC Ltd As at 31 December 2016 include the following details. Under the terms of their issue, the preference shares are redeemable on march 31,2017 at a premium of 5 %. In order to finance the redemption, the company made a right issue of 1,20,000 equity shares of Rs 100 each at Rs 110 per share The preference shares were redeemed after fulfilling the necessary condition of the companies You are asked to pass the necessary journal entries in books of company giving effect to the above 15 marks
5. Q3 B) Teebee limited has issued - 1, 50,000 -16% preference shares of 10 each, redeemable at Premium of 10% on 31st December, 2017. The dividend for 2017, is yet to be paid. The company Has adequate balance in general Reserves. To provide funds for redemption, company
   • 1. Sold investments costing 2,00,000 for % 3,00,000
   • 2. Issued for cash - 2,500 -15% Debentures of 100 at par Issuec - 50,000 equity shares of 10 at premium of 4 per share. The payment of dividend, premium and capital Was duly carried out. Show journal entries. (15)
6. Q4 A) had issued 5000 — 12% debentures of Rs 100 each redeemable on 31/ 12/2015 at in par. The company offered three options to the debenture holders as under
   • (a) 14% preference shares of Rs 10 each at Rs 12
   • (b) 15 % debenture of Rs 100 each at par
   • (c) Redemption in cash The were accepted as under Option (a) by holder of 1500 debentures Option (b) by holder of 1500 debentures Option (c) by holders’ of 2000 debentures Pass journal entries in the books of company decided to use the minimum amount of profit required by law. (15) VCD_ SYFMG/ SEM-IV /SUB — CORPORATE ACCOUNTS - II /2% Hr/75Marks / Q.4.B) Hindustan manufacturing limited gave notice of its intention to redeem its 6 % debenture, amounting to Rs 4,00,000 of Rs 100 each at Rs 102 and offered the debenture holders the following three options, to apply the redemption money to subscribe for:
   • (a) 5 % cumulative preference shares of Rs 20 each at Rs 22.50 per share
   • (b) 6 % debenture at Rs 96 and
   • (c) To have their holding for Rs 1,44,000 accepted for proposal (c) The redemption in cash, wherever applicable, was made fully out of profit. (15)
7. Q5 (A) Define debenture and explain types of debentures. 8 marks
   • (B) Explain preference shares and its types. 7
8. Q5 Write short notes on: (3 out of 5) (i5)
   • a) Features of debenture
   • b) Dividend
   • d) Redemption of preference shares
   • e) Private company

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