B.Com. (Financial Management) SEM V 2018 19 May 2018-19 Corporate Accounting III Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A Select the appropriate option and rewrite the answer. (8 out of 10) 8 marks
   • 2. Reserve and Surplus does not include
   • a) Statutory Capital Reserve Security Premium. d) Reserve Bank of India
   • 3. Insurance industry is classified into
   • a) Life Insurance General Insurance c) Life and General d) None of above
   • 4.Insurance business deals with
   • 5. Interest on securities is always calculated on
   • a) Market price c) Face value d) All of the above
   • 6.At the end of the year the balance on foreign exchange fluctuation a/c is transferred to
   • a) Foreign exchange fluctuation a/c b) Profit and loss c) Balance none of the above
   • 7. Unclaimed dividend is shown by bank under
   • 8. Money at call and short notice is disclosed under
   • a) Cash and Bank balance b) Investment c) Provision d) None of the above
   • 9. The exchange rate at the balance sheet date is known as
   • 10. The cost of Right Shares is
   • a) Added to the cost of the Investment b) Subtracted from the cost of Investments
   • c) No treatment is required d) None of the above the following columns (8 out of 10) 8 Marks
   • c._ Schedule 3 100% Reserve for unexpired risk f. Difference due to different rates
   • g._No Fixed Income Weighted Average h. Currency used in presenting the financial statements Cash credits, overdrafts and Loan payable i. Fire Insurance
2. Q2 The following figures are taken from the books of Canara Bank Ltd. You are required to prepare the Balance sheet as at 31st March , 2018 and Profit and Loss A/C for the year ended as on that date: Acceptances and endorsement on expenses 12,000 Reserve fund (after depreciation up to 48,00,000 Share Capital (Authorised & Issued 20,00,000. |Cash in hand 2,40,000 2,00,000 shares of Rs. 20 Rebate on bill discounted for unexpired term amounted to Rs. 20,000. Create provision for taxation Rs 4,00,000 and for Doubtful debtors Rs. 1,20,000. Allow 5% Depreciation on premises on the original cost
3. Q2 The following information have been obtained from the books of the Satara Bank Ltd for the year
   • 1. The profit & loss account had a balance of Rs 1,000 on 1* April, 2017
   • 2. of Rs 284 has become doubtful debts
   • 3. The provisions for tax be made at 35%
   • 4. The directors desire to declare 10% dividend Prepare Profit & Loss Account for the year ending March 2018
4. Q3 Reliance General Insurance submits the following information for the year ended March 2017 On Insurance Accepted 1,50,000 11,000
   • 1. Expenses of management include Rs 35,000 Surveyor’s fees and Rs 45,000 legal expenses for settlement of claims
   • 2. Reserve for unexpired risk is to be maintained @ 40%. The balance of reserve for unexpired risk as on 1-4-2016 was Rs 24,50,000
5. Q3 From the books of Tata General Insurance Company on March, 2017, you are required to prepare Revenue Accounts in respect.of Fire and Marine Insurance Business for the year ended outstanding as on March 2017 were Fire insurance Rs 10,000 and Marine insurance
   • 2. Premium outstanding as on 31% March 2017 were Fire insurance Rs 30,000 and Marine insurance
   • 3. Reserve for unexpired risk to be maintained at 50% and 100% of Net premium in respect of Fire and Marine insurance respectively
   • 4. Expenses of Management due on March, 2017 were Rs 10,000 for Fire insurance and Rs 5,000 for Marine insurance
6. Q4 Mr Rajesh holds 2,400, 6% Debentures of Rs 100 each in Infosys Ltd as on 1-4-2016 ata cost of Rs 2,80,000. Interest is payable on June and December every year Other details are as follows:
   • a. On 1-6-2016, 800 6% Debentures are purchased cum-interest at Rs 81,600
   • b. On 1-11-2016, 800 6% Debentures are purchased ex-interest at Rs 76,800
   • c. On 30-11-2016, 1200 6% Debentures are sold cum-interest for Rs 1,29,000
   • d. On 31-12-2016, 1600 6% Debentures are sold ex-interest for Rs 1,54,600 Prepare 6% Debenture account in the books of Mr Rajesh valuing closing balance 31-3-2017 at cost or market price whichever is lower The Debentures are quoted at par on 31-3-2017
7. Q4 On January 2016, Tata Ltd an Indian importer, purchased $ 2,50,000 worth goods from German Trading company of Germany The payment for the import was made as follows: German Limited closes its books on March every year The exchange rate for $ 1 was follows:
   • (2) Prepare German Trading Company Account and Foreign Exchange Fluctuation Account in the books of Explain in brief the provisions of Insurance Act relevant to Insurance Accounting. 8 Marks
8. Q5 B. Distinguish between Ex-interest and Cum-interest Transactions in investments. 7 marks
9. Q5 Write short notes on: (Any 3) 15 marks
   • 1.Rebate on Bills Discounted
   • 5. Provisioning requirements of Banks

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