B.Com. (Financial Management) SEM V 2018 19 Nov 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) Marks
   • 2. Insurance business deals with
   • 3. schedules are there in General Insurance Final Accounts
   • 4. Schedule B of IRDA
   • a) Revenue Account in form B-RA P/L form B-BL Balancesheet in Form b-BL
   • d) Deposit with RBI
   • 5. 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
   • 6. Interest is always calculated on the
   • a) M.V of the security security c) Face value of the security
   • d) Realizable value of the security
   • 7. Accounting for investment is dealt with
   • a) AS9 b) AS 13 c) AS 11 d) AS 29
   • 8. Every banking company is incorporated in India shall transfer
   • 9. Primary function of insurance companies is to. protect
   • a) Individuals. Policyholders of the above
   • 10. The exchange rate at the balance sheet date is known as
2. Q1 B State whether the following sentences are True or False. (7 out of
   • 1. Claim on Re- insurance accepted is added to claims Paid
   • 2. Discounting of converting the bill into cash the case of bonus, only nominal value is entered in nominal value column of the investment account
   • 5. An asset becomes non performing asset when it ceases to generate income for the bank
   • 6. Exchange rate is the ratio of exchange of two currencies
   • 8. is the currency other than the reporting currency
   • 9. Dividend on shares accrues on the date of closure of books
   • 10. Every banking company incorporated in India shall transfer 15%
3. Q2 From the Following balances of Indian Bank Ltd, Pune on 31.3.2018, prepare Profit and Loss Account and Balance Sheet as on that date. 15 Marks Following additional information is available
   • 1. The bank has accepted on behalf of the customers’ bills worth Rs.6,00,000 against the securities of Rs. 7,60,000 lodged with the bank Rebate on hills discounted Rs.22,000
   • 3. Provide depreciation on building 10% and Furniture 5% on cost
   • 4. Provide Rs. 6.000 for bad and doubtful debts
4. Q2 The following balances have been extracted from the books of KPC Bank Ltd as on March, 2018 Prepare Profit & Loss Account for the year ended March, 2018 Rebate on bills discounted for unexpired term amounted to Rs 10,000 Create provision for taxation and for doubtful debts Rs 60,000 Rs 15,000 to be transferred to General Reserve
5. Q3 From the following balance of TATA General Insurance Company Ltd As 31.03.2018 prepare: 15 Marks
   • a. Fire revenue account and Marine Revenue Account
   • b. Profit and loss account Commission (fire) 90,000 Commission earned on 60,000 Commission (marine) 1,08,000 Commission earned on reinsurance 30,000 Claims paid and O/S (fire) 1,80,000 Management expenses 4,00,000 Marine fund 1-4-2017 Rs. 8,00,000 and Fire fund on 1-4-2017 Rs. 2,50,000
6. Q3 From the following information of Reliance Fish Marine Insurance co Ltd. Prepare the Revenue Account for the year ended 31st March , 2018 Premium outstanding on March 31,2018 1,25,000 Premium paid on reinsurance ceded 2,28,000 Estimated liability in respect of outstanding claims: Expenses of management (includes Rs 45, 000 Surveyors fee and Rs 65, 000 legal expenses paid for settlement of claims) 4,85,000 Interest and dividend (Gross) 1,65,250 Income tax on the above Interest and dividend Profit on sale of investment 46,000 Balance of fund on 1st April, 2017 was Rs.18,50,000 including addition reserve of Rs.1,80,000 Additional Reserve has to be maintained at 10% of net premium for the year
7. Q4 During the year ended 31st March, 2018 Mr. Rajesh bought and sold the following 12% Debenture of Rs. 100 each Of Zen Ltd. Interest being payable by Zen Ltd On 1st April and 1st October each year 1st June ,2017 Bought 300 debentures at R5.92 September,2017.- Bought 300 debentures at Rs.94 cum — interest 1st December, 2017 . Sold 200 debentures at Rs.95 ex- interest 1st February,2018 Bought.150 debentures at Rs.98 cum — interest Books are closed on 31st March every year. Market price on 31st March 2018 was Rs.90 per Debenture You are required to prepare Investment in 12% Debentures in Zen Ltd .account for the year ended 31% March, 2018 in the books of Mr. Rajesh
8. Q4 On 1st January, 2017 Samson Ltd Imported goods worth $85,000 from Jackie Ltd USA. The payment were made. as under: Date Amount of Installment — Exchange Rate per US Exchange rate on 1/1/2012 was 1S = Rs. 60. Books are closed on 31st March every year The Exchange rate on 31/3/2017 was $ 1 = Rs. 63 Pass necessary journal entries in the books of Samson Ltd and also prepare Foreign Exchange
9. Q5 A. Explain Weighted average Method under Investment Accounting. 8 marks
10. Q5 B Explain Inter-related transaction in foreign currency 7 marks
11. Q5 Write short notes on: (Any 3) 15 marks
    • 1) Rebate on bills discounted
    • 2) Ex-Interest and Cum-Interest Price
    • 3) Asset classification of Banks
    • 5) Reserve for unexpired risk

Read from the scan above, so a character or two may differ. The scan is the original.