B.Com In Investment Management SEM II 2017 2018 April 2018 INV. MGT INTRO TO ACCOUNTING II Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 a) Fill in the blanks (Any eight) 8 marks
   • 1. Investment intended to be held for less than 12 investment
   • 2. The premium payable on redemption can be provided out of
   • 3. Currency used in presenting the financial statements cash items are not recorded
   • 5. The Capital Redemption Reserve is
   • a) payment out of dividend b) written off accumulated losses
   • c) issue of fully paid shares d) for all of the above
   • 6. Debentures is
   • a) Fixed interest prior to shareholders b) Variable interest prior to shareholder
   • c) Surplus d) Deficit term investments are carried at
   • c) Market Price d) Cost or Market whichever is low
   • 8. Redeemable Preference shares can be redeemed
   • a) Only out of the proceeds of the fresh issue of shares only out of divisible profit
   • c) out of fresh issue and/or out of the divisible profit d) none of the above
   • Q. P. Code : 35254
   • 9.Non- monetary items are valued
   • 10. The mean of the exchange rates in force during a period is known as
   • b) state whether the following statement are True or False ( Any seven) 7
   • 1. The Equity Share cannot be redeemed by a company
   • 2. Premium on redemption of preference shares can be met out of capital reserve
   • 3. Interest on calls in advance is allowed @ 10%
   • 4. Share forfeited balance is transferred to Capital Reserve Account
   • 5. The brokerage is payable on face value of investment
   • 6. Brokerage and expenses incurred on the purchase transaction of investment is not included in the cost of investment purchased
   • 7. Closing rate is the exchange rate at the close of the day on which a transaction takes place
   • 8. All receipts are the items of revenue income
   • 9. A company can redeem only fully paid preference shares
   • 10. Interest is paid to the holder of the security on the due date, in respect of his actual period
2. Q2 N issued 20,000 equity shares of Rs 10 each at premium of Rs 2 per share, payable Rs 3 on application, Rs 5 on allotment (including premium) and the balance by two equal calls The due dates of the installments are: (15) Application on 1“ April 2017 Allotment On June 2017 First Call on 1“ August 2017 Final Call on 1“ October 2017
   • Q. P. Code : 35254 All the shares were duly allotted and the money so received on due dates with the exception of the following:
   • a) Mr. A holding 2,000 shares paid the entire amount due along with allotment
   • b) Mr. B holding 4,000 shares paid the amount due on first call with the amount due on Show journal entries (ignore interest on calls in advance and calls in arrears) in the books of
3. Q2 On 1* January,2018 P imported goods worth $ 1,00,000 from T Ltd., USA. The payments were made as under: (15) Exchange rate on 01/01/2017 was $ 1=Rs.58 Books are closed on March every year. The exchange rate on 31/03/2017 was $ 1=Rs.62 Pass necessary journal entries in the books of P Ltd. to record the above transactions and also prepare T. Ltd A/c in the books of P. Ltd for the year ended 31“ march, 2017
4. Q3 Mr. Mangal holds as on 1“ April 2017 Rs. 1,50,000(Cost price Rs. 1,56,000) 8 % Government Securities as investment on which interest is payable half yearly on June and December every year. The following transactions took place during the accounting
   • 1) On 1-5-2017 Face Value Rs: 60,000 @ 98 Cum-Interest
   • 2) On 1-11-2017 Face Value Rs. 90,000 @ 101 Ex-Interest
   • 1) On 1-8-2017 Face Value @ 97 Cum-Interest
   • 2) On 1-2-2018 Face Value @ 102 Ex-Interest Market price of investment at 1% discount on March 2018. Prepare Investment Account closing March 2018 in the books of Mr. Mangal. Investments are to be valued at cost or Market Value whichever is less. (Apply AS 13)
   • Q. P. Code : 35254
5. Q3 The following is the Balance Sheet of R Ltd as on 31“ March 2018 preference Shares of Rs. 100 each fully paid up Fixed Assets each fully paid up 40,00 000 Investment 8,00,000 The 8% Redeemable Preference Shares are to be redeemed at a premium of 10%. Fresh Issue of equity shares to be made to the extent required in terms of the provisions of the companies Act 1956. All the investments are to be sold off at market value. Temporary Bank overdraft is to be arranged in case of shortage of funds The company redeemed the Preference shares on April 2018 except in case of one shareholder holding 200 preference share who could not be traced Subsequently the company issued bonus shares in the ratio of one equity share for every four equity shares held in new issue Give necessary Journal Entries to record the above transactions in the books of R. Ltd 15 marks
6. Q4 Following is the Receipt & Payment Accounts and additional information of Fortis Hospital, Prepare Income & Expenditure Account for the year ending March, 2018 and the Balance Sheet as on that date. (15) Receipts & Payments Account for the year ending 31*t March, 2018 2,35,000 | By purchase of furniture Donation | By Fixed Deposit
   • Q. P. Code : 35254
   • a) Outstanding subscription for 2015-16 is Rs.10,000
   • b) Equipment and Furniture were purchased on 01/04/ 2017 and both the assets were to
   • c) Half of the Life Membership Fees and Donations are Fully capitalised
   • d) Medicine bill is outstanding Rs.15,000
   • e) On 1* April 2017 the Hospital had the following Assets & Liabilities
7. Q4 a) L Ltd. issued 25,000, 7% Debentures of Rs. 100 each at a discount of 5% on 1* April, 2016. Amount payable was as follows — On Application Rs.20 ; (7) On Allotment Rs. 35 ( discount) On final Call Issue was fully subscribed & paid for, give journal entries
   • a) J Ltd. issued 20,000 shares of Rs. 100 each at a premium of Rs. 10 per share. The share amount was payable as under — Application received for 20,000 shares. All shares were duly allotted. Pass necessary journal entries in the books of J Ltd
8. Q5 a) What is Preference share? Explain the types of preference shares. 8 marks
   • b) Differentiate between shares and debentures. 7
9. Q5 Write short Notes on: (any three) Forfeiture of equity shares 15 marks
   • 3. Reporting currency
   • 4. Private placement of shares
   • 5. Receipt and Payment Account

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