BCom TY BCom Sem 5 BCom Sem 5 (2017 2018) Nov 2018 ACCOUNTING AUDITING PAPER V FIN. ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

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1. Q1 (A) Match the Column (Any Eight) : 8 marks
2. Q1 Amalgamation of Companies e Shareholders Funds
3. Q5 Amalgamation Adjustment e
4. Q7 Cum- Interest price.of Investment increase in the value of asset is e Credited to Capital Reduction A/c
   • (B) State whether the following statements are True or False. Rewrite the statement 7
5. Q1 No new company is formed at the time of Internal Reconstruction
6. Q2 On Amalgamation of companies, the company which takes over another company is called Transferee Company
7. Q3 short term investments are sold, profit on such sale is transferred to profit and Loss account
8. Q4 IFRS stands for International Financial Reporting Standards
9. Q5 Computer software is shown under the head Intangible assets in the balance sheet of a company 6). Arrears of Preference Dividend is shown under 'Other current Liabilities' in the Balance Sheet of a company 7). Balance in the Capital Reduction account is transferred to Capital Redemption 8). Interest on Debentures is calculated on cost of Debentures Surrendered shares cannot be reissued
10. Q10 Capital Work in progress is shown under the head 'Share in the Balance Sheet of a company
    • Q.P. Code : 23697
11. Q2 Following is the Balance Sheet of Hardship Ltd. as on March, 2017: 1,60,000 Equity Shares of = 10 | 16,00,000 | Land & Building 12,00,000 9% Debentures of = 100 each 7,00,000 | Inventories 15 marks
12. Q1 Arrears of cumulative preference dividend for 2 years
13. Q2 Claims for damages pending in the court of law = 2,00,000 The following scheme of reconstruction was duly approved :
14. Q1 8 % Preference Shares of each were to be reduced to an equal number of fully paid preference shares of each
15. Q2 Equity Shares of each were reduced to an equal number of fully paid equity shares of each
16. Q3 Goodwill, preliminary expenses and accumulated losses are to be written off
17. Q4 8 % preference shareholders agreed to waive one year's dividend and to accept equity shares of each fully paid for the balance of arrears of dividend Inventories are to be revalued and doubtful debtors to be written
18. Q6 9 % debenture holders agreed to take over part of the security of the book value of =4,00,000 for =5,00,000 in part satisfaction of their claim and agreed to waive interest payable to them
19. Q7 Sundry creditors agreed to forego subject to the condition that the company must pay them half of the remaining amount immediately
20. Q8 The contingent liability for the claim for damages materialized to the extent of 50%, which the company paid immediately
21. Q9 directors agreed to convert their loan into equity shares of each fully You are required to pass journal entries in the books of Hardship Ltd
    • Q.P. Code : 23697
22. Q2 Sun Ltd. was formed to acquire the business of Moon Ltd. as on 31-03-2017. The summary balance sheet of Moon Ltd as on that date was as under : Equity Shares of each 4,50,000 | Goodwill 60,000 Terms of Acquisition :
23. Q1 Sun Ltd issued to Moon Ltd. 75,000 equity shares of each at =12 per share
24. Q2 Sun Ltd paid =4 in cash for each share of Moon Ltd
25. Q3 Sun Ltd discharged 12% debentures of Moon Ltd at 10% premium by issue of its 15% debentures at a discount of 12%
26. Q5 Sun Ltd revalued land and building at =3,00,000. Plant at 10% below book value, Stock at =1,05,000 and debtors subject to 5% provision for doubtful
27. Q6 Moon Ltd sold one-fifth of the shares received from Sun Ltd at =13 per share
28. Q7 Sun Ltd issued 30,000 equity shares of each at each to the public. The issue was fully subscribed and paid for
29. Q8 Export profit reserve is to be maintained for the next three years You are required to:
    • b) Pass journal entries in the books of Moon Ltd
    • Q.P. Code : 23697
30. Q3 Following are the summary of Balance Sheet of S Ltd and B Ltd as on 31-3-2017 : Debenture of Debtors SB Ltd. was formed to take over the business of S Ltd and B Ltd with an Authorized Share Capital of consisting of 60,000, 12% preference shares of =100 each and 3,00,000 equity share of each Terms of Amalgamation : 15 marks
31. Q1 8% preference shareholders of both the companies are issued equal number of 12% preference shares of SB Ltd. at a price of =125 each
32. Q2 SB Ltd. will issue four equity shares for three equity shares of S Ltd. and four equity shares for five equity shares of B Ltd. The shares are to be issued at
33. Q3 10% debenture holders of both the companies are discharged by SB Ltd. by issuing such number of its 12% debentures of each so as to maintain the same amount of interest
    • Q.P. Code : 23697
34. Q4 SB Ltd. agree to take over all assets and all liabilities at book values except the
    • a) Tangible fixed assets at 10% more than book values
    • b) Investments and sundry debtors at 90% of their book values
35. Q5 Export profit reserves are to be maintained for three more years You are required to:
36. Q1 Compute purchase consideration of S Ltd. and B Ltd
37. Q2 Pass journal entries after amalgamation in the books of SB Ltd. applying Purchase Method. (Narration is not required)
38. Q3 (A) Prepare Vertical Statement of Profit and Loss for the year ended 31-3-2017 of
39. Q1 Interest on Investment was receivable
40. Q2 Closing Stock of Raw Material
    • (B) On 1* April 2016 Mr. Rajesh holds 20,000 Equity Shares of =10 each in H Ltd., On 1* July, 2016 he purchased 4,000 additional shares of the same Company at a On 1* October, 2016, Company issued bonus of one share for every six shares held as on that date On 2017 he purchased right shares, announced by Company at the rate of two shares for every five shares held as on that date at each On 31“ January, 2017 he purchased 2,000 additional shares of the same Company at a cost of On February 2017 he sold 1,000 shares for each Prepare Investment in Equity Shares Account in the books of Mr. Rajesh for the 7
    • Q.P. Code : 23697
41. Q4 The following is the Trial Balance of A Ltd. as on March, 2017: Fixed Assets - Tangibles | 1,60,000 Equity Shares of Office Salaries 1,55,000 | =10 each fully paid up 16,00,000 Finance Expenses 49,000 | Revenue from Operations 8 00,000 Cash on Hand 8 Sundry Creditors 24,600 Security Deposit- short term 7,800. for Taxation 70,000 5% Investments in Bonds 2,10,000 | Interest Received (Net of 9,500 15 marks
42. Q1 Market value of investments is while face value is =2,00,000
43. Q2 Auditors remuneration includes their fees as auditors and remaining as
44. Q3 Sundry Debtors include due for more than 6 months =15,000. All debts are considered good and unsecured
45. Q4 Provide for outstanding expense : Office Salaries =8 Office Rent
46. Q5 Provision for tax for the current year to be made
47. Q6 tax assessment for year 2015-16 was completed resulting into a gross 7). The Authorized Share Capital of the Company is 2,50,000 Equity Shares of =10
48. Q8 Transfer =1,00,000 to general reserve Prepare statement of Profit and Loss for the year ended 31 March, 2017 and a balance sheet as on that date of A Ltd. Ignore previous year’s figures and corporate dividend tax
    • Q.P. Code : 23697
49. Q4 Mr. Shivam holds 1,000 — 10% Debentures of =100 each in TM Ltd. as on 1* April, 2016 at a cost of =1,20,000. Interest is payable half yearly on 30" September and March every year. Transactions for the year are as follow : Date Particulars Number of Rate The books of accounts are closed on March every year Prepare Investment in 10% Debenture Account in the books of Shivam for the year ended 31/03/2017. Market value of the above investment on 2017 was =1,30,000
50. Q5 (a) Purchase Consideration? Explain the different methods of computation of 8 marks
    • (b) Distinguish between Internal Reconstruction and External Reconstruction of 7
51. Q5 Write short notes on Any Three of the following : 15 marks
    • a) Purchase method of Amalgamation
    • b) Tangible fixed assets and Intangible fixed assets
    • c) Need of convergence to IFRS
    • e) Cum Interest.and Ex Interest Price
    • Q.P. Code : 23697
52. Q9 ate) :
53. Q2 St aot
54. Q3 Seat
    • Q.P. Code : 23697
55. Q3 Ge
    • Q.P. Code : 23697
56. Q2 fa. a ome. fe. aT 84 marks
57. Q3 fe. Het 22% 20%
    • Q.P. Code : 23697
58. Q3 wel aa
59. Q2 6% UM 22%
60. Q3 20% 22% wha
    • Q.P. Code : 23697
    • a) fen 20%
61. Q3 (a) fe. 2 marks

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