BCom TY BCom Sem 5 BCom Sem 5 (2019 2020) Oct 2020 FINANCIAL ACCOUNTING AUDITING PAPER V FINANCIAL ACCOUNTING Question Paper - Mumbai University | munotes

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1. Q1 (A) Match the Columns ( Any 8) in the Balance sheet of the vendor company 8 marks
2. Q4 On Amalgamation , Preliminary expenses e The amount paid to the shareholders made by creditors is account reconstruction expenses paid are Account
   • (B) State whether the following statements are True or False. Rewrite the statement (Any 7)
3. Q1 On Amalgamation, payment made to Debenture holders is considered as part of Purchase
4. Q2 In Internal Reconstruction, consolidation of shares result in profit for the company On Amalgamation, vendor companies are not liquidated
5. Q4 is no difference between Internal and External reconstruction of companies
6. Q5 IFRS stands for International Financial Restructuring standards
7. Q6 Bonus shares are shares which are issued free of cost to the existing equity shareholders
8. Q7 Bills under discount , maturing after the Balance sheet date is a contingent liability
9. Q8 At the end of the year, Non- current Investments are valued at cost
10. Q9 Unclaimed dividend is shown under the head ‘Other current liabilities’ in the Balance sheet of a limited company sale of short term Investment is calculated by using the formula selling price less
11. Q2 The following is the balance sheet of NA Ltd. as on 31“ March, 2017: 20,000 7 % Preference Shares of Goodwill 10,00,000 each fully paid 20,00,000 | Land & Building 4,00,000 Equity Shares of Plant & Machinery each fully paid 40,00,000 | Investments 8% Debentures of each 20,00,000 | Current Assets (Secured on Land & Building) Preliminary Expenses 2,00,000 Interest due on Debentures Profit & Loss A/c 10,00,000 Loan from Directors The following scheme of reconstruction was sanctioned, approved and implemented: 15 marks
12. Q1 Preference Shares were reduced to equal number of fully paid preference shares
13. Q2 Equity Shares were reduced to equal number of fully paid equity shares per
14. Q3 8% debenture holders took over part of the security having book value at in part satisfaction of their loan and 2,40,000 equity shares of each fully paid were issued to them for the balance
15. Q4 Debentureholders waived their interest due on debentures
16. Q5 Directors converted their loan into equity shares of each fully paid
17. Q6 Goodwill, preliminary expenses and accumulated lossesare to be written off
18. Q7 The assets were revalued as under: You are required to:
19. Q1 Pass Journal Entries in the books of NA Ltd. and
20. Q2 Sona Ltd. was formed to acquire the business of Mona Ltd. as on 31-3-2017. The summary of Balance Sheet of Mona on that date was as under: (15) Equity Shares of each fully Goodwill 40,000 Provision for Tax 60,000 | Bank Balance 40,000 Terms of Acquisition: Sona Ltd. issued to Mona Ltd. 50,000 equity shares of 10 each at per share
21. Q2 Sona Ltd. paid in cash for each share of Mona Ltd
22. Q3 Sona Ltd discharged 12% debentures of Mona Ltd. at 10% premium by issue of its 15% debentures at a discount of 12%
23. Q5 Sona Ltd. revalued Land and Building at Plant at 10% below book value, Stock at and Debtors subject to 5% provision for doubtful debts
24. Q6 Mona Ltd. sold one-fifth of the shares received from Sona Ltd. at per share
25. Q7 Sona Ltd. issued 20,000 equity shares of each at each to the public. The issue was fully subscribed and paid for
26. Q8 Export Profit Reserve is to be maintained for the next three years You are required to:
27. Q2 Pass Journal Entries in the books of Mona Ltd
28. Q3 BC Ltd. is formed to take over the business of B Ltd. and C Ltd. The summary Balance Sheets on the date of amalgamation as March 2017 is as under: (15) Equity Shares of Land & Building 6,00,000 each fully paid 7,50,000. | Plant &Machinery 3,00,000 3 of each fully paid 3,00,000 2,00,000 | Stock 4 2,00,000 The terms of amalgamation were as under:
    • a) BC Ltd. issuedfive equity shares for each share of B Ltd. and four equity shares for each equity share of C Ltd. The shares are of each issued at each
    • b) Preference shareholders of both the companies are issued equivalent number of 15% preference shares of new company at each (face value
    • c) 10% debenture holders of B Ltd. and C Ltd. are discharged by BC Ltd. by issuing such number of its 15% debentures of each so as to maintain the same amount of
    • d) BC Ltd. revalued the following assets taken over from B Ltd. and C Ltd
    • e) It was decided by the directors of BC Ltd. to set off goodwill and capital reserve mutually You are required to:
29. Q2 Pass journal entries in the books of BC Ltd. applying purchase method. (Narration is not
30. Q3 (A)Prepare Vertical Statement of Profit and Loss for the year ending 31-3-2017
31. Q1 Interest on Investment was receivable
32. Q2 Closing Stock of Raw Material 20,000
33. Q3 (B) On April, 2016 Mr. Dipesh holds 40,000 Equity Shares of each in ABC Ltd at a cost of On 1“ June, 2016, he purchased right shares, announced by the Company at the rate of two shares for every five shares held as on that date at each On 1* August, 2016 he purchased 6,000 additional shares of the same Company at a cost of On 1* October, 2016 Company announced a bonus issue of one share for every four shares held as on that date. On 31* January, 2017 he purchased 5,000 additional shares of the same Company at a cost of 792,000. On February, 2017 he sold 1000 Prepare Investment in Equity Shares Account in the books of Mr. Dipesh for the year
34. Q4 The following is the Trial Balance of C Ltd. as on 31“ March, 2017: Machinery 10,65,000. | 2,00,000 Equity Shares of Interim Dividend 60,000 | Revenue from Operations 8,14,000 Cash on Hand Discount Received 8,700 Security Deposit- short term 7,800 | Sundry Creditors 24,600 10% Debentures 1,00,000 | Provision for Taxation (2015-16) 70,000 Stock — Finished Goods 4,50,000 | Interest Received(Net of TDS 9,500 15 marks
35. Q1 Auditor’s remuneration includes their fees as auditor and the remaining amount
36. Q2 Sundry Debtors include due for more than 6 months All debts are considered good and unsecured
37. Q3 Provide for outstanding expense: Office Salaries
38. Q4 Provision for tax for the year 2016-2017 to be made
39. Q5 The income tax assessment for the year 2015-16 was completed resulting into a gross
40. Q6 The Authorized Share Capital of the Company is 5,00,000 Equity Shares of each
41. Q7 The Board of Directors decided to provide as Director’s fees Prepare statement of profit and loss for the year ended March, 2017 and a balance sheet as on that date of C Ltd. Ignore previous year’s figures and Corporate Dividend Tax
42. Q4 Mr. Bharat holds 2,000 — 12% Bonds of each in NP Ltd. as on 1“ April, 2016 at a cost of Transactions for the year are as follow: Interest is payable half yearly on 30" June and 31‘! December every year. Prepare Investment in 12% Bond Account for the year ending 31/03/2017. (15)
43. Q5 (A) Explain the difference between Internal and External Reconstruction of
    • (B) What are the benefits of adoption of IFRS? 7
44. Q5 Write short notes on any 3 of the following: 15 marks
    • a) Disclosure of cash and cash equivalent in the balance sheet of a limited company Net asset method of purchase consideration
    • c) Consolidation and subdivision of shares
    • d) Features of IFRS
    • e) Cum-interest and Ex- Interest transactions in Investment accounting fet. fet. 40,000 AT an wea fa
45. Q3 (a) fe. fa
    • (31) the tke

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