B.Com In Banking & Insurance (BCBI) Sem II 2017 18 Oct 2017-18 ACCOUNTING II Question Paper - Mumbai University | munotes

Questions asked in this paper

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1. Q2 Questions 2, 3, 4and 5 have internal options
2. Q3 Workings should form part of your answer
3. Q1 A) Select correct option to complete the statements (Any 8/10) 8 marks
4. Q1 Goodwill is
   • a) Anintangible asset
   • b) A fixed assets
   • d) Allthe above
5. Q2 Super profit is
   • a) Excess of profit average profit over normal profit
   • c) Average profit earned by similar companies
   • d) None of the above
6. Q3 Normal profit depends on 4 marks
   • a) Normal rate of return
   • d) None of the above
7. Q4 Net assets method is based on the assumption that the company is
   • a) concern
   • d) none of the above
8. Q5 buy year
9. Q6 debt: equity ratio after buy should not exceed redemption Reserve is to be created to the extent redemption is out of
   • b) issue of shares
   • c) Capital profits
   • d) profits
   • Q.P. Code :05544
10. Q8 The period of preference shares cannot exceed years
11. Q9 The interest on sinking fund investment is credited to :
    • c) Debentures account
    • d) None of the above
12. Q10 Debentures can be redeemed by
    • a) payment
    • b) Annual installment
    • c) Purchase in the open market
    • d) Allofthe above
    • B) State whether following statements are true or false (Any 7/10) 07
13. Q1 FMP is considered while calculating value of goodwill
14. Q2 Yield value depends on Net Assets value
15. Q3 The equity shares can be redeemed by
16. Q4 The partly paid shares can be
17. Q5 Buyback of shares can be as per RBI guidelines
18. Q6 The shares must be cancelled.and destroyed after buyback
19. Q8 Acompany can issue shares to redeem debentures
20. Q9 The debentures can. be different points of time
21. Q10 After redemption of debentures, balance in sinking fund should be transferred to free reserves
22. Q2 The Balance Sheet of HMT Ltd. as on March, 2017 is as follows. 10,000 shares of 10 each fully paid 1,00,000 | Land & Building 84,000 Provision for taxation Stock 2,000 The net profits of the company after charging depreciation and taxes for the years ending March were On March, 2017, assets were valued as under: 10% return on investment can be considered fair for the business required to find value of goodwill by: 15 marks
    • a) Five years purchase of super profits
    • b) of super profits
    • Q.P. Code :05544
23. Q2 The Balance Sheet of FYBBI Ltd as on March, 2017 is as follows: Equity Capital (FV 10 each) 3,20,000 | Land & Building 4,16,000 Provision for Taxation 12,800 | Stock 25,600 15 marks
    • i) Realizable value of goodwill is Rs: 48,000 and that of Land & Building is Rs. 4,61,000
    • ii) The expected rate of return on capital employed is 15%
    • iii) Average annual profits is Rs. 1,80,000. Tax rate is 50% You are required to find fair value of each equity share
24. Q3 As on 1* April 2014, Infy Ltd. 20,00,000 15% Debentures of Rs. 100 each at par redeemable ata premium of 10%. Out of this, 60% debentures are to be redeemed at the end of year and the balance at the end of the 3 year. The board has decided to transfer minimum required amount to D. R. R. at the end of the first year Pass journal entries for recording the above transactions. Ignore interest 15 marks
25. Q3 The summarized Balance Sheet of Bahar Ltd. on March, 2016; was as follows: Preference Shares of Rs. 100 each 10,00,000 | Current assets 34,00,000 3,00,000 Equity Shares of Rs. 10 The condition of issue of the redeemable preference shares provided for their being redeemed on July 2016; at a premium of 5 percent. The profit available being not sufficient to redeem the whole issue, the company issued 50,000. Equity shares of each at par on 1* July, 2016; which were duly taken up and paid for. The redeemable preference shares were redeemed on the due date Show Journal Entries to record the above transactions 15 marks
    • Q.P. Code :05544
26. Q4 Balance Sheet of MB Ltd. as on March, 2017 is as follows: Equity shares (Rs. 10 each) 6,00,000 | Fixed assets 18,00,000 Preference shares (Rs. 100 each) 2,00,000 | Long Term Investments 2,00,000 Company want to buyback shares at Rs. 30 each Keeping in view all the legal requirements, determine maximum possible quantity of shares to be bought back. Also pass necessary journal entries for the buyback assuming for the formalities are completed 15 marks
27. Q4 Following is the Balance Sheet of KMT Ltd. as on March, 2017 Equity shares (Rs. 10 each) 8,00,000 | Fixed Assets 10,20,000 Preference shares (Rs. 100 each) Bank Balance 6,20,000 Profit and Loss A/c 80,000 The company wants to buyback 20% of its equity Capital at 10% premium. The company issued 1200 preference shares of Rs. 100 each at 10% premium Pass necessary journal entries to records the above transactions 15 marks
28. Q5 Answer the following
    • A). Explain the steps in calculation of goodwill by super profit method. 08
    • B) the benefits of buyback of shares? 07
29. Q5 Write short notes on any three
    • a). Methods of valuation of equity shares 15
    • b) Sinking fund method of redemption of debentures
    • c) buyback of equity shares

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