BCom SY BCom Sem 4 2022 2023 Mar 2023 ACCOUNTANCY FINANCIAL MANAGEMENT IV Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A] State True or False: (any 10). {10 Marks]
2. Q1 Depreciation on delivery van is divided in sales ratio
3. Q2 A company is an artificial legal entity
4. Q4 Plant and Machinery is classified as Non current asset
5. Q5 Debentures can be redeemed by payments in annual installments
6. Q6 Directors fees is divided in Time ratio t 7. Debenture holders are the owners of the Company
7. Q8 Profits after incorporation are Capital profits
8. Q9 Final and interim dividend are the same
9. Q10 Sweat equity shares are issued by the Company to the public
10. Q11 Preliminary expenses are divided in Sales ratio
11. Q12 A Company can redeem partly paid up preference shares
12. Q1 B] Multiple choice questions: (any 10)
13. Q1 Debentures may be issued ;
    • a) Only at par
    • b) Only at par or premium
    • c) Only at discount
    • d) At par or premium or discount without any restrictions
14. Q2 Redeemable preference shares can be redeemed
    • a) Only out of proceeds of fresh issue of shares
    • b) Only out of divisible profits
    • d) None of the above
15. Q3 The balance of debenture redemption reserve is transferred to
16. Q4 For computing Pre incorporation profits, depreciation is
    • a) Treated as pre period item b)Treated <s post period item
    • c) Allocated in Time ratio d) Allocated in Sales ratio
17. Q5 Preliminary expenses written off should be charged to
    • b) Trading account d) None of the above ji 7. is also called as Nominal Capital
18. Q8 is an example of Non-current asset
    • c) Stock d) Cash
19. Q9 is an example of Non-current liability
    • a) Debentures b) Creditors
20. Q10 can be Registered or Bearer
21. Q11 is an example of Profits not divisible
22. Q12 Bonus shares are issued to
23. Q2 A] Following is the Balance Sheet of Prakash Ltd. As on March, 2022 [ Shares of Rs. 100 each Rs. 80 paid up 2,40,000 | Current Assets 3,40,000 on Trade Payable 1,60,000 On the above date, 8% Preference Shares were redeemable at a premium of 10%. For this purpose the company 20 marks
    • a. a final call of Rs. 20 per share on 8% Redeemable Preference share which was paid by all the shareholders
    • b. Sold investments at a profit of 10%
    • c. The company issued 10,000 Equity shares of Rs. 10 ata premium of Rs. 2 per share This issue was fully subscribed and all the monies were duly received
    • d. Issued bonus shares to the Equity shareholders in the ratio of one bonus shares for Journal entries to record the above transaction in the books of the company
24. Q2 B] Following is the Balance Sheet of Gora Ltd. As on March, Marks} Equity Shares of Rs. 10 each. 13,50,000 | Sundry Assets 25,00,000 of Rs. 10 each, fully paid up 13,50,000 | (Market Value Rs. 513,000) The 9% Redeemable Preference Shares are to be redeemed at 10% premium. For this purpose the company issued 67,500 equity shares at a premium of 10%. This issue was fully subscribed and all the monies were duly received. All the investment are to be sold off the The company redeemed 9% Redeemable Preference share on Ist April, 2022 except in case of one shareholder holding 675 shares who could not be traced. Subsequently the company issued bonus shares in the ratio of one equity shares for every four shares held including new issue. Temporary bank overdraft to be arranged in case of shortage of funds Give journal entries to record the above transaction in the books of Gora Ltd
25. Q3 A] M/s PQR Ltd. was formed to take over a running business with effect from April, 2016. The company incorporated on October, 2016. The following Profit & Loss Account has been prenared for the year ended March, 2017 [To Printing & Stationery To Bad debts To Audit fees [To Interest paid to
26. Q1 Total sales during the year, which amounted to Rs. 96, 00,000 arose evenly up to \ the date of the certificate of incorporation, where after they spurted to record increase of two-thirds during the rest of the year
27. Q2 Rent of the office building was paid @ Rs.1,20,000 p.a. up to September 2016 and thereafter it was increased by Rs.24,000 p.a
28. Q4 Depreciation includes Rs.3,000 for assets acquired in the post-incorporation
29. Q5 Purchase consideration was discharged by the company on October, 2016 by issuing equity shares of Rs.10 each Prepare the Profit & Loss Account in columnar form, showing distinctly the allocation of profits between pre-incorporation and post-incorporation periods, including the basis of allocation
30. Q3 B] KIRAN Limited was incorporation on 1“ July, 2021 to acquire the business from 1* April, 2021. It commenced its business on 1* August, 2021. Its Profit and Loss Account for the year ending March, 2022 is as under To Rent and Taxes 1,20,000 By Gross Profit 5,20,000 To Debentures Interest 25,490 To Printing & Stationery 15,000 To Advertising Expenses 65,000 To Office Salaries 60,000 To Selling Commission 78,000 To Carriage Outward 42,250 To Net Profit 1,14,350 Sales for the pre-incorporation period were @ Rs. 5,00,000 per month. Total Sales for , the year ended 31* March, 2022 was Rs. 65,00,000 Prepare statement of Profit & Loss Account in columnar form for the year ending March, 2022 allocating various items on suitable basis in the pre-incorporation and
31. Q3 C] Vivek Ltd. was incorporated on August, 2021 to take over the running business of M/s. Anand Bros, a partnership firm, w.e.f. April, 2021. The company received the certificate of commencement of business on 1* October, 2021. The following Profit’ and Loss A/c was prepared for the year ended March, 2022 Profit and Loss Account For the year ended March 2022 7 To Administration Exp. 71,400 | By Gross Profit 1,60,000 : To Partner’s salaries 16,100 | By Share Transfer Fees To Selling & Distribution Exp. 24,800 To Director’s Fees 2,000 To Debentures Interest 3,200 To Interest on Partner’s Capital 3,600 To Bank Charges 900 To Preliminary Expenses 2,000 To Net Profit 38,000 Sales arose evenly up to date of certificate of commencement of business. Therefore they recorded au i.crease of two-third of the average monthly sales Prepare Profit and Loss A/c for the year ended 31* March, 2022, in a columnar form showing the profit or loss during ‘Pre’ and ‘Post’ incorporation period separately
32. Q4 A] Bharat Ltd. gave notice of its intention to redeem its outstanding Rs. 600000 8% Debentures at Rs. 103 and offered the holders the following options:
    • a. 10% Preference shares of Rs. 20 each at Rs. 25
    • v. 9% Debentures at Rs. 96
    • c. To have their holdings redeemed for cash
    • (i) The holders of 80,000 debentures accepted proposal (a)
    • (ii) The holders of Rs. 240,000debentures accepted proposal (b)
    • (iii) The remaining debentures holders accepted Proposal (c) For the redemption in cash, Company decided to create debenture redemption reserve @ 10%. Pass necessary journal entries in the books of Bharat Ltd
33. Q4 B] Best Limited issued 10,000 — 8% Debentures of Rs. 100 each at par on 01-01-2019 on 31-12-2022 at par. The company decided to invest money outside business to provide funds for redemption. The outside investments were made @ 5%
    • p.a. on the last day of each year. On 31st December, 2022, the company sold all investments for Rs. 7,25,000 and redeemed the 8% Debentures The Sinking Fund value of Rs. | @ 5% interest for 4 years is 0.23012 Prepare for all the four years:
34. Q1 8% Debentures Account
35. Q2 Sinking Fund Note: Calculation to be rounded off to the nearest rupee
36. Q5 A] What is a Company? Explain its features. 10 marks
37. Q5 B] Explain the provisions of Redemption of Preference shares. {10 Marks} Write short notes on: (Any 4). Marks]
    • a) Divisible and Non Divisible profits
    • b) Equity shares and Preference shares
    • c) Final and Interim dividend
    • d) Allocation of items for Profits prior to Incorporation
    • e) Types of Assets and Liabilities
    • f) Redemption of Debentures

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