BCom SY BCom Sem 4 BCom Sem 4 (2017 2018) April 2018 ACCOUNTANCY Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 All questions are compulsory
2. Q2 Q.no. 1 & Q.6 carries 20 marks
3. Q3 Q.2,3,4&5 carries 15 marks
4. Q4 Use of simple calculator is allowed
5. Q1 A) MULTIPLE CHOICE QUESTIONS. (any 10) 10 marks
6. Q2 Discounted bill of exchange is a
7. Q3 Partly paid shares can be made fully paid by capitalizing
   • b) Capital Redemption Reserve d) All of the above
8. Q4 Bonus shares cannot be issued by capitalizing
9. Q5 Discount on issue of Debentures
10. Q6 The Companies Act 2013
    • a) Prescribes restrictions on issue of debentures at discount
    • b) Does not prescribe any restrictions on issue of debentures at discount
    • c) Provides no issue of debentures at discount
    • d) All of the above
11. Q7 The reserve which cannot be transferred to Capital Redemption
    • b) Profit prior to incorporation d) All of the above
    • b) Only irredeemable preference shares d) All of the above
12. Q9 Debentures may be redeemed out of
    • a) Capital b) Profit
    • c) Conversion into shares d) All of the above
13. Q10 Capital Reserve is
    • Q.P. Code : 36194
14. Q11 For computation of pre-incorporation profit carriage on
    • a) Allocated in sales ratio b) Allocated in purchase ratio
    • c) Debited to pre-incorporation period d) Debited to post-incorporation period computation of pre-incorporation profit travelling expenses are allocated in
    • c) Insales ratio d) In time ratio
15. Q1 B) TRUE OR FALSE (any 10) 10 marks
16. Q1 Loose tools are shown under current liabilities
17. Q2 Short term loan is the loan due for more than 5 years
18. Q3 Calls in arrears is added to subscribed capital
19. Q4 The document inviting offer from public for subscription is share certificate
20. Q5 Rate of underwriting commission in case of debentures cannot exceed 10%
21. Q6 Issue of debentures must be sanctioned by state government
22. Q7 Capital redemption reserve is used for payment of dividend
23. Q8 Capital reserve is a divisible profit
24. Q9 Preference shareholders have voting rights
25. Q10 Preference shares may be convertible into equity shares
26. Q11 For computation of pre-incorporation profit advertisement expenses are allocated in time ratio
27. Q12 Profit prior to incorporation is available for payment of dividend
28. Q2 The Balance Sheet of Straight Ltd. As on March, 2017 was as under: 25,000 Equity Shares of = 100 Investment 10,00,000 each fully paid 25,00,000 Preference shares of 100 each Other current assets 20,20,000 On April, 2017; the company made a call of 10 each on its preference shares and call money was duly received. All preference shares were redeemed at a premium of 2%. The company sold all its investment at market value. For the purpose of redemption, the company issued minimum number of equity shares at a premium of
    • Q.P. Code : 36194 10% after utilising available resources to the maximum extent, keeping in view the provisions of the Companies Act, 2013. All preference shareholders were paid off, Pass Journal Entries in the books of the company assuming that redemption is duly
29. Q2 Following is the Balance sheet of Moonlight Ltd. as on March, 2017 Preference shares of = 100 Bank 2,18,000 each, fully paid 2,00,000 | Investments 1,00,000 Equity Shares of 10 (Market value 1,50,000 each, fully paid 10,00,000 On the above date the Directors of the company took following steps to redeem 8% Preference shares at a premium of 5%:
    • a) The company issued 4,000 Equity shares of % 10, at a premium of 2 per share for the purpose of redemption of preference shares
    • b) Investment were sold at market price
    • c) All the payments were made to the preference shareholders except those holding 100 shares who could not be traced You are required to pass necessary journal entries in the books of Moonlight Ltd Complying with requirements of Companies Act 2013
30. Q3 Roshan Ltd. gave notice of its intention to redeem its outstanding = 4, 00,000, 8% debenture at 105 (nominal value = 100) and offered the following options to the
    • a) 11% preference share of 40/- each at 50 per share
    • b) 10% debenture at 100 (at par)
    • c) To have their holdings redeemed for cash. Assume redemption out profit only
31. Q1 The holders of 1, 40,000 debenture accepted option (a) 2). The holders of 1, 60,000 debentures accepted option (b)
32. Q3 The remaining debenture holders accepted option (c) Pass the necessary journal entries in the books of Roshan Ltd
    • Q.P. Code : 36194
33. Q3 The following balance appeared in the books of Paradise Ltd. on 1-4-2012:
    • i. 12% Debentures 2 7,50,000
    • ii. Balance of Sinking Fund % 6,00,000
    • iii. Sinking Fund investment 6, 00,000 represented by 10% 6, 50,000 secured bonds of Government of India Annual contribution to the sinking funds was % 1, 20,000 made on March each year. On 31-03-2013, balance at bank was 3, 00,000 before receipt of interest. The company sold the investment at 90% for redemption of debenture at a premium of 10% on the above date You are required to prepare the following accounts for the year ended March,
34. Q1 Debentures Account
35. Q4 Bank Account
36. Q5 Debentureholders Account
37. Q4 A limited, a trading company decided that the value of its building could be used to provide additional working capital. The Balance Sheet of the company as on March, 2018 was as under: 10,000 Equity Shares of 1,00,000 | Building at cost 2,00,000 each Less: Depreciation 40,000 1,60,000 5,000 12% Redeemable Furniture at cost 90,000 Preference Shares of = 10 each 50,000 | Less: Depreciation 30,000 60,000 Reserves & Provisions: Current Assets, Loans and Depreciation on building has been provided @ 2% per annum on cost. The following action was taken
    • a) The building was sold for 2, 20,000 to another company, who leased it back to A Limited for 21 Years at annual rent of = 16,000
    • b) 12% Debentures were discharged at a premium of 10%
    • c) Preference Shares were redeemed at a premium of 10% The directors expect that the profit of the company will further increase by = 20,000 for the coming year due to change in working capital
    • Q.P. Code : 36194 You are required to draft the necessary journal entries to record the above
38. Q4 On 1* January, 2013 XYZ Limited issued 10,000 fifteen years debentures of = each bearing interest at 10% p.a. One of the conditions of issue was that the company could redeem the debentures by giving six month’s notice at any time after 5 years, at a premium of 4%, either by payment in cash or by allotment of preference shares and or other debenture at the option of the debentureholders On 1* April, 2018 the company gave notice to the debentureholders of its intention to redeem the debentures on October, 2018 either by payment in cash or by allotment of 11% preference shares of % 100 each at % 130 per share or 11% second Debentures of 100 at 96 per debenture Holders of 4,000 debentures accepted the offer of the preference shares; holders of 4,800 debentures accepted the offer of the 11% second debentures and the rest demanded cash on October, 2018 Give the journal entries to give effect to the above as of October, 2018. Suggest how discount on issue of debentures can be dealt in the accounts. Ignore interest 100 marks
39. Q5 ABC Ltd. was incorporated to take over the running business of BC and Cl brothers with effect from 1* April, 2017. The Company was incorporated on August, 2017 The following information was available from the books of accounts, which were closed on March, 2018 Interest on capital 18,000
    • Q.P. Code : 36194
40. Q1 Monthly sales were 2 5, 00,000 for pre-incorporation period, while total sales for the year were 70, 00,000 The sales were arose evenly throughout the concerned periods
41. Q2 Office rent was % 84,000 p.a. upto September, 2017 It became 1, 08,000 p.a. thereafter
42. Q4 Auditor’s Remuneration was payable for the whole year
43. Q5 Bad debts written off included a debt of 4,000 taken over from the vendor, while the remaining were in respect of goods sold in September, 2017
44. Q6 Depreciation includes 6,000 for asset acquired in the post incorporation Prepare profit & Loss account for the year ended March, 2018 in the columnar form showing profit/ loss for the pre and post incorporation period
45. Q5 Nishan Ltd. was incorporated on August, 2017 to acquire a business as on 1 April, 2017. The first accounts were closed on March, 2018 The following items appeared in the Profit and Loss Account For the year ended March, 2018 Director’s Fees 49,000 | By Gross Profit 9,60,000 Interest on Debenture 24,000 Commission on sales 36,000 Rent is paid on the basis of floor space occupied . The floor space occupied was doubled in the post incorporation period
    • Q.P. Code : 36194
46. Q2 Sales for each month of December, 2017 to March, 2018 were double the monthly sales of April to November, 2017
47. Q3 Bad debts 500 were in respect of sales effected two years ago
48. Q4 Mr. Amit was working partner in the firm entitled to a remuneration @ % 12,000
    • p.m. from August, 2017 he was managing directors of a company entitled to salary @ 2 15,000 p.m. The remaining salary is to two Clerks employed during the period July to 30" November, 2017 You are required to prepare Profit & Loss Account for the year ended March, 2018 and show ‘pre’ and ‘post’ incorporation profit or loss
49. Q6 a) Explain different types of debentures 10 marks
    • b) What rules must be complied for issue of Bonus shares ? 10
50. Q6 Write short notes (any 4)
51. Q1 Sources of Bonus issue
52. Q3 Issue of Debentures as collateral security
53. Q4 Divisible Profit
54. Q5 Profit prior to incorporation
55. Q6 Writing off discount on issue of debentures
    • b. at
56. Q3 wed
57. Q8 Hell
    • H) Hear 3) atte
58. Q3 GAM hel
59. Q3 are cit AAT AT 2% We

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