BCom SY BCom Sem 4 BCom Sem 4 (2018 2019) April 2019 ACCOUNTANCY AND FINANCIAL MGT Question Paper - Mumbai University | munotes

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1. Q4 Working Notes should form the part of your answer
2. Q1 A] Fill in the blanks choosing the correct alternative: (Any Ten)
3. Q1 should form part of the name of One Person Company
   • b. Public Limited
   • d. None of the above
4. Q2 Unclaimed dividend is shown under
   • a. Current assets
   • b. Reserves and surplus
   • c. Current liabilities
   • d. None of the above
5. Q3 Sweat Equity shares are issued to
   • a. Existing Shareholders
   • b. Employees
   • c. Auditors
   • d. None of the above
   • a. Creditors for goods
   • b. Creditors for expenses
   • c. Creditors for asset purchased
   • d. All of the above
6. Q5 Debentures may be issued at
   • a. Par
   • b. Discount
   • c. Premium
   • d. All of the above
7. Q6 The shares offered free of cost are called as
   • a. Rights shares
   • b. Bonus shares
   • c. Preferential shares
   • d. Priority shares
8. Q7 Dividend is usually paid to shareholders as a percentage of
   • b. Net profit
   • d. Authorized capital Paper Subject Code: 77705 Accountancy and Financial Management IV
9. Q8 Capital Redemption Reserve can be utilized for
   • a. Payment of dividend
   • b. Issue of right shares
   • c. Issue of fully paid bonus shares
   • d. Setting off against losses
10. Q9 The redemption amount remaining unpaid to preference shareholders is shown in the balance sheet as
    • a. Current liabilities
    • b. Loan
    • c. Share capital
    • d. Contingent liabilities
11. Q10 The claim of debenture holders on redemption is credited to
    • a. Cash/Bank A/c
    • b. Sinking Fund A/c
    • c. Debenture holders A/c
    • d. None of the above
12. Q11 The excess of consideration paid over net value of assets taken over is called
    • a. Security premium
    • b. Goodwill
    • c. Capital reserve
    • d. None of the above
13. Q12 Profit prior to incorporation is available for payment of
    • a. Dividend
    • b. Interest on debentures
    • d. None of the above
14. Q1 B] State whether the following statements are true or false: (Any Ten)
15. Q1 Authorized capital is disclosed only for information
16. Q2 The shares of all companies are listed on the stock exchanges
17. Q3 Participating Preference shareholders can participate and vote on all matters affecting the
18. Q4 Debenture capital is called as debt capital
19. Q5 In case of redemption of debentures, creation of Debenture Redemption Reserve is optional to the Company
20. Q6 Capital Reserve and Reserve Capital are one and the same
21. Q7 Issue of bonus shares results in conversion of profit into share capital
22. Q8 Premium on redemption of preference shares is adjusted out of profits
23. Q9 Depreciation on delivery van is allocated in sales ratio
24. Q10 After redemption of debentures, balance in Debenture Redemption Reserve is transferred to General Reserve account
25. Q11 The assets offered as security are released after redemption of debentures
26. Q12 Profit prior to incorporation is transferred to General Reserve Paper Subject Code: 77705 Accountancy and Financial Management IV
27. Q2 Sampurna Co. Ltd was incorporated on May 2018 to take over the business of M/s Apurna, as going concern from 1“ January 2018. The Profit and Loss Account for the year ending December 2018 was as follows: To Administrative Salaries and expenses 25 500 To Selling Expenses 5,000 To Directors Fees 12,000 To Carriage Outward 12,960 To Audit Fees 6,000 To Electricity Charges 1,260 To Interest on Debentures 19,800 To Net Profit 1,00,000
28. Q1 Sales for each month from September 2018 to December 2018 were double the monthly sales from January 2018 to August 2018
29. Q2 Audit fees are for the entire period
30. Q3 Rent was increased from Rs.500 p.m. to Rs.1,000 p.m. with effect from 1“ August 2018 You are required to prepare statement of Profit and Loss, allocating the income and expenses on suitable basis between Pre and post incorporation periods
31. Q2 Fida Pvt. Ltd. was incorporated on August 2018. This company agreed to take over business of Ada & Co. as going concern with effect from 1* April 2018 The Profit and Loss Account for the year ended March 2019 is given below: To Administrative staff salaries 1,68,000 | By Gross Profit 6,00,000 To Electricity Charges 30,000 To Bad Debts 5,000 To Commission on Sales 33 000 To Preliminary w/off 7,000 To Interest on Debentures 3,000 To Interest on Purchase Consideration 6,000 To Net Profit 1,67,000
32. Q1 Sales for pre-incorporation period were which were 1/3 of the total sales
33. Q2 Rent from August 2018 was increased by p.m
34. Q3 Salaries to administrative staff was increased by p.m., w.ef. 1 August 2018
35. Q4 Bad Debts are from the debtors relating to the month of March 2018
36. Q5 Purchase Consideration was paid on 30" September 2018 Paper Subject Code: 77705 Accountancy and Financial Management IV Prepare Statement showing Profit and Loss for the year ended 31st March 2019 appropriating all income and expenditure items between Pre-incorporation and Post incorporation period on
37. Q3 Following is the Balance Sheet of Diamond Ltd. as on 31* March 2019: 20,000; 8% Preference Shares of | | Fixed Assets 37,00,000 each fully paid Investments 14,00,000 each fully paid Current Assets 26,70,000 8% Preference Shares are due for redemption on March 2019 at premium of per share. The company sold investments at market value. The Company decided to utilize available sources to full extent for redemption purpose. The Preference Shares were redeemed on the due date. The payment was made to all preference shareholders except one shareholder holding 800 preference shares who could not be traced Pass journal entries in the books of Diamond Ltd. to record the above transactions and prepare Balance Sheet of the Company after redemption of Preference Shares
38. Q3 Following is the summarised Balance Sheet of Soham Ltd. as on March 2019: 12% Preference Shares of Fixed Assets 28 each, paid 24,00,000 | Bank 27 Equity shares of each fully Other Current Assets 13,00,000 The Preference Shares are to be redeemed at 10% premium, for this purpose the Company made the final call and all call money was duly received On 1* April 2019 a fresh issue of Equity Shares of = 10 each was made at 10% premium to the minimum extent as required under the Companies Act for the purpose of redemption of On 1* October 2019, Bonus shares were issued at par at the rate of one share for every two shares held on the same date Pass journal entries in the books of Soham Ltd. to record the above transactions Paper Subject Code: 77705 Accountancy and Financial Management IV Prudence Ltd. redeemed 12% Debentures at a premium of 5% fully out of profit on 30" Sept. 2018. The company had a Debenture Redemption Reserve of = 10,00,000. For the purpose of redemption of debentures, apart from creating Debenture Redemption Reserve the Company complied with the necessary statutory provisions in such a manner so as to utilize the funds of the company to the minimum possible extent. Pass necessary journal entries for the redemption of debentures
39. Q4 Pass necessary journal entries for the following independent transactions:
40. Q1 9%, 8,000 Debentures of each due for redemption at 10% premium
41. Q2 Money paid off to Preference shareholders for 11%, 30,000 Preference shares of each due for redemption at 5% premium
42. Q3 25,000 fully paid Bonus shares of 10 each issued out of Capital Redemption Reserve
43. Q4 Investment made of in pursuant to statutory compliance of Redemption
44. Q5 Premium on Redemption of Preference Shares written off
45. Q6 Debenture Redemption Reserve 00,000 transferred to General Reserve
46. Q7 Money received in full out of fresh issue of 50,000 Equity Shares of 10 each at premium per share for the purpose of Redemption of Preference Shares
47. Q5 Following is the summarised Balance Sheet of Sunshine Ltd. as on March 2019: 1,00,000 Equity Shares of Rs.10 each | 10,00,000 | Investments 1,00,000 10,000; 9% Redeemable Preference Cash at bank 1,20,000 Shares of Rs. 100 each 10,00,000 | Other Current Assets 5,80,000 Issued and Paid up Capital: 50,000 Equity shares of Rs.10 each Shares of Rs.100 each fully paid On 1* April 2019 the Company sold part of its investments at 000 at 10% loss. Further the Company decided to:
48. Q1 Redeem the Preference Shares at premium of 5%
49. Q2 Issue Equity Shares of 10 each at par to the extent it is required under the Companies Act for the purpose of redemption of Preference Shares
50. Q3 Arrange Temporary Bank Overdraft to manage the funds if required Paper Subject Code: 77705 Accountancy and Financial Management IV You are required to:
    • a. Show necessary Journal entries in the books of Sunshine Ltd. to record the above transactions
51. Q5 A. On December 2018 Plasto-craft Ltd. redeemed 5,000, 9% debentures of = 100 each by converting them into equity shares of each at a premium of per share. On the same date the company also redeemed 2,500, 12% debentures of 100 each in cash Company complied with the necessary statutory provisions in such a manner so as to utilize profits and funds of the company to the minimum possible extent. Give the necessary
52. Q5 B. Calculate the profits prior to and post incorporation from the following details: Majestic Ltd. was formed on August 2018 to take over the business of a partnership firm from 1* April 2018. Sales from 1“ April 2018 to 31“ July 2018 were 6,00,000 and sales from August 2018 to October 2018 were = 11,00,000. Sales from November 2018 to March 2019 were = 13,00,000. Gross profit for the year was = 6,93,000. Total fixed expenses for the year were and total expenses relating to sales were 2,40,000 Directors' Fees amounted to and Auditor's Remuneration for full year was = 24,000 which include = 6,000, charged for consultancy with respect to formation of
53. Q6 A. What is Employee Stock Option Plan? Explain the legal provisions governing it
54. Q6 B. Distinguish between Shares and Debentures
55. Q6 Write Short notes (Attempt any FOUR):
56. Q1 ESCROW Account
57. Q2 Bonus Shares
58. Q6 Profit Prior to Incorporation Paper Subject Code: 77705 Accountancy and Financial Management IV
    • A) are wala Paper Subject Code: 77705 Accountancy and Financial Management IV
    • a) ara
59. Q2 & Herd
60. Q3 ad Paper Subject Code: 77705 Accountancy and Financial Management IV
61. Q2 fe Paper Subject Code: 77705 Accountancy and Financial Management IV
    • G. fe. 30 Bal Paper Subject Code: 77705 Accountancy and Financial Management IV
62. Q3 3% ATS 2028 fe Paper Subject Code: 77705 Accountancy and Financial Management IV

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