BCom TY BCom Sem 5 BCom Sem 5 (2018 2019) May 2019 Financial Accounting Auditing Paper V Financial Accounting Question Paper - Mumbai University | munotes

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1. Q3 Working notes should form part of your answer
2. Q1 <A) Rewrite and state whether the following statements are true or false. (Any Eight) 8 marks
3. Q1 Two or more companies combining to form new company ts called as absorption
4. Q2 Calls unpaid are added back to Authorized share capital in the Balance Sheet
5. Q3 In the scheme of capital reduction amount of shares surrendered
6. Q4 Capital Reserve arises only when amalgamation is in the nature of merger
7. Q5 Sundry debtors are classified as small scale industries and others
8. Q6 Incase of amalgamation there are two or more liquidation and one formation
9. Q7 Nominal value column in the Investment Account is only memorandum column
10. Q8 Amounts given up by shareholders in a scheme of internal. reconstruction are credited to Capital Reserve A/c
11. Q9 Amount paid on forfeited shares is added to paid-up capital in the Balance Sheet 10.In computing purchase consideration by net assets method all assets including fictitious assets should be considered Match the following columns (Any Seven) (07)
12. Q2 Following Trial Balance is available from the books of “Magnum Ltd” as on March, Land and Building (Cost) 4,00,000 | 8,000 equity shares of Rs. 100 Furniture (Cost) 50,000 | Profit and Loss A/c 25,000 Investment in shares of ‘Good 1,38,800 | Capital Reserve 20,000 Sundry Debtors 55,000 | 8% Debentures of Rs. 100 1,20,000 Cash in hand 17,500 | Income Received from 5,500 Cash at Bank 43,000 |. Provision for Depreciation 15 marks
13. Q1 Authorized share capital of the company is divided into 10,000 equity shares of Rs
14. Q2 Provide depreciation on Land and Building, Plant and Machinery and Furniture @ 5%, 20% and 10% respectively on Written Down Value method
15. Q3 Provide for Income Tax @ 50%
16. Q4 Debtors include debtors amounting to due for more than six months Form the above Trial Balance and Additional information prepare statement of Profit and Loss for the year ended March 2018 and Balance Sheet as on that date in prescribed format as per schedule II of the companies Act
17. Q2 Amazon Ltd., a newly formed company acquired the business of Nile Ltd. As on 31/03/2018. The summary Balance Sheet of Nile Ltd. As on even date was as under: Equity shares of Rs. 10 each | Goodwill 40,000 Terms and conditions: 15 marks
18. Q1 Amazon Ltd. Issued 50,000 equity shares of Rs. 10 each at Rs. 12 per share
19. Q2 Amazon Ltd. Paid Rs. 4 in cash for each share of Nile Ltd
20. Q3 Amazon Ltd. Discharged 12% Debentures of Nile Ltd. At 10% premium by issue of 15% debentures at a discount of 12%
21. Q5 Amazon Ltd. Revalued Land and Building at Rs. 2,00,000 Plant at 10% below book value, Stock at Rs. 70,000 and Debtors with a provision of 5% RDD
22. Q6 Nile Ltd. Sold 20% of the shares received from Amazon Ltd. At Rs. 13 per share
23. Q7 Amazon Ltd. Issued 20,000 equity shares of Rs. 10 each at Rs. 12 each to the public The issue was entirely subscribed and paid for
24. Q8 Export Profit Reserve is to be kept for next two years You are required to: in Amazon Ltd. A/c and Bank A/c in the books of Nile Sheet not
25. Q3 Following information is extracted from the books of “Weldone Ltd” as on March 15 marks
26. Q1 Stock on 31% March 2017 were:
27. Q2 Audit fee includes Rs. 1,700/- paid for Taxation work
28. Q3 Insurance premium includes Rs. 200/- premium paid for F. Y. 2017-18
29. Q4 Staff salary includes advance salary of Rs. 6,000/- pertaining to F. Y. 2017-18
30. Q5 Provide for Income Tax @ 50% on Net Profit From the above information you are required to prepare statement of Profit and Loss for the year ended 31“ March 2017 as per the provision of the companies Act
31. Q3 A) The position of Vedanta Ltd. on 31 March,2019 was as follows: 30,000 Equity Shares of Rs. 100 each - Rs. 30,00,000 10,000 6% Debentures of Rs. 100 each - Rs. 10,00,000 Interest payable on above debentures - Rs. 1,20,000 There are no other liabilities and reserves An independent valuation of the assets on the above date was considered to be worth Rs. 20,00,000 only. Hence, the following steps were taken with the approval of all 8 marks
32. Q1 The face value of the share was to reduce to Rs. 40 each, Rs. 20 per share paid up
33. Q2 The total claim of debenture holders was Rs. 5,00,000
34. Q3 The debenture holders agreed to accept shares of Rs. 2,50,000 (Rs. 20 per share paid up) in part satisfaction of their clatm as referred to above and for the balance, they were allotted 8% debentures
35. Q4 Assets were brought down to their revised value
36. Q5 All shareholders (including (3) above) agreed to pay Rs. 20 per share to make the You are required to pass the journal entries in the books of the company to record the above transactions
37. Q3 B) On 1* April 2018 Mr. Shyam held 2,500 fully paid Equity Shares of Rs. 100 each in Shivkumar Ltd. at a book value of per share. On 20" June 2018 he purchased another 500 shares of the company at Rs. 160 per share. Shivkumar Ltd. Announced Bonus issue and a Right issue, the following being the terms 7 marks
38. Q1 Bonus issue in the ratio of 1 : 6 [Record date 16" August 2018]
39. Q2 Right issue in the ratio of 7 [Record date August 2018] The Right Shares were issued at Rs. 150 per share and the full amount was payable by 30" September 2018. The shareholders were entitled to transfer their rights in full or in part. Mr. Shyam subscribed all right shares Prepare Investment Account in the books of Mr. Shyam
40. Q4 Following are the summary Balance Sheet as on 31/03/2018 of Nana Ltd. And Anna Ltd. Equity share 4,00,000 2,40,000 | Land and Building | 1,40,000 15% Debentures 80,000 Plant and | 2,00,000 15 marks
41. Q1 The two companies agree to amalgamate and form a new company M/s Bandhu Ltd which takes over the assets and liabilities of both the companies
42. Q2 The authorized capital of Bandhu Ltd. is Rs. 40,00,000 consisting of 4,00,000 Equity Shares of Rs. 10 each
43. Q3 The assets of Nana Ltd. are taken over at 90% of the book value with the exception of Land and Building which are taken at book value
44. Q4 Goodwill is to be valued at 10% of Net assets of both the companies
45. Q5 The purchase consideration is to be satisfied by Bandhu Ltd. in its fully paid shares
46. Q6 In exchange of Debentures of Nana Ltd. Debentures of the same amount and denomination are to be issued by Bandhu Ltd
47. Q1 Calculate purchase consideration and discharge of li) Prepare Realisation A/c, Bandhu Ltd. A/c, Equity Shareholders A/c in the books of Nana Ltd. and Anna Ltd. (Balance Sheet not required)
48. Q4 A) Mr. Chanakya had 15% Debentures of face value Rs. 100 of M/S Chatursing Ltd. He provides the following details relating to the Investments 01/04/2018: Opening Balance 2000 debentures costing Rs. 98 each Interest due dates are 30" June and December every year Show investment Account in the books of Mr. Chanakya for the year ending Inthe books of M & M Ltd. of Mumbai, (07) 8 marks
49. Q1 The preference dividend were in arrears for Rs. 50,000. For every Rs. accumulated arrears of preference dividend, one equity share of Rs. 3 each issued 10 marks
50. Q2 The preference dividend were in arrears for Rs. 80,000. Arrears of preference dividend are cancelled 3), The directors were to refund Rs. 85,000 fees, they had received earlier
51. Q4 The other current liabilities include Rs. 15,000 payable to directors towards remuneration are to be cancelled
52. Q5 Claims for damages are pending in the court totaling Rs. 60,000. The contingent liability for claim for damages pending in the court of law materialized to full extent However, the company could recover Rs. 10,000 from those who were responsible for such damages
53. Q6 There was a contingent liability of Rs. 20,000 for workmen compensation Contingent liability for which no provision had been made was settled at Rs. 22,000, however, the amount of Rs. 15,000 was recovered from the Insurance Company You are required to pass journal entries to record the reconstruction scheme transactions
54. Q5 A) What is the need of Internal Reconstruction? 8 marks
    • B) Explain the different types of Investments. 7
55. Q5 Write short notes (Any Three) 15 marks
56. Q2 Methods of purchase consideration
57. Q3 eft
58. Q3 40% AT
59. Q2 FIT
60. Q2 fth AT
    • (3) Wet
61. Q2 AMT

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