BCom TY BCom Sem 6 2022 2023 Apr 2023 FINANCIAL ACCOUNTING AND AUDITING IX FINANCIAL ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

• (2) Figures to the right indicate full marks

1. Q1 (A) Select the correct options for the given choice (Any Ten) 10 marks
2. Q1 A Limited Liability Partnership is governed by
   • a) Partnership Act 1932
   • b) Companies Act, 2013
3. Q2 According to SEBI Regulations, if the subscription is not at Least of the offer amount, all the application money needs to be refunded
4. Q3 Mahesh Limited issued shares at a Face Value of Rs 100 with a premium of Rs 10 per share. The underwriting commission will be calculated on
5. Q4 Rate of Exchange at the Balance Sheet date is called
   • a) Average Rate
   • b) Closing Rate
   • c) Reporting Rate
   • d) Monetary Rate
6. Q5 Audit requirement in case of Limited Liability Partnership is only when the contribution exceeds Rs 25 Lakh or the turnover exceed Rs
   • d) 10 Crores
7. Q6 Assets specifically pledged are placed in ___ to the Statement of Affairs
   • a) List D
   • b) List C
   • d) List E
8. Q7 is used in presenting financial statement
   • a) Bitcoin Currency
   • b) Foreign Currency
   • c) Reporting Currency
   • d) Digital Currency Paper Subject Code: 83001 Financial Accounting and Auditing IX -Financial Accounting
9. Q8 is not a Preferential Creditor
   • a) Expenses in investigation
   • b) Salary & Wages
   • c) Government Dues
   • d) Unsecured Creditors
10. Q9 Accounting for Amalgamation is governed by
    • a) AS2
    • b) AS9
    • d) AS 14
11. Q10 Application forms bearing Stamp with the respective underwriter are called as
    • a) ESOP application
    • b) Unmarked application
    • c) Proprietary application
    • d) Marked application
12. Q11 If the business of an existing company Modern Ltd is taken over by an existing company Ultra Modern Ltd, it is called
    • a) Absorption
    • b) Amalgamation
    • c) External reconstruction
    • d) Internal reconstruction
13. Q12 A person can act as underwriter only if he hold a certificate granted by
    • a) Registrar of Company
    • d) Registrar of Firm
14. Q1 (B) State Whether the following statements are True or False (Any Ten) 10 marks
15. Q1 Amalgamation Adjustment Account is prepared to record the Capital Reserve in Transferee company
16. Q2 Underwriters are not required to subscribe the shares of firm underwriting
17. Q3 When all the shares are underwritten by the underwriters, it is called partial underwriting
18. Q4 Debtors, Bills Receivable and Cash are the examples of non-Monetary items
19. Q5 In Liquidation of Company, List H indicates Surplus/ Deficit
20. Q6 Exchange Rate prevailing on Settlement date is termed as Average Rate
21. Q7 In Amalgamation, Fictitious Assets should be transferred to Realisation Account to close the
22. Q8 “Pooling of interest method” is a method of Accounting for Amalgamation
23. Q9 As per Companies Act 2013, the commission payable to underwriter for underwriting of shares should not exceed 5%
24. Q10 LLP should have minimum 50 partners
25. Q11 On Liquidation of company, Preferential creditors should be settled before the payment of unsecured
26. Q12 Inventory is termed as non-monetary item Paper Subject Code: 83001 Financial Accounting and Auditing IX -Financial Accounting
27. Q2 (A) The Balance Sheet of Bhanu Ltd and Aakash Ltd are as under. As on 31* March 2023 Share Capital (Rs.10 6,00,000 8,00,000 } Land and Building | 8,00,000| 7,00,000 Profit and Loss Account 1,25,000 | Sundry Debtors Bhanu Ltd purchases Aakash Ltd w.e.f April 2023 with the following terms and conditions 20 marks
    • a) Bhanu Ltd takes over all assets and liabilities of Akash Ltd at book values with the following Land and building Rs. 10,00,000 Plant and Machinery Rs. 3,50,000
    • b) Purchase consideration is discharged by issue of Equity Shares of Rs. 10 each at a premium of Rs 10
    • c) Debentures of Aakash Ltd to be converted to equivalent number of 10% debentures of Bhanu Ltd of
    • d) Statutory Reserves is to be maintained for 4 more years Prepare Ledger Account to close the books of Aakash Ltd and show opening journal entries in the books
28. Q2 (B) On 1* August, 2021, Abhinav Ltd. an Indian Importer, purchased $ 2,00,000 worth of goods from DELL INC of USA @ per $. (10) The payment for import was made as follows: On September, 2021 - $ 60,000 @ Rs. 79 per $ On 26" October, 2021 - $ 80,000 @ Rs. 76 per $ On December, 2021 - $ 40,000 @ Rs. 78 per $ On 18" January, 2022 - $ 20,000 @ Rs. 75 per $ Abhinav Ltd. closes its books on March every year Prepare DELL INC of USA A/c and Foreign Exchange Fluctuation A/c in the books of Abhinav Ltd Paper Subject Code: 83001 Financial Accounting and Auditing IX -Financial Accounting
29. Q2 (C) Amar Ltd. went into liquidation on December, 2022 when its Balance Sheet was as Preference shares of Rs. 10 The assets realised as follows: Land and Building Rs. 4,50,000; Plant and Machinery and Trademarks Rs. 17,25,000; Stock and Sundry The expenses of liquidation amounted to Rs. 27,250. The liquidator is entitled to a commission of 3% on assets realised except cash. Assuming, the final payments including those on debentures were made on December, 2022, show the Liquidators Final Statement of Accounts
30. Q3 (A) Prashant and Roshni are partners in M/s. Carpenterwala LLP sharing profits and losses in the ratio 2:3. Following is their Trial Balance an on 31-3-2023. (20) Paper Subject Code: 83001 Financial Accounting and Auditing IX -Financial Accounting
    • i. Goods worth Rs. 6,000 taken over by Prashant for personal use were not entered in the books of li. the cost price of closing stock was Rs. 30,000 and its market price was Rs. 28,000 Provide Rs. 1,500 for Reserve for doubtful debts on debtors
    • iv. Outstanding expenses as on 31st March 2023: Rent Rs. 2,500 and Manager's Remuneration
    • v. Provide depreciation @ 10% p.a. on Motor Car and @5% p.a. on Laptop
    • vi. Goods worth Rs.12,000 were destroyed by fire and Insurance Co. agreed to pay Rs. 10,000 in full settlement of the claim You are required to prepare Profit and Loss Account for the year ending 31-3-2023 and the Balance Sheet as on that date after considering the above adjustments
31. Q3 (B) Maruti Ltd issued 1,00,000 Equity Shares of Rs. 25 each at a premium of Rs.10 each. The entire issue was underwritten as follows (10) Applications received for 90,000 shares; the following are the marked applications including firm Calculate the Net Liability of each underwriter when the benefit of firm underwriting is given
32. Q3 (C) Manas Ltd. exported goods to Shepherd Inc. of Canada worth $ 10,00,000 on 5" January, 2021 when the exchange rate was Rs. 68 per US (10) The amount was received in instalments as follows: Manas Ltd. closes its books on 31*t March every year when the exchange rate was Rs. 65 per US $ You are required to pass journal entries in the books of Manas Ltd. for the years ended on March, Paper Subject Code: 83001 Financial Accounting and Auditing IX -Financial Accounting
    • (A) Lost Life Ltd. went into liquidation on 1“ April, 2022 when its Balance Sheet was as follows: 3,000 Equity shares of Rs. 100 3,00,000 | Machinery 1,65 000 14% Debentures (Secured by 1,50,000 | Stock 2,60 Note: Preference Dividend was in arrears for one year The assets realised as follows: Stock and Debtors Rs. NIL The expenses of liquidation amounted to Rs. 12,500. The liquidator is entitled to a remuneration of 1% on assets realised except cash. Assuming, the final payments including those on debentures were made on December, 2022, show the Liquidators Final Statement of Accounts
33. Q4 (B) Prem Ltd. issued prospectus inviting applications for 80,000 equity shares of Rs.10 each at par The whole issue was fully underwritten as follows: Hemant - 40,000 shares: Jayant - 30,000 shares; and Chhaya - 10,000 shares. Applications were received for 76,000 shares which also included marked applications as follows: Hemant - 27,000 shares; Jayant - 18,000 shares, and Chhaya- 15,000 shares Unmarked applications are to be distributed amongst the underwriters in the ratio of their gross liability Prepare a statement to determine the net liability of the underwriters. (10) Ishan and Amol are partners in M/s. Glassdoor LLP sharing Profits and Losses equally From the following Trial Balance of the LLP, prepare Balance Sheet of the LLP as at 31st March, 2023 Stock as on Prepaid Advertisement for Investment in Equity Cash at Bank with HDFC Paper Subject Code: 83001 Financial Accounting and Auditing IX -Financial Accounting
34. Q4 (D) Following is the Balance Sheet of Maharaja Ltd as on 31st March 2023. Equity Share Capital (Rs 10 each) 10,00,000 | Land and Building 14,60,000 4,00,000 | Plant and Machinery Profit and Loss Account 2,40,000 2,25,000 Bills Payable | Cash and Bank Chakravarti Ltd is formed with an authorised capital of 6,00,000 Equity Shares of Rs. 10 each to take over all the assets and liabilities of Maharaja Ltd with the following terms and conditions 10 marks
    • a) The assets are to be taken over at 10% more than the book values
    • b) Goodwill of Maharaja Ltd is valued at Rs
    • c) Cost of formation of New Company amounted to Rs. 38,000
    • d) Debentures of Maharaja Ltd is to be converted into equivalent number of Debentures of Chakravarti
    • e) The purchase consideration is discharged by issue of Equity Shares of Rs. 10 each Find out the purchase consideration
35. Q5 (A) Explain statement of affairs in liquidation of company. 10 marks
36. Q5 (B) Explain benefits of Limited Liability Partnership. 10 marks
37. Q5 (C) Write Short Notes (Any Four) 20 marks
38. Q1 Purchase Consideration
39. Q2 Spot rate and Closing rate in Foreign Currency Transactions
40. Q3 Liquidators Final Statement of Account
41. Q4 Underwriting of shares
42. Q5 Amalgamation and Absorption
43. Q6 Monetary Items Paper Subject Code: 83001 Financial Accounting and Auditing IX -Financial Accounting
    • N.B. (2) TH
44. Q3 & 200 TAT 8 o SIRT Paper Subject Code: 83001 Financial Accounting and Auditing IX -Financial Accounting
    • S) AS
45. Q10 aT SBC
    • a) st Paper Subject Code: 83001 Financial Accounting and Auditing IX -Financial Accounting
46. Q3 deer caren H ( List H) AT SAT (“Pooling of interest method”) Cara Tad Bre Paper Subject Code: 83001 Financial Accounting and Auditing IX -Financial Accounting
    • S) ay Paper Subject Code: 83001 Financial Accounting and Auditing IX -Financial Accounting

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