Karnataka State Open University (KSOU) 2009-2nd Year B.Com __ _FA-II Sim - Question Paper
Illlllllllllllll C 201
Second Year B.Com. Examination, May/June 2009
(SIM Scheme)
FINANCIAL ACCOUNTING - II
Date : 30-5-2009
Date : 2.00 p.m. to 5.00 p.m. Max. Marks : 80
PART - A
Answer any two questions. Each question carries 20 marks.
I. X Co. Ltd. offered for public subscription 40000 equity shares of Rs.100 each at a premium of Rs. 20 per share, payable as under :
Rs. 25 per share on application.
Rs. 50 per share on allotment (including premium).
Rs. 25 per share on first call.
Rs. 20 per share on final call.
Applications were received for 60000 shares. The shares were allotted on pro-rata to the applicants of 50000 shares. The remaining applications for shares being rejected and money was refunded. Balance of excess application money was utilised towards sums due on allotment.
Mr. A to whom 3000 shares were allotted failed to pay the two calls and Mr. B to whom 2000 shares were allotted failed to pay the final call. Their shares were subsequently forfeited. All the forfeited shares were re-issued to Mr. C @ Rs.80/- per share as fully paid.
Pass the necessary journal entries in the books of the company and show how capital will appear in the balance sheet. P.T..
2. The following is the Trial Balance of Akash Co. Ltd. as on 31-12-2007. Prepare Final Accounts of the Co. as per Companies Act.
|
Dr. |
Cr. | |
|
Rs. |
Rs. | |
|
Sales |
- |
5,00,000 |
|
Commission |
1,500 |
3,450 |
|
Purchases |
2,60,000 |
- |
|
Interest |
- |
4,295 |
|
Carriage |
450 |
- |
|
Share Capital |
- |
3,00,000 |
|
(30000 shares of Rs. 10) | ||
|
General reserve |
- |
97,500 |
|
Share premium |
- |
27,500 |
|
Profit and Loss A/c |
- |
9,116 |
|
Unclaimed Dividends |
- |
3,000 |
|
Buildings |
1,00,000 |
- |
|
Wages |
1,50,000 |
- |
|
Salaries |
13,000 |
- |
|
Other Expenses |
15,500 |
- |
|
Preliminary expenses |
1,947 |
- |
|
Machinery |
95,000 |
- |
|
Motor vehicles |
17,000 |
- |
|
Furniture |
3,500 |
- |
|
Stock |
85,000 |
- |
|
Debtors and Creditors |
1,11,500 |
68,000 |
|
B/R |
45,000 |
- |
|
Goodwill |
30,000 |
- |
|
Cash |
11,000 |
- |
|
Interim Dividends |
7,000 |
- |
|
Directors fees |
1,020 |
- |
|
Provident fund |
- |
35,750 |
|
Investments |
1,44,694 |
- |
|
Debentures |
- |
44,500 |
Adjustments :
1. Closing stock Rs.14,000.
2. Provide for R.B.D. at 5%.
3. Transfer Rs. 2,250 to general reserve.
4. Salaries and wages outstanding Rs. 400 and Rs. 750 respectively.
5. Proposed dividend 5%.
6. Write off Rs. 447 from preliminary expenses.
3. A Ltd and B Ltd carrying on similar business, decided to amalgamate and for this purpose AB Co. Ltd. a new Co., being formed to take over assets and liabilities of both the Co.s and it is agreed that, fully paid shares of Rs. 100 each shall be issued by the new Co. to the value of the net assets of each of the old companies :
Balance Sheets as on 31-3-2007
|
Liabilities |
A Ltd. |
B Ltd. |
Assets |
A Ltd. |
B Ltd. |
|
Share Capital | |||||
|
of Rs. 50 each |
50,000 |
40,000 |
Goodwill |
5,000 |
2,000 |
|
General reserve |
20,000 |
- |
Building |
17,000 |
10,000 |
|
Profit & Loss A/C |
3,000 |
- |
Machinery |
24,000 |
16,000 |
|
Creditors |
4,000 |
8,000 |
Debtors |
12,000 |
7,000 |
|
B/P |
4,000 |
- |
Stock |
10,000 |
7,500 |
|
Bank O.D. |
- |
8,000 |
Furniture Cash P&L A/c |
5.000 8.000 |
7,500 300 5,700 |
The following is the accepted scheme of valuation of the business of the two companies :
A Ltd. : a) To write off Rs. 400 from stock.
b) To provide reserves for doubtful debts @5% on debtors.
c) To write off 33 % from machinery.
B Ltd. : a) To write down machinery @10%.
b) To write off Rs. 1,400 from the value of stock.
c) To eliminate its Goodwill and Profit and Loss A/c balance.
d) To write off bad debts to the amount of Rs. 1,000 and to provide reserve of 5% on the balance of debtors.
Compute Purchase consideration and prepare amalgamated Balance Sheet of AB Co. Ltd.
4. Following is the Balance Sheet of Ganga Ltd. as on 31-3-2007.
|
Liabilities |
Rs. |
Assets |
Rs. |
|
Share Capital : |
Goodwill |
40,000 | |
|
50000 E. Shares of |
Machinery |
3,40,000 | |
|
Rs.10 each |
5,00,000 |
Buildings |
1,20,000 |
|
General Reserve |
50,000 |
Investments |
50,000 |
|
P/L A/c |
50,000 |
Stock |
80,000 |
|
8% Debentures |
1,00,000 |
Debtors |
1,20,000 |
|
Creditors |
1,00,000 |
Cash at Bank |
30,000 |
|
Preliminary Expenses |
20,000 | ||
|
8,00,000 |
8,00,000 |
On 31-3-2007, Goodwill was valued at Rs. 55,000 and Building at Rs. 1,60,000, Machinery is to be depreciated by Rs. 20,000, Stock was worth Rs. 90,000, Debtors are expected to realise Rs. 1,00,000.
The net profit earned by the company amounted to Rs. 60,000 in 2004-2005,
Rs. 40,000 in 2005-2006 and Rs. 50,000 in 2006-07. Every year 20% of profit earned was transferred to general reserve. A return of 10% on the investments is considered fair in the industry.
Compute the fair value of companys Share.
PART - B
Answer any two questions. Each question carries 10 marks.
5. Define Company. Explain the essential features of a company.
6. What is under writing ? Explain the terms.
a) Marked applications and
b) Firm under writing.
7. From the following details find out the value of Goodwill :
a) By Super Profit method.
b) By Capitalisation method.
Capital employed Rs. 3,00,000 Normal rate of profit 10%
Net profit for 5 years Rs. 29,000, Rs. 31,000, Rs. 33,000, Rs. 35,000 and Rs. 36,000, Goodwill is 5 years purchase of Super Profit.
8. On 1-1-2007 A Ltd. issued 800, 5% Debentures of Rs. 1,000 each at Rs. 950 each. Debenture holders had an option to convert their holdings into 6% preference shares of Rs. 100 each at a premium of Rs. 25 per share.
On 31-12-2007 one years interest had accrued on these debentures, which was not paid. A holder of 50 Debentures, notified his intention to convert his holding into 6% preference shares.
Journalise the above transactions and draw the companys Balance Sheet as at 31-12-2007.
PART - C
Answer any four questions. Each questions carries 5 marks.
9. What do you mean by calls in advance ?
10. Distinguish between internal reconstruction and external reconstruction.
11. List out preferential creditors under Companies Act.
12. What is Minority and Majority interest ? How are they treated in holding Cos A/c ?
13. What is Rights issue?
14. State the provisions for issue of Bonus shares.
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(eta. 50d dedDWD) 50,000 40,000 DsdD 5,000 2,000
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|
ds/d sd |
3,000 |
bod,rtb |
24,000 |
16,000 | |
|
4,000 |
8,000 |
Wbrtb |
12,000 |
7,000 | |
|
3ddessd dbos |
4,000 |
dbrtb |
10,000 |
7,500 | |
|
mos* bedd a |
8,000 |
&ededdra |
5,000 |
7,500 | |
|
rtdb |
8,000 |
300 | |||
|
ds/d sd cJ |
5,700 | ||||
|
81,000 |
56,000 |
81,000 |
56,000 |
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|
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|
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|
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|
50,000 |
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1,20,000 |
|
50,000 |
dsrtb |
50,000 |
|
1,00,000 |
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80,000 |
|
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Wbrtb |
1,20,000 |
|
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30,000 | |
|
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20,000 |
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|
Attachment: |
| Earning: Approval pending. |
