Karnataka State Open University (KSOU) 2009-2nd Year B.Com __ _FA-II - Question Paper
Illlllllllllllll C 211
Second Year B.Com. Examination, May/June 2009 DE (Revised SIM Scheme) FINANCIAL ACCOUNTING - II
Date : 30-5-2009
Time : 2.00 p.m. to 5.00 p.m.
Max. Marks : 90
PART - A
Answer any three questions. Each question carries 15 marks.
1. A company with an authorised capital of Rs. 10,00,000 divided into equity shares of 10 each issued 70,000 shares for public subscription, payable as to Rs. 3 per share on application, Rs. 3 on allotment and the balance in two calls of equal amount.
Applications were received by the company for 1,00,000 shares. Refund of application was made on 10,000 shares and the balance of applicants were allotted pro-rata, the excess application money being adjusted towards amount due on allotment.
All the moneys were received as and when due except the following:
Allotment money and both the calls from Harsha to whom 140 shares were allotted.
Both the calls from Suresh on 100 shares. The directors of the company forfeited all the above shares and reissued to Rajesh for Rs. 8 per share as fully paidup.
Pass Journal entries and show Balance Sheet.
2. The following is the trial balance of Bright Ltd., as on 31-12-07. Prepare Final Accounts in statutory form.
Trial Balance
Cr.
Rs.
10,00,000
Dr.
Rs.
1,50,000
40.000 2,450
34,500
13.000
Capital
5% Debentures Profit and Loss Account Unclaimed dividend Bills Payable Capital Reserve
Share transfer fees - 1,000
Creditors - 80,000
Sales - 5,00,000
Returns outwards - 9,000
General Reserve - 52,200
Returns Inwards 4,000 -
Debenture Interest 3,750 -
Bad debts 3,500 -
Salaries 29,760 -
General Expenses 44,910 -
Wages 1,35,280 -
Preliminary expenses 16,500 -
Purchases 2,70,000 -
Cash 71,700 -
Goodwill 48,000 -
Debtors 1,30,800 -
Furniture 10,500 -
Stock 1,12,250 -
Interim Dividend 51,200 -
Machinery 5,00,000 -
Buildings 4,50,000 -
18,82,150 18,82,150
Adjustments :
1. Stock on 31.12.2007 Rs. 1,60,000.
2. Proposed dividend 5%.
3. Transfer Rs.10,000 to general reserve.
4. Salaries outstanding Rs.1,240
5. Write off half of preliminary expenses.
Poornima Ltd., has agreed to acquire goodwill and assets (except investments and bank balance) of Divya Ltd. as at 31-12-2006. The Balance Sheet of Divya Ltd., as on that date is given below :
Liabilities Amount Assets Amount
32,000 Equity shares
of Rs. 20 each fully paid 6,40,000 Goodwill 80,000
General reserve 1,00,000 Land and Building 3,20,000
|
Profit & Loss A/c 7% Debentures Sundry Creditors Provision for taxation |
Plant and Machinery Investments 72.000 2.40.000 1.48.000 80.000 12,80,000 3.20.000 1.20.000 1,60,000 2,00,000 80,000 12,80,000 Stock Debtors Bank |
Poornima Ltd., will
a) Discharge the debentures of Divya Ltd., at a premium of 10% by the issue of 9% debentures in Porrnima Ltd.
b) Issue three shares of Rs. 20 each of Poornima Ltd., at a market value of Rs. 25 per share for every two shares in Divya Ltd.
c) Pay Rs. 3 in cash for each share in Divya Ltd.
d) Pay absorption expenses of Rs.15,000.
Divya Ltd. sells the investments for Rs.1,25,000. Poornima Ltd. values Land and buildings at Rs. 4,50,000, Plant and Machinery at 10% below bookvalue, Stock at Rs. 1,50,000 and debtors subject to 5% provision for bad debts.
Show a) Ledger Accounts in the books of Divya Ltd. b) Journal entries in the books of Poornima Ltd.
4. The following is the Balance Sheet of Badluck Co., Ltd., which went into liquidation on 31.03.2008.
|
Liabilities |
Rs. |
Assets |
Rs. |
|
Share Capital : |
Land and Buildings |
3,00,000 | |
|
4,000 8% Cumulative |
Plant and machinery |
5,00,000 | |
|
Preference shares of |
Motor vehicles |
3,20,000 | |
|
Rs.100 each |
4,00,000 |
Furniture |
80,000 |
|
5,000 Equity shares of |
Stock |
2,00,000 | |
|
Rs. 100 each fully paid |
5,00,000 |
Debtors |
1,60,000 |
|
3,000 Equity shares of |
Cash at Bank |
70,000 | |
|
Rs. 100 each, Rs. 80 paid |
2,40,000 |
Profit and Loss A/c |
2,70,000 |
|
9% Debentures |
3,00,000 |
Investments |
50,000 |
|
Creditors |
4,00,000 | ||
|
Bills Payable |
90,000 | ||
|
Bank overdraft |
20,000 | ||
|
19,50,000 |
19,50,000 |
The preference dividend were in arrears for 2 years. Creditors include a sum of Rs. 80,000 secured on building and preferential creditors of Rs. 30,000.
Assets realised as follows :
Land and Buildings 3,50,000
Plant and Machinery 4,20,000
Motor Vehicles 1,80,000
Furniture 50,000
Stock 2,00,000
Investments 70,000
Debtors 1,50,000
Expenses of liquidation amounted to Rs. 30,000. Legal expenses Rs. 6,000. The liquidator was entitled to a remuneration of 3% on all assets realised except cash at bank and 2% on payment to unsecured creditors. Assume that the payments
were made on 30.06.2008. Prepare the liquidators final statement of account.
5. The following are the Balance Sheets of H Ltd., and S Ltd., as on 31.12.2005.
|
Liabilities |
H Ltd. |
S Ltd. |
Assets |
H2 Ltd. |
S2 Ltd. |
|
Share Capital | |||||
|
Rs.10 shares |
5,00,000 |
2,00,000 |
Fixed Assets |
4,00,000 |
3,50,000 |
|
General Reserves |
Stock |
1,00,000 |
90,000 | ||
|
on 1.1.05 |
1,00,000 |
60,000 |
Debtors |
20,000 |
75,000 |
|
Profit & Loss A/c |
1,40,000 |
90,000 |
Investment in | ||
|
8% Debentures |
- |
1,00,000 |
shares of S Ltd. |
2,40,000 |
- |
|
Creditors |
80,000 |
50,000 |
8% Debentures | ||
|
B/P |
- |
20,000 |
in S Ltd., at cost |
30,000 |
- |
|
B/R |
15,000 |
- | |||
|
Cash at Bank |
15,000 |
5,000 | |||
|
8,20,000 |
5,20,000 |
8,20,000 |
5,20,000 |
H Ltd., acquired 1,500 shares of S Ltd., on 1st July 2005. The Profit and Loss Account of S Ltd., on 1.1.2005 was Rs. 50,000. Included in creditors of S Ltd., is Rs. 25,000 for goods supplied by H Ltd. Bills accepted by S Ltd. are all in favour of H Ltd., which has discounted Rs.10,000 of them.
Prepare consolidated Balance Sheet of H Ltd., as on 31.12.2005.
PART - B
Answer any three questions. Each carries 10 marks.
6. Compute the value of companys share by (a) the net assets and (b) the yield method from the information given below.
XYZ Co. Ltd., Balance Sheet as on 31-12-08
Rs. Assets
Rs.
5,00,000
2,50,000
40,000
4.00.000
90.000
20.000
1.00.000 1,80,000
7,90,000
7,90,000
Liabilities
Share Capital in Rs. 10 share Reserves P and L A/c 5% Debentures Current Liabilities
Fixed Assets Current Assets Goodwill
On 31.12.2008, the fixed assets were independently valued at Rs. 3,50,000 and goodwill at Rs. 50,000. The net profit for the three years were
2006 - Rs. 51,600, 2007 - Rs. 52,000 and 2008 - Rs. 51,650 of which 20% was placed to reserve. This proportion being considered reasonable in the industry in which the company is engaged and where a fair investment return may be taken at 10%.
The following items appear in the Balance Sheet of Sathya Ltd.
Share Capital :
Authorised:
40.000 Equity shares of Rs.10 each 4,00,000 Issued and paid up
20.000 Equity shares of Rs.10 each, Rs 8 per share paid-up 1,60,000 Reserves and Surplus :
General Reserve 1,00,000
Capital Redemption Reserve A/c 10,000
Securities premium 5,000
The company passed the following resolutions:
a) That the general reserve be utilised in making the partly paid shares as fully paid up.
b) That further, one fully paid equity bonus share of Rs.10 each be issued to each 10 shares held, by utilising general reserve to the minimum extent.
Pass the journal entries to record the above and show the necessary items in the Balance Sheet.
8. The Balance Sheet of Rama Ltd., is as follows
Rs. Assets
Liabilities
Rs.
1,00,000
9.00.000
2.50.000
3.00.000
4.50.000
10,00,000 Stock in trade
10,00,000
Share Capital :
10,000 Equity shares of Rs.100 each fully paid
10,000, 8% Preference shares of Rs.100 each fully paid
Debtors
Profit and Loss A/c
Goodwill Other fixed assets
20,00,000
It was resolved that equity capital of Rs.100 each be reduced to fully paid shares of Rs. 50 each and 8% preference shares of Rs.100 each be reduced to 9% fully paid preference shares of Rs. 80 each. Number of shares in each case remained the same.
It was further resolved that the amount so available be used for writing off the loss, goodwill account and as far as possible other fixed assets. There were arrears of preference dividend for the last three years and it was decided to cancel the same.
You are required to give journal entries and the revised Balance Sheet.
9. What is goodwill ? What are the factors considered while calculating goodwill ?
10. What are the various methods of redemption of debentures ?
PART - C
Answer any three questions. Each question carries 5 marks.
11. Write a note on Amalgamation of companies.
12. What do you mean by underwriting of shares ?
13. Mention important provisions regarding redemption of preference shares.
14. Write a note on Minority Interest.
15. What are the main divisions of share capital ?
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Attachment: |
| Earning: Approval pending. |
