Bharathiar University 2006 B.B.M BUSINESS MANAGEMENT- - Question Paper

III Semester B.B.M. Examination, Nov/Dec. 2006


BUSINESS MANAGEMENT
Paper - 3.4 : Corporate Accounting

Time : three Hours Max. Marks : 90

Instruction : ans in English only.

part - A

ans any en ques.. every carries 2 marks : (10x2=20)

1. a) provide the meaning of 'intangible assets'.
b) Mention the meaning of 'paid-up-capital'.
c) What do you mean by 'Absorption' ?
d) How do you compute purchase consideration under ‘Net Assets Method’ ?
e) What do you mean by ‘Straight line’ method of depreciation ?
f) Differentiate ‘Internal’ and ‘External’ reconstruction of a company ?
g) How do you treat ‘Mortgage loan’ in company final accounts ?
h) Under what head ‘underwriting commission’ is shown under company final accounts ?
i) What do you mean by “Dividend’ ?
j) How do you treat ‘over-subscription’ of shares ?
k) What do you mean by ‘Sinking Fund’ ?
l) Mention the meaning of ‘Irredeemable preference shares’.

part - B

ans any 5 ques.. every carries five marks : (5x5=45)

2. Mention the conditions to be satisfied in case of amalgamation in the nature of merger.

3. explain the legal provisions relating to alteration and reduction of capital.

4. SM Ltd., issued 5,000 equity shares of Rs. 50 every at a discount of 5%, payable as follows :
Rs. 10.00 on application
Rs. 15.00 on allotment (disc. adjusted)
Rs. 12.50 on I call and balance on II and final call

Of these 500 shares were forfeited, for non-payment of I call and II and final call. These shares were re-issued at Rs. 40 per share.

Pass journal entries for forfeiture and re-issue of shares.

5. PS Ltd., issued 2,000, 8% debentures of Rs. 100 each, payable as follows :
Rs. 20 on application
Rs. 40 on allotment and balance on II and final call.

First call was not received on 400 debentures. Pass journal entries.

6. subsequent is the balance sheet of XY ltd., as on 31st Mar. 05 :

Liabilities Rs. Assets Rs.

Share capital : Buildings 19,00,000
12,000, 7% preference
shares of Rs. 100 every 12,00,000 Machinery 6,40,000
2,20,000 equity shares
of Rs. 10 every 22,00,000 Goodwill 2,40,000
Securities premium 3,20,000 Stock 2,80,000
Creditors 3,20,000 Debtors 1,80,000
Preliminary expenses 1,00,000
P and L A/c 7,00,000

40,40,000 40,40,000

Dividend on preference shares is in arrears from first April 2002 :

Terms of capital reduction scheme were :

a) Preference shares to be decreased to Rs. 80 every and equity shares to be decreased to Rs. five each, fully paid.

b) Goodwill, preliminary expenses, P and L A/c debit balance to be written off.

c) Buildings to be written down to Rs. 14,80,000. Pass journal entries and prepare balance sheet.

Earning:   Approval pending.