Aligarh Muslim University %28AMU%29 2011-1st Year B.Com B Com %2C distance education%2C Financial Accounting - Question Paper
Aligarh Muslim University
Distance Education
2010-2011
BA / B.com Part 1 Examination
Financial Accounting
CM-107
Maximum Marks: 80 Duration 3Hours
NOTE: Answer any five questions. Select one from each question set.
All question carry equal marks.
1. A, V, R and S are partners in a firm sharing profits and losses in the ratio of 4:1:2:3.
The following is their balance sheet as on 31st March 2010
|
Liabilities |
Rs |
Assets |
Rs |
|
Sundry credits Capital A\c: A 7,00,000 S 3,00,000 |
3,00,000
10,00,000 |
Debtors 3,50,000 Less: Doubtful debts -50,000
Cash in hand Stocks Other assets Capital A/cs V 2,00,000 R 1,50,000 |
3,00,000 1,40,000 2,00,000 3,10,000
3,50,000 |
|
|
13,00,000 |
|
13,00,000 |
On 31st March 2010, the firm is dissolved and the following points are agreed upon:
I. A is to take over sundry debtors at 80% of book value and
II. S is to take over the stocks at 95% of the value and
III. R is to discharge sundry creditors.
IV. Other assets realize Rs 3.00.000 and the expenses of realization come to Rs 30,000
V. 4V is found insolvent and Rs. 21,900 is realized from his estate.
Prepare Realization account and capital Account of the partner. Show also the cash A/c. the loss arising out of capital deficiency may be distributed following the decision in garner vs Murray.
OR
Discuss the procedure of converting partnership firm into Limited Company.
2. What do you mean by underwriting of shares? What are the accounting entries in the book of underwriter?
OR
R Ltd. Was incorporated on 1st September, 2009 in order to purchase a running business from 1st April, 2009. The following particulars are available from its records:
i. Total Sales from 1st April 2009 to 31st March 2010 were Rs 1,20,000:
ii. Sales from 1st April 2009 to 31st August 2009 were Rs 30,000
iii. Gross profit for the whole year was Rs 45,000
iv. Total expenses of 2009-10 (including Directors fees Rs.1,500) Rs 37,500
v. Share Capital Rs 1, 00,000 find out profit prior to incorporation and after incorporation and prepare P&P A/c.
3. Prepare Balance Sheet of Yes Bank, From the following:
DR Balance Rs Cr. Balance Rs
Investments 32, 00,000 Share Capital 80,000
Premises 10, 00,000 Share of Rs. 10 each 8, 00,000
Cash in Hand 50,000 Statutory Reserve 7, 00,000
Cash at Bank 28, 10,000 Borrowing from Bank 5, 00,000
Fixed Deposit 15, 00,000 Profit and loss A/c (OP) 1, 00,000
Money at call &
Short notice 3, 00,000 Interest Received 5, 00,000
Saving Deposit 5, 00,000 Sundry Creditors 90,000
Interest Paid 2, 00,000 Unclaimed Dividends 80,000
Salaries 1, 10,000 Bills Payable 4, 00,000
Bills Discounted 5, 00,000 Loans and Advances 70, 00,000
Total 1, 01, 70,000 Total 1,01,70,000
OR
4. What do you mean by valuation of goodwill? Discuss the different methods of valuation of goodwill.
OR
The following particulars are available of sorabji Ltd:
A. Capital: 45,000, 6th preferences share of Rs 100 each fully paid up: and 45,000 equity shares of Rs 10 each fully paid-up.
B. External liabilities: Rs 7, 50,000.
C. Reserves and surplus : Rs 3,50,000
D. Annual average profit after tax : Rs 8,50,000
E. The normal profit earned on the market value is equity share, fully paid, on the same type of company is 9%.
F. Company transfers every year Rs 1, 00,000 to reserve.
Calculate the fair value of share assuming that out of the total assets, assets worth Rs 35,000 are fictitious.
5. The following are balance sheet of A Ltd. And B Ltd as on 31.03.2011
|
Liabilities |
A Ltd |
B Ltd |
Assets |
A Ltd |
B Ltd |
|
Enquiry Share Capital |
2,00,000 |
60,000 |
Buildings |
60,000 |
|
|
(Shares of Rs 100) |
|
|
Machinery |
2,00,000 |
50,000 |
|
6% Debentures |
40,000 |
|
Stock |
32,000 |
8,000 |
|
Reserve Fund |
72,000 |
|
Debtors |
28,000 |
9,000 |
|
Div. Eq. Fund |
8,000 |
|
Cash |
6,000 |
1,000 |
|
EPF |
6,000 |
|
|
|
|
|
Trade Creditors |
20,000 |
8,000 |
|
|
|
|
|
3,46,000 |
68,000 |
|
3,46,000 |
68,000 |
The companies agree to amalgamate and form a new company called C Ltd. Which takes over the assets and liabilities of both the companies? The entire purchase consideration in paid by A Ltd., in its fully paid share. Pass necessary journal entries in the book of B Ltd.
OR
What do you mean by reconstruction of the company? Discuss the accounting procedure of reconstruction of companies.
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| Earning: Approval pending. |
