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# Aligarh Muslim University (AMU) 2011-1st Year B.Com B Com , distance education, Financial Accounting - Question Paper

Tuesday, 15 January 2013 01:25Web

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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