B.Com-B.Com Co-operative Management 3rd Year (University of Madras (UnOM)-2013)

GUESS PAPER PAPER CODE: UCWD SUBJECT: CORPORATE ACCOUNTING (B.COM III) SECTION A- LONG QUESTIONS 1. Define : ‘preference share’. 2. What do you mean by firm underwriting? 3. What do you understand by unmarked application? 4. What is pro-rata allotment of shares? 5. What are various types of goodwill? 6. What do you understand by forfeiture of share? 7. What do you mean by errors of omission? 8. Define auditing. 9. What is an audit programme? 10. Define internal audit. 11. What do you understand by verification? 12. What is a compulsory audit? SECTION B- SHORT ANSWERS 13. Good luck limited decided to redeem its preference shares as on st 31 March 1999 on which date its position was as under : Rs. Share capital : 12% Redeemable preference shares of Rs. 100 each fully paid up 30,00,000 Equity shares of Rs. 100 each fully paid up 1,70,00,000 Share premium 17,00,000 General reserve 25,00,000 Other liabilities 58,00,000 3,00,00,000 The board of directors decided to redeem the preference shares both by issue of fresh capital and by utilization of reserves but without any further borrowings. You are required to advise them the scheme for redemption and draw up the balance sheet after redemption with journal entries. 14. What are various types of debentures? 15. White limited issues 10,000 12% debentures of Rs. 100 each. Give journal entries if the debentures and redeemable at par and are issued (a) at par (b) at a discount of 2 percent and (c) at a premium of 3 percent. 16. A company issues 1,000 14% debentures each at a premium of 20% sixty percent of the issue was under written by M/s. Bulls and Bears at the maximum rate of commission allowed by law. Applications were received for 800 debentures which were accepted and payment of these was received in full. Give journal entries. 17. Explain different methods of valuing shares. 18. What are the merits of an audit programme? 19. Explain various types of vouchers. 20. As an auditor, while vouching the payments, what points should be given in your special attention? SECTION C — SHORT QUESTIONS All questions carry equal marks. Each answer should not exceed 500 words. 21. From the following information calculate the value per equity share : Rs. 2,000 9% preference shares of Rs. 100 each 2,00,000 50,000 equity shares of Rs. 10 each, Rs. 8 per share paid up 4,00,000 Expected profits per year before tax 2,18,000 Rate of Tax 50% Transfer to General reserve every year 20% of the profit Normal rate of the earning 15% 22. Prepare a Balance Sheet as at st 31 March, 1998 from the following information of ABC Limited. Rs. Term loan 10,00,000 Sundry creditors 11,45,000 Advances 3,72,000 Cash and bank balances 2,75,000 Staff advances 55,000 Provision for taxation 1,70,000 Share premium 4,75,000 Loose tools 50,000 Investments 2,25,000 Loss for the year 3,00,000 Sundry debtors 12,25,000 Miscellaneous expenses 58,000 Loans from debtors 2,00,000 Provision for doubtful debts 20,200 Stores 4,00,000 Fixed Assets (WDV) 51,50,000 Finished goods 7,50,000 General reserve 20,50,000 Capital work-in-progress 2,00,000 Additional Information : (a) Share capital consists of : (i) 3,000 equity shares of Rs. 100 each fully paid up, (ii) 10,000 10% redeemable preference shares of Rs. 100 each fully paid up. (b) Term loans are secured (c) Depreciation on assets Rs. 5,00,000. 24. Discuss the advantages of an audit.

Earning:  ₹ 3.10/- (User Action Required). Comment:  Quite cluttered, Please fix it if you can.