B.Com-B.Com 3rd Sem corporate accounting(Guru Nanak Dev University, Amritsar, Punjab-2013)
B.Com Third Semester
(Corporate Accounting)
Time Allowed: Three Hours Maximum Marks: 50
SECTION - A
1. Attempt any TEN questions from the following:-
(a)What is forfeiture of shares?
(b) What is Capital Redemption Reserve?
(c) State two conditions for buy-back of shares.
(d) What are divisible profits?
(e) What is purchase consideration as per AS- 14?
(f) What is alteration of capital?
(g) What are Non-Performing Assets?
(h) What is rebate on bill discounted?
(i) What is slip system of posting?
(j) Give meaning of reversionary bonus.
(k) Write about Valuation of Balance Sheet.
(l) Give treatment of reserve for unexpired risk in case of fir business.
SECTION - B
2. What do you mean by buy-back of shares? State the provisions of the Companies Act in this regard. Also bring out the advantages and disadvantages of buy-back of shares.
3. What is amalgamation in nature of merger? Discuss the methods of calculating purchase consideration with examples.
4. ABC Ltd. issued 10% Debentures at par for Rs. 8, 00,000 on 1st January, 2008. Interest was payable half-yearly on 30th June
and 31st December every Year. Under the terms of the trust deed, the debentures are redeemable at pat (after three years of issue)
by the company purchasing them in open market and cancelling them with a minimum redemption of Rs. 80,000 every year. In case, there was a shortfall in redemption by the company by open operations, the shortfall would be made good by the company by payment on the last day of the accounting year to the trustees who would draw lots and redeem the debentures.
The company purchased its own debentures for cancellation as under:
(a) 30th Sept. 2010 Rs. 1, 00,000 @ Rs. 98 cum-interest
(b) 31st May, 2011 Rs. 60,000 @ Rs. 95 exinterest
(c) 31st July, 2012 Rs. 90,000 @ Rs. 96 cum- interest
The company carried out its obligations under the deed. Prepare the following ledger accounts for calendar years 2010, 2011 and 2012.
(1) Debenture Account
(2) Debenture Redemption Account
(3) Debenture Interest Account
5. Following is the Trial Balance of Zee Ltd. as on 31st March 2012:
Debit Amount Credit Amount
(Rs.) (Rs.)
Stock as on 1.04.11 75,000 Purchase Return 10,000
Purchases 2, 45,000 Sales 3, 40,000
Wages 30,000 Discount Received 3,000
Carriage 950 Surplus A/c 15,000
Furniture 17,000 Creditors 17,500
Salaries 7,500 Share Capital 1, 00,000
Rent 4,000 General Reserves 15,500
Sundry Trade Expenses 16,950 Bills Payable 7,000
Debtors 27,500
Plant and Machinery 29,000
Cash at Bank 45,300
Patents 4,800
Bills Receivable 5,000
Total 5, 80,000 Total 5, 80,000
Prepare Statement of P/L and Balance Sheet for the year ending 31st March, 2012 after considering the following adjustments:
(a) Stock as on 31.03.12 was Rs. 88,000
(b) Provide for Income tax @35% and corporate dividend tax @ 10%
(c) Depreciate Plant & Machinery at 15%, Furniture 10% and Patents at 5%
(d) Outstanding rent amounted to Rs. 800 and outstanding salaries Rs. 900
(e) Provide Rs. 510 for doubtful debts
(f) The board recommends payment of dividend @ 15% per annum
(g) Transfer the minimum required amount to general reserve.
SECTION - C
6. Give the various provisions of the Banking Regulation Act, 1949 relating to the accounts of Banking Company.
Give the Performa of Profit & Loss account and Balance sheet according to RBI guidelines.
7.Prepare Revenue Account and Balance sheet of a Life Insurance Company with imaginary figures.
8.Following information is furnished to you by Sound Bank Ltd. for the year ended 31.03.2012.
| Particulars | Rs. in thousands | Particulars | Rs. in thousands |
| Interest & Discount | 8,860 | Other incomes |
250 |
| Interest on deposits | 2,720 | Provisions and contingencies | 2,004 |
| Operating Expenses | 2,662 | Rebate on bill discounted as on 31.03.2012 | 30 |
Classification of Advances:
(Rs. in thousands)
Standard Assets 5,000
Sub-Standard assets (fully secured) 1,120
Doubtful Assets-fully unsecured 200
Doubtful assets-fully secured:
Less than 1 year 50
more than 1 year but less than 3 years 300
More than 3 years 300
Loss Assets 200
Prepare Profit & Loss Account O\of the Bank for the year ended 31-03-12 and provisions in respect of advances.
9. From the following figures taken from the books of New Asia Insurance Ltd. doing fire underwriting business, prepare the set of final accounts for the year ended 31.03.10 (as per IRDA Act):
|
Particulars |
Amount |
Particulars |
Amount |
|
Fire Fund (as on 1.4.2009) |
9,30,000 |
P/L Account |
75,000 |
|
General Reserves |
4,50,000 |
Re-Insurance Premium |
1,12,525 |
|
Investments |
36,00,000 |
Claims recovered from Re- Insurers |
21,119 |
|
Premiums |
27,01,000 |
Commission ceded |
48,016 |
|
Claims Paid |
6,02,815 |
Advance income tax paid |
2,50,000 |
|
Share capital |
9,00,000 |
commission |
2,99,777 |
|
Additional Reserve |
3,30,000 |
Commission on re-insurance accepted |
60,038 |
| Outstanding Premiums | 22,300 | Audit fees (general) | 36,000 |
| Claims due as on 1.04.09 | 60,000 | Rates and Taxes (General) | 5,804 |
| Expenses of management | 4,31,947 | Rent ( General) | 67,500 |
| Income from Investments | 1,53,000 | Agent`s Balances (Dr.) | 20,000 |
| Creditors | 22,500 | Cash in hand | 1,82,462 |
Reinsurance Premium received: 533(Rs.)
Additional Information:
(1) Claims intimated but not paid Rs. 1,04,000
(2) Expenses of management include survey fees and legal expenses of Rs. 36,000 and Rs. 20,000 relating to claims.
(3) Income tax to be provided @35%
(4) Transfer Rs. 2,00,000 out of current profits to general reserve.
(5) Create reserves for unexpired risk @40% of net Premium.
| Earning: ₹ 8.20/- |
