Acharya Nagarjuna University (ANU) 2006 B.Com Part II - Commerce, III - CORPORATE ACCOUNTING - - Question Paper

B.Com. DEGREE EXAMINATION, DECEMBER 2006
(Examination at the end of Final Year)
Part II - Commerce
Paper III - CORPORATE ACCOUNTING

Time : 3 hours Maximum : 100 marks

part A - (4 X five = 20 marks)
ans any 4 of the subsequent ques..

1. explain the impact of International Accounting standards on Indian Accounting Standards.

2. State the circumstances under which evaluation of shares necessary.

3. elaborate the redeemable preference shares?

4. Distinguish ranging from Amalgamation and Absorption.

5. What do you mean by statement of affairs?

6. discuss about rebate on bills discounted.

7. Briefly discuss about Insurable Interest.

8. What do you mean by profit prior to incorporation?

part B - (2 X 10 marks)
ans any 2 of the subsequent.

9. From the subsequent particulars relating to the business of Mr. X. calculate the value of goodwill on the basis of 3 years purchase of super profits taking avg. of last 4 years:
Capital invested Rs.30,000
Market rate of interest on investment 12%
Rate of risk return on capital invested 3%
Managerial remuneration of the proprietor if employed elsewhere 7,500 p.a.

Trading result:
2002 Profit 15,000
2003 Profit 18,000
2004 Loss 2,000
2005 Profit 22,000

10. Modern Fibres Ltd. has 1,000, 10% redeemable preference shares of Rs.100 every fully paid. The company decides to redeem the shares on December 31, 2004 at a premium of 5%. It has a credit balance of Rs.4,00,000 in the profit and loss account. subsequent problems were made on first March, 2005.

(a) 10,000 equity shares of Rs.10 every at a premium of 10%.
(b) 1,000, 6% debentures of Rs.100 every.

Both were fully subscribed and the amount is received in full. Subsequently the preference shares were redeemed appropriating full amount of the problem and the balance and profit and loss account.

provide journal entries to complete the redemption process.

11. The subsequent particulars relate to a company which has gone into liquidation. You are needed to prepare the liquidator.s final statement of account allowing for his remuneration of 2% on amounts paid to unsecured creditors other than preferential creditors:
Rs.
Preferential creditors 10,000
Unsecured creditors 32,000
Debentures 10,000

Assets realised Rs.39,650. Liquidation expenses amounted to Rs.1,000.

12. From the subsequent info relating to Lakshmi Bank Ltd., prepare the profit and loss account for the year ending 31st December, 2005.
Rs.
Rent 72,000
Exchange and Commission 32,800
Interest on fixed deposit 11,00,000
Interest on savings bank 2,72,000
Interest on overdraft 2,16,000

Earning:   Approval pending.