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

Discount on bills discounted 7,80,000
Interest on current account 1,68,000
Interest on cash credit 8,92,000
Depreciation on bank property 20,000
Salaries and Allowance 2,18,800
Postage 5,600
Sundry charges 4,000
Directors and Auditor.s fee 16,800
Printing 8,000
legal regulations charges 3,600
Locker rent 1,400
Transfer fees 2,800
Interest on loans 10,36,000

part C - (3 X 20 = 60 marks)
ans any 3 of the subsequent ques..

13. The Sun Co. Ltd., acquired the whole of the shares in the Moon Co. Ltd., on first Jan. 2005. The Balance Sheet of the 2 companies as at 31st Dec. 2005 were as under.
Liabilities Sun Co. Ltd. Moon Co. Ltd. Assets Sun Co. Ltd. Moon Co. Ltd.
Rs. Rs. Rs. Rs.
Share Capital: Sundry assets 1,50,000 2,30,000
Equity shares of Rs.10 every 3,00,000 2,00,000 Investment 2,00,000
Creditors 50,000 30,000 Shares in the
Moon Co. Ltd.
at cost

3,50,000 2,30,000 3,50,000 2,30,000

Prepare the consolidated balance sheet.


14. The subsequent figures relate to the Jupiter Insurance Society Ltd., for the year ending 31st December, 2005.
Rs.
Claims 39,000
Management expenses 14,000
Director’s fee 4,000
Doctor’s fee 3,000
Agents commission 5,000
Depreciation 4,000
Bonus is reduction of premimum 1,500
Consideration for annuities granted 16,500
Surrenders 9,000
Premiums 1,51,000
Life fund at the beginning 11,50,000
Interest 40,000

Rs.
Rent received 10,000
Claims cancelled 500
Annuities 1,500
Audit Fees 500

Prepare the Revenue Account Adjusting premium due Rs.9,000 and claims unpaid Rs.3,000.

15. Newways Limited problems 1,000, 6% debentures of Rs.100 every. provide journal entries and the balance sheet in every of the subsequent cases:
(a) The debentures are issued and are redeemed at par.
(b) They are issued at a discount of 6% but redeemable at par.
(c) They are issued at a premimum of 5% but redeemable at par.
(d) They are issued at a discount of 4% but are redeemable at a premium of 5%.

16. From the subsequent Balance Sheet of ABC Co. Ltd., as at 31st December, 2005, obtain out the
intrinsic value of every equity share.
Rs. Rs.
Share Capital: Goodwill 25,000
8% preference shares of Rs.100 every 2,00,000 Land and buildings 1,00,000
2500 equity shares of Rs.100 every 2,50,000 Plant and machinery 2,50,000
General Reserve 20,000 Stock 1,80,000
Profit and Loss a/c 25,000 Sundry debtors 50,000
9% debentures 1,00,000 Investments : 5% Govt.
Sundry creditors 30,000 Securities (face value
Rs.25,000) 30,000
Provision for tax 35,000 Cash at bank 10,000
Preliminary expenses 15,000

6,60,000 6,60,000

Goodwill should be valued at five years purchase of super profits. The avg. profit of the company for the last 3 years after charging income-tax is Rs.75,000. Fair return on capital employed is 10%. Assets to be revalued : Land and Building Rs.1,50,000 and plant and machinery Rs.2,00,000.


17. The subsequent is the Balance Sheet of Dharan Co. Ltd. as on 31st December, 2005.
Liabilities Rs. Assets Rs.
13% cumulative preference shares Fixed assets 15,00,000
of Rs.100 every 1,00,000 Current assets 35,00,000
Equity shares of Rs.10 every 7,00,000 Profit and Loss a/c 3,00,000
8% debentures 3,00,000
Current liabilities 39,00,000
Provision for taxation 3,00,000

53,00,000 53,00,000

The subsequent scheme of reorganisation is sanctioned:
(a) Fixed assets are to be written down by 33 1/3 %.

(b) Current assets are to be revalued at Rs.27,00,000.

(c) Preference shareholders decide to forgo their rights to arrears of dividend which are in arrears for 3 years.

(d) The taxation liability of the company is settled at Rs.4,00,000.

(e) 1 of the creditors of the company, to whom the company owes Rs.25,00,000, decides to forgo 50% of his claim. He is allotted 1,00,000 equity shares of Rs.5 every in part satisfaction of the balance of his claim.

(f) The rate of interest of debentures is increased to 11%. The debenture holders surrender their existing debentures of Rs.100 every and exchange the identical for fresh debentures of Rs.75 every.

(g) All existing equity shares are decreased to Rs.5 every.

(h) All preference shares are decreased to Rs.75 every.

Pass journal entries and show the balance sheet of the company after giving effect to the above.

18. From the subsequent particulars, prepare profit and loss account of Swadesh Bank Ltd., for the year ended 31st Dec. 2005.
Rs.
Interest on loans 2,60,000
Interest on fixed deposit 2,80,000
Rebate on bills discounted 50,000
Commission charged to customers 9,000
Establishment expenses 56,000
Discount on bills discounted 2,00,000
Interest on current accounts 45,000
Printing and advertisement 3,000
Interest on cash credit 2,25,000
Rent and taxes 20,000
Interest on overdraft 56,000
Directors and auditor.s fees 4,500
Interest on Saving Bank Account 70,000
Postage and telegrams 1,500
Sundry charges 1,800

Earning:   Approval pending.