Solapur University Question Paper, B.Com. – II (Semester – IV),CORPORATE ACCOUNTING,2014 Question Paper

Solapur University Question Paper B.Com. – II (Semester – IV) Examination, 2014 CORPORATE ACCOUNTING Day and Date : Wednesday, 9-4-2014 Max. Marks : 50 Time : 11.00 a.m. to 1.00 p.m. N.B. : 1) All questions are compulsory. 2) Figures to the right indicate full marks. 3) Use of calculators is allowed. 1.Choose the correct alternative : 10 1) Debenture is a type of _______________ capital. a) Borrowed b) Owned c) Equity d) Preference 2) Increase in working capital is _______________ of fund. a) Increase b) Decrease c) Constant d) None of these 3) Current Assets Minus_______________ = Working capital. a) Current liabilities b) All liabilities c) Investment d) Capital 4) Discount on issue of debentures is_______________loss. a) Actual b) Preliminary c) Revenue d) Capital SLR-B – 33 -2- 5) When the term fund is taken as cash, the statement is called as _______________ a) Working capital statement b) Revenue statement c) Funds flow statement d) Cash flow statement 6) In case of voluntary winding up a liquidator is appointed by the _______________ a) Board of Directors b) Members c) Government d) Court 7) In case of preference shares, rate of dividend is_______________ a) Increasing b) Decreasing c) Fixed d) Not fixed 8) Liquidators final statement is prepared _______________ a) In all modes of winding up b) Voluntary winding up c) Only in case of compulsory winding up d) None 9) Unless otherwise stated debentures are presumed to be_______________ a) Unsecured loan b) Secured loan c) Current liabilities d) Current assets -3- SLR-B – 33 10) Fair value = _______________ a) 2 Market value − Intrinsic value b) 2 Market value + Intrinsic value c) 2 Market value d) 2 Intrinsic value 2. Write short note (any two) : 10 a) Liquidators remuneration b) Preference share c) Redemption of debentures. 3. A) A Ltd. Company provide you following information : 14% Preference share capital Rs. 5,00,000 (Shares of Rs. 100 each) 10,000 Equity shares of Rs. 100 each Rs. 10,00,000 Reserves Rs. 5,00,000 12% debentures Rs. 5,00,000 The profit of the company after taxation is Rs. 3,40,000, for equity shares of companies in the same class of business yield is 20%. Ascertain the market value of each equity shares. 5 B) From the following information prepare a statement showing changes in working capital : Balance Sheet Liabilities 2011 2012 Assets 2011 2012 (Rs.) (Rs.) (Rs.) (Rs.) Share capital 4,50,000 4,50,000 Fixed Assets 4,00,000 3,20,000 Reserve 3,00,000 3,10,000 Investment 50,000 60,000 P & L A/c 56,000 68,000 (Non current) Creditors 1,68,000 1,34,000 Inventories 2,40,000 2,10,000 8% debentures 75,000 10,000 Debtors 2,10,000 4,55,000 Mortgage loan – 2,70,000 Bank 1,49,000 1,97,000 10,49,000 12,42,000 10,49,000 12,42,000 5 4. The following schedule shows the Balance Sheet in the condensed form of Sanjeev Ltd. Assets 1-1-2012 31-12-2012 Rs. Rs. Cash and Bank 45,000 45,000 S. Debtors 33,500 21,500 Temporary investment 55,000 37,000 Prepaid expenses 500 1,000 Stock in trade 41,000 53,000 Land and building 75,000 75,000 Machinery 26,000 35,000 2,76,000 2,67,500 SLR-B – 33 -4- Liabilities Rs. Rs. S. Creditor’s 51,500 48,000 Outstanding expenses 6,500 6,000 8% debentures 45,000 35,000 Depreciation fund 20,000 22,000 Reserve for contingencies 30,000 30,000 Profit and Loss A/c 8,000 11, 500 Capital 1,15,000 1,15,000 2,76,000 2,67,500 The following information is also available : 1) 10% dividend paid in cash. 2) New machinery for Rs. 15,000 was purchased but old machinery costing Rs. 6,000 was sold for Rs. 2,000. Accumulated depreciation was Rs. 3,000. 3) 8% Debentures of Rs. 10,000 were redeemed by purchase from open market @ 96 for a debenture of Rs. 100. 4) Investment costing Rs. 18,000 were sold at book value. You are required to prepare cash flow statement for the year ending 31-12-2012. 10 OR -5- SLR-B – 33 Following is the Balance Sheet of Janata Ltd. as on 31st March 2012. Balance Sheet as on 31-3-2012 Liabilities Rs. Assets Rs. Issued Capital Block Capital 5,00,000 40,000 shares of Current assets 2,00,000 Rs. 10 each 4,00,000 Goodwill 40,000 G. Reserve 90,000 P & L A/c 20,000 5% debentures 1,00,000 Current liabilities 1,30,000 7,40,000 7,40,000 On 31st March 2012 the block capital was independently valued at Rs. 5,50,000 and goodwill at Rs. 50,000. The net profit for the last three years were Rs. 51,600, Rs. 51,650 and Rs. 52,000 of which 20% was placed to reserve, this proportion being considered reasonable in the industry in which the company is engaged and where a fair investment return may be taken at 10%. Compute the value of shares by Net Assets method and Yield method. Also calculate fair value of each share. 10 5. ‘X’ Ltd. issued 1,000 6% debentures of Rs. 100 each payable as to Rs. 20 on application, Rs. 30 on allotment, Rs. 40 on first call and balance on final call. Applications were received for 1,500 debentures, out of which applications for 900 debentures were allotted fully. Applications for 400 debentures were allotted 100 debentures and remaining applications were rejected. All sums due were received. Journalise the transactions in the books of ‘X’ Ltd. 10 OR SLR-B – 33 -6- Hardluck Ltd. went into voluntary liquidation on 31 March 2012. The Balance Sheet on that date was as follows : Balance Sheet Liabilities Rs. Assets Rs. Share capital Plant 2,50,000 30,000 shares of Rs. 10 each 3,00,000 Debtor’s 1,45,000 15000, 8% Pref. Stock 1,80,000 Share of Rs. 10 each 1,50,000 Bank 5,000 9% Debentures 1,00,000 P & L A/c 1,50,000 (having floating charge) S. Creditors 1,80,000 7,30,000 7,30,000 The liquidators realised the assets as stock and plant Rs. 4,20,000. Debtor’s Rs. 1,90,000. Preference dividend was paid upto 31-3-2011. Preference share holders carried the right of payment of dividend (in addition to capital) in arrears automatically before anything can be paid to the equity share holders. All claim were admitted. Expenses of liquidation amounted to Rs. 20,000. Debentures were repaid on 30-9-2012 together with interest upto date. The liquidator was to get his remuneration @ 2% of the amount realise and 2% on the amount paid to equity shareholders. Prepare liquidators final statement

Share This