Are you searching Kannur University Question Papers? Here You can find Corporate Accounting Question Paper.
Third Semester B.Com. Degree Examination
November 2010
BCOM (Core) (Course No. 3)
3B04COM: Corporate Accounting
Time: 3 Hours Total Weightage: 30
PART – A
This part consist of two bunches of questions carrying equal weightage of one. Each bunch consists of four objective type questions. Answer all questions:
I. 1. Loss prior to incorporation is debited to ___________
a) Capital account
b) Goodwill account
c) Incorporation expenses account
d) None of these
2. Average profit minus normal profit is __________
a) Super profit
b) Supreme profit
c) Abnormal profit
d) None of these
3. Provision for taxation is _________
a) Debited to Trading a/c
b) Debited to P&L a/c
c) Debited to P&L Appropriation a/c
d) Shown in the asset side of Balance Sheet
4. Balance Sheet is prepared by a company to ________
a) Check the arithmetic accuracy
b) Know the profitability
c) Ascertain the liquidity position
d) Ascertain the financial position
II. 5. When two companies join together and form a new company, it is known as
a) Amalgamation
b) Absorption
c) External reconstruction
d) Internal reconstruction
6. Realisation a/c is prepared to know
a) The amount realized
b) The profit on realization
c) The amount realized and paid
d) The amount of purchase consideration
7. Tax due to Central Government is ____________ company liquidation.
a) Unsecured creditor
b) Secured creditor
c) Preferential creditor
d) Trade creditor
8. In the case of banking companies assets which do not carry more than the normal risk attached to the business is called _________
a) Sub-standard asset
b) Loss asset
c) Doubtful asset
d) Standard asset
(W=1) (WGP=4x1x1=4)
PART – B
Answer any eight questions in one or two sentences each. Each question carries a weightage of one:
9. Define purchase consideration.
10. What constitute the final account of a joint stock company?
11. What is annuity method of computing goodwill?
12. What is external reconstruction?
13. What do you mean by pooling of interest method?
14. What is statement of affairs in liquidation?
15. Define non-banking companies.
16. What is NPA?
17. What is statutory reserve in banking companies?
18. What is meant by managerial remuneration? (W=8x1=8) (WGP=8x4x1=32)
PART – C
Answer any six questions. Answer not to exceed one page. Each question carries a weightage of two:
19. Explain the factors affecting goodwill of a company.
20. Distinguish between internal reconstruction and external reconstruction.
21. Give the proforma Balance Sheet of a banking company using imaginary figures.
22. Following is the Balance Sheet of Mr. Bose as on 31st March 2010:
Bills payable 3600 Cash 4500
Creditors 6400 Book-debts 7500
Capital 132000 Stock 35000
Machinery 50000
Buildings 45000
142000 142000
Viswas Ltd., is formed to take over the business on 1st April 2010 for a consideration of Rs. 220000 payable in 20000 equity shares of Rs. 10 each at a premium of 10%. Give opening entries in the books of Viswas Ltd.
23. X Ltd., was incorporated on 1st April 2010, to take over the business of Mr. Raghavan with effect from 1st January 2010. X Ltd., prepared its first final accounts on 31st December 2010. Calculate the sales ratio from the following information:
i. Sales of January - Twice the average sales
ii. Sales of February - Average sales
iii. Sales from May to August - 1/4th of average for each month
iv. Sales from October and November - 3 times the average sales for each month
v. Sales for the year 2010 - Rs. 4,80,000
24. A company earned profits of Rs. 8,000; Rs. 12,000; and Rs. 18,000 during 2006, 2007, 2008 and 2009 respectively. The average capital investment of the company is Rs. 50,000. Pure rate of return on investment is 10% and risk occupied by the company by Rs. 500 per annum.
Calculate goodwill based on (a) three years purchase of super profit method and (b) capitalization method.
25. The following is the Balance Sheet of Abhay Ltd., as on 31–3–2010:
14% Preference capital Goodwill 180000
4,000 shares of Rs. 100 400000 Plant & Machinery 500000
50,000 equity shares of Rs.10 500000 Stock 300000
12% Debentures 100000 Debtors 70000
Creditors 200000 Cash 20000
P&L a/c 130000
1200000 1200000
The following scheme was approved:
a) To issue 15% preference shares of Rs. 60 each for every 14% preference shares of Rs. 100 each.
b) To reduce equity shares by Rs. 4 each.
c) To redeem 12% debentures if Rs. 1, 00,000 by the issue of 14% debentures of Rs. 80,000 in full satisfaction.
d) To write off P&L a/c, goodwill and write down plant and machinery by Rs. 60,000 and any balance left to be provided for doubtful debts.
Journalise.
26. Abuth Ltd., went into voluntary liquidation. The following are the details:
Assets realized 40500
Liquidators remuneration 5000
Unsecured creditors 20000
Preferential creditors 500
Preference capital 20000
Equity capital:
1000 shares of Rs.10each, Rs. 9 called up 9000.
2000 shares of Rs.10each, Rs. 5 called up 10000.
Show liquidator’s final statement of account. (W=6x2=12) (WGP=6x4x2=48)
PART – D
Answer any two. Each question carries a weightage of four. Answer not to exceed four pages:
27. The following are the ledger balances of Manju Ltd., as on 31st March 2010:
Debit: Credit:
Buildings 3072000 Equity capital 4000000
Plant 3300000 12% Debentures 3000000
Stock 750000 P&L a/c 262500
Debtors 870000 B/P 370000
Goodwill 250000 Creditors 400000
Bank balance 406500 Sales 4150000
Calls-in-arrear 75000 General reserve 250000
Interim dividend 392500 Bad-debts provisions 35000
Purchases 1850000
Preliminary expenses 50000
Wages 979800
Salaries 202250
Office expenses 68350
Bad-debts 21100
Debenture interest 180000
12467500 12467500
Additional information:
i. Closing stock 950000
ii. Depreciate plant by 15%
iii. Write off preliminary expenses Rs. 5000
iv. Provide half year’s debenture interest due.
v. Maintain a provision for doubtful debts @ 5%
vi. Provide for taxation Rs. 180000
Prepare final accounts.
28. Following is the Balance Sheet of Best Ltd., as on 31-3-2010:
Preference capital Plant & Machinery 500000
(50000x10) 500000 Land & Buildings 1000000
Equity capital Investments 200000
(100000 x 10) 1000000 Stock 300000
Profit & loss a/c 200000 Debtors 400000
General reserve 300000 Bank 90000
Debentures 200000 Cash 10000
Creditors 300000
2500000 2500000
Best Ltd., is absorbed by Excel Ltd., on the following terms:
1) Equity shares are to be discharged at 6% premium by issuing equity shares in Excel Ltd. of Rs. 10 each.
2) Nine preference shares in Excel Ltd. to be issued for five preference shares in Best Ltd.
3) Stock is not taken over by Excel Ltd. and it realized Rs. 100000.
Show:
a) Realization a/c and
b) Equity shareholders a/c in the books of Best Ltd.
29. The following are the figures extracted from the books of Southern Bank Ltd. as on 31-3-2010:
Interest and dividend received 1250000
Interest paid on deposits 650000
Commission, exchange and brokerage 240000
Rent received 40000
Profit on sale of investments 200000
Loss on sale of investments 5000
Salaries and allowances 360000
Directors fees and allowances 30000
Rent and taxes paid 24000
Printing and stationary 12000
Postage and telegram 5000
Other expenses 4000
Audit fees 18000
Balance of profit as on 1st April 2009 240000
Other information:
1) Provide Rs. 15000 for doubtful debts.
2) Provide Rs. 60000 for taxation.
3) Rebate on bills discounted as on 31-3-2010 Rs. 40000.
4) Provide dividend Rs. 100000.
Prepare P&L a/c with necessary schedules. (W=2x4=8) (WGP=2x4x4=32)
________________
Third Semester B.Com. Degree Examination
November 2010
BCOM (Core) (Course No. 3)
3B04COM: Corporate Accounting
Time: 3 Hours Total Weightage: 30
PART – A
This part consist of two bunches of questions carrying equal weightage of one. Each bunch consists of four objective type questions. Answer all questions:
I. 1. Loss prior to incorporation is debited to ___________
a) Capital account
b) Goodwill account
c) Incorporation expenses account
d) None of these
2. Average profit minus normal profit is __________
a) Super profit
b) Supreme profit
c) Abnormal profit
d) None of these
3. Provision for taxation is _________
a) Debited to Trading a/c
b) Debited to P&L a/c
c) Debited to P&L Appropriation a/c
d) Shown in the asset side of Balance Sheet
4. Balance Sheet is prepared by a company to ________
a) Check the arithmetic accuracy
b) Know the profitability
c) Ascertain the liquidity position
d) Ascertain the financial position
II. 5. When two companies join together and form a new company, it is known as
a) Amalgamation
b) Absorption
c) External reconstruction
d) Internal reconstruction
6. Realisation a/c is prepared to know
a) The amount realized
b) The profit on realization
c) The amount realized and paid
d) The amount of purchase consideration
7. Tax due to Central Government is ____________ company liquidation.
a) Unsecured creditor
b) Secured creditor
c) Preferential creditor
d) Trade creditor
8. In the case of banking companies assets which do not carry more than the normal risk attached to the business is called _________
a) Sub-standard asset
b) Loss asset
c) Doubtful asset
d) Standard asset
(W=1) (WGP=4x1x1=4)
PART – B
Answer any eight questions in one or two sentences each. Each question carries a weightage of one:
9. Define purchase consideration.
10. What constitute the final account of a joint stock company?
11. What is annuity method of computing goodwill?
12. What is external reconstruction?
13. What do you mean by pooling of interest method?
14. What is statement of affairs in liquidation?
15. Define non-banking companies.
16. What is NPA?
17. What is statutory reserve in banking companies?
18. What is meant by managerial remuneration? (W=8x1=8) (WGP=8x4x1=32)
PART – C
Answer any six questions. Answer not to exceed one page. Each question carries a weightage of two:
19. Explain the factors affecting goodwill of a company.
20. Distinguish between internal reconstruction and external reconstruction.
21. Give the proforma Balance Sheet of a banking company using imaginary figures.
22. Following is the Balance Sheet of Mr. Bose as on 31st March 2010:
Bills payable 3600 Cash 4500
Creditors 6400 Book-debts 7500
Capital 132000 Stock 35000
Machinery 50000
Buildings 45000
142000 142000
Viswas Ltd., is formed to take over the business on 1st April 2010 for a consideration of Rs. 220000 payable in 20000 equity shares of Rs. 10 each at a premium of 10%. Give opening entries in the books of Viswas Ltd.
23. X Ltd., was incorporated on 1st April 2010, to take over the business of Mr. Raghavan with effect from 1st January 2010. X Ltd., prepared its first final accounts on 31st December 2010. Calculate the sales ratio from the following information:
i. Sales of January - Twice the average sales
ii. Sales of February - Average sales
iii. Sales from May to August - 1/4th of average for each month
iv. Sales from October and November - 3 times the average sales for each month
v. Sales for the year 2010 - Rs. 4,80,000
24. A company earned profits of Rs. 8,000; Rs. 12,000; and Rs. 18,000 during 2006, 2007, 2008 and 2009 respectively. The average capital investment of the company is Rs. 50,000. Pure rate of return on investment is 10% and risk occupied by the company by Rs. 500 per annum.
Calculate goodwill based on (a) three years purchase of super profit method and (b) capitalization method.
25. The following is the Balance Sheet of Abhay Ltd., as on 31–3–2010:
14% Preference capital Goodwill 180000
4,000 shares of Rs. 100 400000 Plant & Machinery 500000
50,000 equity shares of Rs.10 500000 Stock 300000
12% Debentures 100000 Debtors 70000
Creditors 200000 Cash 20000
P&L a/c 130000
1200000 1200000
The following scheme was approved:
a) To issue 15% preference shares of Rs. 60 each for every 14% preference shares of Rs. 100 each.
b) To reduce equity shares by Rs. 4 each.
c) To redeem 12% debentures if Rs. 1, 00,000 by the issue of 14% debentures of Rs. 80,000 in full satisfaction.
d) To write off P&L a/c, goodwill and write down plant and machinery by Rs. 60,000 and any balance left to be provided for doubtful debts.
Journalise.
26. Abuth Ltd., went into voluntary liquidation. The following are the details:
Assets realized 40500
Liquidators remuneration 5000
Unsecured creditors 20000
Preferential creditors 500
Preference capital 20000
Equity capital:
1000 shares of Rs.10each, Rs. 9 called up 9000.
2000 shares of Rs.10each, Rs. 5 called up 10000.
Show liquidator’s final statement of account. (W=6x2=12) (WGP=6x4x2=48)
PART – D
Answer any two. Each question carries a weightage of four. Answer not to exceed four pages:
27. The following are the ledger balances of Manju Ltd., as on 31st March 2010:
Debit: Credit:
Buildings 3072000 Equity capital 4000000
Plant 3300000 12% Debentures 3000000
Stock 750000 P&L a/c 262500
Debtors 870000 B/P 370000
Goodwill 250000 Creditors 400000
Bank balance 406500 Sales 4150000
Calls-in-arrear 75000 General reserve 250000
Interim dividend 392500 Bad-debts provisions 35000
Purchases 1850000
Preliminary expenses 50000
Wages 979800
Salaries 202250
Office expenses 68350
Bad-debts 21100
Debenture interest 180000
12467500 12467500
Additional information:
i. Closing stock 950000
ii. Depreciate plant by 15%
iii. Write off preliminary expenses Rs. 5000
iv. Provide half year’s debenture interest due.
v. Maintain a provision for doubtful debts @ 5%
vi. Provide for taxation Rs. 180000
Prepare final accounts.
28. Following is the Balance Sheet of Best Ltd., as on 31-3-2010:
Preference capital Plant & Machinery 500000
(50000x10) 500000 Land & Buildings 1000000
Equity capital Investments 200000
(100000 x 10) 1000000 Stock 300000
Profit & loss a/c 200000 Debtors 400000
General reserve 300000 Bank 90000
Debentures 200000 Cash 10000
Creditors 300000
2500000 2500000
Best Ltd., is absorbed by Excel Ltd., on the following terms:
1) Equity shares are to be discharged at 6% premium by issuing equity shares in Excel Ltd. of Rs. 10 each.
2) Nine preference shares in Excel Ltd. to be issued for five preference shares in Best Ltd.
3) Stock is not taken over by Excel Ltd. and it realized Rs. 100000.
Show:
a) Realization a/c and
b) Equity shareholders a/c in the books of Best Ltd.
29. The following are the figures extracted from the books of Southern Bank Ltd. as on 31-3-2010:
Interest and dividend received 1250000
Interest paid on deposits 650000
Commission, exchange and brokerage 240000
Rent received 40000
Profit on sale of investments 200000
Loss on sale of investments 5000
Salaries and allowances 360000
Directors fees and allowances 30000
Rent and taxes paid 24000
Printing and stationary 12000
Postage and telegram 5000
Other expenses 4000
Audit fees 18000
Balance of profit as on 1st April 2009 240000
Other information:
1) Provide Rs. 15000 for doubtful debts.
2) Provide Rs. 60000 for taxation.
3) Rebate on bills discounted as on 31-3-2010 Rs. 40000.
4) Provide dividend Rs. 100000.
Prepare P&L a/c with necessary schedules. (W=2x4=8) (WGP=2x4x4=32)
________________
0 comments:
Pen down your valuable important comments below