Corporate Accounting Question Paper 2022
[Gauhati University BCOM 2ND SEM Question Papers]
COMMERCE (Honours)
Paper: COM-HC-2016
(Corporate Accounting)
Full Marks: 80
Time: Three hours
The figures in the margin indicate full marks for the questions.
Answer either in English or in Assamese.
In this post you wil get Corporate Accounting Question Paper 2022 for Gauhati University BCOM 2ND SEM.
1. (1) Fill in the blanks with appropriate word/words: (any five) Â Â Â Â Â 1 x 5=5
(a) Schedule _______ of the companies Act, 2013 is related to the form and contents of the Balance Sheet and Statement of Profit & Loss.
(b) Capital redemption reserve can be utilised for issuing _______ bonus shares.
(c) The debt-equity ratio after the buy-back of shares should not exceed _______.
(d) The Accounting standard _______ deals with accounting for amalgamation.
(e) _______ method of accounting is applied in case of amalgamation in the nature of merger.
(f) Post-acquisition profits are treated as _______ profits.
(g) Reduction of share capital requires section by _______.
(2) State whether the following statements are true or false: (any five):Â Â Â Â 1 x 5=5
(a) Interim dividend is declared between two Annual General Meetings.
(b) The right to apply for Right Shares is optional.
(c) At the time of valuation of Goodwill, only operating profit is taken into consideration.
(d) Buy-back of shares does not affect the authorised share capital of a company.
(e) Accounting standard 12 is related to accounting for holding companies.
(f) All the assets and liabilities of the transferor company becomes the assets and liabilities of the transferee company when the amalgamation is in the nature of purchase.
(g) A subsidiary company cannot buy shares of the holding company after it becomes its subsidiary.
(h) Goodwill is a non-current asset.
2. Answer the following: (any five)Â Â Â Â Â Â 2 x 5=10
(a) Mention any four components of financial statements of a company.
(b) What is the treatment of preliminary expenses while preparing final accounts of companies?
(c) What is capitalisation of reserve?
(d) What is Escrow Account?
(e) Write two methods of valuation of equity shares.
(f) Write two methods for calculating purchase consideration.
(g) What is consolidated Balance Sheet?
(h) What is meant by pre-acquisition profit?
3. Answer any four of the following: Â Â Â Â Â 5 x 4=20
(a) Write any five differences between Right Shares and Bonus Shares.
(b) Pragati Ltd. has a capital of Rs. 9,00,000 divided into 90,000 equity shares of Rs. 10 each fully paid up. The company decided to return Rs. 3 per share to equity shareholders and make the shares Rs. 7 called up and paid up. Pass journal entries in the books of the company.
(c) The following is the extract of Trial Balance of Star Ltd. as on 31-03-2022.
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|
Rs. |
|
Opening Inventory Sales Salary & Wages Purchases Sales Return Dividend received Import License Fees Staff Welfare Expenses Machinery Advertisement |
18,000 3,73,000 20,000 2,10,500 3,000 4,600 1,500 5,000 1,00,000 4,000 |
You are required to prepare a Statement of Profit & Loss after considering the following:
(1) Closing stock as on 31/03/2022 is Rs. 20,000.
(2) Depreciate machinery @ 10% p.a. for 6 months.
(d) How will the following items be shown while preparing the final accounts of a company?
(1) Unclaimed dividend.
(2) Proposed dividend.
(e) Write any five differences between Amalgamation in the nature of Merger and Amalgamation in the nature of Purchase.
(f) How is minority interest computed in case of a holding company?
(g) What is the need for consolidated financial statements in case of a holding company?
(h) From the following information, calculate the value of Goodwill under 4 years purchase of super profit:
(1) Net profit for last 4 years – Rs. 30,000, Rs. 40,000, Rs. 50,000 and Rs. 60,000.
(2) The net profit includes non-operating profit on an average Rs. 3,000 p.a.
(3) Average capital employed Rs. 3,00,000.
(4) Normal rate of return 10%.
4. Answer any four from the following questions:Â Â Â Â Â 10 x 4=40
(1) What is buy-back of shares? Moon Ltd. has share capital of Rs. 5,00,000 in equity shares of Rs. 10 each. It has Rs. 3,00,000 in general reserve and Rs. 60,000 in Security Premium Account. The company in a special resolution decided to buy-back 10,000 equity shares at par out of its free reserves. Total liabilities of the company amounted to Rs. 9,00,000.
Pass journal entries in the books of the company and show necessary workings. Â Â Â Â Â Â Â Â Â 2+8=10
(2) What is meant by valuation of share? Explain the need for valuation of share. Â Â Â Â Â Â Â Â 2+8=10
(3) What is Internal Reconstruction? Mention the situations which call for internal reconstruction of a company. Discuss any one method of reduction of share capital.      2+4+4=10
(4) Explain the legal provisions under companies Act, 2013 regarding preparation of financial statements.   10
(5) Sky Ltd. resolved to utilize Rs. 4,00,000 out of its General Reserve balance to declare a bonus to shareholders by paying the final call of Rs. 4 per share on 1,00,000 shares of Rs. 10 each. The company further decided to utilize the balance of the security premium of Rs. 2,00,000 by issuing fully paid bonus shares. Give journal entries in the books of the company and show necessary workings. 10
(6) Write the meaning of holding company. State the principles of consolidation of accounts followed by a holding company. Â Â Â Â Â Â Â Â Â Â 2+8=10
(7) The following ledger balances are extracted from the books of Sun Ltd. on 31/03/2022:
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|
Rs. |
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10,000 equity shares of Rs. 100 each Sundry Creditors Bank Loan Proposed Dividend 10% Debentures General Reserve Securities Premium Reserve Surplus in Statement of Profit & Loss on 31/03/2022 Livestock Land and Building Cash in hand Cash at Bank Stock in Trade Furniture Plant & Machinery Sundry Debtors Prepaid Expenses Long-term investments |
10,00,000 3,60,000 2,00,000 50,000 4,00,000 1,40,000 50,000 2,00,000 1,50,000 5,40,000 50,000 1,00,000 2,10,000 3,00,000 5,00,000 4,40,000 10,000 1,00,000 |
You are required to prepare a Balance Sheet of the company as per schedule III of Companies Act, 2013.
(8) Explain the conditions to be satisfied under section 68 of the Companies Act, 2013 for buyback of shares.
(9) Write five objectives of Amalgamation.
From the following information, calculate the amount of purchase consideration:Â Â Â 5+5=10
East Ltd. is taken over by West Ltd. where East Ltd. is having 60,000 shares of Rs. 10 each. West Ltd. has agreed to discharge the following payments:
(a) Cash payment of Rs. 2 per share of East Ltd.
(b) Issue of 20,000 shares of West Ltd. of Rs. 10 each fully paid at a premium of Rs. 2 per share.
(c) 6% Debentures of Rs. 1,00,000 of East Ltd. will be discharged at 5% premium by the issue of 7% Debentures of West Ltd. at par.
(10) Sunday Ltd. acquired 400 (i.e., 1/4th equity shares of Monday Ltd. of Rs. 100 each on 31/03/2021.
The summarised Balance Sheet of Sunday Ltd. and Monday Ltd. on 31/03/2022 were as under:
Balance Sheet
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Particulars |
Sunday Ltd. |
Monday Ltd. |
|
I. Equity and Liabilities 1. Shareholder’s Fund: (a) Share Capital Equity shares of Rs. 100 each. (b) Reserve & Surplus: General Reserve Surplus as per Statement of P & L 2. Current Liabilities: Creditors |
1,60,000 60,000 30,000 40,000 |
50,000 16,000 24,000 30,000 |
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|
2,90,000 |
1,20,000 |
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II. Assets: 1. Non-current Assets (a) Property and Equipment (b) Non-current Investments:Â 400 shares in Monday Ltd. 2. Current Assets |
  1,40,000 60,000 90,000 |
  50,000 – 70,000 |
|
|
2,90,000 |
1,20,000 |
Monday Ltd. had a credit balance of Rs. 16,000 in the General Reserve and Rs. 8,000 credit balance in Statement of Profit & Loss when Sunday Ltd. acquired the shares in Monday Ltd. Prepare Consolidated Balance Sheet and show necessary workings.
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