Corporate Accounting Question Paper 2023 [Dibrugarh University BCOM 2nd Sem Core]

Corporate Accounting Question Paper 2023

Dibrugarh University BCOM 2nd Sem Core

COMMERCE (Core)

Paper: C-203

(Corporate Accounting)

Full Marks: 80

Pass Marks: 32

Time: 3 hours

The figures in the margin indicate full marks for the questions

In this Post you will get Corporate Accounting Question Paper 2023 [Dibrugarh University BCOM 2nd Sem Core]Past exam question papers will be very much usefull for upcoming exams.

1. (a) Write True or False:         1 x 3 = 3

(i) Share Application money should be at least 25% of the face value of shares.

(ii) Capital Redemption Reserve Account can be utilised for issuing fully paid bonus shares.

(iii) Pooling of Interest Method is applied when the amalgamation is in the nature of Merger.

(b) Fill in the blanks:           1 x 3 = 3

(i) Yield method of valuation of shares is also known as _______ method.

(ii) As per Banking Regulation Act, 1949, at least _______ % of the profits must be transferred to Statutory Reserve.

(iii) Pre-acquisition profits are treated as _______ profit.

(c) Choose the most appropriate answer:         1 x 2 = 2

(i) Accounting for amalgamation relates to

(1) Accounting Standard – 14.

(2) Accounting Standard – 21.

(3) Accounting Standard – 6.

(ii) Profit on re-issue of forfeited shares is transferred to

(1) Capital Reserve.

(2) General Reserve.

(3) Capital Redemption Reserve.

2. Write short notes on any four of the following:         4 x 4 = 16

(a) Conditions of buyback of shares.

(b) Non-banking assets.

(c) Valuation of shares.

(d) Rebate on bill discounted.

(e) Minority interest.

3. (a) Saikia Ltd. issued 20,000 equity shares of Rs. 100 each at a premium of 20% payable Rs. 30 on application, Rs. 60 on allotment (including premium), Rs. 20 on first call and balance on final call. The company received applications for 30,000 equity shares. Excess of 6,000 shares application money was refunded for non-allotment and balance adjusted with share allotment. All the amount due on shares was received with the exception of Sonowal, whom 500 shares were allotted, failed to pay first and final call money and Baruah, to whom 300 shares were allotted failed to pay final call money. All these shares were forfeited after due notice and subsequently reissued to Haloi at Rs. 80 per share fully paid up.

Pass necessary Journal Entries in the books of the company and draw up Balance Sheet of the company.   8+6=14

Or

(b) (i) Write SEBI (Securities and Exchange Board of India) guidelines for issue of Bonus Shares.    7

(ii) Write the prohibitions on issue of shares at a discount under Section 53 of the Companies Act, 2013.  7

4. (a) Following is the Trial Balance of JKT Co. Ltd., as at 31st March, 2023:

Particulars

Debit

(Rs.)

Credit

(Rs.)

Stock on 01-04-2022

Sales

Purchases

Wages

Discount

Furniture & Fittings

Salaries

Rent

Sundry Expenses

Surplus A/c on 01-04-2022

Dividend Paid

Share Capital

Debtors and Creditors

Plant & Machinery

Cash & Bank

Reserve

Patents & Trade Marks

7,50,000

24,50,000

5,00,000

1,70,000

75,000

49,500

70,500

90,000

3,75,000

2,90,000

1,62,000

48,300

35,00,000

50,000

1,50,300

10,00,000

1,75,000

1,55,000

50,30,300

50,30,300

Prepare Statement of Profit and Loss for the year ended 31st March, 2023 and Balance Sheet as at that date after taking into consideration the following adjustments:     7+7=14

(i) Closing Stock on 31st March, 2023 was valued at Rs. 8,20,000.

(ii) Depreciation of fixed assets @ 10%.

(iii) Make a provision for income tax @ 50%.

(iv) Ignore corporate dividend tax.

Or

(b) Write notes on the following:      3½ x 4 = 14

(i) Slip system of posting.

(ii) Non-banking assets.

(iii) Statutory reserve.

(iv) Sub-standard assets.

5. (a) On 31st March, 2023, the Balance Sheet of Bijoy Co. Ltd. was as follows:

Rs.

I. Equities and Liabilities:

1. Shareholders’ Fund:

(a) Share Capital:

2,00,000 Equity Shares of Rs. 10 each fully paid

10,000, 10% Preference Shares of Rs. 100 each fully paid

(b) Reserve and Surplus:

General Reserve

Surplus Account

2. Non-Current Liabilities:

Secured Loan: 8% Debentures

3. Current Liabilities:

Sundry Creditors

Liability for expenses

20,00,000

10,00,000

15,00,000

12,00,000

8,00,000

2,75,000

1,25,000

69,00,000

II. Assets:

1. Non-Current Assets:

Fixed Assets

Investments

2. Current Assets:

Stock-in-Trade

Sundry Debtors

Cash & Bank Balance

38,00,000

10,25,000

5,70,000

12,80,000

2,25,000

69,00,000

For the purposes of valuation of shares, fixed assets are to be depreciated by 10% and investments are re valued at Rs. 10,50,000. Debtors will realize Rs. 12,30,000.

Interest on debentures is accrued for 9 months and preference dividend for the year ending 31st March, 2023 is also due; neither of these has been provided for in the books.

Calculate the value of each equity share.        8

Or

(b) Explain the various methods of valuation of goodwill.        8

6. (a) Following is the Balance Sheet of Haloi & Co. Ltd. as on 31st March, 2023:

Rs.

I. Equities and Liabilities:

1. Shareholders’ Fund:

(a) Share Capital:

6,000 Equity Shares of Rs. 100 each

3,000, 6% Preference Shares of Rs. 100 each

(b) Reserve and Surplus:

Surplus Account (negative balance)

2. Non-Current Liabilities:

8% Debentures

3. Current Liabilities:

Creditors

Bank Overdraft

6,00,000

3,00,000

(-) 3,60,000

1,50,000

75,000

1,50,000

9,15,000

II. Assets:

1. Non-Current Assets:

Land & Building

Machinery

Goodwill

2. Current Assets:

Stock

Debtors

Cash

3,00,000

4,50,000

22,500

65,000

70,000

7,500

9,15,000

On the above date, the company adopted the following scheme of reconstruction:

(1) The preference shares are to be reduced to fully paid shares of Rs. 75 each and equity shares are to be reduced to shares of Rs. 40 each fully paid.

(2) The debenture holders took over stock and debtors in full satisfaction of their claims.

(3) The fictitious and intangible assets are to be eliminated.

(4) The Land and Building to be appreciated
by 30% and Machinery to be depreciated by 33 1/3%.

(5) Expenses of reconstruction amounted to Rs. 4,500.

Give Journal Entries incorporating the above scheme of reconstruction and prepare the reconstructed Balance Sheet.      6+5=10

Or

(b) What is purchase consideration? Discuss the various methods for calculating purchase consideration.    2+9=11

7. (a) From the Ledger Balances as at 31st March, 2023, and information given below, you are required to prepare a Consolidated Balance Sheet:         9

Cr. Balances

H Ltd.

Rs.

S Ltd.

Rs.

Dr. Balances

H Ltd.

Rs.

S Ltd.

Rs.

Equity Share Capital

General Reserve

Surplus A/c

Creditors

20,00,000

4,00,000

2,40,000

1,00,000

8,00,000

2,00,000

1,20,000

78,000

Fixed Assets

80% Equity Shares in

S Ltd. (at cost)

Stock

Other Current Assets

Preliminary Expenses

10,90,000

8,60,000

1,40,000

6,50,000

5,58,000

90,000

5,32,000

18,000

27,40,000

11,98,000

27,40,000

11,98,000

H Ltd. purchased shares from S Ltd. on 1st October, 2022. On 1st April, 2022, Surplus A/c of S Ltd. was Rs. 40,000 and General Reserve was Rs. 1,60,000.

On 1st February, 2023, S Ltd. sold goods to H Ltd. for Rs. 40,000 which was sold at a profit of 25% on selling price. Half of goods remain unsold and lying in the godown of H Ltd.

Or

(b) Explain the rules for preparing a Consolidated Balance Sheet.        9

This is all about Corporate Accounting Question Paper 2023. For BCOM Notes you can follow our official website or can download our mobile application.

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