B.Sc. II (Entrepreneurship) (Semester IV) (New CBCS)
Examination, 2018
Entrepreneurship (Paper VII)
Corporate accounting and profesional ethics
Day and Date Friday, 7-12-2018 Total Marks 70
Time 10.30 a.m. to 1.00 p.m.
1. Choose the correct answer from given alternative. 14
The excess price received over the par value of shares, should be
credited to
Share Capital Account Bank Account
Reserve Capital Account Share premium Account
The amount of capital that a company can issue at par value is called

Authorized capital Share premium
Issued capital Fixed capital
The share of profit a shareholder will receive is called
Dividend Surplus
Net Profit Retained profit
Declared dividend should be classified in the Balance sheet as a

P rovision Current liability
Reserve Current asset
Debenture holders will get
Dividend Interest Profit All of these
is a part of authorized capital which is offered to the
public for subscription.
Issued capital Reserve capital
Nominal capital Subscribed capital
According to schedule VI companies Act which item is not shown on Asset
side of Balance sheet
Investment Current Loan and Advances
P rovision Lease Hold
Seat
No. Set P
P.T.O.
The amount set apart from profit for future is known as
Reserve Capital a/c
P repaid expenses a/c Cash in hand
is an example of fixed asset.
Bills Receivables Stock
Land and Building Debtors
10) Which mode of the winding up the companies will be called compulsory
winding up
Winding up by the order of court
Voluntary winding up
Winding up subject to the supervision of the tribunal
None of the above
11) A is a formal statement of an organization primary value and
the ethical rules it expects its employees to follow.
Mission statement Statement of purpose
Code of ethics Vision statement
12) Which among the following are advantages of managing business ethics in
the workplace
Cultivate strong team work and productivity
Avoid criminal acts
Lower fines
All of these
13) The word is derived from the Latin word
Moralis Morilitic
Monatic None of these
14) deals with the right actions of individuals.
Sincerity Rules
Ethics All of these
2. Solve any seven from the following 14
What is Liquidation
Define forfeiture of shares.
What statement of affairs
Modes of liquidation.
SLR-SK 27 *SLRSK27*
Set P
What is Business ethics
What is corporate governance
What is amalgamation
Define Liquidator.
What is calls in arrears
3. Solve any two from the following 10
Explain theories of ethics.
Explain types of preference shares.
The following is the Balance Sheet of Regency India Ltd. as on
31.12.2017.
Liabilities Rs. A ssets Rs.
Share Capital Land and building 55,000
10,000 shares of P lant 65,000
Rs. 10 each 1,00,000
General Reserve 20,000 Trademark 10,000
Taxation Reserve 30,000 Stock 24,000
Workmen's savings A/C 15,000 Debtors 44,000
Profit and loss A/C 16,000 Cash at bank 26,000
Sundry Creditors 49,000 P reliminary Expenses 6,000
2,30,000 2,30,000
The plant is worth Rs. 60,000 and Land and Building have been valued
at Rs. 1,20,000. Debtors include Rs. 4,000 as bad. Value of Goodwill is
Rs. 80,000. Ignore Income-tax.
Find out the Fair value of the Equity Share.
Write order of payment in liquidation process. 4
4. Solve any two from the following 14
Define advantages of ethics
Explain in detail corporate social responsibility.
Set P
*SLRSK27* SLR-SK 27
Sourabh Networks Ltd. Issued 2,000 equity shares of Rs. 100 each at premium
of Rs. 5 per share payable as follows
On application Rs. 35 per share (including premium)
On allotment Rs. 25 per share
On First Call Rs. 30 per share
On Final Call Rs. 15 per share
Applications were received for 2,200 equity shares. 2,000 equity shares were
allotted to the applicants. The remaining applications for 200 equity shares were
rejected and the application money thereon refunded.
All the amounts were duly received except from Miss. Akshata to whom 100
equity shares were allotted. She failed to pay the amounts due on first and final
calls. These shares were subsequently forfeited.
P ass the necessary journal entries.
5. Solve any two from the following. 14
Explain functional areas of ethics.
Explain methods of valuation of share.
Gourav Oil company Ltd. went into liquidation on 31st March, 2017. The following
Balance sheet was prepared
Liabilities Rs. A ssets Rs.
Subscribed Share Capital Goodwill 1,00,000
39000 shares of Rs. 100 each 3,90,000 P lant and Machinery 1,31,000
Sundry Creditors Leasehold property 96,000
P referential 48,400 Stock 1,13,600
P artly secured 1,10,620 Sundry Debtors 1,29,640
Unsecured 1,99,580 Cash 5,000
Bank overdraft (unsecured) 24,000 Profit and loss account 1,97,360
7,72,600 7,72,600
The liquidator realized the assets as follows
P lant and machinery Rs. 1,02,000
Stock Rs. 78,000
Sundry Debtors Rs. 1,17,000
Cash Rs. 5,000
Leasehold property which was used firstly to partly secured creditors prorate
Rs. 70,000. The expenses of liquidation amounted Rs. 2,000 and liquidators
remuneration was agreed at 2.5% on the amount realized including cash and
on amount paid to the unsecured creditors. Prepare Liquidators final statement of
account.