B.Com. (Semester III) (CBCS) Examination, 2018
CORPORATE ACCOUNTING
iI
Day and Date: Wednesday, 26-12-2018 Max. Marks: 70
Time 2½ Hours
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the correct alternative: 14
If face value of the share is 30 and it is issued for Rs. 40 then it is known as
shares issued at
Discount Par
Premium Lump sum
Dividend declared between two financial year is known as dividend.
Interim Proposed
Unclaimed Final
Expenses of fixed nature can be classified in ratio for profit prior to
and after incorporation.
Time Specific
Sales Varied
Authorized capital is also known as capital.
Called-up Subscribed
Registered Paid-up
As-3 relates to
Amalgamation Investment
Loan fund Cash flow statement
If company registered on 1st May 2018 taking business of X ltd. on 1st Jan
2018, closes its account every year on 31st December then the time ratio will
be
2:3 1:2
3:4 2:1
A company is allowed to give maximum discount on issue of shares.
5 10
9 20
Dividend declared can be calculated on capital.
Issued Subscribed
Paid-up Authorized
As-10 relates to
Fixed asset Current asset
Depreciation Cash flow
10) Sales Cost of goods sold
Net profit Gross-profit
Capital Assets
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11) Advertising expenses can be divided in the ratio for a profit prior to
after in-corporation.
Specific Sales
Time Period
12) Shares issued at premium is for the company.
Loss Profit
Capital loss Capital profit
13) Equity shareholders are of the company.
Owner Borrower
Creditor Debtor
14) Expenses which are payable but not paid up to year end are known as
expenses.
Capital Outstanding
Revenue Pre-paid
Q.2 Write short note on following: 14
Types of preference shares
As-6 Depreciation Accounting
Q.3 Ajit Steel Ltd, issued for subscription 2000 shares of Rs.100 each at a
premium of Rs.20 per share payable as under
On application 20
On allotment 50 (including premium)
On first call 20
On final call 30
07
Applications were received for 3000 shares, 2400 shares were allotted to
the applicants for 2000 shares. The remaining applications for 600 shares
being refused and applicants money was refunded. Excess money
received adjusted against allotment. All the amounts were duly received
except Mr. Mohan to whom 100 shares were allotted.
He fails to pay first and final call. His shares were forfeited and reissued
to Mr. Sohan as fully paid for Rs.80 per share.
Pass necessary journal entries in regard to forfeiture and reissue of
shares.
A company was incorporated on 1st May 2017 to take over business from
1st January 2017. The accounts of the company for the period ended 31st
December 2017 disclosed the following facts.
Total Sales for the year was Rs.5,00,000 of which sales Rs.2,00,000 were
for the period up to 30th April 2017.
Trading account showed Gross profit of Rs.70,000
07
Debenture interest 1000
Audit fee 700
Salary 9000
General expense 2100
Carriage outward 3500
Apportion the year's profit between the pre and post incorporation period.
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Q.4 Bipin Trading Co. Ltd.; invited the public to subscribe for 20,000 equity shares
of Rs.100 each at a premium of Rs.10 per share payable on allotment.
Payment to be made were as follows:
On application Rs.20, on allotment Rs.40 (including premium); on first call
Rs.30; on second and final call Rs.20.
Applications were received for 26,000 shares. Applications for 4000 shares
were rejected and applicants money were refunded and allotment was made
proportionately to the remaining applicants. Both the calls were made and all
the money were received except the money on final call for 500 shares which
were forfeited after due notice. Later on these forfeited shares were reissued as
fully paid at Rs.85 per share. Pass necessary journal entries in the books of
Bipin Trading Co. Ltd.
14
OR
Vishal Trading Co. Ltd.; was registered on 1st June 2017 to take over business
of M/S Vidya as from 1st January 2017. The accounts of the company prepared
for year ending 31st December 2017 showed the following.
Total turnover for the year amounted to Rs. 12,00,000 of which Rs. 4,00,000
related to the period from 1st January 2017 to 31st May 2017.
Trading account showed Gross profit of Rs. 1,08,000
Following expenses were debited to P&L A/C.
Particulars Rs.
Salary 12,000
Rent 7,200
General Expenses 4,800
Printing stationary 3,600
Advertising 3,000
Travelling expenses 2,700
Bad debts 1,500
Director's fees 2,500
Audit fee 1,500
Debenture interest 2,000
Depreciation 6,000
Preliminary expenses 3,000
Commission on sales 2,400
Interest to vendors (up to 30th June, 2017) 6,000
Q.5 Sharad Company Ltd., was registered with a Nominal Capital of Rs. 6,00,000 in
equity shares of Rs. 10 each. Following is the list of balances taken from its
books on 31-3-2017.
14
Particulars Rs.
Premises 3,30,000
Machinery 3,00,000
Call in Arrears 7,500
Interim Dividend paid 37,500
Furniture 12,000
Goodwill 20,200
Sundry Debtors 87,000
Opening stock 75,000
Cash at bank 40,650
Share broker's Commission 5,000
Wages 84,000
Purchases 1,85,865
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Freight 13,115
Sundry Expenses 16,000
Salaries 15,335
Director's fees 5,000
Bad debts 2,835
Debenture interest paid 9,000
Called-up Capital 4,00,000
Debenture 3,00,000
P&L A/C (Cr. Balance) 14,000
Bills payable 38,500
Sales 4,20,000
Sundry Creditors 38,000
General Reserve 32,000
Bad debts Reserve 3,500
Prepare Trading and P&L A/c for the year ended 31st March, 2017 and Balance
sheet as on that date, in vertical form as per the provisions of Schedule VI to
the Indian Co. Act, 2013 after considering the following adjustments:-
Depreciate Machinery by premises by and Furniture by 10%
p.a.
Write off 50% of Share Broker's commission.
Provide for bad and Doubtful debts at on Sundry Debtors.
Stock on 31-3-2017 was valued at Rs. 1,30,000.
Transfer Rs. 2000 to General Reserve.
OR
The Vijay co. ltd; was registered with the nominal capital of Rs. 10,00,000
dividend into 10,000 Equity Shares of Rs. 100 each. On 31st December, 2016
following were the ledger balances of the company.
Particulars Rs.
Plant and Machinery 30,000
Insurance 3,000
Sales 4,10,000
Audit fee 2,000
Purchases 2,05,000
Purchase return 5,000
Sales return 10,000
Bad debt 2,000
Wages 70,000
Salaries 20,000
Printing and stationery 4,000
Stock on 1-1-2016 50,000
Rent 6,000
Rates and taxes 3,000
Trade expenses 4,000
Bank charges 8,000
Carriage Inwards 9,000
Travelling expenses 10,000
General expenses 1,000
Cash in hand 2,000
Cash at bank 10,000
Furniture 12,000
Sundry debtors 2,00,000
Sundry creditors 2,50,000
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Bad debts provisions 5,000
Advertisements 6,000
Legal charges 1,000
P&L A/c (credit balance) 4,00,000
Goodwill 11,00,000
Bills Receivable 70,500
Bills Payable 12,000
Freehold property 6,30,000
debentures 5,00,000
Equity Share Capital 10,00,000
Calls in arrears 1,000
Debenture Interest 12,500
Final dividend paid for 2015 1,00,000
Prepare Trading Account, Profit and Loss Account for the year ending 31st
December, 2016 and Balance Sheet as on that date in vertical form as per the
provisions of Schedule VI to the Indian Co. Act, 2013 after making following
adjustments:
Insurance prepaid Rs. 500, rent outstanding Rs. 1000 and salaries unpaid
Rs. 2000.
Provide depreciation on plant and machinery 10% and furniture 10%.
Create a reserve for bad and doubtful debts on sundry debtors.
Stock on 31st December, 2016 Rs. 1,00,000.
Provide for taxation Rs. 30,000
Transfer to General Reserve Rs. 1,20,000.
Propose Equity Dividend Rs. 1,50,000.