B.Com. II (Semester IV) (CGPA) Examination, 2018
CORPORATE ACCOUNTING
Day and Date Wednesday, 12-12-2018 Max. Marks 70
Time 10.30 a.m. to 1.00 p.m.
N.B. All questions are compulsory.
Figures to the right indicate full marks.
Use of calculator is allowed.
1. Choose the correct alternative from the following 14
Issue of debentures is a of fund.
Source Application
Transfer Reduction
Decrease in working capital is shown under in fund flow
statement.
Source of fund Application of fund
Funds from operation Balance Sheet
Net working capital means
Current assets current liabilities
Assets liabilities
Assets current liabilities
Fixed assets current liabilities
As per Section of the Companies Act, all revenue taxes,
ceases etc. payable within 12 months next before commencement of winding
up are the preferential creditors.
530 540
561 560
Seat P
No.
Set
SLR-CO 42 *SLRCO42*
Set P
A fund created for redemption of debentures is known as
Provident fund Compensation fund
Sinking fund All the above
In case of voluntary winding up a liquidator is appointed by the
Government Court
Board of directors Members
A per intrinsic method, in the absence of value of any
asset book value to be considered for valuation of shares.
Earning value Market value
Yield value Historical cost
If there are sufficient funds the balance available with the liquidator lastly
paid to shareholders.
Preference Equity
Private None of the above
The balance of sinking fund A/c after redemption of debentures is transferred
to
P/L A/c Debenture A/c
General Reserve A/c Sinking Fund Investment A/c
10) Intrinsic value is calculated by formula
Assets liabilities
Current Assets Current liabilities

Amount Available for Equity shareholders
No. of equity shares issued and subscribed
Market value+Intrinsic value
2
11) Debenture holders are of the company.
Owner Creditors
Debtors Directors
12) A statement which shown sources and application of fund is termed
as
Balance Sheet P and L A/c
Fund flow Working capital
*SLRCO42* SLR-CO 42
Set P
13) In case of preference shares, rate of dividend is
Fixed Unfixed
Increasing Decreasing
14) Unless otherwise stated debentures are presumed to be

Secured loan Unsecured loan
Current liabilities Current assets
2. Write short note 14
Necessity of valuation of shares.
Liquidator's remuneration.
3. Following is the Balance Sheet of Asha Co. Ltd. as on 31-3-2016. 7
Balance Sheet
Liabilities Rs. Assets Rs.
20000 shares of Rs. 10 each 2,00,000 Land and building 75,000
General reserves 50,000 Plant and machinery 80,000
Crs. 50,000 Trade marks 10,000
Workmen's saving A/c 50,000 Stock 1,00,000
P and L A/c 25,000 Drs. 54,000
Investment 20,000
Cash at bank 20,000
Preliminary exp. 16,000
3,75,000 3,75,000
Find out intrinsic value after taking into account.
Market value of assets as follows
Rs.
Land and building 1,50,000
Plant and machinery 1,00,000
Trade mark 8,000
Interest payable to creditors Rs.
Bad debts amounted to Rs. 2,000.
Investment are worth Rs. 16,000.
Set P
From the following information prepare a statement showing changes in
working capital. 7
Liabilities 2015 2016 Assets 2015 2016

Equity capital 1,40,000 1,40,000 Fixed asset 90,000 87,000
Reserves 74,000 1,05,000 Cash 75,000 97,000
Sundry Crs. 32,000 35,000 Sundry Drs. 43,000 40,000
Wages outstanding 3,000 4,000 Inventory 49,000 58,000
Bills payable 11,000 3,000 Prepaid rent 3,000 5,000
2,60,000 2,87,000 2,60,000 2,87,000
4. Following are the Balance Sheets of Pune Ltd. as on 31st Dec. 2015 and
31st Dec. 2016. 14
Balance Sheets
Liabilities 2015 2016 Assets 2015 2016

Share capital 1,00,000 1,50,000 Plant and Mach. 2,00,000 2,50,000
Preference share 1,00,000 1,20,000 Land and Bldg. 1,50,000 1,35,000
Capital Furniture 50,000 40,000
General Reserve 50,000 70,000 Debtors 60,000 80,000
P and L A/c 70,000 90,000 Stock 55,000 1,23,000
Sundry Crs. 1,20,000 1,50,000 Cash 5,000 17,000
B.O.D. 50,000 30,000 Dis. on issue
Provision for tax 30,000 40,000 of equity share 5,000
5,20,000 6,50,000 5,20,000 6,50,000
SLR-CO 42 *SLRCO42*
Additional information
All fixed assets are subject to depreciation at 10% on the opening
balance.
Preference shares are issued in part consideration of the new machinery
purchased. The balance of the amount due of the new machine is paid in
cash.
Taxes paid during the year Rs. 35,000.
Interim dividend paid Rs. 15,000.
During the year furniture of Rs. 5,000 is destroyed by fire.
You are required to prepare
Fund flow statement.
Schedule of changes in working capital.
All other necessary accounts.
OR
Calculate the fair value of shares of Sunrise Ltd. on the basis of following balance
sheet and additional information.
Liabilities Rs. Assets Rs.
5000 equity shares of Rs. 100 each 5,00,000 Sundry assets 9,80,000
Reserve and surplus 3,50,000 Preliminary exp. 20,000
12% debentures 1,00,000
Current liabilities 50,000
10,00,000 10,00,000
Additional information
Normal rate of return 20%.
Average profit of the co. before tax 3,00,000
The rate of tax 30%.
Transfer to reserve is Rs. 25,000 per year.
*SLRCO42* SLR-CO 42
Set P
5. XYZ Ltd. issued on 1st April 2005 Rs. 1,00,000 debentures at discount
and repayable at the end of 10th year at a premium of 4%. The sinking fund was
created by transferring Rs. 10,000 from profit and it was invested in 10%
Government Securities. Accounts are closed on 31st March show 14
Sinking Fund Account
Sinking Fund Investment A/c.
Int. on Sinking Fund Investment A/c for 1st three years.
OR
Star Ltd. went into voluntary liquidation on 31st March 2016 on which date its
position was as follows.
Balance Sheet
Liabilities Rs. Assets Rs.
2000 equity shares of 100 each 2,00,000 Cash at bank 1,700
Loans Machinery 40,000
Secured by machinery 30,000 Furniture 10,000
Secured by floating charge 20,000 Stock 1,00,000
Creditors Debtors 1,80,000
(1000 preferential) 1,51,000 Investment 5,000
P and L A/c 64,300
4,01,000 4,01,000
Additional information
The secured creditors holding charge over machinery realised it for
Rs. 35,000.
Other assets realised at par except there were bad debts of
Rs. 10,000.
Investment fetched nothing.
The liquidator's remuneration is on assets realised by him.
Prepare liquidator's final statement of A/c.