GUG/W/18/10593 1 P.T.O
Bachelor of Business Administration (CBCS Pattern) Second Semester
UCB2C05 Financial Accounting Paper-II
P. Pages 4 GUG/W/18/10593
Time Three Hours Max. Marks 80

Notes 1. All questions are compulsory.
2. All questions carry equal marks.
1.

Explain the types of capital.
8

Rakesh ltd. was formed for the purpose of purchasing a business and was registered with a nominal capital of Rs. 2,00,000 divided into 2,000 equity shares of Rs. 100 each. 1000 shares were issued as fully paid to the vendors in part payment of the purchase consideration at a premium of Rs. 5 per share payable as under:-
On Application Rs. 10 per share
On Allotment Rs. 25 per share (including premium)
On first call Rs. 40 per share
On final call Rs. 30 per share
Applications were received for 900 shares which were duly allotted and the allotment, money was received in full. At the time of the first call, a shareholder who held 100 shares failed to pay the first call money.
You are required
Give necessary journal entries to record the above transactions.
OR
8

Arati Ltd. Company, having an authorised capital of Rs. 25,000 shares of Rs. 10 each. The company issued 20,000 shares at par. All the shares issued were applied for and the amounts were called as under.
On Application Rs. 1.25 per share
On Allotment Rs. 1.25 per share
On First call Rs. 2.50 per share
The balance to be called-up as and when required. All moneys up to allotment were duly received but one shareholder, who held 250 shares did not pay first call. Another shareholder, held 200 shares paid balance in advance alongwith first call.
The directors forfeited 250 shares on which the first call was not paid These shares were re-issued at Rs. 4 per share as Rs. 5 per share paid.
Show necessary journal entries in the books of the company and prepare balance sheet.
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2.

Following information are available about the business of Soham Ltd.
Profits: In 2007, Rs. 2,20,000, In, 2008, Rs. 2,50,000, In 2009 Rs. 3,00,000
Non-recurring Income of Rs. 20,000 is included in the profits of 2007.
Profits of 2008 include Rs. 30,000 Income on Investments.
Profits of 2009 have been reduced by Rs. 24,000 because goods were destroyed by fire.
Goods have not been insured but it is thought to insure them in future. The insurance premium is estimated at Rs. 1,500 per annum.
Reasonable remuneration of the proprietor of business is Rs. 10,000 p.a., but it has not been taken into account for calculation of above mentioned profits.
Calculate Goodwill on the basis of four year's purchase of the average profit of last three years.
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*2774*
GUG/W/18/10593 2

Mr. holds 10,000 equity shares of a company authorised and paid up capital of the company consists of.
2,00,000 equity shares of Rs. 10 each and
1,00,000, preference shares of Rs. 10 each.
Preference shareholders do not have claim in profit after payment of dividend to them at the prescribed rate.
Normal annual profit of the company is Rs. 5,28,000 and normal rate of dividend in same type of companies is 8%.
Compute the value of Mr. holdings.
OR
8

Balance sheet of Sargam co.ltd as on 31st March, 2015 was as under:
Balance sheet
Liabilities
Rs.
Assets
Rs.
Issued capital (50,000 Shares of Rs. 10 each)
5,00,000
Fixed Assets
5,00,000
Reserve fund
40,000
Current Assets
3,00,000
Profit loss A/c
10,000
Goodwill
20,000
Debentures
1,50,000
Current liabilities
1,20,000
8,20,000
8,20,000
On the above date fixed assets were valued at Rs. 6,00,000 and goodwill at Rs. 40,000 The profit of previous three years was Rs. 60,000, Rs. 1,00,000 and Rs. 80,000. 20% profit is to be transferred to General Reserve. Average rate of return is 10%
Compute the value of shares by;
The Net Assets Method.
ii) The Yield Value Method.
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3.

Abhay Co. Ltd. was incorporated on 1st July 2016 to take over the running business of Mr. Nandu with effect from 1st April, 2016. The following was the Profit Loss Account for the year ended 31st March, 2017.
Particulars
Rs.
Particulars
Rs.
To Advertisement
7,875
By Gross Profit
98,000
To Salary
20,800
To Insurance
600
To preliminary Exp.
700
To Rent Taxes
3,000
To Discount
1,600
To Managing Director Remuneration
9,000
To Net Profit
54,425
98,000
98,000
The following additional information is available:-
The average monthly turnover from July, 2016 onwards was double than that of the previous months.
Prepare a statement showing profit prior and after incorporation.
8
GUG/W/18/10593 3 P.T.O
Mumbai co. incorporated on 1st April, 2016 took over running business from 1st Jan, 2016.
The company prepared its first final Accounts on 31st Dec, 2016 From the following
information you are required to calculate the sales Ratio for pre-incorporation and post
incorporation periods.
Sales for January, 2016 to December, 2016 was Rs. 4,80,000 The Sale for the months
of January, was twice of the average sales, sale for the months of February was equal to
average sales, sales for four months (May to August) was 1
4
of average sales sales for
October November was three times of the average sales (every time average monthly sale
should be considered)
OR
8
A company was incorporated on 1st August 2012 to take over a business from the preceding
1st April. The accounts were made upto 31st March. 2013 as usual and the profit loss
Account gave the following results.
Particulars Rs. Particulars Rs.
To Rent, Tax Insurance 18,000 By Gross profit 3,00,000
To Directors fees 20,000
To salaries 51,000
To office expenses 48,000
To Travellers commission 12,000
To Discounts 15,000
To Bad debts 3,000
To Audit fees 8,500
To Depreciation 6,000
To Debentures Interest 4,500
To Net Profit 1,14,000
3,00,000 3,00,000
The sales of the above period was Rs. 12,00,000
It is ascertained that the sales for February and March, 2013 was one and half times
the average of the year, while those for May July was only half of the average.
Apportion the year's profit between pre post incorporation period.
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4. From the following particulars calculate liquidators remuneration.
Rs.
Assets Realised 4,03,000
Liquidation expenses 1,600
Debenture holders 63,000
Preferential creditors 5,000
Unsecured creditors 98,000
Equity share holders 2,00,000
Preference shareholders 1,32,000
(With dividend)
The liquidator's remuneration was on the amounts realized and on the
amount distributed to equity shareholders.
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GUG/W/18/10593 4

co. is Liquidated. The liquidators has a balance of Rs. 5,21,600 with him after all the external Liabilities, including his commission on realization of assets, have been paid. He is still to be paid remuneration at on the amount paid to equity shareholders.
The Company's share capital consisted of
Cumulative preference shares Rs. 2,00,000
ii) Equity Shares Rs. 4,00,000
The preference shareholder were not paid dividend for last 3 years. Find out the amount to payable to equity shareholders.
OR
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'Akash Ltd. went into voluntary liquidation. The details regarding liquidation are as follows:-
Share capital:-
20,000 12% preferential share of Rs. 10 each (fully paid up)
Class 20,000 equity shares of Rs. 10 each (Rs. 7.50 paid up)
Class 16,000 equity shares of Rs. 10 each (Rs. 6 paid up)
Class 14,000 equity shares of Rs. 10 each (Rs. 5 paid up)
Assets including Machinery realised Rs. 4,40,000. Liquidation Expenses amounted to Rs. 19,320.
Akash ltd. has borrowed a Loan of Rs. 50,000 from Travancore Bank Ltd. against the mortgage of Machinery (Which realised Rs. 80,500) The company's books preferential creditors Rs. 5,800
The liquidators is entitled to a commission of on realisation of assets and on the amount paid to unsecured creditors. (Including preferential creditors)
Prepare liquidators Final Statement of account.
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5.
Give answers in short
State the method of issuing shares.
4
Write the necessity for the valuation of Goodwill.
4
Write the method of ascertain the pre-incorporation profit.
4
Write five functions of liquidations.
4