B.Com. II (Semester III) Examination, 2018
(CBCS Pattern)
Corporate Acounting
Day and Date Thursday, 20-12-2018 Max. Marks 70
Time 2.30 p.m. to 5.00 p.m.
Instructions All questions are compulsory.
Figures to the right indicate full marks.
1. Choose the correct alternative from given below each question. 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 lumpsum
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
Accounting standard 6 is in respect of
Depreciation Construction contract
Changes in financial position Fixed assets
Accounting standard 3 relates to
Disclosure of Accounting policies
Cash flow statement
Depreciation Accounting
Accounting for Fixed Assets
The part of issued share capital which is agreed to take up by the public is
known as capital.
Authorised capital Issued capital
Subscribed capital Paidup
Seat
No. Set P
Set P
SLR-CO 30 *SLRCO30*
A days notice of demand must be issued before forfeiture of
shares.
30 21 14 12
Dividend is generally paid on
Authorised capital Issued capital
Called up capital Paid up capital
Expenses which are payable but not paid up to year end are known as
expenses.
Pre-paid Outstanding
Capital Revenue
10) Unless otherwise stated debentures are considered as
Unsecured loan Secured loan
Current liabilities Contingent liabilities
11) Gross profit is divided in the ratio of
Period Time
Sales of two period None of these
12) Profit prior to incorporation period if not otherwise used, is transferred to
reserve.
Capital General
Reserve for doubtful debt None of these
13) Accounting is the of business.
Language Art
Science None of these
14) Accounting standard 21 relates to
Consolidated Financial Statement
Accounting for Fixed Assets
Accounting for Amalgamation
Cash Flow Statement
2. Answer the following.
Forfeiture of shares. 7
Depreciation Accounting AS 6. 7
Set P
*SLRCO30* SLR-CO 30
3. Answer the following.
XYZ Ltd., having an authorized capital of 4,000 shares of Rs. 20 each,
issued 3,000 shares at Rs. 24 each. The applications were received for
4,000 shares. The amount were called as Application money Rs. allotment
money Rs. 10 (including premium), First call Rs. Final call Rs. 4.
The Directors refunded the application money on 400 shares and adjusted
that on 600 shares towards the allotment money due.
All the amounts were received except the following
Mr. A holding 100 shares did not pay first and final call.
Mr. B holding 200 shares did not pay final call.
Pass necessary Journal entries in the books of XYZ Ltd. 7
J.S. Pvt. Ltd., which was incorporated on 1st May 2017 acquired the business
of J.S. Enterprises with effect from 1st January 2017. The accounts of the
company were closed for the first time on 30th September 2017, disclosing
a gross profit of Rs. 84,000. The establishment expenses were Rs. 21,330,
directors fees Rs. 1,500 p.m. and preliminary expenses Rs. 2,250. Rent
up to 30th June, 2017 was Rs. 150 p.m. but thereafter it was increased
to 375 p.m. Included in the directors fees was salary to the Manager at
Rs. 750 p.m. He was appointed as a director at the time of incorporation
of the company.
Prepare a statement showing profit prior and subsequent to incorporation
assuming that the net sales were Rs. 12,30,000 the monthly average of
which for the first four months of 2017 being half of that of the remaining
period. The business earned profit at a uniform rate. 7
4. Attempt any one of the following.
Kishor Industries Ltd. issued prospectus inviting applications for 12,000
shares of Rs. 100 each at a premium of Rs. 20 each. Payable as follows
On Application Rs. 20
On Allotment Rs. 50 (including premium)
On first call Rs. 30
On final call Rs. 20
Application were received for 18,000 shares and allotment made pro-rata
to the applications of 14,400 shares. Money over paid on application was
employed on account of sum due on allotment and excess money refunded.
Mr. Rahul, the holder of 360 shares failed to pay first and second call and
his shares were forfeited after final call. The forfeited shares were sold to
Ajit as fully paid for Rs. 70 each. Journalise the transactions. 14
Set P
SLR-CO 30 *SLRCO30*
Anand Traders Ltd. was registered on 1st January 2017 to take Business
of M/S Vidya and Manisha as from 1st October, 2016. The company
received its certificate of business on 1st February 2017. The accounts of
the company prepared for year ending 30th September, 2017 showed the
following
Total Turnover for the year amounted to Rs. 2,40,000 of which Rs. 40,000
related to the period from 1st October 2016 to 1st February 2017.
Trading Account showed Gross Profit of Rs. 96,000.
Following expenses were debited to Profit and Loss A/C.
Particulars Rs.
Salary 12,000
Rent 4,800
General expenses 1,800
Printing and stationery 2,400
Advertising 4,800
Travelling expenses 8,400
Bad debts (Rs. 500 related to debtors taken
over from vendors) 1,500
Directors fees 2,000
Audit fees 800
Debenture Interest 5,000
Depreciation 3,600
Preliminary expenses 3,000
Commission on sales 3,600
Interest on Vendors (Up to 31st May 2017) 4,000
Find out profit made by the company prior to and after incorporation. 14
5. Attempt any one of the following.
ABC Company Ltd., was registered with a capital of Rs. 2,00,000 divided
in 2000 equity shares. The Trial Balance of the company as on 31-3-2018
was as follows.
Trial Balance
Particulars Dr. Cr.
Rs. Rs.
Issued share capital 1,00,000
Motor Car 37,000
Sundry Debtors 9,600
Salaries 15,000
Set P
Bank Interest 400
Rent received 3,500
Travelling expenses 4,000
Machinery 80,000
Sales 1,05,000
Building 50,000
Discount allowed 1,500
Sundry Creditors 16,800
Wages 8,000
Bank Overdraft 12,200
Stock on 1-4-2017 7,000
Profit and Loss appropriation a/c 22,500
Purchases 30,000
Carriage 2,000
Cash in hand and at Bank 1,000
Printing and stationery 2,000
Repairs and Renewals 1,500
Directors Remuneration 2,500
Audit fees 500
Calls in arrears 3,000
Interim Dividends 5,000
2,60,000 2,60,000
Prepare a statement of Profit and Loss Account for the year ended
31-3-2018 and Balance Sheet as on that date in prescribed vertical form
as per the provisions of Schedule VI to the Indian Companies Act 2013,
after considering the following.
Stock on 31-3-2018 is Rs. 6,000
Create R.D.D. at on Debtors
Depreciate machinery by Rs. 2,000, Building by Rs. 7,000 and Motor
car by Rs. 620.
Outstanding wages Rs. 1,000.
Directors declared a final dividend at 20% on paid up capital. 14
What do you mean by accounting standards Explain their need. 14