Exam Details
| Subject | corporate accounting (ca) | |
| Paper | ||
| Exam / Course | mba | |
| Department | ||
| Organization | Gujarat Technological University | |
| Position | ||
| Exam Date | December, 2018 | |
| City, State | gujarat, ahmedabad |
Question Paper
1
Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (Integrated) SEMESTER 2 • EXAMINATION WINTER 2018
Subject Code: 2527104 Date: 28/ 12/ 2018
Subject Name: Corporate Accounting
Time: 2:30 PM To 5:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1
Explain the differences between Receipts and Payments Account and Income and Expenditure Account.
07
What do you mean by Cash Flow Statement? Explain the differences between Cash Flow Statement and Fund Flow Statement.
07
Q.2
A company offered 1000 equity shares of Rs. 100 each to the public. The amount was payable as follows:-
A. Rs. 50 on Application (Including Rs. 10 Premium)
B. Rs. 30 on Allotment; and
C. Rs. 30 on Call.
Applications were received for 3000 shares. Applicants for 1000 shares were not given any allotment and their application money refunded. Rests of the applicants were given pro-rate allotment.
X to whom 100 shares were allotted did not pay any money except that with his application. The issue was completed and rest of the applicants paid their amount when due. Excess Application money adjusted on allotment and calls.
Share of X were forfeited and reissued to Y at Rs. 50 each as fully paid up.
Give the journal entries of above transactions.
07
Give the journal entries with the suitable examples when a Company issues their shares At Par At Premium and At Discount.
07
OR
Explain the Followings:-
Buy Back of Shares B. Pro-rata Allotment
07
Q.3
Prepare the Income And Expenditure Account from the following details:-
Receipts and Payments Account for the year ending 31st March 2016
To Balance b/d
To Subscriptions
To Furniture
Rs.
20000
60000
9000
By Salaries
By Misc. Expenditure
By Balance c/d
Rs.
30000
5000
54000
89000
89000
Other Information:-
Outstanding subscription was Rs. 3000 and subscription received in advance was Rs. 500 on 1st April 2015
Subscription outstanding is Rs. 4000 and subscription received in advance is Rs. 1000 on 31st March 2016
Loss on sale of furniture Rs. 1000
Salary outstanding was Rs. 2000 on 1st April 2015 and salary outstanding is Rs. 2500 on 31st March 2016.
07
What journal entries will be passed in each of the following cases for issue and redemption of debenture?
07
2
A. 1000- Debentures of Rs. 100 each issued at Rs. 98 and repayable at par.
B. 1000- Debentures of Rs. 100 each issued at par and repayable at Rs. 102
C. 1000- Debentures of Rs. 100 each issued at Rs. 98 and repayable at Rs. 102
OR
Q.3
Following is the trial balance of Mahesh Limited as on 31st March 2016
Particulars
Debit Amount
Credit Amount
Equity Share Capital
300000
12% Preference Share Capital
200000
Reserve fund
150000
Building
500000
10% Debenture
200000
Plant Machinery
200000
Purchases Sales
250000
600000
Salary
60000
Debtors Creditors
230000
175000
Bills
80000
90000
Director's Fees
20000
Bad Debts
5000
Returns
15000
20000
Wages
15000
Opening Stock
45000
P&L Account 1-04-2015
60000
Loose Tools
60000
Goodwill
80000
Discount of issue of shares
20000
Cash and bank balances
33000
12% Investments
200000
Interest of Investments
18000
Total
1813000
1813000
Adjustments:-
1. Closing Stock is valued at Rs. 140000
2. Outstanding Wages Rs. 2500
3. Debenture interest is outstanding for current year
4. Write off further bad debts Rs. 5000
5. Building and Plant Machinery to be depreciated by and 10% respectively.
6. Transfer Rs. 25000 to reserve.
7. The director propose 15% dividend to equity shareholders.
You are required to prepare company's Income Statement a/c in vertical format with necessary working notes
07
Prepare the Balance Sheet of Mahesh Limited as per the information given in above question (Q.3 in Company form with necessary working notes
07
Q.4
What do you mean by Goodwill? Describe in which circumstances valuation of goodwill is necessary.
07
X and Y are partners in a firm. The Balance sheet of their business on 31 March 2016 is as follows:-
Balance Sheet as on 31st March 2016
Creditors
34000
Cash
10000
General Reserve
50000
Stock
50000
Profit Loss a/c
18000
Debtors
80000
07
3
Capital X 110000
Y 83000
193000
Furniture
10000
Machinery
100000
Goodwill
45000
295000
295000
The above business is intended to be purchased by Z. The assets have been revalued as follows: Stock Rs. Furniture Rs.8000/-, Machinery Rs. 150000/-. It has been agreed that provision for bad debts on debtors is to be made on debtors in future. Future Rate of depreciation is on Furniture 15% on Machinery.
The profits of the past five years are like this 2011-12 Rs. 60000, 2012-13 Rs.50000, 2013-14 Rs.30000, 2014-15 Rs.40000, 2015-16 Rs. 65000.
The normal rate of profit on average capital employed is 15% p.a. Ignore income tax.
Calculate the amount of goodwill on the basis of Actual Average Super Profit by Capitalization method.
OR
Q.4
Under what circumstances it become necessary to determine the value of shares of a concern? What points are taken into consideration while determining the value of shares?
07
On the basis of the following information of Jai Shree Ltd. Calculate value of its equity share on the basis of Expected rate of Return Method.
50000 Equity Shares of Rs. 100 each Rs 80 paid up Rs. 40,00,000
10% Preference Share Capital Rs. 20,00,000
Profit before Tax Rs. 65,38,461
Rate of Taxation 35%
Normal Rate of Return 15%
07
Q.5
Explain the meaning and importance of funds flow statement. How funds flow statement is is prepared?
07
From the following Balance Sheet of Bharat Company Ltd., prepare statement of change in working capital.
Balance Sheets of Bharat Company Ltd.
Liabilities
31/03/15
31/03/16
Assets
31/03/15
31/03/16
Share Capital
500000
500000
Fixed Assets
600000
700000
Debenture
370000
450000
Long-term Investment
200000
100000
Tax payable
77000
43000
Work in Progress
80000
90000
Accounts payable
96000
192000
Stock in trade
150000
225000
Interest payable
37000
45000
Bills Receivables
70000
140000
Dividend payable
50000
35000
Cash
30000
10000
1130000
1265000
1130000
1265000
07
OR
Q.5
Jindal Steel Ltd.'s transactions for the ending March 31, 2016 includes the following:-
1. Purchased real estate for Rs. 500000 which was borrowed from a bank
2. Sold investment securities worth Rs. 600000.
3. Paid dividend Rs. 300000.
4. Issued 500 equity shares for Rs.350000.
5. Purchased machinery and equipments for Rs. 175000.
6. Paid Rs. 750000 towards a bank loan.
7. Accounts receivable outstanding of Rs. 100000 was paid.
07
4
8. Accounts payable were increased by Rs. 190000.
Calculate the net cash flow from Investing and Financing activities
Calculate the Cash flow from operations from the following information
Particulars
2014
2015
Debtors
50000
47000
Bills Receivables
10000
12500
Creditors
20000
25000
Bills payable
8000
6000
Outstanding expenses
1000
1200
Prepaid Expenses
800
700
Accrued income
600
750
Income received in advance
300
250
Profit during the year
130000
.
07
Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (Integrated) SEMESTER 2 • EXAMINATION WINTER 2018
Subject Code: 2527104 Date: 28/ 12/ 2018
Subject Name: Corporate Accounting
Time: 2:30 PM To 5:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1
Explain the differences between Receipts and Payments Account and Income and Expenditure Account.
07
What do you mean by Cash Flow Statement? Explain the differences between Cash Flow Statement and Fund Flow Statement.
07
Q.2
A company offered 1000 equity shares of Rs. 100 each to the public. The amount was payable as follows:-
A. Rs. 50 on Application (Including Rs. 10 Premium)
B. Rs. 30 on Allotment; and
C. Rs. 30 on Call.
Applications were received for 3000 shares. Applicants for 1000 shares were not given any allotment and their application money refunded. Rests of the applicants were given pro-rate allotment.
X to whom 100 shares were allotted did not pay any money except that with his application. The issue was completed and rest of the applicants paid their amount when due. Excess Application money adjusted on allotment and calls.
Share of X were forfeited and reissued to Y at Rs. 50 each as fully paid up.
Give the journal entries of above transactions.
07
Give the journal entries with the suitable examples when a Company issues their shares At Par At Premium and At Discount.
07
OR
Explain the Followings:-
Buy Back of Shares B. Pro-rata Allotment
07
Q.3
Prepare the Income And Expenditure Account from the following details:-
Receipts and Payments Account for the year ending 31st March 2016
To Balance b/d
To Subscriptions
To Furniture
Rs.
20000
60000
9000
By Salaries
By Misc. Expenditure
By Balance c/d
Rs.
30000
5000
54000
89000
89000
Other Information:-
Outstanding subscription was Rs. 3000 and subscription received in advance was Rs. 500 on 1st April 2015
Subscription outstanding is Rs. 4000 and subscription received in advance is Rs. 1000 on 31st March 2016
Loss on sale of furniture Rs. 1000
Salary outstanding was Rs. 2000 on 1st April 2015 and salary outstanding is Rs. 2500 on 31st March 2016.
07
What journal entries will be passed in each of the following cases for issue and redemption of debenture?
07
2
A. 1000- Debentures of Rs. 100 each issued at Rs. 98 and repayable at par.
B. 1000- Debentures of Rs. 100 each issued at par and repayable at Rs. 102
C. 1000- Debentures of Rs. 100 each issued at Rs. 98 and repayable at Rs. 102
OR
Q.3
Following is the trial balance of Mahesh Limited as on 31st March 2016
Particulars
Debit Amount
Credit Amount
Equity Share Capital
300000
12% Preference Share Capital
200000
Reserve fund
150000
Building
500000
10% Debenture
200000
Plant Machinery
200000
Purchases Sales
250000
600000
Salary
60000
Debtors Creditors
230000
175000
Bills
80000
90000
Director's Fees
20000
Bad Debts
5000
Returns
15000
20000
Wages
15000
Opening Stock
45000
P&L Account 1-04-2015
60000
Loose Tools
60000
Goodwill
80000
Discount of issue of shares
20000
Cash and bank balances
33000
12% Investments
200000
Interest of Investments
18000
Total
1813000
1813000
Adjustments:-
1. Closing Stock is valued at Rs. 140000
2. Outstanding Wages Rs. 2500
3. Debenture interest is outstanding for current year
4. Write off further bad debts Rs. 5000
5. Building and Plant Machinery to be depreciated by and 10% respectively.
6. Transfer Rs. 25000 to reserve.
7. The director propose 15% dividend to equity shareholders.
You are required to prepare company's Income Statement a/c in vertical format with necessary working notes
07
Prepare the Balance Sheet of Mahesh Limited as per the information given in above question (Q.3 in Company form with necessary working notes
07
Q.4
What do you mean by Goodwill? Describe in which circumstances valuation of goodwill is necessary.
07
X and Y are partners in a firm. The Balance sheet of their business on 31 March 2016 is as follows:-
Balance Sheet as on 31st March 2016
Creditors
34000
Cash
10000
General Reserve
50000
Stock
50000
Profit Loss a/c
18000
Debtors
80000
07
3
Capital X 110000
Y 83000
193000
Furniture
10000
Machinery
100000
Goodwill
45000
295000
295000
The above business is intended to be purchased by Z. The assets have been revalued as follows: Stock Rs. Furniture Rs.8000/-, Machinery Rs. 150000/-. It has been agreed that provision for bad debts on debtors is to be made on debtors in future. Future Rate of depreciation is on Furniture 15% on Machinery.
The profits of the past five years are like this 2011-12 Rs. 60000, 2012-13 Rs.50000, 2013-14 Rs.30000, 2014-15 Rs.40000, 2015-16 Rs. 65000.
The normal rate of profit on average capital employed is 15% p.a. Ignore income tax.
Calculate the amount of goodwill on the basis of Actual Average Super Profit by Capitalization method.
OR
Q.4
Under what circumstances it become necessary to determine the value of shares of a concern? What points are taken into consideration while determining the value of shares?
07
On the basis of the following information of Jai Shree Ltd. Calculate value of its equity share on the basis of Expected rate of Return Method.
50000 Equity Shares of Rs. 100 each Rs 80 paid up Rs. 40,00,000
10% Preference Share Capital Rs. 20,00,000
Profit before Tax Rs. 65,38,461
Rate of Taxation 35%
Normal Rate of Return 15%
07
Q.5
Explain the meaning and importance of funds flow statement. How funds flow statement is is prepared?
07
From the following Balance Sheet of Bharat Company Ltd., prepare statement of change in working capital.
Balance Sheets of Bharat Company Ltd.
Liabilities
31/03/15
31/03/16
Assets
31/03/15
31/03/16
Share Capital
500000
500000
Fixed Assets
600000
700000
Debenture
370000
450000
Long-term Investment
200000
100000
Tax payable
77000
43000
Work in Progress
80000
90000
Accounts payable
96000
192000
Stock in trade
150000
225000
Interest payable
37000
45000
Bills Receivables
70000
140000
Dividend payable
50000
35000
Cash
30000
10000
1130000
1265000
1130000
1265000
07
OR
Q.5
Jindal Steel Ltd.'s transactions for the ending March 31, 2016 includes the following:-
1. Purchased real estate for Rs. 500000 which was borrowed from a bank
2. Sold investment securities worth Rs. 600000.
3. Paid dividend Rs. 300000.
4. Issued 500 equity shares for Rs.350000.
5. Purchased machinery and equipments for Rs. 175000.
6. Paid Rs. 750000 towards a bank loan.
7. Accounts receivable outstanding of Rs. 100000 was paid.
07
4
8. Accounts payable were increased by Rs. 190000.
Calculate the net cash flow from Investing and Financing activities
Calculate the Cash flow from operations from the following information
Particulars
2014
2015
Debtors
50000
47000
Bills Receivables
10000
12500
Creditors
20000
25000
Bills payable
8000
6000
Outstanding expenses
1000
1200
Prepaid Expenses
800
700
Accrued income
600
750
Income received in advance
300
250
Profit during the year
130000
.
07
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