DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2017.
Second Semester
CORPORATE ACCOUNTING
(Upto 2012-13 Academic Year and 2013 Calendar Year)
Time Three hours Maximum 100 marks
PART A — 8 40 marks)
Answer any FIVE questions.
1. What are the provisions relating to issue of shares at
discount?
2. Write the procedure to be adopted for allocating profits
prior to incorporation between pre and post incorporation
period.
3. Explain the treatment of inter- company owings under
amalgamation and absorption.
4. Distinguish between capital profits and revenue profits.
5. Examine the importance of establishing common
accounting standards.
6. Explain the provisions relating to issue of bonus shares.
Sub. Code
25
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7. Prepare P L A/C of New Bank Ltd. from the following
Rs. Rs.
Interest on loans 2,60,000 Interest on cash
credit
2,25,000
Interest on F.D. 2,80,000 Rent and taxes 20,000
Commission 9,000 Interest on
overdraft
56,000
Establishment
Expenses
56,000 Directors fees 4,500
Discount 2,00,000 Interest on SB A/c 70,000
Interest on current
a/c
45,000 Postage and
telegram
1,500
Printing 3,000 Sundry creditors 1,800
8. A Ltd. Co invites application for 20,000 equity shares of
Rs. 10 each at a premium of Rs. 2 per share payable as
follows: on application Rs. on allotment Rs. on call
Rs. 4. Applications were received for 30,000 shares and
pro rata allotment was made for 24,000 shares. The
remaining applications were rejected. Mr. X to whom 400
shares were allotted failed to pay the allotment money
and call money and his shares were forfeited. Journalise.
PART B — × 15 60 marks)
Answer any FOUR questions.
9. Explain in detail the different types of shares.
10. How will you treat outstanding expenses and prepaid
expenses while preparing final accounts of companies?
11. Distinguish between external reconstruction and internal
reconstruction.
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12. Write the procedure to prepare a consolidated balance
sheet.
13. Prepare the schedules relating to P L Account of a
banking company with imaginary figures.
14. A company with an Authorised Capital of Rs. 30,00,000
invited applications for 2,00,000 shares of Rs. 10 each at
a premium of Re. 1. The shares are payable as follows:
On application Rs.3; on allotment Rs.4 (including
premium); on first and final call Rs.4.
There was over subscription and applications were
received for 3,60,000 shares.
Allotment was made as under:
To applicants of 1,50,000 shares 1,50,000 shares
To applicants of 25,000 shares NIL
To applicants of 1,85,000 shares 50,000 shares
Excess money paid on application was adjusted against
sums due on allotment and first call. All money due was
received. Give Journal Entries.
15. The following is the P L Account of P Ltd. for the year
ended 31.12.2014
Rs. Rs.
To salaries and
wages
1,28,000 By gross profit 5,08,000
To director's fees 4,000 By capital profit
on sale of
Company's land
25,000
To repairs 27,000 By subsidy from
Govt.
50,000
To depreciation
(Including Devt.
Rebate Rs. 16,000)
1,06,000
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To scientific research
(Cost of Apparatus)
20,000
To general expenses 15,000
To income tax 1,00,000
To proposed dividend 1,00,000
To interest on
debentures
24,000
To net profit 59,000
5,83,000 5,83,000
Income Tax authorities have allowed Rs.82,000 as
depreciation excluding Devt. Rebate. Calculate the
remuneration payable to managing director.