Exam Details
Subject | company accounts and auditing practices | |
Paper | ||
Exam / Course | m.b.a. in corporate secretaryship | |
Department | ||
Organization | alagappa university | |
Position | ||
Exam Date | April, 2016 | |
City, State | tamil nadu, karaikudi |
Question Paper
M.B.A(CS). DEGREE EXAMINATION, APRIL 2016
COMPANY ACCOUNTS AND AUDITING PRACTICES
(2012 onwards)
Time 3 Hours Maximum 75 Marks
Part A 3 15)
Answer all questions.
1. What is known as Accounting Standard
2. What do you understand by the term forfeiture of shares.
3. Write any three advantages of EVA.
4. What is known as amalgamation.
5. On the basis of nature, how auditing is classified.
Part B 10 50)
Answer all questions choosing either or
6. What are the essentials of Good internal control?
How evaluation of Internal control is helpful to the
auditor and how is it attempted.
Or
What are the quality control policies to be followed
by an audit firm?
Sub. Code
622304
RW-11026
2
ws 18
7. K.K. Ltd. has issued Rs.5,00,000 preference
shares of Rs.10 each due for redemption at
premium on 1st January, 2012. These shares are to
be redeemed out of otherwise available profits
which consist of Rs.4,00,000 in profit and loss
account Rs.2,00,000 in general reserve and
Rs.50,000 in securities premium account. On the
due date preference shares are redeemed. The
company has sufficient cash to pay off the
preference shareholders.
Journalize in the books of K.K. Ltd. of Rajasthan.
Or
Discuss in brief different method of redeeming
preference share.
8. Discuss the circumstances under which valuation of
share is necessary.
Or
From the following particulars, calculate goodwill
on the basic of 3 year purchase of super profit.
Rs.
Capital employed 50,000
Trading Profit after Tax 2011 12,200
2012 15,000
2013 2,000
(loss)
2014 21,000
Normal Rate of interest on investment 10% p.a.
Remuneration from alternative employment
Rs. 3,600 p.a. (including in above Profit)
9. What do you mean by Economic value added? How
is EVA related to valuation.
Or
Discuss when a joint stock company can pay
dividend out of capital profit.
RW-11026
3
ws 18
10. Define Accounting Standards? Explain the
Relevance and significance of Accounting Standard.
Or
Explain GAAP in detail.
Part C 10 10)
Compulsory
11. The creditors and shareholders having agreed upon a
scheme of reconstruction, the Indo British Co. Ltd. went
into voluntary liquidation. The balance sheet at the date
of reconstruction as under:
Liabilities Amount
Rs.
Assets Amount
Rs.
Share Capital A/c Good will 40,000
25,000 shares of
Rs.10 each
2,50,000 Factory Building A/c 95,000
Debentures A/c 1,00,000 Plant A/c 1,05,000
Trade Creditors A/c 40,000 Stock A/c 50,000
Reserve for Doubtful
Debts A/c
7,000 Debtors A/c 60,000
Depreciation Fund A/c 20,000 Cash at Bank A/c 2,000
Profit and Loss A/c
(Debit balance)
65,000
4,17,000 4,17,000
The scheme of reconstruction provided as follows:
That a new company be formed with a share capital
of Rs.5,00,000 in 50,000 shares of Rs. 10 each to
takeover, from the above company, stock and
debtors at 20% less than the book value and factory
buildings and plant at Rs.77,000 and Rs. 1,00,000
respectively.
RW-11026
4
ws 18
The debentures holders were to be satisfied by the
issue of mortgage debentures of Rs.1, 05,000 in
the new company in exchange for old debentures.
The trade creditors agreed to receive Rs. 35,000
from the new company in full settlement of their
claims.
The shareholders agreed to receive 25,000 shares of
Rs. 10 each, credited with Rs. 5 per share paid-up,
with a call of Rs. 2.50 per share to be made
forthwith.
The bank balance was utilized fully in payment of
reconstruction expenses.
You are required to give the necessary accounts to
close the books of the old company, the opening
journal entries and balance sheet of the new
company assuming that the call made on the
shareholders was duly received.
COMPANY ACCOUNTS AND AUDITING PRACTICES
(2012 onwards)
Time 3 Hours Maximum 75 Marks
Part A 3 15)
Answer all questions.
1. What is known as Accounting Standard
2. What do you understand by the term forfeiture of shares.
3. Write any three advantages of EVA.
4. What is known as amalgamation.
5. On the basis of nature, how auditing is classified.
Part B 10 50)
Answer all questions choosing either or
6. What are the essentials of Good internal control?
How evaluation of Internal control is helpful to the
auditor and how is it attempted.
Or
What are the quality control policies to be followed
by an audit firm?
Sub. Code
622304
RW-11026
2
ws 18
7. K.K. Ltd. has issued Rs.5,00,000 preference
shares of Rs.10 each due for redemption at
premium on 1st January, 2012. These shares are to
be redeemed out of otherwise available profits
which consist of Rs.4,00,000 in profit and loss
account Rs.2,00,000 in general reserve and
Rs.50,000 in securities premium account. On the
due date preference shares are redeemed. The
company has sufficient cash to pay off the
preference shareholders.
Journalize in the books of K.K. Ltd. of Rajasthan.
Or
Discuss in brief different method of redeeming
preference share.
8. Discuss the circumstances under which valuation of
share is necessary.
Or
From the following particulars, calculate goodwill
on the basic of 3 year purchase of super profit.
Rs.
Capital employed 50,000
Trading Profit after Tax 2011 12,200
2012 15,000
2013 2,000
(loss)
2014 21,000
Normal Rate of interest on investment 10% p.a.
Remuneration from alternative employment
Rs. 3,600 p.a. (including in above Profit)
9. What do you mean by Economic value added? How
is EVA related to valuation.
Or
Discuss when a joint stock company can pay
dividend out of capital profit.
RW-11026
3
ws 18
10. Define Accounting Standards? Explain the
Relevance and significance of Accounting Standard.
Or
Explain GAAP in detail.
Part C 10 10)
Compulsory
11. The creditors and shareholders having agreed upon a
scheme of reconstruction, the Indo British Co. Ltd. went
into voluntary liquidation. The balance sheet at the date
of reconstruction as under:
Liabilities Amount
Rs.
Assets Amount
Rs.
Share Capital A/c Good will 40,000
25,000 shares of
Rs.10 each
2,50,000 Factory Building A/c 95,000
Debentures A/c 1,00,000 Plant A/c 1,05,000
Trade Creditors A/c 40,000 Stock A/c 50,000
Reserve for Doubtful
Debts A/c
7,000 Debtors A/c 60,000
Depreciation Fund A/c 20,000 Cash at Bank A/c 2,000
Profit and Loss A/c
(Debit balance)
65,000
4,17,000 4,17,000
The scheme of reconstruction provided as follows:
That a new company be formed with a share capital
of Rs.5,00,000 in 50,000 shares of Rs. 10 each to
takeover, from the above company, stock and
debtors at 20% less than the book value and factory
buildings and plant at Rs.77,000 and Rs. 1,00,000
respectively.
RW-11026
4
ws 18
The debentures holders were to be satisfied by the
issue of mortgage debentures of Rs.1, 05,000 in
the new company in exchange for old debentures.
The trade creditors agreed to receive Rs. 35,000
from the new company in full settlement of their
claims.
The shareholders agreed to receive 25,000 shares of
Rs. 10 each, credited with Rs. 5 per share paid-up,
with a call of Rs. 2.50 per share to be made
forthwith.
The bank balance was utilized fully in payment of
reconstruction expenses.
You are required to give the necessary accounts to
close the books of the old company, the opening
journal entries and balance sheet of the new
company assuming that the call made on the
shareholders was duly received.
Other Question Papers
Subjects
- company accounts and auditing practices
- company law and practice – i
- company law and practice – ii
- corporate compliance management
- direct tax laws
- economic and other legislations
- general laws
- securities laws and regulation of financial markets