Exam Details

Subject advanced corporate accounting
Paper
Exam / Course m.com.commerce
Department
Organization alagappa university
Position
Exam Date April, 2016
City, State tamil nadu, karaikudi


Question Paper

M.Com. DEGREE EXAMINATION, APRIL 2016
Third Semester
ADVANCED CORPORATE ACCOUNTING
(CBCS 2012 onwards)
Time 3 Hours Maximum 75 Marks
Part A 3 15)
Answer all questions.
All questions carry equal marks.
1. Write a short note on Capital Redemption Reserve.
2. Distinguish between merger and purchase method of
amalgamation.
3. What is minority interest? Give the accounting treatment
for the same.
4. What is the meaning of ''Non-Performing Assets".
5. What is the need for Accounting Standards.
Part B 10 50)
Answer all questions, choosing either or
All questions carry equal marks.
6. Discuss any two models of Human Resources
Accounting.
Or
Sub. Code
611301
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Discuss in detail relevance of accounting for price
level changes.
7. Distinguish between Internal Reconstruction and
External Reconstruction.
Or
H. Ltd was incorporated with a share capital of
Rs. 12,00,000 in Rs. 10 shares. The Company
purchased machinery from XZ Co for Rs. 6,00,000
payable in fully paid shares of the company at
a premium of Rs. 2 per share. The directors also
decided to allot 6,000 shares credited as fully
paid to the promoters for their services. The rest of
the shares were issued for cash at a discount
of 10% and were taken up by the public. Give
journal entries and show the balance sheet.
8. On 14.1.2014, Rama Ltd issued 2500,8%
Debentures of Rs. 100 each at a discount.
Holders of the debentures have option to convert
their holdings into equity shares of Rs. 100
each at a premium of Rs. 25 per share at any time
within 3 years. On 31.3.2015, holders of 500
Debentures notified their intention to exercise the
option. Show the necessary journal entries in
the Company's books relating to issue and
conversion of the debentures. Also show how the
items affected would appear in the Company's
balance sheet.
Or
Ratna Corporation Ltd. was incorporated on 30th
June 2000 to purchase the business of
Soman from 1-1-2000. The annual accounts
prepared on 31-12-2000 disclosed that
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Sales for the year was Rs. 6,00,000 of which
Rs. 2,40,000 was for the first 6 months.
The gross profit for the year was Rs. 1,00,000
Director's fees paid was Rs. 10,000, bad
debts were Rs. 3,000, General expenses
Rs. 50,000.
Advertising (under a contract at Rs. 1,000 per
month) Rs. 12,000
Preliminary expenses written off Rs. 2,000 and
donation to charities given by the company
Rs. 3,000. Find out pre and post incorporation
profit.
9. While closing the books of account, a commercial
bank has its advances classified as follows:
(Amount: Rs. in lakhs)
Rs.
Standard assets 16,000
Sub-standard assets 1,300
Doubtful assets:
Up to one year 700
One to three years 400
More than three years 200
Loss assets 500
You are required to calculate the amount of
provisions to be made by the bank.
Or
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The following were the balance sheets of Large Ltd.
and Little Ltd. as on 31.12.2007.
Liabilities Large Little Assets Large Little
Ltd Ltd. Ltd. Ltd.
Share
Capital:
Buildings 90,000
10,000
Share Capital
of Rs. Shares in Little
Ltd.
10 each 1,00,000 20,000 at cost 28,000
General
Reserve 40,000 3,000
P&L A/c 30,000 Stock 25,000 8,000
Creditors 20,000 7,000 Debtors 35,000 7,000
Bank 12,000 2,000
P& L A/c 3,000
1,90,000 30,000 1,90,000
30,000
When the Large Ltd. acquired 80% of the shares in
Little Ltd. the latter had a credit balance of
Profit Loss A/c Rs. 2,000 and to General Reserve
Rs. 3,000. Prepare the consolidated balance
sheet.
10. The following are the figures extracted from the
books of New Era Bank Ltd., as on 31.3.2005
(figures in rupees)
Interest and
Discount received
37,05,738Commission, exchange and 1,90,000
Interest paid on
Deposits
20,37,452brokerage 65,000
Issued and
Subscribed
Capital
10,00,000Rent received
2,00,000
Salaries and
Allowances
2,00,000Profit on sale of investments 30,000
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Directors' fees
and allowances
30,000Depreciation on Bank's
properties 40,000
Rent and taxes
paid
90,000Stationery expenses 25,000
Postage and
telegrams
60,286Preliminary expenses 5,000
Statutory
Reserve Fund
8,00,000 Auditor's fees
Other information
Transfer 25% of Profit to Statutory Reserve
Provide Rs. 6,50,000 for doubtful debts
Rebate on bills discounted on 31.3.2004 was
Rs. 12,000 and on 31.3.2005 was Rs. 16,000.
Provide Rs. 6,50,000 for Income Tax.
The directors desire to declare 10% dividend
Prepare the Profit and Loss Account for the year
ended on 31.3.2005.
Or
S Ltd. has the capital of Rs.3,00,000 in shares of
Rs.10 each out of which H Ltd. purchased
80% at Rs.3,80,000. The profits of S Ltd. at the time
of purchase of shares by H Ltd. were
Rs.1,20,000. S Ltd. decided to make a bonus issue
out of pre acquisition profits of one share of
Rs.10 each fully paid for every three shares held.
Calculate the cost of control for H Ltd. before
and after the issue of bonus shares
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Part C 10 10)
Compulsory
11. The following are the balance sheets of Y Ltd. and X Ltd.
as on 31-3-2002.
Liabilities Y Ltd XLtd YLtd XLtd
Share
Capital:
Buildings 75,000 2,80,000
Shares of
Rs. 10 each
2,00,000 3,00,000Loan to X Ltd 40,000
P&L A/c 30,000 50,000 Investments in
50,000 Shares of
X Ltd.
50,000
Loan from
Y
Stock 55,000 70,000
Ltd 40,000 Debtors 20,000 35,000
Creditors 20,000 10,000 Cash at bank 10,000 15,000
2,50,000 4,00,000 2,50,000 4,00,000
X Ltd absorbs the business of Y Ltd. on the condition that
is has to issue the equal number of
shares of Rs. 10 each at Rs. 11 per share held by the
members of Y Ltd. Give the ledger accounts in the books
of Y Ltd. and journal entries in the of X Ltd; and also
prepare the balance sheet of X Ltd. after absorption(apply
purchase method).


Subjects

  • advanced business statistics
  • advanced corporate accounting
  • advanced cost accounting
  • advanced financial accounting
  • advanced management accounting
  • banking and financial services
  • business legislations
  • business research methods
  • computerised accounting
  • direct taxes
  • e-business applications
  • elective – business environment
  • elective – financial management
  • elective – modern banking
  • elective – services marketing
  • elective — e-commerce
  • elective — indirect taxes
  • elective — portfolio management
  • elective — principles of forex management
  • elective — retail marketing
  • entrepreneurship development
  • export - import documentation
  • financial management techniques
  • financial services and markets
  • human resource management
  • income tax law and tax planning
  • indirect tax law and tax planning
  • international business environment
  • investment management
  • management accounting
  • management of human resources
  • managerial communication
  • marketing management
  • portfolio management
  • principles and practice of management
  • principles of management
  • quantitative techniques
  • research methodology
  • special accounting
  • strategic business management