QP CODE: 21102855: Reg No: Name

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21102855

QP CODE: 21102855 Reg No : .....................

Name : .....................

B.Com DEGREE (CBCS) REGULAR/SUPPLEMENTARY EXAMINATIONS,


OCTOBER 2021
Fourth Semester
Core Course - CO4CRT11 - CORPORATE ACCOUNTING II
(Common for B.Com Model II Computer Applications ,B.Com Model II Finance & Taxation,B.Com
Model II Marketing,B.Com Model II Travel & Tourism,B.Com Model III Office Management &
Secretarial Practice ,B.Com Model III Taxation ,B.Com Model III Computer Applications ,B.Com
Model I Co-operation ,B.Com Model I Marketing ,B.Com Model I Finance & Taxation ,B.Com Model
I Travel & Tourism ,B.Com Model II Logistics Management )
Regular Candidates : 2019 Admission only
Private Candidates : 2017 Admission onwards
5217FCE9
Time: 3 Hours Max. Marks : 80
Instructions to Private candidates only: This question paper contains two sections. Answer
SECTION I questions in the answer-book provided. SECTION II, Internal examination questions
must be answered in the question paper itself. Follow the detailed instructions given under
SECTION II
SECTION I
Part A
Answer any ten questions.
Each question carries 2 marks.

1. What is register of claims?

2. What is annuity?

3. What do you mean by statutory reserve of a Banking Company?

4. What are Non performing Assets?

5. Difference between consolidation and subdivision of share capital

6. 30,000 equity shares of Rs. 100 each are reduced to fully paid shares of Rs. 60 each
Journalise.

7. As per capital reduction scheme adopted by a company , 10,000 7% debentures of Rs.


100 each are reduced to Rs. 80 each and the trade creditors have agreed to reduce

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their claim from Rs. 50,000.to Rs. 20,000 Journalise.

8. What is business purchase account?

9. Pass the journal entry in the book of Transferor for the liquidation expenses of Rs 10000/-

10. Pass the journal entry for the liquidation expenses of Rs 5000/- borne by the transferee
company in the book of transferee.

11. What is Voluntary Winding Up?

12. What is Deficiency Account?


(10×2=20)
Part B
Answer any six questions.
Each question carries 5 marks.

13. Revenue account of a life insurance company discloses a surplus of Rs.25,00,000 on


31.03.2019 before taking the following:

a. A claim of intimated but not admitted Rs.20,000


b. Bonus in reduction of premium Rs.50,000
c. Annuities outstanding Rs.25,000
d. Surrender value adjusting against loan on policies Rs.10,000
e. Claim covered under reinsurance Rs.8,000
f. Reinsurance premium Rs.5,000

Pass the necessary journal entries for the above omissions and recomputed the correct
surplus for the year

14. How do you prepare valuation balance sheet?

15. State the different items shown under other liabilities and provisions in bank
balancesheet.

16. Distinguish between internal reconstruction and absorption

17. Green ltd.has an equity share capital of Rs.10,00,000 consisting of 10,000 shares of Rs.
100 each .It is resolved and sanction of the court has been obtained .
1)To subdivide the shares into fully paid equity shares of Rs.10 each.
2) 80 % of the shares to be surrendered to the company .
3) 40,000 of surrendered shares to be issued to15% debentures of Rs. 5,00,000
in full settlement of their claim .

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4) 20,000 of the surrendered shares to be issued as fully paid to creditors of Rs.
2,50,000.
5)The balance of the surrendered shares to be cancelled .
6) To write off debit balance of in P&L account Rs. 3,20,000, goodwill
Rs.3.80,000, preliminary expenses Rs. 1,50,000 and balance to be transferred
to capital reserve. Give Journal entries to implement the scheme

18. What do you mean by Amalgamation? Explain its main objectives.

19. Amalgamation in the nature of merger is more stronger than amalgamation in the nature
of purchase - Why?

20. What is External Reconstruction? Explain its features.

21. Explain the duties entrusted with the liquidator?


(6×5=30)
Part C
Answer any two questions.
Each question carries 15 marks.

22. The following are extracted from the books of Star Fire Insurance Company Ltd. as on 31.03.2019.
Premium less reinsurance 82,00,000
Interest and dividend less tax 21,00,000
Commission of reinsurance ceded 30,000
Commission on direct business 40,000
Commission on reinsurance accepted 1,45,000
Claims paid less reinsurance 41,00,000
Claims outstanding on 31.03.2019 3,00,000
Claims outstanding on 01.04.2018 2,40,000
Reserve for unexpired risk on 01.04.2018 26,00,000
Salaries 3,40,000
Directors remunerations 60,000
Rent and taxes 80,000
Printing, postage etc 24,000
Additional reserve on 01.04.2018 4,00,000
Reserve for unexpired risk is to be maintained at 50% of premium income. Additional reserve is to
be increased by Rs.60,000.
Prepare revenue account t for the year ending 31.03.2019

23. Give the formats of a bank Balancesheet and profit and loss Account?

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24. The business of the Bharath Ltd. is purchased by Nero Ltd. The purchase consideration
to be discharged as follows:-

1. A payment in cash at Rs 20/- for every share in Bharath Ltd.


2. Further payment in cash at Rs 50/- for every debenture in the Bharath Ltd. in
full discharge of the debentures and
3. An exchange of 4 shares in the Nero Ltd. of Rs 10/- each (Market price at Rs
15) for every share in the Bharath Ltd.

The Balance Sheet of Bharath Ltd. stood as follows at the date of purchase.
Liabilities Amount Assets Amount
Share capital ( 10 each ) 50000 L& B 19000
P&L A/C 1500 Furniture 4500
6% Debentures (50Each ) 6000 Machineries 19000
CRR 2500 Stock in trade 11500
Contingency Reserve 1800 Debtors 10000
Creditors 4500 Bank 2300
66300 66300

Give the Journal entries in the books of both the companies and the important ledger
account in the Bharath Ltd., Liquidation expenses is borne by Nero Ltd.

25. Following is the Balance Sheet of M/s Unfortunate Ltd as on 31st March
2018.
₹ ₹
Liabilities Assets

Share Capital- Land &


Authorized & Subscribed- Buildings
4000 6% Preference shares of ₹ 4,00,000 2,00,000
100 each Plant &
1,50,000 Machinery 5,00,000
20,000 Equity shares of ₹ 100
each, ₹ 75 per share paid up Patents 80,000
3,60,000
6000 Equity shares of ₹ 100 each, Stock 1,10,000
₹ 60 per share paid up
2,00,000 Sundry Debtors 2,20,000
5% Debentures (having a floating
charge on all assets) Cash at Bank 60,000
10,000

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Interest outstanding on debentures Profit & Loss 2,40,000
2,90,000 A/c
Creditors

Total 14,10,000 14,10,000

On that date, the company went into liquidation. The dividends on preference shares
were in arrear for two years. The arrears are payable on liquidation as per the Articles of
the company. Creditors include a loan of ₹ 1,00,000 on mortgage of Land & Buildings.
The assets realized as under-

Land & Buildings 2, 40,000
Plant & Machinery 4, 00,000
Patents 60,000
Stock 1, 20,000
Sundry Debtors 1, 60,000

The expenses of liquidation amounted to ₹ 21,800. The liquidator is entitled to a


commission of 3% on all assets realized except cash at bank and a commission of 2% on
the amount distributed among unsecured creditors. Preferential creditors amount to ₹
30,000. All payments were made on 30th September 2018.

(2×15=30)

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