6

434667

9
D 51673 (Pages : 5) Name.........................................

Reg. No.....................................

3
THIRD SEMESTER (CBCSS—UG) DEGREE EXAMINATION
NOVEMBER 2023

1
B.Com.

BCM 3B 04—CORPORATE ACCOUNTING

(2019—2022 Admissions)

Time : Two Hours and a Half Maximum : 80 Marks

Answers should be written in English only.

6
Section A

Answer all the questions.

2 marks each.

9
Maximum 25 Marks.

1. What do you mean by redemption of debentures ?

3
2. What is sum assured in life insurance ?

3. What do you mean by right issue ?

1
4. What is an endowment policy ?

5. What is a sub-standard asset ?

6. What is Capital Redemption Reserve ?

7. What do you mean by surrender value ?

8. What are consolidated financial statements ?

9. What are basic earnings per share ?

6
10. What is an adjusting event ?

11. What is cash bonus ?

9
12. What do you mean by rebate on bills discounted ?

13. What do you understand by negative goodwill ?

14. What is a group company ?

3
15. What do you mean by pre-acquisition profit ?

(15 × 2 = 30 Maximum ceiling 25 Marks)

1
Turn over

434667
 6
434667

9
2 D 51673

Section B

3
Answer all the questions.
5 marks each.

1
Maximum 35 Marks.

16. Explain the different kinds of preference shares.

17. What are the different kinds of life insurance policies ?

18. What is post acquisition profit ? How is it treated ?

19. Explain the provisions for the issue of bonus shares.

20. What are the various sources of buy back ?

6
21. The following is the extract of balance sheet of Sun Ltd. As at 31.03.2020 :

Share capital :

9
10,000 equity shares of Rs. 10 each ... 1,00,000

10,000, 8 % preference shares of Rs. 10 each ... 1,00,000

3
Capital Reserve ... 50,000

General Reserve ... 30,000

1
Profit and Loss A/c ... 85,000

The company decided to redeem the preference share capital on 01.04.2020. Show journal entries.

22. In respect of the following transactions of Safety Bank Ltd. you are required to pass necessary
journal entries as well as their treatment in the final accounts in respect of the year ended
31-12-2018. The following bills are discounted at 5 %.

Discounted on Amount Term

6
23-12-2018 50,000 3 months

19-09-2018 1,00,000 4 months

9
20-10-2018 4,00,000 3 months

30-11-2018 30,000 5 months

3
23. A company purchased Rs. 30,000, 6 % debentures (own) in Rs. 100 each at Rs. 95 each for investment.
After six months, the debentures were cancelled. Show journal entries.

1
(8 × 5 = 40 Maximum ceiling 35 Marks)

434667
 6
434667

9
3 D 51673

Section C

3
Answer any two of the following.
10 marks each.

1
24. The following are the ledger balances of Bombay Bank Ltd. Prepare final accounts as on
31-3-2018 :

Share capital (20,000 shares of Rs. 100 each) ... 20,00,000

Reserve Fund Investment ... 10,00,000

General expenses ... 1,82,000

Current deposits ... 2,02,44,000

6
Interest paid ... 1,61,000

Savings deposits ... 29,20,000

9
Fixed deposits ... 40,00,000

P and L A/c balance brought forward ... 2,30,000

3
Discount received ... 1,80,000

Rebate on bills discounted ... 64,000

1
Statutory Reserve (Opening) 10,00,000

Commission, exchange and brokerage ... 44,000

Cash ... 2,27,000

Interest received ... 5,32,000

Cash with RBI ... 20,12,000

6
Balance with other banks ... 2,00,000

Short loans (Cr.) 64,82,000

9
Loans and advances to customers ... 1,55,85,000

Investments ... 98,83,000

3
Bills discounted ... 62,28,000

Premises ... 22,18,000

1
Turn over

434667
 6
434667

9
4 D 51673

Additional Information :

3
(1) Provision for bad debts required Rs. 1,29,000

(2) The bank had bills for collection Rs. 5,00,000 and acceptances, endorsements and guarantees

1
Rs. 16,00,000

(3) The P and L A/c balance is the balance left after the payment of interim dividend amounting
to Rs. 2,00,000

25. From the following particulars, prepare the revenue account of Sundar Life Insurance Co. Ltd. for
the year ended 31-03-2020 :

Premiums - First year ... 610,000

6
Renewal premiums ... 130,000

Premium on reinsurance ceded ... 80,000

9
Premium on reinsurance accepted ... 60,000

Commission paid on first year premium ... 42,000

3
Commission paid on renewal premium ... 3,000

Commission on reinsurance accepted ... 15,000

1
Commission on reinsurance ceded ... 4,000

Interim bonus to policy holders ... 22,000

Interests and rent received - gross ... 200,000

Claims by death ... 200,000

Claims by maturity ... 230,000

Claims by death ceded in reinsurance ... 25,000

6
Claims by maturity ceded in reinsurance ... 15,000

Claims by death accepted in reinsurance ... 18,000

9
Claims by maturity accepted in reinsurance ... 6,000

Annuities paid ... 35,000

3
Surrenders ... 22,000

Salaries ... 30,000

1
434667
 6
434667

9
5 D 51673

Rent, rates and taxes ... 9,000

3
Audit fee ... 6,000

Law charges ... 4,000

1
Life Assurance Fund on 01-04-2019 ... 35,00,000

Net liability on life policies on 31-03-2019 ... 22,50,000

Net liability on life policies on 31-03-2020 ... 24,00,000

Transfer 10 % of surplus to shareholders, 10 % to general reserve and balance to fund for future
appropriations.

6
26. What is meant by redemption of preference shares ? Explain the conditions and procedure for the
redemption of preference shares.

27. Arjun Ltd. had issued 50,000 debentures of Rs. 100 each redeemable at par. The company purchased

9
5,000 debentures from the open market for immediate cancellation at Rs. 95 each just after the
due date of debenture interest. Pass the journal entries for purchase of own debentures for immediate
cancellation.

3
(2 × 10 = 20 marks)

1
3 96
1
434667
 6
434667

9
D 51673-A (Pages : 4) Name........................................

Reg. No.....................................

3
THIRD SEMESTER (CBCSS—UG) DEGREE EXAMINATION
NOVEMBER 2023

1
B.Com.

BCM 3B 04—CORPORATE ACCOUNTING

(2019—2022 Admissions)
(Multiple Choice Questions for SDE Candidates)

6
Time : 15 Minutes Total No. of Questions : 20 Maximum : 20 Marks

9
INSTRUCTIONS TO THE CANDIDATE

3
1. This Question Paper carries Multiple Choice Questions from 1 to 20.

2. The candidate should check that the question paper supplied to him/her contains all the

1
20 questions in serial order.

3. Each question is provided with choices (A), (B), (C) and (D) having one correct answer.
Choose the correct answer and enter it in the main answer-book.

4. The MCQ question paper will be supplied after the completion of the descriptive
examination.

3 96
1
434667
 6
434667

9
2 D 51673-A

BCM 3B 04—CORPORATE ACCOUNTING

3
(Multiple Choice Questions for SDE Candidates)

1. When all debentures are redeemed, balance in the Debenture Redemption Fund Account is

1
transferred to :

(A) Capital Reserve. (B) General Reserve.

(C) Profit and Loss Appropriation A/c. (D) None of these.

2. If debentures purchased in open market are not immediately cancelled, they are treated as :

(A) Current Assets. (B) Current Liabilities.

(C) Investment. (D) Capita.

6
3. Sources of finance of the redemption of debentures are :

(A) Redemption out of profits.

9
(B) Redemption out of capital.

(C) The proceeds from fresh issue of shares/debentures.

3
(D) All the above.

4. Loss on Issue of Debenture Account is shown :

1
(A) On Assets side of Balance Sheet.

(B) On Liabilities side of Balance Sheet.

(C) On Credit side of P and L Account.

(D) None of these.

5. Profit on cancellation of own debentures is :

6
(A) Revenue Profit. (B) Capital Profit.

(C) Operating Profit. (D) Trading Profit.

9
6. Discount on issue of Debentures is a :

(A) Capital loss. (B) Revenue loss.

3
(C) Capital profit. (D) Revenue profit.

7. The income of the banking interest comes from :

1
(A) Deposit Received. (B) Interest on Deposit.

(C) Interest on Loan. (D) All of the above.

434667
 6
434667

9
3 D 51673-A

8. Life insurance contract is a contract of :

3
(A) Indemnity. (B) Guarantee.

(C) Both of the above. (D) None of the above.

1
9. Which of the following are the statutory books of insurance companies ?

(A) Register of policies.

(B) The register of claims.

(C) The register of Licensed Insurance agents.

(D) All of the above.

6
10. In case of life insurance companies, which account is prepared to ascertain profit ?

(A) Revenue account. (B) Profit and loss account.

9
(C) Valuation balance sheet. (D) None of these.

11. Valuation Balance sheet is :

3
(A) A statement of assets and liabilities on a particular date.

(B) Prepared to determine profit by comparing life insurance fund with net liability.

1
(C) A statement of all assets and liabilities as market value.

(D) None of the above.

12. The agreement of insurance between insurer and insured is called as :

(A) Policy. (B) Premium.

(C) Annuity. (D) None of these.

13. The debit balance in profit and loss Account is to be ————————.

6
(A) Reduced from Share capital.

(B) Reduced from Reserve.

9
(C) Disclosed as miscellaneous expenditure.

(D) Shown as a note to account.

3
14. In Balance Sheet, securities premium should be shown under ————————.

(A) Share Capital. (B) Reserves and Surplus.

1
(C) Current Liabilities. (D) Fixed Assets.
Turn over

434667
 6
434667

9
4 D 51673-A

15. Which of the following items appears on the assets side of Balance Sheet ?

3
(A) Capital Reserve. (B) Security Premium.

(C) Sinking Fund Investment. (D) Specific Reserve.

1
16. Arrears of preference dividend is shown as a ————————.

(A) Current Liability.

(B) Note to Balance sheet as contingent liabilities.

(C) Deduction form preference share capital.

(D) Addition to preference share capital.

6
17. Interim dividend of a company can be declared by ————————.

(A) Shareholder. (B) Board of Directors.

9
(C) M.D. (D) SEBI.

18. Which of the following types of companies/organization issue ULIP ?

3
(A) Insurance companies. (B) Banks.

(C) NABARD. (D) RBI.

1
19. Which of the following is the regulator of Insurance Sector in India ?

(A) RBI. (B) AMFI.

(C) IRDA. (D) SEBI.

20. Which of the following term is NOT related to the insurance sector ?

(A) Indemnity. (B) Coverage.

(C) Misuse alert. (D) Annuity.

3 96
1
434667