Corporate Accounting - I Semester Examination
Corporate Accounting - I Semester Examination
1. Define a Share?
2. Define a Debenture?
3. What is meant by Acquisition of business?
4. What is Forfeiture of Share?
5. What is Capital redemption reserve?
6. How do you calculate Time & Sales ratio?
7. Define Current Assets?
8. What are Tangible Assets?
9. Define the term dividend?
10. What do you mean by Redemption of shares?
Section-B (5x5=25)
Answer any Five Question
11. Write about the salient features of Company
12. The Bangalore bottling co ltd., issued a prospectus inviting applications for 100000 equity
shares of rs.10 each, payable as Rs .2 on application, Rs. 3 on allotment and the balance at
the discretion of the directors. Applications for 120000 shares were received. The directors
allotted the shares as follows:
Give journal entries, assuming that the entire sum due on allotment has been received and no
call has been made.
13. A company has 10,000 9% redeemable preference shares of Rs 100 each fully paid. The
company decides to redeem the share on 31 st Dec. 1997 at premium of 10%. The
company makes the following issues:
(i) 6,000 equity shares of Rs. 100 each at premium of 10%
The issue was fully subscribed and allotments were made. The redemption was duly
carried out. The company has sufficient profit. You are required to give the
necessary entries
14. CM & co which was run by Muthu and Krishnan was taken over by Anna Ltd. On 31st
Dec 1985. The Balance sheet of Tamil Nadu & co. was as follows:
Liabilities Rs Assets Rs
64,800 64,800
The company takes over assets and liabilities. The purchase consideration was agreed at Rs.
40,830 Out of this Rs. 33,000 in equity shares of Rs. 100 each at 10% premium and for the balance
cash is to be given. Anna Ltd. Valued the stock and typewriter at 10% and 20% respectively less
than the book value. Machinery was valued at Rs. 25,000.
Give Journal entries in the books of the purchasing companying.
15. Raja ltd. was incorporated on 1-7-94, which took over a running concern with effect from
1-1-94. The sales for the period up to 1-7-94 was Rs. 2, 70,000 and the sales form 1-7-94
to 31-12-94 amounted to Rs. 3, 30,000
The expenses debited to profit & loss account included:
. 16. From the following particulars, ascertain Profit prior to and after incorporation
Salaries 96,000
Advertisement 50,000
17. Mukesh And co. ltd was registered on 1-1-1999 to buy the business of M/s. Mukesh bros.
as on 1-10-1998 and obtained the certain of commencement of business on 1-2-99. The
accounts of the company for the period of 12 months ended 30-9-1999 disclosed the Net
profit of Rs 1,25,000 after having charged the following amount:
Salary: Rs 30,000 (There were 4 employees in the pre incorporation period and 7 in post
incorporation period)
Wages: Rs. 10,920 (There were 4 workers in the pre incorporation period and 5 in the post
incorporation period and the rate of wages were Rs. 160 and Rs.200 per month per worker in
the pre- and post-incorporation period respectively)
Sales: Rs.4,80,000 of which Rs. 80,000 related to pre incorporation period.
You are required to calculate profit for pre- and post-incorporation period separately.
18. The following balances have been extracted from the book of Rama ltd. As on 31-march
2013
Share capital Rs.10,00,000
Machinery Rs.9,00,000
Prepare the balance sheet of the company as per Revised Schedule VI, part I of the
companies Act 1956.
PART - C
Answer any THREE questions (3x10 = 30)
19. Explain the different schedules in the balance sheet of the company as per Revised
Schedule VI.
20. NP Ltd. was formed with an authorized capital of Rs.12,00,000 divided into equity shares
of Rs.10 each, to acquire the business of ‘A’ and ‘P’ whose balance sheet on the date of
acquisition was as follows:
Liabilities Rs. Assets Rs.
Give journal entries to record the above and prepare the Balance Sheet of AR ltd. assuming the
vendor’s account is finally settled.
21. A., ltd, issued for public subscription 20000 shares of Rs 10 each at a premium of
Rs.2 per share payable as under:
‘B’ to whom 800 shares were allotted failed to pay the allotment money, 1st and 2nd calls
and ‘C’ to whom 1000 shares were allotted failed to pay the last two calls.
These shares were subsequently forfeited after the 2nd call was made. All these forfeited
shares were reissued to ‘w’ as fully paid at Rs. 8 per share.
Give journal entries to record the above transaction and prepare the balance sheet.
22. Big bulls Ltd. Has a nominal capital of Rs.6,00,000 divided into share of Rs.10 each. The
following trial balance is extracted from the books of the company as on 31.12.1987.
Rs. Rs.
Stock(1.1.87) 75,000
Furniture 7,200
Goodwill 25,000
Cash 750
Bank 39,900
Wages 84,800
Salaries 14,500
13,06,000 13,06,000
Prepare final accounts of the company for the year ending 31.12.87 in the prescribed form after
taking into account the following adjustments: