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Exam. Code 108503
Subject Code: 2115
B.Com. 3rd Semester
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CORPORATE ACCOUNTING
Paper-BCG-303
Time Allowed-Three Hours] [Maximum Marks-50
SECTION-A
Note :- Attempt any TEN questions in 5-6 lines. Each
question carries 1 mark.
1. Explain the following :
(i) Difference _between share and stock.
(ii) Restrictions to application of securities premium.
(iii) Give two sources of redemption of preference
shares.
(iv) Sources of buy back of shares.
(v) Debenture discount.
(vi) 'Contingent liability' with respect to Schedule III
of Companies Act.
(vii) Pooling interest method.
(viii) Causes for internal reconstruction.
(ix) Cash Reserve Ratio.
(x) Traveller's cheque.
(xi) Insurable interest.
(xii) Reinsurance accepted and ceded.
365(2118)/DAG-I0318 1 (Contd.)
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SECTION-B
Note :-Attempt any TWO questions. Each question carries
10 marks.
2. Explain the provisions of Companies Act regarding
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buy back of Shares.
3. Enumerate and describe different ways of issuing
debentures.
4. Sunrise Company Ltd. offered for public subscription
10,000 shares of Rs. 10 'each at Rs. 11 per share.
Money was payable as follows :
On application Rs.3
On allotment Rs. 4 (including premium) I
On first and final call Rs.4
Applications were received for 12000 shares and the
l
)
directors made pro-rata allotment. J
Mr. Ahmad, an applicant for 120 shares could not pay
the allotment and call money and Mr. Basu, a holder
of 200 shares, failed to pay the call. All these shares
were forfeited.
Out of forfeited shares, 150 shares (the whole
of Mr. Ahmad's shares being included) were issued
at Rs. ~ per share. Record journal entries for the
above transactions and prepare the share forfeited
account.
365(2118)IDAG-I0318 2 (Contd.)
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5. From the following trial balance of Shankar Ltd.
prepare Statement of Profit and Loss for the year ended
March
. 31, 2014 and the Balance Sheet as on that date,
'after making the necessary adjustments:
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. Debit balances Rs. Credit balances Rs.
Opening Stock 1,35,000 Share Capital
Rent. and taxes 6,000 (1,000 Shares of
Purchases 60,900 Rs. 100 each) . 1,00,000
Wages 55,200 5% Debentures 25,000
Discount 1,500 Sales 1,85,000
Coal and water 2,570 Creditors 1,18,000
I, Buildings 80,000 Bank overdraft 27,000
Carriage 1,200 Discount 2,200
~
Debtors 25,000 Transfer fees 100
I
Plant and Returns outward 2,125
Machinery 30,000
Goodwill 23,000
Advertisement 3,000
Bad debts 1,030
Debenture interest
(paid upto 30th
September, 2013) 625
Loose tools 6,000
365(2118)/DAG-I0318 3 (Contd.)
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Debit balances Rs . Credit balances Rs.
. General expenses 4,400
Salaries 20,000
,.
Insurance 1,000
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Cash and bank
balances 3,000
4,59,425 4,59,425
Adjustments:
(i) Closing Stock was valued at Rs. 1,35,000.
(ii) Plant and Machinery to be depreciated by 10%.
(iii) Loose tools to be revalued at Rs. 4,400.
(iv) Provide reserve for bad debts at 3% on debtors
and 2% reserve for discount of debtors.
(v) Provide for dividend on shares at 15%.
(vi) Transfer Rs. 10,000 to reserve fund.
SECTION-C
Note :-Attempt any TWO questions.Each questioncarries
10 marks.
6. Write notes on :
(a) Non Performing Assets
(b) Advances.
365(2Jl8)/DAG-I0318 4 (Contd.)
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.,
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7. Briefly explain :
(a) Types of Life Insurance Policies
.(b) Valuation Balance Sheet.
8. The following ledger balances of ABC Bank Ltd. as
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on 31 st March, 2016 are furnished as follows. Prepare
Profit and Loss Account and Balance Sheet as per
requirements of law :
Rs. (000) Rs. (000)
Statutory reserve 1,200 Cash 225
Bad debts written Interest earned 550
off 128 Balance with
Operatingexpenses 182 Reserve Bank 2,030
Current accounts 20,245 Balance with
Interest paid 160 Foreign Bank 1,206
Deposit accounts 6,920 Bills for Collection 1,500
Profit & Loss Account Borrowingsfrom
balance b/f 229 Banks 6,482
Bills receivables for Cash credits' and
customers 1,500 overdrafts 15,457
Discount 244 Investments 9,882
Endorsements and Bills discounted 6,228
guarantees 575 Premises 2,217
Commission 45 Share Capital 2,000
365(2118)/DAG-I0318 5 (Contd.)
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The following information is given :
(i) Rebate on bill discounted to be provided
Rs. 64,000.
(ii) The bank had paid an interim dividend of.
Rs. 2,00,000 during the year.
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9. The following Trial Balance was extracted from the
books of the Goodluck Life Assurance Company Ltd.
as on 31sl March, 2016 :
Dr. Cr.
Rs. in Crores Rs. in Crores
Paid up capital-
200 crore shares of
. Rs. 10 each 2,000
Life Assurance Fund
as on pI April 2015 59,446
Bonus to policy holders 630
Premium received 3,230
Claim paid 3,940
Commission paid 186
Management expenses 646
Mortgage in India 9,844
Interest, dividend
and rent 2,254
Agent's balances 186
Investment properties-
real estate 800
36S(2118)IDAG-10318 6 (Contd.)
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Dr. Cr.
Rs. in Crores Rs. in Crores
Investments 46,100
Loan on company's
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policies 3,472
Cash on deposit 540
Cash in hand and
on current account 446
Surrenders 140
66,930 66,930
You are required to prepare the company's revenue
account for the year ended 31st March, 2016 and its
balance sheet as on that date after taking the following
matters into consideration :
(i) Claims admitted but not paid Rs. 186 crores.
(ii) Management expenses due Rs. 4 crores.
(iii) Interest accrued Rs. 386 crores.
(iv) Premium outstanding Rs. 240 crores.
365(2118)/DAG-I0318 7 11000
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