Name: Reg. No.: Rajagiri College of Social Sciences (Autonomous) ‘Third Semester B.Com. Degree Examination October, 2022 Model I - Finance & Taxation (Regular-2021 admissions) Code: 4269 Sub: (CO3CRT07) Corporate Accounting I SECTION A Answer any TEN questions. (Bach question carries 2 marks) What is Capital Redemption Reserve? Who is a broker? 3. Write short note on:- (a) Short Sales (b) Standard Turnover 4 Give journal entry for purchasing investments at ex- 5 What are Insured Standing Charges? Give examples. 6 What do you mean by contingent liabilities? Give Examples. 7 8 De terest. What are Marked and Unmarked Applications? How will you treat Corporate Dividend Tex in Final accounts? 9 What are Variable Income Bearing Securities? 10 What is Memorandum Trading Account? 11 List out the sources available for redemption of Preference Shares. ‘Max. Marks: 80 Duration: 3 Hrs. [10 X 2 = 20] 12 What do you mean by average clause in Loss of stock policy? On what basis the average clause is applicable in Loss of stock policy? SECTION B Answer any SIX questions. (Each question carries 5 marks) [6x5 30) 13 What is security premium reserve? Give the purposes for which the security premium reserves can be utilised u/s 52 of Companies Act. 14 Distinguish between Firm underwriting and Open underwriting. 15. Explain the terms: (a) Proposed Dividend (0) Interim dividend (c) Share Application pending allotment (a) Provision (e] Reserve 16 AB. Ltd resolved to Buy Back 3,00,000 of its fully paid Equity shares of Rs.10 cach at Rs.12 per share. For the purpose it issued 10,000 Equity shares of Rs.100 each at par, the total sum being payable with applications. The company uses Rs.8,50,000 of its balance in Securities premium Account apart from its adequate balance in General Reserve Account Rs.18,00,000 to fulfill the legal requirements regarding Buy-Back. Pass journal entries for all the transactions involved in the Buy-Back. P.T.O17. Calculate the managerial remuneration from the following particulars of CD Ltd. due to the managing director of the company. Also determine the excess remuneration pai, if any: Net profit 4,50,000 Net profit calculated after considering the following: Normal Depreciation 60,000 Special depreciation 1,00,000 Managing Directors fee 15,000 Bonus to employees 7,000 Capital profit on sale of machinery 12,500 Provision for doubtful debts 10,000 Ex-gratia to employees 6,700 Compensation paid to injured workmen. 6,000 Loss on sale of investments 5,200 Appreciation in the value of investments 1,000 Fixed assets written off 8,000 18 On 1s April 2020 the godown of P Ltd. was destroyed by fire. The business of P Ltd. was | dislocated up to 30% June 2020.The business was insured under loss of stock policy for | Rs.40,000 with a six months period of indemnity. From the saved books of account, the following information were available Stock at cost on 1.01.2019 _ Rs.27,500 Stock as per Balance sheet as on 31.12.2019 Rs.51,000 Purchases during 2019 Rs.2,71,000 Purchases from 1.04.2020 to 30.06.2020 Rs.75,000 Sales during 2019 Rs.3,51,000 Sales from 1.04.2020 to 30.06.2020 Rs.91,500 Direct expenses during 2019 Rs.7,000 Value of goods salvaged Rs.6,300 Compute the amount of claim to be lodged under loss of stock policy. 19 On 1* April 2021 X Ltd. purchased 4,000 16% debentures of T Ltd. of Rs.100 each @ Rs.95 Cum interest. On 30 September 2021 half of the debentures were sold @Rs.99 each ex interest. Debenture interest is payable half yearly on 30th June and 31* December each year. You are required to prepare 16 % Debentures account in T Ltd. in the books of X Ltd. assuming the accounting year ends on 31% December 2021. Market price of debentures on 31* December is Rs.98,20. N Ltd. was incorporated on Ls July 2020 by acquiring the business from Z Ltd. with effect 21 from 1* April 2020.The sales for the first three months was Rs.2,00,000 where the total sales for the period ending 31 March 2021 was Rs.6,00,000.The profit and loss Account of the company for the year ended 31% March 2021 stood as follows. H ltd Statement of Profit and Loss for the year ended 31.3.2021 Particulars Note No | Amount ] ‘Revenue from Operations (Gross Profit) 2,40,000 I, Other Revenue Nil Til, Total Revenue (f + Il) 2,40,000 IV. Less: Expenses Employee Benefit Expenses (Salaries) 20,000 Finance Cost: Debenture Interest 2,000 Interest on Bank Loan 1,000 Depreciation and Amortisation: Depreciation on building 700 Depreciation on Machinery 500 Other Expenses: z Rent 2,000 Bank Charges 500 Sales Commission 1500 Discount 800 Directors fee 2500 Audit fee 1800 Bad debts 1200 Preliminary expenses 700 ‘Total Expenses 35,200 V. Net Profit (I - IV) 2,04,800 Prepare Statement of Profit and Loss Account showing the profit earned during the pre-incorporation and post-incorporation period. W Ltd. offers to its shareholders the right to buy five shares at Rs.120 each for every eight shares of Rs.100 each held. The market value of shares is Rs.190 each. The existing share capital of the Company is Rs.40,00,000. Calculate the value of right and also the percentage increase in share capital. P.T.OSECTION C Answer any TWO questions. (Bach question carries 15 marks) [2X 15 = 30] 22 What is capitalization of profits? Explain the provisions under Sec. 63 of Companies Act 2013 and Guidelines given by SEBI for issue Bonus shares. 23 From the following information, find the claims under a loss of profit policy: Sales in 2017 Rs.2, 20,000 Sales in 2018 Rs.2,86,000 Sales in 2019 Rs.3,71,800 Sales from 2020 Rs.4,83,340 Sales from 1* April 2019 to 31 March 2020 _Rs.4,50,000 Sales from 1.04.2020 to 31.06.2020 Rs.25,000 Sales from 1.04,2019 to 31.06.2019 Rs.67,000 Insured Standing charges in 2020 Rs.6,900 Net profit in 2019 Rs.67,500 Policy value Rs.45, 000 Total Standing charges Rs.20,000 Date of dislocation by fire 1.04,2020 Period of dislocation 3 Months Indemnity period 6 Months Additional expenses to maintain sales amounted to Rs.4500 and savings in standing charges amounted to Rs.2100. Every year books of Account closes on 31+ December. 24 A Ltd. incorporated on 1* Apri] 2019 issued a prospectus inviting applications for 5,00,000 Equity shares of Rs.10 each. The whole issue was fully underwritten by four underwriters as follows: Ac 2, 00,000 shares B -1, 50,000 shares C-1, 00,000 shares D- 50,000 shares Applications were received for 4, 50,000 shares of which marked applications were as follows: A-2, 20,000 Shares B-90,000 shares C-1,10,000 shares D-10,000 shares a) Determine underwriter’s liability. b) Calculate the commission payable at the maximum rate possible under law of each underwriter. ©} Give journal entries in the books of A Ltd. 25 M Ltd. furnishes the following details relating to his holding in 17% debentures (Rs.100 each) of R Ltd. held as current assets: 1.01.2019 opening balance- Face value Rs.60,000, cost Rs.59,000 1,03.2019 100 debentures purchased ex-interest at Rs.98 1.07.2019 sold 200 debentures ex-interest at Rs.100 1.10.2019 Purchased 50 debentures at Rs.98 cum-interest 1.11.2019 Sold 200 debentures ex-interest at Rs.99 Interest dates are 30% September and 31% March. M L.td closes his books every 31 December. Brokerage @ 1 % is to be considered for each transaction. Show the investment account as it would appear in his books. FIFO method is to be assumed. Market value of a 16% debentures of R Lid. on 31.12.2019 was Rs.99.Name: Reg, No. : Rajagiri College of Social Sciences (Autonomous) Third Semester B.Com. Degree Examination October, 2022 Model I Finance & Taxation (Regular/Reappearance/Improvement-2017 admission onwards) Code: 4269 Max. Marks: 80 Sub: (CO3CRT08) Corporate Accounting I Duration: 3 Hrs. SECTION A Answer any TEN questions. (Bach question carries 2 marks) [10 x 2 = 20] What is Capital Redemption Reserve? Who is a broker? 3. Write short note on:- {a) Short Sales (b) Standard Turnover 4 Give journal entry for purchasing investments at ex-interest. 5 What are Insured Standing Charges? Give examples. 6 What do you mean by contingent liabilities? Give Examples. 7 What are Marked and Unmarked Applications? 8 9 ne How will you treat Corporate Dividend Tax in Final accounts? What are Variable Income Bearing Securities? 10 What is Memorandum Trading Account? 11 List out the sources available for redemption of Preference Shares. 12 What do you mean by average clause in Loss of stock policy? On what bas clause is applicable in Loss of stock policy? is the average SECTION B Answer any SIX questions. (Bach question carries 5 marks) [6X5 = 30] 13 What is security premium reserve? Give the purposes for which the security premium reserves can be utilised u/s 52 of Companies Act. 14 Distinguish between Firm underwriting and Open underwriting, 15. Explain the terms: (a) Proposed Dividend (b) Interim dividend (©) Share Application pending allotment (@) Provision (6 Reserve 16 AB. Ltd resolved to Buy Back 3,00,000 of its fully paid Equity shares of Rs.10 each at Rs.12 per share. For the purpose it issued 10,000 Equity shares of Rs.100 each at par, the total sum being payable with applications. The company uses Rs.8,50,000 of its balance in Securities premium Account apart from its adequate balance in General Reserve Account Rs. 18,00,000 to fulfill the legal requirements regarding Buy-Back. Pass journal entries for all the transactions involved in the Buy-Back. P.T.O17 Calculate the managerial remuneration from the following particulars of CD Ltd. duc to the managing director of the company. Also determine the excess remuneration paid, if any: Net profit 4,50,000 Net profit calculated after considering the following: Normal Depreciation 60,000 Special depreciation 1,00,000 Managing Directors fee 15,000 Bonus to employees 7,000 Capital profit on sale of machinery 12,500 Provision for doubtful debts 10,000 Ex-gratia to employees 6,700 Compensation paid to injured workmen 6,000 Loss on sale of investments 5,200 Appreciation in the value of investments 1,000 Fixed assets written off 8,000 18 On 1* April 2020 the godown of P Ltd. was destroyed by fire. The business of P Ltd. was dislocated up to 30% June 2020.The business was insured under loss of stock policy for Rs.40,000 with a six months period of indemnity. From the saved books of account, the following information were available Stock at cost on 1.01.2019 Rs.27,500 Stock as per Balance sheet as on 31.12.2019 Rs.51,000 Purchases during 2019 Rs.2,71,000 Purchases from 1.04.2020 to 30.06.2020 Rs.75,000 Sales during 2019 Rs.3,51,000 Sales from 1.04.2020 to 30.06.2020 Rs.91,500 Direct expenses during 2019 Rs.7,000 Value of goods salvaged Rs.6,300 Compute the amount of claim to be lodged under loss of stock policy. 19 On 1* April 2021 X Ltd. purchased 4,000 16% debentures of T Ltd. of Rs.100 cach @ Rs.95 Cum interest. On 30 September 2021 half of the debentures were sold @Rs.99 each ex interest. Debenture interest is payable half yearly on 30th June and 31° December each year. You are required to prepare 16 % Debentures account in T Ltd. in the books of X Ltd. assuming the accounting year ends on 31% December 2021. Market price of debentures on 31# December is Rs.98.20 N Ltd. was incorporated on 1s July 2020 by acquiring the business from Z Ltd. with effect from 1* April 2020.The sales for the first three months was Rs.2,00,000 where the total sales for the period ending 31* March 2021 was Rs.6,00,000.The profit and loss Account 21 of the company for the year ended 31* March 2021 stood as follows. H Ltd Statement of Profit and Loss for the year ended 31.3,2021 Particulars Note No ‘Amount T. UL, v. Mm. Vv. Revenue from Operations (Gross Profit) Othér Revenue Total Revenue (I + II) Less: Expenses Employee Benefit Expenses (Salaries) Finance Cost: Debenture Interest Interest on Bank Loan Depreciation and Amortisation: Depreciation on building Depreciation on Machinery Other Expenses: Rent Bank Charges Sales Commission Discount Directors fee Audit fee Bad debts Preliminary expenses Total Expenses Net Profit (III - IV) 2,40,000 | Nil 2,40,000 20,000 2,000 1,000 700 500 2,000 500 1500 800 2500 1800 1200 700 35,200 2,04,800 Prepare Statement of Profit and Loss Account showing the profit earned during the pre-incorporation and post-incorporation period. W Ltd. offers to its shareholders the right to buy five shares at Rs.120 each for every eight shares of Rs.100 each held. The market value of shares is Rs.190 each. The existing share capital of the Company is Rs.40,00,000. Calculate the value of right and also the percentage increase in share capital P.T.OSECTION C Answer any TWO questions. (Each question carries 15 marks) [2X 15 = 30] 22 What is capitalization of profits? Explain the provisions under Sec. 63 of Companies Act 2013 and Guidelines given by SEBI for issue Bonus shares. 23 From the following information, find the claims under a loss of profit policy: Sales in 2017 Rs.2, 20,000 Sales in 2018 Rs.2,86,000 Sales in 2019 Rs.3,71,800 Sales from 2020 Rs.4,83,340 Sales from 1* April 2019 to 31st March 2020 —_Rs.4,50,000 Sales from 1.04.2020 to 31.06.2020 Rs,25,000 Sales from 1.04.2019 to 31.06.2019 Rs.67,000 Insured Standing charges in 2020 Rs.6,900 Net profit in 2019 Rs.67,500 Policy value Rs.45, 000 ‘Total Standing charges Rs.20,000 Date of dislocation by fire 1.04.2020 Period of dislocation 3 Months Indemnity period 6 Months Additional expenses to maintain sales amounted to Rs.4500 and savings in standing charges amounted to Rs.2100. Every year books of Account closes on 31s December. 24 A Ltd, incorporated on 1* April 2019 issued a prospectus inviting applications for 5,00,000 Equity sha as follows: of Rs.10 each. The whole issue was fully underwritten by four underwriters A- 2, 00,000 shares B -1, 50,000 shares © -1, 00,000 shares D ,000 shares Applications were received for 4, 50,000 shares of which marked applications were as follows: ‘A-2, 20,000 Shares B-90,000 shares C-1,10,000 shares D-10,000 shares a) Determine underwriter’s liability. b) Calculate the commission payable at the maximum rate possible under law of each underwriter. ¢} Give journal entries in the books of A Ltd. 25 M Ltd. furnishes the following details relating to his holding in 17% debentures (Rs.100 each) of R Ltd. held as current assets: 1.01.2019 1.03.2019 1.07.2019 1.10.2019 1.11,2019 Interest dates are opening balance- Face value Rs.60,000, cost Rs.59,000 100 debentures purchased ex-interest at Rs.98 sold 200 debentures ex-interest at Rs.100 Purchased 50 debentures at Rs.98 cum-interest, Sold 200 debentures ex-interest at Rs.99 30% September and 31* March. M Ltd closes his books every 31 December. Brokerage @ 1 % is to be considered for each transaction. Show the investment account as it would appear in his books. FIFO method is to be assumed. Market value of a 16% debentures of R Ltd. on 31.12.2019 was Rs.99.Name: Reg. No. Rajagiri College of Social Sciences (Autonomous) ‘Third Semester B.Com. Degree Examination October, 2022 Model I - Finance & Taxation (Regular- 2021 admissions) Code: 4271 Sub: (CO3CRTO07) Dimensions and Methodology of Business Studies wowranrone 10 12 13 14 15 16 17 18 19 20 21 SECTION A Answer any TEN questions. (Bach question carries 2 marks) What is meant by PEST analysis? What do you mean by Privatisation? What is meant by B2B e-commerce? What is meant by Principle of Autonomy? Define the term ‘Research’, What is meant by Trade? Explain Front Office Outsourcing with an example. What is meant by Net Banking? Explain the Principle of Sustainability. What is meant by Research Method? What is meant by Digital Wallet? What is meant by NITI AAYOG? SECTION B Answer any SIX questions. (Bach question carries 5 marks) Explain the internal environment of business, What are the objectives of disinvestment? Distinguish between e-commerce and e-business. Explain the important principles of corporate governance. Distinguish between quantitative and qualitative research, Explain the important principles of business ethics. Explain the different types of research. What do you mean by Globalisation? Explain its features, Explain the stakeholders of business. ‘Max. Marks: 80 Duration: 3 Hrs. [10 X 2 = 20] {5X6 = 30] P.T.OSECTION C Answer any TWO questions. (Bach question carries 15 marks} [2X 15 = 30] 22 Describe the role and significance of business in the development of a nation. 23 Explain the various e-payment systems. 24 Describe the structure of a research report. 25 Explain business ethics, Describe the importance of business ethics.Name: Reg. No. Rajagiri College of Social Sciences (Autonomous) Third Semester B.Com. Degree Examination October, 2022 Model I - Finance & Taxation (Regular - 2021 admissions) Code: 4278 Max. Marks: 80 Sub: (CO30CTO1) Income Tax I Duration: 3 Hrs. SECTION A Answer any TEN questions. (Bach question carries 2 marks) [10 X 2 = 20) 1 Define the term assesse. 2. Explain the tax liability of a non-resident individual, 3. How is RP F different from U R P F? 4 Explain the deduction of interest on loan taken for construction of house property. 5 Name any 4 items which are expressly disallowed while computing profit from business. 6 Explain MMR 7 Who is a non -resident HUF? 8 Explain profit in lieu of salary 9. Explain the treatment of unrealised rent realised. 10 What do you mean by unabsorbed depreciation? 11 What are the types of companies? 12. How is the treatment of medical benefit perquisite received by an employee? SECTION B Answer any SIX questions. (Bach question carries 5 marks) [6X 5 = 30} 13. Income tax is charged on the income of the P.Y. Do you fully agree with the statement? If not, what are the exceptions? 14. Write a note on capital expenditure and revenue expenditure. 15 How is the treatment for gratuity received from employer on retirement? 16 Write a note on fully taxable perquisites. 17 Mr. John, a foreign national came to India for the first time on June Sth 2016. During the year 2016-17; 2017-18; 2018-19; 2019-20 and 2021-22, he stays in India for 120 days, 155 days, 15 days, 191 days, 124 days and 80 days. Determine his residential status ment Year 2022-23, finan for the Asses P.T.O18 Mr. P is an employee of a public Ltd Company. He gives you the following particulars of his income. Basic salary 2. 30,000.pm. Dearness allowance %. 15,000 p.m. (50% enters into service benefit) Marriage allowance @, 600. p.m. Education allowance 2, 300. p.m. per child for 3 children. Bonus one month salary. Entertainment allowance 2, 1,200.p.m. Employer’s contribution to RP F @ 16% of salary. Medical allowance 2. 300 p.m. Compute income from salary. 19. Mr. A owns a big house property which is let out for 2, 20,000 p.m. Its Municipal valuation %. 2, 00,000. Fair rental value %. 1, 80,000. However as per agreement Mr. A agreed to provide additional facilities to the tenant including water charges %. 3,000, salary of gardener %. 500p.m., lift operators salary %. 4,000 and lighting of stair %. 2,000. He paid 5% of the municipal valuation as tax of the house. Interest on loan taken for the purchase of the house %, 30,000 p.a. Unrealised rent realised during the year . 10,000. This amount was allowed earlier as deduction. Compute income from house property. 20. From the following information compute depreciation allowance for the A. Y. 2022-23. i, WD Vof plant and machinery on 1-4-21 .12,00,000 . P&M purchased on 15-5-21 for production department %:15,00,000 Purchased office appliances on 1-6-21 %.2,00,000 iv. Air conditioner purchased to install in the office on 1-6-21 %.80,000 v. Car for office use purchased on 1-8-21 %.6,00,000 vi. P&M purchased on 10-11-21 for production department —_%.3,00,000 vii. P&M sold on 1-1-22 ,2,00,000 vili, Rate of depreciation @ 15% Additional depreciation 20% 21. Determine the income from house property. Two third portion of the house is self-occupied and one third is let out for residence. Rent received from the let-out portion- &. 10,000 per month. The let out portion remained vacant for three months. Further, the tenant did not pay one month rent but he is still residing in the house. Municipal tax paid %. 3,000. Interest. paid during the P.Y. on the loan taken for the construction of the house @, 8,000 and interest paid prior to completion of the house % 10,000. House construction completed on 1-6-2018.SECTION C Answer any TWO questions. (Bach question carries 15 marks) [2x15 30] 22 Compute income from business and house property from the given Profit and Loss 23 24 Account. «) ) Office salary 88,000 Gross Profit, 1, 80,000 General Exp. 42,000 Capital Gain 15,000 Bad Debts 10,000 Dividend 40,000 Provision for bad debts §,000 Bad debts Recovered 5,000 Advertisement 17,000 Interest on securities 3,500 Insurance premium 1,500 Dividends 3,500 Depreciation 25,000 Gift received 5,000 Rent 24,000 Rent of building let out 44,000 Donation 2,500 Office expenses 12,000 Car Expenses 22,000 Municipal tax of property let out 2,000 Net Profit 45,000 2, 96,000 Additional information: i, General expenses include @. 2,500 compensation given to an employee who is removed from service for the benefit of the business, and %, 3,000 as contribution paid to Govt. for laying electric cables for the company’s plant. ii, Depreciation allowable 2. 35,000 ili, Bad debts recovered allowed as deduction earlier. Car expenses include @, 5000 for personal use. Write any 20 items of income whi ch are fully exempted from income tax liability with necessary explanation. Define Annual Value. Explain with examples the computation of annual value of the let out houses in different situations and self-occupied houses, P.T.0Mr. Naveen is working in a textile company at Kolkata. His monthly salary is &, 50,000 p.m. Dearness allowance 2. 7,500 p.m. Entertainment allowance %. 5,000p.n. Education allowance %. 350 p.m. for a child. He has been provided with a rent free house, the fair rent of which is %. 2, 60,000 p.a. Furniture costing %. 400,000 and a fridge costing ®. 30,000 is also provided along with the house. The company has provided him two small cars for official and private purpose, the expenses are met by the employer. ‘The driver's salary is also given by the company. ‘The company contributes %. 15,000 p.a. towards the R P F of the employee. Medical allowance received is 2. 2000 p.m, Medical expenditure incurred for his treatment during the P.Y. 5,000.Marriage allowance received @. 5,000. ‘Telephone bill and gas bill of Mr. Naveen is paid by the company which amount to %. 1,000 p.m. and & 2,000 p.m respectively. The company paid %. 4,000 as his membership fee in Rotary club. He paid 2. 2,500 as professional tax. Compute income from salary.Name: Reg. No. : Rajagiri College of Social Sciences (Autonomous) Third Semester B.Com Degree Examination October, 2022 Model I/II - Finance & Taxation (Reappearance/Improvement - 2017 admission onwards) Code: 4283 Max, Marks: 80 Sub: (CO3OCTO01) Goods and Services Tax Duration: 3 Hrs. SECTION A Answer any TEN questions. (Each question carries 2 marks) [10 X 2 = 20] What is Goods and Services Tax? Explain the tax under GST on mixed supply with example. What is place of supply under GST? What do you mean by Input Tax Credit? What is GSTN? What is RNR? What are the services which have nil GST? How GST avoid the 9 What is an E-Way bill? @rsaHkoneH ading effect of Tax? 10 Write down the details of GST Certificate of Registration? 11 Who is an Electronic commerce operator? 12 What do you mean by a Credit Note? SECTION B Answer any SIX questions. (Each question carries 5 marks) {6X 5 = 30] 13 How is a ‘Taxable person’ different from 'Non Resident Taxable Person’? 14. State how tax is charged on composite supply and mixed supply under GST with examples, 15. State the Place of supply of services offered as training 16 How is Input Tax Credit distributed by Input Service Distributor? 17 What do you mean by Scrutiny of returns? 18 How will you determine the place of supply for different telecom services? 19 Explain the Types of Tax Assessment, 20 Explain different GST rates applicable. 21. Explain how GST is paid by electronic commerce operator? P.T.O22 23 24 25 SECTION C Answer any TWO questions. (Each question carries 15 marks) 2x1 30] What do you mean by Registration? Explain the different procedures involved in Registration as per GST Act. What is Time of Supply? How is time of supply determined for goods and services? One tax, one country, one market’, Is the new GST regime contributing to the statement? Explain the following terms and its provisions mentioned in GST: a) Electronic Liability Register b) Electronic Credit Ledger ¢) Blectronic Cash LedgerName: Reg. No. Rajagiri College of Social Sciences (Autonomous) ‘Third Semester B.Com. Degree Examination October, 2022 Model IL - Finance & Taxation (Supplementary-2018 admission onwards) Code: 4280 Max. Marks: 80 Sub: (CO3CRTO7) Corporate Accounting I Duration: 3 Hrs, SECTION A Answer any TEN questions. (Bach question carries 2 marks) [10 X 2 = 20] What is Capital Redemption Reserve? 2. What do you mean by De- recognition? 3. Write short note on:- (a) Short Sales (b) Standard Turnover Give journal entry for purchasing investments at ex-interest, What are Insured Standing Charges? Give examples. 6 What do you mean by contingent liabilities? Give Examples. 7 What are Marked and Unmarked Applications? 8 What is Entity- Specific Value? 9 What are Variable Income Bearing Securities? 10 What is Memorandum Trading Account? 11 List out the sources available for redemption of Preference Shares. 12 What do you mean by average clause in Loss of stock policy? On what basis the average clause is applicable in Loss of stock policy? SECTION B Answer any SIX questions. (Bach question carries § marks) [6X5 = 30] 13. What is security premium reserve? Give the purposes for which the security premium reserves can be utilised u/s 52 of Companies Act. 14. Distinguish between Firm underwriting and Open underwriting, 15 Briefly explain how valuation of depreciation is disclosed in financial statements. 16. Differentiate between Financial lease and Operating lease. 17 CD Ltd. granted 1500 options on 1st April 2020 at Rs.80 when the market price was Rs.160, The vesting period was 3 years, The maximum exercise period was 1 year. All the 1500 options were exercised by the employees on 30th October 2020.Pass necessary journal entries recording the above transactions. P.T.O18 19 20 21 AB. Ltd resolved to Buy Back 3,00,000 of its fully paid Equity shares of Rs.10 each at Rs.12 per share. For the purpose it issued 10,000 Equity shares of Rs.100 each at par, the total sum being payable with applications. The company uses Rs.8,50,000 of its balance in Securities premium Account apart from its adequate balance in General Reserve Account Rs.18,00,000 to fulfill the legal requirements regarding Buy-Back. Pass journal entries for all the transactions involved in the Buy-Back. On 1+ Apri] 2020 the godown of P Ltd. was destroyed by fire. The business of P Lid. was dislocated up to 30% June 2020.The business was insured under loss of stock policy for Rs.40,000 with a six months period of indemnity. From the saved books of account, the following information were available Stock at cost on 1.01.2019 Rs.27,500 Stock as per Balance sheet as on 31.12.2019 Rs.51,000 Purchases during 2019 Rs.2,71,000 Purchases from 1.04,2020 to 30.06.2020 Rs.75,000 Sales during 2019 Rs.3,51,000 Sales from 1.04:2020 to 30.06.2020 Rs.91,500 Direct expenses during 2019 Rs.7,000 Value of goods salvaged Rs.6,300 Compute the amount of claim to be lodged under loss of stock policy. On 1* April 2021 X Ltd. purchased 4,000 16% debentures of T Ltd. of Rs.100 each @ Rs.95 Cum interest. On 30” September 2021 half of the debentures were sold @Rs.99 each ex interest. Debenture interest is payable half yearly on 30th June and 31% December each year. You are required to prepare 16 % Debentures account in T Ltd. in the books of X Ltd, assuming the accounting year ends on 31% December 2021. Market price of debentures on 31% December is Rs.98. W Ltd. offers to its shareholders the right to buy five shares at Rs.120 each for every eight shares of Rs.100 each held. The market value of shares is Rs.190 each. The existing share capital of the Company is Rs.40,00,000, Calculate the value of right and also the percentage increase in share capital.SECTION C Answer any TWO questions. (Each question carries 15 marks) [2X 15 = 30] 22 What are financial instruments? Brief on the presentation of Financial Instruments as per TAS 32. 23. From the following information, find the claims under a loss of profit policy: Sales in 2017 Rs.2, 20,000 Sales in 2018 Rs.2,86,000 Sales in 2019 Rs.3,71,800 Sales from 2020 Rs.4,83,340 Sales from 1+ April 2019 to 318 March 2020 _Rs.4,50,000 Sales from 1.04.2020 to 31.06.2020 Rs.25,000 Sales from 1.04.2019 to 31.06.2019 Rs.67,000 Insured Standing charges in 2020 Rs.6,900 Net profit in 2019 Rs.67,500 Policy value Rs.45, 000 ‘Total Standing charges Rs.20,000 Date of dislocation by fire 1.04.2020 Period of dislocation 3 Months Indemnity period 6 Months Additional expenses to maintain sales amounted to Rs.4500 and savings in standing charges amounted to Rs.2100. Every year books of Account closes on 31* December. 24 ALtd. incorporated on 1s April 2019 issued a prospectus inviting applications for 500,000 Equity shares of Rs.10 each. The whole issue was fully underwritten by four underwriters as follows: A: 2, 00,000 shares B -1, 50,000 shares C -1, 00,000 shares D - 50,000 shares Applications were received for 4, 50,000 shares of which marked applications were as follows: A-2, 20,000 Shares B-90,000 shares C-1,10,000 shares D-10,000 shares a) Determine underwriter’s liability. b) Calculate the commission payable at the maximum rate possible under law of each underwriter. ©) Give journal entries in the books of A Ltd. P.T.O25 M Ltd, furnishes the following details relating to his holding in 17% debentures (Rs.100 each) of R Ltd. held as current assets: 1,01.2019 1.03.2019 1.07.2019 1.10.2019 1.11.2019 opening balance- Face value Rs.60,000, cost Rs.59,000 100 debentures purchased ex-interest at Rs.98 sold 200 debentures ex-interest at Rs.100 Purchased 50 debentures at Rs.98 cum-interest Sold 200 debentures ex-interest at Rs.99 Interest dates are 30%September and 31s March. M L.td closes his books every 31* December. Brokerage @ 1 % is to be considered for each transaction. Show the investment account as it would appear in his books. FIFO method is to be assumed. Market value of a 16% debentures of R Ltd. on 31.12.2019 was Rs.99.Name: Reg. No Rajagiri College of Social Sciences (Autonomous) ‘Third Semester B.Com, Degree Examination October, 2022 Model Il — Finance & Taxation (Regular ~ 2021 admissions) Code: 4277 Max, Marks: 80 Sub: (CO3O0CTO1) International Financial Reporting Standards Duration: 3 Hrs. SECTION A Answer any TEN questions. (Each question carries 2 marks) [10 X 2 = 20] Define Inventory IAS 2. 1 2. Write two functions of Interpretation Committee. 3 What is Goodwill? 4 Write the benefits of IFRS in the Indian industry. 5 Mention any two examples of cash flow from operating activities 6 What is the role of IT systems in IFRS? 7 What is cost model? 8 What is IASB? 9. Define leases. 10 Define fair value. 11 What do you mean by sale and lease back transitions? 12._List the excluded cost from inventory valuation, SECTION B Answer any SIX questions. (Bach question caries 5 marks) (6X5 = 30} 13 List the qualitative characteristics of financial statement, 14. Write short note on the measurement of Inventory, 15 What is government grants IAS 20? What are the types of Government grants? 16 Explain the similarities between profit &loss and cash flow statement 17 Explain the concepts of Profit & loss account and other comprehensive income. 18 Explain the benefits of IFRS convergence. 19 How recognition of Intangible assets are done subsequently? 20 What are the barriers to Harmonization? 21 Write short note on contract revenue and contract cost. P.T.O22 23 24 25 SECTION C Answer any TWO questions. (Bach question carries 15 marks) [2X 15 ~ 30] Explain the steps of first time adoption of IFRS. Explain cost method and revalution method in Property plant and Equipment. Explain IASB structure. Explain the benefits of cash flow statement.Name’ Reg. No. Rajagiri College of Social Sciences (Autonomous) Third Semester B.Com, Degree Examination October, 2022 Model I - Finance & (Regular- 2021 adi Code: 4273 Max. Marks: 80 Sub: (CO3CRT09) Cost Accounting 1 Duration: 3 Hrs. SECTION A Answer any TEN questions, (Bach question carries 2 marks) [10 x2 = 20) 1 Define Cost Accounting. 2 What is Maximum Level? 3. How will you calculate Labour Turnover Rate? 4 What is Factory Cost? 5 What is ABC Analysis? 6 What is a Cost Unit? 7 What is Incentive Plan? 8 What do you mean by under - absorption and over-absorption of overheads? 9 What is Batch Costing? 10 What is Out-of-pocket Cost? 11 Define Overheads. 12. Differentiate between Variable Cost and Fixed Cost. SECTION B Answer any SIX questions. (Bach question carries 5 marks) [5X 6 - 30) 13. What is Cost? Briefly explain the element wise classification of cost. 14 Briefly discuss the Purchase procedure. 15. State the differences between Bin Card and Stores Ledger. 16 What is Reconciliation Statement? What are the reasons for the difference between profit as per cost books and financial books? 17 JK Ltd uses a component, the details of which are as follows: Annual consumption 4,000 units Purchase price per component _ : ¥ 200 Cost of placing an order 100 Storage cost : 10% of average inventory ‘The company has been offered a discount of 5% on the price of the component provided that the lot size is 2,000 components at a time. You are required to’ (a) Compute the EOQ (b) Advice whether the quantity discount offer can be accepted P.T.O18 The following particulars relate to a new machine purchased: Cost of machine including installation charges :% 10,00,000 Rent per month :€5,000 General lighting per quarter :€3,000 Estimated repairs for the machine per month £81,500 ‘Total number of light points in the department 120 Light points used for the machine 5 Power : 2 units @ @ 100 per 50 units ‘The estimated life of the machine is 10 years and the estimated scrap value at the end of the 10% year is % 50,000. The machine is expected to run 2,000 hour per annum. The machine occupies 25% of the total area, You are required to calculate the Machine Hour Rate. 19 MM Ltd submits the following information as on March 31, 2022: z Sales for the year :8,75,000 Inventories at the beginning of the year: Work in progress 4,000 Raw material 3,000 Finished goods: 7,000 Purchases of raw materials 1,10,000 Direct wages 65,000 Inventories at the end of the year: Work in progress: 6,000 Raw material 4,000 Finished goods 8,000 Factory overheads were 60% of the direct labour cost. Other expenses for the year were: Selling expenses : 10% of sales Administration expenses 15 % of sales You are required to prepare a Cost Sheet for the year ended March 31,2022 20. The basic wage rate of a company is 2 150 per hour and the overtime rate are: Evening __- time and one third Weekends - double the time ‘The following times have been worked by workers A and B on two jobs: Clock hours Job 1 Job 2 Normal time 300 500 Evening overtime 30 60 Weekend overtime 10 40 You are required to calculate the labour cost chargeable to each job in each of the following circumstances: (a) If overtime is worked specifically at the request of the customer (b) If overtime is worked irregularly to meet spasmodic production requirement.