Download PTU BBA 2019 May 2nd Semester 10547 CORPORATE ACCOUNTING Question Paper

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BBA (2013 to 2017)/BRDM/B.SIM (2014 & Onwards)

(Sem.-2)

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CORPORATE ACCOUNTING

Subject Code : BBA-204

M.Code: 10547

INSTRUCTION TO CANDIDATES :

1. SECTION-A is COMPULSORY consisting of TEN questions carrying TWO marks each.

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2. SECTION-B consists of FOUR Sub-sections: Units-I, II, III & IV.
3. Each Sub-section contains TWO questions each, carrying TEN marks each.
4. Student has to attempt any ONE question from each Sub-section.

SECTION-A

1. Write briefly :
   1. Issue of Debentures as collateral security.

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   2. Right issue
   3. Growth funds
   4. Deferred Taxes
   5. Reduction in Share Capital
   6. Average capital employed for the calculation of goodwill

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   7. Corporate social responsibility
   8. Items included in the current assets of the Balance Sheet
   9. Non-performing Assets
   10. Ready-to-use accounting software

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SECTION-B

UNIT-I

2. What is a debenture? What are the types of debentures? Distinguish between share and debenture.
3. X Ltd. issued for Public subscription 40,000 equity shares of Rs.10 each at a premium of Rs.2 per share payable as under; on application Rs.3per share; on allotment Rs. 5 per share (including premium), on first call Rs. 2 per share and on second call Rs.2 per share. Applications were received for 60,000 shares. Allotment was made pro rata to the applicants for 48,000 shares, the remaining applications being refused. Money overpaid on applications was utilized towards sums due on allotment. Shri Ram, to whom 1,600 shares were allotted, failed to pay the allotment, first and second call money and Shri Hussain to whom 2,000 shares were allotted failed to pay the two calls. These shares were subsequently forfeited after the second call was made. All the forfeited shares were sold to Mohan as fully paid up at per share. Show the journal entries to record the above transactions.

UNIT-II

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4. Explain the procedure and law regarding declaration and payment of dividend by a company. What accounting entries are passed in this connection?
5. The following balances appeared in the books of sun Ltd. as on 31st March, 2016 :

   	Dr. (Rs.)	Cr. (Rs.)
   Equity Shares of Rs. 10 each, fully paid up		6,00,000
   General Reserve		2,30,000
   Unclaimed Dividend		526
   Trade Payables		42,858
   Building (at cost)	1,50,000
   Purchases	5,00,903
   Manufacturing Expenses	10,83,947
   Sales		3,50,000
   Salaries	26,814
   General Charges	31,078
   Machinery (at cost)	2,30,000
   Furniture (at cost)	5,000
   Opening Inventories	1,72,058
   Trade receivables	2,32,380
   Investment	2,88,950
   Provision for Depreciation on Fixed Assets		91,000
   Advance payment of Income Tax	50,000
   Cash at bank	72,240
   Director's Fees	1,800
   Inetrest on Investment		8,544
   Profit and Loss Balance (1.4.2015)		16,848
   Staff provident fund		37,500
   	21,11,223	21,11,223

   From the above mentioned balances the following information, prepare the company's balance sheet as on 31st March,2016 and its profit and loss statement for the year ended on that date :

   1. The inventories on 31st March. 2016 was valued at Rs.1,48.680.
   2. Provide Rs.19,000 for depreciation on fixed assets and Rs.8,000 for managing director's remuneration.
   3. Interest Accrued on investment amounted to Rs.2.750.

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   4. Make a Provision of Rs.50,000 for Income Tax.
   5. The Directors propose a dividend @8% after transfer of Rs.35,000 to general reserve.
   6. Corporate Dividend Tax: 20.358.

UNIT-III

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6. Explain with suitable example, the various methods of valuation of shares of a Company.
7. Give journal entries in the books of Transferee Company under the following Conditions:
   1. The Pooling interest method
   2. The Purchase Method

UNIT-IV

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8. Write short notes on :
   1. Merchant Bankers
   2. Stock Brokers.
9. 'Computerised Accounting System is the best form of accounting system'. Do you firstranker.comment.

NOTE : Disclosure of Identity by writing Mobile No. or Making of passing request on any page of Answer Sheet will lead to UMC against the Student.

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