Download PTU (I.K. Gujral Punjab Technical University Jalandhar (IKGPTU) BBA (Bachelor of Business Administration) 2020 March 2nd Sem 10547 Corporate Accounting Previous Question Paper
Roll No. Total No. of Pages : 04
Total No. of Questions : 09
BBA (2014 to 2017)/BRDM/B.SIM (2014 & Onwards)
(Sem.?2)
CORPORATE ACCOUNTING
Subject Code : BBA-204
M.Code : 10547
Time : 3 Hrs. Max. Marks : 60
INSTRUCTION TO CANDIDATES :
1. SECTION-A is COMPULSORY consisting of TEN questions carrying TWO marks
each.
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 :
a. Forfeiture of share capital
b. Rights issues
c. Consolidation of accounts
d. Holding Company
e. Goodwill valuation
f. Provision for taxation
g. Sources of income of a merchant banker
h. Interim dividend
i. Drawbacks of computerized accounting
j. Bonus shares
FirstRanker.com - FirstRanker's Choice
1 | M-10547 (S12)-2073
Roll No. Total No. of Pages : 04
Total No. of Questions : 09
BBA (2014 to 2017)/BRDM/B.SIM (2014 & Onwards)
(Sem.?2)
CORPORATE ACCOUNTING
Subject Code : BBA-204
M.Code : 10547
Time : 3 Hrs. Max. Marks : 60
INSTRUCTION TO CANDIDATES :
1. SECTION-A is COMPULSORY consisting of TEN questions carrying TWO marks
each.
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 :
a. Forfeiture of share capital
b. Rights issues
c. Consolidation of accounts
d. Holding Company
e. Goodwill valuation
f. Provision for taxation
g. Sources of income of a merchant banker
h. Interim dividend
i. Drawbacks of computerized accounting
j. Bonus shares
2 | M-10547 (S12)-2073
SECTION-B
UNIT-I
2. What is amalgamation in the nature of purchase? Differentiate between amalgamation in
the nature of merger and amalgamation in the nature of purchase. Discuss accounting
entries in the books of transferee.
3. On 1 January 2007, Balu Ltd issued 1000, 6% debentures of Rs.100 each repayable at the
end of 4 year at a premium of 10%. It is decided to create a sinking fund for the purpose;
the investment is expected to yield 5% net. Sinking fund table shows that Re.0.232012
invested annually amounts to Re. l at 5% in 4 years. Investments were made in multiples
of 100 only. On 31 December 2010, the balance at the bank was Rs.40000 and the
investment realized Rs.82000. the debentures were paid off. Give journal entries and
show ledger accounts except for debenture interest.
UNIT-II
4. Explain the procedure and law regarding declaration and payment of dividend by a
company. What accounting entries are passed in this connection?
5. Discuss the legal provisions regarding capitalization of profits.
UNIT-III
6. Distinguish between holding and subsidiary company. How valuation of shares and
goodwill is done?
7. A Ltd agrees to sell their undertaking to B Ltd on the following terms. B Ltd will pay
them Rs.600000 in cash and allot them two fully paid share of Rs.6 each (market value
Rs. 7.50 per share) in exchange of every three shares in their own company. A Ltd will
pay their liquidation expenses themselves which amounted to Rs.9000. close the books of
A Ltd and give opening entries in the books of B Ltd assuming that the amalgamation is
in the nature of purchase. The Balance sheet of A Ltd. on the date of amalgamation stood
as follows :
Share Capital Fixed Assets
120000 equity shares of Land & Building 450000
Rs. 6 Each, fully paid up 720000 Plant & Machinery 218700
Reserves & Surplus Current Assets
General Reserve 360000 Stock 273450
P & L A/c 34168 Sundry Debtors 229500
Creditors 132500 Bank 74280
Cash 738
1246668 1246668
FirstRanker.com - FirstRanker's Choice
1 | M-10547 (S12)-2073
Roll No. Total No. of Pages : 04
Total No. of Questions : 09
BBA (2014 to 2017)/BRDM/B.SIM (2014 & Onwards)
(Sem.?2)
CORPORATE ACCOUNTING
Subject Code : BBA-204
M.Code : 10547
Time : 3 Hrs. Max. Marks : 60
INSTRUCTION TO CANDIDATES :
1. SECTION-A is COMPULSORY consisting of TEN questions carrying TWO marks
each.
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 :
a. Forfeiture of share capital
b. Rights issues
c. Consolidation of accounts
d. Holding Company
e. Goodwill valuation
f. Provision for taxation
g. Sources of income of a merchant banker
h. Interim dividend
i. Drawbacks of computerized accounting
j. Bonus shares
2 | M-10547 (S12)-2073
SECTION-B
UNIT-I
2. What is amalgamation in the nature of purchase? Differentiate between amalgamation in
the nature of merger and amalgamation in the nature of purchase. Discuss accounting
entries in the books of transferee.
3. On 1 January 2007, Balu Ltd issued 1000, 6% debentures of Rs.100 each repayable at the
end of 4 year at a premium of 10%. It is decided to create a sinking fund for the purpose;
the investment is expected to yield 5% net. Sinking fund table shows that Re.0.232012
invested annually amounts to Re. l at 5% in 4 years. Investments were made in multiples
of 100 only. On 31 December 2010, the balance at the bank was Rs.40000 and the
investment realized Rs.82000. the debentures were paid off. Give journal entries and
show ledger accounts except for debenture interest.
UNIT-II
4. Explain the procedure and law regarding declaration and payment of dividend by a
company. What accounting entries are passed in this connection?
5. Discuss the legal provisions regarding capitalization of profits.
UNIT-III
6. Distinguish between holding and subsidiary company. How valuation of shares and
goodwill is done?
7. A Ltd agrees to sell their undertaking to B Ltd on the following terms. B Ltd will pay
them Rs.600000 in cash and allot them two fully paid share of Rs.6 each (market value
Rs. 7.50 per share) in exchange of every three shares in their own company. A Ltd will
pay their liquidation expenses themselves which amounted to Rs.9000. close the books of
A Ltd and give opening entries in the books of B Ltd assuming that the amalgamation is
in the nature of purchase. The Balance sheet of A Ltd. on the date of amalgamation stood
as follows :
Share Capital Fixed Assets
120000 equity shares of Land & Building 450000
Rs. 6 Each, fully paid up 720000 Plant & Machinery 218700
Reserves & Surplus Current Assets
General Reserve 360000 Stock 273450
P & L A/c 34168 Sundry Debtors 229500
Creditors 132500 Bank 74280
Cash 738
1246668 1246668
3 | M-10547 (S12)-2073
UNIT-IV
8. From the following figures taken from the books of Asia Insurance Co. Ltd doing the fire
insurance business, prepare the final accounts for the year 2010-2011.
Fire fund on l
st
April 2010 930000
General Reserve 450000
Investments 3600000
Premium 2701533
Claims paid 602815
Share capital ? Equity shares @ Rs.100 each 900000
Additional Reserve on 1
st
April 2010 330000
Profit and loss Account (credit) 75000
Reinsurance premium 112525
Claims recovered from reinsurers 21119
Commission on reinsurance ceded 48016
Advance income tax 250000
Agents? balance (Debit) 20000
Commission on direct business 299777
Commission on reinsurance accepted 60038
Outstanding premium 22300
Claims intimated but not paid on 1
st
April 2010 60000
Expenses of management 431947
Audit fees (General) 36000
Rate and tax (General) 5804
Rent (General) 67500
Income from investments 153000
Sundry creditors 22500
Cash in hand and bank balances 182462
FirstRanker.com - FirstRanker's Choice
1 | M-10547 (S12)-2073
Roll No. Total No. of Pages : 04
Total No. of Questions : 09
BBA (2014 to 2017)/BRDM/B.SIM (2014 & Onwards)
(Sem.?2)
CORPORATE ACCOUNTING
Subject Code : BBA-204
M.Code : 10547
Time : 3 Hrs. Max. Marks : 60
INSTRUCTION TO CANDIDATES :
1. SECTION-A is COMPULSORY consisting of TEN questions carrying TWO marks
each.
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 :
a. Forfeiture of share capital
b. Rights issues
c. Consolidation of accounts
d. Holding Company
e. Goodwill valuation
f. Provision for taxation
g. Sources of income of a merchant banker
h. Interim dividend
i. Drawbacks of computerized accounting
j. Bonus shares
2 | M-10547 (S12)-2073
SECTION-B
UNIT-I
2. What is amalgamation in the nature of purchase? Differentiate between amalgamation in
the nature of merger and amalgamation in the nature of purchase. Discuss accounting
entries in the books of transferee.
3. On 1 January 2007, Balu Ltd issued 1000, 6% debentures of Rs.100 each repayable at the
end of 4 year at a premium of 10%. It is decided to create a sinking fund for the purpose;
the investment is expected to yield 5% net. Sinking fund table shows that Re.0.232012
invested annually amounts to Re. l at 5% in 4 years. Investments were made in multiples
of 100 only. On 31 December 2010, the balance at the bank was Rs.40000 and the
investment realized Rs.82000. the debentures were paid off. Give journal entries and
show ledger accounts except for debenture interest.
UNIT-II
4. Explain the procedure and law regarding declaration and payment of dividend by a
company. What accounting entries are passed in this connection?
5. Discuss the legal provisions regarding capitalization of profits.
UNIT-III
6. Distinguish between holding and subsidiary company. How valuation of shares and
goodwill is done?
7. A Ltd agrees to sell their undertaking to B Ltd on the following terms. B Ltd will pay
them Rs.600000 in cash and allot them two fully paid share of Rs.6 each (market value
Rs. 7.50 per share) in exchange of every three shares in their own company. A Ltd will
pay their liquidation expenses themselves which amounted to Rs.9000. close the books of
A Ltd and give opening entries in the books of B Ltd assuming that the amalgamation is
in the nature of purchase. The Balance sheet of A Ltd. on the date of amalgamation stood
as follows :
Share Capital Fixed Assets
120000 equity shares of Land & Building 450000
Rs. 6 Each, fully paid up 720000 Plant & Machinery 218700
Reserves & Surplus Current Assets
General Reserve 360000 Stock 273450
P & L A/c 34168 Sundry Debtors 229500
Creditors 132500 Bank 74280
Cash 738
1246668 1246668
3 | M-10547 (S12)-2073
UNIT-IV
8. From the following figures taken from the books of Asia Insurance Co. Ltd doing the fire
insurance business, prepare the final accounts for the year 2010-2011.
Fire fund on l
st
April 2010 930000
General Reserve 450000
Investments 3600000
Premium 2701533
Claims paid 602815
Share capital ? Equity shares @ Rs.100 each 900000
Additional Reserve on 1
st
April 2010 330000
Profit and loss Account (credit) 75000
Reinsurance premium 112525
Claims recovered from reinsurers 21119
Commission on reinsurance ceded 48016
Advance income tax 250000
Agents? balance (Debit) 20000
Commission on direct business 299777
Commission on reinsurance accepted 60038
Outstanding premium 22300
Claims intimated but not paid on 1
st
April 2010 60000
Expenses of management 431947
Audit fees (General) 36000
Rate and tax (General) 5804
Rent (General) 67500
Income from investments 153000
Sundry creditors 22500
Cash in hand and bank balances 182462
4 | M-10547 (S12)-2073
The following further information may also be noted :
a. Expenses of management include survey fees and legal expenses of Rs.36000and
Rs.20000 relating to claims
b. Claims intimated but not paid on 31
st
March 2011 Rs. 104000
c. Income tax to be provided @55%
d. Proposed dividend 8%
e. Transfer to general reserve Rs.200000
Reserve for unexpired risk to be kept @ 40% of net premium
9. What is computerized accounting? Discuss its major advantages and disadvantages.
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.
FirstRanker.com - FirstRanker's Choice
This post was last modified on 01 April 2020