Download PTU B.Com 2020 Dec 4th Sem 77409 Corporate Accounting Question Paper

Roll No.
Total No. of Pages : 04
Total No. of Questions : 18
B.Com (Hons) ( 2018 Batch) (Sem.?4)

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CORPORATE ACCOUNTING
Subject Code : BCOM-401-18
M.Code : 77409
Time : 3 Hrs. Max. Marks : 60
INST RUCT IONS T O CANDIDAT ES :

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1 .
SECT ION-A is COMPULSORY cons is ting of TEN questions carrying TWO marks
each.
2 .
SECT IONS-B cons is ts of FOUR Sub-sec tions : U nits- I, II, III & IV.

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3 .
Eac h Sub-section contains TWO questions each , carry in g T EN ma rks e ach .
4 .
Students have to atte mpt an y ONE ques tion from each Sub-section.
SECTION-A

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Write short notes on the following :
Q1. Forfeiture of share capital
Q2. Rights issues
Q3. Internal reconstruction
Q4. Holding Company

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Q5. Goodwill valuation
Q6. Re-issue of forfeited of shares capital
Q7. Transfer of profits to reserves
Q8. Asset structure of a commercial bank
Q9. Annuity business

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Q10. Surrender value
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SECTION-B

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UNIT-I
Q11. What is a Debenture? What are the types of debentures? Distinguish between share and
debenture. Give journal entries for issue of debentures at discount.
Q12. a) P Ltd. has equity share capital of Rs. 1000000 consisting 10000 shares of Rs.100
each. It is resolved :

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i. To subdivide the shares into shares of Rs. 10 each
ii. To ask their shareholders to surrender 50% of their shares
iii. To issue 60% of the surrendered shares to 15% debenture holders of Rs.400000
in full settlement of their claims.
iv. To cancel the unissued surrendered shares.

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Give entries in the books of the P Ltd.
b) A Ltd invited applications for 10000 shares of Rs.100 each at a premium of 5% payable
as Rs.25 on application, Rs.45 on allotment (incl. premium) and Rs.35 on first and final
call. The applications received for 9000 shares and all of these shares were accepted.
All money dues were received except the call on 100 shares which were forfeited. Of

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these 50 shares were reissued @ Rs.90 as fully paid. Pass necessary journal entries.
UNIT-II
Q13. From the following information, prepare the Profit and loss Account of the Corporate Bank
for the year ended 3 1st March 2011 (figures in `000) :
Interest on loans Rs.518, Interest on cash credits Rs.446, Discount on bills discounted (net)

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Rs.390, Interest on Overdrafts Rs.108, Interest on Savings bank Account Rs.220, Interest
on fixed deposits Rs.554, Commission, exchange and brokerage Rs. 16.40, Rent, taxes and
lighting Rs.36. Auditors fees Rs.2.40, Postage, telegrams and telephones Rs.2.80, Sundry
charges Rs.2, Directors fees Rs.6. Printing and stationery Rs.0.40, Law charges Rs.1.40,
payment to employees Rs.108, Locker rent. Rs.0.70, Transfer fees Rs.1.40, Depreciation on

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bank's property Rs.10 and Advertisement an publicity Rs.1.40. Additional information:
Rebate on bills discounted Rs.98000 and provide for bad debts Rs.58000.
Q14. Briefly explain the methods for valuation of goodwill. Illustrate your answer.
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UNIT-III
Q15. X Ltd agrees to sell their undertaking to Y Ltd on the following terms. Y 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. X Ltd will pay their

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liquidation expenses themselves which amounted to Rs.9000. You are required to close the
books of X Ltd and give opening entries in the books of Y Ltd assuming that the
amalgamation is in the nature of purchase. The Balance Sheet of X Ltd on the date of
amalgamation stood as follows :
Share Capital

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Fixed Assets
120000 equity shares of
Land & Building
450000
Rs.6 Each, fully paid up

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720000
Plant & Machinery
218700
Reserves & Surplus
Current Assets

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General Reserve
360000
Stock
273450
P & L A/c

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34168
Sundry Debtors
229500
Creditors
132500

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Bank
74280
Cash
738
1246668

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1246668
Q16. What is amalgamation? Explain the accounting entries in the books of transferor and
transferee companies. Also explain the accounting treatment for dividends.
UNIT-IV
Q17. From the following balances of Maya General Insurance Co. Ltd. as on 31st March 2011, 2

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Profit & Loss Account and Balance sheet.
Claims paid less reinsurance :
Building (cost Rs. 125000)
87000
Fire

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80000 Office equipment (cost Rs.48000)
30000
Marine
62000 Cash in hand
56000

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General reserve
118000 Cash at bank
104000
Commission paid :
Premium less reinsurance :

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Fire
48000 Fire
210000
Marine
39000 Marine

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163000
Share capital (20000 shares of Rs.100
200000 Tax deducted at source
9000
each)

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Expenses of management :
Furniture (cost Rs. 18000)
12000
Fire
53000 Premium due :

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Marine
36000 Fire
28000
Marine
20000

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Reserve for unexpired risk 2010) :
Claims outstanding on 1st April 2010 :

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Fire
204000 Fire
14000
Marine
123000 Marine

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2000
Investments at cost
2515000 Due from other insurers
27000
Depreciation

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21000 Director's fees
4000
Additional reserves (1st April 2010) :
Commission on reinsurance ceded :
Fire

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132000 Fire
23000
Marine
16000 Marine
2000

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Interest accrued
25000 Dividends (Credit)
20000
Contingency reserve
39000 Interest on investments

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100000
Investment reserve
47000 Due to other insurers
43000
a) Claims outstanding on 31st March 2011 are : Fire Rs.17000, Marine Rs.6000

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b) Market value of investments is Rs. 2401000.
c) Increase additional reserve by 10% of net premium for the year for fire.
d) Maintain reserves for unexpired risks at 50% of premium for the year in case of fire
insurance and 100% of premium for the year in case of marine insurance.
Q18. Give a form of final accounts of life insurance business. Illustrate.

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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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