Corporate Accounting 2023 Question Paper [Gauhati University B.com 2nd Sem]

In this post you wil get Gauhati University BCom 2nd Sem. Corporate Accounting Question Paper 2023. Which is very important research for exam preparation also helpful in understanding the question paper pattern and level of difficulty.

Corporate Accounting Question Paper 2023 Gauhati University BCom 2nd Sem.

COMMERCE (Honours Core)
Paper: COM-HC-2016

Full Marks: 80
Time: 3 hours

The figures in the margin indicate full marks for the questions.

1. (i) Fill in the blanks with appropriate words:       1x5=5

(a) Right shares are generally issued at a price _______ than the market price.

(b) The Companies Act, 2013 follows _______ format for preparation of Final Account.

(c) The issue of bonus shares must be recommended by Board of Directors and approved by the _______.

(d) Pre-acquisition profits are _______ profits.

(e) The company into which another company is amalgamated is called _______ Company.

(ii) State whether the following statements are true or false:         1x5=5

(a) Reduction in share capital must be sanctioned by National Company Law Board.

(b) At the time of valuation of goodwill, only gross profit is considered.

(c) Computer software is a ‘non-current’ asset.

(d) AS-24 deals with ‘accounting for amalgamation’ of companies.

(e) Buy back of shares does not affect the authorised share capital of company.

2. Answer the following questions:            2x5=10

(a) Write the meaning of issue of bonus shares.

(b) State two objectives of amalgamation of companies.

(c) What is internal reconstruction?

(d) What do you mean by ‘holding company’?

(e) Mention the names of various methods of valuation of equity shares.

3. Answer any four of the following:            5x4=20

(a) Mention five conditions to be followed for buy back of shares.

Or

Sunrise Ltd. has issued and paid up capital of Rs. 8,00,000 divided into equity shares of Rs. 10 each. The balance in the securities premium account was Rs. 1,40,000 and general reserve Rs. 80,000. The company decided to buy back 20% of its share capital from its shareholders at Rs. 8 per share.

Pass Journal entries in the books of Sunrise Ltd. to record the above transactions.

(b) Explain the following:

(i) Deferred tax liability.

(ii) Corporate dividend tax.

(c) Show journal entries in the books of transferee company when amalgamation is in the nature of purchase.

(d) Explain briefly the need for preparation of consolidated Balance Sheet.

(e) The following information is taken from Visual Co. Ltd.:

(i) Capital:

900 6% preference shares of Rs. 100 each fully paid.

9000 equity shares of Rs. 10 each fully paid.

(ii) External liabilities Rs. 15,000.

(iii) Other equity Rs. 3,000.

(iv) The average profit (after taxation) earned every year is Rs. 10,500.

Calculate the value of each equity share.

(f) Arohan Ltd. decided on 30-03-2023 to convert its 80,000 fully paid equity shares of Rs. 10 each into Rs. 7 per share fully paid up and to return Rs. 3 per share to equity shareholders.

Pass necessary Journal entries in the books of Arohan Ltd.

4. Answer the following questions: (any four)             10x4=40

(a) What is goodwill? Explain the various methods of valuation of goodwill.       2+8=10

(b) Write four conditions for effecting capital reduction. Explain the complete procedure to be followed for capital reduction.         4+6=10

(c) The following ledger balances are extracted from the books of Divine Ltd. on 31-03-2023:

Particulars	Amount (Rs.)
20,000 equity shares of Rs. 100 each Sundry Creditors Bank Loan Proposed Dividend 10% Debentures General Reserve Securities Premium Reserve Surplus in Statement of Profit & Loss on 31-03-2023 Livestock Land & Building Cash in Hand Cash at Bank Stock in Trade Furniture Plant & Machinery Sundry Debtors Prepaid Expenses Long Term Investments	20,00,000 7,20,000 4,00,000 1,00,000 8,00,000 2,80,000 1,00,000 4,00,000 3,00,000 10,80,000 1,00,000 2,00,000 4,20,000 6,00,000 10,00,000 8,80,000 20,000 2,00,000

You are required to prepare a Balance Sheet of the company as per schedule III of the Companies Act, 2013.

(d) Sailash Ltd. and Kailash Ltd. decided to amalgamate and a new company SK Ltd. is formed to take over both the companies as on 31st March, 2023. The following are the Balance Sheets as on that date:

Balance Sheet

Particulars	Amount
	Sailash Ltd.	Kailash Ltd.
I. Equity and Liabilities: 1. Shareholder’s Fund (a) Share Capital Equity shares of Rs. 10 each fully paid (b) Reserve and Surplus Reserve Fund Dividend Equalisation Fund Workman Compensation Fund Surplus in the Statement of Profit & Loss 2. Non-current Liabilities 10% Debenture 3. Current Liabilities: Trade Payables: Sundry Creditors   Bills Payable	10,00,000 4,00,000 - 40,000 60,000 - 2,00,000 1,00,000	6,00,000 3,00,000 2,00,000 - 1,00,000 1,00,000 2,40,000 60,000
Total	18,00,000	16,00,000
II. Assets 1. Non-current Assets (a) Property and Equipment (b) Goodwill (c) Other Intangible Assets Patent & Trade mark 2. Current Assets (a) Inventory (b) Trade Receivables: Debtors Bills Receivable (c) Cash & Cash Equivalents	9,00,000 2,00,000 - 4,00,000 2,00,000 - 1,00,000	8,90,000 1,60,000 1,05,000 3,00,000 1,00,000 40,000 5,000
Total	18,00,000	16,00,000

Calculate the purchase consideration of both the companies and prepare the amalgamated Balance Sheet of SK Ltd. assuming the amalgamation is in the nature of purchase.

(e) The following are the Balance Sheets of “Himesh Ltd.” and its subsidiary Co. “Shekhar Ltd.” as on 31st March, 2023:

Balance Sheet

Particulars	Amount
	Sailash Ltd.	Kailash Ltd.
I. Equity and Liabilities 1. Shareholder’s Fund (a) Share Capital Equity shares of Rs. 10 each (b) Reserve and Surplus Surplus in the Statement of Profit & Loss 2. Current Liabilities Trade Payables: Sundry Creditors	1,20,000 10,000 34,000	40,000 8,000 12,000
Total	1,64,000	60,000
II. Assets 1. Non-current Assets Plant, Property and Equipment 2. Non-current Investment 3200 shares in Shekhar Ltd.	1,36,000 28,000	60,000 -
Total	1,64,000	60,000

The shares were acquired by Himesh Ltd. on 1st October, 2022. Prepare the consolidated Balance Sheet of Himesh Ltd. and Shekhar Ltd. as on 31-03-2023 and show necessary workings.

(f) Coal India Ltd. resolved to utilize Rs. 2,50,000 of its General Reserve Balance to declare a bonus to shareholders by paying the final call of Rs. 2.50 per share on 1,00,000 equity shares of Rs. 10 each. The company further decided to utilize the balance of Securities Premium Reserve A/c of Rs. 2,00,000 by issuing fully paid up bonus shares.

Pass Journal entries in the books of company and also show the ratio of bonus issue.

(g) What is right share? Explain the advantages of right issue.        4+6=10

(h) Write notes on:         5+5=10

(i) Amalgamation in the nature of merger.

(ii) Different forms of internal reconstruction.

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