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Advanced Corporate Accounting 2024 Solved Question Paper [Gauhati University BCom 6th Semester CBCS]

Get the solved question paper for Gauhati University BCom 6th Semester Advanced Corporate Accounting 2024. Prepare effectively with detailed solutions
The Gauhati University BCom 6th Semester Advanced Corporate Accounting Solved Question Paper 2024 CBCS is a valuable resource for students looking to prepare for their exams. As no official solutions are available, we provide detailed solutions to this question paper, covering short-answer, long-answer, and practical problems. The topics include company liquidation, banking and insurance accounting, and financial statement analysis. These solutions are designed to help students understand the core concepts and improve their problem-solving skills.

Gauhati University BCom 6th Semester Advanced Corporate Accounting Solved Question Paper 2024 CBCS

GU BCom 6th Sem. Advanced Corporate Accounting Solved Question Paper 2024

2024
(Sem-6/CBCS) HE 3 (ACA)
COMMERCE (Honours Elective)
Paper: COM - HE -6036
(Advanced Corporate Accounting)
Full Marks: 80
Time: Three hours

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

1. Answer the following as directed: 1×10 = 10

(a) In India, there are ____ authorities that can set and issue Accounting Standards.
Answer: Two authorities.
Explanation: The two authorities responsible for setting and issuing accounting standards in India are the Institute of Chartered Accountants of India (ICAI) and the National Financial Reporting Authority (NFRA).

(b) Statutory auditor's report forms part of the annual report by companies.
Answer: True.
Explanation: The statutory auditor’s report is an important part of a company's annual report as it provides an independent evaluation of the company’s financial statements.

(c) Payment made to secured creditors is not shown in the Liquidator's Statement of Account.
Answer: False.
Explanation: Payments to secured creditors are shown in the Liquidator's Statement of Account as they have priority over unsecured creditors in the distribution of the company's assets.

(d) What is meant by winding up of a company?
Answer: Winding up of a company means ending its business, selling its assets, and paying off its debts before closing the company.

(e) Rebate on bills discounted for a banking company is an income.
Answer: True.
Explanation: Rebate on bills discounted is considered income for a banking company because it is an earning from services rendered in relation to discounted bills.

(f) Profit and Loss Account of a banking company is prepared in Form _____ of the Third Schedule of the Banking Regulation Act.
Answer: Form B.
Explanation: The Banking Regulation Act specifies that the Profit and Loss Account for banks must be prepared in Form B, which outlines the income and expenses in a specific format.

(g) What is 'surrender value' in respect of an insurance company?
Answer: Surrender value is the amount paid to the policyholder if they cancel their insurance policy before it matures.

(h) Valuation Balance Sheet is prepared to know the value of _____ life insurance business.
Answer: Life insurance business.
Explanation: The Valuation Balance Sheet helps assess the value of the life insurance business and is used to determine the company's solvency and financial health.

(i) Profit/Loss on sale of investment is transferred to Profit and Loss Account.
Answer: True.
Explanation: The profit or loss from the sale of investments is recorded in the Profit and Loss Account as it directly affects the company’s financial performance.

(j) What is meant by profit prior to incorporation?
Answer: Profit prior to incorporation refers to the profit earned by a company before it is officially registered or starts its business operations.

2. Answer the following questions: 2×5 = 10

(a) Mention two features of International Financial Reporting Standards.
Answer:

  1. Global Applicability: IFRS is used worldwide by businesses in over 140 countries for preparing financial statements.
  2. Transparency and Comparability: It aims to make financial statements transparent and comparable across different companies and industries globally.

(b) State two features of Liquidator's Final Statement of Account.
Answer:

  1. Detailed Breakdown: It provides a detailed breakdown of assets and liabilities, showing how the company’s funds were distributed to creditors and shareholders.
  2. Final Settlement: It includes the final settlement of claims, showing the amounts paid to creditors and any remaining balances.

(c) Explain the term 'non-banking assets.'
Answer: Non-banking assets refer to assets that are not part of the regular banking business, such as real estate or fixed assets held by a bank or financial institution that are not used for banking operations.

(d) What is re-insurance claim?
Answer: A re-insurance claim refers to the claim made by an insurance company to another insurance company (reinsurer) for sharing the risk and covering the losses on policies that the first insurer has issued.

(e) Mention two features of an Investment Account.
Answer:

  1. Record of Investments: It shows the details of investments made by the company, such as stocks, bonds, or other financial instruments.
  2. Income and Gains: It includes information about the income earned from these investments, like dividends or interest, and any capital gains.
3. Answer the following questions (any four): 5×4 = 20

(a) Write five distinctions between International Financial Reporting Standards (IFRS) and Indian Accounting Standards (Ind. AS).
(b) State the list of preferential creditors in respect of liquidation of a company.
(c) Mention the books of accounts to be maintained by a banking company.
(d) Write a note on 'reserve for unexpired risk.'
(e) Briefly explain the treatment of profit or loss prior to incorporation in the books of account of the company.
(f) State different modes of winding up of a company.

4. Answer the following as directed: 10×4 = 40

(a) SPM Ltd. went into voluntary liquidation on 31st March, 2022 on which date the position of the company was as follows:

  • Cash in hand: ₹13,000
  • Share capital: 60,000 equity shares of ₹10 each, ₹9 per share called up: ₹5,40,000
  • Trade creditors: ₹1,90,000
  • Bank overdraft: ₹40,000
  • Creditors for tax and government revenue: ₹52,500
  • Creditors for supply of raw materials: ₹3,85,000
  • Secured creditors (Secured on Machinery): ₹1,87,500
  • Interest due to secured creditors: ₹5,000

Machinery realised ₹1,80,000 and the other assets realised ₹1,20,000. The liquidation expenses was ₹8,000, and the liquidator was entitled to a remuneration of 6% on the assets realised excepting cash in hand and 3% on the amount distributed to the unsecured creditors.

Prepare the Liquidator's Final Statement of Account.

Solution

Liquidator's Final Statement of Account.

Liquidator's Final Statement of Account.

Or

Explain the need and objectives of corporate financial reporting.

SolutionFor Complete Solution Please Download our Solved  Question Paper in PDF.

(b) From the following particulars, prepare Profit and Loss Account of Bank of Boroda Ltd. for the year ending on 31st March, 2023:

  • Commission and Brokerage: ₹5,000
  • ATM charges: ₹2,000
  • Discount on bills discounted: ₹2,10,000
  • Auditor's fee: ₹5,000
  • Establishment expenses: ₹60,000
  • Interest on loans: ₹2,80,000
  • Interest on fixed deposit: ₹2,98,000
  • Interest on cash credit: ₹2,40,000
  • Sundry expenses: ₹2,000
  • Interest on Current A/c: ₹45,000
  • Interest on overdraft: ₹60,000
  • Interest on Savings Bank A/c: ₹72,000
  • Printing and advertising: ₹5,000
  • Unexpired discount on bills discounted
  • Rent and taxes: ₹55,000
  • Make a provision of ₹30,000 for doubtful debts. Interest income of ₹2,000 on non-performing assets cannot be recognized as income in the Profit and Loss Account during the year.

Solution

profit and loss account solution jpg

Or

State the meaning of banking companies. Explain various types of accounts that can be opened in a bank.

SolutionFor Complete Solution Please Download our Solved  Question Paper in PDF.

(c) From the following particulars, prepare Fire Revenue Account of United India Insurance Company for the year ended on 31st March, 2023:

  • Reserve for unexpired risk on 1.4.2022: ₹26,500
  • Additional reserve on 1.4.2022: ₹5,000
  • Claims paid: ₹32,500
  • Premium received: ₹50,500
  • Reinsurance premium: ₹9,000
  • Profit on sale of investment: ₹4,500
  • Legal charges regarding claims: ₹775
  • Reinsurance recoveries: ₹1,350
  • Commission on direct business: ₹5,550
  • Commission on reinsurance ceded: ₹200
  • Commission on reinsurance accepted: ₹4,500
  • Outstanding claims (31st March 2023): ₹3,500
  • Outstanding claims (31st March 2022): ₹4,750

Or

Explain the method followed for assessing the profit of life insurance business.

AnswerFor Complete Solution Please Download our Solved  Question Paper in PDF.

(d) X Ltd. which was incorporated on 1st May, 2023 acquired the business of Y Ltd. on 1st January, 2023. The accounts were closed on 30th September, 2023. The Gross Profit for the period was ₹84,000.

Details of other expenses:

  • General expenses: ₹14,400
  • Director's remuneration: ₹24,000
  • Preliminary expenses: ₹4,000
  • Rent up to June 30, 2023: ₹12,000 per annum (increased by 30% thereafter)
  • Salary of the manager: ₹15,300 per annum
  • The company earned a uniform gross profit. The revenue from operations up to September, 2023 was ₹1,96,000. The monthly average of revenue from operations for the first four months of the year was one-half of the remaining period.

Prepare the statement showing pre and post-incorporation Profit/Loss.

Or

On 1.4.2023, Mr. Investor purchased 1,000, 12% Debentures of X Ltd. at ₹99 cum-interest (face value ₹100). Interest is payable half-yearly on June 30 and December 31. The Investor sold 400 Debentures at ₹102 ex-interest on September 1, 2023.

Prepare an Investment Account in the books of the investor for the year ended on 31st March, 2024. Ignore income tax and brokerage.

SolutionFor Complete Solution Please Download our Solved  Question Paper in PDF.

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Final Words

By using the Gauhati University BCom 6th Semester Advanced Corporate Accounting Solved Question Paper 2024 CBCS, students can strengthen their understanding of accounting principles, practice solving various problems, and gain confidence for the exam. These solutions provide clarity and will support students in achieving better results in their exams.

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