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    QP - Corporate Accounts 2012

    Uploaded by

    Joydip Dasgupta
    The document is an assessment for a corporate accounting class containing multiple choice and long answer questions. Group A contains 6 multiple choice questions related to topics like holding company accounts, capital redemption reserve, securities premium account, and double account system. Group B contains 3 long answer questions asking students to: 1) Pass journal entries and prepare a balance sheet after amalgamation of two companies. 2) Record journal entries for redemption of preference shares and bonus issue of equity shares. 3) Value a company's shares using asset backing and yield methods.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    QP - Corporate Accounts 2012

    Uploaded by

    Joydip Dasgupta
    47 views2 pages
    The document is an assessment for a corporate accounting class containing multiple choice and long answer questions. Group A contains 6 multiple choice questions related to topics like holding company accounts, capital redemption reserve, securities premium account, and double account system. Group B contains 3 long answer questions asking students to: 1) Pass journal entries and prepare a balance sheet after amalgamation of two companies. 2) Record journal entries for redemption of preference shares and bonus issue of equity shares. 3) Value a company's shares using asset backing and yield methods.

    Original Description:

    self made Question Paper on Corporate Accounts

    Original Title

    QP_ Corporate Accounts 2012

    Copyright

    © © All Rights Reserved

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    The document is an assessment for a corporate accounting class containing multiple choice and long answer questions. Group A contains 6 multiple choice questions related to topics like holding company accounts, capital redemption reserve, securities premium account, and double account system. Group B contains 3 long answer questions asking students to: 1) Pass journal entries and prepare a balance sheet after amalgamation of two companies. 2) Record journal entries for redemption of preference shares and bonus issue of equity shares. 3) Value a company's shares using asset backing and yield methods.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    47 views2 pages

    QP - Corporate Accounts 2012

    Uploaded by

    Joydip Dasgupta
    The document is an assessment for a corporate accounting class containing multiple choice and long answer questions. Group A contains 6 multiple choice questions related to topics like holding company accounts, capital redemption reserve, securities premium account, and double account system. Group B contains 3 long answer questions asking students to: 1) Pass journal entries and prepare a balance sheet after amalgamation of two companies. 2) Record journal entries for redemption of preference shares and bonus issue of equity shares. 3) Value a company's shares using asset backing and yield methods.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Page | 1

    NABADWIP VIDYASAGAR COLLEGE


    3
    RD
    INTERNAL ASSESSMENT
    THIRD YEAR B.COM (H)
    PAPER V-CORPORATE ACCOUNTING
    FULL MARKS: 20, TIME: 45 MINUTES

    GROUP A (ANSWER ANY FOUR QUESTIONS) [41=4]
    1. In holding company accounts, degree of control depends upon holding of ______________
    only
    2. Transfer to Capital Redemption Reserve protects the interest of the ______________
    3. Section ___________ of the Companies Act 1956 deals with treatment of Securities
    Premium Account.
    4. In respect of _______________ securities and Debentures, the price quoted is ex-interest
    unless otherwise stated.
    5. Buy back of shares from the open market may be through stock exchange or _____________
    process.
    6. Purchased goodwill arises on an _____________
    7. Under Double Account System, the Balance Sheet is prepared in ______________ parts.


    GROUP B (ANSWER ANY TWO QUESTIONS) [28=16]
    8. The summarised Balance Sheets of A Ltd and B Ltd as at 31
    st
    January 2011 are as under:
    Liabilities A Ltd
    Rs.
    B Ltd
    Rs.
    Assets A Ltd
    Rs.
    B Ltd
    Rs.
    Equity Shares of Rs 15 each
    Equity Shares of Rs 10 each
    Reserve
    Profit and Loss Account
    Creditors
    120000
    -
    60000
    10000
    30000
    -
    100000
    50000
    20000
    10000
    Land and Buildings
    Stock
    Debtors
    Cash at Bank
    140000
    30000
    10000
    40000
    120000
    15000
    25000
    20000
    2200000 180000 2200000 180000

    The above two companies agree to amalgamate and form a new company AB Ltd on the following
    conditions
    a) AB Ltd will take over all the assets and liabilities of A Ltd and B Ltd.
    b) The entire purchase consideration will be satisfied by the issue of 28600 equity shares of Rs
    10 each of AB Ltd.
    c) For the purpose of amalgamation, the value of each equity share is agreed at Rs 25 and Rs
    12.50 for A Ltd and B Ltd respectively.
    d) The creditors are to be paid off by AB Ltd.
    You are required to;
    i. Pass journal entries to close the books of AB Ltd
    ii. Prepare the Balance Sheet of AB Ltd.
    Page | 2


    9. The following is the Balance Sheet of H Ltd as on June 30, 2011.
    Liabilities Rs Assets Rs
    Share Capital
    3000 8% Preference Shares of Rs
    10 each
    6000 Equity Shares of Rs 10 each
    fully paid
    Securities Premium
    General Reserve
    Profit & Loss A/c
    Sundry Creditors


    30000

    60000
    29000
    40000
    24500
    19500
    Fixed Assets
    Investments
    Stock-In-Trade
    Sundry Debtors
    Cash at Bank
    100000
    21000
    44000
    16000
    22000
    203000 203000

    The company exercised its option to redeem, on July 1, 2011, the whole of the preference
    shares at a premium of 5%. To assist in financing the redemption all the investments were
    sold realising Rs 19500. On September 1, 2011 the company made a bonus issue of one
    equity share fully paid for every six equity shares held on that date. The appropriate
    resolution having been passed, the above transactions were duly completed. You are
    required to show the Journal Entries to record the above transactions in the books of the
    company.

    10. The following particulars of a company are available:
    a. Equity Share Capital: 10000 equity shares of Rs 10 each fully paid
    b. Preference Share Capital: 1000, 12% Preference Shares of Rs 100 each fully paid
    c. Reserve and Surplus: Rs 15000
    d. External Liabilities: Creditors Rs 12000; Bill Payable Rs 6000
    e. The average normal profit after tax earned each year by the company Rs 28500
    f. Transfer to General Reserve 10%
    Assets of the company include one fictitious item of Rs 800. The normal rate of return in
    respect of the equity share of this type of company is ascertained at 10% (ignore
    goodwill).
    Compute the value of the Companys share by (a) the asset backing method and (b)
    yield method.

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