Reg. No.

18CR1007 DECEMBER 2020

B.Com., DEGREE EXAMINATIONS III SEMESTER
BRANCH :CORPORATE SECRETARYSHIP

CORPORATE ACCOUNTING-I
CUCOR-7 (2008-09 TO 2018-19)

TIME : 3 HRS MAX MARKS : 75

SECTION-A (10X1=10 MARKS)

ANSWER ALL THE QUESTIONS

1. The maximum share capital of a company is authorised by its -

--------.
(a)Memorandum (b) Article
(c) Prospectus (d) Rules

2. A fixed rate of interest is applicable for --------- shares of a

company.
(a) Equity (b) Preference
(c) Ordinary (d) All the above

3. Transfer of funds to --------- account is done during redemption

of preference shares.
(a) CRR (b) PRR (c) DRR (d) NRR

4. The term Cum-Interest denotes --------- interest.

(a) Excluding (b) Including
(c) Additional (d) Penal
5. --------- consideration is paid for purchase of business of a sole
trader or a firm.
(a) Sales (b) Purchase (c) Credit (d) Debit

6. Pre-incorporation profits are transferred to --------- reserve

account.
(a) Capital (b) Revenue (c) General (d) Secret

7. Dividend paid in the middle of the financial year is known as --

------- dividend.
(a) Lump (b) Final (c) Interim (d) Bonus

8. An example for current asset is ---------.

(a) Building (b) Car (c) Goodwill (d) Stock

9. The profit earned by similar businesses generally is called ------

profit.
(a) Normal (b) Average (c) Capital (d) Super

10.The average of intrinsic value and yield value of a share is

termed as --------- value.
(a) Market (b) Fair (c) Nominal (d) Net

SECTION-B (5X4=20 MARKS)

ANSWER ANY FIVE QUESTIONS

11.Anbu Ltd. purchased a machine worth Rs.10,00,000 from

Ravi. It issued equity shares of Rs.10 each fully paid up in
satisfaction of her claims. Make journal entries in the books of
Anbu Ltd.
12.Give journal entries in the books of Bheem Ltd. in the
following cases:
(a)Redemption of Rs.1,00,000 preference shares by converting
them into equity shares of Rs.10 each issued at 25 %
premium.
(b) Redemption of Rs.95,000 preference shares by converting
them into equity shares of Rs.10 each issued at 5 %
discount.
13. How do you classify underwriting?

14.On 31-12-2000, the trial balance of XYZ Ltd. shows provision

for tax of Rs.1,00,000 representing the provision of the
previous year. The trial balance also shows income tax paid
Rs.90,000. It is estimated that a provision of Rs.1,40,000 is
required for the current year’s income. Tax deducted at source
while receiving interest on investments amounted to
Rs.20,000. The gross amount of interest was shown in the
P & L a/c. Write a provision for income tax account
incorporating the above details.

15.The sundry assets of a company were valued at Rs.12,60,000.

The current liabilities amounted to Rs.2,10,000. Preference
share capital of the company is Rs.4,00,000. Calculate the
value of an equity share under net assets method assuming that
there are 60,000 equity shares of Rs.10 each.

16.Malabar Ltd. had Rs.50,00,000 10 % Debentures outstanding

on 01.01.2018. On 01-04-2018, the company purchased 1,000
Debentures of Rs.100 each at Rs.99 in the open market for
immediate cancellation. Give journal entries for purchase and
cancellation of debentures if the above purchase rate is at Ex-
Interest. Assume that interest is payable every year on 30th
June and 31st December.
17. Draft a short note on acquisition of business.

18. Calculate the amount of goodwill on the basis of three years

purchase of the last five years’ average profits. The profits for
the last five years are:
Year Rs.
I 4,800
II 7,200
III 10,000
IV 3,000
V 5,000

SECTION-C (3X15= 45 MARKS )

ANSWER ANY THREE QUESTIONS

19. Lakshmi Ltd. issued 2,000 equity shares of Rs.100 each at a

premium of 10 % payable Rs.25 on application, Rs.35 on
allotment (including premium), Rs.20 on first call and Rs.30
on final call. 1,800 shares were applied for and allotted. All
the money was received with the exception of first and final
calls on 200 shares held by Kannan. These shares were
forfeited. Give journal entries in the books of the company.

20. John Ltd. issued 1,000 9 % Debentures of Rs.100 each.

Give journal entries in the books of the company, in the
following cases:
(i) Issued at par, redeemable at par.
(ii) Issued at 5 % discount, redeemable at par.
(iii) Issued at 10 % premium, redeemable at par.
(iv) Issued at par, redeemable at 10 % premium.
(v) Issued at 5 % discount, redeemable at 10 % premium.
21. Shivaji Ltd. was incorporated on 01-10-2017 to acquire the
running business of Pallavan Bros. with effect from
01-04-2017. The profit and loss account of the company on
31-03-2018 is shown below:
Particulars Rs. Particulars Rs.
To Postage Expenses 10,000 By Gross Profit 4,50,000
To General expenses 1,08,000 b/d
To Preliminary expenses
written off 20,000
To Commission to 1,20,000
Salesman 40,000
To Company Secretary’s 1,52,000
Salary
To Net Profit
4,50,000 4,50,000
Find out the profits of the company during the pre and post
incorporation periods. Sales made by the company before and
after incorporation periods were Rs.5,00,000 and Rs.10,00,000
respectively.

22. Describe various types of assets of a company.

23.The annual net profits of a firm during the last four years are
Rs.28,000, Rs.30,000, Rs.29,000 and Rs.33,000. The capital
employed by the firm is Rs. 2,00,000. The normal rate of
return expected in this type of business is 12%. Calculate the
value of goodwill on the basis of 2 years purchase of super
profits.