Loyola College Adv. Corporate Accounts Question Papers Download
Loyola College B.Com April 2007 Adv. Corporate Accounts Question Paper PDF Download
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
|
B.Com. DEGREE EXAMINATION –COMMERCE
SIXTH SEMESTER – APRIL 2007
CO 6606 – ADV. CORPORATE ACCOUNTS
Date & Time: 20/04/2007 / 9:00 – 12:00 Dept. No. Max. : 100 Marks
_____________________________________________________________________________________
SECTION: A
Answer any ten only: 10 x 2 = 20
- What is Rebate on Bills discounted?
- On 1st October 2005, Bank discounted a bill if Rs.20, 000 @ 12% p.a and the bill has on that date exactly four months to run considering the days of grace also. Accounts are closed on 31st Journalize transaction.
- State True or False:
- The Percentage of Profit to be transferred to statutory reserve by the banking company is 20%.
- Letter of Credit and Endorsement are shown in the bank accounts under the head of Contingent Liabilities.
- What is Re insurance?
- From the following particulars calculate the premiums earned to be derived in schedule 1 of a life insurance company.
Premium less reinsurance Rs.1, 61,500, Accrued Premium Rs.5, 000 and Bonus in reduction of premium not yet adjusted Rs.5, 000.
- Write short note on: Cost of Control.
- Stock of Rs.3, 20,000 held by H Ltd consists of Rs.1, 20,000 goods purchased from S Ltd who has charged Profit on Sale of 20%. H Ltd acquired 80% of shares of S Ltd. Calculate the amount of unrealized profit included in stock.
- Mention any two characteristic features of double account system.
- Compute the amount to be charged to Revenue A/C from the information given below:
Original cost of an asset Rs.3, 00,000. Present cost of replacement Rs.3, 90,000. Amount spent for replacement Rs.4, 70,000.
- Write a Note on “Purchase Consideration”.
SECTION – B
Answer Any Five Only. 5 x 8 = 40
- Write short note on: a) reversionary bonus; b) Actuarial valuation; c) Endowment Policy; d) Bonus utilized in reduction of premium.
- Give the “proforma” of schedule 9 of balance sheet of the bank with imaginary figures.
- Distinguish between Merger method and Purchase method of Accounting for amalgamation.
- The Trial Balance of the Neena Bank Ltd., As on 30th June 2004 shows the following balances:
Interest and discount 45,40,600
Rebate on bills discounted (1.7.2003) 4,750
Bills discounted and Purchased 3,37,400
The unexpired discount as on 30.6.04 is estimated to be Rs.5,560. Draft necessary adjusting entries and calculate the amount of interest and discount to be credited to Profit and Loss Account.
- The life assurance fund of a company on 31.3.2006 was Rs.29, 00,000. Its net liability on that date was estimated to be Rs.19, 00,000 by the company’s actuary. The investments held by the company amounted to Rs.1, 60,00,000 against which the investment reserve stood at Rs.2, 50,000. The investments have to be written down by Rs.3, 50.000.
The company declared a reversionary bonus of Rs.20 per Rs.1000 with the option to policyholders of bonus in cash at the rate of Rs.8 per Rs.1000. Total value of policies in force was Rs. 8 crores. ¼ of the policyholders in value decided to receive the bonus in cash. The company estimated that its liability for income tax would be Rs.1, 60,000.
Draft journal entries to record the above.
- City Electricity Ltd. earned a profit o fRs.8, 45,000 during the year ended 31st March 2005 after debenture interest @ 7 ½ % on Rs.2, 50,000. With the help of the figures given below, show the disposal of profits:
Original Cost of fixed Assets 1,00,00,000
Formation and other expenses 5,00,000
Monthly average of current assts (net) 25,00,000
Reserve Fund (represented by 4% Govt. Securities) 10,00,000
Contingencies Reserve Fund Investments 2,50,000
Loan from Electricity Board 15,00,000
Total depreciation written off to date 20,00,000
Tariff and Dividend Control Reserve 50,000
Security deposits received from customers 2,00,000
Assume Bank Rate to be 6%
- The Mangalore Municipal Corporation replaces part of its existing water mains with larger mains at the cost of Rs.75, 00,000. The original cost of laying the old mains was Rs.15, 00,000 and the present cost of laying those mains would be three times the original cost. Rs.1, 25,000 was realized by the sale of old materials and old materials of Rs.3, 75,000 were used in the replacement and included in the cost given above.
Give the journal entries to record the above and show the allocation of expenses between revenue and capital along with replacement account.
- Balance sheet of H.Ltd, and S.Ltd as on 31.12.2000 given below:
Liabilities HLtd. S.Ltd. Assets H.Ltd. S.Ltd.
Share Capital 10,000 5,000 sundry assets 17,000 10,000
(Rs.1 each)
General Reserve 5,000 ——— 4000 shares in
S.Ltd 5000
Creditors 3,000 3,200
P&L A/C 4,000 1,800
22,000 10,000 22,000 10,000
H.Ltd. purchased shares in S.Ltd. On 30th June, 2000. On 1st January 2000 the balance sheet of S.LTd. showed loss of Rs.3, 000 which was written off out of the profits earned during 2000.Profits are assumed to accrue evenly throughout the year. Prepare consolidated Balance sheet.
SECTION – C
Answer any two only. 2 x 20 = 40
- The following are the balance sheets of A.Ltd., and B.Ltd., as on 31-3-2005
Liabilites A.Ltd B.Ltd. Assets A.Ltd. B.LTd.
Rs. Rs. Rs. Rs.
Share Capital 10,00,000 2,50,000 Land & Building 7,50,000 1,00,000
(Rs.100 each) Investments 1,25,000 ———
P&L A/C 7,50,000 1,25,000 Current Assets 16,25,000 3,50,000
Current
Liabilities 7,50,000 75,000
25,00,000 4,50,000 25,00,000 4,50,000
A Ltd has agreed to absorb B Ltd. On the following terms: A) It is assessed that Net assets of B Ltd may be taken at RTs.3, 62,500, which is to be satisfied by issue of fully paid shares of Rs.100 each by B Ltd at par. B) A.Ltd’s investments include 20% of the shares in B Ltd. At the cost of Rs.60, 000.
Close the books of BLTd and give journal entries and Balance sheet in the books
of A.Ltd.
- From the following figures taken from the books of Money Bank Ltd., prepare profit and loss account and balance sheet as on 31.12.2004.
Debit Balances ( Rs.in ‘000) Credit Balances ( Rs.in ‘000)
Reserve fund investment 350 Share Capital 500
Money at call&short notice 450 Reserve Fund 350
Investments 250 Fixed deposits 950
Interest accrued and paid 200 Savings bank deposits 3000
Rent 20 Current deposits 8000
Salaries 69 Profit &Loss A/c1.1.2004 200
Directors fees 6 Bank draft 310
P.F contribution 5 Unclaimed dividends 20
General Expenses 10 Travelers Cheques 500
Premises 1200 Borrowed from banks 800
Cash 150 Interest and Discounts 700
Stock of stationery 10 Commission 50
Cash with RBI 1400 Branch adjustments 340
Balance with other banks 1600
Owing by foreign-
-Correspondent 100
Bills discounted 600
Loans 3000
Cash Credits and o/d 4000
Dividend 50
——— — ———
15,720 15,720
———– ———
Adjustments:
Rebate on bills discounted for unexpired term isRs.5000
A Provision for doubtful debts amounting to Rs.30, 000 is required
Create provision for taxation to the extent of Rs. 1,00,000
Charge 5% depreciation on premises on original cost.
Traveler’s Cheques paid amounted to Rs.20, 000.
- Following are the Balance Sheets of HLtd. and its subsidiary SLtd. as on31.3.05
Liabilities H. Ltd. S. Ltd. Assets H. Ltd S Ltd
Rs. Rs. Rs. Rs.
Share Capital 10, 00,000 4, 00,000 Fixed Assets 8, 00,000 5,00,000
(Rs.100 each)
General Reserve 3,20,000 1,20,000 Stock 2, 00,000 1,80,000
P&L A/C 2,80,000 1,80,000 Debtors 80,000 1,50,000
Creditors 1,60,000 1,80,000 Investments:
3200 shares in
S.Ltd at cost 6, 00,000 ——–
Bank 80,000 50,000
17,60,000 8.80,000 17,60,000 8,80,000
____________________________________________________________________________________________
H.Ltd. acquired the shares in S.Ltd on 1st Oct.2004. The Profit and loss account of S.Ltd. on 1- 4 – 2004 showed a balance of Rs.1, 40, 000 out of which a dividend of 20% was paid for the year 2003-2004 in the month of Oct 2004. H.Ltd credited the dividend to its Profit and Loss account. Sundry creditors of S.Ltd includes Rs.30, 000 for goods supplied by H.Ltd. the closing stock of S.Ltd includes goods worth Rs.12, 000 which were supplied by H.Ltd. at a profit of 25% on cost. Prepare Consolidated Balance Sheet.
Loyola College B.Com April 2008 Adv. Corporate Accounts Question Paper PDF Download
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.Com. DEGREE EXAMINATION – COMMERCE
|
SIXTH SEMESTER – APRIL 2008
CO 6606 – ADV. CORPORATE ACCOUNTS
Date : 23/04/2008 Dept. No. Max. : 100 Marks
Time : 9:00 – 12:00
SECTION A
Answer All questions 10 x 2 = 20
- What do you mean by money at call and short notice?
- What is meant by bonus in reduction of premium?
- What do you understand by ‘pooling of interest’?
- Distinguish between double accounting and single accounting system.
- Write short note on net payment method of purchase consideration.
- From the following , you are required to calculate the amount of claims to be shown
in the revenue account for year ending 31.12.2005.
Claims paid in 2005 Rs. 3,06,000; Claim on account of re-insurance was Rs. 75,000;
Claim outstanding for 2004 Rs. 45,000;Claims outstanding for the year 2005
Rs. 36,000.
- Under which schedule of the Bank will the following items appear in the final
statement? a) Staff welfare expenses; b) Interest paid on fixed deposit; c) Interest on
balance deposited with RBI.
- While closing the books of a bank on 31st December 2003, you find in the loan
ledger as unsecured balance of Rs. 2 lakhs in the account of a merchant whose
financial condition is reported to you as bad. Interest on the same account amounted
to Rs. 20,000 during the year. During the year 2004, the bank accepted 75 paise in the
rupee on account of the debt upto 31st December 2003. Find out the amount of bad
debts.
- Calculate the amount of unrealized profit included in stock from the following
information.
Closing stock of Rs. 6,40,000 held by ‘A’ Ltd. consist of Rs. 2,40,000 goods
purchased from “B” Ltd. who charged 20% profit on sales. “A” Ltd. is the
holding company of “B” Ltd. with 80% share holding.
10.The revenue account of life insurance company shows the life assurance fund on 31st
March, 2002, at Rs. 62,21,310 before taking into account the following items:
(i) Claims covered under re-insurance Rs. 12,000 (ii) Bonus utilized in reduction of
life insurance premium Rs. 4,500 (iii) Interest accrued on securities Rs. 8,260
What is the life assurance fund after taking into account the above omissions?
SECTION B
Answer any FIVE only. 5 x 8=40
- Write short notes on (a) valuation balance sheet, (b) rebate on bill discounted,
(c) minority interest , (d) re-insurance
- Give the format of Profit & Loss account prescribed in Banking Regulation Act.
- Bright Electricity Ltd. earned a profit of RS. 26,95,000 for the year ended
31st March 2002 after debenture interest at 14% on Rs. 5,00,000. Calculate
the reasonable return after taking into consideration the following facts also:
Fixed assets (original cost) 2,00,00,000
Formation and other expenses 10,00,000
Monthly average of current assets(net) 50,00,000
Reserve fund(represented by 8% Government securities) 20,00,000
Contingencies reserve investments 5,00,000
Loan from Electricity Board 30,00,000
Total depreciation on fixed assets, written off to date 40,00,000
Tariffs and dividends control reserve 1,00,000
Security deposits received from customers 4,00,000
Assume the bank rate to be 10%
- X Ltd. agreed to acquire the business of Y Ltd. as on 31.12.1999. The summary of
the Balance Sheet of Y Ltd. on that date was as follows:-
Rs. Rs.
Equity Shares of Rs. 10 cash 6,00,000 Goodwill 1,00,000
General Reserve 1,70,000 Land & Bldg 6,40,000
Profit & Loss A/c. 1,10,000 Stock 1,68,000
6% Debentures 1,00,000 Debtors 36,000
Creditors 20,000 Cash 56,000
————- ————
10,00,000 10,00,000
The consideration payable to X Ltd. was agreed as follows:
- a cash payment of Rs. 2.50 for every share in Y Ltd.
- Issue of 9000 equity shares of Rs. 10/- fully paid in X Ltd. having a agreed value of Rs. 15 per share.
- Issue of such an amount of fully paid 5% Debentures of X Ltd. at 96% as is sufficient to discharge 6% debentures of Y Ltd. at a premium of 20%
Assets are revalued by X Ltd. as follows:
Land & Building Rs. 12,00,000
Stock Rs. 1,42,000
Debtors at book value less 5% for doubtful debtors
Prepare the realisation account in the books of Y Ltd.
- Life insurance gets its valuation made once in every two years. It’s life assurance
fund on 31.12.96 stood at Rs. 55,55,000 before providing for Rs. 55,000, being
shareholders dividend for 1996. Its acturial valuation on 31.12.96 disclosed a net
liability of Rs. 35,00,000. An interim bonus of Rs. 1,00,000 was paid to the policy
holders during the previous two years. You are required to show (a) Valuation Balance Sheet (b)Net
Profit for the period and (c) The distribution of the surplus.
- The following is an extract from Trial balance of a Bank as on 31.3.2005.
| Debit
Rs. |
Credit
Rs. |
|
| Bill discounted
Rebate on Bill discounted 1.04.04 Discounted Received |
50,00,000 |
20,057 1,50,000 |
| Date | Bill amount (Rs.) | Period of Bill | Rate of Discount p.a |
| 02.01.05
15.02.05 03.03.05
|
1,00,000
40,000 30,000
|
90 days
60 days 30 days
|
7%
12% 11% |
Calculate the amount of unexpired discount and pass the necessary adjusting journal
entries from the above information.
- From the following particulars prepare the Fire Revenue Account for 1998.
Claims paid Rs. 2,35,000
Legal expenses regarding claims 5,000
Premium received 6,00,000
Re insurance premium 60,000
Commission 1,00,000
Expenses of management 1,50,000
Provision against unexpired risk on 1.1.98 2,60,000
Claims unpaid on 1.1.98 20,000
Claims unpaid on 31.12.98 35,000
- On 31st March 2006, the Balance Sheet of Y Ltd. Stood as follows:
Liabilities Assets
Share capital 60,000 equity shares Machinery Rs. 5,50,000
of Rs. 10 each fully paid Rs. 6,00,000 Furniture 1,35,200
Capital Reserve 13,000 Stock 3,15,800
Foreign Project Reserve 9,700 Debtors 1,29,300
General Reserve 75,350 Cash at Bank 74,360
P & L Account 24,130
3,000 11% Debentures 3,00,000
Creditors 1,82,480
—————— —————–
12,04,660 12,04,660
On this date, Y Ltd. was absorbed by X Ltd. The scheme of absorption provided that share holders of Y Ltd. would get 110 shares of X Ltd. of Rs. 100 each for every 100 shares held in Y Ltd. and 3,000 11% debentures of Y Ltd. would be converted into equal number of 12% debentures of X Ltd. of Rs. 100 each. You are required to pass journal entries in the books of X Ltd. assuming that the absorption is in the nature of merger.
SECTION C (2 x 20 = 40)
Answer any Two only
- From the following Trial Balance of Chennai Bank Ltd., prepare the final accounts
for the year ending 31.12.2002.
Money at call Rs. 8,00,000 Share Capital Rs. 20,00,000
Cash in hand & RBI 6,50,000 Reserve Fund 6,00,000
Investments 18,50,000 Deposits 25,00,000
Loans 15,00,000 Short loans 5,00,000
Cash Credits 5,00,000 Interest & discount 8,00,000
Premises 5,80,000 Commission 1,70,000
Furniture 1,20,000 Locker rent 60,000
Interest paid 3,00,000 P/L(1.1.2002) 20,000
Salaries 2,15,000
Non Banking assets 80,000
Audit fees 30,000
Other expenses 25,000
—————- ————-
66,50,000 66,50,000
- a) Provide Rs. 20,000/- for doubtful debts and Rs. 40,000/- for taxes.
- b) Provide Rs. 10,000/- for rebate on bills discounted.
- c) Acceptances on behalf of the customers accounted to Rs. 4,00,000/-
- d) Depreciate furniture 10% p.a.
- e) Directors propose 5% dividend.
- Following are the Balance sheets of A Ltd. and B Ltd. as on 31.03.2002.
A Ltd.
| Particulars | Rs. | Particulars | Rs. |
| Share Capital
40,000 Equity shares of Rs. 100 each General Reserve Current Liabilities |
40,00,000 30,00,000 30,00,000 1,00,00,000 |
Fixed Assets
Investments Current assets |
30,00,000
5,00,000 65,00,000
__________ 1,00,00,000
|
B Ltd.
| Particulars | Rs. | Particulars | Rs. |
| Share Capital
20,000Equity shares of Rs. 50 each General Reserve Current Liabilities Provision for tax Proposed dividend
|
10,00,000 5,00,000 1,00,000 1,00,000 1,00,000 18,00,000 |
Goodwill
Fixed assets Current assets |
50,000
3,50,000 14,00,000
__________ 18,00,000 |
B Ltd. is to be absorbed by A Ltd. on the following terms:
(i) B Ltd. declares a dividend of 10% before absorption for the payment of
Which it is to retain sufficient amount of cash.
(ii) The net worth of B Ltd. is valued at Rs. 14,50,000
(iii) The purchase consideration is satisfied by the issue of fully paid-up shares
Of Rs. 100 each in A Ltd.
Following further information is also to be taken into consideration:
- A Ltd. holds 5,000 shares of B Ltd. at a cost of Rs. 3,00,000
- The stocks of B Ltd. include items valued at Rs. 1,00,000 purchased from A Ltd. (cost to A Ltd.Rs. 75,000)
- The creditors of B Ltd. include Rs. 50,000 due to A Ltd.
Show ledger accounts in the books of B Ltd. to give effect to the above and Balance
Sheet of A Ltd. after completion of the absorption.
- Big Ltd. purchased control of Small Ltd. on 1.7.2004. Following are the Balance
Sheets of the two companies at 31.12.2004
| Liabilities | Big. Ltd. | Small
Ltd. |
Assets | Big. Ltd. | Small
Ltd. |
| Equity share capital of Rs. 10 each
General Reserve P & L A/c Creditors Bills payable to Big Ltd. Contingent liability of Big Ltd. for Rs. 9,000 for bills discounted |
3,60,000 36,000 60,000 60,000 __
_______ 5,16,000 |
1,80,000 30,000 60,000 42,000
6,000
________ 3,18,000 |
Goodwill
Building Machinery Stock in trade Debtors Investment in 13,500 shares of Small Ltd. Cash at bank
|
6,000
60,000 1,20,000 70,500 30,000
2,02,500 27,000
________ 5,16,000 |
24,000
60,000 1,08,000 60,000 54,000
12,000
________ 3,18,000 |
Small Ltd. had on 1.1.2004 Rs. 30,000 in General Reserve and Rs. 36,000(Cr.) in Profit and Loss Account. 10% dividend was received by Big. Ltd. in July from Small Ltd. for 2003 and this amount was credited to Profit and Loss Account of holding company. Machinery standing in the books of Small Ltd. at Rs. 1,20,000 on the date of purchase was revalued at Rs. 1,44,000. Stock of Small Ltd. includes Rs. 9,600 received from Big Ltd. on which it made a profit of 25% on cost.
Prepare the Consolidated Balance Sheet.
Loyola College B.Com April 2009 Adv. Corporate Accounts Question Paper PDF Download
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
|
B.Com. DEGREE EXAMINATION – COMMERCE
SIXTH SEMESTER – April 2009
CO 6606 – ADV. CORPORATE ACCOUNTS
Date & Time: 23/04/2009 / 9:00 – 12:00 Dept. No. Max. : 100 Marks
SECTION A (10 x 2 = 20)
Answer any TEN questions.
- Mention any two features of double account system.
- Explain Non Performing assets.
- What do you mean by Money at call and short notice?
- Explain the term Bonus in Reduction of Premium.
- What do you understand by Valuation Balance Sheet?
- On 1st October 2007, Robin Bank discounted a five month bill of Rs.20,000 at 12% p.a. Give the journal entry for rebate on bills discounted(accounts are closed on 31st December).
- Under which schedule of the Bank will the following items appear in the final statement?
- a) Unclaimed dividend; b) Interest paid on current accounts; c) Gold ; d)Non-banking assets
- While closing the books of a bank on 31st December 2003, you find in the loan ledger as unsecured
balance of Rs. 2 lakhs in the account of a merchant whose financial condition is reported to you as
bad. Interest on the same account amounted to Rs. 20,000 during the year. During the year 2004,
the bank accepted 75 paise in the rupee on account of the debt upto 31st December 2003. Find out
the amount of bad debts.
- The life fund of a Life Insurance Co. on 31st March 2006 showed a balance of Rs.54,00,000. However the following items had been omitted from the accounts:
(a) Outstanding premiums-Rs.32,800
(b) Claims intimated but not admitted-Rs.17,400
(c) Claims covered under reinsurance-Rs.6500
What is the revised life insurance fund?
- While closing the books of account, a commercial bank has its advances classified as
follows:
Classification of assets Rs. in lakhs Doubtful assets: Rs. in lakhs
Standard assets 8,000 Upto one year 700
Sub-standard assets 650 One to three years 400
Loss assets 500 More than three years 200
You are required to calculate the amount of provisions to be made by the bank.
SECTION B (5 x 8 = 40)
Answer any 5 questions:
- Distinguish between Merger method and Purchase method of accounting foe Amalgamation.
- Write Short notes on:
(i) Rebate on bills discounted
(ii) Minority interest
(iii) Reinsurance
(iv) Annuity
- The following are the balance sheets of Y Ltd. and X Ltd. as on 31-3-2002
| Liabilities | Y Ltd | X Ltd | Assets | Y Ltd | X Ltd |
| Share Capital:
Shares of Rs. 10 each P & L A/c Loan from Y Ltd Creditors
|
2,00,000 30,000
—- 20,000 |
3,00,000 50,000
40,000 10,000 |
Buildings
Loan to X Ltd. Investments in 5,000 shares of X Ltd. Stock Debtors Cash at Bank |
75,000
40,000
50,000 55,000 20,000 10,000 |
2,80,000
—-
—- 70,000 35,000 15,000 |
| 2,50,000 | 4,00,000 | 2,50,000 | 4,00,000 |
X Ltd absorbs the business of Y Ltd. on the condition that is has to issue the equal
number of shares of Rs. 10 each at Rs. 11 per share held by the members of Y Ltd.
Give the ledger accounts in the books of Y Ltd. and journal
entries in the of X Ltd; and also prepare the balance sheet of X Ltd. after absorption
(apply purchase method)
- The XYZ Electricity Company decided to replace some parts of its Plant by an improved Plant.
The Plant to be replaced was built in 2003 for Rs. 54,00,000. It is estimated that it would now
cost Rs. 80,00,000 to build a new Plant of the same size and capacity. The cost of the new Plant
as per the improved design was Rs. 1,70,00,000 and in addition, material belonging to the old
Plant valued at Rs. 5,50,000 was used in the construction of the new Plant. The balance of the old
Plant was sold for Rs. 3,00,000. Compute the amount to be capitalized. Also pass the journal
entries and Replacement Account.
- The following were the balance sheets of Large Ltd. and Little Ltd. as on 31.12.2007
| Liabilities | Large Ltd | Little Ltd. | Assets | Large Ltd. | Little Ltd. |
| Share Capital:
Share Capital of Rs. 10 each General Reserve P & L A/c Creditors
|
1,00,000 40,000 30,000 20,000
________ 1,90,000 |
20,000 3,000 — 7,000
_______ 30,000 |
Buildings
Shares in Little Ltd. at cost
Stock Debtors Bank P & L A/c |
90,000
28,000
25,000 35,000 12,000 —- ________ 1,90,000 |
10,000
—
8,000 7,000 2,000 3,000
________ 30,000 |
When the Large Ltd. acquired 80% of the shares in Little Ltd. the latter had a credit balance of Profit & Loss A/c Rs. 2,000 and General Reserve Rs. 3,000. Prepare the consolidated balance sheet
- H Electricity Co. earned a Profit of Rs. 8,49,250 after paying Rs. 30,000 @ 6% as debentures
interest for the year ended 31-1-2004. The following further information is supplied for you:
Fixed Assets Rs. 1,80,00,000
Depreciation written off 50,00,000
Loan from Electricity Board 40,00,000
Reserve Fund investments at Par(4%) 10,00,000
Contingencies Reserve investment, at par(4%) 7,50,000
Tariffs and Dividends control reserve 1,00,000
Security deposits of customers 1,50,000
Customers’ contribution to assets 50,000
Preliminary expenses 40,000
Monthly average of current assets, including
Amount due from customers Rs. 2,50,000 7,60,000
Development Reserve 2,50,000
Assume RBI bank rate at 6% p.a.
Show the disposal of the profits.
- Jaldi Pay Insurance Co. Ltd. has furnished the following information for preparation of
revenue account for fire insurance business for the year ended 31.12.2007
| Rs. | Rs. | ||
| Claims admitted but not paid
Commission paid Commission on reinsurance received Share transfer fees Expenses of management Reserve for unexpired risk as on 1.1.07 Additional reserve on 1.1.07 |
42,376
50,000
12,000 5,000 78,000
2,30,000 40,000 |
Bad debts
Claims paid P&L A/c Premium received less insurance Claims outstanding as on 1.1.7 Dividend on share capital |
2,500
15,000 10,000
5,52,000
27,000
18,500 |
The following further information has also to be considered:
(i) Premium outstanding at the end of the year Rs. 40,000
(ii) Additional reserve at 10% of net premium to be maintained.
(iii) It is the policy of the company to maintain 50% of premium towards
Reserves for unexpired risks.
- A Life Insurance Company gets its valuation made once in every two years. Its Life Assurance
fund on 31.3.98 amounted to Rs. 63,84,000 before providing Rs. 64,000 for the shareholders’
dividend for the year 1997-98. It actuarial valuation due on 31.3.1998 disclosed a net liability
of R.s 60,80,000 under assurance annuity contracts. An interim bonus of Rs. 80,000 was paid
to the policy holders during the two years ending 31.3.1998.
Prepare a statement showing the amount now available as bonus to policy holders.
SECTION C (2 x 20 = 40)
Answer ANY 2 questions:
- Alpha Co. Ltd and Beta Co. Ltd decided to amalgamate their business and form a new company called Gamma Co. Ltd which will take over all the assets and liabilities of both the companies on the basis of the following balance sheets:
| Liabilities | Alpha Ltd. | Beta Ltd. | Asstes | Alpha Ltd. | Beta Ltd. |
| Share Capital:
Shares of Rs. 100 each General Reserve Profit and loss Account Creditors |
1.00,000 30,000 20,000 50,000 |
2,00,000 20,000 10,000 40,000 |
Goodwill
Machinery Patents Stock Debtors Cash |
30,000
90,000 25,000 35,000 15,000 5,000 |
20,000
1,00,000 — 80,000 60,000 10,000 |
| 2,00,000 | 2,70,000 | 2,00,000 | 2,70,000 |
(i) The purchase consideration of Alpha Ltd. is agreed at Rs.1,60,000 payable in fully
paid shares of Rs.10 each.
(ii)The purchase consideration of Beta Ltd. is agreed for an exchange of Rs.10 each fully paid in Gamma Co. Ltd for every share in Beta Co. Ltd. Prepare the Amalgamated Balance Sheet(Note: Amalgamation is in the nature of ‘Merger’)
- The following are the ledger balances extracted from the books of the Karnataka
Bank Ltd. as 31.3.2002
| Capital
40,000 shares of Rs. 10 each fully paid Statutory Reserve Profit & Loss Account(balance on 31.3.2001) Current Deposits Savings Bank Deposits Fixed Deposits Borrowing(from other banks) Employees’ Security Deposits Cash in Hand Balances with Reserve Bank of India Balances with Banks Money at Call & Short Notice Investments in Government Securities Investments in Approved Securities Investments in Shares Bills Purchased & Discounted Cash Credits, Overdrafts, etc. Buildings(cost Rs. 1,00,000) Furniture & Fixtures(cost Rs. 50,000) Inter-office Adjustments Interest Accrued on Investments Interest & Discount Income on Investments Commission, Exchange & Brokerage Profit on Sale of Investments Loss on Sale of Investments Miscellaneous Income(rent received) Interest on Deposits Interest on Borrowings Payments to & Provisions for Employees Rent, Taxes & Lighting Director’s Fees Auditors’ Fees Postage & Telegrams |
1,40,000 1,00,000 1,80,000 40,000 1,90,000 12,000 28,000 80,000 3,10,000 76,000 34,000 50,000 10,000
2,000
37,000 8,000 60,000 4,000 2,000 3,000 1,000 |
4,00,000 70,000 30,000 2,30,000 50,000 1,60,000 1,50,000 45,000
2,00,000 10,000 14,000 7,000
1,000 |
| 13,67,000 | 13,67,000 |
Other Information:
- Provide for rebate on bills discounted Rs. 5,000
- Write off depreciation on: Buildings Rs. 6,000 and Furniture & Fixtures Rs. 4,000
- Current deposits include Rs. 10,000 being debit balances representing overdrafts
- Bills for collection amounted to Rs. 70,000 and acceptances, endorsements, etc. Rs. 50,000
Prepare the Final Statements as on 31.3.2002.( Detailed schedules need not be prepared)
- The following were the balance sheets of H Ltd. and S Ltd as on 31-12-2005 from which prepare consolidated balance sheet:
| Liabilities | H Ltd | S Ltd. | Assets | H Ltd. | S Ltd. |
| Share Capital of
Rs. 10 each General Reserve P & L A/c Creditors Bills Payable
|
5,00,000 60,000 30,000 20,000 10,000
6,20,000 |
2,50,000 50,000 40,000 15,000 25,000
3,80,000 |
Fixed Assets
Shares in S Ltd. 20000shares of Rs.10eachat cost
Govt. Securities Stock Debtors Bills Receivable Bank |
2,00,000
2,50,000 — 70,000 40,000 15,000 45,000 — 6,20,000 |
1,50,000
—
80,000 75,000 35,000 15,000 25,000 3,80,000 |
(1) When the H Ltd. acquired the shares in S Ltd on 1-5-05 the latter had Rs. 50,000 and Rs10,000 to the credit of General Reserve and Profit and Loss Account respectively.
(2) Bills payable of S Ltd. include Rs. 5,000 accepted in favour of H Ltd.
(3) The debtors of H Ltd. include Rs. 2,500 due from S Ltd.
(4) The stock of S Ltd. included Rs. 12,000 supplied by H Ltd. at cost plus 20%.
Loyola College B.Com April 2011 Adv. Corporate Accounts Question Paper PDF Download
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.Com. DEGREE EXAMINATION – COMMERCE
SIXTH SEMESTER – APRIL 2011
CO 6606 – ADV. CORPORATE ACCOUNTS
Date : 09-04-2011 Dept. No. Max. : 100 Marks
Time : 9:00 – 12:00
PART – A
ANSWER ALL THE QUESTIONS: (10 X 2=20)
- Explain the meaning of double insurance.
- Explain what is non- performing assets?
- Write a short note on minority interest.
- Write a note on purchase consideration.
- What is meant by double account system?
- A life assurance co. prepared its revenue account for the year ended 31.12.2007 and ascertained its life assurance fund to be 28,35,000. It was found later that the following has been omitted from the accounts.
- Interest accrued on investments Rs.39000; income tax liable to be deducted thereon is estimated to be Rs.10500.
- Outstanding premiums Rs.32800.
- Bonus utilized for reducation of premium Rs. 6750
- Claims intimated but not admitted Rs. 17400.
- Claims covered under reinsurance Rs. 6500.
What is the true life assurance fund?
- On 31st march 2008 bharat commercial bank ltd. Finds its advances classified as follows:
Rs.
Standard assets 1491300
Substandard assets 92800
Doubtful assets(secured):
Doubtful for one year 25660
Doubtful for one year to three years 15640
Doubtful for more than three years 6580
Loss assets 10350
Calculate the amount of provisions to be made by the bank against the above mentioned advances.
- Raman ltd. Agrees to purchase the business of Krishnan ltd. On the following terms.
- For each of the 10000 shares of Rs.10 each in Krishnan ltd, two shares of raman ltd. Of Rs.10 each will be issued at an agreed value of Rs.12 per share. In addition Rs.4 per share in cash also will be paid.
- 8% debentures worth 80000 will be issued to settle the Rs.60000 9% debentures in Krishnan ltd.
- 10000 will be paid towards expense of winding up.
Calculate the purchase consideration.
- The trial balance of the ABC bank ltd. As on 30.6.2004 shows the following balances.
Interest and discount 45,40,600
Rebate on bill discounted (1.7.2003) 4750
Bills discounted and purchased 3,37,400
The unexpired discount as on 30.06.2004 is estimated to be 5560. Draft necessary adjusting entries and calculate the amount of interest and discount to be credited to profit and loss account.
- Explain cost of control.
PART – B
ANSWER ANY FIVE QUESTIONS: (5 X 8=40)
- Distinguish between amalgamation, absorption and external reconstruction with suitable examples.
- Explain the various schedules to be prepared by a commercial bank.
- What are the advantages and disadvantages of double account system?
- From the following particulars prepare a profit and loss account of new bank ltd. For the year ended 31.12.2006.
Particulars Rs.(000’s) Particulars Rs.(000’s)
Interest of loans 260 interest on cash credits 225
Interest on fixed Deposits 280 Rent and taxes 20
Debit on bills discounted 50 interest on over drafts 56
Commission charged to customers 9 directors and auditors fees 4
Establishment expenses 56 interest on savings account 70
Discount on bill discounted 200 postage and telegram 2
Interest on current account 45 sundry charges 2
Printing and advertisement 3
- The balance sheets of C ltd and D ltd as at 31.12.2006 were as follows:
| LIABILITIES | C LTD.(Rs) | D LTD.(Rs) | ASSETS | C LTD.(Rs) | D LTD.(Rs) |
| Sh. Capital (in shares of Rs.10 each) | 200000 | 100000 | Sundry assets | 132500 | 138200 |
| General reserve | 18000 | 20000 | Good will | ——— | 20000 |
| Profit and loss a/c | 24500 | 23000 | Shares in D ltd at cost | 140000 | ——- |
| creditors | 30000 | 15200 | |||
| 272500 | 158200 | 272500 | 158200 |
In the case of D ltd. Profit for the year ended 31.12.2006 is Rs 12000 and transfer to reserve is Rs. 5000. The holding of C ltd. In D ltd. Is 90% acquired on 30th June 2006. Draft a consolidated balance sheet of C ltd and its subsidiary.
- From the following balance sheet of Sam ltd. As on 31.3.2004
| LIABILITIES | Rs | ASSETS | Rs. |
| Sh. Capital:
8% pref sh. Of Rs100 each. |
375000 | Fixed assets | 1625000 |
| Equity shares of Rs.10 each | 750000 | Investments | 300000 |
| General reserve | 450000 | Current assets | 250000 |
| 7% debentures | 350000 | ||
| Current liabilities | 250000 | ||
| 2175000 | 2175000 |
- ltd agreed to take over the business of Sam ltd.
Calculate the purchase consideration under net assets method on the basis of the following:
- R ltd agreed to discharge 7% debentures at a premium of 10% by issuing 9% debentures of R ltd.
- Fixed assets are to be valued at 10% above book value, the investments at par, current assets at 10% discount and current liabilities at book value.
- From the following particulars relating to Z insurance co. ltd. Prepare fire revenue account for the year ending 31.12.2004.
Rs. Rs.
Claims paid 480000 premium received 1200000
Claims outstanding on 1.1.04 40000 reinsurance prem.pd. 120000
Claims intimated but not accepted
And paid on 31.12.2004 10000 commission 200000
Claims intimated and accepted
but not paid on 31.12.2004 60000 commission on
reinsurance ceded 10000
commission on reinsurance accepted 5000 provision for
unexpired risk on
1.1.04 400000
Expenses of management 305000
Bonus in reduction of premium 12000 additional provision
For unexpired risk on
1.1.04 20000
You are required to provide for additional reserve for unexpired risk at 1% of net premium in addition to the opening balance.
- A life insurance co. gets its valuation made once in every two years. Its life assurance fund on 31.3.08 amounted to 63,84,000 before providing Rs.64000 for the shareholders dividend for the year 2007 – 2008. Its actuarial valuation due on 31.3.08 disclosed a net liability of Rs.6080000 under assurance annuity contracts. An interim bonus of Rs 80000 was paid to the policy holders during the two years ending 31.03.08. prepare a statement showing the amount now available as bonus to policy holders.
PART – C
ANSWER ANY TWO QUESTIONS: (20 X 2=40)
- From the following balances of united general insurance company ltd. As on 31.12.08 prepare a) fire revenue account; b) marine revenue account and c) profit and loss account.
| Provision for unexpired risk
On 1.1.08 – fire Marine |
500000 1640000 |
Interest, dividend received | 28000 |
| Additional reserve on 1.1.08
Fire |
100000 |
Difference in exchange(cr) | 600 |
| Bad debts – fire
marine |
10000
24000 |
Miscellaneous receipts | 10000 |
| Auditors fees | 2400 | Profit on sale of land | 120000 |
| Directors fees | 10000 | Premium received – fire
Marine |
1200000
2160000 |
| Share transfer fees | 1600 | Expenses of management – fire
Marine |
290000
800000 |
| Bad debts recovered | 2400 | Commission earned on reinsurance
Ceded – fire Marine |
60000 120000 |
| Claims paid and outstanding
Fire Marine |
380000 760000 |
||
| Commission paid – fire
Marine |
180000
216000 |
||
| depreciation | 70000 | ||
Provision for unexpired risk is to be kept at 50% of the premiums received for fire and at 100% for marine departments. The additional reserve in case of fire insurance is to be increased by 5% of the net premiums.
- The following balance sheets are presented to you:
Balance sheet as on 31.12.2009
| LIABILITIES | A.Ltd.
Rs. |
B.Ltd.
Rs. |
ASSETS | A.Ltd.
Rs. |
B.Ltd.
Rs. |
| Sh. Capital:
Shares of Rs.50 each |
250000 | 100000 | Fixed Assets | 175000 | 75000 |
| General reserve | 50000 | ——– | Stock in trade | 45000 | 20000 |
| Profit and loss account | 40000 | ——– | Debtors | 30000 | 15000 |
| 6% debentures | ——- | 50000 | 6% debentures in B ltd
Acquired at par |
30000 | ——- |
| Trade creditors | 37500 | 22500 | Shares in B ltd 1500 @ Rs 40 | 60000 | ——- |
| Cash at Bank | 37500 | 12500 | |||
| Profit and Loss account | ——– | 50000 | |||
| 377500 | 172500 | 377500 | 172500 |
A ltd. acquired the shares on 1.4.09. The profit and loss account of B ltd showed a debit balance of Rs.75000 on 1.1.09. Trade creditors of B ltd include Rs.10000 for goods supplied by A ltd on which A ltd made a profit of Rs 1000. Half of the goods were still in stock on 31.12.09. Prepare the consolidated balance sheet.
- From the following particulars of XYZ bank ltd having its own premises, prepare the balance sheet in the prescribed form as on 31.12.2010.
| particulars | Rs.in 000’s | particulars | Rs.in 000’s |
| Authorized capital | 4000 | Letters of credit issued | 500 |
| Subscribed capital 4 lakh shares of Rs.10 each Rs.5 paid | 2000 | Telegraphic transfers payable | 800 |
| investments | 7000 | Bank drafts payable | 1200 |
| Bills discounted (in India) | 15000 | Short loans | 40 |
| Profit and loss(cr) | 850 | Rebate on bills discounted | 10 |
| Endorsement on bills for collection | 100 | Acceptances for customers | 5000 |
| Liability of customers for acceptances | 5000 | Loans and advances | 10000 |
| Money at call on short notice | 9000 | Cash credits | 10000 |
| Cash in hand | 2000 | overdrafts | 1000 |
| Cash with RBI | 4000 | Bills purchased(payable ouside india) | 1000 |
| Reserve | 3000 | Current and deposit accounts | 56000 |
| Cash with SBI | 4000 | Investment fluctuation fund | 100 |
| Bills for collection | 100 |