----~ =============-----~-.5c...No. of Printed Pages: It-

SARDARPATEL UNIVERSITY

B.B.A. (GENERAL) SEMESTER: II EXAMINATION201S

Saturday,11thApril02:30p.mTo 04:30p.m

UM02CBBA04: CORPORATE ACCOUNTING - I

Note: 1.Figuretotherightindicatefull marksof question.2.All questionscarryequalmarks.

3.Workingnotesarethepartof answer.

TotalMarks:60

Q-l (A) ShriGaneshLimitedissuedaprospectusinvitingapplicationsfor 30,000equity [12]

sharesofRs 10eachatapremiumofRs 2persharepayableasunder:

OnApplication Rs 3

OnAllotment Rs 4 (includingpremium)

On FirstCall Rs 3

On SecondCall Rs 2

Applicationswerereceivedfor 40,000sharesandallotmentmadepro- ratato

theapplicationsof 36,000sharesandtheremainingapplicationswererefused

and the amountwas refunded.Money over paid on applicationswas to be

transferredtoallotmentaccount.

Shankar,towhom1000shareswereallotted,failedtopaytheallotmentmoney.

Passnecessaryjournal entriesin thebooksof thecompanyandalsopreparebankaccount.

(B) Differencebetweencallsin arrearsandcallsin advance.(Onlythreepoints) [03]

OR

Q-l (A) RAM limitedissued50,000equitysharesofRs 10eachatadiscountofRs 0.50 [10]persharepayableasfollows:

Rs.2.00pershareonapplication

Rs.2.50pershareonallotment

Rs. 1.50pershareonfirstcall

Rs. 3.50pershareonlastcall

Companyreceived49,000sharesapplications.

Passnecessaryjournalentriesandpreparebankaccount.

(B) Writeanoteonoversubscriptionandundersubscriptionwithexamples. [05]

Q-2 (A) Followingbalanceappearsin thebooksof Jimit limitedason01/04/2014. [15]10% SecuredDebentures Rs.2,00,000

DebenturesRedemptionFundRs. 1,50,000

Deb.Red.FundInvestments(10% Govt.securities)

Rs. 1,50,000

The companytransferRs. 50~000towardsdebentureRedemptionFund.After

receivingthe interestof Rs. 15~000on 31/03/15companysold debenture

redemptionfundinvestmentsatRs. 105andthedebentureswereredeemedwith

2.5% premium.

Passnecessaryjournal entriesto recordabovetransactionsandPrepare10%

DebentureAlc DebentureHolderAlc~premiumon redemptionof debenture

Alc~DebentureRedemptionFundinvestmentsAlc andDebentureRedemption

FundAlc.

OR

Q-2 (A) Definethetermdebenture.Explainthetypesof debentures [07]

(B) SureshCompanylimitedissued1000~12% DebenturesofRs. 100eachat3% [08]

discountonJanuary1~2009.It undertakestorepaythedebenturesatparas

below.

31-12-2010 400Debentures

31-12-2011

300Debentures

31-12-2012

200Debentures

31-12-2013

100Debentures

Give journal entry for issueof debentureand prepareDebentureDiscount

Accountin thebooksof thecompany.

Q-3 TheBalanceSheetof GauriLimitedason31/03/15is asunder: [15]

Capital&Liabilities Amt(Rs.)Assets Amt(Rs.)

1~00~000equityshares

10,00,000Fixedassets 12~50~000

ofRs 10eachfully paid 8~00012%preference

6~40~000Stock 3,72~000

sharesofRs 100each~ Rs 80paidupProfit& lossalc

35,000Debtors 3~55,000

GeneralReserveAlc

5,65,000CashandBank 5,63,000

SecurityPremium

50~000

Creditors

2,50,000

25,40,000

25,40,000

The companydecidedto redeempreferencesharesat 5% premium.For this

purposenecessarynumberof equitysharesof Rs. 10 eachissuedat 20%

premium.The companythendecidedto utilize the resultantreservecreated

fromtheredemptionof preferencesharesfor issuingfullypaidupbonusshares

to itsequityshareholders.Passnecessaryjournalentriesandpreparerevisedbalancesheet.

OR

Q-3 (A) Discusstheprovisionsof section80of Company'sAct 1956in detail.Also list [07]

outthesourcesof bonusshares.

(B) SunnyCo. Ltd. declaredbonusoutof its GeneralReserveto convertitspartly [08]

paidshares,intofullypaidshares.

After wardsthreefully paidEquityshareswereusedto distributeasbonusin

exchangefor fivesharesfromSharePremiumandCapitalReserve.

Thebalancessheetason31-3-2015areasunder:

Capital&Liabilities Amt(Rs.)Assets Amt(Rs.)

8,000equitysharesof

6,00,000Fixedassets 10,00,000

Rs 100each,Rs.75paid uppershareGeneralReserveAlc

2,50,000Debtors 2,00,000

CapitalReserveAlc

3,30,000CashandBank 1,80,000

SecurityPremium

1,50,000

Creditors

50,000

13,80,000

13,80,000

Writejournalentriesin thebooksof companytorecordabovetransactionand

preparerevisedbalancesheet.

Q-4 (A) Preparespecimenof Horizontalbalancesheetas perthecompaniesAct 1956 [11]

withimaginaryfigures.

(B) List outfourexamplesof contingentliabilities. [04]

OR

Q-4 Thetrialbalanceof SanjayLtd.ason31-3-15wasasunder:

Particulars DebitCredit

(Rs.)

(Rs.)

Equitysharecapital

-12,00,000

12%preferencesharecapital

-3,00,000

10%RedeemableDebenture

-3,00,000

Openingstock

1,40,000-

Purchaseandsales18,60,00032,00,000

Goodsreturned

80,00060,000

Landandbuilding

8,00,000-

Plantandmachinery

6,00,000-

Debtorsandcreditors4,00,0002,00,000

[15]

Octroi 1,80,000-

Sellinganddistributionexpenses

40,000-

Carriageoutward

16,000-

Wages

6,80,000-

Administrativeexpenses

1,70,000-

Vehicle1,20,000-

Telephonedeposit

20,000-

Director's fees20,000-

Loanof director

-40,000

Interestondebenture

12,000-

Intereston investment

-16,000

Staffpensionfund

-16,000

Investments

3,00,000-

Discountondebenture80,000-

Loosetools12,000-

Bills

40,00020,000

Fixeddeposit

-48,000

Generalreserve

-1,40,000

Shareforfeitureaccount

-20,000

Cashandbank

50,000-

Profitandlossaccount(01-04-2014)

-60,000

Total

56,20,00056,20,000

Additionalinformation:

1. Authorizedcapitalof thecompanyis asunder:1,50,000equityshareof

Rs. 10eachand12%30,000preferenceshareofRs. 10each.

2. Closingstockis valuedofRs. 2,80,000.

3. Depreciatelandandbuildingby5%, plantandmachineryby 10% and

vehiclesby 20%.

4. ProvideBadDebtsreserveondebtorsby 5%.

5. TransferRs.40,000togeneralreserve.

6. TheDirectorshaveproposed10% dividendonequitysharecapital.

Preparefinal accounts(TradingAlc, Profit and Loss Alc, Profit and Loss

AppropriationAlc andBalancesheet)of thecompanyasper CompaniesAct,

1956in horizontalform.

;4.[[tlie rBest