Bidhan Chandra College, Asansol
Total Pages: 02 KNU/2022/BCOMHC201
UG 2nd Semester Examination- 2022
Award: B.Com. (Honours)
Discipline: Commerce
Course Type : CC
Course Code : BCOMHC201
Course Name: Corporate Accounting
Full Marks: 40 Time: 2 Hours
The figures in the right-hand margin indicate full marks. Candidates are required to give the answers
in their own words as far as practicable. Illustrate the answers wherever necessary.
1. Answer any five questions: 5x1=5
(a) What is bonus share?
(b) What is right share?
(c) What is underwriting commission?
(d) What is debenture?
(e) What is securities premium?
(f) Under which schedule of Companies Act, 2013 financial statements are prepared?
(g) What is minority interest?
(h) What is subsidiary company?
2. Answer any five questions : 5x2=10
(a) What is capital redemption reserve?
(b) State two differences between equity share and preference share?
(c) What is employee stock option plan?
(d) State two advantages of issuing right shares.
(e) State two situations when company issues bonus shares.
(f) State two sources of reserve from which preference shares can be redeemed?
(g) State two sources of reserve which can be utilized for issuing bonus shares?
(h) What is forfeiture of shares?
3. Answer any three questions : 3x5=15
(a) A limited company having paid-up capital of Rs.4,00,000 divided into 40,000
shares of Rs.10 each fully paid, declares a bonus of Rs.4,80,000 to the
shareholders out of general reserve. The bonus is to be satisfied by issue of shares
of Rs.10 each at a premium of Rs.2 per share. Show Journal Entries.
Bidhan Chandra College, Asansol
(b) Write a note on marked and unmarked applications.
(c) ABC Ltd. invited applications for 10,000 equity shares of Rs.100 each at a
premium of 20% payable as on application 7.50 per share, on allotment
(including premium) 7.50 per share and the balance on first and final call.
Applications were received on 15,000 shares and application money for 5,000
shares was refunded. Allotment was made in full on all other applications.
All money due was received except the first and final call on 500 shares which
were forfeited. Out of these forfeited shares, 400 shares were reissued at Rs.100
each as fully paid up.
Pass necessary Journal entries in the books of ABC Ltd.
(d) The following is the abstracts of Balance Sheet of Amartya Ltd. as on 31.3.2020:
Issued and Paid-up Capital Amount (Rs.)
20,000 Equity Shares of Rs.10 each fully paid-up 2,00,000
Reserves and Surplus:
Securities Premium 30,000
General Reserve 1,00,000
Profit and Loss Account 80,000
At the annual general meeting of the company, the following resolutions were
passed:
(i) to issue 2 bonus shares for every five shares held as on date; and
(ii) to give existing shareholders the option to purchase three Rs.10 Rights
shares at Rs.14 per share for every five shares held before the issue of
bonus shares.
All the shareholders took up the option of Rights shares and Bonus shares were
duly allotted. Show appropriate journal entries to record the above transactions in
the books of Amartya Ltd.
(e) State the conditions required for redemption of debenture regarding Debenture
redemption reserve and debenture redemption investment for listed and unlisted
companies as per Companies Act, 2013.
Bidhan Chandra College, Asansol
4. Answer any one questions : 1x10=10
(a) Following is the Trial Balance of the business of Sun Ltd as on 31.03.2020:
Particulars Amount Particulars Amount
(Rs.) (Rs.)
In Lakhs In Lakhs
Machinery 50,000 Share Capital (Rs.10 each) 40,000
Debtors 31,000 Creditors 18,000
Stock (01.04.2019) 10,000 Sales 2,04,000
Purchases 98,000 Bills Payable 33,000
Salaries 23,000 Interest Received 4,000
Bills Receivable 14,000 General Reserve 15,000
Rent 18,000 Surplus Balance on 5,000
Furniture 13,000 01.04.2019
Long-term Investments 25,000 10% Debentures 15,000
Administration Expenses 14,000 Bank Overdraft 2,000
Cash 12,000 Provision for Depreciation 10,000
Bank 28,000
Debenture Interest Paid 600
Land 8,000
Loss on Sale of Fixed 1,400
Assets 3,46,000 3,46,000
You are required to prepare the Statement of Profit and Loss for the year ended
31.03.2020 and the Balance Sheet as on that date after considering the following:
(i) Unsold stock on 31.03.2020 is valued at Rs.19,000.
(ii) Depreciation is to be charged @ 10% on original cost on all fixed assets.
(iii) Rate of income tax applicable is 30%.
(iv) 5% of profit is to be transferred to Reserve.
(v) Rent outstanding Rs.1,000.
(b) Distinguish between equity shares and debentures? State the advantages and
disadvantages of issuing debentures.
(c) The Balance Sheet of X Ltd. and Y Ltd. as on 31.03.2022 were as follows
Note X Ltd Y Ltd
Particulars No. ₹ ₹
(1) (2) (3) (4)
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds:
(a) Share Capital — Equity Shares of ₹ 100 each 6,00,000 2,50,000
(b) Reserves and Surplus General Reserve 1,00,000 60,000
Bidhan Chandra College, Asansol
Profit and Loss Account 1,50,000 90,000
(2) Share Application Money Pending Allotment: — —
(3) Non-current Liabilities: —
(4) Current Liabilities:
(a) Trade Payables — Creditors 70,000 60,000
(b) Other Current Liabilities — Income tax 60.000 70,000
TOTAL 9,80,000 5,30,000
II ASSETS
(1) Non-current Assets:
(a) Fixed Assets
(i) Tangible Assets:
Machinery 1,50,000 1,08.000
Vehicle 1,30,000 50,000
Furniture 50,000 30,000
(ii) Intangible Assets — Goodwill 60,000 40,000
(b) Non-current Investments — 2,000 Equity Shares in Y 3.80,000 —
Ltd. (at cost)
(2) Current Assets:
(a) Inventories — Stock 70,000 1,40,000
(b) Trade Receivables — Debtors 60,000 1,00,000
(c) Cash and Cash Equivalents — Bank 80,000 62,000
TOTAL 9,80,000 5,30,000
Additional information:
(i) X Ltd. acquired 2,000 equity shares of Y Ltd. on 01.04.2021.
(ii) The Profit and Loss Account of Y Ltd. had a credit balance of ₹30,000 and that of
General Reserve ₹50,000 on the date of acquisition.
(iii) On 1.6.2021 Y Ltd. declared a dividend out of its pre-acquisition profits @12% on
its share capital. X Ltd. credited the same to its Profit and Loss Account.
(iv) Y Ltd. owed ₹ 20,000 for purchase of stock from X Ltd. The entire stock is held on
31.03.2022. X Ltd. made profit of 25% on cost.
(v) Machinery standing in the books of Y Ltd. at ₹1,20,000 on the date of acquisition of
shares, were revalued at ₹1,44,000.
Prepare a consolidated Balance Sheet of X Ltd., and Y Ltd. on 31.03.2022.
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