TYBAF SEM5 FA-V Past Paper PDF November 2018

Paper / Subject Code: 44801 / Financial Accounting - V *i-Lr BAF I s envl t4 , I t, l? (2 %Hours) 1. (A) Rewrite sentence after selecting correct alternative (Any Eight) 1. Th...

Paper / Subject Code: 44801 / Financial Accounting - V *i-Lr BAF I s envl t4 , I t, l? (2 %Hours) 1. (A) Rewrite sentence after selecting correct alternative (Any Eight) 1. The underwriter is entitled to claim remuneration on a) The issue price of shares underwrittell.r-', ,ia-.,- b) The face value of shares actually purchased c) The face value of shares not purchased by him ,,' :"'':.r, ', A d) None of the above 2. Accounting for amalgamation is governed by_ a) Accounting Standard 1 b) Accounting Standard 13 c) Accounting Standard 14 d Accounting Standard l:l. ,,.' 3. Internal Reconstruction' ' ,,,'7:.'.' a) No company is ligpj.dated-"' :'-.., b) Only one company goes into liquidation c) Two or more companies are tiquidated d) One or more comparies go into liquidation 4. Amount of calls in advance is treated as a) Secured creditor b) Asset not specifically pledged c) Prelerential creditor d) Unsecured creditor 5. Interest:on debenture and. seqgted:loan'is payable up to the date of aclual payihent a) If the company is solvent b) If the company is insolvent c) Whether the company is solvent or insolvent d) None of the above : :6; Marked applications refer to il,, bnslbiiar"ingft,;stamp ofthe underwriters b)ffblicaiia ,car:rlring the signature of public who applied for shares q',A icatiom carrying the stamp of company which offered the shares d) None of the above 7. Buyback must be completed within from the date of passing the resolution. a) l2months b) 3months c) 6months l d) 2months TURN OVER 51269 c28C28 17 6 A2B 47 829207 BF7DD8DC5 3 C2  Paper / Subject Code: 44801 / Financial Accounting - V ) 8. The asset which is not taken under the Net assets method of calculating purchase consideration is_ b) Bills Receivables c) Machinery d) Share issue expenses 9. Capital Redemption Reserve can be utilized only for- a) Issue of fully paid bonus shares to the members b) Issue of partly paid bonus shares to the members c) Writing off losses d) None of the above l0.For capital reduction under internal reconstruction" authorization/approval is required from_ a) Shareholders b) Afticles of Association c) Tribunal d) All of the above l.B) State whether given statements are True or False (Any 7) 7 I. A company is allowed to convert fully paid shares into stock. 2.The balance in security premium account cannot be transferred to capital reduction account. 3. Buyback of security is governed by section 68 of Companies Act. 4. Cancellation of contingent liability is treated as profit to the company. 5. Equity shares can be bought back out of fresh issue of shares only. 6. Underwriting may be done by individuals, pafinership firms or joint stock cornpanies. 7. Marked applications are also known as direct applications. 8. Local tr*.r are an example of secured creditors. 9. In the case of amalgamation there are two or more liquidations and one formation. 10. If the cotnpany is insolvent, interest on debentures is payable up to the date of actual payment. 2. A Ltd. and B Ltd. were carrying on the business of manufacturing of auto components. Both the companies decided to amalgamate and a new company AB Ltd. is formed with an Authorised Capital of Rs.10, 00,000 divided into 1, 00,000 Equity shares of Rs.10 each. TheBalance Sheet of the companies as on 31-3-2018 were as under: (1s) TURN OVER s7269.:,. ,. '-'' c28C28 17 6 A2B 47 8292078F7DD8DC5 3 C2 :. ,. tt'  Paper / Subject Code: 44801 / Financial Accounting - V J Particulars :.B'Etd (Rs.)' I.EOUITY AND LIABILITIES l.Shareholders Funds a, :' a. Share Capital ' 1,40,000 2,50,000 b. Reserves and Surplus Profit and Loss A/c. 30,000 35,000 General Reserve 1,20,000 2.Non-Cu rrent Liabilities 870 Secured Debentures 1,10,000 3.Current Liabilities Trade payables 54.000 1,40,000 Total 5,45,000 111:.111 II. ASSETS l.Non-Current Assets Fixed Assets Building 1,00,000 1,90,000 Plant and Machinery 80,000 Furniture and Fixture 25,000 25,000 2.Current Assets a. Inventories 1,35,000 50,000 b. Trade Receivables 44,000 1,42,000, c. Cash at Bank 30,000 58,000 Total 3"34p00 :rYT EE s1$ and.:ti?bilitlol the existing companies are to be transferced at book value with the exception of some items detailed below: 1. Goodwill of A Ltd. was worth Rs.50,000 and B Ltd worlh Rs.1,50,000. 2. Furniture and Fixture of B Ltd was valued at Rs.35,000. TURN OVER 57269 c28C2817 6 A2847 8292078F7DD8DC5 3 C2  Paper / Subject Code: 44801 / Financial Accounting - V 3. The debentures of A Ltd. are to be discharged by issue of 8o/o 1 1000 debentures of AB Ltd. at premium of l\oh. You are required to: i) Compute Purchase consideration. ii) Pass opening entries in the books of AB Ltd and draw a Balance sheet of AB Ltd. as per Purchase Method. OR ::,-t 2.The following is the Summary Balance Sheet of Teena Ltd: 15 Liabilities Rs. ASSets Rs'- Issued and Paid-up Intangible Assets ,-.'-50,000 Equity Share Capital of Rs. 5,00,000 Fixed Assets '4o2o,ooo 10 each Current Assets '1,10,000 Statutory Reserve (to be 10,000 Profit& Loss A/c - 80,000.:, maintained for 3 more years). Debentures 1,00,000 Creditors 50,000 -,r'..'''.,':,::_ ): '.a: -:' a' ',' ,-1, :'.11:: 6.60.000. 6.60.000 Meena Ltd. agreed to absorb Teena Ltd. on the following tertns: l. Meena Ltd agreed to take over all the assets and liabilities. 2. The assets of Teena Ltd. are to be considered to be worth Rs.5,00,000. 3. The purchase price is to be paid one-quafier in cash and the balance in shares. of Rs.10. each at premium of Rs. 2 each. A T. Liquidation expenses amounted to Rs.300 agreed to be paid by Teena Ltd. :a. - 5.:: Debentures of Teena Ltd were paid. ' :.....,, t' 6; The amalgamation is in the nature of purchase. You are required to show: a) Purchase Consideration b) Ledger accounts in the books of Teena Ltd. c) Opening entries in the books of Meena Ltd. TURN OVER 57269 c28C28 17 6 A2B 47 829207 BF7DD8DC5 3 C2  Paper / Subject Code: 44801 / Financial Accounting - V :'.,;,,'),; "i;i!' 5 3. The following is the Balance Sheet of XY Ltd which is in the hands of the liquidator. (15) Balance Sheet as at 3110312018 Liabilities Rs. Assets Rs. Share Capital: Fixed Assets 2,00.,900, ,. t:'. 1,000, 60Z Preference Stock 112.0$00, shares of Rs. 100 each, Book debts 2,,A.a;}a0 fully paid 1,00,000 Cash : '.4ry0 2,000 Equity shares of , ,.,. Profit and I oss 3,00j000 Rs. 100 each 2,00,00 Account 2,000 Equity shares of: : Rs. 100 each, Rs. 75., _ paid 1,50,000 Loan from Bank (on securify of stock) 1,00,000 Trade Creditors 3,50,000 9,00,000 9"00.000 The assets realised the following amounts (after all costs of realisation and liquidator's commission amounting to Rs. 5,000 paid out of cash in hand Rs. 40,000 as per Balance Sheet): FixedAssets Rs. 1,68.000 Stock Rs. 1,10,000 Book Debts Rs. 2,30,000 Calls on par1ly paid shares were made but the amount due on 200 shares was found to be irrecoverable. Prepare the Liquidators'Final Statement of Account. OR TI]RN OVER s7269 c28C2817 6 A2847 829207 BF7DD8DC5 3 C2  Paper / Subject Code: 44801 / Financial Accounting - V 3. Following is the Balance sheet of Panasonic ltd as on 31't March,2018 (15) Liabilities Amount Assets , 6,000 80% Preference Goodwill 60,000. shares of Rs.100 each 6,00,000 Patents 40,000 50,000 Equity shares Building 6,00,000 of Rs.10 each 5,00,000 Furniture 1,00,000 5% Debenture of 1,50,000 Rs.100 each 3,00,000 Sundrv Debtors 75,000 Outstanding Bank 75,000 Debenture interest..::.' " 50,000 Profit and loss a/c 5,30,000 Sundry creditors 1,80,000.,.., Total 16,30,000 Total 16J0p00 Note: Preference dividend is in arrears for three years. The following scheme of reconstruction is approved by Court- 1) The Preference shares shall be convefied into equal number of 9o/o Preference shares of Rs.50 each and the Equity shares shall be reduced to Rs.3 each. 2) 5% Debentures shall be reduced to Rs.75 each. The debenture holders agreed to waive 50oh of outstanding interest. 3) Sundry creditors agreed to waive 30% of their claims and to accept Equity shares for Rs.30,000 in part settlement of their renewed clairns. 4) Arrears of Preference dividend to be reduced to one year's dividend which is paid immediatelY. TURN OVER 57269 c28C28 I 76 A 28 47 829207 BF7DD8 DC5 3 C2  Paper / Subject Code: 44801 / Financial Accounting - V 7 s) The assets are revalued as under- a. Building - Rs.6,60,000 b. Furniture - Rs.80,000.. c. Stock - Rs.1,00,000 ltt' i.:, d. Sundry debtors-Rs.70.000 6) Intangible and fictitious assets are to be written off. You are required to Pass Journal entries and prepare Capital reduction a/c inthe books of'Panasonic ltd....:" ;- ,:"1 4. Following is the Balance sheet ofMs"',SatyaItd.:,as on 31" March,2018 15 I Liabilities Rs. Assets.' Rs. Equity Shares (Rs. l0) 50,00,000 FixedAssets 60,00,000 Security Premium 5,00,000 trnv,e ments 50,00,000 General Reserve 20,00,000 B'ank 30,00,000 Profit and Loss A/c 25,00,000 Other Current Assets 5o,oo,o0o l0% Debentures 40,00,000 Bank Loans 10,00,000 Sundry Creditors 40,00,000 1,90,oo,ooo 1,90,00,000 The Company decided to buy back its equity shares for this purpose the company took the following steps: 1. Issued 3,000, 80% preference shares of Rs.100 each at a premium of 5o/o. 2. Issued 2,000,10% Debentures of Rs.100 each at a premium of 10%. 3. Sold 70% of investments at a profit of 10%o. Ascerlain: a) Maximurn Nurnber of equity shares that can be bought back. b) Maximum price it can offer for buy back. c) Pass Journal Entries in the books of the company. OR TURN OVER 57269 c28C2817 6 A2847 8292078F7DD8DC53C2  Paper / Subject Code: 44801 / Financial Accounting - V 8 4. Spine Ltd. invited applications from public for 1,00,000 Equity 15 shares of Rs.l0 each at a premium of Rs.5 per share. The entire issue was underwritten by the underwriters P, Q. R and S to the extent of 3ooh, 3Oo , 20o/o and 20o/o respectively with the provision of firrn underwriting of 3.000:2.000;1.000 and 1.000 shares respectively. The underwriters were entitled to the maximum commission permitted by law. The company received applications for 70,000 shares from public out of which applications for 19,000;10,000;21,000 and 8,000 shares were marked in favor of P. Q, R and S respectively. Calculate the liability of each of the underwriters when firm underwriting shares are treated as marked and unmarked applications. 5 A) State the conditions for arnalgamation in the nature of rnerger. 8 B) What do you mean by Liquidation of a cornpany? Describe the diflerent modes of winding up? 7.OR 5. Short notes: (Any 3) 15 1. Overriding Commission 2. Purchase consideration 3. Preferential Creditors 4. Need of Internal Reconstruction ,' c28C28 17 6 A2B 47 8292078F7DD8DC5 3 C2