Bachelor of Commerce – B.Com Second Year Solved Assignments for 2020 Annual Examinations
BCOM Part 2 Solved Assignment
Code : CA
Course Title : Corporate Accounting
CA: Corporate Accounting Solved Assignment for 2020 Annual Exams
Following are the questions of CA: Corporate Accounting of SOL – BCOM Assignment for 2020 Annual Examinations. To download answers of all the questions of this assignment in English click on the question, subject to availability of answer, you can view or download the answer there.
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Question 1. (a)Explain the provision relating to utilization of the securities premium Account.
Question 1. (b)What are the advantages of Buy back of shares by a company
Question 1. (c)Explain the term purchase consideration as per AS-14
Question 1. (d)Explain the meaning and objective of cash flow statement
Question 2. X Ltd. Whose issued share capital on 31 March 2013 consisted of 24,000,10% Preference shares of Rs.100 each fully paid up and 60,000 Equity share of Rs.100 each, Rs. 90 paid up, decided to redeem preference shares at a premium of Rs.10 per share .The company’s balance sheet as on 31-3-2013 showed a general reserve of Rs.28,00,000.The redemption was effected partly out of the proceeds of a new issue of 12,000 equity shares of Rs.100 each at a premium of Rs.35 per share .The premium payable on the redemption was met out of the premium received on the new issue .
On 1 July 2013, the company at its general meeting resolved that the reserves be applied in the following manner:
i) The declaration of bonus at the rate of Rs.10 per share on the equity share for the purpose of making the said equity share fully paid, and
ii) The issue of bonus shares to old equity shareholders in the ratio of one share for every five shares held by them
You are required to pass necessary journal entries.
Question 3. The following is the Balance sheet of Nidhi Ltd.as on 31st March 2016.
| Equity and Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| 20,000 Equity Shares of Rs.100 Each | 20,00,000 | Goodwill | 25,000 |
| 12% Debentures | 5,00,000 | Land and Building | 1,50,000 |
| Preliminary Expenses | (20,000) | Plant and Machinery | 3,00,000 |
| Profit and Loss Account | (19,80,000) | Furniture | 80,000 |
| Outstanding Debentures Interest | 1,20,000 | Stock | 2,70,000 |
| Trade Creditors | 3,00,000 | Trade Debtors | 60,000 |
| Cash at Bank | 35,000 | ||
| 9,20,000 | 9,20,000 |
The following scheme of reconstruction is executed
i) Equity shares are reduced by Rs 95 per share .They are,then,consolidated into 10,000 equity shares of Rs.10 each .
ii) Debenture holders agree to forgo outstanding debenture interest.As a compensation 12% Debentures are converted into 14% Debentures,the amount remaining Rs.5,00,000.
iii) Creditos are given the option to either accept 50% of their claim in cash in full settlement or to convert their claim into equity shares of Rs.10 each.Creditors for Rs. 2,00,000 opt for shares in satisfaction of their claims.
iv) To make payment to creditors opting for cash payment and to augment working capital,the company issues 50,000 equity shares of Rs. 10 each at par ,the entire amount being payable along with application. The issues was fully subscribed.
v) Land and Building are revalued at Rs. 2,00,000 whereas Plant and Machinery is to be written down to Rs. 2,10,000. A provision amounting to Rs. 5,000 is to be made for doubtful debts .
Pass Journal entires and draft the company Blance Sheet immediately after the reconstruction.
Question 4. (a)The net income reported on the income statement for the year was Rs.1,10,000 and depreciation of fixed assets for the year was Rs.44,000. The balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
| End of the Year (Rs) | Beginning of the Year (Rs) | |
| Cash | 1,30,000 | 1,40,000 |
| Debtors | 2,00,000 | 1,80,000 |
| Inventories | 2,90,000 | 3,00,000 |
| Prepaid Expenses | 15,000 | 16,000 |
| Accounts Payable | 1,02,000 | 1,16,000 |
Calculate total cash from operation activities.
Question 4. (b)From the following particulars, you are required to calculate :
(i) Current Ratio (ii) Net Profit Ratio (iii) Gross Profit Ratio
Net Sales : Rs.1,40,000; Gross Profit :Rs.10,000; Net Profit :Rs.6,000; B/R : Rs.2000 ;
Debtors:Rs.8,000; Stock: Rs.10,000; Cash: Rs.6000; Creditors:Rs.12,000; B/P:Rs.8,800