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Crux for Corporate Accounting :2014 B.COM-1, A.B.S.T-1

SHORT/VERY SHORT QUESTIONS Q.1 Give any four objectives of accounting? Q.2 Name Fundamental Accounting Assumption. Q.3 Name any two accounting concept. Q.4 What is Dual Aspect concept? Q.5 What do you mean by Going Concern Concept? Q.6 What is meant by convention of conservatism? Q.7 “Every debit has equal credit” to which concept is this rule related? Q.8 Give Accounting Equation. Q.9 What do you mean by “ Generally Accepted Accounting Principles? Explain Q.10 Give the name of Accounting Concepts and Conventions? Q.11 Give two examples of uses of convention of conservatism. Q.12 When was the Accounting Standard Board Constituted? Q.13 With which the Accounting Standard-1 is concerned and When did it come into force? Q.14 Write the name of AS-1,9,14,20. Q.15 What is completed service contract method? Q.16 State the main function of Accounting Standard Board. Q.17 In how many categories the Share Capital of a company may be classified? Q.18 What is meant by Authorised Share Capital? Q.20 What is meant by under subscription of shares? Q.21 State the meaning of Reserve Capital? Q.22 What is maximum amount of discount on Re-issue of Forfeited Shares?

Q.23 A company forfeited 100 shares of Rs.10 each, Rs 8 called up for non payment of first call @ Rs 3 per share.Pass journal entry for forfeiture of shares. Q.24 A company had issued 5,000 equity shares of Rs. 100 each of which Rs. 75 per share was called.A person holding 200 shares had paid only Rs 40 per share.Give journal entry for recording the transaction relating to forfeiture of his shares. Q.25 What are uses of securities premium under Section 78 of the Companies act1956? Q.26 What do you mean by forfeiture of shares. Q.27 A company forfeited 500 shares of Rs 10 each, Rs 8 called up for non payment of first call @ 3 per share and re-issued these shares @ 9 per share as fully paid up.Pass journal entries regarding forfeiture and reissue. Q.28 Gaurav was allotted 200 Shares of Rs. 100 each Rs 95. The amount was payable as Rs 25 on application ,Rs 30 on allotment and Rs 40 1st call. He cannot pay the amount of 1st .His shares were forfeited and reissued @ 50 per share.Make the journal entry for forfeiture and reissue. Q.29 What do you mean by “ Buy back of shares�? Q.30 Give journal entry for issue of shares to promoters for their services. Q.31 Can partly paid up preference shares be redeemed. Q.32 The redeemable preference shares were redeemed out of a general reserve of Rs 5,00,000. Give journal entry for creating capital redemption reserve account. Q.33 Give necessary journal entry for redemption of preference share at premium. Q.34 Which profit may be used by a company for redemption of its preference shares? Q.35 What do you understand by issue of debenture as collateral security. Q.36 Show the treatment of Debenture as collateral security in Balance Sheet. Q.37 A company took loan of Rs 4,00,000 from a bank and deposited 12% debenture of Rs, 6,00,000 as collateral security with the bank. What journal entry will be made for issue of these debentures? Q.38 A limited Company issued Rs 1,00,000 Debenture at a discount of 5% repayable at a premium of 5% at the end of 5 years. What entry should be passed at the time of issue ? Q.39 State what is the main difference between a share and Debenture? Q.40 S ltd issued Rs 80,000, 13% debenture at 5% discount,which are redeemable at 10% premium after three years. Pass the journal entry on issue of debenture in the books of company.

Q.41 What journal entry would be made when debentures are cancelled immediately after purchase? Q.42 A company purchased 200 12% debentures of Rs 100 each at 97 on 1st july,2013 for immediate cancellation. Interest is payable on 30th September and 31st march each year. Pass journal entries in the books of the company if it is purchased on cum interest. Q.43 What do you mean by underwriting? Q.44 What do you mean by Sub-underwriting? Q.45 What is firm underwriting? Q.46 What is the maximum rate of underwriting commission for shares and debenture as per Companies Act? Q.47 What do you meant by net assets? Q.48 if interest is due on purchase consideration then what journal entry is passed on its payment? Q.49 What do you mean by “ profit prior to incorporation”. Q.50 Give the accounting treatment of loss prior to incorporation. Q.51 For calculating the profit prior to incorporation and post incorporation name any six items which appear in profit and loss account and state in which ratio these items will be apportioned between two periods. Q.52 What is meant by divisible profits. Q.53 Give accounting entry, when dividend is proposed by the direxctors. Q.54 Give four examples of capital profit. Q.55 What is maximum limit of managerial remuneration under Section 198 of the Companies Act,1956? Q.56 What is contingent liabilities? How is it shown in the balance sheet of a company? Q.57 How is discount on issue of share/Debenture shown in the balance sheet of a Company. Q.58 Where does “ Advance payment of tax” appear in balance sheet. Q.59 What do you mean by fictitious assets?Explain with examples. Q.60 Give an abridged form of Balance Sheet.

Q.61 What do you understand by internal reconstruction? Q.62 Give any situation when internal reconstruction is desirable? Q.63 Give journal accounting entry for conversion of equity shares into stock. Q.64 What do you mean by following entry? Debentureholder A/c To Capital Reduction A/c Q.65 What do you understand by the following entry? Land & building A/C To Capital Reduction A/c Q.66 Give necessary accounting entry if unpaid dividend on preference share is partly sacrified. Q.67 For what purposes the balance of Capital reduction account may be used? Q.68 How internal reconstruction of Companies is possible without reduction of share capital? Q.69 What do you mean Amalgamation of companies? Q.70 From which date the Indian Accounting Standard became effective? Q.71 What is meant by Absorption of Companies. Q.72 What type of amalgamation are mentioned in Indian accounting standard 14? Q.73 What is Purchase Consideration? Q.74 What does the following journal entry show in the books of the transferee company : Capital Reserve A/C To Stock A/C Q.75 What is meant by “ Amalgamation in the nature of merger”? Q.76 What is meant by Liquidation of companies? Q.77 What are types of voluntary winding up. Q.78 What do you mean by contributory? Q.79 Who are included in list “A” of contributors as a result of winding up of a company.

Q.80 Calculate the amount of remuneration to the liquidator from the following data : Amount available for unsecured creditors Rs. 50,000 Unsecured creditors

Rs 46,000

Liquidators remuneration is 105 of payment to unsecured creditors. Q.81 What is the order of payment by the liquidation in his statement of account? Q.82 Write short note on Deficiency Account.

PRACTICAL QUESTION : IMPORTANT CHAPTERS : 2014 EXAMS 1) Issue and forfeiture of shares 2) Amalgamation of companies 3) Issue of Debenture 4) Final Accounts of companies 5) Profit prior to incorporation and underwriting THEORY CHAPTERS /TOPIC : 1) Accounting concepts & convention 2) Liquidators Final Statement of account