Financial Accounting TYBCOM SEM 6 Question Paper 2023
[Duration:3 Hours] [Total 100 Marks]
N.B:
1) All questions are compulsory.
2) Figures to the right indicate full marks.
3) Working notes should form part of your answers.
4) Use of simple calculator is allowed.
Q.1 A) Select the correct options for the given choice (Any Ten) (10 Marks)
1) A Limited Liability Partnership is governed by __________.
a) Partnership Act 1932
b) Companies Act, 2013
c) Limited Liability Partnership Act, 2008
d) Limited Liability Partnership Act, 2018
2) According to SEBI Regulations, if the subscription is not at Least __________ of the offer amount, all the application money needs to be refunded.
a) 40%
b) 75%
c) 60%
d) 90%
3) Mahesh Limited issued shares at a Face Value of Rs 100 with a premium of Rs 10 per share. The underwriting commission will be calculated on ___________ .
a) Rs 80
b) Rs 90
c) Rs 110
d) Rs 100
4) Rate of Exchange at the Balance Sheet date is called _____________ .
a) Average Rate
b) Closing Rate
c) Reporting Rate
d) Monetary Rate.
5) Audit requirement in case of Limited Liability Partnership is only when the contribution exceeds Rs. 25 Lakh or the turnover exceed Rs. _________ .
a) 40 Lakhs
b) 25 Lakhs
c) 2 Crores
d) 10 Crores
6) Assets specifically pledged are placed in ____________ to the Statement of Affairs.
a) List D
b) List C
c) List B
d) List E
7) ____________ is used in presenting financial statement.
a) Bitcoin Currency
b) Foreign Currency
c) Reporting Currency
d) Digital Currency
8) __________ is not a Preferential Creditor.
a) Expenses in investigation
b) Salary & Wages
c) Government Dues
d) Unsecured Creditors
9) Accounting for Amalgamation is governed by ____________ .
a) AS 2
b) AS 9
c) AS 11
d) AS 14
10) Application forms bearing Stamp with the respective underwriter are called as ______________ .
a) ESOP application
b) Unmarked application
c) Proprietary application
d) Marked application
11) If the business of an existing company Modern Ltd is taken over by an existing company Ultra-Modern Ltd, it is called ____________ .
a) Absorption
b) Amalgamation
c) External reconstruction
d) Internal reconstruction
12) A person can act as underwriter only if” he hold a certificate granted by ___________ .
a) Registrar of Company
b) SEBI
c) RBI
d) Registrar of Firm.
Q. 1 B) State Whether the following statements are True or False (Any Ten) (10 Marks)
- Amalgamation Adjustment Account is prepared to record the Capital Reserve in Transferee company.
- Underwriters are not required to subscribe the shares of firm underwriting.
- When all the shares are underwritten by the underwriters, it is called partial underwriting.
- Debtors, Bills Receivable and Cash are the examples of non-Monetary items.
- In Liquidation of Company, List H ind cates Surplus/ Deficit.
- Exchange Rate prevailing on Settlement date is termed as Average Rate,
- In Amalgamation, Fictitious Assets should be transferred to Realisation Account to close the transferor company accounts.
- “Pooling of interest method” is a method of Accounting for Amalgamation.
- As per Companies Act 2013, the commission payable to underwriter for underwriting of shares should not exceed 5%.
- LLP should have minimum 50 partners.
- On Liquidation of company, Preferential creditors should be settled before the payment of unsecured creditors.
- Inventory is termed as non-monetary item.
Q. 2 A) The Balance Sheet of Bhanu Ltd and Aakash Ltd are as under. (20 Marks)
Balance Sheet As on 31% March 2023
| Liabilities | Bhanu Ltd Rs. | Akash Ltd Rs. | Assets | Bhanu Ltd Rs. | Akash Ltd Rs. |
| Equity Share Capital (Rs.10 Each | 6,00,000 | 8,00,000 | Land and Building | 8,00,000 | 7,00,000 |
| General Reserves | 1,00,000 | 1,00,000 | Plant and Machinery | 3,00,000 | 2,00,000 |
| Statutory Reserves | 1,25,000 | 75,000 | Inventories | 4,75,000 | 3,25,000 |
| Profit and Loss Account | 1,75,000 | 1,25,000 | Sundry Debtors | 2,25,000 | 2,50,000 |
| 9% Debentures (Rs. 100 each) | 3,00000 | 2,50,000 | Cash | 1,25,000 | 2,25,000 |
| Sundry Creditors | 4,50,000 | 3,50,000 | Bank | 50,000 | 1,75,000 |
| Bills Payable | 3,25,000 | 2,75,000 | Preliminary Expenses | 1,00,000 | 1,00,000 |
| 20,75,000 | 19,75,000 | 20,75,000 | 19,75,000 |
Bhanu Ltd purchases Aakash Ltd w.e.f 1** April 2023 with the following terms and conditions.
a) Bhanu Ltd takes over all assets and liabilities of Akash Ltd at book values with the following exceptions
Land and building Rs. 10,00,000
Plant and Machinery Rs. 3,50,000
b) Purchase consideration is discharged by issue of Equity Shares of Rs. 10 each at a premium of Rs 10
c) Debentures of Aakash Ltd to be converted to equivalent number of 10% debentures of Bhanu Ltd of Rs. 100 each
d) Statutory Reserves is to be maintained for 4 more years
Prepare Ledger Account to close the books of Aakash Ltd and show opening journal entries in the books of Bhanu Ltd.
OR
Q. 2 B) On 1st August, 2021, Abhinav Ltd. an Indian Importer, purchased $ 2,00,000 worth of goods from DELL INC of USA @ Rs. 77 per $.
(10 Marks)
The payment for import was made as follows:
On 12 September, 2021 – $ 60,000 @ Rs. 79 per $
On 26″ October, 2021 – $ 80,000 @ Rs. 76 per $
On 5″ December, 2021 – $ 40,000 @ Rs. 78 per $
On 18″ January, 2022 – $20,000 @ Rs. 75 per $
Abhinav Ltd. closes its books on 31% March every year.
Prepare DELL INC of USA A/c and Foreign Exchange Fluctuation A/c in the books of Abhinav Ltd.
Q. 2 C) Amar Ltd, went into liquidation on 31% December, 2022 when its Balance Sheet was as
follows: (10 Marks)
| LIABILITIES | RS | ASSETS | RS |
| 150000 11% Cumulative Preference shares of Rs. 10 each | 15,00,000 | Land and Building | 7,50,000 |
| 7.500 Equity shares of Rs. 100 each, Rs. 75 paid | 5,62,500 | Plant and Machinery | 18,75,000 |
| 22.500 Equity shares of Rs. 100 each, Rs. 60 paid | 3,50,000 | Trademarks | 3,00,000 |
| 12% Debentures (Secured by floating charge) | 7,50,000 | Stock-in-trade | 4,02,500 |
| Sundry Creditors | 10,68,750 | Sundry Debtors | 8,25,000 |
| Cash at Bank | 2,25,000 | ||
| Profit and Loss A/c | 8,53,750 | ||
| 52,31,250 | 52,31,250 |
The assets realised as follows:
Land and Building Rs. 4,50,000; Plant and Machinery and Trademarks Rs. 17,25,000; Stock and Sundry Debtors Rs. 10,50,000
The expenses of liquidation amounted to Rs. 27,250. The liquidator is entitled to a commission of 3% on assets realised except cash.
Assuming, the final payments including those on debentures were made on 31% December, 2022, show the Liquidators Final Statement of Accounts.
Q. 3 A) Prashant and Roshni are partners in M/s. Carpenterwala LLP sharing profits and losses in the ratio 2:3. Following is their Trial Balance an on 31-3-2023. (20 Marks)
| Particulars | Debit Rs. | Credit Rs. |
| Stock (1-4-2022) | 25,000 | |
| Prashant’s Capital | 1,21,000 | |
| Roshni’s Capital | 85,000 | |
| Bills Payable | 46,500 | |
| Carriage Outward | 5,000 | |
| Purchases | 2,25,000 | |
| Return outward | 15,000 | |
| Sales | 4,07,000 | |
| Return inward | 2,000 | |
| Bad debts | 6,000 | |
| Sundry Debtors | 51,500 | |
| Cash at Bank of India | 20,000 | |
| Cash in hand | 5,000 | |
| General Repairs | 5,000 | |
| Warehouse Rent | 7,500 | |
| Motor Insurance | 6,000 | |
| Discount | 6,500 | |
| Manager’s Remuneration | 60,000 | |
| Vacant Land at Nashik | 1,50,000 | |
| Motor Car | 80,000 | |
| Laptop | 20,000 | |
| TOTAL | 6,74,500 | 6,74,500 |
Adjustments
i) Goods worth Rs. 6,000 taken over by Prashant for personal use were not entered in the books of account.
ii) On 31-3-2023 the cost price of closing stock was Rs. 30,000 and its market price was Rs. 28,000.
iii) Provide Rs. 1,500 for Reserve for doubtful debts on debtors.
iv) Outstanding expenses as on 31st March 2023: Rent Rs. 2,500 and Manager’s Remuneration Rs.5,000
v) Provide depreciation @ 10% p.a. on Motor Car and @5% p.a. on Laptop
vi) Goods worth Rs.12.000 were destroyed by fire and Insurance Co. agreed to pay Rs. 10,000 in full settlement of the claim.
You are required to prepare Profit and Loss Account for the year ending 31 -3-2023 and the Balance
Sheet as on that date after considering the above adjustments.
OR
Q. 3 B) Maruti Ltd issued 1,00,000 Equity Shares of Rs. 25 each at a premium of Rs. 10 each. The entire issue was underwritten as follows
(10 Marks)
Akshay 60,000 Shares (Firm Underwriting 10,000 Shares)
Bhavesh 30,000 Shares (Firm Underwriting 4,000 Shares)
Chintan 10,000 Shares (Firm Underwriting 2,000 Shares)
Applications received for 90,000 shares; the following are the marked applications including firm underwriting.
Akshay 24,000 Shares
Bhavesh 20,000 Shares
Chintan 8,000 Shares
Calculate the Net Liability of each underwriter when the benefit of firm underwriting is given.
Q. 3 C) Manas Ltd. exported goods to Shepherd Inc. of Canada worth $ 10,00,000 on 5™ January, 2021 when the exchange rate was Rs. 68 per US $. (10 Marks)
The amount was received in instalments as follows:
16.02.2021 – $4,00,000 @ Rs 69 per US $
16.03.2021 – $2,00,000 @ Rs. 70 per US $
16.04.2021 – $2,00,000 @ Rs. 67 per US $
16.05.2021 – $2,00,000 @ Rs. 65per US $
Manas Ltd. closes its books on 3 15 March every year when the exchange rate was Rs. 65 per US $
You are required to pass journal entries in the books of Manas Ltd. for the years ended on 31% March, 2021 and 31% March 2022.
Q. 4 A) Lost Life Ltd. went into liquidatio1 on 1* April, 2022 when its Balance Sheet was as follows: (10 Marks)
| LIABILITIES | RS | ASSETS | RS |
| 1000 10% Cumulative Preference shares of Rs. 100 each | 1,00,000 | Premises | 2,40,000 |
| 3,000 Equity shares of Rs. 100 each | 3,00,000 | Machinery | 1,65,000 |
| 14% Debentures (Secured by floating charge) | 1,50,000 | Stock | 2,60,000 |
| Interest Accrued on Debentures | 21000 | Sundry Debtors | 29,000 |
| Unsecured Creditors | 3,24,000 | Cash at Bank | 48,000 |
| Profit and Loss A/c | 1,53,000 | ||
| 8,95,000 | 8,95,000 |
Note: Preference Dividend was in arrears for one year.
The assets realised as follows:
Premises Rs. 1,70,000;
Machinery Rs. 85,000;
Stock and Debtors Rs. NIL
The expenses of liquidation amounted to Rs. 12,500. The liquidator is entitled to a remuneration of 1% on assets realised except cash. Assuming, the final payments including those on debentures were made on 31% December, 2022, show the Liquidators Final Statement of Accounts.
Q. 4 B) Prem Ltd. issued prospectus inviting applications for 80,000 equity shares of Rs.10 each at par. The whole issue was fully underwritten as follows: Hemant – 40,000 shares: Jayant – 30,000 shares; and Chhaya – 10,000 shares.
Applications were received for 76,000 shares which also included marked applications as follows: Hemant – 27,000 shares; Jayant – 18,000 shares, and Chhaya- 15,000 shares. Unmarked applications are to be distributed amongst the underwriters in the ratio of their gross liability.
Prepare a statement to determine the net liability of the underwriters. (10 Marks)
OR
Q. 4 C) Ishan and Amol are partners in MUs. Glassdoor LLP sharing Profits and Losses equally.
From the following Trial Balance of the L _P, prepare Balance Sheet of the LLP as at 31st March, 2023. (10 Marks)
| Particulars | Debit Rs. | Particulars | Credit Rs. |
| Stock as on 31.03.2023 | 18,000 | Capital Accounts | |
| Trade Receivables | 32,000 | Ishan | 85,000 |
| Computer | 75,000 | Amol | 65,000 |
| Printer | 15,000 | Bills Payable | 22,000 |
| Prepaid Advertisement for 4 years | 6,000 | Outstanding Salaries | 5,000 |
| Investment in Equity shares of Reliance Ltd | 10,000 | ||
| Cash at Bank with HDFC Bank | 21,000 | ||
| 1,77,000 | 1,77,000 |
Q. 4 D) Following is the Balance Sheet of Maharaja Ltd as on 31st March 2023. (10 Marks)
| Liabilities | Rs | Assets | Rs |
| 8% Preference Share Capital (Rs 100 | 10.00.000 | Goodwill | 3,25,000 |
| Equity Share Capital (Rs 10 each) | 10,00,000 | Land and Building | 14,60,000 |
| General Reserve | 4,00,000 | Plant and Machinery | 5,10,000 |
| Statutory Reserve | 1,75,000 | Investments | 4,18,000 |
| Profit and Loss Account | 2.40,000 | Inventories | 2,25,000 |
| 9% Debentures | 8,00,000 | Sundry Debtors | 3,26,000 |
| Sundry Creditors | 3,60,000 | Bills Receivable | 3,91,000 |
| Bills Payable | 1,05,000 | Cash and Bank | 3,56,000 |
| Provision for Tax | 75,000 | Preliminary Expenses | 1,44,000 |
| 41,55,000 | 41,55,000 |
Chakravarti Ltd is formed with an authorised capital of 6,00,000 Equity Shares of Rs. 10 each to take
over all the assets and liabilities of Maharaja Ltd with the following terms and conditions.
a) The assets are to be taken over at 10% more than the book values.
b) Goodwill of Maharaja Ltd is valued at Rs. 5, 40,000.
c) Cost of formation of New Company amounted to Rs. 38,000.
d) Debentures of Maharaja Ltd is to be converted into equivalent number of Debentures of Chakravarti Ltd.
e) The purchase consideration is discharged by issue of Equity Shares of Rs. 10 each.
Find out the purchase consideration.
Q.5 A) Explain statement of affairs in liquidation of company. (10 Marks)
Q.5 B) Explain benefits of Limited Liability Partnership. (10 Marks)
OR
Q. 5 (C) Write Short Notes (Any Four) (20 Marks)
1) Purchase Consideration
2) Spot rate and Closing rate in Foreign Currency Transactions
3) Liquidators Final Statement of Account
4) Underwriting of shares
5) Amalgamation and Absorption
6) Monetary Items
Financial Accounting TYBCOM SEM 6 Question Paper 2023 Pdf
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