TC RAN-0260 S.Y.B.Com. (Sem.-IV) Examination March / April - 2019 Advance Accogntingand Auditing - Paper IV yal: / Instructions — FFE! NP TYE OF CoM se (a) 98251 64074, 02 AR cae Maida Gad Grad waa awd. Seat No. Fill up strictly the details of signs on your answer book [ El Name of the Examination: = [SY.B.Com. (Sem-1V) Name of the Subject «= [Advance Accounting and Auditing - Paper IV Subject Code No.:[0 J[ 2 |[6 ]Lo Student’ Signature 2) Weil edule 9. (3) ocwetl oneal is As WAdeil yor eald B. (4) 9321 suetdl ovatotett ouaz’l eatfal. ML. RAL Yovor aust Ul, (10) (at) wel Suell dett 12% et 20,000 Dyed 2s 31.100 Az Als 31.70 ou) 25% aL MGR Uae seat HID B. Sule aid onrfleAlZl sflfeAr 31.1,00,000 Biel tgl-ageltet Vutd (674L) 31.4,80,000 outst eatld 9. Suefler 31.10 ail 2s vat viii viii SEAL ae 20% WIRAA ote visu Sedlett a Ae cee satel Buel avil, 3 (o fel wulecll ueell Yl aatsae Heo Fula aust audi avil. 31.40,000 afl stHetdett anerell ried ovatetdl él. Guilsd roi oratoretdlell SiS onraUd $24 ell, dell 31.28,000 Hi ucta2 sean Buel. 204 ecti lat Sul well 31.25,200 afl a4 aye Ue ell. 2 AuRoRa UTE OF CO RAN-0260 | [1] [P.T.0.]Suel 2013 att Risya-3 Hover uly BAY Aue secfl avid el2ell Fadl Sat yA alls ia Yar aflrls den alas A oven. 3 » Keele azia - Gell gf 3, 522m [euitalle 4. aie [ses (Ss) eioceat fle aliustai t.31.3.17 lt tov lA yovorell ottsl eel. BL 2b Let 3,00,000 oalatlal MAR 60,000 tel Mild 2,00,000 adh ued atte 50,000 HLL Deel — (LetLe2 UL etgletl 31.60,000 2Y44c1) 1,50,000 80,000 #55. Az 31.10 ala yet US 8,00,000 Judd A es 4 55. AR HRIAMRA 1 cibeta G2 BUUAle etstl ef, aed Bt yi Gular seal, vz atrudila evil, 2 W2, diet Suell ot iustaiell 1.31,3,2018 att ov laell oustaii aol 3. 15 Gare ost BL | ovat east 3. teu sila 60,000 | Avtar 60,000 ste 7,00,000 | ada cut 36,000 aud, (6Rses + De aw 20,000 | 10% Ree SAA ae ur 82,500 | geet ae (31.10) 400,000 Hy A dese vu 4,40,000 ate wutet 3,000 | 5a, & 4dl (31.10) 14,00,000 | 2015-164 deat | ys eas ai 10,000 | tasdetell oaarare feu Raat ds, deHi 2015-16 78,000 asta 80,000 | 2016-17 1,30,000 AuRoRa RAN-0260 | THE IN Ge [ Contd. FN,SNTY 98251 64074, 0261-2:muse ysda Buds : 2015-16 60,000 | qzaateit oust 2016-17 90,000 | lait 16,000 2017-18 1,50,000 | [solaa weatfal 1,00,000 adlaal veal 1,84,000 uid 22s 2,43,000 | are viel ated 3,500 | diss 21a ols Ras 1,87,000 | sta «a 10,70,000 Kadi catey 1,5000 | 15% at [oiue | Gia ata $,000 | il.31.3.22« lov Ua SRAleLL) 2,00,000 WUR 100,000 | AUMte 2H 4,50,000 dal 3,00,000 | oiitll Herel aril 50,000 ovale 12,00,000 | saad saa 60,000 eaten 1,62,000 | Geiae wealrffe sna 1,50,000 | et-qsette ld (1.4.17)1,88,000 aaaretel alee : (1) aU.1.10.17 at lov RolMora Hye 10% at Raa veer satel DUAL, AL.1.10.17 uel AUER OU Ag Dede BAses Ysa ed. 1.22 dlestla asda GH duet wild Gua A Rae at aed sid itudia awa eel, (2) adie oaorell esHai 31.8,000 Gola wad Fil aster cate warda vil 8. (oer, weet Filet Astvild eter Horate ousl 31.2000 8. (3) astd-diali We 10% AVL aaatell oAaraws ata aug al 2017-18 AL BIAS Atel Aarts 31.3,00,000 421. (4) adladl vehi Aeladat Reszea ysa weetcwy 31.18,000 el aaa 8, Ra see ailovit egteatl 5% AVL Haectty] BAL 8. (5) Zaretal wz 31.4,000 ata aevrdell ora si. (6) wted BALA Vile 31.1,00,000 a1 Rediar wectfAl vid 31.30,000 Rereet Sal, (7) Reseda 6% Av aeounid ses ded ed. 2A 10% Avi ated [lasesell mart 52 3. Suell at 2013 URRe-3 Hover Sule alls (Geuot dae 42h. RAN-0260 | [PT.O. ] ast Gaby), ozsr 2744038M3, Hover of l.31.12.18 ett ove wy BRA lA yovor 8. 13 Gara aL 1) | 2ai-delA : desl | 10d Mar ya oud Js Ae 10,00,000 10% s4 Ug ae (31.10) 6,00,000 | faa aug @ai: 10% Kolar 4,00,000 ols ailaz stg | 1,40,000 see et | 1,00,000 tg 2a: Quel Zar: ue 2,00,000 2st uotell ovata 20,000 Ga. ots euey 24,60,000 2) | Pras : 21. arg Preset : | sea Preasell : ovale 4,25,000 Valle? 2,00,000 | wiger Rasel : wad | 90,000 Wee 70,000 Goret ang aisteil : Zlsteil 1,30,000 ait ofl aL. uLveat 70,000 ax dd Wid 8,10,000 aid Basil: als 2,80,000 | eater 3,85,000 | 24,60,000 AL1.4.19 etl Zev BELA Yt: Baettell Alovedt H9y2 Sz. (1) eas Dy Qe 3.6 yell ate eds s.2e 31.8 el aardl. (2) 2svgil 31.1,60,000Hi 42fl lai 21 cisgue asell 2a. (3) Suef adel ete 31.50,000 «il asl 2a. 97 TM 31.40,000 (222 eitermiell aaa ad oatstell let 31.50,000 at yrorud 55.02 ysd (eared aad asl eel. (4) Auretdlel date Qeati V2 80% 25H (31.10 al yRoRUB) 5.22 Hi Raut asd aaa, AuRoRa THE INSTITUT! FY,SY,,T¥,8.COW.E RAN-0260 | 98251 Gy, [ Contd.(5) Gola clea dae yet aeti W acl Suctle 12% att Rolae siya. (6) Deda wa Beal A afer Adal GRses V2 1/3 24 Bsdeat Ravel wierd 55.2 aul ysl 2d. (7) mia ata aaedlas Masi Hid andl. ydl aatst BIL vz] wirudila avll Hdl aatst Weld wus BRAY due sz. UAL ‘ude. f L.31.3.2017 at loved Uy BAY IA Hover 9. Fare BL. (1) zai - SAA: | (at) ae dt 31.10 el Bla yRioreutd Js. = 20,00,000 31.100 ail Hs Ba 31.80 | onus 10% RL, a2 8,00,000 | 31.100 ii His Bat Yat ous 12% att RELMg.AR 4,00,000 (ot) meted BA atl: oanlertl Balun | 1,00,000 Ble BELL 7,20,000 tal pellet Vil, 2,30,000 aug zal: Auta 50,000 43,00,000 (2)| Base : | (2) Gre aug Basel = seal Pets 30,50,000 (ot) aa ase : als 3,00,000 eater 7,00,000 diss ata ols Pras 2,50,000 43,00,000 AuRoRa THE INSTITUTE OF Comme THE | T comm: FY,S.Y.TY.B.COM,B.COM (ronsy ta 9825) ; RAN-0260 ] 1 64074, pagiy274sos4 [P.T.0.]u4. yor yp Sulla tl.1.4.2017 at lov Sue aretel oAatatde we sul cue cia usrat Dy deat avati 10% at Balad wad sated ssl ef, dani diss-cls ras 31.2,30,000 2uratell 9, Dede weet satel daell Sucler og vari 10% ait $4, Vg. 10% at Balad oe ws. Tg.de deste aati sel tea. Dg.deett auati weet sul one ysl uel BeLtdell Guill €2 10 55.48 dle 1 yet GUUS 5.28 olla HR BIUAL AE seal. Grrat Uae alga Suelet aus ovgl aieila anil. dy.de wet sul wld wy aad dae sl. aseila avil. (201 A avi) 12 ofl 22 B13 Boll tt wvleds yee. ydl aatst 2A Sued aratell eared. Haha Masdl wa aiaha ea g.82 YL wet Al. wMMrct 5H - ofl wall STH. English Version Instructions 1. As per the instruction No 1. of the page no 1. 2. QEo | is compulsory 3. Marks to the right indicate marks of the question 4, Calculation should be a part of your answer. Qu. A) Answer the following (10) Parth company desires to redeem its 12% 20000 preference share of 3 Rs.100 each paid up as 70 per share at 25% premium. In the books of company there was balance of security premium Rs 100000 and profit and loss account ( Cr) Rs 480000 . Company issued minimum of equity share of Rs 10 each at 20% premium, Write journal entry of issuing equity share in the books of the company. AuRoRa THE iNSTITUTE OF COMMERCE FS. c.¥,B,COM,B.COW. (HONS), & M.COM, RAN-0260 | "96281, 64074,361-2744054 [ Contd.B) From the following information pass journal entries with regard to capital 2 reduction. There was contingent liability of Rs.40000 workmen compensation above contingent libility for which no provision had been made was settled at Rs 28000 however the amount of Rs 25200 was recovered from insurance company. C. How will you disclose the following items while preparing the balance 3 sheet of a company as per the schedules - III of the companies Act.2013? 1. Debenture discount 2. Bills Receivable 3. Custom Deposit 4, Proposed dividend D. Following balances appeared in the books of Aajya lid as on 31-3-2017. 2 General Reserve Rs. 300000 Security Premium Rs. 60000 Profit and Loss Account Rs. 200000 Capital Redemption Reserve Rs. 50000 Capital Reserve ( including Rs 60,000 being profit on sale of plant ) 150000 80000 equity share of Rs 10 each 800000. ‘Company decided to issue bonus at the rate of | bonus share for every 4 share held by the equity shareholders of the company . It decided to utilize minimum free reserve. Pass necessary journal entries. Q.2. Following balances are available from the books of Shant company Itd. As on 31-3-2018. Debit balances Rs. Insurance premium. 60000 Buildings 700000 Interim divided 20000 On pref shares 82500 | On Equity shares jOnEquityshares 0 Pref. Shareholder’s A/c 440000 Bad debts 3000 Additional Incometax paid for 2015-16 10000 Investment in Deep Ltd Eq. shares 80000 wRORAa THE INST FNS, TY.8.CON (Hons 98251 64074, 0261-2744054 RAN-0260 | {7] [PT.0. ]Income tax paid in advance 2015-16 60000 | 2016-17 90000 | 2017-18 150000 Administrative Expenses 184000 | Stock of goods 243000 Cash and Bank Balance 187000 Interest on Debenture 15000 Debenture discount 5000 Salary 100000 Machinery 300000 Land [1200000 Debtors 162000 Debenture Redemption fund investment 150000 Credit balances Rs Creditors 60000 Interest received 10% Redeemable Pre 36000 Shares of Rs 10 each 400000 Equity shares of Rs 10 each 1400000 Provision for Income Tax 2015-16 | 78000 2016-17 I 130000 Outstanding insurance 16000 Debenture Redemtpion fund 100000 Bad bets reserve 3500 Gross profit 15% debentures 1070000 (1o be redeemed on 31-03-2022) 200000 General Reserve 450000 Fixed Deposits 50000 Securities Premium 60000 [Profit and loss Account ( 1-4-2017) 188000 Additional Information 1) Redeemable Pref. Shares were redeemed on 1-10-2017 at a premium of 10% the dividend on pref shares was paid up to 1-10-17. The amount paid to the Pre. shareholder's was debited to their account. Except this no other entry showing the effect of these transactions has been passed. 2) Amount of interest received includes Rs 8000 received on debenture redemption fund investments. Interest receivable on debenture redemption fund investment Rs. 2000. AuRoRa RAN-0260 | TEE WUT MER [ Contd. 64074, 0261-27440543) Provision for depreciation at 10% on building and machinary and provision for income tax Rs. 300000 for the year 2017-18 is to be made. 4) Administrative expenses include Rs. 18000 remuneration paid to the managing director. Remuneration at 5% of net profit is to be paid to the managing director. 5) Provide for bad debts reserve Rs 4000 on debtors. 6) Transfer Rs. 100000 to general reserve account and Rs 30000 to debenture redemption fund account. 7) The director’s have distributed interim dividend at 6% and have proposed a final divided of 10%. Prepare final accounts of company schedule III of companies Act.2013. 3. A balance sheet of Shejal Co Itd as on 31-12-2018 is as under Particular Rs (D)_ Equity - liabilities : Capital Equity shares of Rs 10 each fully paid 1000000 10% cum pref shares of Rs 10 each fully paid 600000 Non current liabilities, 10% Debentures 400000 Bank overdraft 140000 Directors Loan 100000 ‘Current liabilities : Creditors 200000 Short term liabilities : Interest due on debentures 20000 2460000 Il) Assets : A. Non current Assets : Fixed Assets : Land 425000 Plant 200000 Goodwill 90000, Petant 70000, Non current investment 130000, Other non current Assets Priliminary exp 70000 Profit and Loss A.c 810000 Current Assets stock 280000 Debtors 385000 2460000 AuRoRa THE INSTITUTE EY, SY. .Y,B.60},B.09 RAN-0260 } Ae [P.T.O.]On 1-1-19 court has approved a re-organizations scheme. Every preference share up to Rs 6 and every equity share to be reduced by Rs.8 2). Investments are to be sold at Rs 160000 and bank overdraft is to be paid. 3) A dispute worth Rs 50000 against the company is to be paid out of which Rs 40000 are collected from director loan. The remaining directors loan is paid off by Rs 50000 as total settement by issuing equity shares, 4). Creditors are adjusted by paying 80% of their amount by issuing fully paid equity share of Rs. 10 each. 5) New debentures of 12% are paid to the debenture holders against their total amount. 6) Preference shares dividend for two years isto be paid adjusted by paying 1/3 amount of fully paid equity shares. 7) All intangible assets and unseen assets are to be written off Pass necessary journal entries and prepare a balance sheet after introduction scheme. 3. The following is the Balance sheet of Pavan Itd as on 31-03-2017. Equity — Liabilities : Capital Equity shares 2000000 of Rs 10 each fully paid up 10% Redeemable Pref share Rs 100 each 800000 Rs 80 paid up 12% Redeemable Pref shares Rs 100 each 400000 fully paid up Reserve and surpluse : Security Primium 100000 General reserve 720000 Profit and Loss A/e 230000 Current Liabilities : Creditors 50000 4300000 Assets : A Non Current Assets : Fixed assets 3050000 B. Current Assets ; Stock 300000: Debtors 700000: ‘Cash and Bank balance 250000: 4300000 ‘The company on 1-4-2017 decided to redeem both the classes of preference AuRoRa RAN-0260 ] [ Contd.shares at 10% premium after complaying with the provision laid down under the company act. Cash and bank balance of Rs 230000 to be maintained in the business. For the purpose of redemption, the company issued necessary number of 10% cumulative pref share at 10% premium, Preference share holder are paid. After redemption of pref share, the company decided of utilize the capital redemption reserve to issue | fully paid up equity share as bonus share for every 10 equity shares. Record the above transaction, pass the necessary journal entries in the books of the company and prepare the balance sheet after redemption. 4. Write short note any three: 1B SEBI guidelines for issue of Bonus-shares. Provisions of Companies Act for capital reduction. Contingent assets and contingent liabilities. Redemption of preference share capital. Write short note on certified work and uncertified work. AuRoRa THE INSTIFUTE-OF COMM FY,S.,TY.0.GOM,8.COM. ( yveepe RAN-0260 | [1] [19200 ]