Corporate Accounting Previous year Question Paper 2016

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Corporate Accounting Previous year Question Paper 2016

Corporate Accounting Previous year Question Paper 2016 :-  Its Question paper is very helpful for you and your Exam you can get many more marks if you read full question and its solution.

    Bcom. III Examination , 2016
    Commerce – 1 corporate Accounting
    Time : 2 Hour]                                  (C- 301)                                          [M.M : 100
  1. After forfeiture of unclaimed dividend, the amount is transferred in:
    1. General Reserve
    2. Dividend Equalization Fund
    3. Capital Reserve
    4. Capital Redemption Reserve A/c
  2. Share Premium Account is shown in liability side of balance sheet under which head:
    1. Reserve and surplus
    2. Share capital
    3. Secured loan
    4. Current liability
  3. Unclaimed Dividend account is shown is balance sheet in :
    1. Secured loan
    2. Unsecured loan
    3. Provision
    4. Current liability
  4. Discount  on issue  of shares account’ is shown in :
    1. Assets side of balance sheet
    2. Liabilities side of balance sheet
    3. Statement of profits-loss
    4. Statement of profits-loss appropriation
  5. Dividend is paid form:
    1. Share premium account
    2. Capital redemption reserve amount
    3. Profit of pre-incorporation
    4. Profits of current year
  6. Proposed dividend is shown in:
    1. Profits & loss statement
    2. Liability side of balance sheet
    3. Asset side of balance sheet
    4. None of the above
  7. Which item is not current liability from the following?
    1. Unpaid dividend
    2. Bills payable
    3. Bank overdraft
    4. Minorities interest
  8. ‘tax provision’ is shown in balance sheet in which head?
    1. Current liability and provision
    2. Reserve and surplus
    3. Secured loan
    4. Sundry expenses
  9. Interim dividend is shown in:
    1. Profits & loss statements
    2. Asset side of balance sheet
    3. Liability side of balance sheet
    4. Profits-loss appropriation statements
  10. In how many days of declaration of dividend, it is necessary to issue warrant or cheque?
    1. 42 days
    2. 21 daya
    3. 15 days
    4. No limits
  11. When bonus share is issued, which account is credited?
    1. General reserve account
    2. Share premium account
    3. Share capital account
    4. Bonus to shareholder account
  12. Bonus shares can be issued from:
    1. Profits & loss account
    2. Share premium account
    3. General reserve account
    4. All of the above
  13. Capitalization of profits to company is made by:
    1. Issue of bonus shares
    2. Declaration of dividend
    3. Making capital reserve
    4. It is not possible
  14. Share premium is determined by:
    1. Company law board
    2. Company itself
    3. Government
    4. SEBI
  15. Excess of net assets over purchase consideration is called
    1. Goodwill
    2. Capital reserve
    3. Revenue reserve
    4. Secret reserve
  16. Accounting standard relating to accounting of amalgamation is:
    1. AS-2
    2. AS-10
    3. AS-13
    4. AS-14
  17. If net value of purchased assets is less than purchase considearion, then this amount will be:
    1. Profit
    2. Reserve
    3. Loss
    4. Goodwill
  18. The particulars of assets and liabilities of transfer company is as follows:   Fixed assets Rs. 2,50,000: Current assets Rs. 2,70,000: Current liabilities Rs. 2,00,000: reserve Rs. 25,000: share capital Rs. 2,95,000:  , Purchase consideration will be, if amalgamation is in the nature of merger:
    1. Rs. 3,20,000
    2. Rs. 5,20,000
    3. Rs. 2,50,000
    4. Rs. 2,95,000
  19. Given-assets purchased Rs. 18,00,0000: liability Rs. 1,40,000: purchase consideration Rs. 15,00,000, result will be:”
    1. Goodwill Rs. 1,60,000
    2. Capital Reserve Rs. 1,60,000
    3. Goodwill Rs. 3,0,000
    4. Capital Reserve Rs. 3,00,000
  20. The characteristic of internal reconstruction is:
    1. Liquidation of companies
    2. Liquidation of one company
    3. Change in capital structure
    4. Absorption
  21. Equity shareholders are:
    1. Customers of company
    2. Owners of company
    3. Creditors of company
    4. Bakers of company
  22. Shareholders receive:
    1. Interest
    2. Commission
    3. Divided
    4. Brokerage
  23. Share allotment account is:
    1. Personal account
    2. Real account
    3. Nominal account
    4. Profits & loss account
  24. Issue of shares at premium is:
    1. Abnormal profits
    2. Capital loss
    3. Abnormal profits or loss
    4. Capital receipt
  25. Issue of shares at discount is:
    1. Capital receipt
    2. Capital loss
    3. Abnormal profits
    4. Abnormal loss
  26. When shares are forfeited, the share capital account is debited with:
    1. Outstanding amount of calls
    2. Called up amount
    3. Paid up amount
    4. Outstanding amount
  27. Unpaid calls are:
    1. Added in capital
    2. Deducted from capital
    3. Deducted from profit
    4. Added in profit
  28. At the time of reissue of forfeited the balance of forfeited share money is transferred in :
    1. Share Discount account
    2. profit and loss account
    3. share forfeiture account
    4. unpaid calls account
  29. After reissue of forfeited shares the balance of forfeited share money is transferred in :
    1. Reserve fund
    2. Reserve capital
    3. Capital Reserve account
    4. Investment fluctuation fund


  30. In total amount of liability includes:
    1. Subscribed capital
    2. Issued capital
    3. Paid up capital
  31. The real amount of share capital is :
    1. Authorized capital
    2. issued capital
    3. paid up capital
    4. subscribed capital
  32. The amount of capital which is included n ‘capital clauses’ is called:
    1. Authorized capital
    2. Issued capital
    3. Subscribed capital
    4. Paid up capital
  33. The part of share capital, which can be called only at the time of liquidation, is called:
    1. Authorized capital
    2. Called up capital
    3. Capital reserve
    4. Reserve capital
  34. Equity capital Rs. 90,000; liabilities Rs. 60,000; profits of the year Rs. 20,000; total assets will be:
    1. Rs. 1,70,000
    2. Rs. 1,50,000
    3. Rs. 1,10,000
    4. Rs. 80,000
  35. If equity share of Rs. 100 is issued Rs. 120, is called:
    1. Issue at par
    2. Issue at premium
    3. Issue at discount
    4. None of the above
  36. Premium on redemption of debenture A/c is:
    1. Asset
    2. Liability
    3. Expense
    4. Revenue
  37. Debentures of Rs. 4,25,000 are issued by company against the purchse of assets of Rs. 4,50,000, it this case Rs. 25,000 will be/ supposed to be:
    1. a liability
    2. An expenses
    3. An asset
    4. A gain
  38. Loss on issue of debenture Account is
    1. A liability
    2. an expenses
    3. an asset
    4. a gain
  39. If debentures of Rs. 1,000 purchased for Rs. 980 by the company the difference of Rs. 20 will be assumed to be:
    1. Profits on redemption of debenture
    2. Loss on redemption of debenture
    3. Goodwill
    4. None of the above
  40. Calls paid in advance account is shown separately at the:
    1. Debit side of P/LA/c
    2. Credit side of P/LA/c
    3. Liability side of balance sheet
    4. Asset side of balance sheet
  41. Goodwill is:
    1. Current asset
    2. Fixed assets
    3. Artificial assets
    4. Intangible asset
  42. Method of depreciation on goodwill is:
    1. Fixed instalmant method
    2. Diminishing balance method
    3. Annulity method
    4. No depreciation
  43. Depreciation of goodwill is necessary:
    1. At the time of issue of shares
    2. On sale of company
    3. On liquidation of company
    4. At the time of forfeiture of shares
  44. A method of valuation of goodwill is:
    1. Net profits method
    2. Super profit method
    3. Operating method
    4. Capital reserve method
  45. The formula of normal profits:
    1. Average profit * normal rate/100
    2. Real average profit *  rate/100
    3. Average capital Employed* normal rate/100
    4. Super profit * normal rate/100
  46. Not included in capital employed
    1. Artificial assets
    2. Current assets
    3. Fixed assets
    4. Tangible assets
  47. average capital employed rupes 1,20,000 normal rate 10% , real average profit rupes 40,000 . superprofit will be
    1. 28000
    2. 12000
    3. 40000
    4. 52000
  48. Average capital employed Rs. 1,20,000; normal rate 10%, real average profit Rs. 40,000, super profit will be :
    1. Rs. 1,10,000
    2. Rs. 50,000
    3. Rs. 95,000
    4. Rs. 65,000
  49. At the time of calculating capital employed debentures shown in balance sheet should be :
    1. Deducted
    2. added
    3. no adjustment
    4. taken average
  50. Intrinsic value of shares is calculated:
    1. On the basic of profits
    2. On the basic of net market price
    3. Determined by speculators
  51. Valuation of shares is essential on:
    1. Amalgamation of company
    2. Absorption
    3. Reconstruction of company
    4. All of the above
  52. The balance sheet method of valuation of shares is known:
    1. Net assets method
    2. Asset valuation method
    3. Retained asset method
    4. All of the above
  53. The following assets is included in intrinsic value method:
    1. Preliminary expenses
    2. Patent
    3. Discount in debentures
    4. Goodwill
  54. For calculating net assets the liability which is deductible is:
    1. General reserve
    2. Borrowed capital
    3. Preference share capital
    4. Equity capital
  55. The formula of getting net assets will be:
    1. Total assets-total liabilities
    2. Total assets –external liabilities
    3. Realizable value of assets-external liabilities
    4. Book value of assets-current liabilities



  56. The external liability increased by Rs. 5,000. The effect on net asserts eill be:
    1. Increase by Rs. 5,000
    2. Decrease by Rs. 5,000
    3. No effect
    4. In addition to the above
  57. Given-fixed assets Rs. 3,000,000; current assets Rs. 1,50,000; current liabilities Rs. 50.000; debentures Rs. 1,50,000; reserve Rs. 20,000; net assets will be;
    1. Rs. 4,00,000
    2. Rs. 2,50,000
    3. Rs. 3,00,000
    4. Rs. 2,30,000
  58. When two or more existing companies go into liquidation and a net company is formed to take over their business, this activity is known as;
    1. Amalgamation
    2. Absorption
    3. Internal reconstruction
    4. None of the above
  59. 10,000 equity shares of Rs. 10 each were issued. application were received for Rs. 10,000 share. Amount of securities premium account will be;
    1. Rs. 20,000
    2. Rs. 24,000
    3. Rs. 4,000
    4. Rs. 1,600
  60. After dividing net assets by number of shares, the value of share is called;
    1. Cost price
    2. Book value
    3. Intrinsic value
    4. Market price
  61. The main object of amalgamation;
    1. To bring economy in expenses
    2. To facilitate distribution
    3. To eliminate completion
    4. All of the above
  62. When one company goes in liquidation and a new company is formed to take over the business of the company which goes in liquidation, this is called,
    1. Amalgamation
    2. Absorption
    3. External re construction
    4. Internal re construction
  63. In internal reconstruction;
    1. No company goes into liquidation
    2. Only the company goes into liquidation
    3. Two one companies are liquidated
    4. One or more companies go into liquidation
  64. If the net assets taken over by the company are less than the purchase consideration, the difference shall be treated as;
    1. Secret reserve
    2. Goodwill
    3. Capital reserve
    4. General reserve
  65. Holding company means;
    1. Which is the holder of an another company at least 51% shares
    2. Which is the holder of an another company at least 80% shares
    3. Other company controls on its board of directors
    4. All of the above
  66. Holding company has been defined in the following section of companies Act, 1956;
    1. Section 3
    2. Section 4
    3. Section 4 (4)
    4. Section 3 (4)
  67. Subsidiary company means;
    1. Which controls an another company
    2. Other company controls on its board of directors
    3. Other company is the holder of its 40% shares
    4. None of the above
  68. Subsidiary company has been defined in;
    1. Section 4 of companies Act, 1956
    2. Section 2 of income-tax Act, 1961
    3. Section 3 of companies Act, 1956
    4. None of the above
  69. A limited has purchased 55% shares of B limited, a limites;
    1. Has purchased B limited
    2. In holding company
    3. Is subsidiary company
  70. The provision of section 212 will not be applied on holding company, it is written in;
    1. Section 212 (7)
    2. Section 212 (8)
    3. Section 212 (211)
    4. Section 208
  71. Holding company and subsidiary company, hold their account books according to;
    1. Section 209
    2. Section 210
    3. Section 211
    4. Section 208
  72. This share of holding books according is Rs. 3,90,000 and the investment in shares of subsidiary company is Rs. 4,20,000. The difference is called;
    1. Goodwill Rs. 30,000
    2. Capital reserve Rs. 30,000
    3. Revenue profit Rs. 30,000
    4. None of the above
  73. H company is a holding and S company is a subsidiary. The stock of S company includes the goods of Rs. 20,000 which has been sold by H company at 10% profit on its selling price. Unrealized profit will be;
    1. Rs. 2,000
    2. Rs. 1,818
    3. Rs. 2,200
    4. Rs. 2,222
  74. Which part of unrealized profit is adjusted;
    1. Share of holding company
    2. Share of subsidiary company
    3. Whole amount
    4. No adjustment
  75. In creditors of holding company Rs. 12,500 is inclu8ded for such goods which has been purchased from subsidiary company and which has not been sold. The subsidiary company sends goods after adding 25% on its cost. The holding company purchased 3/4 shares of subsidiary company. The share of holding company is unrealized profit will be;
    1. Rs. 2,500
    2. Rs. 1,875
    3. Rs. 3,125
    4. Rs. 2,344
  76. According to accounting standard-11 the purchase consideration is called;
    1. Goodwill
    2. Capital reserve
    3. Revenue reserve
    4. Secret reserve
  77. Excess of net asserts over purchases consideration is called :
    1. goodwill]
    2. capital reserve
    3. revenue reserve
    4. secret reserve
  78. The meaning of absorption is;
    1. To absorb another company by existing company
    2. After liquidation of two companies making new company
    3. To improve economic situation by existing company
    4. To purchase an other company by a company
  79. Given;
    1. Subsidiary Co. accepted all the bills in favour of holding Co. from the holding Co. has discounted the bolls of Rs. 15,000. The doubtful bills or holding Co. are 40,000. The account of bills receivable in consolidated balance sheet will be.Rs. 70,000
      Particulars Holding Co. (Rs.) Subsidiary Co. (Rs.)
      Bills Receivale 45,000 25,000
      Bills Payable 75,000 55,000
    2. Rs. 45,000
    3. Rs. 30,000
    4. Rs. 55,000
  80. In above question 59 the amount of bills payable which will be shown in consolidated balance sheet;
    1. Rs. 1,30,000
    2. Rs. 90,000
    3. Rs. 1,15,000
    4. Rs. 1,10,000
  81. In the books of B limited, a Subsidiary company the value of land and building in the beginning of the year is Rs. 2,00,000. Holding company A limited purchased the shares in the beginning of the year and the valuation on this date was Rs. 3,00,000. The rate of depreciation is 10%. Profits on revaluation will be;
    1. Rs. 1,10,000
    2. Rs. 1,20,000
    3. Rs. 1,10,000
    4. No profits



  82. Holding company sold 1,000 shares @ Rs. 20 per share out of 3,000 shares which were purchased from subsidiary company at the cost of Rs. 48,000. Profits on sale will be;
    1. Rs. 10,000
    2. Rs. 20,000
    3. Rs. 28,000
    4. Rs. 4,000
  83. Indian companies act contains the provision regarding of managing directors remuneration in;
    1. Section 309
    2. Section 78
    3. Section 79
    4. Section 198
  84. Indian companies act contains the provision regarding of manger remuneration in;
    1. Section 309
    2. Section 78
    3. Section 79
    4. Section 387
  85. Profit post-incorporation is transferred to;
    1. General reserve
    2. Capital reserve
    3. Profit & loss account
    4. Trading account
  86. Profit pre-incorporation is transferred to;
    1. General reserve
    2. Capital reserve
    3. Profit & loss account
    4. Trading account
  87. Depreciation is allocated;
    1. On time ratio
    2. In sales ratio
    3. In equal ratio
    4. None of the above
  88. Gross profit is allocated:
    1. In time ratio
    2. In sales ratio
    3. In equal ratio
    4. None of the above
  89. Advertisement is allocated :
    1. in time ratio
    2. in sales ratio
    3. in equal ratio
    4. none of the above
  90. Debentureholder get;
    1. Divided
    2. Ownership
    3. Right according to article of association
    4. Fixed interest
  91. After the redemption of all debentures the balance of ‘debenture redemption fund account’ is transferred in;
    1. Debentures account
    2. Debentures investment account
    3. General reserve account
    4. Capital reserve account
  92. Discount in debentures should be written-off in;
    1. Five years
    2. Issue years
    3. Total period of debentures
    4. Redemption year
  93. Discount on debentures is;
    1. Appropriation of profits
    2. Effect on profits
    3. Effect on profits
    4. Provision
  94. Discount on issue of debentures A/c is;
    1. Capital loss
    2. General loss
    3. Trading loss
    4. Revenue loss
  95. 6,000 debentures of Rs. 10 each were redeemed by the issue of equity shares of Rs. 10 each at 20% premium. Number of issued shares will be;
    1. 50,000
    2. 60,000
    3. 5,000
    4. 6,000
  96. Debenture holder is;
    1. Debtor of company
    2. Owner of company
    3. Surety of company
    4. Creditor of company
  97. Debenture premium should be used;
    1. In writing-off revenue losses
    2. Ion distribution of divided
    3. In writing-off capital losses
    4. None of the above
  98. Premium on redemption of debentures account is;
    1. Personal account
    2. Real account
    3. Artificial account
    4. Loss account
  99. Redemption of debentures may be by;
    1. Purchasing in open market
    2. Changing in shares
    3. Changing in debentures
    4. All of the above
  100. Interest on debentures account is transferred in;
    1. Share premium account
    2. Profit & loss account
    3. General reserve account
    4. Balance sheet

** Answer Sheet

01. 3 02. 1 03. 4 04. 1 05. 4 06. 2 07. 4 08. 1 09. T 10. 2
11. 3 12. 4 13. 1 14. 2 15. 2 16. 4 17. 4 18. 1 19. 2 20. 3
21. 2 22. 3 23. 1 24. 4 25. 2 26. 2 27. 2 28. 3 29. 3 30. 3
31. 4 32. 1 33. 4 34 1 35. 2 36. 2 37. 1 38. 3 39. 1 40. 3
41. 4 42. 4 43. 2 44. 2 45. 3 46. 1 47. 1 48. 3 49. 1 50. 2
51. 4 52. 4 53. 4 54. 2 55. 3 56. 2 57. 2 58. 1 59. 1 60. 3
61. T 62. 3 63. 1 64. 2 65. 1 66. 3 67. 2 68. 1 69. 3 70. 2
71. 1 72. 1 73. 1 74. T 75. 2 76. 1 77. 2 78. 1 79. 3 80. 2
81. 1 82. 4 83. 1 84. 4 85. 3 86. 2 87. 1 88. 2 89. 2 90 4
91. 3 92 3 93. 2 94. 1 95. 3 96. 4 97 3 98 1 99 1 100 2



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