Commerce Guide

Sub: Audit & Assurance

Previous Year Questions Paper
9874469533

2019 (Honours) Question Paper

Group – A
1. Distinguish between Error and Fraud.
Or, What are the basic principles governing an audit?
2. State the importance of Auditor's independence.
Or, (a) What is balance sheet audit?
(b) How is it conducted?
3. What is analytical procedure in audit?

Group – B
4. (a) What do you mean by audit evidence?
(b) Discuss it’s importance.
(c) What are the various procedures of obtaining audit evidence?
Or, What essential steps are involved in conducting the audit of a hospital?
5. (a) What is internal audit?
(b) Is it compulsory for every company to have an internal audit system?
(c) State with references to the relevant SA to what extent should a statutory auditors rely upon internal audit.
6. As an auditor, how would you verify (any two) :
(a) Secured Loan
(b) Plant and Machinery
(c) Debtors
Or, How will you vouch the following (any two) :
(a) Income from Interest
(b) Cash Sales
(c) Travelling Expenses
7. State the various elements of Audit Report as per SA, 700.
Or, List the matters to be reported under CARO 2016.
8. Write short notes on (any two) :

1
(a) Social Audit

(b) Cost Audit

(c) Performance Audit

Group – C
9. (a) State the circumstances when an auditor of a company may be appointed by
(i) Board of Directors
(ii) Members of the company, and (iii) Central Government.
(b) State the qualification of a company auditor.
Or, How will you as a company auditor verify payment of dividend? SND Ltd. credited, the entire profit of ₹
10 Lacs on the sale of land not require for its use on 31.08.2019. The directors wish to purpose dividend out
of the above profit. – Comment

2019 (General) Question Paper

Group – A
1. What is an Audit? State the objectives of an Audit.
Or, Explain Auditor's duty regarding prevention of errors and frauds.
2. Distinguish between continuous audit and periodical audit.
Or, what is interim audit? State it’s advantages.
3. Define audit working papers. Who is owner of audit working paper?

Group – B
4. Explain audit of an undergraduate college.
Or, what do you mean by audit evidence? What are the sources of audit evidence? How are audit evidence
collected?
5. What is internal control system? State it’s advantages and disadvantages.
Or, Define internal audit. Distinguish between internal check system and internal audit.
6. What is vouching? State the essential factors to be considered for vouching. Or, As an auditor, how would
you verify the following? (Any two)
(a) Goodwill
(b) Inventory
(c) Secured Loan
(d) Investment
7. Write short notes on. (Any two)
(a) Tax audit
(b) Social Audit
(c) Environment audit
8. What do you mean by audit report? What are the different types of audit report?
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 Group – C
9.

Discuss the qualification and disqualification of a company auditor as per the Companies Act, 2013.
Or, Explain the provisions of the Companies Act, 2013 for declaration and payment of dividend.

2020 (Honours) Question Paper

Group – A (Any Four)
1. Define auditing. State objectives of independent financial audit.
2. Distinguish between audit and investigation.
3. What is audit programme? Discuss the advantages of conducting an audit according to a predetermined audit
programme.
4. What are audit working paper? What do you mean by ownership of working papers relating to audit?
5. “Vouching is the essence of auditing” Do you agree with this statement? Justify your view.
6. How will you verify the following (any two) :
(a) Goodwill
(b) Investment
(c) Trade Payables
7. What special steps are involved in conducting the audit of an Educational Institution?
8. Distinguish between Audit Report and Certificate.

Group – B (Any Two)

9. Write short notes on (any four) :
(a) Social Audit
(b) Environment Audit
(c) Propriety Audit
(d) Tax Audit
(e) Materiality Concept
10. Can dividend be paid:
(a) Out of capital profit?
(b) Out of current profit without making good past losses?

11. Discuss the significance of the term ‘True and Fair view' under the Companies Act, 2013. Discuss how far auditor's
duties have increased as it’s consequences.
12. Define Internal Control. State it’s objectives. Distinguish between Internal Control and Internal Audit.

2020 (General) Question Paper

3
 Group – A (Any Four)
1.
(a)
What do you mean by Auditor’s independence? (b) State the purposes of standards on auditing.
2. (a) Distinguish between vouching of transactions and verification of assets and liabilities. (b) How would you vouch
Travelling expenses?
3. State the provisions of the Companies Act, 2013 in respect of appointment and removal of an auditor.
4.What are the differences between Audit Report and Certificate?
5. (a) What are the objectives of internal control system?
(b) State to what extent a statutory auditor should rely on internal audit report?
6. What is an audit file? How many types of audit files are there? What are the documents maintained in different
types of audit files?
7. Compare between cost audit and management audit.
8. “An auditor is a watchdog, not a bloodhound” – Discuss.

Group – B (Any Two)

9. (a) State the basic principles governing an audit.
(b) Define an audit programme. State the advantages of a fixed audit programme.
10. State the contents of an Audit Report as per Companies Act, 2013 and the relevant standards on auditing.

11. (a) “Auditing is a dynamic social science “ – Discuss.

(b) Write short note on: (any one)

(i) Social audit
(ii) Tax audit
12. Prepare an audit programme of a hospital.

2021 (Honours) Question Paper

Group – A (Any Four)
1. Discuss the scope of the financial audit as per the relevant standard on auditing. What are the basic principles
governing the financial audit?
2. What are the means of doing fraud? Discuss the Auditor’s responsibility towards detection and prevention of fraud as
per the relevant standards on auditing.
3. What is audit evidence? State the procedure to obtain audit evidence.
4. What do you mean by the analytical procedure in the auditing? Discuss the tools and techniques of this procedure.
5. (a) What are the differences between verification and valuation of assets?
(b) ‘Verification forms an important part of the whole system of audit – Critically examine the statement.
6. How will you vouch the following items: (any two)
(a) Interest and dividend income from investment
(b) Travelling Expenses

4
(c) Research and Development Expenditure
7.

What steps will you take in conducting the audit of a hospital?

8. State the contents of Audit Report as per the relevant Standard on Auditing.

Group – B (Any Two)

9. Write short notes on: (any four)
(a) Cost Audit
(b) Performance Audit
(c) Management Audit
(d) True and fair view
(e) Substantive audit procedure.
10. (a) Can dividend be paid out of current profit without writing off fictitious assets?
(b) What are the provisions of the Companies Act, 2013 regarding depreciation to be provided in the accounts?
11. State the provisions of the Companies Act, 2013 regarding appointment and removal of a company auditor.
12. (a) What is internal audit? Can a statutory auditor rely on the internal audit report?
(b) What do you mean by audit risk? Discuss the different types of audit risk as per the relevant Standard on
Auditing.

2021 (General) Question Paper

Group – A (Any Four)
1. Define auditing? State the basic principles governing an audit.
2. Distinguish between statutory and non-statutory audit.
3. Discuss the provisions of the Companies Act, 2013 regarding remuneration of Auditor.
4. Distinguish between internal check and internal audit.
5. What is audit note book? State the significance of audit planning.
6. How will you verify the following? (Any two)
(a) Goodwill
(b) Investment
(c) Plant and Machinery
7. (a) What is meant by Audit Report?
(b) Give a specimen of qualified audit report.
8. (a) Write a short note on Standards on Auditing.
(b) Explain the concept ‘True and Fair view'.

Group – B (Any Two)

9. Write short notes on: (any four)
(a) Social audit
5
(b) Environment audit
(c)

Tax audit
(d) Materiality concept
(e) Auditing in depth
10. (a) State the provisions of the Companies Act, 2013 regarding depreciation of the asset.
(b) Discuss the qualification and disqualification of a company auditor.
11. Explain the various steps, which are involved in conducting the audit of a Higher Educational Institution.
12. (a) Distinguish between vouching and routine checking.
(b) What is audit risk? State it’s different types.
(c) State the auditor's duty towards detection and prevention of fraud and error.

2022

AUDITING AND ASSURANCE

HONOURS

Group - A

1. Discuss the objectives of independent financial audit.

Or,

(a) What do you mean by auditor's independence?

(b) Discuss the significance of auditor's independence in the statutory audit.

2. Distinguish between audit and investigation.

3. What is Audit Note Book? State its importance.

Or,

Documentation of audit plan serves as an important record of audit. Why is it so important?

Group - B

4. What is test checking? What precautions will you take as an auditor before undertaking test checking?

Or,

Discuss the essential steps involved in conducting the audit of a Hotel.

5. What do you mean by internal control? Distinguish between internal control and internal audit.

6
 6.

“In vouching payments, the auditor does not merely seek proof that money has been paid away." - Critically
examine the statement.

Or,

How will you verify the following items of the balance sheet (any two)?

(a) Investments (b) Secured Loan (c) Goodwill.

7. (a) State the reporting responsibility of the statutory auditor in respect of the following clause under
paragraph 3 of Companies (Auditor's Report) Order, 2020 (CARO, 2020):

Clause (i) Property, Plant and Equipment and Clause (vii) Deposit of Statutory dues.

(b) Discuss the significance of the term 'True and Fair View' as per Companies Act, 2013.

Or,

Explain the concept of materiality and the guiding factors to determine the materiality of an item.

8. Write short notes on any two:

(a) Tax Audit

(b) Social Audit

(c) Propriety Audit.

Group - C

9. (a) What is joint audit? Discuss the principles to be followed in joint audit in respect of division of work
among the joint auditors as per the relevant standard on auditing.

(b) Can a company pay dividend out of capital profit? Explain with reference to the relevant legal decision.

Or,

(a) What do you mean by unclaimed dividend? How is it treated in accounts?

(b) Discuss the provisions of the Companies Act, 2013 regarding unclaimed dividend.

2022

AUDITING AND ASSURANCE GENERAL

Group - A

1. Auditing is a dynamic social science. - Discuss.

Or,

State the objectives of financial audit.

7
 2.

Distinguish between Internal Audit and Interim Audit.

Or.

What do you mean by SA? State its purpose.

3. Write short note on audit notebook.

Group - B

4. Prepare an Audit Programme of a hospital.

Or.

What do you mean by Audit Evidence? What are the sources of it? How is Audit Evidence collected?

5. Compare among Internal Check System, Internal Control System and Internal Audit.

6. How will an auditor vouch the following items (any two)?

(a) Interest received

(b) Travelling expenses

(c) Sale of fixed assets.

Or,

How will an auditor verify the following items (any two)?

(a) Copyright

(b) Inventories

(c) Secured loan.

7. Describe different types of Audit Report.

8. What is Cost Audit? What are its objectives? Is it compulsory in India?

Or,

8
 Write short notes on Propriety Audit and Performance Audit.

Group - C

9. How is a Statutory Auditor appointed?

Or,

(a) Discuss the provisions of the Companies Act, 2013 regarding declaration and payment of dividend.

(b) Can dividend be paid out of Capital Profit?

(5th Sm.)-Auditing and Assurance-

CBCS
2023
AUDITING AND ASSURANCE HONOURS
Paper: CC-5.1Ch
Full Marks: 80
The figures in the margin indicate full marks.
Candidates are required to give their answers in their own words
as far as practicable.
Group - A
1. State the basic principles governing an audit as per SA-200. 5
Or,
(a) What are Standards on Auditing? 2+3
(b) State the purpose of Standard on Auditing. 5
2. Distinguish between Fraud and Error. 5
3. What is Audit file? State different types of Audit file. 2+3

Or,
Explain the concept of 'auditing in depth' and its advantages. 5

Group - B
4. Discuss the essential steps involved in conducting the audit of a hospital. 10
Or,
What is Analytical procedure? Explain briefly the tools and techniques of analytical procedure as per SA
520. 3+7
5. (a) What do you mean by Audit risk?
(b) Mention different types of Audit risk.
(c) Distinguish between internal check and internal Audit. 3+3+4
6. How will you verify the following items of the balance sheet (any two)? 5×2
(a) Trade Payables

9
(b) Inventory
(c)

Plant and Machinery.

Or.
(a) "Vouching is the essence of audit."- Discuss.
(b) Mention the steps to be considered for vouching of Travelling expenses' of a company. 5+5
7. (a) Mention the essential features of a good audit report.
(b) Explain Report with Disclaimer' with an example. 5+5
Or,
(a) What is Auditor's certificate?
(b) Distinguish between auditor's certificate and audit report. 3+7
8. Write short notes on any two: 5×2
(a) Cost Audit
(b) Environment Audit
(c) Management Audit.

Group - C
9. (a) Discuss the rights and duties of a company auditor.

(b) How is an auditor of a company appointed in case of casual vacancy? 10+5

Or,
(a) State the provisions of the Companies Act, 2013, regarding appointment of a company auditor.
(b) Can dividend be paid without writing off past losses? 10+5

2023
General
Group A (3 Questions of 5 Marks each)
(2 Questions with Alternative):
Question 1: concept, need and purpose of audit

“Auditing is accounting control” – Discuss

Or

Distinguish between Continuous Audit and Periodical Audit with examples.

Question 2: Concept, need and purpose of audit

What do you mean by auditing in depth? What are the advantages of auditing in depth?

Or

Write a short note on Audit Memorandum.

Question 3: Audit procedures and techniques

“Detecting and Prevention of Errors and Frauds are important objectives of audit” – Discuss.

Group B (5 Questions of 10 Marks each)

(3 Questions with Alternative):
Question 4: Audit procedures and techniques (With Option)

Prepare an Audit Programme of a private school.

Question 5: [ Vouching, verification and valuation]:

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How would you vouch the following items as an auditor (any two)?

(a) Collection from Debtors

(b) Cash purchase
(c) Advertisement expenses.

Or

How would you verify the following items as an auditor(any two)?

(a) Goodwill
(b) Cash and Bank balances
(c) Trade payables

Question 6 [Audit report and certificate]:

What do you mean by Auditor’s report? How does an auditor’s report differ from auditor’s certificate?

Or

What is a qualified report? Under what circumstances an auditor issues a qualified report? How does a
qualified report differ from an unqualified report?

Question 7 [ Other thrust areas]:

Write short notes on (any two)

(a) Tax audit
(b) Social audit
(c) Environment audit.

Or

What do you mean by management audit? What are the objectives of Management audit? What are the
advantages of Management audit?

Question 8 [Internal Audit]:

What is Internal Audit? Can a Statutory Auditor rely upon the report prepared by an Internal Audit?

Group – C (1 Question of 15 marks)

(1 Question with alternative)

Question 9 [company Audit]:

(a) What are divisible profits? What are the duties of an auditor regarding payment of dividend by a company?
(b) Can dividend be paid out of profit prior to incorporation?

PREVIOUS YEAR QUESTION PAPER (SEMESTER WISE)

TAXATION - 2

GENERAL

C. U. - 2019 Paper: DSE5.1 A

11
 FullMarks: 80

[Direct Tax]

(Marks : 40)

Group - A

1.(a)Mention the due date of submission of return of income by an individual whose total income of
Rs.5,00,000 includes income from salary and bank interest only. Which return form is applicable for him?

(b) When an assessee is liable to pay interest u/s 234B? (2+1)+2

Or,

Discuss the provisions of the Income Tax Act relating as deduction of tax at source from salary.
(5)

2.(a)Write a short note on Belated Return.

(b) Can a belated return be revised? (4+1)

Or,

(a) Write a short note on Permanent Account Number (PAN).

(b) Mention any two transactions where quoting if PAN is compulsory. (3+2)

3. The following particulars are furnished by Mr. Rohit Agarwal for the financial year 2023-24:

(i) Due date of filing return 31.07.2024

(ii) Date of filing return 01.12.2024

(iii) Tax payable on assessed income of Rs.8,00,000 Rs.75,000

(v) Advance tax paid Rs.15,000

(iv) Tax deducted at source Rs.40,000

Compute interest and fee payable u/s 234A and 234F. (5)

Group – B

4. Mr. Sen furnished the following information for the previous year 2023-24:

Rs.

Income from Salary 8,65,000

Income from House property 2,35,000

Income from bank fixed deposits 25,000

Deduction u/s 80C 1,50,000

Deduction u/s 80D 20,000

Tax deducted at source 65,000

Compute the advance tax payable by Mr. Sen and also compute the amount of advance tax payable along with
the due dates of payment of instalment. (10)

Or,

Write short notes:

(a) Best Judgement Assessment

12
(b) Revised Return. (6+4)

Group – C

5. Mrs. Susoma Manna (age 45 years), a resident individual of India, furnishes the following details of her
incomes, investments and payments during the previous year 2023-24. Compute her total income and tax
payable for the assessment year 2024-25.

(i) Gross salary ₹12,00,000 (Professional tax paid ₹2,000).

(ii) Income from business ₹2,00,000

(iii) Long-term capital gain on sale of building ₹1,25,000

(iv) Short-term capital gain on sale of jewellery ₹25,000

(v) Winning from lottery (net) ₹70,000 (TDS @30%)

(vi) She deposited ₹60,000 to Public Provident Fund during the previous year.

(vii) She paid ₹13,000 by cheque for medical insurance policy on her own health.

(viii) Donated ₹10,000 to Prime Minister's National Relief Fund.

(ix) She paid ₹25,000 for premium on life insurance policy (sum assured ₹5,00,000 taken on 01.10.2019) on
her own life.

(x) She resides in a house which was purchased by her on 01.01.2020 by taking a loan from SBI. During the
previous year, she repaid ₹2,00,000 (of which ₹1,00,000 is for principal repayment).
(15)

Or,

Subhajit and Sutirtha are partners in a firm which is assessed as firm. They share profits and losses equally.
The firm’s Profit and Loss Account for the year ended 31.03.2024 is given below:

Particulars ₹ Particulars ₹

To Office expenses 35000 By Gross Profit 285000

To Provision for doubtful By Bank Interest from
debt 5000 fixed deposits 40000
To Depreciation 30000
To Salary to partners:
Subhajit 100000
Sutirtha 90000
To Interest on partners
Capital @ 15% p.a.
Subhajit 30000
Sutirtha 15000
To Net Profit
Subhajit 10000
Sutirtha 10000

32500
325000 0

13
Other Information:

(i)

Office expenses include penalty paid to customs authority ₹10000

(ii) Depreciation as per Income Tax rule ₹24000.

(iii) Income from other sources of Subhajit and Sutirtha are ₹15000 and ₹10000 respectively.

You are required to compute the assessment year 2024-25:

(a) Book Profit of firm;

(b) Total income of firm; and

(c) Tax liability for the firm. (15)

Indirect Tax

Group-D

6. (a) Mention any two objectives of GST.

(b) Mention any three taxes that are not subsumed or merged with GST. (2+3)

Or,

Define the following as per Central Goods and Service Tax Act:

(a) Aggregate Turnover

(b) Input tax and Output tax. (3+2)

7. (a) What is Mixed supply?

(b) From the following information, determine the time of supply of goods:

Date of removal of goods: 23.03.2023

Date of issue of invoice: 20.03.2023

Date of payment entered in the books of accounts: 28.03.2023

Date of credit in Bank Accounts: 31.03.2023 (3+2)

8. Mention the components that are included in the value of supply of good. (5)

Or,

Write short notes on:

(a) Supply
1 1
(b) Composite supply. 2 +2
2 2

9. What do you mean by 'Forward Charge' and 'Reverse Charge'? Discuss with examples. (5)

Group – E

10. (a) From the following information, compute GST payable for the month of June, 2023:

(i) Input tax available for credit for the month of June 2023: IGST Rs.1,50,000; CGST Rs.90,000; SGST
Rs.70,000

(ii) Output tax payable for the said month: IGST Rs.1,30,000; CGST Rs.1,00,000; SGST Rs.90,000.

(b) In December 2023, X of Kolkata sold goods worth Rs. 1,00,000 (excluding GST) to Y of Durgapur. X
purchased the goods for Rs.82,600 (including GST) from Z of Kolkata. In case of both Purchases and Sales

14
 CGST is 9% and SGST is 9%.

You are required to compute:

(i) Output tax;

(ii) Input tax;

(iii) Net GST payable. (5+5)

Or,

(a) What do you mean by Composition Scheme?

(b) State the rates of tax in case of Composition Scheme.

(c) How will you determine the aggregate turnover in case of composition scheme?

(d) Mention the date for payment of GST in case of registered person under composition scheme and not under
composition scheme.

11. (a) From the following information determine assessable value:

(i) FOB value of goods Rs.30,00,000

(ii) Freight from importing country to India (by air) Rs.3,00,000

(iii) Insurance information not available

(b) Write short note on Ant-Dumping duty. (5+5)

TAXATION II- HONOURS

C.U.-2019

Paper: CC 5.2 Ch

Full Marks: 80

Direct Tax

GROUP - A

1. (a) What is PAN (Permanent Account Number)?

(b) State whether quoting PAN is mandatory in the following cases

(i)To open a DMAT Account

(ii)To purchase a Car.

(c) State the due dates for filing of return by an individual assessee. (1+2+2)

2 (a) Write short note on revised return.

(b) Can a belated return of income filed u/s 139(4) be revised? (4+1)

Or,

Tax payable on total income of Mr. Das as declared in the return for the assessment year 2024-25 is Rs.2,47,300.
He paid advance tax of Rs.30,200 during the previous year 2023-24. Tax of Rs.12,400 has been deducted at source.
Interest u/s 234A, 234B and 234C calculated as per provisions of the Act amounted to Rs.10,400, Rs.15,900 and
15
Rs.8,700 respectively.

Calculate self-assessment tax payable by Mr. Das u/s 140A.

3. Mr. Prabir Biswas is working in ITC Ltd. furnishes the following estimate for the PY 2023- 24. Compute tax to be
deducted at source per month by ITC Ltd.

Taxable Salary Rs. 14,00,000

Repayment of Interest on Loan taken for construction of self-occupied House Property Rs.50,000

Investment in PPF Rs.1,00,000. (5)

Or,

Write a short note on Best Judgement Assessment. (5)

Group - B

4. The estimated income of Shri Mukul Ghosh a resident individual (age 55 years) for the P. Y 2023-24 are as
follows:

Income from let out House Property Rs.42,500

Income from business Rs.5,45,000

Income from other sources Rs.1,25,500

He is entitled to a deduction u/s 80C for Rs.51,500 and u/s 80G Rs.7,500. Tax deductible at source is Rs.7,330.

Calculate the amount of advance tax payable by Sri Mukul Ghosh showing details of all instalments along with due
dates. (10)

Or,

(a) Kausik filed his return of income for A.Y. 2024-25 on 08.10.24 (Due date of submission of return 31.07.24)
showing income of Rs.9,50,000.

Compute amount of interest and fees payable by Kaushik for delayed submission of return.
(2+2)

(b) During the P Y 2023-24 Mr. Rajput Singh has paid advance tax of Rs.15,200. He has submitted his return of
income tax for the said year on June 15, 2024 showing total income of Rs.6,40,000. During this year tax of
Rs.3,500 has been deducted at source. If assessment is completed on Dec 13, 2024, calculate the amount of
interest payable u/s 234B. (6)

GROUP - C

5. Mr. Tamang, a resident in India (age 32 years) has joined as State Government employee on April 8, 2018. He
furnished the following particulars for the year ended March 31, 2024.

(a) Basic Salary ₹2,49,000

(b) Dearness allowance (not forming part of salary) ₹1,49,400

(c) Other taxable allowances ₹1,44,000

(d) He owns a house at Darjeeling which is let out at monthly rent of ₹18,000 per month. Municipal value of the
house is ₹2,00,000. Repairing expenses of ₹28,000 are incurred during the year. Municipal tax is paid @10% of
municipal value. The house remains vacant for 2 months during the year.

(e) He sold an urban land on January 20, 2024 for ₹18,40,000, which has been purchased on July 25, 2022 for
₹9,70,000.

16
(f) He has earned savings bank interest of ₹9,200, interest from fixed deposits with bank ₹37,300 and lottery income

₹42,000 (net of tax @30%).

(g) He has paid medical insurance premium as follows:

On his own health ₹15,700, on his wife's health ₹20,300, on his father's health (father's age 84 years) ₹42,250.

(h) He paid life insurance premium on his own life taken on 01.08.20 ₹18,000 (Policy value ₹1,50,000).

(i) He has deposited ₹55,000 to PPF and his contribution to R.P.F. ₹15,000.

(j) He donated ₹10,000 to PM's National Relief Fund.

Compute his total income and tax liability for the assessment year 2024-25. (15)

Or,

The profit and loss account of the firm of M/s P and Q sharing profits and losses in the ratio of 3:2 for the previous year ending
31st March, 2024 is given below:

Particulars Rs. Particulars Rs.

To Cost pf goods sold 436000 By Sales 760000

By Interest of
To Remuneration to employees 126000 drawings:

To Remuneration to partners 240000 P 8000

Top Other expenses 88000 Q 8000
To Depreciation 10000 By Interest (gross) 24000
To Interest to partners @ 16% By Long-term capital
P.A. gain 152000
P 16000
Q 16000
To Net Profit 20000

952000 952000

Additional information:
(a) The firm satisfies all the conditions u/s 184 and 40(b).
(b) Other expenses include the following:
(i)₹24000 paid in cash to a supplier who refused to accept payment by cheque.
(ii)Donation to recognised charitable institution ₹6000 and to a recognised political Party ₹12000
(iii)Depreciation as per IT rules ₹15000
(c) Long term capital gain represents gain on sale of land and computed as per provision of IT Act.
(d) Other oncomes of the partners- P: ₹88000; Q: ₹68800.
You are required to compute for the assessment year 2024-2025:
(i)Total income of the firm
(ii)Tax liability of the firm. (10+5)

Indirect Tax

Group - D

17
6. Distinguish between Direct Tax and Indirect Tax. (5)

Or,

What are the objectives of GST? (5)

7. (a) What is a taxable event in GST?

(b) Write a short note on mixed supply and its taxability. (2+3)

8. Write short note on reverse charge under GST. (5)

Or,

State the provisions relating to Time of supply' of goods in case of forward charge and calculate time of supply from
the information given below: (2+3)

Barun, a registered person, supplied certain goods to Tarun. Following are the details available for a transaction:

Date of removal of goods 15.03.2023

Date of issue of invoice 18.03.2023

Date of payment entered in the books of accounts 25.03.2023

Date of credit in bank account 28.03.2023

9. From the following information compute the value of taxable supply:

Rs.

List price of Goods 1,00,000

Cost of Primary Packing (not included in selling price) 1,000

Cost of packing at buyer’s request (not included in selling 500

price)
2,000
Subsidy received from Government of West Bengal
100
Trade discount actually allowed shown separately in
invoice
1 1
Sale price excludes CGST @ 2 % and SGST @ 2 %.
2 2

Group – E

10. (a) What do you mean by Composition Scheme?

(b) Mention any four cases where a person is not eligible to opt for composition scheme.

(c) How will you determine Aggregate Turnover for the purpose of composition scheme?

(2+4+4)

Or,

Mr. Susanta Chakraborty a GST registered dealer of West Bengal, furnishes the following particulars for the month
of July 2023.

Compute:

(a) Amount of Input Tax Credit available to Sri Chakraborty for the month of July 2023

(b) Amount of GST payable by him.

Input Tax Credit balance in Electronic Credit Ledger on 01.07.2023:

(₹)
18
IGST 2,66,500

CGST 55,000

SGST 48,000

Details of outward supply-

Inter state (inclusive of GST) 24,19,000

Intra state (inclusive of GST) 40,71,000

Details of inward supply-

Inter state (exclusive of GST) 6,50,000

Intra state (exclusive of GST) 15,20,000

Rate of IGST 18%, CGST - 9% and SGST - 9%. (4 +6)

11. Mr. S. Chowdhury imported goods from USA. Value of the goods $10,000. Freight paid (air) $2,500. Insurance
charges are actually paid but details are not available.

- Design and Development charges paid outside India $500

- Transportation charges from Indian airport to factory ₹5,000

Date of presentation of Bill of Entry: 24.02.2022

BCD on that date is 20% and exchange rate notified by CBIC is US $1 = 71.

Date of entry inward: 03.03.2023. BCD on that date is 18% and exchange rate notified by CBIC is US $1 = 69.

IGST is 12% and social welfare surcharge is 10%.

Compute the Assessable Value and Customs Duty payable by Mr. Chowdhury.

2020

TAXATION-II (GENERAL)

Paper: CC-5.2 Cg

[Direct Tax]

[Marks: 40]

Group - A

Answer any two Questions.

1. (a) Who is liable to pay 'advance tax'?

(b) From the following information, compute the amount of advance tax payable by Mr. Rohit Sharma on specified
dates as per Income Tax Act for the assessment year 2024-25:

Tax payable (including Health and Education Cess) ₹ 40,560

Tax deducted at source:

Situation- I Rs.35,000

Situation- II Rs.20,560
2+8

2. (a) Write a short note on defective return.

(b) Write a short note on Best Judgement Assessment. 5+5

3. (a) From the following information, calculate Interest Payable U/S 234A:
19
Due date of submission of return 31.07.2024

Return actually submitted 15.09.2024

Tax payable Rs.85,000

Tax deducted at source Rs.37,000

(b) Write a short note on interest payable U/S 234B. 5+5

4. (a) Discuss the provisions of the Income Tax Act regarding 'Fees' for default in furnishing return of income under
section 234F.

(b) Explain the provisions of the Income Tax Act relating to deduction of tax at source (TDS) from salary.
4+6

GROUP – B

Answer any one Question.

5. Smt. Bijeta Mali (Age 58 years.), a resident individual of India, furnished the following details of her income
during the previous year 2023-24. Compute her total income and tax payable for the assessment year 2024-25.

(a) Gross salary ₹15,00,000.

(b) Professional tax paid @ ₹200 per month.

(c) Long term capital gain on sale of building ₹1,00,000.

(d) Received dividend from an Indian company ₹10,000.

(e) Received interest from Savings Bank Account ₹5,000.

(f) Deposited ₹1,00,000 to Public Provident Fund.

(g) Paid life insurance premium on her life ₹25,000 (taken on 01.01.2020, sum assured ₹5,00,000).

(h) Paid medical insurance premium by cheque on her own health ₹10,000.

(i) Donated ₹10,000 to National Defence Fund.

(j) Repaid home loan taken from SBI ₹2,50,000 (of which ₹52,400 is for principal repayment).
15+5

6. X, Y and Z are partners in a firm which is assessed as a firm. They share profit and losses in the ratio of 3:2:1.
The firm's Profit and Loss Account for the year ended 31.03.2024 is given below:

Particulars ₹ Particulars ₹

To Salary to partners: By Gross Profit b/d 500000

By Interest on Bank
X 100000 deposits 70000
Y 60000
Z 40000 200000

To Interest on partner's
Capital @ 15% p.a.
X 30000
Y 20000
Z 10000 60000

20
 To Depreciation 220000
To Sundry expenses 50000
To Net Profit 40000

570000 570000
Other information:

(a) Depreciation as per IT rules ₹2,30,000.

(b) Sundry expenses include fines of ₹ 7,000 paid to custom authority.

For the assessment year 2024-25 compute.

(i) Total income of the firm.

(ii) Tax liability of the firm. 17+3

[Indirect Tax]

(Marks: 40)

Group - C

Answer any four questions.

7. (a) Mention any two features of G.S.T.

(b) Mention any three taxes that are subsumed in GST.

(c) Define as per Central Goods and Service Tax Act:

(i) Goods

(ii) Services. 2+3+ (2+3)

8. (a) What is the 'taxable event' under the GST?

(b) Who is a 'Taxable Person' under GST?

(c) Mention two indirect taxes not subsumed in GST.

d) Explain the concept of composite supply. 2+3+2+3

9. (a) Write short notes on Supply as per CGST Act.

(b) What is reverse charge?

(c) What do you mean by mixed supply? 5+2+3

10. From the following information, compute GST payable for the month of June 2023:

(a) Input tax credit available for the month of June 2023:

IGST ₹ 1,80,000; CGST ₹ 1,20,000; SGST₹1,25,000.

(b) Output tax payable for the said month:

IGST ₹ 1,45,000; CGST ₹ 1,40,000; SGST ₹ 1,50,000. 10

11. (a) X, a registered dealer in Mumbai, purchases goods from certain dealers in Mumbai for an amount of
Rs.2,50,000 (exclusive of GST) and sells goods within Mumbai for Rs.4,42,500 (inclusive of GST) in June 2023.
Calculate the GST payable by X for the month of June 2023. Assume GST rate is 18%.

(b) Write short notes as per CGST Act on:

21
(i) Capital goods

(ii)

Input tax credit. 5+ (2+3)

12. (a) State the provisions in respect of time of supply of goods under forward charges.

(b) Mention any two cases where a person is not eligible to opt for composition scheme. 8+2

13. (a) Define 'Goods' according to Customs Act.

(b) Mention any two duties as provided in the Customs Act.

(c) What do you mean by 'Territorial Waters'? 5+2+3

14. (a) Write short note on safeguard duty.

(b) Determine the assessable value from the following information:

(i) Price charged by the Exporter (FOB) Rs.12,00,000

(ii) Freight from importing country France to India by air Rs.3,00,000

(iii) Insurance Rs.60,000

(iv) Commission paid to a local agent in India Rs.10,000 5+2+3

2020

TAXATION - II (HONOURS)

Paper: CC-5.2 Ch

[Direct Tax]

[Marks: 40]

Group - A

Answer any two Questions.

1. (a) What is belated return? What is the time limit for submitting a belated return?

(b) State the relevant provisions of scrutiny assessment.

2. From the following information compute interest payable u/s 234A:

Due date of filing return 31.07.2024

Date of filing return 25.12.2024

Tax on assessed income ₹80,000

Advance Tax paid ₹30,000

Self assessment tax paid on 20.12.2024 ₹10,000 10

22
3. Write short notes on (any two): 5*2

(a) PAN

(b) Revised Return

(c) TDS on winning from horse races

(d) Best Judgement Assessment.

4. The estimated income of Mr. Gourab Ghosh (Age 51 years) during the previous year 2023-24 is as under:

Business income Rs. 7,99,750

Loss from self-occupied house Rs.16,000

Income from other sources Rs.27,500

As in last year, expected savings in PPF is Rs.12,000. Tax deductible at source is estimated to be Rs.15,350.

Compute the advance tax and the instalments payable on different dates. 10

Group - B

Answer any one question.

5. Sri D. Banerjee furnished the following information for the P.Y. 2023-2024 : `.

Income from Salary (Gross) ₹6,02,400

Professional tax deducted by employer from salary ₹2,400

Income from house property ₹1,40,000

Short term capital loss on sale of gold ₹15,000

Long term capital gain on sale of land ₹40,000

Interest on Bank Deposit ₹25,000 (including interest on savings bank of ₹ 8,000) Dividend from an Indian company
₹10,000

Received from lottery (after TDS @ 31.2%) ₹69,800

He made the following payments:

(a) Life Insurance Premium on own life ₹25,000 (Sum assured ₹ 2,00,000 taken on 15.10.2019)

(b) Deposit in PPF ₹ 1,40,000

(c) Own contribution to RPF ₹ 20,000

(d) Medical Insurance Premium on own health ₹ 10,000 and on the health of spouse ₹ 8,000 paid by cheque.

(e) Donation to P.M’s National Relief Fund ₹20,000.

Compute his total income and tax payable for the A.Y. 2024 - 2025. 15+5

6. P and Q are partners of a firm sharing profits and losses in the ratio of 3:2. The firm satisfies all the conditions of
section 184 and 40(b). The profit and loss account of the firm for the year ended March 31, 2024 shows net profit of
₹19,28,000.

Debit items include the following:

(a) Interest on Partners' capital @20% p.a.: P ₹48,000, Q ₹40,000

(b) Partners' Remuneration: P ₹2,60,000; Q ₹3,36,000.

(c) Donation to an approved charitable institution ₹8,800.

23
(d) Office expenses ₹50,000.

(e)

Depreciation ₹55,000.

Credit items include the following:

(i) Interest on partners' drawings: P ₹5,480; Q ₹4,000

(ii) Long term capital gain on sale of land calculated as per section 48 ₹94,280

Other information:

(1) Depreciation as per IT rules ₹60,000

(2) Office expenses include fines paid to customs authorities ₹10,000.

Compute total income and tax liability of the firm for the assessment year 2024-25. 16+4

[Indirect Tax]

(Marks: 40)

Group – C

Answer any four Questions.

7. (a) Mention five indirect taxes which have been subsumed in GST.

(b) Write short notes on:

(i) Taxable person

(ii) Turnover in State and Union territory. 5+(2+3)

8. (a) A dealer sold detergent along with bucket. The taxable value of the supply is ₹1,20,000. The rate of CGST and
SGST on detergent is 9% in each case and that on the bucket is 14% in each case. Compute CGST and SGST
payable.

(b) Mr. P, a GST registered dealer supplied the following information for the month of September, 2022:

(i) Input Tax credit balance as on 01.09.2023

IGST ₹ 3,20,000

CGST ₹ 30,000

SGST ₹ 30,000

(ii) Output GST payable as per Electronic liability register:

IGST ₹ 1,80,000

CGST ₹ 60,000

SGST ₹ 60,000

Compute GST payable and ITC to be carried forward. 4+6

9. (a) What do you mean by Composition Scheme?

(b) Who can opt for Composition Scheme?

(c) State the items to be included in the value of supply of goods under transaction value. 3+2+5

10. (a) Distinguish between Composite and Mixed Supply.

(b) Determine whether the following supplies amount to composite supplies-

(i) A hotel provides 3 nights - 4 days package wherein the facility of breakfast and dinner is provided along with the
room accommodation.
24
(ii) A toothpaste company has offered the scheme of free toothbrush of 15 along with the toothpaste tube of 100.

6+2+2

11. (a) What is exempt supply? How it differs from zero rated supply?

(b) Explain the meaning of 'Taxable supply' and 'Non-taxable supply'. (2 +4)+(2+2)

12. (a) Ascertain Point of taxation in the following cases –

Nature of supply Goods delivered Date of Invoice Date of Payment

Goods 10.02.2023 08.02.2023 15.03.2023

Goods 10.04.2023 10.04.2023 02.02.2023

Goods 10.04.2023 12.04.2023 05.05.2023

(b) How the time of supply determined when GST payable on supply of goods under 'reverse charge' mechanism?
6+4

13. Write short notes on (any two):

(a) Protective Duty

(b) Safeguard Duty

(c) Anti-Dumping Duty.

14. XYZ Ltd. imported certain machinery from Japan. From the following information determine assessable value of
imported machinery;

FOB value of machine YEN 5,00,000

Freight from importing country to India (by Air) YEN 50,000

Freight from airport to factory in Tamilnadu ₹ 75,000

Insurance YEN 50,000

Designing charges paid in Japan YEN 75,000

Landing charges 1% of CIF value

Commission paid to Indian agent (payable in Re.) 5% of FOB

Exchange rate notified by CBIC is 1 YEN = Re. 0.50 10

2021

TAXATION-II.

GENERAL

Paper: DSE-5.1A Full Marks: 80

Candidates are required to give their answers in their own words as far as practicable.

[English Version]

The figures in the margin indicate full marks.

[Direct Tax ]

(Marks: 40)

Group. A
25
Answer any two questions.

1. (a) Mr. Arijit Roy, an individual, earns Income from Salary and ‘Income from other sources' totalling ₹ 16,00,000
during the previous year 2023-24. You are asked to answer the following questions:

(i) In which 'Form' he is required to file his return of income?

(ii) What is the due date of filing of his return of income?

(iii) If his taxable income is ₹ 6,00,000 and he can not file his return of income within the due date, then how much
"Fees" will have to be paid by him?

(b) Explain the provisions of the Income Tax Act relating to deduction of tax at source (TDS) from interest on
securities. (1+2+2)+5

2. Write short notes on (any two) : 5x2

(a) Revised Return

(b) PAN

(c) Scrutiny assessment

(d)Belated Return.

3. (a) From the following information, Compute the amount of advance tax payable by Mr. Ganguly on specified
dates as per Income Tax Act for the Assessment Year 2024-25.

Gross Salary ₹ 6,50,000

Income from other sources ₹ 60,000

Deduction U/S 80C ₹ 1,50,000

Tax deducted at source ₹ 12,000

(b) Mention any two cases where quotation of PAN is necessary.

4. (a) From the following information, calculate interest payable U/S 234A:

Due date of submission of return 31.07.2024

Return actually submitted on 15.10.2024 Tax payable ₹ 1,54,600

Tax deducted at source ₹ 1,12,300.

(b) Write short note on interest payable U/S 234C.

Group. B

Answer any one question.

5. Mr. Abdul Majid (age 50 years) furnished the following information for the P.Y. 2023-24:

Income from Salary (Gross) 8,52,400

Professional tax deducted from salary 2,400

Long term capital gain on sale of building 60,000

Short term capital loss on sale of jewellery 10,000

Dividend from XYZ Ltd. an Indian company 4,000

Interest on Bank Deposit:

- on Fixed deposit account 14,000

26
- on Savings bank account 6,000

Received from lottery (Net after TDS @ 31.2%) 34,400

During the previous year 2023-24 he made the following payments:

(a) Life insurance premium on own life ₹15,000.

(b) Medical insurance premium on own health ₹12,000 and on the health of spouse ₹11,000 (by cheque).

(c) Own contribution to Recognised Provident Fund ₹30,000.

(d) Deposit in Public Provident Fund account ₹1,20,000.

(e) Donation to National Defence Fund ₹5,000.

Determine the taxable income and tax liability of Mr. Abdul Majid for the assessment year 2024-25.
16+4

6. The Profit and Loss Account of the firm for the year ended 31.03.2024 is given below. In the firm. X. Y and Z are
equal partners.

Particulars ₹ Particulars ₹

To Bonus to Z 30000 By Gross Profit b/d 250000

To Salaries to
Partners By Bank Interest 15000
By Profit on Sale of Land
(computed long term capital
X 50000 gain) 42500
Y 25000 75000
To Commission to
Z 15000
To Interest on
Capital @ 15%
p.a.
X 11500
Y 8000
Z 3000 22500
To Sundry
expenses 50000
To Net Profit 115000

307500 307500
Compute total income and tax liability of the firm for the Assessment Year 2024-25 after considering the followings:

(a) Sundry expenses include ₹1,000 being the payment made for income tax liability of the firm.

(b) Deduction U/S 80G ₹10,000. 17+3

[ Indirect Tax]

(Marks: 40)

Group-C

27
 Answer any four questions.

7. (a) Mention any three taxes that are not subsumed or merged with G.S.T.

(b) Mention any two goods that are kept outside the purview of G.S.T.

(c) Define the following terms as per Central Goods and Services Tax Act:

(i) Aggregate Turnover, (ii) Input tax. 3+2+(3+2)

1
8. Write short notes on: 2 *4
2

(a) Inward Supply

(b) Outward Supply

(c) Registered Person

(d) Place of Business.

9. (a) Discuss the differences between direct tax and indirect tax.

(b) From the following information, Calculate G.S.T. Payable and G.S.T. to be carried forward (if any) for the month
of April 2023 :

(i) Input tax credit available for the month of April, 2023

CGST ₹ 75,300, SGST ₹ 1,15,200

(ii) Output tax payable for the said month

CGST ₹ 95,000, SGST ₹ 95,000, IGST ₹ 10,000. 5+5

10. (a) State which type/types of GST would be leviable under each of the following cases:

(i) Mr. M of Mumbai supplied goods to Mr. C of Chennai.

(ii) Mrs. P of Punjab supplied goods to Mrs. Q of Punjab.

(iii) Mr. W of Andaman supplied goods to Mr. B of Andaman.

(b) What do you mean by tax invoice and bill of supply?

(b) Explain the concept of 'reverse charge' with the help of an example. (2+2+2)+4

11. (a) What do you mean by 'composite supply'and 'exempted supply"? Give an example for each. (3+3)+4

12. (a) (i) What do you mean by Composition scheme?

(ii) Who can opt for Composition scheme?

(b) (i) What is exempt supply?

(ii) Distinguish between 'exempt supply' and 'zero rated supply'. 2+4+2+2

13. Write short notes under Customs Act on (any two): 5x2

(a) Indian Customs Water.

(b) Protective Duty.

(c) Anti-Dumping Duty.

28
14. (a)From the following information, determine the assessable value:

US $

Price charged by the exporter (FOB) 25,000

Freight from importing country to India by air 6,250

Transit Insurance (not ascertainable) -

Loading and unloading charges at the place of importation 625

Freight paid on transportation from Indian airport to Warehouse ₹5,000

Exchange rate notified by CBIC is ₹80 per US $.

(b) What do you mean by taxable event under the Customs Act? 8+2

2021

TAXATION-II-HONOURS

Paper: CC-5.2Ch

Full Marks : 80

The figures in the margin indicate full marks.

Candidates are required to give their answers in their own words as far as practicable.

Direct Tax (Marks : 40)

Group-A

Answer any two questions.

1. When a return is considered to be defective? What is loss return? State the consequences of non-filing

of loss return. 4+2+4

2. Mr. Goswami submitted his return on 25th July, 2024 for the assessment year 2024-25. The following
particulars are furnished by him for the previous year 2023-24:

Tax payable on assessed income 1,03,950

Tax deducted at source 36,450

Advance taxes paid as under:

15th June, 2023 Nil

15th September, 2023 18,500

15th December, 2023 16,125

15th March, 2024 25,250

You are required to compute the interest, if any, payable by the assessee. 10

3. Write short notes on (any two):

(a) TAN

29
(b) Summary Assessment

(c) Self Assessment

(d) TDS from interest on securities

4. Mrs. Fatema (resident of India aged 64 years) furnishes the following particulars for the year ended March 31,
2024.

Total income excluding lottery income: ₹ 15,10,000

Lottery income received during April 2023: ₹ 63,000 net of tax @30%

Tax deducted at source (including TDS on lottery income) during the year is ₹ 51,600

Compute the instalments along with the dates of advance tax payable. 10

Group-B

Answer any one question.

5. Mr. Soren is employed in a private limited company in Kolkata, a resident aged 42 years, furnishes the following
particulars of his incomes and outgoings for the previous year 2023-24.

(i) Gross income from salary ₹34,20,200

(ii) Professional tax deducted by the employer from his salary per month ₹200.

(iii) Loss from self-occupied house ₹1,20,000.

(iv) He earns the following incomes during the year:

• Savings bank interest ₹15,300

• Interest on fixed deposits with banks ₹1,52,000

• Dividend from domestic companies ₹1,10,000

(v) Long-term capital gain on sale of urban land ₹10,42,000

(vi) Short-term capital loss on sale of gold ₹37,000

(vii) He has invested ₹1,30,000 in PPF.

(viii) He has paid medical insurance premium as follows:

On his own health ₹13,200; On his wife's health ₹15,300

On his father's health (father's age 75 years) ₹35,000

(ix) He has made a donation of ₹20,000 to Prime Minister's National Relief Fund.

Compute his total income and tax liability. Ignore Section 115BAC. 20

6. P and Q are partners of a firm sharing profits and losses in the ratio of 3:2. The profit and loss account of the firm for the year
ended March 31, 2024 is as follows:

Particulars Rs. Particulars Rs.

To Salaries to partners: By Gross Profit 209730

By Interest from bank
P 72000 fixed deposits 14370
Q 21000
To Interest on Capital @ 20% p

30
 P 24000
Q 13200
To Commission to Q 15000
To Trade expenses 27000
To Depreciation 30000
To Net Profit 21900

224100 224100

Compute total income and tax liability of the firm considering the following:
(a)The firm satisfies the conditions of section 184 and 40(b).
(b)Trade expenses include ₹5250 being the amount paid as penalty for violation of custom’s regulation.
IDepreciation as per I.T. Rules amounts to ₹48000. 16+4

Indirect Tax

(Marks: 40)

Group - C

Answer any four questions.

7. Write short notes on (any two): 5x2

(a)Input tax

(b) Output tax

(c) Reverse charge

(d) Registered person.

8. (a) What do you mean by Composite Supply and Mixed Supply? State the taxability of Composite Supply and
Mixed Supply.

(b) State the nature of supply and applicable GST Rate in case of the following supplies:

(i) A mobile company supplies Mobile Phone (GST 18%) along with charger (GST 12%) and

headphone (GST 24%].

(ii) A trader supplies Diwali gift box comprises dry fruits (GST 5%), cakes (GST 12%) and fruit

juice (GST 18%). (4+2)+4

9. (a) How the aggregate turnover in case of composition scheme is determined? State the GST rates applicable in
case of composition scheme.

(b) How the time of supply is determined in the following cases?

(i) Supply of goods

(ii) Advance from customer. (4+2)+(3+1)

10. (a) What do you mean by Tax Invoice and Bill of Supply?

(b) Mention any two supplies which are not covered under GST Law.

31
 (c) State the differences between direct tax and indirect tax. 4+2+4

11. (a) From the following information, compute value of supply and GST payable by Mr. P. a registered dealer in West
Bengal for the month of November, 2023:

Price of the goods supplied within West Bengal [Excluding ₹ 4,00,000 GST)

Following items are not included in the above price:

(i) Installation charges ₹ 20,000

(ii) Transport charges ₹ 10,000

(iii) Packing charges ₹5,000

(iv) Subsidy from Govt. of West Bengal ₹ 15,000

(v) Subsidy from a NGO ₹ 12,000

Applicable GST rate CGST - 6%, SGST - 6%.

(b) From the following information, state the nature of GST applicable in case of the following supplies:

(i) A of Kolkata supplied goods to B of Durgapur.

(ii) C of Bihar supplied goods to D of Tamilnadu.

(iii) F of Chandigarh supplied goods to G of Chandigarh. 7+3

12. Mr. R, a GST registered dealer supplied the following information for the month of December 2023:

(i) Input Tax credit balance as on 01.12.2023:

IGST ₹ 200000

CGST ₹ 135000

SGST ₹135000

(ii) Goods supplied (Excluding GST) during December, 2023 :

Inter-state supply ₹ 2000000

Intra-state supply ₹ 4000000

(iii) Goods purchased (Excluding GST) during December 2023:

Inter-state supply ₹ 600000

Intra-state supply ₹2000000

GST rate applicable as follows [both on purchases and sales] :

IGST - 12%

CGST - 9%

SGST -9%

Compute GST payable and ITC to be carried forward (if any) assuming Mr. R opted for utilization of unadjusted IGST
credit against CGST and SGST in the ratio of 1: 1. 10

13. (a) What is the taxable event under the Customs Act?

(b) Define territorial water as per the Customs Act.

(c) Write a short note on Anti Dumping Duty. 2+3+5

14) From the following information, calculate assessable value and duty payable:

32
 UK Pound

FOB value of Goods 23,000

Air freight 5,250

Insurance 400

Landing charges 550

Transportation charges from

airport to warehouse in Tamilnadu 10,000

Exchange rate notified by CBIC is ₹72 per UK Pound.

BCD-10%, SWS-10%, IGST-12% . 6+4

2022

TAXATION-II — GENERAL

[Direct Tax]

Group - A

1. Mr. M furnishes the following information for the previous year 2023-24:

(a) Loss from house property ₹60,000

(b) Long term capital loss ₹2,00,000

(c) Loss from business ₹1,50,000

Is it necessary for Mr. M to submit return of income? What is the due date of submission of such return of income?
Discuss the consequences for non-filing of return of income.

Or,

Discuss the provisions of the Income Tax Act relating to deduction of tax at source from salary.

2. Ayon (age 38 years) submitted his return of income for the A.Y. 2024-25 on July 25, 2024 showing a taxable income
₹6,00,000. During the P.Y. he paid advance tax of ₹15,000 and tax deducted at source amounted to ₹13,800. The
assessment was completed on January 10, 2025.

Calculate the amount of interest payable u/s 234B.

3. Write a short note on Best Judgement Assessment.

Or,

What is self-assessment? What is the time limit for submission of belated return?

Group - B

4. (a) Who is liable to pay advance tax?

(b) From the following information, compute the amount of instalments of advance tax payable by Ayon and Ankur
along with the due dates as per Income Tax Act for the assessment year 2024-25:

33
 Avon Ankur

Tax payable (including health and education cess) 25,000 30,000

Tax deducted at source 20,000 10,000

Or,

(a) During the financial year 2023-24, Mr. Sunny Singh earned profit of ₹8,00,000 from his business. The accounts of
which are required to be audited under the law. Mention the due date of his submission of return of income. Which
return form is applicable for him?

(b) When an assessee is liable to pay interest u/s 234A and fees u/s 234F?

(c) Give example of five transactions where quoting of PAN is compulsory.

Group - C

5. Mr. Ghosh (age 50 years), a resident individual of India, furnishes the following details for the previous year 2023-
24. Compute his total income and tax payable for the assessment year 2024-25.

(a) Gross salary ₹14,00,000 (Professional tax paid ₹2,000)

(b) Income from business 2,00,000

(c) Long-term capital gain on sale of building ₹1,50,000

(d) Short-term capital gain on sale of gold ₹40,000

(e) Winning from lottery (Net) ₹63,000 (TDS @ 30%)

(f) He deposited ₹90,000 to PPF during the previous year.

(g) He paid ₹13,000 by cheque for medical insurance policy on his own health.

(h) He donated ₹10,000 to Prime Minister's National Relief Fund.

(i) He paid ₹35,000 for premium on Life Insurance Policy (sum assured ₹5,00,000 taken on 01.10.2016) on his own
life.

Or,

A and B are partners in a firm sharing profits and losses in the ratio of 2:1. The Profit and Loss Account of the firm for
the year ended March 31, 2024 is as follows:

₹ ₹

To, Salary to Partners: By Gross Profit 2,40,000

A 40,000 By Interest on bank fixed 10,000

deposit
B 30,000

To Interest on Capital @ 16%

p.a.
24,000
A
20,000

34
 B 50,000

To Depreciation 47,000

To Other expenses 39,000

To Net Profit ________ ________

2,50,000 2,50,000

Additional information: ·

(a) The firm satisfies all the conditions of Section 184 and 40(b);

(b) Depreciation as per Income Tax rule is ₹45,000.

(c) Other expenses include the following:

(i) Life insurance premium on the life of A ₹8,000 and B ₹7,000.

(ii) Donation to National Defence Fund ₹10,000

Compute total income and tax liability of the firm for the assessment year 2023-24.

[Indirect Tax]

Group - D

6. (a) Mention any three objectives of GST.

(b) Mention any two taxes that are subsumed or merged with GST.

Or,

Describe the salient features of GST in India.

7. Define the followings as per Central Goods and Services Tax Act :

(a) Aggregate Turnover

(b) Taxable event.

8. Biplab, a GST registered dealer in Burdwan, supplies goods worth ₹4,00,000 to Mainak of Malda. Trade discount
allowed @ 10%. Biplab charges ₹8,000 for carriage and ₹2,000 towards packing charges for supply. GST rate is 18%.
Calculate GST payable by Biplab.

9. Write short notes on:

(a) Zero-rated supply

(b) Exempt supply.

Or,

35
Explain the concepts of composite supply and mixed supply with an example.

Group - E

10. Khusboo, a registered supplier of goods, provides the following information:

(a) Outward taxable supplies in the month of December 2023:

Inter-state supply of goods 15,00,000

Inter-state supply of goods 10,00,000

(b) Purchases made by her in the month of December, 2023:

Inter-state purchase of goods 5,00,000

Inter-state purchase of goods 3,00,000

(c) Input Tax Credit balance in Electronic Credit Ledger as on 01.12.2023:

IGST 1,44,000

CGST 40,000

SGST 70,000

(d) Rate of CGST, SGST and IGST to be 6%, 6% and 12% respectively.

(e) Both inward and outward supplies are exclusive of taxes.

(f) All the conditions necessary for availing ITC have been fulfilled.

Compute the GST payable by Khusboo for the month of December, 2023 and the balance of input tax credit, if any, to
be carried forward.

Or,

(a) State two cases where input tax credit is not available.

(b) Mention the GST rates applicable in case of composition scheme.

(c) Which document a dealer under composition scheme should issue to the buyer instead of Tax Invoice?

(d) Mention the conditions to be fulfilled in order to avail the benefit of composition scheme.

11. (a) From the following information determine the assessable value for the purpose of Customs Act, 1962:

(i) A machine is imported from USA.

(ii) FOB value: ($) 4000

(iii) Air Freight: ($) 1000

(iv) Design and Development charges paid: ($) 115

(v) Design and Development charges paid in India ₹10,000

(vi) Insurance charges actually paid but details are not available.

36
(vii) Exchange rate notified by CBIC is ₹80 per US Dollar.

(b)

Deline 'Goods' as per the Customs Act.

2022H

Direct Tax

Group - A

1. (a) Mr. Hasan has a total income of ₹65,00,000 from salary, bank FD interest and two house properties during the
previous year 2023-24. State with reason which ITR Form Mr. Hasan should fill-up for filing his income tax return for
the assessment year 2024-25.

(b) State any three cases where quoting of PAN is mandatory.

2. (a) Write short note on Belated Return.

(b) Can a belated return of income filed u/s 139(4) be revised?

Or.

Write a short note on 'Best Judgement Assessment".

3. Mrs. Kumkum Basu (age 54 years) is working in TQR Ltd. furnishes the following estimates for the P.Y. 2023-24.
Compute tax to be deducted at source per month by TQR Ltd.

- Taxable Salary 16,00,000

- Loss from house property 1,50,000

- Deductions under chapter VI A 2,20,000

Mrs. Basu has not opted for section 115 BAC.

Or,

State the relevant provisions regarding TDS from:

(i) winning from lottery

(ii) winning from horse race.

Group - B

4. The following particulars are furnished by Mrs. S. Raut for the previous year 2023-24:

Income from Salary 9,40,000

Income from let out House Property 3,20,000

37
Income from Business 5,80,000

Income from other sources 60,000

She is entitled to a deduction u/s 80C for ₹1,50,000, u/s 80G ₹30,000 and u/s 80D ₹20,000: Tax Deducted at Source
is ₹1,80,000.

Compute the advance tax payable by Mrs. Raut with the due dates of payment of instalment assuming she is (i) 45
years old (ii) 65 years old.

Or,

(a) Tax payable by Tuhin for the assessment year 2024-25 is computed at ₹1,08,600. From the following details,
compute interest payable u/s 234A and 234B, if any, by Tuhin for the A.Y. 2024-25.

- Tax paid on 31/01/2024 42,000

- Tax paid on 31/07/2024 16,600

- TDS 50,000

- Due date of filing return 31/07/2022

- Date of filing return 04/11/2022

(b) State how much fees an assessee has to pay u/s 234F of the Income Tax Act.

Group - C

5. The particulars of income of Mrs. Madhumita Chakraborty, aged 58 years, for the financial year 2023-24 are under
:

(a) Net salary ₹7,22,000 after deduction of tax at source ₹8,000.

(b) Income from business owned by her ₹3,00,000 and allowable expenses ₹1,80,000.

(c) Long-term capital gain on sale of building ₹1,80,000 and short-term capital gain on sale of gold ₹30,000.

(d) Dividend from TATA Motors ₹18,000

(e) Interest on fixed deposit with SBI ₹8,400

(f) Interest on Govt. Securities ₹24,000

(g) Winning from lottery (net) ₹68,800 (TDS @31.2%)

(h) She deposited in PPF ₹80,000 during the year

(i) Premium paid on life Insurance on her own life taken on 15.07.18 ₹36,000 (policy value ₹3,00,000)

(j) Donation to National Defence Fund ₹30,000

(k) Paid ₹25,000 to Rama Krishna Mission

(1) Paid premium on Mediclaim Insurance Policy on own health by cheque ₹24,000.

Compute her total income and tax liability for the assessment year 2024-25. She does not exercise option u/s
115BAC.

38
 Or,

Biswas & Associates, a firm of Chartered Accountants consisting of two partners, Mr. Biswas Mr. Saha, sharing profits
equally, furnishes the following profit and loss account for the year ending and 31st March, 2024.

Particulars Amount Particulars Amount

(₹) (₹)

Establishment and Audit fees 7,00,000

other expenses 8,60,000 Consultancy charges 9,60,000

Depreciation on Interest on Bank F.D. 40,000

Motor car 40,000 Long-term capital gain on

sale of land
Books 10,000 1,50,000

Donation to a registered

political party 20,000

Interest on capital @15%

p.a.
50,000
Biswas
25,000
Saha
5,00,000
Remuneration to partners
3,45,000
Net profit
__________ __________

18,50,000 18,50,000

Other information:

(i) Depreciation as per IT rules ₹1,90,000

(ii) Long-term capital gain computed as per provision of the IT Act.

(iii) Out of establishment and other expenses of ₹6,000 is disallowed

Compute total income and tax liability of the firm for the assessment year 2024-25 assuming that the firm satisfied all
the conditions of section 184 and 40(b).

Indirect Tax

Group - D

6. (a) Give two examples of indirect taxes in India.

(b) Mention any three important features of GST in India.

Or,

39
State which type/types of GST would be leviable under each of the following cases :

(i)
A
of
Ladakh (Union Territory) supplied goods to B of Ladakh.

(ii) C of Andaman supplied goods to D of Chandigarh

(iii) E of Delhi supplied goods to F of Delhi.

7. (a) A supplier selling fruit juice (GST 12%) with pizza (GST 18%) for a single price of 200. State whether the supply
amounts to composite supply or mixed supply. Also state the applicable rate of GST.

(b) How exempt supply differs from zero rated supply?

8. (a) State the provisions relating to 'Time of supply' of goods in case of reverse charge.

(b) The following information are furnished by A Ltd., the supplier of goods to B Ltd.:

(i) Date of supply of goods by A Ltd. is November 15, 2023.

(ii) Date of receipt of goods by B Ltd. is November 19, 2023.

(iii) Date of issue of invoice by A Ltd. October 28, 2023.

(iv) Date of payment by B Ltd. is December 05, 2023 as per books of accounts but the amount credited by bank is
December 07, 2023.

Find out the time of supply.

9. Ahmed Ltd. is a GST registered dealer in West Bengal, supplies the following goods to different suppliers during
December, 2023:

Recipient of Supply Place of supply Value of supply Trade discount

(Gross) (%)

Dhar Bros. Kolkata 5,20,000 2

Bairagi Ltd. Durgapur 6,70,000 5

Tewari Ltd. Ahmedabad 10,56,000 10

Plasma Plaza Medinipur 7,20,000 5

Tendulkar & Co. Mumbai 12,30,000 12

Calculate the amount of GST on outward supplies for the month of December, 2023. Applicable GST rate is 18%.

Or,

State the items to be included in the value of supply of goods u/s 15 of the CGST Act for determination of transaction
value.

Group - E

10. (a) Moon Ltd., being a registered person in the state of West Bengal, furnishes the following information:

40
 ₹

Purchases from Bihar 4,00,000

- Purchases from West Bengal 8,00,000

- Sales to Andhra Pradesh 4,80,000

- Sales within West Bengal 9,60,000

Input tax credit balances at the beginning of the relevant tax period were:

CGST : ₹50,000

SGST : ₹40,000

IGST : ₹30,000

Compute the net GST payable by Moon Ltd. for the tax period assuming :

(i) Inward and outward supplies are exclusive of taxes.

(ii) Inward supplies (purchases) are subject to CGST @6%, SGST @6% and IGST @12% as

applicable.

(iii) Outward supplies (sales) are subject to CGST @9%, SGST @9% and IGST @18% as

applicable.

(b) Mention any two cases when a person is not eligible to opt for composition scheme.

11. (a) What is taxable event under Customs Act?

(b) Define 'goods' under the Customs Act.

(c) Write a short note on safeguard duty.

Or,

M/S Impex Ltd. imported goods from USA.

- FOB value of the goods: US $ 1,000

- Insurance: US $ 100

- Freight fare (air): US $ 300

- Designing charges paid in USA: US $ 500

- Date of bill of entry: 28.09.2023 (when BCD rate was 20%)

- Date of entry inward: 10.10.2023 (when BCD rate was 18%)

- IGST payable is 12%

- Social Welfare Surcharge is 10%

- Exchange rates were as follows:

on 28.09.2023 on 10.10.2023

41
Notified by CBIC 73.50/US $ 75.10/US $

Compute the assessable value and customs duty payable by M/S Impex Ltd.

2023
TAXATION-II HONOURS
Paper : CC-5.2CH
Full Marks: 80
Direct Tax
(Marks: 40)
Group - A

1. What is loss return? State the consequences of non-filing of loss return.

2. Tax payable on total income of Mr. Roy for the assessment year 2024-25 computed at ₹ 3,50,000. He paid advance
tax of ₹ 45,000 during the previous year 2023-24. Tax of ₹ 15,000 has been deducted at source. Interest u's 234A,
234B and 234C calculated as per provisions of the Income Tax Act amounted to ₹ 12,500, ₹ 16,800 and 9,800
respectively. Calculate self-assessment tax payable by Mr. Roy u/s 140A.
Or.

(a) Name two cases where quoting of TAN is compulsory.

(b) Mention the rate of deduction of tax at source in the following cases :
(i) Interest on bank deposit
(ii) Winnings from lottery.

3. (a) When can a revised return be submitted? State the time limit for the submission of such return.
(b) Write a short note on scrutiny assessment.

Or,

(a) Mention any two situations when assessment shall be made by the Assessing Officer to the best of his judgement
u's 144.
(b) Mention any three circumstances when an assesse is liable to submit return of income even if the total income of
the assesse does not exceed the maximum amount not chargeable to tax.

Group - B

4. Mrs. Dutta (Resident of India aged 65 years) furnishes the following particulars for the previous year 2023-24:
(a) Total income excluding lottery income but including income from long-term capital gain on sale of land 18,20,000.
(b) Lottery income ₹1,26,000 (net of tax @30%).
(c) Long term capital gain on sale of land ₹ 1,50,000.
(d) Deduction under chapter VIA ₹ 1,00,000
(c) Tax deducted of source during the previous year is ₹ 73,440.
Compute the instalments along with the dates of advance tax payable by Mrs. Dutta Ignore section 115 BAC.

Or,

(a) When interest under section 234B is levied under the Income Tax Act?
(b) Tax liability of Md. Ayan Aslam (age 35 years) for the assessment year 2024-25 is ₹50,000.
He has paid advance tax as given below:
- ₹ 8,000 on 15th June, 2023
- ₹ 11,000 on 10th September, 2023
- ₹ 16,000 on 15th December, 2023
- ₹ 10,475 on 15th March, 2024
- ₹ 4,525 on 25th March, 2024.
The total income of Aslam does not include business profit. Is he liable to pay interest u/s 234C, if yes, then how
much?

Group-C
42
 5.

Mr. Dasgupta (age 50 years), a resident individual of India, furnishes the following details of his income during the
previous year 2023-24. Compute his total income and tax liability for the assessment year 2024-25.
(a) Gross salary ₹ 18,00,000 (Professional tax paid ₹ 2,400)
(b) Loss from let out house property ₹ 2,70,000
(c) Income from self occupied house property ₹ 75,000.
(d) Long-term capital gain on sale of jewellery ₹ 16,000
(e) Short-term capital loss on sale of gold ₹ 3,000
(f) Dividend received from Indian companies ₹ 50,000
(g) Received from lottery (Net after TDS @ 30%) ₹ 35,000
(h) During the previous year he made the following payments:
(i) Life insurance premium on own life ₹ 25,000
(ii) Medical insurance premium on own health ₹ 15,000 and on the health of spouse ₹ 10,000
(iii) Own contribution to RPF ₹ 50,000
(iv) Deposit in PPF ₹ 90,000
(v) Donated ₹ 10,000 to Prime Minister's National Relief Fund
(vi) Donated ₹ 3,000 to a recognised political party.
Ignore section 115 BAC.

Or.

Pritam, Mainak and Anik are partners in a firm sharing profits and losses in the ratio of 3:2:1 Profit & Loss Account of
the firm for the year ended March 31, 2024 discloses a net profit of ₹ 68,100. The following items have been debited in
the accounts:
(a) Salaries of Pritam, Mainak and Anik
(b) Commission paid to Pritam ₹ 5,000
70,000, 60,000 and 50,000 respectively.
(c) Interest on partners' capital @ 18% p.a. ₹ 9,000; ₹ 8,100 and ₹ 7,200 to Pritam, Mainak and Anik respectively
(d) Donation to National Defence Fund ₹ 10,000
(e) Penalty for violation of Custom's law ₹ 5,000
(f) Remuneration of ₹ 24,000 p.a. paid to software engineer Mrs. Sayani, wife of partner Pritam, for services rendered
by her in the firm
(g) Depreciation ₹ 30,000 (Depreciation allowable under Income Tax Act ₹ 40,000).
Compute total income and tax liability of the firm for the assessment year 2024-25. Assume that the firm fulfils all the
conditions of Section 184 and Section 40(b).

[Indirect Tax]
(Marks: 40)
Group - D

6. (a) Mention three important advantages of GST.

(b) Name any two goods that are kept outside the purview of GST.

Or,

Define any two of the following as per GST Act:

(a) Taxable person
(b) Input Tax Credit
(c) Compensation Cess.

7. (a) What is taxable event for charging GST?

(b) With help of an example briefly explain the concept of:
(i) Intra-state supply; (ii) Inter-state supply.

8. State the time of supply in case of:

(a) Supply of goods under forward charge
(b) Supply of goods under reverse charge.

9. (a) R Ltd. a manufacturer of cosmetic products supplied a package consisting of Body oil (GST 18%). Body lotion
(GST 28%), Shampoo (GST 28%) and Soap (GST 12%). The price per package is ₹ 750 (exclusive of GST) ₹ 15,000
packages were supplied by the company to its dealers. Determine the nature of supply and its GST liability

43
 (b)

Determine whether the following supplies amount to composite supply or mixed supply:
(i) A hotel provides 3 days and 2 nights package wherein the facility of breakfast and dinner is
provided along with the room accommodation free of cost.
(ii) A toothpaste company has offered a scheme of free toothbrush of ₹ 25 along with the purchase of toothpaste of ₹
248.

Or.

Sunny, a GST registered dealer in West Bengal, supplies 1,000 bags of cement @ ₹ 400 per bag to Sahil of Orissa.
Trade discount of 10% is allowed. Sunny charges ₹ 17,500 for packing and freight separately Inspection charges of ₹
2,000 is borne by Sahil, though Sunny is liable to pay such charges. Interest of ₹ 3,000 is charged by Sunny for
delayed payment made by Sahil.
Calculate Value of supply and the amount of GST liability, IGST rate is 18%.

Group - E

10. (a) What is the maximum turnover for opting Composition Scheme?
(b) What are the components of 'aggregate turnover' under Composition Scheme?
(c) What are the specified GST rates under composition scheme?

Or,

Srinita, a GST registered dealer in West Bengal, furnishes the following particulars for the month of December, 2023.
Compute the amount of GST payable for the month for December.
(a) Input tax credit balance in electronic credit ledger on December 01, 2023:
₹
IGST 2,55,000
CGST 1,30,000
SGST 90,000
(b) Details of outward supply in December 2023:
Inter-State (including IGST @ 18%) 29,50,000
Intra-State (including CGST @ 9% and SGST @ 9%) 41,30,000
(c) Details of inward supply in December 2023:
Inter-State (excluding IGST @ 18%) 15,00,000
Intra-State (excluding CGST @9% and SGST @ 9%) 10,00,000
Intra-State (including CGST @ 6% and SGST @ 6%) 5,60,000

11. (a) Write a short note on Anti dumping duty.

(b) From the following information, calculate assessable value and customs duty payable in case of a machine
imported from U.K.:
U.K. Pound
FOB value of goods. 25,000
Designing and development fees paid in U.K. 1,000
Air freight 5,500
Insurance Details not available
Landing charges (₹) 650
Transportation charges from Mumbai airport to the factory (₹) 15,000
Exchange rate notified by CBIC is ₹ 90 per UK pound.
Basic Customs Duty - 10%; Social Welfare Surcharge - 10%: IGST : 12%

44
 2023
TAXATION-II - GENERAL
Paper: DSE-5.1AG
Full Marks: 80
Candidates are required to give their answers in their own words as far as practicable.

প্রাস্তলিলিত সংিযাগুলি পূর্মান

ণ লনর্দণ শক।

[ প্রত্যক্ষ কর ]

(মান : 80 )

বিভাগ ক

১| (ক) লিিলিত লিটান কী?

ণ

(ি) লিিলিত লিটান ণজমা কিাি সময়সীমা কী?

(গ) লিিলিত লিটান ণসংর্শাধন কিা যায় লক? ২+২+১

অথিা,

কি সংগ্রহ লহসাি সংিযা (TAN) সম্পর্কণ সংলিপ্ত টীকা লির্িা। ৫

২। িটালিি পুিস্কাি লজতা লের্ক উৎসমূর্ি কি লকর্ট লনওয়াি জনয আয়কি আইর্নি লিধানগুলি আর্িাচনা কর্িা।
৫

অথিা,

লনম্নলিলিত িযক্তির্দি লির্ে আর্য়ি লিটান জমা

ণ লদিাি তালিিগুলি ির্িা :

(অ) লম. দাস, একজন একক িযক্তি, যাি আয় লনিীিার্যাগয নয়।

45
(আ) লমর্সস লিাস, একজন একক িযক্তি, যাি আয় লনিীিার্যাগয।

(ই)

লমসাস ণXYZ, একটট অংশীদালি কািিাি। ২+২+১

৩। লম. িামু লিতন ও িযাংক সুদ লের্ক আয় কর্িন এিং লতলন 18 লসর্েিি 2023 তালির্ি 2023-24 লনধাির্ ণ িছর্িি আর্য়ি লিটান জমা
ণ লদন। তাাঁি
প্রর্দয় আয়কি 72,800 টাকাি মর্ধয তাি লনর্য়াগকতণা 36,800 টাকা উৎসমূর্ি কিিািদ লকর্ট লনর্য়র্ছন। প্রদত্ত আগাম কর্িি পলিমার্ 20,000
টাকা। 234A ধািা অনুযায়ী তাাঁর্ক কত সুদ প্রদান কির্ত হর্ি এিং 234F ধািানুযায়ী কত লি প্রদান কির্ত হর্ি? 8+ ১

বিভাগ - খ

৪। Mr. Mallick (িয়স 42 িছি), একজন একক আিালসক িযক্তি 2022-2023 পূিিতী
ণ িছর্ি তাাঁি আনুমালনক আয়-এি লনম্নলিলিত তেযসমূহ লপশ
কর্ির্ছন :

Salaries ₹2,21,000

Income from house property ₹2,50,000

Profit from business ₹1,00,000

Dividend from a foreign company ₹9,000

Mr. Mallick 2022-2023 পূিিতী

ণ িছর্ি সিজনীন
ণ ভলিষ্যলনলধর্ত 30,000 টাকা প্রদান কর্ির্ছন।

লকক্তস্ত প্রদার্নি লনলদণষ্ট লদর্নি উর্েিসহ ওই তালিিগুলির্ত Mr. Mallick দ্বািা প্রর্দয় অলগ্রম কর্িি পলিমার্ লনধাির্
ণ কর্িা।
১০

অথিা,

সংবক্ষপ্ত টীকা লেখখা :

(ক) সংর্শালধত লিটান ণ

(ি) সংলিপ্ত কি লনধাির্।

ণ ৫+ ৫

বিভাগ - গ

৫। Mr. Pyne (িয়স ৩২ িছি) একজন ভািতীয় আিালসক, 2022-2023 পূিিতী

ণ িছর্িি জনয লনম্নলিলিত তেযসমূহ লপশ কর্ির্ছন :

(i) Income from house property ₹2,00,000

(ii) Income from business ₹1,50,000

(iii) Long-term capital gain on sale of jewellery ₹70,000

(iv) Short-term capital loss on sale of building ₹40,000

46
(v) Dividend from Indian Company ₹ 10,000

(vi) Winning from lottery ₹30,000 (Gross )

(vii) Donated ₹ 10,000 to Jawaharlal Nehru Memorial Fund

(viii) Paid ₹ 10,000 for purchase of NSC (VIII issue)

(ix) Deposited ₹20,000 in PPF.

2023-2024 আয় লনধাির্

ণ িছর্ি Mr. Pyne-এি কির্যাগয লমাট আয় ও প্রর্দয় কর্িি পলিমার্ লনধাির্
ণ কর্িা।

১২+৩

অথিা,

A এিং B একটট অংশীদালি কািিার্িি অংশীদাি, লয কািিািটটি আয় অংশীদালি কািিার্িি আয় লহর্সর্ি লনধাির্ণ কিা হয়। তাাঁিা সমান হার্ি
িাভ-লিাকসান ভাগ কর্ি লনন। 31.03.2023 তালির্ি লশষ্ হওয়া িছর্ি অংশীদালি কািিার্িি িাভ-িলতি লহসাি নীর্চ লদওয়া হি :

₹ ₹

To Salary to staff 75,000 By Gross Profit 3,30,000

“ Depreciation 20,000 Interest on bank fixed 14,000

deposit

“ Office expenses 58,000

“ Rent 12,000

“ Provision for doubtful debt 5,000

“ Salary to Partners:

A 54,000

B 72,000 1,26,000

“ Commission to B 9,000

“ Interest on Capital @20%

p.a.:

A 8,000

B 7,000 15,000

“ Net Profit:

A 12,000

B 12,000 24,000

Total: 3,44,000 3,44,000

Total:

অনযানয তেযসমূহঃ
47
(i) Office expenses include penalty paid to Customs Authority ₹5,000.

(ii)

Depreciation as per Income Tax rule ₹17,000.

2023-2024 কি লনধাির্
ণ িছর্ি অংশীদালি কািিার্িি কির্যাগয লমাট আয় ও প্রর্দয় কর্িি পলিমার্ লনর্য়ণ কর্িা।
১২+৩

[পখরাক্ষ কর ]

(মান : 80 )

বিভাগ – ঘ

৬। প্রতযি কি ও পর্িাি কর্িি মর্ধয পােকয

ণ লনর্য়ণ কর্িা।

অথিা,

(ক) লয-লকার্না দুটট পর্িাি কর্িি উর্েি কর্িা লযগুলি GST-ি মর্ধয অন্তভভি
ণ কিা হয়লন।

(ি) ভািতীয় GST-ি লয-লকার্না লতনটট গুরুত্বপূর্ বিলশর্ষ্টযি

ণ উর্েি কর্িা । ২+৩

৭। দ্রিয সিিিার্হি মূর্িযি মর্ধয অন্তভভি

ণ লিষ্য়গুলি উর্েি কর্িা। ৫

অথিা,

সংবক্ষপ্ত টীকা লেখখা :

(ক) লমশ্র সিিিাহ

(ি) দ্রর্িযি আন্তঃিাজয সিিিাহ। ৩+২

৮। J, একজন লিহার্িি লনিলিত িযিসায়ী, 10,000 টাকাি (GST িার্দ) লকছভ দ্রিয পক্তিমির্েি িযিসায়ী T-ি কাছ লের্ক লসর্েিি 2023 তালির্ি
ক্রয় কর্িন এিং লসর্েিি 2023 তালির্ি 20,000 (GST িার্দ) টাকায় লিহার্ি K-লক লিক্তক্র কর্িন। J-এি 2023- এি লসর্েিি মার্স প্রর্দয় GST-ি
পলিমার্ লনর্য়ণ কর্িা। ধর্ি নাও ক্রয় ও লিক্রর্য়ি লির্ে GST-ি হাি : CGST - 9%, SGST - 9%, IGST - 18%। ৫

৯। ‘িিওয়ার্ণ চাজণ' ও ‘লিভাস ণচাজণ' িির্ত কী লিার্ া? উদাহির্সহ আর্িাচনা কর্িা। ৫

বিভাগ - ঙ

48
১০। (ক) চন্দন পাি, পক্তিমির্েি একজন GST লনিলিত সিিিাহকািী, আগর্ে 2023-এি জনয লনম্নলিলিত তেযসমূহ লপশ কর্ির্ছন। এই মার্সি
জনয প্রর্দয় GST-ি পলিমার্ লনর্য়ণ কর্িা :

Particulars Amount (₹)

Input tax credit balance in electronic credit ledger as on

1st August, 2023 :

IGST 7,50,000

CGST 1,50,000

SGST 1,45,000

Details of outward supply in August 2023 :

Inter-state (Exclusive of IGST @18%) 60,00,000

Intra-state (Exclusive of CGST @9% and SGST @9%) 80,00,000

Details of inward supply in August 2023 :

Inter-state (Exclusive of IGST @18%) 16,00,000

Intra-state (Exclusive of CGST @6% and SGST @6%) 40,00,000

(ি) সংযুি প্রকল্প িির্ত তভ লম কী লিার্ া?

১১। (ক) লনম্নলিলিত তেয লের্ক Customs Act, 1962 অনুযায়ী একটট আমদালনকৃত লমলশন-এি লনধাির্
ণ মূিয লনর্য়ণ কর্িা।

(i) FOB value as per Customs US S 20,000

(ii) Air freight US S 5,000

(iii) Insurance US S 500

(iv) Transport charges from Kolkata airport

to warehouse ₹20,000

(v) Exchange rate notified by CBIC is ₹70 per US S.

(ি) সুিিা শুল্ক (Safeguard Duty)-এি উপি সংলিপ্ত টীকা লির্িা।

অথিা,

(ক) Customs Act অনুযায়ী কির্যাগয ঘটনাটট কী?

(খ) সংবক্ষপ্ত টীকা লেখখা :

49
(অ) অযালি-র্াম্ম্পং শুল্ক

(আ) প্রর্টকটটভ শুল্ক।

[English Version]

The figures in the margin indicate full marks.

[Direct Tax]

(Marks : 40)

Group - A

1. (a) What is belated return?

(b) What is the time limit for submitting a belated return?

(c) Can a belated return be revised? 2+2+1

Or,

Write a short note on Tax Deduction Account Number (TAN). 5

2. Discuss the provisions of Income Tax Act relating to deduction of tax at source from winning of lottery.
5

Or,

State the due dates of submission of return by the following persons:

(a) Mr. Das, an individual, whose income is not subjected to audit.

(b) Mrs. Bose, an individual, whose income is subjected to audit.

(c) M/s. XYZ, a firm. 2+2+1

(6)

50
 3.

Mr. Ramu, whose income consists of salary and bank interest, has submitted the return of income for the assessment
year 2024-25 on September 18, 2024. His tax liability for the said year is ₹72,800 out of which ₹36,800 has been
deducted at source by his employer. Advance tax paid ₹20,000. Determine the interest chargeable under Section 234A
and fees payable under Section 234F. 4+1

Group - B

4. The estimated income of Mr. Mallick (42 years), a resident individual for the previous year 2023-2024 are as follows:

Salaries ₹2,21,000

Income from house property ₹2,50,000

Profit from business ₹1,00,000

Dividend from a foreign company ₹9,000

Mr. Mallick contributed to Public Provident Fund ₹30,000.

Compute the amount of advance tax payable by Mr. Mallick along with the due dates of payment of instalments.
10

Or,

Write short notes on:

(a) Revised Return

(b) Summary Assessment. 5+5

Group-C

5. Mr. Pyne (32 years), a resident individual of India, furnishes the following information for the previous year 2023-
2024:

(i) Income from house property ₹2,00,000

(ii) Income from business ₹1,50,000

(iii) Long-term capital gain on sale of jewellery ₹70,000

(iv) Short-term capital loss on sale of building ₹40,000

(v) Dividend from Indian Company ₹10,000

(vi) Winning from lottery ₹30,000 (Gross)

(vii) Donated ₹10,000 to Jawaharlal Nehru Memorial Fund.

(viii) Paid ₹10,000 for purchase of NSC (VIII issue).

(ix) Deposited ₹20,000 in PPF.

51
Compute taxable income and tax payable by Mr. Pyne for the assessment year 2024-2025.

12 + 3

Or,

A and B are partners in a firm which is assessed as a firm. They share profits and losses equally. The firm's Profit &
Loss Account for the year ended 31.03.2024 is given below:

₹ ₹

To Salary to staff 75,000 By Gross Profit 3,30,000

“ Depreciation 20,000 Interest on bank fixed 14,000

deposit

“ Office expenses 58,000

“ Rent 12,000

“ Provision for doubtful debt 5,000

“ Salary to Partners:

A 54,000

B 72,000 1,26,000

“ Commission to B 9,000

“ Interest on Capital @20%

p.a.:

A 8,000

B 7,000 15,000

“ Net Profit:

A 12,000

B 12,000 24,000

Total: 3,44,000 3,44,000

Total:

Additional information:

(i) Office expenses include penalty paid to Customs Authority ₹5,000.

(ii) Depreciation as per Income Tax rule ₹17,000.

Compute taxable income and tax liability of the firm for the assessment year 2024-2025.

12 + 3

[Indirect Tax]

(Marks - 40)
52
 Group - D

6. Distinguish between Direct Tax and Indirect Tax. 5

Or,

(a) Mention any two indirect taxes not subsumed in GST.

(b) Mention any three important features of GST in India. 2+3

7. Mention the components that are included in the value of supply of goods. 5

Or,

Write short notes on:

(a) Mixed supply

(b) Inter-state supply of goods. 3+2

8. J, a registered dealer in Bihar, purchases goods from T in West Bengal for an amount of ₹ 10,000 (exclusive of GST)
in September 2023 and sells goods to K in Bihar for ₹ 20,000 (exclusive of GST) in September, 2023. Calculate the GST
payable by J for the month of September, 2023. Assume GST rate for both purchases and sales: CGST - 9%, SGST - 9%,
IGST-18%. 5

9. What do you mean by 'Forward charge' and Reverse charge'? Discuss with examples. 5

Group - E

10. (a) Chandan Pal, a GST registered supplier of West Bengal, furnishes the following particulars for the month of
August 2023. Compute the amount of GST payable for the month.

Particulars Amount (₹)

Input tax credit balance in electronic credit ledger as on

1st August, 2023 :

IGST 7,50,000

CGST 1,50,000

SGST 1,45,000

53
 Details of outward supply in August 2023 :

Inter-state (Exclusive of IGST @18%) 60,00,000

Intra-state (Exclusive of CGST @9% and SGST @9%) 80,00,000

Details of inward supply in August 2023 :

Inter-state (Exclusive of IGST @18%) 16,00,000

Intra-state (Exclusive of CGST @6% and SGST @6%) 40,00,000

(b) What do you mean by Composition Scheme? 8+2

11. (a) From the following information, calculate Assessable Value under Customs Act, 1962 in case of importation of
a machine.

(i) FOB value as per Customs US $ 20,000

(ii) Air freight US $ 5,000

(iii) Insurance US $ 500

(iv) Transport charges from Kolkata airport to warehouse ₹20,000

(v) Exchange rate notified by CBIC is 70 per US $.

(b) Write a short note on Safeguard Duty. 6+4

Or,

(a) What is taxable event under Customs Act?

(b) Write short notes on:

(i) Anti-Dumping duty

(ii) Protective duty. 2 + (5 + 3)

ADVANCED BUSINESS MATHEMATICS HONOURS

2019

Group-A
𝑎𝑥 2 −𝑏
1. If lim =4, find the values of a and b.
𝑋→2 x−2

𝑑2𝑦
2. Given x = t+𝑡 −1 and y = t-𝑡 −1 ; find the value of at the point t = 2.
𝑑𝑥 2

54
 3.

𝑥 2 −25
For what value of f(5), f(x)= will be continuous at x = 5?
𝑥−5

2 −3 −5 −1 3 5
4. If A = [−1 4 5 ]and B =[ 1 −3 −5]show that AB=BA=0, where 0 is the zero (null)
1 −3 −4 −1 3 5
matrix of order 3

1+𝑥 1 1
1 1 1
5. Prove that | 1 1+𝑏 −1 |= abc (1 + 𝑎+𝑏+𝑐 )
1 1 1+𝑐

log (𝑙𝑜𝑔𝑥)
6. Find a function whose derivative is
𝑥𝑙𝑜𝑔𝑥

Group-B

7. (a) Solve by Cramer's Rule : 𝑥+y+z =6, 2𝑥−y+3z=9, 𝑥+3y-2z=1

(b) The marginal revenue (MR) of a product is given by MR=20+8𝑥-𝑥 2 𝑥 being the output. Find the price of the product
when 𝑥=6.

3𝑒2𝑥 +3𝑒4𝑥
8. (a) Evaluate : ∫ 𝑑𝑥
𝑒𝑥 +𝑒−𝑥

𝑒 𝑑𝑥
(b) Evaluate : ∫1
𝑥(1+𝑙𝑜𝑔𝑥)2

𝑑2𝑦 𝑑𝑦
9. (a) If y= A𝑒 2𝑥 +B𝑥𝑒 2𝑥 where A and B are constants, then show that -4 +4y=0.
𝑑𝑥 2 𝑑𝑥

(b) Find the area bounded by the curve 𝑦 2 =4 𝑥, the 𝑥 -axis and the ordinate at 𝑥 =4.

2 −1 −2
10. Given A = [1 2 −3]
3 −1 −4
Find 𝐴−1 . Hence solve the following equations:

2𝑥-y-2z=-8. 𝑥+2y-3z=9 and 3𝑥-y-4z=3.

11. (a) Divide 16 into two parts such that their product is maximum.

(b) Find the area bounded by the parabola 𝑥 2 =12y, the y-axis and the line y=4.

55
 ADVANCED BUSINESS MATHEMATICS HONOURS

2020

𝑥
1. (a) Evaluate : 𝑙𝑜𝑔
𝑋→0 √1+𝑥 − √1−𝑥

100 + 5𝑥, 0 < 𝑥 ≤ 500

(b) The total cost C of producing 𝑥 items is given by C = {
2000 + 4𝑥, 500 < 𝑥 ≤ 2000
Show that C is discontinuous at 𝑥 =500.

−7 7 −11 9
2. (a) if A-2B =[ ]and A-3B=[ ]find the matrices A and B.
4 −8 4 −13

𝑥 𝑦 𝑧
2 2
(b) Prove that | 𝑥 𝑦 𝑧2 |= 𝑥 yz (𝑥 -y) (y-z) (z-𝑥 )
𝑥3 𝑦3 𝑧3

(4𝑥−3)3
3. (a) Evaluate: ∫ 𝑑𝑥
𝑥2

𝑑2𝑦
(b) Find , if 𝑦 2 +3a𝑥 2 +𝑥 3
𝑑𝑥 2

( )
4. (a) If y = log 𝑥 +√1 + 𝑥 2 then show that (1+𝑥 2 )𝑦 2 + 𝑥𝑦1 = 0
1
(b) A firm produces 𝑥 tonnes of output at a total cost Rs. R where R = 𝑥 3 -5𝑥 2 +10𝑥 + 5
10

Find at what level of output, average cost be minimum and what level will it be.

5. (a) Find the area included between 𝑦 2 =9𝑥 and y = 𝑥.

(b) The price P and quantity q of a commodity are related by q=32-4p -𝑝2 ; find the marginal revenue when p = 3.

𝑑𝑥
6. (a) Evaluate : ∫ 𝑑𝑥
√𝑥+1 − √𝑥−1

5𝑥+2
(b) Evaluate: ∫ 𝑑𝑥
(𝑥−2)(𝑥−3)

7. (a) Solve by Cramer's Rule the following set of equations:

2𝑥 + 3y-z= 9, 𝑥 + y + z = 9; 3𝑥 -y-z = −1.

56
 (b)

1 2 −2
1
Verify that the matrix A = [−2 1 2 ]is an orthogonal matrix.
3
2 2 1

1 1 −2
8. Find the inverse of [−2 1 −2]and hence solve the following system of equations
1 0 2
𝑥 + y-2z =4, −2𝑥 + y - 2z =1; 𝑥 + 2z =3

ADVANCED BUSINESS MATHEMATICSHONOURS

2021

2𝑥 2 −7𝑥+6
1. (a) Evaluate: lim
𝑋 2 3𝑥 2 −7x+2

2𝑥 − 1, 𝑖𝑓 𝑥 2
(b) A function f (𝑥) is defined as follows: f (𝑥) = { 𝑘, 𝑖𝑓 𝑥 = 2
𝑚 − 𝑥, 𝑖𝑓 𝑥  2

Find the values of k and m if f (x) is continuous at x = 2.

2 −1 1 3 5
−1 0 5
2. (a) Express the following in a single matrix: [3 4] [ ] + [2 4 7]
1 2 −3
5 0 3 5 −2
𝑎−𝑏−𝑐 2𝑎 2𝑎
(b) Prove that | 2𝑏 𝑏−𝑐−𝑎 2𝑏 |= (a+b+c)3
2𝑐 2𝑐 𝑐−𝑎−𝑏

𝑥𝑑𝑥
3. (a) Evaluate: 
(𝑥+1)2

1−𝑡 2𝑡 𝑑2𝑦
(b) If 𝑥 = and y = then show that = 0.
1+𝑡 1+𝑡 𝑑𝑥 2

3𝑥
4. (a) Evaluate:  d𝑥
(𝑥+1)(𝑥−2)

57
 (b)

𝑑𝑥
Evaluate: 
(𝑥−3)√𝑥+1

5. (a) Find the area bounded by the parabola y = 𝑥 (4-𝑥 ) and the 𝑥 -axis.

(b) For a certain establishment, the total cost function C and the total revenue function R are given by C( 𝑥 ) = 𝑥 3 - 12𝑥 2
+ 48𝑥 + 11 and R(𝑥 ) = 83𝑥 -4𝑥 2 -21, where 𝑥 output. Obtain the output level for which the profit is maximum and find
the maximum profit.

3𝑥−5
6. (a) If y = f (𝑥 ) = and f(y) = 𝑥 , find the value of m.
2𝑥−𝑚

5
(b) If the demand function be p = 40 - 𝑞, find the marginal revenue when the level of output q is 7.
2

−1 3 5
7. (a) If A = [ 1 −3 −5 ], show that 𝐴2 = A. Hence find the matrix B, which statistics the relation
−1 3 5
3𝐴2 − 2𝐴 + 𝐵 = 𝐼3 , where 𝐼3 , is the identity matrix of order 3.

1 + 𝑎1 1 1
(b) Prove that [ 1 1 + 𝑎2 1 ] = 𝑎1 𝑎2 𝑎3 (1+ 𝑎1 1 1
1 𝑎2 𝑎3
)
1 1 1 + 𝑎3

8. (a) Solve by Cramer's Rule:

𝑥 + y + z = 1, a𝑥 + by + cz = k, 𝑎2 𝑥 + 𝑏 2 y + 𝑐 2 z = 𝑘 2 , given a  b  c.

2 5 3
(b) If 𝐴−1 = [ 3 1 2 ] find A.
1 2 −1

2022

ADVANCED BUSINESS MATHEMATICSHONOURS

√1+2𝑥 − √1−2𝑥
1. (a) Evaluate: 𝑙𝑖𝑚
𝜘→0 x

2𝑥 2 −8
(b) The function 𝑓(𝑥)= is undefined at x=2. What value must be assigned to f(2), if f(x) is
x−2

to be continuous at x=2?

2 3 10 1
2. (a) Find the matrices A and B for which 2A+B=[ ]and 3B-2A=[ ]
5 1 3 5

58
 (b)

𝑥2 + 𝑦2 + 1 𝑥2 + 2𝑦2 + 3 𝑥2 + 3𝑦2 + 4
Prove that :| 𝑦2 + 2 2𝑦2 + 6 3𝑦2 + 8 |=𝑥 2 𝑦 2 .
𝑦2 + 1 2𝑦2 + 3 3𝑥2 + 4

(𝑥+2)
3. (a) Evaluate: ∫ 𝑑𝑥
√𝑥−2

5 𝑑𝑥
(b) Evaluate: ∫2
(𝑥+3)(𝑥+5)

𝑥𝑑𝑥
4. (a) Evaluate : ∫
√2𝑥+3+ √5+2𝑥

𝑑2𝑦
(b) If y=𝑎𝑒 𝑀𝑥 + 𝑏𝑒 −𝑀𝑥 show that - 𝑀2 𝑦 = 0.
𝑑𝑥 2

5. (a) The demand function of a firm is 3p+x=48, where p is the price per unit and x is the number of units demanded.
Find the level of output where total revenue is maximized.

(b) Find the area bounded by the straight lines 3x + 4y = 12, x = 1 and x-axis.

1
6. (a) If 𝑓(𝑥) =
1−𝑥
, find ƒ ƒ { ( )},(x0)
1+𝑥 𝑥
𝑑𝑦
(b) Find when y=𝑥 𝑥 + 𝑥 2
𝑑𝑥

1 1 1 2 5 3 1 2 4
7. (a) Solve by Cramer's Rule: + + =1, + + =0, + + =3
𝑥 𝑦 𝑧 𝑥 𝑦 𝑧 𝑥 𝑦 𝑧

1 21 2 1 1
(b) If A= [ 1 − 4 1 ]and B =[ 1 − 1 0 ]show that AB = 6𝐼3 (𝐼3 is the identity matrix of order 3).
3 0−1 2 1−1
Utilize this result to solve 2x+y+z=5, x-y=0 and 2x+y-z =1.

𝑥−𝑧 −𝑥−𝑧 3−𝑡 5−𝑡

8. (a) Solve for x, y, z and t if [ ]=[ ]
7−𝑡 6+𝑧 𝑡+5 𝑥−𝑦

𝑥−1 1 1
(b) Find the value of x, when :| 1 𝑥 + 1 −1 |=0.
−1 1 𝑥+1
2023
ADVANCED BUSINESS MATHEMATICS HONOURS

59
 Paper DSE-5.1 All

(Module - II)
Full Marks : 40
The figures in the margin indicate full marks.
Answer any four questions.
√1+𝜘+𝑥 2 −1
1. (a) Evaluate: 𝑙𝑖𝑚
𝜘→0 𝑥
𝑥 3 −8
(b) The function f(x)= is undefined at x=2. Redefine the function so as to make it continuous at x=2.
𝑥 2 −4

0 1+𝑥
2. (a) Evaluate: ∫−1 𝑑𝑥
1−𝑥
𝑑𝑥
(b) Evaluate: ∫
(𝑥−3)√𝑥+1
3. (a) If f(x) + 2f(-x) = 𝑥 2, show that f(3)=3.
𝑑𝑦
(b) If y=2𝑥 3 +3𝑥 2 -36x+7, find the values of x for which = 0
𝑑𝑥
4. (a) Solve by Cramer's Rule: 2x-y+3z=-2, 3x + 2y + 3z=9, x+2y-z=9.
1 2 2
1
(b) Show that the matrix A= [ 2 1 −2] is orthogonal. Hence, find 𝐴−1 .
3
−2 2 −1
5. (a) Evaluate: ∫(2𝑥 + 1)√4𝑥 2 + 4𝑥 + 5 𝑑𝑥
𝑑2𝑦
(b) If x=𝑡 2 + 2t, y=𝑡 2 -2t, find out at t= 1.
𝑑𝑥 2
𝑥 𝑦 0
6. (a) Without formal expansion prove that |0 𝑥 𝑦 | = 𝑥 3 +𝑦 3
𝑦 0 𝑥
1+𝑥 1 1
1 1 1
(b) Prove that (1+ + + ) is a factor of | 1 1 + 𝑦 1 |
𝑥 𝑦 𝑧
1 1 1+𝑧
7. (a) The price per unit p(x) at which a company can sell all that it produces is given by p(x) = 300 – 4x and that cost
function is c(x) = 300+ 52x, where x is the number of units produced. Find x so that profit is maximum.
(b) Find the area bounded by straight lines 3x-2y=6, 2x+y= 10 and x axis.
1 3 3 5
8. (a) Let A and B be two matrices such that AB = ( ) and B = ( ) Find out A.
4 7 2 4

−1 3 5
(b) If P = ( 1 −3 −5) , then show that P 2 = p and hence find matrix Q such that 4𝑃2 − 2P + Q = 0, where O is the zero matrix
−1 3 5
of order 3.

Sub: Macro Economics

Previous Year Questions(2019-2023)

B. Com. (Semester – V)

2019 Exam Question Paper

Group – A (1x2)
1. Distinguish between stock variable and flow variable.
Or, Mention two macroeconomics variables.

60
 Group – B (3x6)
2.

Explain the concept of circular flow of income in a two sector model.

Or, Calculate: (i) Depreciation, and (ii) National income from the following data:-
GNP at market price 1500
Subsidy 100
Net domestic private investment 200
Gross domestic private investment 300
Indirect business taxes 150
(All figures are in Rs. thousand crore)
3. Briefly explain the concept of money multiplier, adding short note on its derivation.

4. What is inflationary gap? Diagrammatically explain the concept of inflationary gap.

Or, What do you mean by natural rate of unemployment? Do you think that full employment means zero
unemployment?

Group – C (2x10)
5. Consider a simple Keynesian model with investment as an autonomous expenditure. Show how an increase in
investment expenditure produces a magnified impact on equilibrium income. Explain briefly the concept of balanced
budget multiplier and show that it is equal to unity under the Keynesian framework.

6. What do you mean by IS Curve? Derive IS Curve graphically.

Or, Show the process of simultaneous determination of equilibrium income and interest rate with the help of IS and
LM curves. Examine the effects of an expansionary fiscal policy on equilibrium income and interest rate.

2020 Exam Question Paper

Answer any four questions.

1. (a) Distinguish between open economy and closed economy.

(b) What do you mean by GDP deflator?
(c) From the following data, calculate GNP at factor cost:
GDP at market price 5,000
Net factor income from abroad 100
Indirect taxes 150
Subsidy 50
Gross Domestic capital formation 300
Net Domestic capital formation 200

61
2. (a) Categories the following into stocks and flows with brief justification:
(I) Losses,
(II) Wealth
(b) Explain the expenditure method of calculating GDP.
3. (a) What do you mean by ‘Consumption Function’? Define APC and MPC.
(b) Diagrammatically represent a Keynesian linear consumption function and show how it is affected when MPC
changes.

4. Derive the LM curve graphically. How will this curve be affected when the money supply increases?

5. In the IS-LM framework, examine the impact of an expansionary monetary policy. Will the effectiveness remain the
same in the liquidity framework? Justify.

6. Distinguish between demand pull and cost push inflation. Briefly explain the theory of cost push inflation.

7. How can you determine the equilibrium income in a closed economy in the presence of government participation
(consider a simple Keynesian model). Examine the stability of that equilibrium.

8. Explain the concept of High Powered Money. Derive the money multiplier in this context.

2021 Exam Question Paper

Answer any four questions

1. (a) Distinguish between stock variable and flow variable.

(b) From the following data, calculate GDPmp:
National income 58,000
Factor income paid to abroad 2,000
Factor income received from abroad 9,000
Consumption of fixed capital 1,200
Subsidies 6,000
Indirect taxes 11,000
(All figures are in crore)
(c) What is the difference between national income at current price and real national income?

2. (a) State whether the following can be include in national income counting:

(I) Gift received from the employer

(II) Expenditure on construction of house
(III) Salary received by an Indian resident in US Embassy in New Delhi
(IV) Service rendered by housewives in the national income.
(b) ‘Every real flow has a corresponding money flow in the circular flow of income'. Explain.

(c) Distinguish between ex-post and ex-ante values.

62
3. (a) Consider a Keynesian linear consumption function, and show that MPC<APC.

(b)

“Equilibrium level of output is determined where planned saving is equal to planned investment”. Explain with the
help of diagram.

4. (a) What do you understand by balanced budget multiplier?

(b) Show that in simple Keynesian model, the value of balanced budget multiplier is unity. Show that MPC+MPS=1

5. Derive IS curve graphically. How will this curve be affected when government expenditure increases? How will it be
affected if the government reduces taxes?

6. (a) What do you mean by liquidity preference?

(b) Examine the effectiveness of monetary policy in the IS-LM framework.
7. (a) Write short notes on:-
(I) Frictional unemployment
(II) Natural rate of unemployment
(b) Distinguish between voluntary and involuntary unemployment.
(c) Distinguish between narrow money and broad money.
8. (a) Explain the different concepts of inflation.
(b) Discuss the different measures of controlling inflation.

2022

MACROECONOMICS HONOURS

Group-A

1. State which of the following statements relate to macroeconomics or microeconomics.

(a) During the last 12 months average car prices have fallen.

(b) Inflation for the past 12 months has been 5.5%.

Or,

Distinguish between Final Goods and Capital Goods.

Group - B

2. Explain clearly the income method of calculating National Income. State two precautions taken while calculating
national income by the income method.

Or,

(a) Define GDP deflator.

(b) Calculate National Income from the following data:

Particulars ₹ Crore

Gross National Product at market price 500

Gross Domestic Private Investment 100
Net Domestic Private Investment 75
63
 Indirect Tax 50
Subsidy 30

3. (a) In an economy the rate of MPC and MPS is 4:1. The consumption at zero level of income is ₹50 crores.

(i) Frame a consumption equation

(ii) Find the value of investment multiplier.

(b) What is natural rate of unemployment?

Or,

(a) 'In the context of Simple Keynesian Model, the increase in income is a multiple of the increase in autonomous
investment.' — Explain.

(b) Define high powered money.

4. Assume that both saving and investment are function of income and further that marginal propensity to save is
greater than marginal propensity to invest. Show how people's desire to save will ultimately result in a lower level of
aggregate saving and income in the society.

Group - C

5. (a) Name and draw the curve which represents money market equilibrium.

(b) How does a change in money supply affect this curve?.

6. Explain the concept of inflationary gap and the basic reasons for the emergence of such inflationary gap in an
economy.

Or,

What is cost-push inflation? Explain graphically the cost-push inflation. Examine the justifiability of making the
distinction between this kind of inflation with demand-pull inflation.

64
 2023
MACROECONOMICS - HONOURS

Paper: DSE-5.1 AH
(Module - I)
Full Marks: 40

The figures in the margin indicate full marks.

Candidates are required to give their answers in their own words

as far as practicable.

Group - A

1. Which of the following are stocks or flow variables? 2

(a) Investment, (b) A hundred rupee note, (c) A family's consumption of sugar, (d) Profit
and losses of a company-

Or,

State any two differences between economic growth and economic development.
2

Group - B

2. (a) How NNP at market price can be derived from GDP at factor cost?

(b) Calculate Gross National Product at factor cost from the following data:
2+4

Particulars ₹ Crore
Net Domestic Product at market price 17,000
Net factor income from abroad - 600
Cost of consumption of fixed capital 1,000

65
 Subsidies 500
Indirect taxes 2,000

Or,

Explain clearly the expenditure method of calculating national income. Mention any two
precautions which are required to be taken while calculating national income by this
method. 4+2

3. What is meant by supply of money? In this respect distinguish between narrow money
and broad money. What do you mean by money multiplier? 2+2+2

4. Discuss the role of the policy of bank rate and open market operation in controlling
inflation. 6

Or,

How do you define inflation? Explain briefly the theory of demand pull inflation. 2+4

Group - C

5. (a) Consider the linear type of Keynesian consumption function and derive the value of
APC and MPC. Show that for every value of income APC is greater than MPC. What will
be the relation between APC and MPC if there is no autonomous consumption?

(b) Derive the shape of the saving function from the Keynesian consumption function.
Under what assumption will the consumption curve be parallel to saving curve?

(2+2+2) + (2+2)

Or,

(a) Consider a closed economy with a Government sector. Suppose that Government
expenditure and investment expenditure are autonomously given while consumption
expenditure depends on disposable income. Further suppose that Government plans to
increase its tax-revenue by increasing the amount of tax (the tax being a lumpsum tax).
Explain the effect of the increase in tax amount on the equilibrium level of income.

(b) Explain briefly the concept of Balanced-Budget multiplier and show that it is equal to
unity under Simple Keynesian model. 4+6

6. (a) Derive the curve that represents equilibrium in the commodity market.

(b) Draw the shape of this curve and indicate its slope when

(i) investment is perfectly interest elastic.

(ii) investment is perfectly interest inelastic. 6+2+2

66
 2019
CORPORATE ACCOUNTING – HONOURS
Paper : DSE 5.2A
Full Marks: 80
Group – A
Group A (5 Questions of 10 Marks each)
(3 Questions with Alternative):

Question 1 (Issue of shares):

Sunshine Ltd. issued 50,000 Equity shares of ₹ 10 each at a premium of 20%
payable as ₹ 3 on application, ₹ 6 on allotment (including premium) and the balance
in one call after 3 months from allotment. Applications were received for 80,000
equity shares. Allotment was made pro-rata to the applicants for 75,000 equity
shares, the remaining applications being rejected. Excess money on application
(eligible for allotment) was adjusted with allotment. Sourav, to whom 400 equity
were allotted, failed to pay the allotment and call money. Rahul, who applied for 750
equity shares, failed to pay call money. These shares were subsequently forfeited
and all the shares of Sourav and 50% shares of Rahul were reissued at a discount
of 10% to Sachin as fully paid up. Show the necessary journal entries (narrations
required) in the books of the company.

Question 2 (ESOP or Underwriting):

Akash Ltd. granted on 1st April, 2016 options for 2000 shares of ₹ 10, to its
employee at ₹ 60 each. The market price on that date was ₹ 150 per shares.

The vesting period was 3 years and the maximum exercise period was 6 months.
Options for 200 shares were lapsed on 14.01.18. All the options were exercised on
30.09.2019 except for 100 shares. Show the journal entries in the books of Akash
Ltd. (Narration not required.)

Or

Remo Ltd. issued a prospectus inviting applications for subscription in 10,00,000

equity shares of ₹ 10 each. The whole issue was fully underwritten by A, B, C and
D as:

A – 30%; B – 25%; C – 35% and D – 10% (including firm underwriting of A

and B) Applications were received for 8,00,000 shares of which marked
applications (excluding firm) were as follows:

A – 1,80,000; B – 2,00,000; C – 2,03,000 and D – 1,67,000.

Firm applications were : A – 60,000 and B – 40,000 shares.
Determine the liability of each underwriter.

Question 3 (Buyback or Preference Shares):

The followings information is available from the Balance Sheet of Everest Co. as on
31.03.2021:

67
 ₹

(a) Share Capital:

Subscribed and fully paid up:

1,20,000 Equity Shares of ₹10 each 12,00,000

12,00.000

(b) Surplus:

(i) General Reserve 18,00,000

(ii) Securities premium 6,00,000

24,00,000

(c) Total of secured and unsecured loan - ₹36,00,000

On the above date equity shares are bought back by the company to the extent possible as
per section 68(2) of the Companies Act, 2013. at premium of ₹40 per share. You are
required to journal entries to give the effect to buy back and also show all workings.

Or
The following balances are extracted from the books of Sun Ltd.:
10,000, 10% Preference Shares of ₹ 10 each, fully paid up; 6,000, 9% Preference
Shares of ₹ 10 each, ₹ 9 paid up; 20,000 Equity Shares of ₹ 10 each, fully paid up;
General Reserve ₹ 2,20,000; Profit & Loss account ₹ 80,000; Capital Reserve ₹
20,000; Securities Premium ₹ 20,000 (both the categories of Preference shares
were issued prior to 2012.)
Preference Shares are to be redeemed at 10% premium. For this purpose 5,000
Equity Shares of ₹ 10 each are issued at 10% premium. Holders of 500, 10%
Preference Shares are not traceable. Minimum use of free reserve is to be made for
the purpose of redemption of Preference Shares. Pass necessary Journal Entries.

Question 4 (Redemption of Debenture):

The following balances as on 31.03.2020 were extracted from the books of P. Ltd.:

12% Debentures Account ₹4,00,000

Debenture Sinking Fund Account ₹3,00,000

Debenture Sinking Fund Investment Account ₹3,00,000

(Represented by 10% ₹3,60,000 Secured Bonds)

Annual contribution to the Sinking Fund was made on 31st March each year of ₹64,000.
On 31st March, 2021 balance at bank was ₹1,60,000. On the same date interest on
investment was received. Investments were sold at 105% and the debentures were
redeemed at par. You are required to prepare 12% Debenture Account, Debenture
Sinking Fund Account and Debenture Sinking Fund Investment Account for the year
ended 31.03.2021.
Question 5 (valuation of shares Or Valuation of Goodwill):

68
From the following particulars, From the following particulars, calculate the value of an
equity share under Earnings Method and Dividend Yield Method:

5,000 Equity Shares of ₹100 each fully paid up ₹5,00,000

1,000, 8% Pref. Shares of ₹100 each fully paid up ₹1,00,000

10% Debentures ₹3,00,000

EBDIT ₹3,00,000

Depreciation ₹50,000

Income Tax Rate 30%

Standard Price Earnings ratio is 8 and dividend yield is 15%. During the last three years
the company paid equity dividend at 20%, 17% and 20% respectively.

OR
From the following information, calculate the value of goodwill as on 31.12.2018:

Equity Share Capital (Rs.10) ₹6,00,000

Preference Share Capital ₹1,00,000

Reserve and Surplus ₹90,000

10% Debentures ₹90,000

Depreciation Fund ₹50,000

Creditors ₹50,000

Total assets include preliminary expenses Rs. 20,000.

Market value of assets is Rs. 70,000 higher than the book value.

Profits for last three years after 40% tax were Rs. 95,000, Rs. 90,000 and Rs. 1,10,000
respectively for year 1, 2 and 3.

Fair return on capital employed is estimated at 10%.

Calculate the value of goodwill by capitalization of Average Profit on the basis of weighted
Average Profit (Weights are to be considered as 1, 2 and 3 for last 3 years respectively).

Group B (1 Question of 15 marks)

(1 Question with alternative):
Question 6 (Amalgamation or Internal Reconstruction):

Star Ltd. and Lite Ltd. agreed to amalgamate on and from 1st April, 2018. A new
company Starlite Ltd. was formed to take over the business of the amalgamating
companies. The Balance Sheet of Star Ltd. and Lite Ltd. as on 31st March, 2018
are given below:

Particulars Note Star Ltd. Lite Ltd.

No.
( ₹ in ( ₹ in

69
 Lakhs) Lakhs)

1. Equity and Liabilities: 1 1,100 950

Share Capital 2 420 330
Reserves and Surplus
60 30
Long-term borrowings
420 190
(10% Debentures of ₹ 100 each)
Trade Payables
2,000 1,500
Total

900 650
2. Assets: 150 50
Fixed Assets: 350 250
Tangible Assets 300 350
Non-current Investments (Investments) 300 200
Inventories (Stock)
Trade Receivables
2,000 1,500
Cash and Cash equivalents (Cash
and Bank) Total

Notes to Accounts:

Particulars Star Ltd. Lite Ltd.

( ₹ in lakhs) ( ₹ in lakhs)

1. Share Capital: 800 750

(a) Equity Share of ₹ 100 each fully 300 200
paid up (b) 12% Preference Shares
of ₹ 100 each
1,100 950

2. Reserves and Surplus

150 100
(a) Revaluation Reserve
170 150
(b) General Reserve
50 50
(c) Investment Allowance Reserve
50 30

70
 (d) Balance in statement of Profit and Loss 420 330

Additional Information:
(a) 10% Debentures holders of both companies are discharged by Starlite Ltd.
issuing such number of its 15% Debentures of ₹ 100 each so as to
maintain the same amount of interest earned before amalgamation.

(b) Preference shareholder of old companies are issued equivalent number of

15% Preference Share of Starlite Ltd. at a price of ₹ 150 per share (Face
value ₹ 100)
(c) New company will issue 5 equity shares for each equity share of Star Ltd.
and 4 Equity Shares for each equity share of Lite Ltd. The shares are to
be issued at ₹ 30 per share, having a face value of ₹ 10 per shares.
(d) Investment Allowance Reserve is to be maintained for 4 more years.
(e) Fixed assets of Star Ltd. and Lite Ltd. are to be taken at 930 Lakhs and
₹ 620 lakhs respectively. Calculate the amount of purchase consideration to be
paid to each of the companies and prepare the balance sheet of Starlite Ltd.
after amalgamation.
OR
The following figures are available from the Balance Sheet of
Jagaddhatri Ltd. as on 31.03.2019:

Liabilities
₹

70,000 Equity Shares of ₹ 10 each 7,00,000

5,000 10% Preference Shares of ₹ 100 each 5,00,000
9% Debenture 4,00,000
Accrued interest 36,000
Bank Overdraft 2,50,000
Creditors 3,34,000
22,20,000
Assets:
Land 4,00,000
Plant 2,00,000
Patent 40,000
Goodwill 1,20,000
Investment 60,000

71
 Debtors 4,00,000
Stock 4,50,000
Profit & Loss Account 5,50,000
22,20,000
A scheme of re-organisation as approved by the Court was to take effect on
01.04.2019 by adopting the following course:

(a) Preference Shares are to be written down to ₹ 75 each and Equity Shares
to ₹ 1 each. (b) Preference dividend were in arrear for 4 years. ¼th of the
total arrear dividend is to be satisfied by issue of Equity Shares of ₹ 1 each
and 3/4th of the claim is to be waived.
(c) Accrued interest on Debentures are to be paid in cash.
(d) Investments are to be sold for ₹ 1,00,000.
(e) Provision for bad debts is to be considered ₹ 9,000.
(f) Plant is valued at ₹ 1,78,000.
(g) All the intangible assets are to be written off to maximum extent.
Show the Journal Entries including narration to give effect of the above
transactions in the books of the Company.
Question 7 (Company Final Accounts):
The Trial Balance of Khadim Ltd. as on 31.03.2019 is given below:

Debit ₹ Credit ₹

72
 Land and Building 80,000 Equity Shares Capital (₹ 2,40,000
10 each) 6% Pref. Share
Plant and Machinery 80,000
capital (₹ 100 each) Profit 40,000
Furniture 6,400 & Loss A/c as on
6,000
Trade Debtors 72,000 01.04.2018 Sales
9,26,900
Salaries and Wages 1,80,000 Trade Creditors
35,200
Investment (40% current) 40,000 provision for Income Tax

Patents 90,000 for the year 2017-2018 9,400

Repairs and Maintenance 2,000 General Reserve 10,700

Interest on Debenture 2,400 12% Debenture 40,000

Vehicles 12,000 Interest on Investment 3,200

Sundry Expenses 4,000

Purchases 6,50,000
Dividend paid 12,000
Dividend Distribution Tax 2,400
Advance Tax for 20,000
current year Carriage
2,800
Inward
3,600
Cash in Hand
6,000
Cash at bank
Advance tax paid for the 9,200
year – 2017 – 2018
36,600
Opening Stock
13,11,400 13,11,400

Additional Information:
(a) Stock at the end of the year 2018-19 valued at ₹ 46,000.
(b) Depreciation is to be provided on the diminishing values of assets as
vehicles @ 20%; Building @ 5%; Machinery @ 15% and furniture @ 10%. Land
and Buildings include ₹ 16,000 as cost of land. (c) 1/10th of value of patent is to
be written off.

(d) The final assessment for 2017-18 has been complete and Income Tax
Authority has made a gross demand of ₹ 9,600.

(e) Income Tax Rate for the current year is to be taken 30%.
(f) The company resolves to transfer ₹ 5,000 to the General Reserve.
(g) Debentures were issued three years ago.

73
 Prepare (i) Statement of Profit and Loss for the year ended 31.03.2019 and (ii) a
Balance Sheet on that date. [Note no 1. Property, Plant & Equipment; 2.
Reserve & Surpluses are to be shown.]

CORPORATE ACCOUNTING – 2020 HONOURS

Group A (Answer any 4 Questions) (4 x 10 = 40 Marks)

Question 1:

Ex Ltd. had ₹ 12,00,000 in Capital Redemption Reserve, ₹ 10,00,000 in Securities

Premium and ₹ 15,00,000 credit balance in its Statement of Profit & Loss. It issued
20000 bonus shares of ₹ 100 each as fully paid at par and 5000 right shares of ₹
100 each fully paid at ₹ 125 to its shareholders. A. Ltd. received 1200 such bonus
shares and entitled to 300 right shares, which it accepted.
Show necessary journal entries (without narrations) in the books of Ex Ltd. and in
the books of A Ltd. for the above.
Question 2:
X Ltd. issued 20,000 shares of ₹ 100 each at a premium of ₹ 10 per shares. The
entire issue was underwritten as follows :
A – 10000 shares, B – 6000 shares, C – 4000 shares.
The firm underwriting was to be : A – 2000 shares, B – 1000 shares and C – 1000
shares. Shares applied for were 18000 (including firm underwriting). Marked
applications being, A – 7000 shares, B – 2800 shares and C – 3200 shares.
Calculate the liability of the underwriters (in number of shares).
Question 3:
Following figures are available from the Balance Sheet of King Ltd. as on 31.03.2019 (in
₹.) :

Equity shares of ₹ 100 each, fully paid up 30,00,000

Securities Premium 1,00,000

General Reserve 6,00,000

Balance in the statement of Profit & Loss (cr.) 10,00,000

Capital Reserve 2,00,000

Cash and Bank 5,00,000

74
The company decided to buy-back 6000 equity shares at ₹ 125 per shares. For this
purpose it decided to issue 2,000 10% Preference Shares of ₹ 100 each at 10%
premium. It also sold 3/4 th of the investments @ 75% of the face value. 4 Pass
necessary journal entries in the books of King Ltd to give effect to the above
(Narrations not required).
Question 4:
From the following particulars of K. Ltd., calculate the value of equity share under
(a) intrinsic value method and (b) earnings-yield method.
Tangible assets ₹ 11,60,000; Goodwill ₹ 1,00,000; Current Assets ₹ 3,60,000;
Discount on issue of debentures ₹ 20,000; 5% Debentures ₹ 2,00,000; Current
Liabilities ₹ 2,60,000. The net profits after tax for three years were : 2017-18 ₹
1,03,200; 2018-19 ₹ 1,04,000; 2019-20 ₹ 1,03,300. It is the practice of the
company to transfer 20% of the profit to Reserves. Normal rate of return is 10%.
Issued and paid up Equity Capital - 80000 Equity shares of ₹ 10 each fully paid-
up.

Question 5:
The following balances appear in the books of A Ltd. as on 31.03.2019 :
₹
13% Debentures Account 14,00,000
Debenture Redemption Fund Account 10,00,000
13% Debenture Redemption Fund Investment Account 10,00,000
The annual contribution to the Debenture Redemption Fund was ₹ 1,40,000. The
company sold its investments for ₹ 14,00,000 and redeemed the debentures on
31.03.2020.
Prepare 13% Debentures Account, Debenture Redemption Fund Account
and 13% Debenture Redemption Fund Investment Account up to
31.03.2020.
Question 6:
Sunshine Ltd. granted options on 1st April, 2015 for 1500 shares of ₹ 10 each at ₹
80 each, when the market price was ₹ 160 each. The vesting period was 3 years.
The maximum exercise period was 1 year. All the 1500 options were exercised by
the employees on 31st October, 2018. Show necessary journal entries to record the
above transactions in the books of the company (Narrations required).
Question 7:
The capital structure of a company as on 31.03.2020 consisted of 20000 equity
shares of ₹ 10 each fully paid up and 1000, 8% Redeemable preference shares of ₹
100 each fully paid up. Undistributed reserves and surplus were as under :
General Reserve ₹ 80,000
Balance in Statement of Profit & Loss ₹ 32,000
Cash at Bank amounted to ₹ 98,000. Preference shares are to be redeemed at a
premium of 10% and for the purpose of redemption, the directors are empowered to
make fresh issue of equity shares at par after utilizing the reserves and surplus
subject to the condition that a sum of ₹ 25,000 shall be retained in General Reserve.
Pass necessary journal entries to give effect to the above arrangements (narration

75
required) and also all relevant workings.
Question 8:
Calculate the value of goodwill under
(a) 5 years’ purchase of Super Profit method and (b) Capitalization of Average Profit
method from the following information :
(i) Capital employed as per last balance sheet ₹ 6,30,000
(ii) Normal rate of profit 10%
(iii) Net profit before tax (tax rate 35%)

1st ₹ 1,05,000 4th year ₹ 2,00,000

year

2nd ₹ 1,45,000 5th year ₹ 1,50,000

year

3rd ₹ 1,75,000
year

(iv) Non-trading income ₹ 5,000 and Interest on long-term

borrowings ₹ 10,000 on an averageincluded in the statement of
Profit & Loss.
(v) Fixed assets revalued by ₹ 20,000 more than the balance sheet value.
Use simple average method for determining average profit and ignore depreciation
on increased value of fixed assets.

Group B (1 Question of 15 marks)(1 Question with

alternative):
Question 9:
Care Ltd. invited applications for 10000 shares of ₹ 10 each at 10% premium payable
as – on application ₹ 4; on allotment ₹ 3 (including premium) and balance on one
call. Applications were received for 17000 shares and after rejecting applications for
1000 shares the company issued all the shares on proportionate basis. All amount
due was received except the following :

iii. Mr. A holding 500 shares failed to pay allotment and call money.
iv. Mr. B holding 400 shares failed to pay call money.
All these shares were forfeited after call. All forfeited shares were re-issued to Mr.
C as fully paid @ ₹ 8 per shares.

Show necessary journal entries (including cash transactions) in the books of Care
Ltd. (Narrations not required)

Question 10:
(h) State the conditions to be satisfied as per AS 14 in case of amalgamation in

76
 the nature of merger.

(i) Distinguish between pooling of interest method and purchase method of

accounting for amalgamation in the books of transferee company.

Question 11:
The Balance Sheet of B. Ltd. as on 31.03.2021 is as below:

Particulars ₹

I. EQUITY & LIABILITIES:

1.Shareholder's Fund
(a) Share Capital:
(i) Equity share capital (₹10 each) 500000
(ii) 7% Cumulative Preference share capital (₹100) 100000
(b) Reserve and Surplus:
(i) Balance in Statement of Profit and Loss -500000
2. Non-Current Liabilities:
(a) Long term Borrowings (8% Debentures) 100000
3. Current Liabilities:
(a) Trade Payables (Trade Creditors) 500000

Total 700000

II. Assets:
1.Non-Current assets:
(a) Fixed Assets:
(i) Tangible Assets:
Buildings 100000
Machinery 400000
(ii) Intangibles (Goodwill) 40000
2.Current Assets:
(a) Inventories (Stock) 60000
(b) Trade Receivables (Sundry Debtors) 90000
(c) Cash and Cash Equivalents (Bank) 10000

Total 700000

Note: Contingent liability for Arrear Preference Dividend for 3 years.

A scheme of internal reconstruction is approved by the court in the following lines:

(a) Paid up value of equity share capital is to be reduced to 10%;

77
(b) Preference shareholders are to be issued 8%, 7 Preference shares of ₹10 each in
exchange of each existing preference share.

(c) Preference shareholders are to be issued similar preference share for one-third of arrear
dividend. The balance of arrear dividend are to be cancelled.

(d) 8% Debenture holders agreed to sacrifice 20% of their claim for increase of interest to
10%.

(e) Building is valued at ₹1,50,000.

(f) Losses and intangible assets are to be written off.

Pass necessary journal entries (without narration) giving effect to the above scheme and
prepare a revised Balance Sheet of the company.

Question 12:
Following is the Trial Balance of Zoom Ltd., a trading Concern,as at 31.02.2020:

Debit Balance ₹ Credit Balance ₹

Stock on 1.4.2019 186000 Sales 1190000

Purchases 720000 Return Outward 10000

Return Inward 12000 10% Bank commission 60000

Wages 110000 Sundry Creditors 50000

Carriage inward 5000 Bills Payable 12000

Sundry Manufacturing Profit &loss balance

Expenses 18000 (Cr) (1.4.2019) 26000

Interest on Bank lone 5000 General Reserve 12000

Office salaries 18000 Securities Premium 24000

Audit Fees 9000 Share Capital 400000

Directors'
remuneration 32000

Freehold Premises 164000

Plant & Machinery 130000

Furniture and fittings 42000

Patent 20000

Interim dividend paid 20000

Sundry Debtors 96000

Bills Receivable 29000

Cash at Bank 85000

Advance tax for 2019-

20 83000

78
 1784000 1784000

You are required to prepare the Statement of Profit & Loss for the year ended 31.05.2020
and the Balance Sheet as at that date after taking into account the following:

(a) Stock on 31.03.2020 was valued at ₹1,25,000

(b) Bank loan was taken on 01.04.2019.

(c) Depreciation is to be provided on Plant and Machinery @ 20% and on Furniture and
Fittings @10%.

(d) 1/4th of Patents is to be amortized.

(e) Provision for tax is to be maintained @ 30%

(f) 10% of profit for the year is to be transferred to General Reserve.

(g) Ignore tax on dividend.

CORPORATE ACCOUNTING – 2021 HONOURS

79
 Group A (Answer any 4 Questions) (4 x 10 = 40 Marks)(Out of 8)
Question 1:
The Balance Sheet of X Ltd. reflected the following balances :₹

Equity shares of ₹ 10 each, ₹ 8 per share 8,00,000

(called up and paid up)

Capital Redemption Reserve 1,50,000

Securities Premium (fully realized) 50,000

Surplus in statement of Profit and Loss 1,60,000

Capital Reserve (fully realized in cash) 80,000

General Reserve 4,80,000

The Board of Directors resolved the following :

(i) To make a call of ₹2 per share to the equity shareholders.
(ii) To issue three Bonus shares for every five equity shares held.
(iii) To utilise General Reserve as minimum as possible.
(iv) To issue 40000 Right shares of ₹10 each fully paid up at ₹13
per share to its equity shareholders.

Assuming that all call moneys were collected in due time and the right
shares were duly taken up by the shareholders, pass necessary journal
entries in the books of the company. [Narration not required]

Question 2:

P Ltd. granted option for 8000 equity shares on October 1, 2016 at ₹80 (Face value ₹10
each), when the market price was ₹70. The vesting period was 2½ years. The maximum
exercise period was 1 year. All the options were exercised by the employees on
30.06.2019.

Show necessary journal entries to record the above transactions in the books of the
company [Narrations required].

Question 3:
A Ltd. has authorized capital of ₹ 50,00,000 divided into 100000 equity shares of ₹
50 each. The company issued for subscription 50000 shares at a premium of ₹ 10
each. The entire issue was underwritten as follows : X — 30000 shares (firm
underwriting – 5000 shares)

Y — 15000 shares (firm underwriting – 2000 shares)

Z — 5000 shares (firm underwriting – 1000 shares)

80
Out of total issue, 45000 shares including firm underwriting, were subscribed.
The following were the marked forms including firm : X – 15600 shares; Y – 10400
shares and Z – 4000 shares. Calculate the total liability (in number of shares) of
each underwriter considering firm applications as marked.

Question 4:

The following figures are available from the Balance Sheet of Blue Chip Ltd. as on
31.03.2020 :

240000 equity shares of ₹ 10 each fully paid up 24,00,000

General Reserve 36,00,000

Securities Premium 12,00,000

14% Debentures 50,00,000

Sundry Creditors 22,00,000

Non-Current Assets (Tangible) 72,00,000

Current Assets 72,00,000

The company intends to buy back 40000 equity shares at a premium of ₹ 30 per
share. State whether the company can do so and if yes, pass journal entries in the
books of the company. [Narration not required]

Question 5:
The following balances appeared in the books of Syska Ltd. As on 01.04.2020 :
₹

13% Debentures Account 7,00,000

Debenture Redemption Fund Account 6,35,000

Debenture Redemption Fund 6,35,000

Investment (Nominal Value = Cost)

The company sold its investments for ₹ 7,50,000 and redeemed the debentures at par
on 01.04.2020. Prepare 13% Debentures Account, Debenture Redemption Fund

81
 Account and Debenture Redemption Fund Investment Account in the books of the
company.

Question 6:
The Capital structure of White Ltd. is given below:
₹
Equity share capital (₹ 100 each) 18,00,000
12% Pref. Share Capital (₹ 10 each) 9,00,000
10% Debentures 13,00,000
13% Term Loan 24,00,000
Reserves and Surplus 6,00,000
The average profit of the company before payment of interest and income tax is ₹
14,00,000. The income tax rate is 25%. Calculate the value of equity shares of the
company assuming Price-Earning Ratio is 10.

Question 7:
The Capital and reserves & Surpluses of ABC Ltd. As on 31.3.2021 was as follows(in Rs.):

10000 Equity Shares of ₹10 each 100000

1000,10% Preference Shares of ₹ 100 each 100000
Less: Calls in arrear (on 100 shares @₹20) 2000 98000

400,8% Preference Shares of ₹ 100 each.₹60 Called 24000

Securities Premium 12000
Capital Redemption Reserve 42000
Reserve Fund 45000
Surplus in Statement of Profit and loss 12000

On 31.03.2021, investments standing in the books at Rs.20,000 were sold for Rs.18,000.
On the same date it was resolved to redeem the eligible preference shares at 10%
premium by issuing sufficient equity shares at 20% premium, subject to leaving a
balance of Rs.10,000 in Reserve Fund. Give necessary journal entries assuming that all
transactions were immediately given effect and payments were made to the Preference
Shareholders. (Narration not required)
Question 8:
Balance Sheet of G.Ltd. as on 31.3.2021 included in the following.

Particulars ₹ ₹

Share Capital :
Equity Share Capital (₹ 10 each Fully
Paid ) 300000
10% Preference Share Capital 100000 400000

Reserve &Surpluses :

82
 General Reserves 24000
Capital Redemption Reserve 30000
Statement of Profit & Loss 36000 80000

Trade Payables 30000

Following information are also available:

(i)Assets include a non-trade investment at Rs.15,000.

(ii) Market Value of other assets is Rs.40,000 more than the book value.

(iii) Profits before tax for last three years were: 2018-2019: Rs.58,000, 2019-2020:
Rs.64,000 and 2020-2021: Rs.75,000.

(iv) Fair Return on Capital Employed in this type of business is estimated at 10%.

(v) In year 2018-2019, there was an accidental loss of Rs.6,600.

(vi) Profits of 2019-2020 and 2020-2021 include Rs.2,000 and Rs.1,600 as income from
non trade investments.

You are required to calculate the value of Goodwill of G. Ltd. based on above using 4
years purchase of super profit (assume applicable rate of income tax to be 20%)

Group B (2 Question of 20 marks)(Out of 4):

Question 9:
Televista Ltd. invited applications for 20000 Equity Shares of ₹ 10 each at a
premium of ₹ 2 per share, payable ₹ 3 per share on application, ₹ 5 per share on
allotment (including premium) and the balance on first and final call. Applications
for 27000 shares were received. It was decided :

(a) to refuse allotment to the applicants for 3000 shares;

(b) to allot in full to the applicants for 4000 shares;

(c) to allot the balance of the available shares pro-rata among

the other applicants; and (d) to utilise excess application
money in part payment of allotment money.

Mr. X holding 250 shares, to whom shares were allotted on pro-rata basis, failed
to pay the amount due on allotment and call. Mr. Y holding 150 shares to whom
full allotment was made, also failed to pay allotment and call money. These shares
were forfeited after call. 150 forfeited shares of Mr. X and 100 forfeited shares of
Mr. Y were reissued at ₹ 9 per share as fully paid up to Mr. Z.

Show the necessary journal entries including cash transactions in the books of
Televista Ltd. [Narrations not required]

Question 10:
Following are the items appearing in the Balance Sheet of X Ltd. as on 31.03.2020:

83
 Particulars ₹

Share Capital:
6,000, 10% Preference Shares of ₹100 each 600000
1,20,000 Equity Shares of ₹10 each 1200000
Reserve & Surplus:
General Reserve 500000
Balance in Statement of Profit & Loss -850000
2. Non-Current Liabilities:
2,000, 6% Debenture of ₹100 each 200000
3.Current Liabilities:
Trade Payables 650000

Total 2300000

II. Assets:
1.Non-Current assets:
(a) Property, Plant and Equipment 1380000
2.Current Assets:
Inventories 390000
Trade Receivables 210000
Cash and Cash Equivalents 320000

Total 2300000

A scheme of reconstruction was adopted with a reduction of capital which was approved by
the tribunal on the following terms:

(a) Equity shares to be converted into same number of equity shares of such face value as
to reduce the paid-up equity share capital by 30%.

(b) Preference shares to be converted into same number of preference shares of ₹60 each,
fully paid up.

(c) Balance of General Reserve to be utilised in full.

(d) Debentures to be converted into such number of 8% Debentures of ₹50 each as to

generate the same amount of interest as before.

(e) Property, Plant and Equipment and Inventories are to be reduced by ₹5,52,000 and
₹38,000 respectively.

(f) Arrears of preference dividend to be waived in full. The deficit balance in the Statements
of Profit and Loss to be written off in full.

(g) The following are to be given effect:

(i) Unrecorded debtors ₹3,34,000

(ii) Unrecorded creditors ₹80,000 to be paid in full

84
(iii) Reconstruction expenses ₹11,500 to be paid.

Pass necessary journal entries (without narration) and the resultant Balance sheet after
the capital reduction.
Question 11:
BT Ltd. is absorbed by the CT Ltd. on 01.04.2021, on which date the assets and
liabilities of BT Ltd. were as follows:

Particulars ₹ ₹

I. EQUITY & LIABILITIES:

1.Shareholder's Fund
(a) Equity Share Capital (₹10 each fully paid) 80,000
(b) Reserve and Surplus:
General reserve 40,000
Surplus Balance in Statement of Profit and Loss 32,000 72,000

2. Non-Current Liabilities: 10% Debenture (₹100

each) 50,000
3. Current Liabilities: Trade Payables 13,000

Total 2,15,000

II. Assets:
1.Non-Current assets:
(a) Property, Plant and Equipment:
Tangible Assets: Land and Building 1,20,000
Plant and Machinery 36,000
2.Current Assets:
Inventory 40,500
Trade Receivables 18,000
Less: Provision for doubtful debt 900 17,100

Cash and Bank 1,400

Total 2,15,000

The consideration payable by CT Ltd. was:

(a) A cash payment of ₹ 105 for every debenture in BT Ltd.
(b) Exchange of 3 shares in CT Ltd. of ₹ 5 each (to be issued at ₹ 6 each) for
every share in BT Ltd.

(c) A further payment in cash at ₹ 4 for each share in BT Ltd.

85
 (d) The expenses of liquidation ₹ 3,000 were paid by the BT Ltd.
Calculate the purchase consideration, and show Realisation A/c, CT Ltd. A/c,
Equity Share Holders A/c and Bank A/c in the books of BT Ltd to close its
books.

Question 12:
The following is the Trial Balance of Y.Ltd. as on 31.3.2020:

Particulars Debit ₹ Credit ₹

Stock (1.4.2019) 160000

Purchases and sales 500000 800000

Purchases return 10000

Carriage inward 2100

Wages 50000

Salaries 20000

Discount received 8000

Furniture & fixtures 40000

Rent 10000

Expenses 16500

balance Profit & Loss (1.1.19) 50000

Paid up Capital 200000

Interim dividend paid 16000

dividend distribution tax on Interim dividend 3290

Debtors and creditors 52400

Plant & Machinery 246000

General reserve 20000

Patent 8000

Bill Receivable and bills payable 2710 8000

1127000 1127000

Prepare a statement of Profit and Loss for the year ended on 31.03.2020 and a Balance
Sheet as at that date as per schedule III of Companies Act. 2013 taking into consideration
the following adjustments:

(a) Stock at on 31.03.2020 was Rs.1,96,000.

(b) Depreciate Plant and Machinery @ 15%, Furniture and Fittings @ 10%.

(c) Make a provision for doubtful debts @ 10%.

(d) Provision for tax is to be made @ 40% and the rate of Dividend distribution tax is
20.56%. (e) Patents have a life of 5 years.

(f) The directors proposed a dividend @ 10% for the year ended 31.03.2020

86
excluding Interim dividend and decided to transfer Rs.15,000 to General
Reserve.

2022

CORPORATE ACCOUNTINGHONOURS

Group - A

1.Pearson Ltd. issued to public 30,000 ordinary shares of ₹100 each at par.

Amount payable on each share is as follows: ₹25 on application, ₹40 on allotment, ₹20 on
first call and balance on final call. The company received from the public applications for
20,000 shares. Mr. Soham, holding 200 shares failed to pay first and final call money and
Mr. Debjit, holding 400 shares could not pay final call. As a consequence, these 600 shares
were forfeited after final call.

Show the journal entry for forfeiture of shares. Also pass the entry for re-issue of forfeited
shares in the following independent cases (Narration not required):

Case (a): 500 shares out of those forfeited (including all those of Mr. Soham) were re-issued
to Mr. Joy at ₹90 per share, as fully paid-up.

Case (b): All forfeited shares were re-issued to Mr. Joy at ₹110 per share as fully called-up
and

paid-up.

2. Big Ltd. granted options for 5,000 shares (FV ₹10) on 01.04.2019 to its employees at ₹70
1
each. On the date of grant market price was ₹120 each. Vesting period is 2 years and the
2
exercise period is 3 months.

300 and 500 options were lapsed on 01.06.2019 and on 15.02.2020 respectively.

Within 31.12.2021 employees exercised options for 4,000 shares and the balance options
were lapsed. Market value of shares as on 31.12.2021 (the date of acceptance of option) was
₹190.

Show necessary journal entries (narration not required) for the years 2019-20, 2020-21 and
2021-22.

Or,

Sunny Ltd. issued 4,00,000 shares of ₹10 each at a premium of ₹20. The entire issue was
underwritten as follows:

Divya: 1,20,000 shares (Firm underwriting 9,000) Mou: 60,000 shares (Firm underwriting 6,000)
Rohan: 1,80,000 shares (Firm underwriting 12,000) Sneha : 40,000 shares (Firm underwriting
3,000)

Total subscriptions received by the company (excluding firm underwriting) were 3,60,000 shares.

The marked applications (excluding firm underwriting) were as follows:

Divya : 75,000; Mou: 47,000; Rohan: 1,25,000 and Sneha : 43,000

87
Also, the underwriting contract provides that credit of marked applications and benefit of
firm underwriting is given to individual underwriters. Determine the liability of each
underwriter (in number of shares).

3. Given below are the extracts of Balance Sheet of Adri Limited as on 31st March, 2022:

Particulars Amount in ₹
12% Redeemable Preference Share Capital 10,00,000
Calls in arrears (Redeemable Preference Shares) 20,000
General Reserve 7,00,000
Securities Premium 80,000

It is provided that:

(i) Preference Shares are of ₹100 each fully-called, due for immediate redemption at a premium of
5%.

(ii) Calls-in-arrears are on account of final call on 1000 shares held by four members whose

whereabouts are not known.

(iii) Balance of General Reserve and Securities Premium to be fully utilised for the purposes
of redemption and the shortfall to be made good by issue of equity shares of ₹10 each at
per.

(iv) The redemption of preference shares was duly carried out.

You are required to pass the necessary journal entries (narration not required) to give effect
to the above redemption.

Or,

The following balances are extracted from the books of BB Ltd. :

Equity shares: 40,000 of ₹10 each, fully paid

Securities Premium ₹ 3,00,000

General Reserve ₹ 2,00,000

Statement of Profit and Loss (cr.) ₹ 3,20,000

Total Debt: ₹ 2,00,000

The company decided to buy-back 25% of its equity shares at the maximum possible price.

You are required to calculate the maximum possible price that can be paid and pass necessary
journal entries (narrations not required) assuming that the shares were bought back at that
price.

4. The following balances appeared in the books of Prayash Ltd. on 01.04.2021 :

Sinking Fund Account ₹ 50,000

Sinking Fund Investment Account ₹ 48,000

88
(10% Government Securities : Nominal Value ₹ 45,000)

12% Debentures ₹ 1,00,000

On 01.04.2021, the company sold ₹30,000 Government securities at 110% and utilized the
amount to redeem part of the debentures at a premium of 10%.

Show Debentures Account, Sinking Fund Account and Sinking Fund Investment Account.

5. From the following information, compute the value of Goodwill using 'Capitalization of
Average Profit':

(a) Capital Employed as per Balance Sheet ₹14,50,000

(b) Revaluation of assets showed an increase of ₹1,00,000

(c) Normal rate of profit 12.5%

(d) Profit after tax@ 25% :

Year ended 31.03.2019 31.03.2020 31.03.2021

PAT (₹) 1,95,000 2,25,000 2,40,000

(e) Non-trading income of ₹10,000 is included in the profit of each of the above years and
debentureinterest of ₹30,000 and ₹20,000 were included in the statement of Profit and Loss
for the year ended 31.03.2019 and 31.03.2020 respectively.

(f) Use weighted average profit. Weights to be taken are 1, 2, 3 for the year 2018-2019,
2019-2020 and 2020-2021 respectively.

Or,

The following particulars relate to Hyundai Ltd. as on 31.03.2022:

₹ ₹
(a) Paid up share capital: (b) Reserve and surplus:
20,000 Equity shares of 2,00,000 General Reserves 90,000
₹10 each fully paid-up
10,000 Equity shares of 70,000 (c) Trade Payables 46,000
₹10 each, ₹7 paid-up
2,000, 10% Preference share of 2,00,000
₹100 each fully paid-up

Beside the above, the following further information are available as on 31.03.2022 :

(i) Value of fixed assets to be raised by ₹60,000, whereas inventory value to be reduced by ₹
24,000. (i) Liability for expenses ₹12,000 is yet to be recorded in the books of accounts.

Calculate value per Equity share and Preference share of Hyundai Ltd. when preference
share are participating. Ratio of participation in surplus assets between equity and
preference shareholders is 2:1.

Group- B

6. The following is the Trial Balance of Atul Ltd. as on 31st March, 2022:

89
 Debit Balances ₹ Credit Balances ₹
Purchases 82,95,000 Sales 1,25,87,000
Wages and Salaries 12,72,000 Commission 72,500
Rent 2,20,000 Equity Share Capital 10,00,000
Rates and Taxes 50,000 General Reserve 10,00,000
Selling and Distribution Surplus (P & L A/c) on
Expenses 4,36,000 01.04.2021 8,75,500
Directors Fees 32,000 Securities Premium 2,50,000
Bad Debts 38,500 Term Loan from Public
Interest on Term Loan 8,05,000 Sector Bank 1,02,00,000
Land 24,00,000 Trade Payables 55,08,875
Factory Building 36,80,000 Provision for Depreciation :
Plant and Machinery 62,50,000 On Plant 9,37,500
Furniture and Fittings 8,25,000 On Furniture and Fittings 82,500
Trade Receivables 64,75,000 On Factory Building 1,84,000
Advance Income Tax Paid 37,500 Provision for Doubtful 25,000
Stock (1st April, 2021) 9,25,000 Debts Bills Payable 1,25,000
Bank Balances 9,75,000
Cash on hand 1,31,875
____________ ____________
Total 3,28,47,875 Total 3,28,47,875

Following information is provided:

(a) The Authorized Share Capital of the Company is 4,00,000 Equity Shares of ₹10 each.
The Company has issued 1,00,000 Equity Shares of ₹10 each.

(b) Provide Depreciation @ 10% per annum on Plant and Machinery, 10% on Furniture and
Fittings and 5% on Factory Building on written down value basis.

(c) Closing Stock as on 31st March, 2022 is ₹11,37,500.

(d) Make a provision for Doubtful Debts @ 5% on Debtors.

(e) Make a provision of 30% for Corporate Income Tax.

(f) Trade Receivables of ₹85,600 are outstanding for more than six months.

(g) The Board declared a dividend @12.5% on Paid up Share Capital on 10th April, 2022.

You are required to prepare Balance Sheet as on 31st March, 2022 and Statement of Profit
and Loss with Note to Accounts for the year ending 31st March, 2022 as per schedule III of
the Companies Act, 2013. Ignore previous years' figures.

7. M. Ltd. agreed to acquire the business of N Ltd. as on 31.03.22. The summarized

Balance Sheet as on that date was as follows:

Equity and Liabilities (₹)

Equity Share Capital (₹10 each fully paid) 3,00,000
General Reserve 1,00,000
Balance of Profit and Loss Statement 40,000
12% Debentures 50,000
Trade Payable (Creditors) 20,000

____________
Total 5,10,000

Assets

90
 Land and Building 1,00,000
Plant and Machinery 2,20,000
Goodwill 50,000
Trade Receivables (Debtors) 30,000
Inventories 80,000
Cash and Cash equivalent 30,000

___________
Total
5,10,000

The consideration payable by M Ltd. was agreed as follows:

(i) a cash payment equal to ₹5.00 for each equity share.

(ii) the issue of 45,000, ₹10 fully paid share of M Ltd. having an agreed value of ₹12.50 per
share.

(iii) Debenture holders of N Ltd. to be issued 5,000 equity shares in M. Ltd. of ₹10 each at
25%

premium.

While computing the agreed consideration, M Ltd. valued the assets of N Ltd. as: Land and
Building at ₹1,68,000, Plant and Machinery at ₹4,50,000, Stock in Trade at ₹70,000 and
Debtors at face value subject to an allowance of 4% to cover doubtful debts. Realisation
expenses ₹14,000 were paid by N. Ltd.

You are required to:

(a) Calculate the purchase consideration.

(b) Show necessary Realisation Account and Shareholders Account in the books of N Ltd.

(c) Give journal entries to be passed in the books of M Ltd. (narrations not required).

Or,

Happy Ltd. had decided to reconstruct the Balance Sheet since it had huge accumulated
losses and overvalued Plant and Machinery. The following is the Balance Sheet of the
company as at 31.03.2022 before reconstruction:

Equity and Liabilities (₹)

Equity Share Capital (₹10 each fully paid) 6,00,000
12% Preference Share Capital (₹100 each fully paid) 4,00,000
Balance of Profit and Loss Statement (1,65,000)
10% Debentures 2,50,000
Accrued Debenture Interest 25,000
Bank Overdraft 1,75,000
Trade Payables 45,500
__________
Total13,30,500

Assets
Land and Building 5,00,000
Plant and Machinery 2,75,000
Furniture 32,500

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 Goodwill 1,50,000
Trade Receivables 46,000
Inventories 2,63,000
Cash and Cash equivalent 64,000
__________
Total 13,30,500

Note:The preference dividend are in arrear for 3 years.

The scheme of reconstruction is submitted as follows:

(i) Equity shares are to be reduced to shares of ₹5 each, fully paid.

(ii) Against every preference share 1 new 15% Preference Share of ₹50 each fully paid and 5
Equity Shares of ₹5 each, fully paid is to be issued.

(iii) 1,00,000 Equity Shares of ₹5 each fully paid are to be issued at par in cash.

(iv) 1/3rd of the arrear dividend on preference share to be paid in cash in full settlement of
their arrear dividend.

(v) Debentures (along with their unrecorded interest of ₹25,000) are to be settled by the
issue of 12% new Debentures of ₹2,00,000.

(vi) Losses and intangibles are to be written off in full and overvalued assets are to be
written down. Expenses in connection with the reconstruction amounted to ₹7,000.

You are required to:

(a) Show necessary journal entries (narrations not required) in the books of Happy Ltd.; and

(b) the new Balance Sheet of the company after the reconstruction.

CORPORATE ACCOUNTING – 2019 GENERAL

Group A (5 Questions of 10 Marks each) (3 Questions with
Alternative):Question 1 (Issue of Shares)

The directors of KPL Industries Ltd. have invited application for 72,000 Equity
Shares of ₹ 10 each to be issued at 20% premium. The money payable on shares is
as follows:

01.05.18: On application ₹ 2
01.06.18: On allotment ₹ 5 (including premium of ₹ 2)
01.01.19: First and Final Call ₹ 5
Applications were received for 90,000 shares and allotment was made pro-rata to the
applicants. All shareholders are paid their dues within the due time except Mr. Ranjit,
to whom 3,600 shares were allotted, failed to pay the allotment and call money. His
shares are forfeited fulfilling the statutory provisions.

Subsequently these shares are re-issued to Animesh as fully paid shares

at ₹ 8 per share on 01.03.19. Show the necessary journal entries
(including cash transaction)

Question 2 (Underwriting or Bonus Shares)

Zenith Ltd., issued 3,00,000 shares of ₹ 10 each at a premium of ₹ 2. The entire issue
was underwriting by X, Y and Z in the ratio of 3:2:1. Their firm underwriting was as

92
follows:

X : 35,000, Shares Y : 20,000 shares, Z : 22,500 shares.

The total subscription excluding firm underwriting & including marked
application were for 1,60,000 shares. Marked application received were as follows:

X : 45,000, Shares Y : 22,500 shares, Z : 17,500 shares.

The underwriting contract provided that credit for unmarked applications to be given
to the underwriters in proportion to the shares underwritten and benefit of firm
underwriting is to be given to all Underwriters. You are required to compute the
underwriter’s liability in number ofshares.

Or
(a) Issue of Bonus Shares
Following is the extracts of Balance sheet of BPA Limited as on 31.03.19:

Share capital: ₹ 1,20,000

12,000, 12% preference shares of ₹ 10 each fully paid

80,000 Equity Shares of ₹ 10 each fully paid ₹ 8,00,000

Reserve and Surplus

Capital Redemption Reserve ₹ 2,50,000

Securities Premium ₹ 1,00,000

Revaluation Reserve ₹ 1,50,000

General Reserve ₹ 1,00,000

Profit and loss balance (Cr.) ₹ 3,00,000

Company has decided in its General Meeting to capitalize its reserve by issue of
1 fully paid bonus share for every 2 equity shares held after fulfilling the legal
formalities. Pass the journal entries to give the effect of the above decision.
(b) Employee Stock Option Plan

On 01.04.17 Zed Pharmaceuticals Ltd. had granted 2,000 shares to the

employees under stock option scheme at ₹ 80 (Face value ₹ 10; Market value ₹
120). The company allowed 2 years for vesting the option and 1 year maximum
exercise period. Employees exercised all the option on 31.12.19. Show necessary
journal entries for the above transactions.

Question 3( Redemption of Preference shares)

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 The Balance Sheet of Gyan Ltd.as on 31.3.2021 is as follows.

Particulars ₹

I. EQUITY & LIABILITIES

1.Shareholder's Fund
(a)Share Capital
Equity Share Capital of ₹ 10 each fully paid 200000
10% Preference Share Capital of ₹ 100 each
fully paid 300000
(b)Surplus
General Reserve 120000
Balance in Statement of Profit & Loss 400000
2.Current Liabilities:
Trade payable 80000

Total 1100000

II.Assets:
1.Non Current Assets
(a)Property, Plant and Equivalent-Tangible Assets: 500000
(b)Non-Current Investment 300000
2.Current Assets:
(a)Cash and Cash Equivalents(Cash at Bank) 300000

Total 1100000

In the board meeting it was decided

(i)To sell investment at a Profit of ₹10,000.

(ii) To redeem the preference shares at 10% premium.

(iii) Utilize the reserve and profit & loss balance after maintaining balance in Statement of
Profit and Loss ₹3,00,000 for redemption.

(iv) To issue minimum number of equity shares of ₹ 10 each for the purpose of redemption.

You are required to pass necessary journal entries to record the above transactions.
Or
(Buy Back of a Share)
The Balance Sheet of Pragyan Ltd. as on 31.03.2021 is as follows:

Particulars Amount (₹)

I. EQUITY & LIABILITIES:

1.Shareholder's Fund

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 (a) Share Capital:
2,50,000 Equity Share Capital of ₹10 each fully paid 2500000
2,000, 10% Preference Share Capital of ₹100 each fully
paid 200000
(b) Surplus:
Capital Reserve 1000000
Securities Premium 600000
General Reserve 3000000
Profit and Loss Balance 400000
3. Current Liabilities:
Trade Payables 1500000

Total 9200000

II. Assets:
1.Non-Current Assets:
(a) Property, Plant and Equipment - Tangible 4700000
(b) Non-Current Investment 3000000
2.Current Assets:
Cash and Cash Equivalents 1500000

Total 9200000

The company passed a resolution

(a) To buy back 20% of its equity capital @ ₹50 per share.
(b) To sell all of its investment for ₹29,00,000.
You are required to pass the necessary journal and prepare
a Balance Sheet.

Question 4 (Redemption of Debenture)

The following balances appeared in the books of X Ltd. as on 31.03.2018:

13% Debentures Account ₹7,00,000

Debenture Redemption Fund Account ₹5,00,000

13% Debenture Redemption Fund Investment Account ₹5,00,000

(Nominal = Cost)

The annual contribution to the Debenture Redemption Fund was ₹70,000. The
company sold its investments were sold for ₹7,00,000 and redeemed the debentures
on 31.03.2019. Prepare 13% Debentures Account, Debenture Redemption Fund
Account and Debenture Redemption Fund Investment Account up to 31.3.2019.
Question 5(Valuation of Goodwill
Following information is extracted from the records of XYZ Ltd. Calculate the
value of Goodwill as on 31.03.2019:

95
 ∙ Equity Share Capital (₹ 10) ₹ 8,00,000
∙ 11% Pref. Shares Capital ₹ 2,00,000
∙ Reserve and Surplus ₹ 90,000
∙ 12% Debentures ₹ 1,00,000
∙ Creditors ₹ 70,000
∙ Non-trade investment ₹ 80,000
∙ Profits for last three years before tax were: 2016-17: ₹ 1,60,000; 2017-18: ₹
2,20,000 and 2018-19: ₹ 2,40,000 respectively.
∙ Non-trade income of ₹ 6,400 (before tax) was included on an average
for each of these years. ∙ Tax rate 40%

∙ Fair return on Capital Employed in this type of business is estimated at 12%

∙ Goodwill is to be valued on the basis of 4 years purchase of Super Profit. (Take simple
average profit.)

Or

(Valuation of Shares)
The following particulars are available in relation to Chamling Ltd:
∙ Equity Share Capital: 5,000 Equity Shares of ₹ 20 each.
∙ Preference Share Capital: 1,000. 8% Preference Shares of ₹ 100 each
∙ Total assets (Market value ₹ 3,00,000) ₹ 2,50,000.
∙ Current Liabilities ₹ 18,000
∙ Average trading Profit after tax ₹ 40,000
∙ Amount transfer to General Reserve 15%
∙ Normal rate of return on equity shareholders in market 10%.

Calculate:
(a) Intrinsic value per equity share
(b) Yield value of equity share
(c) Fair value of share

Group B (1 Question of 15 marks)(1Question with

alternative):

Question 6 (Company Final Account)

Following is the Trial Balance of JK.LTD. as on 31.3.2019 :

Particulars Dr. ₹ Particulars Cr. ₹

Share Capital (₹10

Machinery 200000 each) 200000

Furniture 100000 Sundry Creditors 50000

Land 300000 Sales 870000

96
 12% investments (non-current)
(Purchased 1. 4. 18 Nominal value Rs.
12000) 130000 Bills Payable 25000

Bills Receivable 10000 Interest Received 10400

Sundry Debtors 30000 General Reserve 75000

Surplus Balance
Purchases 500000 (1.4.18) 87600

Stock on 01.04.18 40000 10% debenture 100000

Salaries 35000 Bank Overdraft 15000

Prov. For
Rent 15000 depreciation :

General Administrative 100000 On Machinery 40000

Expences 2000 On furniture 20000

Cash 20000 Bad Debt recovery 1500

Bank 10000

Debenture interest 2500

Bad Debt

1494500 1494500

You are required to prepare the Statement of Profit and Loss for the year ended
31.3.2019and the Balance Sheet as on that date after considering the following in the books
of JK.Ltd

(a) Unsold stock on 31.03.19 at cost Rs.20,000.

(b) Depreciation to be charged on Machinery @ 10% and on Furniture @ 5% p.a. on

diminishing balance method.

(c) Rate of Income tax is 30% (ignore surcharge and cess).

(d) 10% profit transferred to General Reserve.

(e) Salaries outstanding Rs.1,500.

Ignore corporate dividend tax.

Question 7(Amalgamation)

(a) What do you understand by Purchase Consideration as per AS-

14?
(b) Sun Ltd. agreed to take over Moon Ltd. on Apr. 1, 2019. The terms and
conditions of take over were as follows:
∙ Sun Ltd. issued 56,000 equity shares of ₹ 100 each at a premium of ₹ 15
per share to the equity shareholder of Moon Ltd.

∙ Cash payment of ₹ 39,000 was made to equity shareholders of Moon Ltd.

∙ 24,000 fully paid preference share of ₹ 50 each issued at par to

97
 discharge the preference shareholders of Moon Ltd;

∙ The 8% Debentures of Moon Ltd. (₹ 78,000) converted into equivalent

value of 9% Debentures in Sun Ltd.;

∙ The actual cost of liquidation of Moon Ltd. was ₹ 23,000. Liquidation cost
is to be reimbursed by sun Ltd to the extent of ₹ 15,000.

You are required to:

(i) Calculate the amount purchase consideration as per the provisions of AS-14;
and
(ii) Pass Journal Entry relating to discharge of purchase
consideration in books of Sun Ltd.

or

(Internal Reconstruction)

Following was the Balance Sheet of B Ltd. as on 31st December, 2014:

Particulars Note No ₹

I. EQUITY & LIABILITIES:

1.Shareholder's Fund
(a)Share Capital 1 1100000
(b) Surplus (230000)
2. Non-Current Liabilities:
(a) Long term Borrowings (Secured Loans) 50000
3.Current Liabilities:

(a) Trade Payable (Sundry Creditors) 125000

Total 1150000

II. Assets:
1.Non-Current assets:
(a) Property, Plant and Equipment
(i) Tangible Assets 2 700000
(ii) Intangible Assets 3 195000
2.Current Assets:
(a)Inventories(Stock) 135000
(b) Trade Receivables (Debtors) 90000
(c)Cash and Cash Equivalents 4 (75000)

Total 1150000

Notes Of Accounts

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 Particulars ₹

1. Share Capital:
(i) Issued & Subscribed:
8,000 Equity Shares of ₹100 each 800000
3,000, 5% Preference Shares of ₹100 each 300000

1100000

2. Property, Plant and Equipment- Tangible

Assets:
(a) Land & Buildings 450000
(b) Pant & Machinery 250000

700000

3. Property, Plant and Equipment- Intangible

Assets:
(a) Goodwill 150000
(b) Patents 45000

195000

4. Cash & Cash Equivalent:

Bank Overdraft
(75000)

The Company undertook the following scheme of reconstruction:

a) Equity shares were to be reduced to shares of ₹50 each fully paid up.

(b) Pref. shares were to be converted into 7% Pref. Shares of ₹70 each fully paid up.

(c) Sundry creditors agreed to give up 1/5th of their claims provided they were paidoff
immediately.

(d) 5,000 equity shares of ₹50 each were to be issued for cash.

(e) Expenses of reconstruction were to be ₹7,500.

(f) The company decided —

(i) to write of Goodwill, debit balance of the Statement of Profit & Loss, Patents and Preliminary
Expenses.

(ii)to write down plant & machinery by ₹45,000 and stock by ₹20,000.

(iii) to create a provision for doubtful debts @ 5%.

Show journal entries giving effects to the scheme of reconstruction.

99
 CORPORATE ACCOUNTING – 2020 GENERAL

Group A
(Answer any 4 Questions) (4 x 10 = 40 Marks)
Question 1:Employee Stock Option Plan
Sky Ltd. granted 20,000 options at ₹50 each to its employees under Employees’ Stock
Option Scheme. The face value of each option was ₹10 and its market price at that
time was ₹110. The vesting period was two years. All the employees exercised their
options fully. Show the journal entries in the books of Sky Ltd.

Question 2:Underwriting of a Share

The following underwriting took place for Pioneer Ltd., which invited applications for
10,000 shares of ₹ 10 each :

X : 6,000 shares, Y : 2,500 shares, Z : 1,500 shares

In addition, there were firm underwriting as follows :
X : 800 shares Y : 300 shares Z : 1,000 shares
Total subscription including firm underwriting was 7,100 shares, and the forms
included the following marked forms :

X : 1,000 shares, Y : 2,000 shares, Z : 500 shares

You are required to compute the underwriter’s liability in number of shares when
the specific benefit of firm underwriting is to be given to the Underwriters.

Question 3:Issue of Bonus Shares

Petro Ltd. provides the following information as on 31.03.2020 :

Particulars ₹

1,20,000 equity shares of ₹ 10 each fully paid 12,00,000

Capital Redemption Reserve 3,00,000

Plant Revaluation Reserve 40,000

Securities Premium 3,00,000

Development Rebate Reserve 4,60,000

Investment Allowance Reserve 5,00,000

General Reserve 6,00,000

100
On 01.04.2020, the company decided to issue Bonus shares at par to its shareholders
at the rate of 1 share for every 2 shares held and right shares at the rate of 1 share for
every 4 shares held at ₹ 14 per shares.

Show necessary Journal entries in the books of Petro Ltd. to give effect to above
transactions.
Question 4:Valuation of Goodwill
The Summarised Balance Sheet of Green Private Ltd. as at 31.03.2020 is given below :

Particulars ₹

Share Capital : Equity shares of ₹ 10 each 40,000

Reserves and surplus 24,000
Long-term borrowings : 5% Debentures 10,000
Creditors 10,450
Tangible assets 33,900
4% Investment (Face value ₹ 8,000) 7,200
Inventories 16,000

Debtors 19,350
Cash and bank 8,000

The net earnings for the last three years were as follows :
Year ended 31.03.2018: ₹10,100; Year ended 31.03.2019: ₹ 10,850; Year ended
31.03.2020: ₹ 12,200. You are required to ascertain the value of goodwill at 3 years’
purchase of super profit (take simple average profit) assuming normal rate of return
on capital employed at 10%. Ignore income tax.

Question 5: Valuation of Shares

The following information is related to Sylvan Ltd. as on 31.03.2022:

[Fig. in ₹]

Building (Market value ₹9,13,000) 5,50,000

Inventories 60,000

Trade receivables 1,24,000

Cash at bank 1,42,000

8% Debenture 25,000

Trade payables 14,000

Share Capital:

15,000 Equity shares of 10 each, fully paid 1,50,000

101
 10,000 Equity shares of 10 each, ₹7 paid 70,000

Calculate the value of each fully paid-up and partly paid up Equity share.

Question 6:Redemption of Debenture

The following balances appeared in the books of Kolkata Tubes Ltd. on 31.03.2020
8% Debentures ₹ 1,20,000 Sinking Fund (for redemption of debentures) ₹ 1,00,000
Sinking Fund Investment in 6% Govt. Bond (Nominal Value ₹ 1,10,000) ₹ 1,00,000
On 01.04.2020 all the investments were sold at 90% of nominal value and the
debentures were redeemed at par. Prepare 8% Debentures Account, Sinking Fund
Account and Sinking Fund Investment Account in the books of the company.

Question 7:
State the relevant provisions of the Companies Act, 2013 relating to redemption of
Preference Shares.

Question 8:Buy back of a Share

The following balance are included Balance Sheet of E. Ltd. as on 31 st March, 2022:

(Amount) ₹

6,00,000 Equity Shares of ₹10 each fully paid 60,00,000

General Reserve 14,00,000

Securities Premium 10,10,000

12% Debenture of ₹100 each 28,00,000

Trade Payables 9,20,000

On 1st April, 2022 the shareholders of the company have approved the scheme of buyback
of equity shares as under:

(a) 20% of the equity share would be bought back at ₹16 per share.
(b) Premium payable on buyback of shares should be met from the Securities Premium
Account.
(c) Investment would be sold for ₹7,80,000 (Book value being ₹7,40,000).

Pass journal entries to record the above transections.

Group B (1 Question of 15 marks)

(1 Question with alternative):
Question 9: Issue of Shares
The directors of Finolex Ltd. have invited an application for 30,000 equity shares of ₹
10 each to be issued at 20% premium. The money payable on the shares are as
follows :

102
 On application :₹ 6 per share (including premium of ₹ 2);
On allotment :₹ 4 per share;
On call: Balance amount.
Applications were received for 40,000 shares and allotment was made pro-rata
amongst the applicants. All the shareholders paid their dues within the due time
except Miss Ritika, applied for 400 shares, failed to pay the allotment money. Her
shares were forfeited after the subsequent call. 200 forfeited shares were reissued as
fully paid on payment of ₹ 8 per share to Miss Ankita. Show the necessary journal
entries (including cash transaction) in the books of Finolex Ltd.

Question 10:Company Final Account

The Trial Balance of Zee Ltd. as on 31.03.2020 is as below :

Debit ₹ Credit ₹

Stock on 01.04.2019 75,000 Share capital 1,00,000

(Equity shares of ₹ 10 each)

Purchases 2,40,000 General Reserve 20,500

Wages 35,000 Sales 3,40,000

Carriage 900 Discount 3,000

Furniture 17,000 Profit and Loss Balance 15,000

Salaries 7,500 Creditors 25,000

Rent 10,000 Bills Payable 10,000

Administration expenses 12,000 10% Debentures 37,000

Plant and Machinery 70,000

Debtors 35,000

Bills receivable 5,000

Cash 8,000

Bank 15,000

103
 Long-term investments 20,100

5,50,500 5,50,500

Prepare Statement of Profit and Loss for the year ended March 31, 2020 and Balance
Sheet as at that date considering, the following information :

(a) The authorised capital of the company is ₹ 2,00,000

(b) Stock as on 31 03.2020 ₹ 88,000
(c) Depreciate Plant & Machinery and Furniture at 10%
(d) The directors recommended :
(i) An equity dividend of 25%
(ii) Transfer 10% of net profit of the period of General Reserve
Ignore Corporate Dividend Tax.

Question 11:Amalgamation of a Company

(a) Mention the conditions that are to be satisfied (as per AS-14) to consider amalgamation
in the nature of merger.

(b) Som Ltd. agreed to takeover Dove Ltd. on April 1, 2020. The terms and conditions of
takeover were as follows :

(i) Som Ltd. issued 56,000 equity shares of ₹ 100 each at a premium of ₹ 15 per share
to the equity shareholders of Dove Ltd.

(ii) Cash payment of ₹ 39,000 was made to equity shareholders of Dove Ltd.
(iii) 24,000 fully paid preference shares of ₹ 50 each issued at per to discharge the
preference shareholders of Dove Ltd.

(iv) The 8% Debentures of Dove Ltd. (₹ 78,000) converted into equivalent value of 9%
Debentures in Som Ltd.

(v) The actual cost of liquidation of Dove Ltd. was ₹ 23,000. Liquidation cost is to be
reimbursed by Som Ltd. to the extent of ₹ 15,000.

You are required to :

1. Calculate the amount of Purchase Consideration as per the provisions of AS-
14; and 2. Show necessary Journal entries in the books of Som Ltd. for
discharge of Purchase Consideration.

104
 Question 12:Reconstruction of a Company
Following balance were available from the Balance Sheet of Timtim Ltd. as at 31.03.2020
:

Amount

3,000 6% Preference shares of ₹ 100 each, fully paid up 3,00,000

45,000 Equity shares of ₹ 10 each, fully paid up 4,50,000

Profit and Loss Account Debit Balance (1,50,000)

Bills Payable 50,000

Sundry Debtors 60,000

Bank Overdraft 1,00,000

Land and Building 2,70,000

Plant and Machinery 2,40,000

Goodwill 42,300

Patent 18,000

Inventory 88,800

Debtors 1,50,900

Dividends on Preference Shares are in arrear for three years. The company passes a special
resolution to reduce its capital in accordance with the following scheme and the same is
duly sanctioned by the Court:

(a) Each 6% preference share is converted to 8%, Preference shares of Rs.75 each, fully
paid. The value of equity shares is brought down to Rs.8 per share fully paid.

(b) The arrears of dividend on preference shares are sacrificed by the preference

shareholders.

(c) Goodwill to be written off fully.

(d) Land & Building and Plant & Machinery are revalued at 135% and 80% of their
respective book values.

(e) Book debts worth Rs.7,200 are to be treated as bad and hence to be written off.

105
(f) The balance of total capital reduction is to be utilized in writing down patents. Give
necessary Journal entries to give effect to the above.

CORPORATE ACCOUNTING – 2021 GENERAL

Group A (Answer any 4 Questions) (4 x 10 = 40 Marks)

Question 1:Employee Stock Option Plan

Facebook Ltd. granted 2,000 options at ₹ 60 each to its employees under

Employees’ Stock Option Scheme. The face value of each option was ₹ 10 and its
market price at that time was ₹ 140. The vesting period was 2½ years. All the
employees exercised their options fully. Show the journal entries in the books of
Facebook Ltd.
Question 2:Underwriting of a Share
On January 1, 2021, Moon Ltd. issued a prospectus inviting applications for
subscription in 10,00,000 equity shares of ₹ 10 each. The whole issue was
underwritten by A, B, C and D as under. A : 30% B : 25% C : 35% D : 10%
The applications were received for 8,00,000 shares of which marked
applications were as follows : A : 1,80,000 B : 2,00,000 C : 2,03,000 D
: 1,67,000
Find out the liability of the individual underwriter.

Question 3:Redemption of a Preference Share

Following was the Balance Sheet of M.N. Ltd.as on 31st March,2015.

Note
Particulars No ₹

I. EQUITY & LIABILITIES

1.Shareholder's Fund
(a)Share Capital 1 600000
(b)Surplus 2 140000
2.Current Liabilities:
Trade Payable (Creditors) 40000

Total 780000

II.Assets:

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 1.Non-Current assets:
(a)Property, Plant and Equivalent-Tangible Assets: 3 530000
2.Current Assets:
(a)Inventories(Stock) 30000
(b)Trade Receivables(Debtors) 80000
(c)Cash and Cash Equivalents(Cash at Bank) 140000

Total 780000

Notes Of Accounts

Particulars ₹

1.Share Capital:
Subscribed Capital
5000 Equity shares of ₹ 100 each 500000
1000 8% Redeemable Preference Shares of ₹ 100
each 100000

600000

2.Surplus:
Capital Reserve 30000
Securities Premium 10000
General Reserve 50000
Balance in Statement of Profit & Loss 50000

140000

3.Property, Plant and Equipment-Tangible

Assets:
Land & Building 200000
Plant & Machinery 230000
Furniture & Fixtures 100000

530000

The Directors decided to redeem the Preference Shares at a premium of 10% out of
profits. Assuming that the Preference Shares were duly redeemed. Give Journal entries.

Question 4:Buy Back of a Share

The Balance Sheet of BLACK Ltd. as on 31st March, 2020 is as follows:

107
 Note
Particulars No ₹

I. EQUITY & LIABILITIES:

1.Shareholder's Fund
(a) Share Capital 1 8000000
(b) Surplus 2 3680000
2. Non-Current Liabilities:
Long term Borrowings 3 300000
3.Current Liabilities:
(a) Trade Payables (Sundry Creditors) 253000

Total 12233000

II. Assets:
1.Non-Current assets:
(a) Property, Plant and Equipment
Tangible Property, Plant and Equipment 4 8500000
(b) Non-Current Investments 1080000
2.Current Assets:
(a) Trade Receivables (Sundry Debtors) 540000
(c) Cash and Cash Equivalents 5 2113000

Total 12233000

Notes Of Accounts

Particulars ₹

1. Share Capital:
Authorized Capital:
Issued Capital:
8,00,000 Equity Shares of ₹10 each fully paid-up 8000000
Subscribed Capital:
Subscribed and fully paid up
8,00,000 Equity Shares of ₹10 each fully paid-up 8000000

8000000

2. Surplus:
Securities Premium 2500000
General Reserve 700000
Balance in Statement of Profit & Loss 480000

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 3680000

3. Long term Borrowings:

6.5% Debentures 300000

300000

4. Tangible Property, Plant and Equipment:

Land & Building 300000
Machinery 4500000
Furniture 100000

8500000

4. Cash and Cash Equivalents:

Cash and Bank Balance 2110000

2113000

on 1st April, 2020 the company announced the buy back of its 25% Equity Shares at ₹20
per share. For that purpose the Company sold its entire investments at ₹12,00,000 and
issued 8,000, 10% Preference Shares of ₹100 each. The Company utilised 50% of the
General Reserve, 100% of the Statement of Profit and Loss and the rest was taken from the
Securities Premium A/c. Show necessary Journal Entries.

[Ans. Amount transfer to Capital Redemption Reserve ₹12,00,000; Amount paid on

buyback of shares ₹40,00,000]

Question 5:Valuation of a Goodwill

From the following information, compute the value of Goodwill as per ‘Capitalization
of Average Profits method: (a) Capital employed: ₹ 15,00,000

(b) Normal rate of profit: 10%

(c) Net profit before tax (Tax rate @ 30%)

Year ended 2020-21 2019-20 2018-19 2017-18 2016-17

Profit (₹) 2,75,000 3,00,000 2,60,000 2,80,000 2,20,000

(d) Non-trading income ₹ 10,000 and Debenture interest ₹ 20,000 on an average

included in the Statement of Profit and Loss.

Question 6:Valuation of a Shares

The following particulars are available in relation to HOTELS Ltd.
(a) Capital:
450, 6% Preference shares of ₹ 100 each, fully paid.

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 4,500 Equity shares of ₹ 10 each, fully paid.
(b) External Liabilities ₹ 7,500.
(c) Reserves and Surplus ₹ 3,500.
(d) The average normal profit (after taxation) earned every year by the company ₹
8,505.
(e) The normal profit earned on the market value of fully paid equity
shares by the same type of companies is 9%

(f) Out of the total assets, assets worth ₹ 350 are fictitious.
Ascertain the intrinsic value and earning capacity value of an equity share.

Question 7:Bonus Shares

The share capital of M Ltd consists of 4,00,000 equity shares
of ₹ 10 each fully paid. The Ledger balances were as follows :

Securities Premium ₹ 2,00,000 General Reserve ₹ 2,40,000 Surplus in

Statement of Profit & Loss ₹ 10,00,000 Capital Redemption Reserve ₹
3,20,000

The company has decided to issue bonus shares in the ratio of 4 : 1 to the
existing shareholders utilising Capital Redemption Reserve in full and balance
from other eligible sources.
Show journal entries in the books of the company (narrations not required) .

Question 8:
State the conditions that are required to be fulfilled for an
amalgamation to be considered as an amalgamation in the nature of
merger.

Group B (2 Question of 20 marks)

Question 9:Issue of Shares
The directors of INOX Ltd. invited applications for issuing 60,000 equity shares at ₹
10 each at a premium of ₹ 6 per share. The amount was payable as follows :
On Application :₹ 4 per share
On Allotment :₹ 9 per share (including premium)
On First and Final Call : Balance Amount
Applications were received for 80,000 shares and the allotment was made on pro-rata
basis. Ivy, a shareholder holding 2,400 shares did not pay the allotment and call money
and her shares were forfeited. All the forfeited shares of Ivy were reissued at ₹ 9 per
share fully paid up. Pass necessary journal entries for recording the above transactions
in the books of the company. (narrations not required)
Question 10 Redemption of a Debenture
The following balance appeared in the books of X Ltd. as on 31.03.2020 :
13% Debentures Account ₹ 7,00,000 Debenture Redemption Fund
Account ₹ 5,00,000 13% Debenture Redemption Fund Investment

110
 Account (Nominal = Cost) ₹ 5,00,000

The annual contribution to the Debenture Redemption Fund was ₹ 70,000. The
company sold its investments for ₹ 7,00,000 and redeemed the debentures on
31.03.2021. Prepare 13% Debentures Account, Debenture Redemption Fund
Account and Debenture Redemption Fund Investment Account upto 31.03.2021.

Question 11:Reconstruction of a Company

Following is the Balance Sheet of Honey Ltd. as on 31.03.2021.

Balance Sheet of Honey Ltd. as at March. 31st, 2021

Note
Particulars No ₹

I. EQUITY & LIABILITIES:

1.Shareholder's Fund
(a)Share Capital 1 500000
(b) Reserve and Surplus: P/L Balance -100000
2. Current Liabilities:
(a) Trade Payables: Creditors 170000
(b) Short term Provisions: Provision for Tax 10000

Total 580000

II. Assets:
1.Non-Current assets:
(a) Property, Plant and Equipment:
Tangible Assets 270000
2.Current Assets:
(a) Inventories 120000
(b) Trade Receivables: Debtors 170000
(c) Cash and Cash Equivalents 20000

Total 580000

Notes Of Accounts

Particulars ₹

1. Share Capital:
Equity Shares of ₹10 each Fully paid 500000

A scheme of internal reconstruction was approved and the directors decided:

(a) to reduce the nominal value of shares by Rs.6 per share.

(b) to write off the loss;

(c) to revalue the Fixed Assets at Rs.1,90,000 and inventories at Rs.91,000.

111
(d) to provide 30% on Debtors for doubtful debts.

Pass the journal entries (narrations not required) to record the above transactions

Question 12:Company Final Account

The Trial Balance of P.Ltd.as on 31.3.2020 is as follows:

Particulars Debit ₹ Credit ₹

Stock (1.4.2019) 150000

Share capital (Rs. 10 each) 200000

Purchases 480000

Sales 680000

Wages 70000

Discount 6000

Carriage 1800

balance Profit & Loss 30000

Furniture 34000

Sundry Creditors 50000

Salaries 15000

Bill Payable 20000

Rent 20000

10% debenture 74000

Administrative expenses 24000

Reserve Fund 41000

Plant & Machinery 140000

Sundry Debtors 70000

Bill Receivable 10000

Cash 16000

Bank 30000

Long-term investments 40200

1101000 1101000

Prepare statement of Profit and Loss for the year ended on 31.03.2020 and Balance Sheet
on that date considering the following information:

(a) Stock as on 31.03.2020: Rs.1,76,000.

(b) Provide for Income tax @ 30%.

(c) Depreciate Plant & Machinery and Furniture at 10%.

112
(d) On 31.03.2020, Outstanding rent amounted to Rs.1,600 and salaries Rs.1,800.

(e) 10% of the net profit is transferred to Reserves.

2022

CORPORATE ACCOUNTING - GENERAL

Group - A

1. P. Ltd. issued for public subscription 30,000 Equity Shares of ₹10 each at a premium of
₹2 per share payable as-On application ₹2 per share; On allotment ₹7 per share (including
₹2 premium); On call ₹3 per share.

Applications were received for 45,000 shares. Allotment was made pro-rata to the
applicants of 36,000 shares, the remaining applications being refused. Tamal to whom
1,200 shares were allotted failed to pay the allotment and call, while Nirmal to whom 1,500
shares were allotted failed to pay the call. Their shares were forfeited after the call.
Subsequently, 2,000 of these forfeited shares (including 1,200 shares of Tamal) were re-
issued to Parul as fully paid at ₹8 per share.

Pass necessary journal entries with necessary narrations relating to forfeiture and re-issue
of shares.

2. B. Ltd. made a public issue of 1,25,000 equity shares of ₹100 each, 50 payable on
application. The entire issue was underwritten by four underwriters Bapi, Bankim, Bikram
and Barun in the proportion of 30%, 25%, 25% and 20% respectively. Under the terms
agreed upon, a commission of 2% was payable on the amounts underwritten. Bapi, Bankim
and Barun have also agreed on firm underwriting of 4,000, 6,000 and 15,000 shares
respectively. The total subscription, excluding firm underwriting, including marked
applications were for 90,000 shares. Marked applications received were as under:

Bapi- 24,000 shares, Bankim - 20,000 shares, Bikram - 12,000 shares, Barun - 24,000
shares Ascertain the liability of the individual underwriters (assuming that the relief for firm
underwriting is given to them) and also show the journal entries that you would make in
the books of the company.

Or,

The following is the abstract of Balance Sheet of Z. Ltd as on 31.03.2021 :

113
Issued and paid-up capital: ₹

40,000 Equity Shares of 10 each fully paid up 4,00,000

Reserves and Surplus:

Capital Redemption Reserve 50,000

Securities Premium 60,000

General Reserve 2,00,000

Profit and Loss Balance (cr.) 60,000

At the annual general meeting of the company the following resolutions were passed:

(a) to issue two bonus shares for every five equity shares held as on date; and

(b) to give existing shareholders the option to purchase three Right Shares of ₹10 at ₹14 for
every five equity shares held before the issue of bonus shares. All the shareholders took up
the option of Right Shares. The right shares and bonus shares were duly allotted.

Show appropriate journal entries to record the above transactions in the books of Z. Ltd.
and the resultant Balance Sheet after bonus and right issue. Narrations not required.

3. Balance Sheet extracts of C Ltd. as on 31st March, 2022 are as follows:

Issued Share Capital

12,000, 8% redeemable preference shares of ₹100 each fully paid ₹12,00,000

40,000 equity shares of ₹100 each, ₹80 paid-up ₹32,00,000

Reserves and Surplus

General Reserve ₹18,00,000

Capital Reserve ₹1,70,000

On 1st April, 2022, the company in its general meeting resolved that:

The preference shares are to be redeemed at a premium of ₹10 per share. The redemption
1
was effectedpartly out of profits and partly out of the proceeds of new issue of 6,000, 7 %
2
cumulative preference shares of ₹100 each at a premium of ₹25 per share. The premium
payable on redemption was met out of the premium received on the new issue and all the
capital reserves be applied in the following manner:

(i) The declaration of bonus at the rate of ₹20 per share on equity shares for the purpose of
making the said equity shares fully paid; and

(ii) The issue of bonus shares to the equity shareholders in the ratio of one share for every
four shares held by them.

You are required to pass necessary journal entries in the books of the company.

Or,

The Balance Sheet of TD Ltd. as at 31.03.2020 stood as follows:

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 Particulars Notes Amount
No. (₹)
I. Equity and Liabilities
1. Shareholder's Fund :
(a) Share Capital: Equity Shares of ₹10 each 1 50,00,000
(b) Reserves and Surplus 2 15,65,000
2. Non-Current Liabilities 37,50,000
3. Current Liabilities 9,42,000
_____________
TOTAL 1,12,57,000
II. Assets
1. Non-Current Assets
(a) Property, Plant and Equipment and
Intangible Assets
(i) Property, Plant and Equipment 67,00,000
(b) Non-current Investment -------
2. Current Assets
(a) Current Investment 18,50,000
(b) Trade Receivables 20,00,000
(c) Cash and Cash Equivalent 7,07,000
____________
TOTAL 1,12,57,000
Notes to Accounts:

1. Share Capital
Authorised --------
Issued and Subscribed:
5,00,000 Equity Shares of ₹10 each 50,00,000
2. Reserves and Surplus

Securities Premium 5,40,000

General Reserve 6,25,000
Balance in Statement of Profit and Loss (credit) 4,00,000
15,65,000
The following resolutions were adopted on that date:

(a) to buy-back 20% of the paid-up capital @ ₹15 each

(b) to issue 5,000 9% Preference shares of ₹100 each at a premium of 10% to finance part of
the buy- back

(c) to sell investment worth ₹8,00,000 for ₹6,50,000

(d) to maintain a balance of ₹3,00,000 in General Reserve.

You are required to pass necessary journal entries in the books of TD Ltd. relating to the
above.

4.The following balances appeared in the books of C. Ltd. on 01.04.2020:

Sinking Fund Account ₹50,000; Sinking Fund Investment Account (10% Government
Securities, Nominal value ₹45,000) ₹48,000; 12% Debenture ₹1,00,000.

The Company sold ₹30,000 Government Securities at 110% and utilised the amount to
redeem part of the Debentures at a premium of 10%.

115
Show the Debenture Account, Sinking Fund Account, Sinking Fund Investment Account in
the books of C. Ltd.

5. The following particulars of EXE. Ltd. are given below:

(a) Equity share capital: 20,000 Equity shares of ₹10 each fully paid

(b) Preference share capital: 2,000, 12% Preference shares of ₹100 each fully paid

(c) Reserves and Surplus: ₹1,00,000

(d) Trade Payables: ₹40,000

(e) Average normal profit after tax earned in each year by the company ₹60,000

(f) Transfer to General Reserve - 10% of Net Profit

(g) Profit on revaluation of tangible assets-₹40,000

(h) Fictitious items included in the assets of the company - ₹10,000

(i) Normal rate of return earned in respect of the equity shares of the same type of company
is ascertained at 10%

(1) Ignore Goodwill.

Compute the value of the company's share by

(i) Asset-backing Method and

(ii) Earnings Yield Method.

Or,

Following information is available from the books of B. Ltd. as on 31.03.2020:

Equity Share Capital (₹10 each) 4,00,000

10% Preference Share Capital 1,50,000

Reserves and Surplus 1,00,000

10% Debenture 1,20,000

Creditors 80,000

Market value of assets is ₹1,00,000 more than the book value and non-trade investments
included in assets ₹1,20,000.

Profit for the last three years before tax were - 2018-19: ₹2,64,000; 2017-18: ₹2,80,000;

2016-17: ₹2,20,000. Non-trading income of ₹20,000 (before tax) is included in the amount
of Profit for 2017-18 only.

Fair rate of return on capital employed in this type of business is estimated at 12%.

Rate of income tax is 40%.

116
Calculate the value of goodwill on the basis of 3 years' purchase of Super Profit.

Group - B

6.X Ltd is absorbed by Y. Ltd on 31.03.2020 on which date the Balance Sheet of X. Ltd. was
summarized as follows:

Particulars Notes Amount

No. (₹)
I. Equity and Liabilities
1. Shareholder's Fund :
(a) Equity Shares of (₹10 each fully paid) 1,60,000
(b) Reserves and Surplus 1 1,44,000
2. Non-Current Liabilities
Long-term borrowings: 10% Debenture of ₹100 each 1,00,000
3. Current Liabilities
Trade Payable 36,000
TOTAL 4,40,000
II. Assets
1. Non-Current Assets
(a) Property, Plant and Equipment 2 3,12,000
(b) Non-current Investment -------
2. Current Assets
(a) Inventory 81,000
(b) Trade Receivables 34,200
(c) Cash and Cash Equivalent 12,800
TOTAL 4,40,000

Notes to Accounts:

Particulars Amount (₹)

1. Reserves and Surplus
General Reserve 64,000
Balance in Statement of Profit and Loss (credit) 80,000
1,44,000

2. Property, Plant and Equipment : 2,40,000

Land and Building 72,0003,12,000
Plant and Machinery

The consideration payable to X. Ltd:

(a) A cash payment of ₹110 for every Debenture in X. Ltd.

(b) An exchange of 3 equity shares of ₹5 each (quoted in the market at ₹6 each) in Y. Ltd. for
every share in X. Ltd.

(c) A further cash payment of ₹3 for each equity share in X. Ltd.

You are required to prepare necessary ledger accounts in the books of X. Ltd. to close the
books of accounts and journal entries in the books of Y. Ltd. Expenses on liquidation were
₹6,000.

Or,

117
The business of J Ltd. was being carried on continuously at losses. The following are the
extracts from the balance sheet of the company as on 31st March, 2022:

30,000 Equity shares @ ₹10 each ₹3,00,000

2,000, 8% cumulative preference shares of ₹100 ₹2,00,000

Securities Premium ₹90,000

Unsecured loan (from director) ₹50,000

Sundry Creditors ₹3,00,000

Outstanding expenses (including Remuneration ₹20,000) ₹70,000

Goodwill ₹50,000

Plant ₹3,00,000

Loose tools ₹10,000

Debtors ₹2,50,000

Stock ₹1,50,000

Cash ₹10,000

Bank ₹35,000

Preliminary expenses ₹5,000

Profit and Loss A/c (Dr. Balance) ₹2,00,000

Dividends on cumulative preference shares are in arrears for 3 years. The following scheme
of reconstruction has been agreed upon and duly approved by the court:

(i) Equity shares to be converted into 1,50,000 shares of ₹2 each.

(ii) Equity shareholders to surrender 90% of their holdings.

(iii) Preference shareholders agree to forego their right to arrears to dividends in

consideration of which 8% preference shares are to be converted into 9% preference shares.

(iv) Sundry creditors agree to reduce their claim by one-fifth in consideration of their getting
shares of 35,000 out of surrendered equity shares.

(v) Directors agree to forego the amount due on account of unsecured loan and directors'

remuneration.

(vi) Surrendered shares, not otherwise utilised, to be cancelled.

(vii) Assets to be reduced as under:

Goodwill by ₹50,000, Plant by ₹40,000, Loose Tools by ₹8,000, Sundry Debtors by ₹15,000
and

Stock by ₹20,000

(vii) Any surplus after meeting the losses should be utilisedin writing down the value of the
plant further.

(ix) Expenses of reconstruction amounted to ₹10,000.

118
(x) Further 50,000 equity shares were issued to the existing members for increasing the
working capital. The issue was fully subscribed and paid up.

You are required to pass the journal entries for giving effect to the above arrangements.

7. The Trial Balance of P. Ltd. as on 31.03.2020 is as below:

Particulars Amount (₹) Amount (₹)

Stock as on 01.04.2019 1,20,000 -----
Purchases and Sales 4,80,000 7,20,000
Return Outwards ------ 20,000
Salaries and Wages 80,000 -----
Rent 10,000 -----
Sundry Expenses 14,000 -----
Profit & Loss Balance (01.04.2019) ------ 20,000
Machinery 1,00,000 -----
Furniture 22,000 -----
Debtors and Creditors 81,000 31,000
Cash at Bank 70,000 -----
Bills Receivable and Bills Payable 10,000 12,000
Patent and Trademark 10,000 -----
Advance Payment of Tax 23,000 -----
Share Capital (₹10) ----- 2,20,000
General Reserve ----- 17,000
Interim Dividend paid 20,000 __________
10,40,000 10,40,000
Additional information:

(i) The authorized capital of the company is ₹10,00,000

(ii) Stock as on 31.03.2020 ₹1,80,000

(iii) Depreciate Machinery @ 10%, Furniture @ 15%, Patent and Trademark @ 5%.

(iv) Make a provision for Income Tax @ 40%

(v) 10% of net profit is transferred to Reserve.

From the above information, prepare Statement of Profit and Loss for the year ended
31.03.2020 and a Balance Sheet as on that date. Ignore dividend distribution tax.

119
 2023
CORPORATE ACCOUNTING -- HONOURS
Paper: DSE-5.2AH
Full Marks: 80
Group - A
1. Kristi Ltd. issued 10,000 equity shares of ₹100 each at 20% premium. The amount is
payable as: On application ₹30; on allotment ₹50 (including premium) and the balance
equally in two calls. Till date the company called-up all money except the final call and it
received all the money due except on the following shares :
Holders Shares held Unpaid amount Unpaid amount
Allotment ₹ 1st Call ₹
Mr. A 800 30 20
Mr. B 500 10 20
Mr. C 400 -- 20
The company forfeited the shares on which both allotment and 1st call money were due.
Of the shares forfeited, 500 shares as forfeited from Mr. A and 300 shares as forfeited from
Mr. B were re-issued as ₹80 paid at a discount of ₹15 each.
Show the journal entries (narration not required) for forfeiture and re-issue in the books of
Kristi Ltd.

2. B Ltd. has its share capital divided into equity shares of ₹10 each. On 01.01.2023 it
granted 20,000 employees stock option at ₹50 per share, when the market price was ₹120
per share. The options were to be exercised between 15th March, 2023 and 31st March,
2023. The employees exercised their options for 16,000 shares only and the remaining
options lapsed. The company closes its books on 31st March every year. Show necessary
journal entries to record the above transactions.

Or,

C Ltd. made a public issue of 1,50,000 shares of ₹100 each at par, ₹60 payable on
application and balance on allotment. The issue was underwritten by A, B and C in 5:3:2.
Applications for 1,43,900 shares were received as per the details below:
Underwriters Firm applications Marked applications Total
A 5,000 40,000 45,000
B 5,000 45,900 50,900
C 3,000 18,000 21,000
Unmarked applications 27,000
Total 1,43,900
It was agreed that benefit of firm underwriting be given to individual underwriters.
Calculate the total liability of each of the underwriters in terms of number of shares.

3. The 3,000, 6% Redeemable Preference Shares of ₹100 each, fully paid of A Ltd. were due
for redemption on 01.04.2023 at a premium of 5%. A Ltd. follows Accounting Standards as
prescribed by the Companies Act, 2013.
Reserves and Surpluses on 01.04.2023 were:
Capital Redemption Reserve ₹60,000
Revaluation Reserve ₹80,000
Securities Premium ₹40,000
General Reserve ₹2,80,000
Statement of Profit & Loss (Cr.) ₹1,20,000
For the purpose of redemption, the company made an issue of 1,200 Equity Shares of ₹100
each at a premium of 20% on the above mentioned date. The issue was immediately
subscribed and paid for.
It also sold 60% of investments (Book value ₹1,80,000 and Face value ₹2,00,000) at 95%.
Show Journal entries (narrations not required) to give effect to the above transactions.

Or,

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The following is the Balance Sheet of E Ltd. as on 31st March, 2023:
I. Equity and Liabilities Amount (₹)
1. Shareholders' Fund
(a) Share Capital
3,00,000 Equity Shares of ₹10 each fully paid 30,00,000
(b) Reserves and Surplus
General Reserve 7,00,000
Securities Premium 5,00,000
2. Non-current Liabilities
12% Debentures of ₹100 each 14,00,000
3. Current Liabilities
Trade Payables 4,60,000
60,60,000
II. Assets
1. Non-current Assets
(a) Property, Plant and Equipment - Tangible 33,30,000
(b) Non-current Investments 3,70,000
2. Current Assets
(a) Inventories 12,00,000
(b) Trade Receivables: Debtors 5,90,000
(c) Cash and Cash Equivalents 5,70,000
60,60,000
On 1st April, 2023, the shareholders of the company have approved the scheme of buyback
of equity shares as under:
(a) 20% of the equity shares would be bought back at ₹16 per share.
(b) General Reserve balance may be utilised for the above purpose.
(c) Premium payable on buyback of shares should be met from the Securities Premium
Account.
(d) Investments would be sold for ₹3,90,000.
Pass journal entries to record the above transactions and prepare the Balance Sheet of the
company immediately after the buyback of shares.

4. F Ltd. issued 1,000, 12% Debentures of ₹100 each on 1st April, 2020, repayable at the
end of 3 years at a premium of 5%. It was decided to create a sinking fund for the
redemption of debentures. The investments are expected to earn interest at 5% per annum.
Reference to the sinking fund table shows that ₹ 0.317209 invested at 5% per annum
amounts to ₹1 at the end of three years. Investments were sold for ₹70,000 and debentures
were redeemed on 31st March, 2023. Prepare 12% Debentures A/C, Debenture Redemption
Fund A/C and Debenture Redemption Fund Investment A/C for the three years up to 31st
March, 2023.

5. From the following information, calculate the value of goodwill as on 31.03.23.

• Equity Share Capital (₹10) ₹4,00,000.
• 9% Preference Shares Capital ₹1,00,000.
• Reserve and Surplus ₹90,000.
• 10% Debenture ₹ 1,00,000 (issued during the year 2018-2019)
• Depreciation fund ₹60,000.
•Creditors ₹70,000.
• Market Value of Assets is ₹90,000 more than the book value.
• Profits for last 3 years after 20% tax were:
2020-2021: ₹80,000, 2021-2022: ₹1,17,000 and 2022-2023: ₹1,18,000 respectively.
• Non-trade income of 15,000 (before tax) is included in the amount of profit for 2021-2022
only. In 2020-2021, the company suffered an abnormal loss of ₹ 24,000.
• Fair Return on Capital Employed in this type of business is estimated at 10%.
• Goodwill is to be valued on the basis of 3 years purchase of Super Profit.
(Take simple average profit).

Or,

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The following particulars are available in respect of H Ltd. :
(a) Capital 450, 6% preference shares of ₹100 each fully paid and 4,500 equity shares of ₹10
each fully paid
(b) External liabilities: ₹7,500
(c) Reserves and Surplus: ₹35,000
(d) The average expected profit (after taxation) earned by the company ₹8,500
(e) The normal profit earned by same type of companies is 9%
(f) 10% of the profit after tax is transferred to reserves.
Calculate the intrinsic value per equity share and value per equity share according to yield
basis. Assume that out of total assets, assets worth of ₹350 are fictitious.

Group - B

6. Big Ltd. agreed to acquire the business of Small Ltd. as on 31.03.2023. The summarised
Balance Sheets of the two companies as on that date were as follows:
Particulars Big Ltd. Small Ltd.
Equity and Liabilities (₹) (₹)
Equity Share Capital (₹10 each fully paid) 5,00,000 3,00,000
General Reserve 2,00,000 1,00,000
Balance of Profit & Loss Statement (Cr.) 1,60,000 40,000
12% Debentures 1,50,000 50,000
Trade Payables (Creditors) 70,000 20,000
Total 10,80,000 5,10,000
Assets
Tangible Assets 7,10,000 3,20,000
Goodwill ---- 50,000
Current Assets 3,70,000 1,40,000
Total
10,80,000 5,10,000
Following were agreed for the purpose of take over :
• Assets of Small Ltd. were revalued as: Tangible Assets ₹3,80,000; Goodwill ₹70,000 and
Current assets at ₹1,37,000.
• Claim of debenture holders of Small Ltd. were to be discharged at 4% premium by the
issue of sufficient equity shares of Big Ltd. of ₹10 each at an agreed price of ₹12.50 each.
• The consideration was satisfied:
By the issue of 30,000, ₹10 fully paid shares at an agreed value of ₹12.50 each; 12%
Debentures of ₹75,000 of Big Ltd. at par and the balance in cash.
You are required to:
(i) Calculate the purchase consideration
(ii) Prepare Business Purchase Account and Liquidator of Small Ltd. Account in the books
of Big Ltd., and
(iii) Prepare the Balance Sheet of Big Ltd. after acquisition of Small Ltd.

Or

Following are the ledger balances of P Ltd. on 31.03.2023:

₹ ₹
Property, Plant and Equipment 32,00,000
Non-current Investments 40,000
Inventories (Market value ₹13,60,000) 15,60,000
Debtors 18,40,000
Shares issue expenses 80,000
Bank overdraft 2,00,000
8% 'A' Debentures 8,00,000
10% 'B' Debentures 20,00,000
Sundry creditors (including Shyam for ₹22,00,000) 46,00,000
Accrued Debenture Interest: 'A' Debentures 80,000

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 'B' Debentures 2,40,000
3,20,000
Equity share capital (40,000 shares of ₹100 each, 24,00,000
₹60 paid-up)
Due to accumulated losses and overvaluation of Property, Plant and Equipment, following
scheme of reconstruction is agreed upon:
(i) To make call against the existing equity shares to make them fully paid and then to sub-
divide them to shares of ₹20 each.
(ii) After sub-division the equity shareholders to surrender 80% of their holding for
redistribution or otherwise for cancellation.
(iii) To settle the claim (inclusive of interest) of the holders of Debentures 'A' by issuing
4000, 12% Debentures of ₹100 each. They are also to be issued 12,000 equity shares out of
surrendered shares.
(iv) To issue 60,000 equity shares out of surrendered shares to the holders of Debentures
'B' in
full settlement of their claim. (including interest)
(v) To issue 40,000 equity shares out of the surrendered shares to Shyam in full settlement
of
his account.
(vi) To write off all accumulated losses, fictitious assets and write down the Property, Plant
and Equipment to the extent possible. Pass necessary journal entries to give effect to the
above transactions and prepare the Balance Sheet of P Ltd. after reconstruction.

7.From the following trial balance of X Ltd. as on 31.03.2023, prepare Statement of Profit
and Loss for the year ended 31.03.2023 and Balance Sheet as on that date as per
Schedule-III of Companies Act, 2013:
Particulars Dr. (₹) Cr. (₹)
Share capital: Subscribed and Paid-up (₹10 each) -- 40,00,000
Land (at cost) 30,00,000 --
Building (at cost) 20,00,000 --
Plant and Machinery (at cost) 30,00,000 --
Furniture and Fixture (at cost) 2,00,000 --
Opening stock-in-trade 5,00,000 --
Purchases 52,00,000 --
Purchase returns -- 50,000
Sales -- 75,22,000
Sales return 24,000 --
Managing Director's Remuneration 1,00,000 --
Salaries and wages 3,00,000 --
Investment (at cost) 2,00,000 --
Investment income received -- 10,800
12% Debentures (fully secured) -- 20,00,000
Debenture interest paid 2,20,000 --
Sundry Debtors 17,00,000 --
Sundry Creditors -- 9,40,000
Interim dividend paid 2,41,120 --
Profit and Loss balance (Cr.) as 01.04.2022 -- 4,26,000
General Reserve on 01.04.2022 -- 20,00,000
Unclaimed dividend -- 24,000
Provision for depreciation as on 01.04.2022:
On Building -- 4,00,000
On Plant and Machinery -- 10,00,000
On Furniture and Fixture -- 40,000
Audit fees 60,000 --
Administrative and other expenses 6,05,600 --
Cash and Bank balance 10,62,080 --
1,84,12,800 1,84,12,800
Other Information:

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(a) Closing stock-in-trade as an 31.03.2023 was valued at cost of ₹15,00,000.
(b) Provide depreciation on Fixed Assets as follows:
(i) Building @ 5% on wdv,
(ii) Plant and Machinery @ 20% on wdv,
(iii) Furniture and Fixture @ 10% on wdv.
(c) Tax deducted at source on investment income was ₹1,200.
(d) Provision for tax is to be made @30%.
(e) The directors have recommended the following appropriations:
(i) Final dividend @ ₹1.00 per share in addition to interim dividend already declared and
paid. (ii) Transfer ₹1,00,000 to General Reserve.
2023
General
Group - A
1. A Ltd. made an issue of 10,000 equity shares of ₹15 each payable as follows:
(a) ₹5 per share on Application;
(b) ₹7 per share (including 2 per share as premium) on allotment;
(c) ₹5 per share on First and Final Call.
The company received applications for 10,000 shares. Mr. Pal holding 100 shares failed to
pay the Allotment and Call money. Mr. Ghosh holding 80 shares failed to pay the Call
money. All these shares were forfeited after the call and subsequently re-issued to Mr.
Ganguly as fully paid-up at ₹13 per share.
Pass necessary journal entries to record the above transactions. Narrations are not
required.

2. M Construction Ltd. has accumulated large profits in the Reserve Account and the Board
of Directors decide to utilise it to make the capital properly representative of the final
position.
The paid-up capital company is ₹8,00,000 consisting of 50,000 equity shares of ₹10 each
fully paid and 50,000 equity shares of ₹10 each, ₹6 per share paid-up.
The Directors decided to issue one fully paid-up bonus share at a premium of ₹5 for every
existing fully paid share held and to make the partly paid shares fully paid.
Assuming that the scheme is accepted and that all legal formalities are gone through, pass
necessary Journal Entries (including narrations).
Or,
A company made a public issue of 2,00,000 equity shares of ₹10 each at a premium of ₹2
per share. The entire issue was underwritten by the underwriters L, M, N and O in the ratio
of 4: 3:2:1 respectively with the provision of firm underwriting of 5,000, 4,000, 2,000 and
2,000 shares respectively.
The company received applications for 1,50,000 shares (excluding firm underwriting) from
public, out of which applications for 55,000, 40,000, 42,000 and 8,000 shares were marked
in favour of L, M, N and O respectively.
Calculate the Liability of each underwriter as regards the number of shares to be taken up
assuming that the benefit of firm underwriting is given to the individual underwriter.

3. Following is the Balance Sheet of W Ltd.

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Balance Sheet as on 31st March, 2023

Particulars Note Amount (₹)

No.
1. EQUITY & LIABILITIES
(1) Shareholders' Funds
(a) Share Capital 1 6,00,000
(b) Reserves & Surplus 2 1,60,000
(2) Current Liabilities
Trade Creditors 40,000
Total 8,00,000
II. ASSETS
(1) Non-Current Assets
(a) Plant, Property & Equipment 3,00,000
(b) Non-current Investment 2,00,000
(2) Current Assets
(a) Inventories 1,50,000
(b) Trade Receivables:
Debtors 90,000
(c) Cash and Cash Equivalent:
Bank 60,000
Total 8,00,000

Notes to the Accounts

Particulars Amount (₹)

1. Share Capital:
40,000 equity shares of ₹10 each fully paid 4,00,000
2,000 5% Redeemable Preference shares of ₹100 each fully paid 2,00,000
6,00,000
2. Reserves and Surplus:
Securities Premium 4,000
General Reserves 96,000
Balance in Statement of Profit & Loss (Cr.) 60,000
1,60,000

On 1st April, 2023, Preference Shares were redeemed at a premium of 5%. For this
purpose, investments were sold at a profit of 10%, and 5,000, equity shares of ₹10 each
were issued at ₹10.50 per share.
Preference shares were duly redeemed.
Show necessary journal entries for the above.
Or,
On 31st March 2023, following balances were taken from the books of New Ltd.:

₹ in lakhs
1. Equity and Liabilities
(1) Shareholders' Funds
(a) Share Capital: 2,400
Equity share capital of ₹10 each fully paid
(b) Reserve and Surplus:
(i) Securities Premium Account 350
(ii) General Reserve 930

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 (iii) Balance in Profit & Loss Statement (Cr.) 340
(2) Non-Current Liabilities.
12% Debentures 1,500
(3) Current Liabilities.
(a) Sundry Creditors 750
(b) Sundry Provisions 390
Total 6,660
II. Assets
(1) Non-Current Assets
(a) Property, Plant and Equipment:
(i) Machinery 3,600
(ii) Furniture 452
(b) Investments 148
(2) Current Assets
(a) Stock 1,200
(b) Debtors 520
(c) Cash at Bank 740
Total 6,660

On 1st April, 2023, the company announced the buyback of 25% of its equity shares @ ₹15
per share. For this purpose, it sold all of its investments for ₹150 lakh and issued 2,00,000
14% Preference Shares of ₹100 each at par, the entire amount being payable with
application.
The issue was fully subscribed. The company achieved the target of the buyback.
Show Journal Entries for all the transactions.

4. Following balances appeared in the books of a company on 1st April, 2022:

12% Debentures ₹8,00,000; 12% Debenture Sinking Fund ₹6,00,000; 12% Debenture
Sinking Fund Investments ₹6,00,000 (represented by 10% Government Bonds with Face
value of ₹7,20,000).
Annual contribution to sinking fund was ₹1,28,000 made on 31st March every year. On
31st March, 2023, balance at bank was ₹4,00,000 before receipt of interest. The company
sold the investments at 80% of Face value and Debentures were paid up.
You are required to prepare :
(a) 12% Debenture A/c
(b) 12% Debenture Sinking Fund A/c
(c) 12% Debenture Sinking Fund Investment A/c.

5. (a) The following particulars are available in relation to H. Ltd.:

(i) Capital: 6,000, 7% Preference Shares of ₹100 each fully paid and 50,000 Equity Shares
of
₹10 each fully paid.
(ii) External Liabilities: ₹75,000
(iii) Reserves and Surplus: ₹2,80,000
(iv) The average expected profit after tax: ₹90,000.

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Calculate the intrinsic value per Equity Share, assuming that total assets include ₹30,000
fictitious assets.
(b) The capital structure of a company is given below:

Particulars Amount (₹) Particulars Amount (₹)

10% Preference Shares of ₹10 5,00,000 10% Debentures 7,50,000
each 10,00,000 12% Term Loan 10,00,000
Equity Shares of ₹100 each 5,00,000
Reserves and Surplus

The average profit of the company before payment of interest and income tax is ₹7,50,000.
The Income tax rate is 30%. Calculate the market price of each equity share of the company
assuming that Price-Earnings Ratio (MPS/EPS) is 10.
Or,
(a) On the basis of the following information, calculate value of goodwill for Z Ltd. under 3
years' purchase of Super Profit Method:
(i) Average Maintainable Operating profit ₹2,50,000.
(ii) Paid up share capital- ₹10,00,000; Reserves and Surplus- ₹3,00,000; 8% Debenture-
₹1,00,000.
(iii) Normal rate of return: 10%.
(b) P. Banerjee runs a Pharmacy shop. His net assets as on 31.03.2023 amount to
₹20,00,000. After paying a rent of ₹40,000 a year and a salary of ₹40,000 to the chemist, he
earns a profit of ₹3,00,000. His landlord who happens to be an expert chemist is interested
in purchasing the shop. 12% is considered to be a reasonable return on capital employed.
How much Sri Banerjee expects as payment for Goodwill if it is valued under Capitalization
of Average Profit Method? Ignore income tax.

Group - B
6. (a) X Ltd. took over Y Ltd. Y Ltd. had 10,000 equity shares having intrinsic value of ₹30
per share. X Ltd. agreed to issue 4 equity shares of its own against every 5 equity shares of
Y Ltd. The intrinsic value per share of X Ltd. is ₹35. The balance of purchase consideration,
if any, is to be paid in cash.
Calculate purchase consideration and the amount payable in cash therein.
(b) A Ltd. absorbed B Ltd. on 31.03.2023 on which date the Balance Sheet of B. Ltd. was as
follows:

Particulars Notes Amount

No. (₹)
I. Equity and Liabilities
1. Shareholder's Fund
(a) Equity Share Capital (10 each fully paid) 5,00,000
(b) Reserves and Surplus 1,50,000
2. Current Liabilities
(a) Trade Payable 2,00,000
Total 8,50,000
II. Assets
1. Non-Current Assets

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 (a) Property, Plant and Equipment:
Land and Building 1,00,000
Plant and Machinery 4,00,000
(b) Non-Current Investment 1,00,000
2. Current Assets
(a) Inventories 1,00,000
(b) Trade Receivables 1,00,000
(c) Cash and Cash Equivalent 50,000
Total 8,50,000
A Ltd. took over B Ltd. under the following terms:

(i) Purchase consideration being ₹7,00,000 payable in equity shares of ₹10 each in A Ltd.
(ii) The value of Land and Building of B Ltd. is to be considered at ₹1,20,000.
You are required to pass necessary journal entries in the books of both A Ltd. and B. Ltd.
Expenses on liquidation ₹6,000 is paid by A Ltd.
Or,
Honey Bee Ltd. is suffering losses for last few years. The company undertook the following
scheme of internal reconstruction:
(a) Each existing equity shares to be converted into one equity share of the nominal value
₹3 per share.
(b) 8% Preference Shares are to be converted into such number of 16% Preference Shares of
₹100 each to generate the same amount of dividend as before.
(c) Each ₹100 debentures are to be exchanged for one ₹50 new 12% Debentures and six new
equity shares of ₹3 each.
(d) The reduction of Capital and balance of Reserves are to be utilized for writing off losses,
60% of the inventories and debtors; and balance, if any, to be used for writing down Plant
and Equipment.
Balance Sheet of Honey Bee Ltd. as on 31.03.2023:

Particulars Notes Amount

No. (₹)
I. Equity and Liabilities
Shareholder's Fund
(a) Share Capital 1 8,00,000
(b) Reserves and Surplus 2 30,000
2. Non-current Liabilities
Long-term borrowing:
6% Debenture of ₹100 each 1,00,000
3. Current Liabilities 40,000
Total 9,70,000
II. Assets
1. Non-Current Assets
Plant, Property and Equipment 3,00,000
2. Current Assets
(a) Inventories 3,75,000
(b) Trade Receivables:
Debtors 2,25,000
(c) Cash and Cash Equivalent 70,000
Total 9,70,000

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Notes to Balance Sheet (includes)

Particulars Amount
(₹)
1. Share Capital:
2,000, 8% Preference Shares of ₹100 each 2,00,000
60,000 Equity Shares of ₹10 each 6,00,000
8,00,000
2. Reserves and Surplus
General Reserves 1,50,000
Balance in Statement of P&L (1,20,000)
30,000

Show necessary journal entries and draw up the revised Balance Sheet.

7. Following is the Trial Balance of Lakhya Co. Ltd. as at 31st March 2023:

₹ ₹
Stock, 31st March 2022 75,000 -
Sales - 3,50,000
Purchases 2,45,000 -
Wages 50,000 -
Discount - 5,000
Purchases and Fittings 17,000 -
Salaries 7,500 -
Rent 4,950 -
Sundry Expenses 7,050 -
Balance of Profit (01.04.2022) - 15,030
Dividends Paid 9,000 -
Share Capital - 10000
Debtors and Creditors 37,500 17,500
Plant and Machinery 29,000 -
Cash and Bank 16,200 -
Reserve - 15,500
Patents and Trade Marks 4,830 _____-_____
5,03,030 5,03,030

Prepare Statement of Profit and Loss for the year ended 31st March, 2023 and Balance
Sheet as at that date. Take into consideration the following adjustments:
(a) Stock on 31st March, 2023 was valued at ₹82,000
b) Depreciation on fixed assets @ 10%
Make a provision for income tax ₹13,500.

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