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Tuesday, May 10, 2016

Roll No.
Total No. of Questions: 09
BBA (Sem.2nd)
Subject Code: BBA-204
Paper ID: [C0243]
Time: 3 Hrs.


1. Section A is compulsory. Give answer to each question up to five lines in length.
Each question carries two marks.

2. Attempt four questions from Section B attempting at least one question from
each unit. Each question carries 10 marks.

Section - A

Q1. Write short notes on the following:
a) Purchase Method
b) Internal Reconstruction
c) Unrealised  profits in stock
d) Consolidation of accounts
e) What is a Holding Company?
f) Use of amount of premium
g) Over-subscription of shares
h) What is Accounting Software?
i) What is a Financial Institution?
j) What is Absorption?
Section - B


Q2. Explain the Accounting Treatment in case of Issue of Shares.

Q3. Sunflow Ltd. issued 50,000 equity shares. The whole of the issue was
        underwritten as follows: Red 40%; White 30%; Blue 30% Applications for
       40,000 shares were received in all, out of which applications for 10,000 shares
       had the stamp of Red; those for 5.000 shares that of White and those for
      10,000 shares that of Blue. The remaining applications for 15,000 shares did
       not bear any stamp. Determine the liability of the underwriters.


Q4. What is Dividend? Discuss the major types of Dividends.

Q5. The following particulars are extracted from the Profit and Loss Accounts of         Bharat Ltd. for ` the year ended 31st March, 2012:

(i) Remuneration and perquisites paid to:
(a) Managing Director Rs. 75,000
(b) Whole-time Director Rs.60, 000

(ii) Provision for bonus of Rs. 5.5 lakhs and for gratuity Rs.50,000, this includes
      provision for above Directors- Bonus Rs. 5,000 and gratuity Rs.6, 000.

(iii) Provision for doubtful debts made during the year Rs. 30,000.

(iv) Surplus on sale of building credited in the Profit and Loss Account Rs.
       1,50,000. This includes a short term capital gain of Rs. 1,30,000.

(v) Loss on sale of machinery debited in Profit and Loss Account, Rs.7,000
     (representing difference between sale price Rs. 1,43,000 and written down
     value Rs. 1,50,000).

(vi) The company has made donations of Rs. 50,000 to charitable institutions and
      contributed Rs. 4 lakhs to an approved research association for research related
      to the company's business.

(vii) Provision for Income-tax 8 lakhs and for surtax Rs.60,000 made in the

(viii) The net profit as per Profit and Loss Account is Rs. 16 lakhs. The company    
          had suffered losses  in  the  earlier  years.  The  aggregate  amount  of  such 
           brought  forward  losses (after adjustments required to be made under  
           Section 349) works out to Rs. 2.5 Lakhs.You are required to calculate the
           net profit for the purpose of computing managerial remuneration.
Q6. Discuss the concept of corporate Amalgamations and Absorptions in detail.

Q7. A earns Rs. 1,20,000 as its annual profits, the rates of normal profit being 10%
       The assets of the firm amounted to Rs. 14,40,000 and liabilities to Rs.
       4,80,000. Find out the value of goodwill.


Q8. Discuss briefly the reporting requirements for various kinds of Financial
       Institutions in India.

Q9. What is Computerised Accounting? Discuss its major advantages and



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