15CP42T: Financial Accounting- IV CP 4th Sem Syllabus for Diploma DTE Karnataka C15 Scheme

Financial Accounting- IV detail DTE Kar Diploma syllabus for Commercial Practice (CP), C15 scheme is extracted from DTE Karnataka official website and presented for diploma students. The course code (15CP42T), and for exam duration, Teaching Hr/week, Practical Hr/week, Total Marks, internal marks, theory marks, duration and credits do visit complete sem subjects post given below. The syllabus PDFs can be downloaded from official website.

For all other cp 4th sem syllabus for diploma c15 scheme dte karnataka you can visit CP 4th Sem Syllabus for Diploma C15 Scheme DTE Karnataka Subjects. The detail syllabus for financial accounting- iv is as follows.

Pre-requisites:

Knowledge of Book Keeping and Basics of Accounting.

Course Objectives:

The students shall be able to:

1. Understand the procedure for Issue of Sharesand prepare the Balance Sheet of the Company.
2. Prepare the Final Accounts of the Joint Stock Companies in the prescribed format.
3. Value Goodwill of the Companies under different methods.
4. Value shares of the Companies under different methods.

Course Outcomes:

For complete syllabus and results, class timetable and more pls download iStudy Syllabus App. Its a light weight, easy to use, no images, no pdfs platform to make students life easier.

Unit 1 RAISING OF CORPORATE FINANCE AND ACCOUNTING PROCEDURES:

Meaning of Share- Kinds of Shares – Problems on Issue, Allotment and Calls on Shares -Calls-in-Arrears and Calls-in-Advance -Under-subscription and Over-subscription – Pro-rata Allotment – Issue of Shares on Par, at Premium and at Discount – Forfeiture of Shares -Reissue of Forfeited Shares – Relevant Entries and preparation of the Balance Sheet.

Unit 2 FINAL ACCOUNTS OF JOINT STOCK COMPANIES:

Components of Final Accounts of Joint Stock Company – Preparation of Trading and Profit and Loss Account, Profit and Loss Appropriation Account and Balance Sheet in the Prescribed Format – Problems on Preparation of Final Accounts of Joint Stock Companies with Simple Adjustments.

Unit 3 VALUATION OF GOODWILL:

For complete syllabus and results, class timetable and more pls download iStudy Syllabus App. Its a light weight, easy to use, no images, no pdfs platform to make students life easier.

Unit 4 VALUATION OF SHARES:

Meaning of Valuation of Shares – Circumstances necessitating the Valuation of Shares -Methods of Valuation of Shares – Net Assets Method, Yield Method and Earning Capacity Method -Simple Problems on Valuation of Shares.

Resources:

BOOKS FOR REFERECE:

1. Corporate Accounting by Dr.P.C.Tulsian -S.Chand& Company
2. Advanced Accounts Vol – II by M.C.Shukla -S Chand & Company
3. Accountancy Vol II by B.S. Raman
4. Accountancy Vol II by Kadkol
5. Advanced Accountancy ByS.K.R.Paul
6. Dailies and Magazines / Journals of Business, Finance and Management.

E – BOOK FOR REFERENCE:

For complete syllabus and results, class timetable and more pls download iStudy Syllabus App. Its a light weight, easy to use, no images, no pdfs platform to make students life easier.

SUGGESTED STUDENT ACTIVITIES:

1. Collection and analysis of Advertisements / Prospectus in news papers relating to issue of shares by Joint Stock Companies.
2. Listing of stages in the issue of shares of a Joint Stock Company.
3. Analyse and Listing of reasons for Forfeiture of Shares.
4. Drafting of Balance Sheet of Company.
5. Collection and Analysis of Financial Statements of Companies published in News papers.
6. Analyse and listing of reasons for valuation of Goodwill.
7. Listing of different methods of valuation of Goodwill.
8. Analyse and listing of reasons for valuation of shares.
9. Listing of different methods of valuation of shares.

Model Question Paper:

PART – A

(Answer any SIX Questions. 6 x 5 = 30

1. State different methods of issue of shares. Explain with examples. 5
2. The directors of Sun Company resolved that 1000 Equity Shares of Rs.10/- each are to be forfeited for non-payment of Final Call Money of Rs.3 per share. All the forfeited shares are reissued at Rs.8/- per share as fully paid-up.

Give Journal Entries for forfeiture & re-issue of shares.5

3. Give the meaning of company Final Accounts. Why they are prepared? 5
4. Give the specimen of Profit and Loss Appropriation Account of a Company. 5
5. Where do you show the following items in the Company’s Balance Sheet? 5
1. Calls-in-Arrears.
2. Forfeited shares amount.
3. Calls-in-Advance.
4. Preliminary expenses.
5. Discount on issue of shares and debentures.
6. The profits of a firm for the last five years are Rs.50,000, 60000, 55,000, 40,000 and 45,000. It is decided to take the value of Goodwill at 3 Years’ Purchase of the Average Profit of the last five years. Find out the value of Goodwill. 5
7. What do you mean by Face Value and Market Value of Shares? Explain. 5
8. Explain any two methods of valuation of shares. 5
9. ‘X’ Ltd declares dividend at 20% on its Rs.50 fully paid-up share. If normal expected rate in the market is 10%, what shall be the value of a share on yield basis? 5

PART -B

(Answer any FOUR Questions. 4 x 10 = 40

1. Define a Joint Stock Company. State different types of companies. 10
2. What is a Share? Briefly explain different kinds of shares. 10
3. A Company has share capital of Rs.10,00,000 divided into 10,000 shares of Rs.100 each.

It has issued all the shares to the public and the money payable is as follows:

1. On Application Rs.20 per share
2. On Allotment Rs.20 per share
3. On First Call Rs.30 per share
4. On Second and Final Call Rs.30 per share

All the shares were subscribed by the public and the moneys due were received.
Pass Journal entries to record the above transactions in the books of the company. 10

4. What is Share Capital? Briefly explain different types of Share Capital. 10
5. Aruna Mills Ltd., proposed to purchase the business of a Company. The Goodwill for this purpose was agreed to be valued at 3 Years’ Purchase of the Weighted Average Profitof the past 4 years. The weights to be used are 1,2,3& 4 respectively.

The profits for the past 4 years were: Rs.30,300, Rs.31,200, Rs.36,000 and Rs.45,000. On verification of the accounts, the following matters are found:

1. The 2nd year profit was calculated considering a major repair charge of Rs.9,000 on a Machine
2. The 3rd year profit included a non-recurring income of Rs.3,000.

Compute the value of Goodwill. 10

6. From the following data, find out the Value of each Share:

Balance Sheet of X Company Ltd.
[Liabilities Rs. Assets Rs.]

1. 20,000 Equity Shares of Rs.20 each 4,00,000 Goodwill 3,80,000
2. Investments 6,00,000
3. Reserve 5,00,000 Current Assets 1,00,000
4. Profit and Loss A/c 60,000 Loans and Advances 60,000
5. Unsecured Loans 1,60,000 Miscellaneous Expenditure 20,000
6. Current Liabilities 40,000

For the purpose of Valuation of Shares, the Goodwill shall be taken at 2 Years’ purchase of the Average Profit of the last 5 years.
The profits for the last 5 years are: Rs.1,20,000. Rs.1,40,000, Rs.80,000, Rs.1,00,000 and Rs.1,00,000. 10

PART – C

(Answer any TWO Questions. 2 x 15 = 30

1. The Mysore Trading company Ltd. Issued 10,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share. The amount was payable as follows.

Rs. 2 on Application Rs. 5 on Allotment (including premium),
Rs. 3 on first call and Rs. 2 on final call.
All the shares were subscribed and the money duly received except the final call on 1000 shares.
The directors forfeited these shares. These shares were re-issued at Rs.7 per share as fully paid.
Pass the journal entries for the above transactions.

2. Krishna Company Limited gives the following Trial Balance for the year ending 31-3-2008 & other information.

[Particulars Debit ( Rs. Credit (Rs)]

1. Equity Shares – 59,000
2. Purchases & Sales 72,000 98,000
3. Stock on 1-4-2007 6,000
4. Salaries 12,000
5. Rent 6,000
6. Discounts 2,200 4,400
7. Miscellaneous Expenses 500
8. Dividend 4,900
9. Debtors & Creditors 33,000 7,000
10. Machinery 25,000
11. Cash & Bank Balances 25,500
12. Share Premium 2,500
13. Debentures 10,000
14. Interest 3,900
15. Forfeited Shares 800
16. Directors’ Fees 3,000
17. Audit Fees 2,000
18. Unclaimed Dividend 1,000
19. P&L Appropriation A/c Balance on 1-4-2007 13,300

Adjustments:

20. Closing Stock was valued at Rs.12,000.
21. Depreciate Machinery by 10%
22. Transfer Rs.1,000 to Debenture Redemption Fund.
23. Transfer Rs.10,000 to General Reserve.
24. Commission earned but not received Rs.10,000.

Prepare the Final Accounts of the Company in the prescribed form.

3. Following is the information taken from the books of a concern:
1. Profits for the last 4 years: Rs.30,000, 40,000, 50,000 and 60,000.
2. Capital employed Rs.3,00,000.
3. Normal Rate of Profit 10%.
4. Present value of annuity of Re.1 for 4 years at 10% is 2.5.

From the above information, compute the value of Goodwill by:

5. Annuity Method.
6. 4 years’ purchase of Super Profit Method.
7. Capitalization of Super Profit Method.

For detail syllabus of all other subjects of BE Cp, C15 scheme do visit Cp 4th Sem syllabus for C15 scheme.

Dont forget to download iStudy Syllabus App for latest syllabus and results, class timetable and more.