Bharathiar University BUSINESS COMMUNICATION- B.B.M Question paper

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III SEMESTER B.B.M EXAMINATION,NOV/DEC 2007


BUSINESS COMMUNICATION

TIME:3 HRS

INSTRUCTION: ANSWER TO BE WRITTEN COMPLETELY
SECTION-A
ANSWER ANT 10 SUB QUESTIONS.EACH QUESTION CARRIES 2 MARKS(MARKS:10*2=20)

1
a) What is business communication?
b) What is a circular?
c) Give the meaning of Non –Verbal Communication
d)What is E-Mail?
e) What is Rumour?
f) What is Jargon?
g) What is Electronic Meeting?
h) What is a Business Letter?
i)What is P.S?
j) Expand WWW
k) What is oral report?
l) What is Attention Line?

Section-b
Answer any five questions (marks: 5*5=25)

2. Explain the seven C`s of communication
3. State and explain types of networks
4.Distinguish between media and channel
5. What is a circular? Explain the need for it
6. Explain the barriers to listening
7. What is noise? Explin various types of noises
8. Distinguish between committee and conference
9. Briefly explain the advantages of communication

SECTION-C
ANSWER ANY TWO QUESTIONS(MARKS:3*15=45)

10Discuss the different types of interview in an organization
11. What is teleconferencing? State the advantages of teleconferencing
12. Discuss the characteristics of business reports
13. Explain the type of communication
14. The Famous Footwear Centre who has their main sales depot at their factory in Hosur road, Bangalore ,decided to shift their office to Commercial street Shivajinagar ,Bangalore. Draft a circular announcing the change

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2006 Bharathiar University BUSINESS MANAGEMENT- B.B.M. Question paper

III Semester B.B.M. Examination, Nov/Dec. 2006

BUSINESS MANAGEMENT
Paper - 3.4 : Corporate Accounting

Time : 3 Hours Max. Marks : 90

Instruction : Answer in English only.

SECTION - A

Answer any en questions. Each carries two marks : (10x2=20)

1. a) Give the meaning of 'intangible assets'.
b) Mention the meaning of 'paid-up-capital'.
c) What do you mean by 'Absorption' ?
d) How do you calculate purchase consideration under 'Net Assets Method' ?
e) What do you mean by 'Straight line' method of depreciation ?
f) Differentiate 'Internal' and 'External' reconstruction of a company ?
g) How do you treat 'Mortgage loan' in company final accounts ?
h) Under what head 'underwriting commission' is shown under company final accounts ?
i) What do you mean by "Dividend' ?
j) How do you treat 'over-subscription' of shares ?
k) What do you mean by 'Sinking Fund' ?
l) Mention the meaning of 'Irredeemable preference shares'.

SECTION - B

Answer any five questions. Each carries 5 marks : (5x5=45)

2. Mention the conditions to be satisfied in case of amalgamation in the nature of merger.

3. Discuss the legal provisions relating to alteration and reduction of capital.

4. SM Ltd., issued 5,000 equity shares of Rs. 50 each at a discount of 5%, payable as follows :
Rs. 10.00 on application
Rs. 15.00 on allotment (disc. adjusted)
Rs. 12.50 on I call and balance on II and final call

Of these 500 shares were forfeited, for non-payment of I call and II and final call. These shares were re-issued at Rs. 40 per share.

Pass journal entries for forfeiture and re-issue of shares.

5. PS Ltd., issued 2,000, 8% debentures of Rs. 100 each, payable as follows :
Rs. 20 on application
Rs. 40 on allotment and balance on II and final call.

First call was not received on 400 debentures. Pass journal entries.

6. following is the balance sheet of XY ltd., as on 31st Mar. 05 :

Liabilities Rs. Assets Rs.

Share capital : Buildings 19,00,000
12,000, 7% preference
shares of Rs. 100 each 12,00,000 Machinery 6,40,000
2,20,000 equity shares
of Rs. 10 each 22,00,000 Goodwill 2,40,000
Securities premium 3,20,000 Stock 2,80,000
Creditors 3,20,000 Debtors 1,80,000
Preliminary expenses 1,00,000
P and L A/c 7,00,000

40,40,000 40,40,000

Dividend on preference shares is in arrears from 1st April 2002 :

Terms of capital reduction scheme were :

a) Preference shares to be reduced to Rs. 80 each and equity shares to be reduced to Rs. 5 each, fully paid.

b) Goodwill, preliminary expenses, P and L A/c debit balance to be written off.

c) Buildings to be written down to Rs. 14,80,000. Pass journal entries and prepare balance sheet.

7. FB Ltd., sells its business to FC Ltd., as on 31st March 2007, when their balance sheet was as follows :

Liabilities Rs. Assets Rs.

Share capital : Goodwill 50,000
2,000 shares of Freehold property 1,50,000
Rs. 100 each 2,00,000 Plant and tools 83,000
Debentures 1,00,000 Stock 35,000
Creditors 30,000 Bills receivable 4,500
Reserve Fund 50,000 Debtors 27,500
P and L A/c 20,000 Bank 50,000

4,00,000 4,00,000

FC Ltd., agreed to take over assets (Excluding cash and goodwill) at 10% less than the book values and to pay Rs. 75,000 for goodwill and to take over debentures.

Purchase consideration was to be discharged by the allotment to the FB Ltd., of 1,500 shares of Rs. 100 each at a premium of Rs. 10 per share and balance in cash. Cost of liquidation of FB Ltd., amounted to Rs. 3,000. Show necessary ledger accounts in the books of FB Ltd.

8. Under what heading, the following items are shown in the balance sheet of a company ?

i) Loans to employees.
ii) Cost of issue of shares.
iii) Fixed deposits at SBM.
iv) Dividend equilisation fund
v) Pension fund
vi) Live stock
vii) Commission received but not earned
viii) Proposed dividend
ix) Patents and copy rights.
x) Forfeited shares A/c.

9. Prepare balance sheet of AC Ltd., from the following ledger balances as on 31st March 2007.

Equity share capital Rs. 5,00,000
Plant and machinery Rs. 6,00,000
12% preference share capital Rs. 4,00,000
Freehold property Rs. 3,00,000
Goodwill Rs. 1,00,000
10% debentures Rs. 4,00,000
Sundry debtors Rs. 1,40,000
Closing stock Rs. 2,00,000
Bank overdraft Rs. 60,000
Sundry creditors Rs. 60,000
Cost of issue of shares Rs. 40,000
Unclaimed dividend Rs. 50,000
Advertisement suspense A/c Rs. 90,000

SECTION - C

Answer any thee questions. Each carries 15 marks : (15x3=45)

10. From the following trail balance of PQS Ltd., as on 31st March 2007, prepare the company final accounts, after considering the following adjustments :

Adjustments :

i) Closing stock Rs. 1,20,000
ii) Depreciate building by 10%
iii) Accrued interest on investments Rs. 12,000
iv) Make provision for taxation Rs. 25,000
v) Transfer Rs. 25,000 to reserve fund.
vi) Write off bad debts by Rs. 10,000

Trial balance as on 31st March 2006.

Particulars Dr. (Rs.) Cr. (Rs.)

Called-up capita; 3,00,000
Reserve fund 1,50,000
Furniture 40,000
Buildings 80,000
Wages 50,000
Debtors and creditors 1,60,000 1,80,000
Investments 60,000
Interim dividend 30,000
Audit fees 10,000
Directors fees 15,000
Freight charges 15,000
Stationery 12,000
Purchases and sales 2,40,000 3,80,000
Returns 20,000 10,000
Bills of exchange 50,000 20,000
Machinery 80,000
P and L appropriation A/c 20,000
Cash at bank 58,000
Forfeited shares A/c 10,000
Calls in arrears 20,000
Goodwill 50,000
Stock (1.4.05) 60,000
Salaries 20,000

10,70,000 10,70,000

11. Following is the balance sheet of SP Ltd., as on 31.12.05

Liabilities Rs. Assets Rs.

Share capital : Land and Buildings 1,00,000
20,000 shares Rs. 10 each 2,00,000 Plant and Machinery 1,50,000
Debentures 1,00,000 Work-in-progress 30,000
Creditors 30,000 Stock 60,000
Reserve fund 25,000 Furniture 2,500
Dividend equalization fund 20,000 Debtors 25,000
P and L A/c 5,100 Bank 12,500
Cash 100

3,80,000 3,80,000

The company is absorbed by AT Ltd., on the above date; the consideration for the absorption is the discharge of debentures at a premium of 5%; taking over the liability in respect of sundry creditors and a payment of Rs. 7 in cash and one share of Rs. 5 of AT Ltd., at the market value of Rs. 8 per share in exchange for one share in SP Ltd., costs of liquidation of Rs. 5,000 is to be met by the transferee co.

Prepare necessary ledger accounts in the books of SP Ltd., and pass journal entries in the books of AT Ltd., assuming that amalgamation is in the nature of purchase.

12. ABC Co. Ltd., was formed with a share capital of Rs. 5,00,000 in shares of Rs.100 each ; issued to public 4,000 shares payable as follows :

Rs. 20 on application
Rs. 40 on allotment (including Rs. 10 premium)
Rs. 25 on I call
Rs. 25 on II and final call.

Company received applications for 6,000 shares and directors rejected and refunded excess application money. Directors did not make II and final call.

When the I call was made, one shareholder holding 500 shares failed to pay the I call money and another shareholder holding 600 shares failed to pay, also the I call money. These shares were forfeited and re-issued at Rs. 60 per share.

Pass journal entries and prepare balance sheet.

13. Balance sheet of A Co. Ltd., as on 31st March 2005.

Liabilities Rs. Assets Rs.

Share capital Goodwill 15,500
15,000 shares of Rs. 10 each 1,50,000 Buildings 85,000
Creditors 54,000 Machinery 40,000
Stock 27,000
Debtors 22,500
P and L A/c 14,000

2,04,000 2,04,000

A new company was formed with a nominal capital of Rs. 2,00,000 in shares of Rs. 10 each to take over assets and liabilities of existing Co.

Terms were :

i) Goodwill be eliminated and machinery be valued at 20% less in the books of New Co.

ii) That 15,000 shares of Rs. 10 each be issued to shareholders in the old Co., Rs. 7.50 per share paid up.

iii) The shareholders to pay the balance of Rs. 2.50 per share in cash.

iv) The creditors of the Co. to be satisfied by the payment to them half of the amount in cash and by the issue of 5% debentures as to the other half. Prepare necessary ledger accounts in the books of old Co. and show the entries to open the books of new Co. and prepare the opening balance sheet.

14. A Ltd. and B Ltd., carrying on similar business decided to amalgamate and form a new Co. to take over assets and liabilities of both the companies and agreed that fully paid shares of Rs. 100 each shall be issued by New Co. for the value of net assets of each of the old companies :

Balance sheets of A Ltd., and B Ltd., as on 31st March 2006.

Liabilities A Ltd B Ltd Assets A Ltd. B Ltd.

Share capital :
Shares of Rs. 50
each 50,000 40,000 Goodwill 5,000 2,000
General reserve 20,000 Land and Buildings 17,000 10,000
P and L A/c 3,000 Plant and Machinery 24,000 16,000
Creditors 4,000 8,000 Stock 10,000 7,500
Bills payable 4,000 Debtors 12,000 7,500
Bank overdraft 8,000 Furniture 5,000 7,500
Bank 8,000 300
P and L A/c 5,700

81,000 56,000 81,000 56,000

Following is the scheme of valuation of business of the two companies :

A Ltd : i) To provide for RBDD 5% on debtors.
ii) To write off stock by Rs. 400
iii) To write of plant and machinery by 33 1/3%

B Ltd : i) To eliminate goodwill
ii) To write off bad debts of Rs. 1,000 and provide RBDD 5% on debtors.
iii) To write off stock by Rs. 1,400
iv) To depreciate plant and machinery by 10%.

Compute purchase consideration and prepare necessary ledger accounts in the books of A Ltd and B Ltd. and prepare balance sheet of the new company.

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I NEED BANGLORE UNIVERSITY 3RD SEM BBM.. QUESTION PAPER PATTERN OF CORPORATE ACCOUNTING