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 (S R Patil) Department of Commerce. Surprise Test Date -16/03/2019                                  B.Com III Sem VI                            Total Marks 10 1)________is one of the method of depreciation a) Written down value b) FIFO     c) LIFO    d) HIFO 2) Net asset = Total Assets   - _______________ a) Total Liabilities b) 3 rd Party Liabilities c) Share Capital   d) Current Assets 3) One of the tax-free incomes from the following a) Salary b) Interest   c) Agriculture d) Rent   4) A person who is called “STRATEGY GURU”   A) Anil Ambani   B)Mukesh   Ambani   C) C.K.Pralhad   D) Michale Porter 5)...

(S R Patil)  Radhanagari Mahavidya Radhanagari  B Com -II sem-V Corporate Accounting Valuation of shares  Though, the company fixes the value of its shares, which is termed as face value, the actual price may be different and therefore, it becomes necessary to value the shares in the following circumstances. (i) When unquoted shares are to be sold by the shareholders. (ii) For Estate Duty purpose. (iii) At the time of amalgamation, absorption and reconstruction. (iv) If loan is to be raised on the security of shares. (v) Conversion of one class of shares into another class. There are three methods of valuation of shares viz. (1) Net Assets Method, (2) Yield Method, (3) Fair Value 1. Net Assets Method or Intrinsic Value Method This method is also called balance-sheet method or asset backing method, or intrinsic or break-up value method. Under this method, an attempt is made to determine as to how much amount per share a shareholder will receive on the date of determination...

(S R Patil)  B Com -I sem-II Financial Accounting  Signal Entry  (Conversion of Single Entry into Double Entry System) In the Std. XII we have studied 'Single Entry System'. Under Single Entry System, two-fold effect for each transaction is not given and it is recorded only once in the ledger. As such a Trial Balance and in turn Trading and Profit & Loss A/e cannot be prepared. Profit or loss is ascertained by comparing capital at the commencement of the period and capital at the end of the period. Now we have to study how to convert Single Entry into Double Entry System. Conversion of Single Entry into Double Entry System In order to convert Single Entry into Double Entry System the following steps are required to be taken. (i) To open all Real and Nominal Accounts in the books of accounts (Personal Accounts and Cash Book are maintained and as such there is no question of opening these accounts afresh.) (ii) From the Subsidiary Books, including Cash Book, and persona...

 (Sunil Patil) Meaning of Income tax and Levy of Income Tax Income tax is a tax on incorge Every person with an income in excess of a prescribed limit has to pay a tax Such tax charged on excess income is called Income tax Income tax is a direct tax It is contained in the income tax Act 1961 However every year the parliament passes a finance bill which can make amendments to Income tax Act. The rates of income tax for the year are specified in the finance bill (called the budget) For levy of income tax all the taxable income of a person should be determined as per the provisions of the Act and Rules. The income arising from any of the following heads is chargeable to tax () Income from Salary ii) Income from House Property i) Profits and Gains of Business or Profession. iv) Capital Gains v) Income from Other Sources The income of a person should be computed under each head separately. The total of such net amount from each head of income is called the "Gross total Income There are...

 (S R Patil) Profit or loss prior to and after Incorporation Profit prior to Incorporation A company comes into existence from the date of the issue of the certificate of incorporation by the Register of Companies. Some time a company is formed to take over existing business of partnership firms or limited company before getting a certificate of incorporation. However as the company comes into existence from the date of issue certificate of incorporation, the profit / loss sustained by the existing business from the date of agreement to purchase to the date of incorporation belongs to the purchasing company. Thurs any profit /loss to the company is entitled or before its incorporation is termed as " Profit /loss prior to imcorporation " and it is a capital gains The existing company to Purchase   business of partnership farm with effect from 1st April 2017 and it gets certificate   Of IncorporationOn 1st July   2017 the profit earned by the existing company fro...

 (S R Patil) conversations of partnership firms into a limited company Closing of books of account As the partnership firm is dissolved the books of the firm are required to be closed. Various account in the books of the firm are closed as under 1. All assets and liabilities are transferred to a Realisation Account 2. Undistributed profit or loss items are transferred to the Capital Account of the partner. 3. Limited company A/C is closed on receipt of purchase price,   shares, debenture, cash etc. 4. Partners Capital Accounts are closed by giving items cash, shares, debenture etc. Journal Entries 1. For transfer of assets to realisation account           Realisation A/C.               Dr.                      To Assets A/C 2. For transfer of liabil...

 (S R Patil) Conversation of partnership firms into a Limited company Introduction    := The partnership firms suffers from number of disadvantages -unlimited liability of partners, limited capital etc. To remove all such disadvantage of firm and to enjoy the benefits of company form, the big partnership firm is convinced into a limited company Meaning of conversation The conversation of a firm into a limited company means changing partnership from of organization to the joint stock company form. Objective of conversation 1.To raise additional capital required for expansion of the existing business 2.To take the advantage of limited liability principal. 3. To enjoy status of separate legal entry. 4. To acquire better position in society. Purchase consideration   The partnership firms sells it's business to limited company at an agreed price.   This agreed price is called as purchase consideration. Purchase consideration may be defined as " Th...