(Pages: 4)

MAR IV
ANIOS COLLEGE
Reg. No..... THIRUV ANANTHAPURAM
(AUTONOMOUS)
Third Semester B.
Com.First(Elective
ADegree
ccountsProgramme
& Name:.
Audit) Degree Examination, February 2022
under CBCSS
Course: Commerce -I
Time: 3 Hours AUCOA391:
(for Corporate
Reappearance Admn.
2018
Accounting
only)
Max. Marks: 80
1 Define AccountingAnswer
Standard. SECTION-A
ALL questions in one or two
2 What is IFRSBoard? sentences.
3 What is AS1?
4 What is golden rule of valuation of
5. What are sweat equity shares? inventorjes?
6. Give the meaning for forfeiture of
7. What is unclaimed dividend? shares.
8 What is proposed dividend?
9. What is Amalgamation?
10. What is intrinsic value?
(10x 1= 10 Marks)
SECTION-B
h Answer any EIGHT questions, each in ashort paragraph not exceeding 50 words.
11. What do you mean by principles of single currency?
12. Differentiate between AS and Ind AS's.
13. Mention the different ways adopted for redemption of debentures.
14. What is extermal reconstruction?
15. What is Purchase consideration?
rk
16. What do you mean by intrinsic value method?
17. What do you mean by B list contributories?
18. How will youtreat the amount of profit prior to incorporation?
19. What do you mean by TDS?
20. What is interim dividend?
21. What is corporate dividend tax?
Rs. 100 each,fully paid up.
22. Gama Ltd. had 10,000, 10% Redeemable Preference shares of
shares at par, by issue of sufficient
The company decided to redeem these preference
share as fully paid up.
number of equity shares of Rs. 10each at a premium of Rs 2 per
company.
Pass necessary Journal entries in the books of the (8 x 2= l6 Marks)
P.T.O.
 SECTION -C
Answer any SIX questions, each in a paragraph not exceeding 120 words.
23. Explainthe different typcs of debentures.
24. wnat doyou mean by compulsory winding up?
What are the main books of accounts to be maintaincd by companies?
25.
(a listed
0 Ihe following js the evirael o Irial balance of Alpha Ltd
March 2019: Rs.
companyy 31.
Particulars 5,00,000
50,000equity shares of Rs l10cach
55,000
CapitalRedemption Reserve 30,000
Securities Premium 1,05,000
General Reserve 50,000
and Loss Account
Surplus i.e. credit balance of Profit shareholders bonus shares at the
Ihe Company
every decided to issue to equity rate of
4 shares held and for this purpose, it decided that there should be the trin,
jourmal entries.
reduction in free reserves. Pass necessary at a discount
Diamond Ltd. forfeited 150 equity shares of Rs. 20 each, issued of 32.
27. share, for non-payment of final call Rs. 6 per share. Subsequently 100 of these shat,
33.
re-issued as fully paid at Rs. 15per share. re-issue of shares. 34.
forfeiture and
28. Show the journal entries related to the
M/s ABC limited has gone into liquidation on 25" June, 2017. Certain creditors
and contributions from A list cont
receive payments out of realization of assets
took place in the year en.
The following are the details of certain transfers whích
March, 2017:
Share holders Number of Shares Dates of Ceasing Creditors Remaining Un
Transferred to be a Member and Outstanding on the Da
of such Transfer
P 4,000 10-05-2016 9,000
3,000 22-07-2016 12,000
R 2,400 15-09-2016 13,500
S 1,600 14-12-2016 14,000
T 1,000 09-03-2017 14,200
All the shares are of Rs. 10 each, Rs. 8 per share paid-up. Show the amount to be r35.
from the persons listed above. Ignore the remuneration to liquidaior and other expens
29. Aliquidator is entitled to receive remuneration @2% of the assets realized and 3%0
amount distributed among the unsecured creditors.
The assets realized Rs. 25,00,000 against which payment was made as follows:
Liquidation expenses 25,000
Preferential creditors 75,000
Secured creditors 10,00,000
Calculate the remuneration payable to the liquidator.
30. XLtd. was incorporated on 1" June,
2006 in order to purchase a running business
January,2006. Following particulars are available from its
Total sales for 2006 Rs. 40,000. record:
Sales from 1 January, 2006 to 30" May,
Gross profit for the whole year Rs. 15,000.,2006 Rs. 10,000.
 Total expenses of 5033 - R
2006 (including
Company share capital Rs. 37.500 directors fees Rs.500) Rs.12.500
Find out profit
prior to
Account in the books of incorporation
company.
and after incorporation and prepare Profit and Loss
Acompany was
January. incorporated
31.
from 1s on 1 pril to acquire the running business of partnership
incorporation Accounting ycar ends on 31 December. Find out the sales ratio of pre
and post
sales for the whole ycarincorporation periods from the following
(Jan to Dec.): information:
Sales for the months Rs.7,20,000
sales for August: 1½ January, June and July:
timcs of the average. Twice the average.
Sales for the months March and
September: ½of the average.
(6x 4 = 24 Marks)
SECTION - D
Answer any TWO
questions, not exceedingfour pages.
32. What is IFRS? Explain the need for convergence of national accounting standards with
Global Standards.
a2 What is underwriting? Explain the various types
ofUnderwriting.
24 Applications were invited by the directors of Grobigg Ltd. for 15,000 of its ordinary shares
at Rs.115 per share payable as follows:
a. On application on 1" April, 2018(including premium of Rs.15per share) Rs. 75
b. On Allotment on 30" April,2018 Rs.20
c. On first and final call on 31* May 2018 Rs.20.
Applications were received for 18,000 shares and it was decided to deal with these as
follows:
1. Torefuse allotment on applicants for 800 shares.
2. Togive full allotment to applicants for 2,200 shares
among the other applicants.
3. To allot the renmainder of the available shares pro-rata
applications in part payment of amount due on allotment.
4. To utilize the surplusreceived on amount due on the
applicant, to whom 400 shares had been allotted, failed topay the
An shares were
final call and his shares were declared forfeited on 31 July 2018. The
first and share. Pass Journal entries.
paid at Rs. 90 per
re-issued on 3" September, 2018, as fully 31-12-2019 of PLtd. and Q Ltd.
Balance sheet as on
35. The following are the PLtd. Q Ltd. Assets PLtd. Q Ltd.
Liabilities Rs. Rs.
Rs. Rs.
Buildings 15,000
Equity share capital Machinery 55,000 25,000
50,000 30,000 4,000
8,000
(Rs. 100 per share) Stock 4,500
7% Debenture of Debtors 7,000
10,000 1,500 500
Rs. 10 each. Cash
17,000
Reserve fund
Dividend Equalisation Fund
2,000
Employees P.F 1,500 4,000
Trade Creditors
5,000
Profit and Loss A/c 1,000 86,500
34,000
86,500 34,000

P.T.0
3
5033 - R
The two companies agrce to amalgamate and form a new company callcd
takes over the assets and liabilities of both the companies. The authorized
is Rs. 5,00,000 consisting of 50.000 equity shares of Rs. 10 cach. RcapilLaAld. o
The assets of P Ld. are taken over atat reduced valuation of 10% with
he
Building which are accepted at book value.
Both companies are to receive 5% of the net valuation of their
excepi
goodwill. The entire purchase price is to be paid by RLtd. in its fullyrespective
shareares1ob.usinbejIne,
paid
for debentures in P Ltd. debentures of the same amount and denomination
by R Ltd.
Give Journal Entries toclose the books of P Ltd. and Q Ltd. and show the
Sheet ofR Ltd.
the opening Ba,28
(2x 15= 30 M.

Ti

1.
2.
3.
 (P'ages: 6) 3U33
MAR
IVANIOS COLLEGE
THIRUVANANTI APURAM
(AUTONOMOUS)
Reg.No..

| Scmester
Third B. Com.
(Accounts &Audit) Degrec Name:.
First Degrcc
Programme under CBCSS
Elcctivc Coursc: Examination, March 202ZL
Tine:3 Hours AUCOA391:
(for Corp orate Ac
Commer
Regular 2020 Admn.
co
eunt
-Iing
only)
How
Answer
will you ascertain ALL
questSECTION
ions -A
in one or
Max.Marks: 80
What arc swcat intrinsiandc value of shares? two sentences.
cquity shares
worth' in thebonus
2

light ofshares?
Explainthe term 'net
What is ASB?
hat is mentioned in AS-29 Companies (Ind AS) Rules 2015.
Whatis External reconstruction?
6.
What do you mean by
1.
Write a short note on firm
sinking fund?
Whatis negative goodwillin underwriting.
case of
Define the term
contributory in case ofamalwinding
gamatioup.n in the nature of purchase?
(10 x 1= 10 Marks)
Answer any EIGHT questions, SECTION -B
each in ashort
II. Write short note on issue of shares at a 'paragraph not exceeding 50 words.
12 What are the
discount.
different methods used for redemption of
13. The paid up capital of Gunjan Ltd., is Rs. debentures?
af Rs. 10 each fully paid up 10,00,000 consisting of 60,000 equity shares
and
50,000 equity shares of Rs. 10 each Rs. 8 paid up.
bas RS. 50,000 in securities
premium account, Rs. 1,50,000 in P&L account (Cr),It
Rs. 2.50,000 in general reserve and Rs.
60,000in Capital Redemption Reserve Account.
By way of bonus ividend, the partly paid up
shares are converted into fully paid up
shares and the fully paid up shareholders are also allotted fully
paid up bonus shares in
the same ratio. Pass journal entries for the bonus issue.
There should be minimum
reduction in free reserves.
14. When can shares be offered without being offered to the existing shareholders?
J5. Differentiate between Amalgamation and Absorption.
16. How will youdeal with profit prior to incorporation in the books of a company?
17. Onl" January, 2015, White Ltd., issued 30,000, 15 % debentures of Rs 10 cach at a
discount of 5 %, redeemable on 31.12.2019, at a premium of 7%. Give jourmal entries
on issue and redemption of debentures.
l3. Briefly enumerate the guidelines issued by ICAI on "Disclosure of. Accounting Policies"
P.T.0.
 S033 amalgamation?
20. Alpha Lid.
L0 lOW are
forleited
reserves 150 incquity shares of Rs. 20 cach. issued at a discoun
treated
share, for non-pavment of final call of Rs. 6 per sharc, Subsequently
sharc. Pass
re-issued as fully paid at Rs. 15 per Journal cntrics on
Were
issuc.
21. Diflerentiate
between Capitalrescrve
priority of
and Revcnuc rescrvc.
preterential payments under Scc. 327
Sofetr
23.
ENplain bricllythe
22. Aliquidator other debts.
is cntitled
over
Act, 2013
toreccive2% ontheassctsrcalizod -1/% on the amount fhe Cotipa
the amounts paid to unsccurcd
and 3% on
to
preferential
were realized
creditors
for Rs.
Liquidation expenscs
25,00,000against which the
25,00,000
10,00,000
erelitors.
following payment was made:Ihea

Secured Creditors 75,000

Preferentialcreditors was Rs
The amount due to
unsecured creditors
Liquidator.
15,00,000. Calculate
remunerationpayable to preparation of Statement of affairs, Deficiency
need for
24. What is the statement of account?
Liquidator'sfinal dividends can be declared by a
sources from where company?
25. What are
the
business of Y Ltd. for which X Ltd. pays Rs. 4,00,000
26. shares Rs 10the
XLtd. ofacquires each, Rs 3.00,000in 15% debentures of X Ltd, and Rs. 3,50,00%
cash. Creditors for Rs 1,50,000 and employees security deposit Rs 30.,000 are ds
Calculate Purchase Consideration.
assumed by X Ltd.
SECTION -C
(8x2=16 Mat
a paragraph not exceeding 120 word.
each in
Answer amy SIXquestions, calculating Purchase consideratjon.
Explain the various methods of shares
27.
legal provisions regarding the redemption of preference 2021
28. Explain the sheet of NagaratnamLtd. as
on 31" March
Balance
29. Following is the Rs Assets R
Liabilities
each
4,00,000 Sundry Assets 17,70,0
|40,000 equity shares of 10 Cash 5,40,0
preference shares,
80,000, 8% redeemable 7,20,000
Rs. 9paid up 1,00,000
Securities Premium
4,00,000
Profit & Loss Account
1,60,000
General Reserve
5,30,000
Sundry Creditors 23.10,000
23,10,000
apremium of 50 paise per share on !
The preference shares were redeemable at
for this, as far as possible, out ofthe Company'
April, and it was decided to arrange
of Rs. 30.000in the P&L account. IM
resources subject to leaving acredit balance numberof
also decided to raise the balance of funds required by the issue of sufficient
accountis unabk
equity shares at a premium of 10 %. Assume the securities
premium
givg
shares. Give journal entries
for providing premiumon redemption of preference
effect to the above transactions. Limie
30. The Accounting Standards issued by the ICAI need to be followed only by
Companies and not by Partnership firms and Proprietorships. Comment
2
 nced lo he
/laan Standards convergence of Indiarn Accmunting Standards S011
wih Glohal
incorporated on|" April 2018 in order to take
2018 ALId. prepares its final over annning
Janary accounts on buinenfrm
r l l o(or
pre-ncorporation and "Decemher )018 Catealate
ales
nomaaon
post-incorporation perioda from the fotlning
(January
Sales,
to | Deccmber 2018) Rs 3,60,000
June and July
a)
Saleslor January, Iwice the average
Sales lorAupust
1,times of the ales
Salesfor
March nnd September V ofthe average
)
average
Ltd issued 70,000 cquity slhares of Rs. 10 each at a
supreme
nmoncy Rs. 3, allotment money
premium of Rs.2 per share
(applcaion
including premium Rs. Sand first and final
amountRs, 4). Company reccived 65,000 applications for shares. All the
applications were acccpted|and shares allotted
call
accordingly. were forfeited.
L.600sharesfailed to paythe first and final call. His shares Mohan, the subscriber
1200 of of
were reissucd |at Rs. 9 per sharc.
thesesharcs Journalise.
following isthe balance shcct of Dark Ltd. as on 31" March 2021:
Liabilities Rs Assets Rs
shares of 100 cach 14,00,000 Sundry Assets 18,00,000
14,000cquity
GeneralReserve 10,000 Discount on issue of shares 10,000
J0%debentures 2,00,000 Preliminary expenses 30,000
SundryCreditors 2,00,000 Profit &Loss Account 60,000
BankOverdraf? 50,000
BillsPayable 40,000
19,00,000 19,00,000
to take over the business of Dark Ltd. Calculate the purchase
Light Ltd., agreed
considerationand the consideration
per share of Dark. The market value of 70 % of the
is estimated to be 15 % more than the book value and that of the
sundry assets
remaining 30 %at 10 %less than the book value. Liabilities are taken over at book
values but there is
an unrecorded liability of Rs. 25,000.
Wind Ltd., was placed in voluntary
liquidation as on 31 December, when its Balance
i under:
sheet was as Assets Rs
Liabilities Rs
Freehold Property 5,80,000
Issued Share Capital:
each 5,00,000 Plant &Machinery 2,89,000
50,000 equity shares of 10 (25000) Motor Vehicles 57,500
Less: Calls in arrear
4,75,000 Stock 1,86,000
Paid up capital 74,000
6,00,000 Debtors
6000, 5 %cumulative preference shares 2,14,000
Securities Premium account 50,000 Profit &Loss Account
5% Debentures account 1,00,000
Interest on debentures 2,500
Bank Overdraft 58,000
Creditors 1,15,000
14,00,500
14,00,500
Preference dividend was in arrear for the last 4 years.
Company's articles provide that on liquidation, out of the surplus assels
le liabilities. there shall be paid
remaining after payment of liquidation costs and outside
on the preference
firstly arrears of preference dividend, secondly the amount paid up P.T.0.
3
 sharc, and thidlv
5033
shares together witlh a premium
of Rs.
holders.
10 per
dircctors.
balance rCmaining
:
share who werc called
be paid to thecquity was
guaranteed by the
bankto discharge the liability.
overdrafA The dircctors paid the amount to the bank. The aqida
The Bank
follows: Plant & Machincry
realized the
assctsas

Freeholdproperty
Rs. 7,00,000
Rs. 59,000
Stock Rs.2,40,000
Rs. 1,50,000
Calls in arrear Rs. 25,000
Motor vehicles Rs.60,000
Liquidation costs were Rs. 3820and liquidator's remuncration was 2% of he arnoNN
Debtors

realized. Account.
Statement of compulsory winding up of a
liquidator's

36.
Prepare
Explainthe stepsto be
followed in caseof
recorded in final accounts?
company by te
How is it
Court.
Contingent liabilities? Aiso gve
37. What are
examplesforit. and Reserves.
Provisions
Differentiate between
38.
SECTION-D
(6x4=24 Matks
questions, not exceeding four pages
Answer any TWO Ltd. as at 1-4-2018 are as
Ltd. and Beet
39. The
summarised balance sheets
Xat
of Xat
Beet
Liabilities Xat
Beetfol ows.
Liabilities
Equity shares of Rs 3,00,000|2,50,000| Plant
& Machinery 3,50,000| 4,00,000
10each 1,50,000 Stock 1,00,000 30,000
11% Pref. Shares 1,00,000| Debtors 1,25,000 70,000
12% Debentures 50,000 Cash at Bank 25,000 50,000
Profit& Loss alc 1,00,000
1,20,000
Reserve
30,000 50,000
Sundry Creditors
6,00,000 5,50,000 6,00,000 s,50,00
Ltd om
to amalgamate and form a new company XaBeet
The above companies agreed
the following conditions: of Rs. 0
shares in vendor companies, 6 shares of XaBeet Ltd.
1) For every 5 equity
each will be issued at par.
debentures of XaBet
holders of both the companies willbe issued 13 %
2) Debenture
denomination
Ltd. of the same amount and shares ol
holders of 11 % preference shares will be allotted, 4, 13% Preference
3) The
Rs 10each of XaBeet Ltd. for every 5 preference shares.
You are required to do the following:
a) Ascertain the Purchase Consideration.
b) Pass journal entries in the books of XaBeet Ltd.
c) Prepare the Balance sheet of the new Company. of
Mahest
business
40. ZED Ltd. was incorporated on 1" August, 2019 to take over the salesfortheyeat
Bros. as a going concern with effect from 1 April, 2019. The total relatedw
60,000
ending 31 March, 2020 amounted to Rs. 2,00,000 out of which Rs. followS
stoodas
the first four months. The Statement of Profit and Loss for the year
 Particulars 5033
Revenuefrom operations (Gross Profit) Amount
Other
Income 1,20,000
Add: Revenue(| +- Il) Nil
Total
IV.
III.
Less:Expenses: 1,20,000
Employee benefit expenses (Salarics)
Financecosts:
12,000
Debentureinterest
1,400
BankCharges 900
InterestonLoan
3.000
Depreciation andamortization Cxpenses:
Discount on issue of debentures
2,800
Othercxpenses:
Rentandrates 5,400
Salesman commission
9,000
Discount 3,500
Directorsfees 4,000
Electricitycharges 2,700
Carriage 4,500
Repairand renewal 1,500
BadDebts 700
Miscellaneous expenses 3,600
Total expenses 55,000
Profit(II- IV) 65,000
V, Net
arouse out of sales made during the period from 1" April 2019
200ofthe Bad debts
Rs. 2019. Prepare a statement showing the pre-incorporation and post
August,
incorporation
to profits.
as at
Fromthe
following particulars furnished by Zunsun Ltd., prepare Balance sheet
by Part I, Schedule II of Companies Act:
4.
31 March, 2020 as required Rs Rs
Particulars
value Rs. 100) 10,00,000
Fquity share Capital (face 1,000
Calls in arrear
2,00,000
Land 3,50,000
Building 5,25,000
Plant &Machinery
50,000
Furniture 2,10,000
General Reserve 1,50,000
Loan from State Financial Corporation 2,00,000
Stock: Finished Goods
50,000 2,50,000
Raw Materials
68,000
Provision for taxation
2,00,000
Sundry Debtors
42,700
Advances 1,60,000
Profit & Loss Account
Cash balance 30,000
Cash at bank 2,47,000
13,300
Preliminary expenses 1,21,000
Unsecured Loans 2,00,000
Sundry Creditors 19,09,000/ 19,09,000
Total
P.T.0.
5
 5033 provided:
followingadditional information is
The maturing on 30h
for Rs. 2,75,000
) Bills receivable werc duc for more than six months
Iune, 2020, have
2) Debtors of
52, O000
account with
been
1,50,000inthe Loan State Finance
3) The balance of includes Rs
by hypothccation of P&M 1500 interest
is sccurcd
Proposcd dividend Rs.
1,00,000.
42. 4)CA Guruprasad is appointcd as Liquidator of Slow Lid., in voluntary
1 July. The following balanccs are extracted from the books of the
Corporam,
accrucd

date:
Liabilitics Rs Assets
Rs
Share Capital: Machinery
24000 shares of Rs. S cach 1,20,000 Leasehold properties 45,000
Reserve for Bad dcbt 15,000 Stock in trade
75,000| Book debts
60,000
1,500
Debentures
Bank Overdraft 27,000| Investments 90,9,00
000
Liabilities for purchases 30,000 Calls in arrear
Cash in hand 1500
Profit & Loss Account 1,500
2,67,000 52,500
Prepare Statement of affairs to be submitted to the 2,67,000
meeting of creditor.
assets are valued as under by that date:
Machinery Rs. 90,000 Leasehold Properties
Rs. 1,09,000 2
Investments Rs. 6,000 Stock in trade Rs. 3,000 3
Bad debts are Rs. 3000 and doubtful debts are Rs. 6,000 which are estimated 4
Rs. 3.000. Bank overdraft is secured by a deposit of title deed of
leasehold
Preferential creditors are Rs. 1,500. Telephone rent outstanding Rs. 120. properta 5
6
43. Kapil Ltd. had equity capital of Rs. 2,00,000 divided into equity shares of Rs 10-. 7
Italso had 11% cumulative redeemable preference shares of Rs. 1,00,000. The bile
8
in the P&L account and general reserve as on 31" March, respectively were Rs Sitl
9
and Rs. 40,000. It also had Rs. 8000to the credit of securities premium account.
As per the agreement with the preference shareholders, the directors decided to redr 10
the shares on 1 April at a premium of 10%. It was also decided to sell se
investments whose book and market value on 31 March were Rs. 40,000
Rs. 50,000 respectively, toenable the redemption.
For the purpose of redemption, the Board decided to utilize the free reserves tit 11
minimum extent possible. It was decided to issue right equity shares at apremuu 12
20% to finance the redemption.
it 13
shareholders
After redemption, the Board decided to issue bonus shares to equity 14
ratio of 2for 5. Holders of 100 preferences were not traceable.
Show journal entries to record the above transactions in the books of the Comyy
ConvergelF
44. What are International Financial Reporting Standards? Why we have to l6
with Indian Accounting Standards? How it is made possible? (2x 15=30Mue
 (Pages: 4) 4597 -I
MAR
IVANIOS
COLLEGE
Reg.
No.:.
Semester B,
Third| Com. (Accounts &
First Degrec
(AUTONOMOUS)
THIRUVANANTHAPURAM
Audit) Degree Name:.
Electivc Coursc I: Programme under Examination, January
CBCSS 2021
Tinne:3 Hours
(for Regular 2019AUCOA391:
Admn.Corporat
only) e Accounting
Answer ALL SECTION -A Max. Marks: 80
mean by ASB? questions one or
Whatdo you
in two sentences.
AS?
1. What is Ind expanded form for
Givethe IFRS.
Whatis minimum subscription?
4. Whatis:Reserve Capital?
Mentionthe different ways for redemption of
5.
What is Amalgamation? Preference shares.
What do you mean by Secured Creditors?
7.
Whatdo you mean by contingent liabilities?
What is profit prior to incorporation?
10.
(10 × 1= 10 Marks)
SECTION-B
Answer any EIGHT questions, each ina short paragraph not exceeding 50 words.
Define. Accounting Standards.
What do you understand by "Convergence vs. Adoption of IFRS"?
12.
Whatisthe significance ofemergence of IFRS as global standards?
13. W mean by Indian GAAP?
What do you
14. Differentiate cum-interest and ex-interest.
15. What is Underwriting?
issut ik
corporate dividend tax?
17 What is finance costs?
able a 18 What are Tax?
10 What do you mean the by advance payment of Income
you treat amount of profit prior to incorporation?
20. How will ratio?
mium 21. What is
time
consideration?
What is net asset method of purchase
22. procedure of Inter company stocks.
for de 3. Explain the accounting treatment of Secured Creditors.
accounting
ued on 24. Explain the 40,000 equity
non-payment of
shares of Rs 10each, Rs 8 called-up, forallotment money
25. Beta Ltd. forfeited
assets Application money @ Rs 2 per share and Entry for the
first call money @ Rs 2 each. received by the company. Give Journal
per share have already been
@Rs 4
ompan, forfeiture. issued 30,000 15% debentures of Rs. 10 each at a
White Ltd.,
Pproaci 26. On 1" January, 2015,
on 31/12/2019 at a premium of 7%. Write journalentries in the
discount of 5% redeemable
the company on issue and redemption of debentures. (8 x2=16 Marks)
booksof
SECTION C
exceeding 120 words.
in a paragraph not
Answer any SIX questions, each shares.
27. Write short note on: Re-issue offorfeited
b.
a. Utilization of securities
premium account. provisions? P.T.O.
28. What are the difference between reserves and
4576
29. Explain the types of Amalgamation.
30. Explain the term 'Statement of Affairs'.
preference shares of Rs. I0
31. ABC Ld. had 9000, 10%redecmablepreference shares at par by cach,
the iuly
Company decided to redccm thcse Pass nccessary paia,
shares of Rs. 9cach fully paid up.
number of cquity
32. On 1" April. 2018, Eurcka Forbes Ltd. has an outstanding liability on 5000,
of Rs. 100 cach redcemable at the
option of the company by drawing
Journal entie,
purchase in theopen markct. During the year 2018-2019it decided toredecm
I,00,000 debenturcs in the open market
debentures by purchasing Rs.
draw lots for Rs. 50.000 debentures, Writc Journal
cntrics in the books ofat Rs. 9%Rs.l
33. XLtd. was incorporated on 1" Junc, 2016 in order to purchasc a running bu
January, 2016. Following particulars are
80,000.
availablc from its record: ac ounty,
a. Total sales for 2016 Rs.
b. Sales from 1 January, 2016 to 30" May, 2016 Rs. 20,000.
Rs.30,000.
C. Gross profit for the whole ycar dircctors' Tees Rs.1,000) Rs.,25. 000
d. Total expenses of 2016 (including
Rs. 75,000
C. Company share capital incorporation and after incorporation and prepare
Find out profit prior to
Account in the books of company.
on 1 April to acquire the running
Proft and
Acompany
34. from 1" January. Accounting year ends on 31" December. Find outbusiness
was incorporated the salesof
the following information:
incorporation and post incorporation periods from20,000
parne
a. Sales for the whole year (Jan. to Dec.):
Rs.
b. Sales for the months of January, June and July: Twice the average.
C. Sales for August: 2½ times of the average.
d. Sales for the months of March and September: 12 of the average.
35. XLtd. agreed to take over the business of YLtd. on the following terms:
a. Shareholders of Y Ltd. are to be paid Rs.50 in cash and two shares of
Ltd. for every share of YLtd. YLtd. has 20,000 equity shares outstanding.Rs.20 eachi
b. The debenture holders holding 10,000 debentures of Rs.50 each are to be
premium of 10%.
c. Cost of Liquidation amounting to Rs. 50,000 are to be borne by X Ltd. rede meda
Compute the purchase consideration.
36. You are given the Balance Sheet ofH Ltd. as on 31" March 2016.
Liabilities Assets
20,000 equity shares of Rs. 10 each 2,00,000 Fixed Assets
8,00,000
General Reserve 6,00,000 Investments
2,00,000
Profit and Loss A/c 6,00,000 Current Assets
5,00,000
Trade creditors 3,00,000 Preliminary expenses 1,20,000
Share issue expenses 80,000
17,00,000 17,00,000
On the date of Balance Sheet the company was taken over by the A Ltd. on the followi
terms:
a. Fixed assets are revalued at Rs. 11.20,000
Investments have market value Rs. 1,60,000only.
c. Current assets are agreed at Rs. 4,40,000 for the purpose of
Youare required to calculate the purchase absorption.
37. M/s ABC Ltd. has gone into liquidation consideration.
on 25h June, 2017. Certain
receive payments out of realization of assets and contributions from Acreditors
list
could na
The following are the details of certain transfers contributoris
March, 2017:
which took place in the year ended sl
Share No. of Shares Dates of Ceasing
holders Transferred to be a Member
Creditors Remaining Unpaid and Outsan
on the Date of such Transfer
P 8,000 10-05-2016 18,000
6,000 22-07-2016 24,000
R 5,000 15-09-2016 27,000
3.200 14-12-2016 28,000
T 2,000 09-03-20 17 28,400
2
 shares are of
Allthe persons Rs.20
fromthe is listed above.cach, Rs. 16
per 4576
liquidator
ontitled recciveIgnore the share paid-up.
to
to Show the amournt to be realized
anount distributed among the
28. A
assctsrealized Rs. unsccured re
remuneratmuner
i
crediotn
o ation
(a2% the
rs. of liquiassets
dator and other expenses.
25,00,000 against which
LiquidalionCxpcnscs 25,,000
The
realized and 3% of the
Preferentialcreditors 75,000
Securcd.creditors 10,00,000
payment was made as
follows:
the
Calculate remuneration payable to the
liquidator.
Answer any TWO aSECTION-D (6 x 4= 24
Accountquest
ing ioStandards.
ns, exceeding four
the
Explain Objectives of not Marks)
39.
Accounting Standards. Also explain thepages.
Sheet
Every Balance at
a of
company
shall give a true and
of process issuance
of
company as the end of the fair
4. the
section129 of the companies Act, be in the
form
financial
year and shall, view the state of affairs of
of
subject
thestatement and give the form of Balance Sheet. set out in partI of to the of provisions
Ld.invited applications for 10.000 Schedule VI.".Expand
A
41. share. The amount
shares
is payable as follows: On
of Rs. 100
each at a premium of
premium), on first call Rs. 25 applications Rs.10 per
(including and on final call Rs.Rs 25.25, on allotment Rs.35
receivedfor 9000 shares and these were The
in full. All money applications were
except the first and final call accepted
money on 200 shares, which were due were received
shares, 100 shares were subsequently re-issued @
Rs.90including forfeited. Out of these
per share.
passJournal entries for recording the above transactions cash. You are
required to
42. On1sst January 2016MLtd..and NLtd. agreed to amalgamate by
neW company, MN) Ltd. formed for that purpose with a transferring
capital of
their undertakings
toa
shares of Rs.10 each.
On 1 January 2016 the Rs.5,00,000 divided into
Balance sheets of the company
Liabilities M Ltd. N Ltd, stood as follows:
Assets M Ltd. N Ltd.
Rs. Rs.
Rs. Rs.
Sharecapital Machinery 2,60,000 1,65,000
each) 2,50,000
(Shares of Rs. 5 1,50,000 Stock 40,000 30,000
12% Debentures 50,000| Debtors 32,500 25,000
Mortgage Loan 30,000 Cash at bank 7,500
General Reserve 25,000 Preliminary 10,000 5,000
Profit and Loss A/c 22,500 15,000| Expenses
Sundry creditors 22,500 10,000
3,50,000 2,25,000 3,50,000 2,25,000
NLtd. agreed to take over the trade liabilities and assets (except cash of MLtd.) of both
companies, the consideration being:
:Discharge of the debentures of N Ltd. by the issue of equivalent amount of 14%
debentures of MNLtd.
ii. Acash payment of 50paise per share of M Ltd., and N Ltd.
ii. Exchange of one share of Rs. 10 each at the agreed value of Rs. 14 per share of MN
Ltd. for every 2shares held in M Ltd., and N Ltd.
the amount received
iv. MN Ltd, issued 5,000 shares to its directors a Rs. 14 per share and
immediately.
companies were revalued as given:
For the purpose of amalgamation, assets of both the NLtd.
M Ltd.
87,500
Goodwill 50,000 1,50,000
b. Machinery 2,80,000 28,000
C Stock 36,000 24,500
books of
d. Debtors 31,500 journal entries in the after
opening.
Close the books of both MLtd. and NLtd. Give Ltd., appear immediately
asit will
MN Ltd., and the Balance Sheet of MN
prepare
amalgarnation. P.T.O.
4570
The
43. X Co. Ltd. went into liauidation on 1" April, 2016. fol owing
from its books on that date:
Liabilities
Share capital :
Amount
Assets
Machinery
2,40,000 Leaschold properties
bal ne s 9

24000 equity shares of Rs 10 cach. 1,50,000 Stock

Debentures (secured by floating charge) 54,000 Debtors
Overdraft 60,000 Investments
Creditors Cash in Hand Reg.

Profit and Loss A/c

5,04,000
valucd as undcr:
The following assets are 1,80,000
Machinery
Leasehold properties : 2,18,000
Investments 12,000
Stock 6,000 Time
1,40,000
Debtors leasehold
by deposit of title deeds of
The bank Overdraft is secured
preferential creditors of Rs. 3,000
which were not included in creditors Rs. properties,
44. the statement
From of affairs.
the following Trial Balance and other information of S Ltd. prepare Final acx 1
for the year ending 31.03.2018: Dr. Amount Cr. Amount
2
Particulars 3
3,00,000
Land and Buildings
Paid up capital (shares of Rs. 100 each) 3,20,000 4
Reserve fund 32,000
Purchases and Sales 1,92,000 3,56,000
24,800 6.
Salaries
18,400
Wages 16,000
Preliminary expenses 4,800 8.
Interest 64,500
Profit and Loss appropriation account 9.
8,400 10.
Carriage
Opening Stock 60,000
Returns
12,800 16,400
Audit fees 8,400
Freight 8,200
Interim dividend 7,200
Bills receivables and Payables 25,400 20,800 11.
Calls in arrears 8,000 12.
Cash in hand 10,400
24,800 13.
Goodwill
Debtors and Creditors 28,200 35,600 14.
Investments 34,000 15.
Furniture 28,000
6% Debentures 80,000 16.
Bank overdraft 10,400
17.
Plant and Machinery 1,20,000
Bad debts 5,500 18,
9,40,500 9,40,500 19.
Adjustments
a. Closing stock Rs. 93,200,
b. Depreciate furniture by 5% and Machinery by 10%
c. Provide reserve for doubtful debts at 5%.
d. Write off preliminary expenses by 20%
e. Transfer Rs. 24,000 to Reserve fund
f. Provide for debenture interest for one year.
30Mu
(2x15=
 (Pages: 5) 5033 -1

MAR IVANIOS COLLEGE

Reg. No.:...
(AUTONOMOUS)
THIRUVANANTHAPURAM Name:.
ThirdSemester B. Com. (Accounts&
Audit) Degrec Examination, February 2022
First Degree Programme under CBCSS
Elective Course: Commerce -I
AUCOA391:
for
Corporate Accounting
Time: 3Hours Improvement 2019 Admn. only)
Max. Marks: 80
SECTION A
Answer ALL questions in one or two
1. Define Accounting Standard. sentences.
2. What is IFRS Board?
3. What is AS1?
4 What is golden rule of valuation of
5. What are sweat equity shares? inventories?
6. Give the meaning for forfeiture of shares.
7. What is unclaimed dividend?
8. What is proposed dividend?
9. What is Amalgamation?
10. What is intrinsic value?
(10 × 1= 10 Marks)
SECTION-B
Answer any EIGHT questions, each in a short paragraph not exceeding 50 words.
I1. What do you mean by principles of single currency?
12. Differentiate between AS and Ind AS's.
la 13. Mention the different ways adopted for redemption of debentures.
14. What is external reconstruction?
15. What is Purchase consideration?
16. What do you mean by intrinsic value method?
T17. What do you mean by B list contributories?
18. How will you treat the amount of profit prior to incorporation?
19. What do you mean by TDS?
20. What is interim dividend?
21. What is corporate dividend tax?
a22. Gama Ltd. had 10,000, 10% Redeemable Preference shares of Rs. 100 cach, fully paid up.
The company decided to redeem these preference shares at par, by issue of sufficient
number of equity shares of Rs. 10each at a premium of Rs 2 per share as fully paid up.
Pass necessary Journal entries in the books of the company.
23. What are the functions of IFRS?
24. What do you mean by provision?
25. What is Capital Reserve?
PT.O
 5033 - I 2000 8% Dcbentures of the
Lid. purchascd its own immediate
26. On 3 Ist
2,00,000
March.2015, 7
from the open Journal
for
markct at Rs 92 cntrics. cancellation.
The
Pass
to Rs 4000.
purchascs amountcd
SECTION-C
questions, eachin a
Answer any SIX types ofdebentures.
different
paragraphnot exceeding (8x2-1h,
120 words
27. Explain the winding up?
What do you mcan bycompulsory to be maintained by companies?
28. main books ofaccounts
29. What are the Ltd (a listed
of Alpha
30. The following
March 2019:
is the extract of trial balance
Rs.
Company 2
Particulars 5,00,000
10 each
50,000 equity shares of Rs 55,000
Capital Redemption Reserve 30,000
Securities Premium 1,05,000
General Reserve 50,000
Profit and Loss Account
Surplus i.e. credit balance of equity shareholders bonus shares at the rate of 1
to issue to
every 4 shares decided
The Company held and for this purpose, it decided that there should be the mi
necessary journal entries.
reduction in free reserves.Pass issued at a discOUnt a6.
31. Diamond Ltd. forfeited 150equity shares of Rs. 20 each,
share, for non-payment of final call Rs. 6 per share. Subsequently 100 of these shar
re-issued as fully paid at Rs. 15 per share.
forfeiture and re-issue of shares.
Show the journalentries related to the
June, 2017. Certain creditors
32. M/s ABC limited has gone intoliquidation on 25"
from A list contrik.
receive payments out of realization of assets andcontributions
the year enk.
The following are the details of certain transfers which took place in
March, 2017:
Share holders Number of Shares Dates of Ceasing | Creditors Remaining Unt
Transferred to be a Member and Outstanding on the D
of such Transfer
P 4,000 10-05-2016 9,000
3,000 22-07-2016 12,000
R 2,400 15-09-2016 13,500
1,600 14-12-2016 14,000
1,000 09-03-2017 14,200
Allthe shares are of Rs. 10 each, Rs. 8 per share paid-up. Show the amount to bei
fYom the persons listed above. Ignore the remuneration to liquidator and other exper
33. Aliquidator is entitled to receive remuneration(@2% of the assets realized and 3
amount distributed among the unsecured creditors.
The assets realized Rs. 25,00,000against which payment was made as follows:
Liquidation expenses 25,000
Preferential creditors 75,000
Secured creditors 10,00,000
Calculate the remuneration payable to the liquidator.
 5033 - I
3. XLid. was incorporated on 1" June, 2006 in order to purchase arunning business from 1"
January, 2006. Following particulars are available from its rccord:
Total sales for 2006 Rs. 40,000.
Sales from 1" January, 2006 to 30" May, 2006 Rs. 10,000.
Gross profit for the whole year Rs.15,000.
Total expenses of 2006 (including dircctors' fecs Rs.500) Rs.12,500
Company share capital Rs. 37,500
Find out profit prior to incorporation and after incorporation and prepare Profit and Loss
Account in the booksof company.
35. A Company was incorporated on 1 April to acquire the running business of partnership
from 1 January. Accounting year ends on 31 December. Find out the sales ratio of pre
incorporation andpost incorporation periods from the following information:
Sales for the whole ycar (Jan to Dec.): Rs.7,20,000
Sales for the months January, June and July: Twice the
average.
Sales for August: 12 times of the average.
Sales for the months March and September: ½ of the
average.
36. The following is the Balance Sheet of X Ltd. as on the date of its
acquisition by Y Ltd.
Liabilities Amount Assets Amount
Share capital 10,00,000 Goodwill 3,00,000
Reserve Fund 3,00,000 Land and Buildings 5,00,000
Creditors 4,00,000 Machinery 4,00,000
Employees P.F 1,00,000 | Stock 2,00,000
Debtors 3,50,000
Cash 50,000
18,00,000 18,00,000
On acquisition, goodwill is valued at Rs., 4.50,000., Land and Building at Rs. 6,00,000 and
stock at Rs. 1,80,000. AIl assets and Liabilities are taken over. Calculate the amount of
purchase consideration.
37. Explain the objectives of Amalgamation.
38. XLtd. agreed to take over the business of YLtd. on the
following terms.
a) Shareholders of Y Ltd. are to be paid Rs.10 in cash and two shares of
Rs.10 each in X
Ltd. for every share of Y Ltd. Y Ltd. has 40,000 equity shares
b) The debenture holders holding 60,000 debentures of Rs.50 eachoutstanding.
are to be redeemed at a
premium of 10%.
c) Cost of Liquidation amounting to Rs. 10,000 are to be borne by
X Ltd.
Compute the purchase consideration.
(6 x 4 =24 Marks)
SECTION -D
Answer any TWO
39. What is IFRS? Explain the needquestions, not exceeding four pages.
for convergence of national
Global Standards. accounting standards with
40. What is underwriting? Explain the
41. Applications were invited bythe various types of Underwriting.
at Rs.l15 per share payable as
directors of Grobigg Ltd. for 15,000 of its ordinary shares
a. On application on 1 April,
follows:
b. On Allotment on 30 2018(including premium of Rs.15 per share) Rs. 75
April,2018 Rs.20
3
P.T.O.
 c. On first and final callon 31 May 2018 Rs.20.
Applications were received for 18,000 sharcs and it was decided to
follows: dcal with
1. To refuse allotment onapplicants for 800 shares.
F
2. To give full allotment to applicants for 2,200shares
3. To allot the remaindcr of the available shares pro-rata amongthe other th
4. To utilizethe surplus received on applications in part payment of amount
An applicant, to whom 400 shares had bccn allotted, failed to pay the aamountdueonp licantsalka
first and final call and his shares were declarcd forfeited on 31" July
re-issued on 3r September, 2018, as fully paid at Rs. 90 per share. Pass The Sdhuaree,
2018.Journal
42. The following are the Balance sheet as on 31-12-2019 of PLtd. and QLtd.
Liabilities PLtd. Q Ltd. Assets P Ltd.
ent ie S
e

Rs. Rs.
Rs.
Equity share capital Buildings 15,000
(Rs. 100per share) 50,000 30,000 Machinery
7% Debenture of Stock 55,8,000
000 |25
Rs. 10 each. 10,000 Debtors
7,000
Reserve fund 17,000 Cash
1,500
Dividend Equalisation Fund
Employees P.F 2,000
Trade Creditors 1,500 4,000
Profit and Loss A/c 5,000
1,000 k
86,500 34,000 86,500 1
34
The two companies agree to amalgamate and form anew company called RLta
takes over the assets and liabilities of both the companies. The authorized capital t:
is Rs. 5,00,000 consisting of 50,000 equity shares of Rs.10 each. p
q
The assets of P Ltd. are taken over at reduced valuation of 10% with the excant.
Building which are accepted at book value. S

Both companies are to receive 5% of the net valuation of their respective busie t
goodwill. The entire purchase price is to be paid by RLtd. in its fully paid shares. b:
for debentures in P Ltd. debentures of the same amount and denomination are to bei
by R Ltd.
Give Journal Entries to close the books of P Ltd. and Q Ltd. and show the opening b.
Sheet of R Ltd.
43. Unstable Ltd.went into compulsory liquidation. Their summarized Balance Shet ast a
March, 2016 appears as under:
Liabilities Amount Assets Amoudl
2,50,000 Equity Shares of Rs. 10 each 25,00,000 Land and Buildings 5,00,0 C
Secured Debentures (Security Land Other fixed assets 20,000
and Buildings) 10,00,000 Current assets 45,00,0
Unsecured creditors 20,00,000 Profit and Loss Account 20,00.0
Trade creditors 35,00,000
90,00,0M
90,00,000
Contingent liabilities are:
For bill discounted : 1,00,000
4
 For Excise duty demands 5033 -
On investigation, it is found1,50,000
that the contingent
the asscts are likely to be liahilities are certain to devolve and that
realized
Land and Buildings: 11,00,000 as follows:
Other fixed assets 18,00,000
Current asscts
35,00,000
Taking the above into account, prepare the
44. S LId., was incorporated with a nominal Statement of Affairs.
cach. On 31" March, 2018, 25,000 sharescapital of Rs. 5,00,000 in equity shares of Rs. 10
were fully called up. The following balances
were cxtracted from the ledger of thecompany as on 31"
a) Stock -50,000 March 2018:
b) Salcs -4,25,000
c) Purchascs -3,00,000
d) Wages (productive) - 70,000
c) Discount allowed- 4.200
) Discount reccived - 3.150
g) Insurance up to 30.6.2018 -6,720
h) Salarics - 18,500
i) Rent - 6,000
i) Gencralexpenses - 8,950
k) Profit and Loss A/c - 6.220
I) Printing and Stationery - 2,400
m) Advertisement - 3,800
n) Bonus 10,500
o) Debtors 38,700
p) Creditors - 35,200
q) Plant and Machinery - 80,500
r) Furniture 17,100
s) Cash at Bank - 1,34,700
t) General Reserve - 25,000
u) Loan from Managing Directors - 15,700
V) Bad debts - 3,200
w) Calls in arrear 5,000
Loss for the year ended 31 March
You are required to prepare statement of Profit and
The following further
2018 and the Balance Sheet in the prescribed form as on that date.
information is given to you.
a) Closing stock was Rs. 91,500
machinery and furniture at 15% and 10%
b) Depreciation is to be charged on plant and
respectively.
Wages Rs. 5200; Salary Rs. 1,200
c) Outstanding liabilities on 31" March, 2018 were:
and Rent Rs. 600.
provided.
d) Dividend for the year ended 31"March, 2018@S% is to be
e) Make a provision for taxation @30% (2x 15 = 30 Marks)