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2t NP - 338
lV Semester B.Gom. Examination, July/August 2A24
(NEP Scheme)
COMMERCE
Paper - 4.1 : Advanced Gorporate Aecounting
Time : 2/z Haurs Max. Marks : 60
lnstruction : Answer should be written in English or Kannada.
SECTION _ A
1. Answer any six sub-questions. Each sub-question carries two marks. (6x2=12)
a) What is capital redemption reserve ?
b) Name any two objectives of amalgamation of companies.
c) Who is a contributory ?
d) What is liquidator final statement of account ?
e) What is inflation accounting ?
f) Who is a liquidalor ?
g) State any two differences between Amalgamation and Acquisition.
h) State any two objectives of internat reconstruction.
SECTION - B
Answer any three questions. Each question carries four marks. (3x4=12)
2. Rakshita Company had 10,000,6% redeemable preference shares of 100 t
each fully paid. These shares were due for redemption on 31 March 2023 al a
premium of 10%. To carry out redemption, the company issued 2,500 equity
t
shares of 100 each at a premium of 7.5"/". The company had a balance of
50,000 in securities premium account and { 10,00,000 in Profit and Loss
t
Account. Pass Journal entries.
3. Pooja Sharma Company agreed to purchase Anand Co. Ltd. and the Co. had
agreed to issue 16,00p equity shares of T 10 each at a premium of 1O%.
1 ,000 8% preference shares of t 100 each at a premium of 10o/o, t 20,000 in
cash.
Calculate Purchase Consideration.
4. Calculate liquidator remuneration and also state the amount paid to unsecured
creditors from the following :
i) Balance of cash after paying preferential creditors { 4,10,000.
ii) Other unsecured creditors { 4,78,000.
iii) Liquidator remuneration is 3% on the amount paid to other unsecured
creditors.
P.T.O.
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5. Rahul Limited resorted to internal reconstruction. The scheme is as under
t
a) 20,000 equity shares of 10 each fully paid to be converted into 10,000
equity shares of t 5 each fully paid.
b) 1 ,000, 12o/o preterence shares of t 100 each fully paid to be converted into
10,000 equity shares of t 5 each, fully paid.
c) 150, 15% debentures of t 1 ,000 each to be discharged by issue of t 20,000
equity shares of t 5 each fully paid.
d) The amount so available to be appropriated as :
P & L debit balance T 1,00,000 ; Goodwill T 1,00,000 ; Plant and machinery
< 25,000.
Pass necessary Journal entries.
6. Write a note on Cloud based accounting.
SECTION _ C
Answer any three questions. Each question carries twelve marks. (3x12=36)
7. Following, is the Balance Sheet of XYZ Ltd. Co.
40,000 equity Goodwill 4O,0OO
shares of t 10 each 4,00,000 Buildings 82,000
Bank overdraft 61,700 Machinery 2,03,400
Sundry creditors 60,000 Stock 41 ,100
Debtors 60,000
Cash 6,000
P& LA/c 83,200
Preliminary expense 6,000
5 ,21,700 5,21,700
The company adopted the scheme of internal reconstruction.
a) Reduce the present value of equity shares to t 5 each fully paid.
b) The company to issue 26,000 equity shares of.t 5 each fully paid and pay
off bank overdraft.
c) Sundry creditors agreed to forego 20% of claims as the company decided
to pay them*cash immediately.
d) Reconstruction expenses amounted to { 4,000.
e) The director found that the machinery is over valued by t 20,000.
They also decided to write off intangible assets and P & L A/c completely.
Pass Journal entries and prepare reconstructed Balance Sheet.
8. Following is the Balance Sheet of Manoj Company and Bharath Company as
on 31 13122.
Liabilities Assets
Manoj Bharath Manoj Bharath
T{tr
Equity share Land and building 2,O0,OOO 3,O0,OOO
cap. (30,000 Plant and
shares) 3,00,000 3,00,000 machinery 3,OO,OOO 2,5O,OOO
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Reserves and Stock 1,50,000 1,50,000
surplus 1,00,000 2,00,000 Debtors 50,000 1,00,000
12% deb. 2,00,000 2,00,000 cash 20,000 20,000
Creditors 1,20,000 1,20,000
7,20,000 8,20,000 7,20,OOO 8,20,000
Above companies decided to amalgarnate their business and started a new
company named 'Maba' Company" The assets of both companies are - Fixed
assets 25"h mare, stock 15% less and debtors 107o less.
The purchase consideration is discharged by the issue to both companies
sufficient number of equity shares of t 10 each in 'Maba' Ltd. at an agreed value
t
of 12.50 per share" Prepare necessary ledger accounts in Manoj Company
and Bharath Company.
9. Balance Sheet of Rahut Company as on 31-3-2020 as under" Prepare Liquidator
final statement of accaunts.
Liabilities Amount Assets Amount
T T
50,000 Equity shares
10
of t each 5,00,000 Plant and machinery 4,00,000
2,000, 67" cumulative Furniture 1,000
preference shares oi lnvestment 50,00CI
t 100 each 2,00,000 Stock 50,000
7% debenture 1,00,000 Debtors 2,00,000
"1,200
Sundry creditors Cash
Trade 3,00,000 Frofit and Loss A/c 4,47,8CI0
Cash 48,000
Outstanding 2,000
tr 1,50,000 1't,50,000
Preference dividend are in arrear for one year. Debenture interest is also due for
one year. All outstanding creditors are preferential. The assets realised : Plant
and machinery { 2,80,000 ; Furniture t 400 ; Debtors { 1,50,000 ; The stock and
investments realisep nothing. The expenses of liquidation amounted to T 200.
The liquidator remuneration is 4"h on asset realised and 2o/" on amount paid
to unsecured creditors.
10. Balance Sheet of PKN Ltd. as on 31 -3-23 is as follows :
Liabilities Rupees Assets Hupees
9,500 preference Land and building 50,000
each
share of t 100 9,50,000 Mabhinery 1,30,000
Creditors 50,000 Furniture 10,000
Debenture 50,000 Stock 1,85,000
Debtors 90,000
Goodwill 1,00,000
P&L A/c 4,85',000
t 0,50,000 10,50,000
Np - 338 .4. txffiltilililililtililt
The company is to be reconstructed as
i) Shares of t 100 to be reduced to an equal no. of fully paid shares of
t 40 each.
ii) To issue 1,000 shares (new) of t 40 each, as fully paid up to the debenture
holders in full settlement.
iii) The amount available is utilised in writing off goodwill and profit and loss
account and the balance in writing down value of machinery.
Prepare Capital Reduction Account and New Balance Sheet.
1 1. The following is the Balance Sheet of XY Co. Ltd.as on 31-3-23.
Liabilities Amount Assets Amount
20,000 8% preference Fixed assets 8,00,000
redeemable share of Investment 2,00,000
t each
'10 2,00,000 Stock 80,000
40,000 7"/" redeemable Debtors 1,20,000
preference share of { i0, Bank 4,00,000
t 5 per share fully paid 2,00,000
40,000 equity share of
t 10 fully paid 4,00,000
Securities premium 1,60,000
General reserve 1,20,000
Capital reserve 1,40,000
Profit and Loss A/c 1,80,000
Current liability 2,00,000
16,00,000 16,00,000
On 1-4-23, the company redeemed both preference shares at a premium of 10%
in order to pay off the preference shareholders. The company issued 50,000
equity shares of t 10 each al5"/" premium.
Pass Journal entries and prepare reconstructed Balance Sheet.
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