Instruction: Attempt Any 4 Questions. Each Question Carries Equal Marks

Name of course : B.
Com (P) Part-II
Scheme/Mode of Examinations: Annual
Name of the Paper: Corporate Accounting
UPC/Subject Code: B-102
Time: 2+1 hours Maximum marks 75

Instruction: Attempt any 4 questions. Each question carries equal marks.
1. X Ltd. Issued a prospectus offering 200000 equity shares of Rs 10 each on the

following terms:
On Application Re 1
On allotment (Including Premium of Rs2) Rs 3
On first call Rs 4
On Final Call Rs 4
Subscriptions were received for 317000 shares on 23 rd April and allotment made on 30th
April was as under:
Shares Allotted
Allotments in full (two applicants paid in full on allotment

in respect of 4000 shares each) 38000
Allotments of 2/3 of shares applied for 160000
Allotments of ¼ of shares applied for 2000
Cash amounting to Rs 31000 (being application money received with applications for 31000
shares upon which no allotment was made) was returned to applicants forthwith. The
amounts due were received on due dates except with the first and final call on 100 shares.
These shares were forfeited on 15th November and reissued to A on 16th November on
payment of Rs 9 per share.
You are requested to Show journal and cash book entries in the book of X Ltd.
2. The following are the balances of reliance Ltd. As on 31 st March, 2020:
Debit Rs Credit Rs
Premises 3072000 Share Capital( Rs 10 each) 4000000
Plant 3300000 12% Debentures 3000000
Stock 750000 Profit and Loss Account 262500
Debtors 870000 Bills Payable 370000
Goodwill 250000 Creditors 400000
Cash and Bank 406500 Sales 4150000
Calls in Arrear 75000 General reserve 250000
Interim Dividend Paid 392500 Bad debt provision( 1-4- 35000
Purchases 1850000 2019)
Preliminary Expenses 50000
Wages 979800
General Expenses 68350
Salaries 202250
Bad Debt 21100
Debenture interest Paid 180000
12467500 12467500
Depreciate plant by 15%

Half- debenture interest due.
Credit 5% provision on debtors for doubtful debts
Provide for income Tax @50%
Stock on 31st March, 2020 was Rs 950000
Preliminary Expenses written off in 5 years.

Proposed final dividend at 12% on paid up capital after transfer to general reserve 5%
of profit.
Prepare final Accounts of the company as per schedule III of Division I of AS 1 to the
companies Act 2013.
3. The following are the assets and liabilities of A Ltd. And B Ltd. As at 31st March, 2020;
Particulars A Ltd. B Ltd.
Equity and Liabilities
Equity Share Capital Rs 10 each 1600000 500000
9% Preference Share Capital - 200000
General Reserve 900000 180000
Statutory Reserve 150000 90000
Investment fluctuating Reserve 150000 70000
Surplus 130000 -
10% Debenture - 200000
Creditors 200000 100000
Assets
Non-current Assets
Building 930000 450000
Machinery 560000 310000
Furniture 280000 115000
Current Assets
Stock 720000 225000
Debtors 450000 160000
Cash at Bank 150000 80000
On 1st April, 2020, A Ltd. Takes overs B Ltd. On the following terms;
Building and Machinery are valued at Rs 600000 and Rs 300000

A Ltd. Will Issue 50000 equity shares of Rs 10 each at Rs 12 to the equity
shareholders of B Ltd.
A Ltd. Will issue 2000, 10% preference shares of Rs 100 each at par to the preference
shareholders of B Ltd.
A Ltd. Will issue 2000, 12% Debentures of Rs 100 each at par to the debenture
holders of B Ltd.
A Ltd. Will bear the liquidation expenses of B Ltd.
Statutory Reserve and Investment fluctuation Reserve are to be maintained for two
more years.
You are required to pass journal entries in the books of A Ltd and prepare Balance sheet. If
Assuming that amalgamation is:
i) In the nature of Merger
ii) In the nature of Purchase
4 Prepare Cash flow statement from the following information:
Balance Sheet
Liabilities 2018-19 2019-20 Assets 2018-19 2019-20
Amounts Amounts Amounts Amounts
Creditors 40000 44000 Cash 10000 7000
25000 - Debtors 30000 50000
Loan from Bank 40000 50000 Stock 35000 25000
Capital 125000 153000 Machinery 80000 55000
Land 40000 50000
Building 35000 60000
230000 247000 230000 247000
During the year 2019-20, a Machine costing Rs 10000 (Accumulated Depreciation Rs 3000)
was sold for Rs 5000. The provision for depreciation against Machinery in the year 2018-19
and 2019-20 was Rs 25000 and Rs 40000 respectively. Net Profit for the year 2019-20
amounted to Rs 45000.
5. a) Average stock of a firm is Rs 40000.its opening stock is Rs 5000 less than the closing
stock. Calculate opening and closing stock amounts.
b) Difference between Current Ratio and Liquid Ratio?
c) Calculate Creditors Turnover Ratio and Average Payment Period/ Average age of creditors
from the following data:
Credit Purchases Rs 300000, Creditors at the beginning Rs 20000, Bills Payable at the
beginning Rs 8000, Creditors at the End Rs 12000, Bills Payable at the end Rs20000 and
reserve for discount on creditors Rs 10000.
6. a) state the provision of section 52 of the companies Act 2013
b) Write the conditions of amalgamation in nature of merger as per AS 14.
c) Explain the concepts of purchase of own debenture by the company in the open market at
Ex- Interest Price and Cum- Interest price and pass journal entries for purchase, sales and
cancellation of the own debentures.

Instruction: Attempt Any 4 Questions. Each Question Carries Equal Marks

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Instruction: Attempt Any 4 Questions. Each Question Carries Equal Marks

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Name of course : B.

Com (P) Part-II

Scheme/Mode of Examinations: Annual

Name of the Paper: Corporate Accounting

UPC/Subject Code: B-102

Time: 2+1 hours Maximum marks 75

1. X Ltd. Issued a prospectus offering 200000 equity shares of Rs 10 each on the

Allotments in full (two applicants paid in full on allotment

Depreciate plant by 15%

Preliminary Expenses written off in 5 years.

Building and Machinery are valued at Rs 600000 and Rs 300000

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