F–5889 Sub.

Code
7BCO5C1

B.Com. DEGREE EXAMINATION, NOVEMBER 2021

Fifth Semester

Commerce

CORPORATE ACCOUNTING

(CBCS – 2017 onwards)

Time : 3 Hours Maximum : 75 Marks

Part A (10  2 = 20)

Answer all questions.

1. What do you understand by issue of shares at premium?

•øÚ©zvÀ £[SPÒ öÁΰkuÀ GßÓõÀ GßÚ?

2. What is a debenture?
Phß £zvμ® GßÓõÀ GßÚ?

3. What do you mean by profits prior to incorporation of a

company?
J¸ {Ö©® £vÄ ö\´ÁuØS •¢øu¯ C»õ£[PÒ GßÓõÀ
GßÚ?

4. What do you mean by time ratio?

÷|μ ÂQu® GßÓõÀ GßÚ?

5. Write a short note on share capital.

£[S ‰»uÚ® SÔzx J¸ ]Ö SÔ¨ø£ GÊx.
6. State any two statutory provisions relating managerial
remuneration.
{ºÁõP Fv¯® öuõhº£õÚ Cμsk \mhŸv¯õÚ ÂvPøÍ
SÔ¨¤hÄ®.

7. What is capital reduction account?

‰»uÚ SøÓ¨¦ PnUS GßÓõÀ GßÚ?

8. What do you mean by amalgamation?

J¸[Qøn¨¦ GßÓõÀ GßÚ?

9. What is goodwill?
|Øö£¯º GßÓõÀ GßÚ?

10. What do you mean by liquidator’s final statement of

account?
Pø»¨£õͺ CÖv PnUS AÔUøP GßÓõÀ GßÚ?

Part B (5  5 = 25)

Answer all questions, choosing either (a) or (b).

11. (a) Alpa lid; issued 10,000 equity shares of Rs. 10 each
payable on to Rs. 2 per share on application Rs. 5
per share on allotment and Rs. 3 per share on First
and Final call. All money was duly received. Give
necessary journal entries.
BÀ£õ ¼ªöhm ¹. 10 ©v¨¦ÒÍ 10,000 \õuõμn
£[SPøÍ, Âsn¨£zvß ÷£õx ¹. 2 GÚÄ®
JxURmiß÷£õx ¹. 5 GÚÄ® •uÀ ©ØÖ® CÖv
AøǨ¤ß ÷£õx ¹. 3 GÚÄ® ö\¾zx® ÁøP°À
öÁΰh¨£mhx. £[S öÁΰmiØPõÚ AøÚzx
öuõøP²® ö£Ó¨£mhx. ÷uøÁ¯õÚ £vÄPøÍ u¸P.

Or

2 F–5889
 (b) Redeemable preference shares to be redeemed are
Rs. 2,00,000. Premium payable on redemption is
10%. securities premium in balance sheet is
Rs. 10,000. Revenue reserves in balance sheet are
Rs. 1,05,000. Calculate fresh issue at shares at par.
«m¦ ö\´¯ ÷Ási¯ «m¦ •ßÝ›ø© £[SPÒ
¹. 2,00,000 ö\¾zu ÷Ási¯ «m¦ •øÚ©® 10%
C¸¨¦ {ø» SÔ¨¤À EÒÍ ¤øn¯® •øÚ©®
¹. 10,000 Á¸Áõ´ Põ¨¦ ¹. 1,05,000. •P©v¨¤À
£[S öÁαmøh PnUQkP.

12. (a) From the following details calculate profit before

and after Incorporation.
(i) Time ratio 3:4
(ii) Sales ratio 2:3
(iii) Gross profit Rs. 5,00,000
(iv) Expenses:
Rs.
Salary 96,000
Discount 40,000
Rent 15,000
General expenses 12,000
Advertisements 50,000
Directors fees 18,000
RÌUPsh ÂÁμ[Pμ¸¢x {ÖÁÚ®
÷uõØÖ¨£uØS •ß ©ØÖ® ¤ß Põ»[PÎß
C»õ£zøu PshÔP.
(i) Põ» ÂQu® 3:4
(ii) ÂØ£øÚ ÂQu® 2:3
(iii) ö©õzu C»õ£® ¹. 5,00,000

3 F–5889
 (iv) ö\»ÄPÒ :
¹.
\®£Í® 96,000
uÒУi 40,000
ÁõhøP 15,000
ö£õxa ö\»ÄPÒ 12,000
ÂÍ®£μ® 50,000
C¯US|º Pmhn® 18,000

Or
(b) From the following particulars, determine the
maximum remuneration available to a full time
director of a manufacturing company. The profit
and loss a/c showed at a net profit of Rs. 80,00,000
after taking into account the following items.
Rs.
Depreciation
(Including special depreciation of Rs. 8,000) 2,00,000
Provision for income tax 4,00,000
Donation to political parties 1,00,000
Ex-gratia payment to a worker 2,00,000
Capital profits on sale of assets 30,000
¤ßÁ¸® ÂÁμ[Pμ¸¢x J¸ •Ê÷|μi
C¯US|¸US QøhUS® AvP£m\ Fv¯zøu
PnUQkP. RÌPsh CÚ[PøÍ ÷\ºzx {ÖÁÚzvß
{Pμ»õ£® ¹. 80,00,000 GÚ Auß »õ£ |mhU PnUS
Põs¤UQßÓx.
¹.
÷u´©õÚ® (]Ó¨¦ ÷u´©õÚ® ¹. 8,000 EÒ£h) 2,00,000
Á¸©õÚ Á›UPõÚ JxURk 4,00,000
Aμ]¯À Pm]PÐUS ÁÇ[Q¯ |ßöPõøh 1,00,000
£o¯õ͸US ÁÇ[Q¯ P¸ønz öuõøP 2,00,000
ö\õzxUPøÍ ÂØÓvÀ Qøhzu ‰»uÚ »õ£® 30,000

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13. (a) What are forms and contents involved in company’s
balance sheet?
{ÖÁÚzvß C¸¨¦{ø»U SÔ¨¤À £iÁ[PÒ ©ØÖ®
EÒÍhUP[PÒ GßÚ?
Or
(b) Give the specimen of company’s profit and loss
account (as per revised schedule VI).
{ÖÁÚ »õ£ |mhU PnUQß ©õv›ø¯ u¸P
(v¸zu¨£mh AmhÁøn VI Cß £i)

14. (a) ‘A’ Co. Ltd and ‘B’ Co. Ltd. whose businesses are of
similar nature, decided to amalgamate and new
company called ‘C’ Co. Ltd. is formed to take over
their assets and liabilities. The following are their
balance sheets.
Balance Sheets as at 31.12.2003
Liabilities A B Assets A B
Rs. Rs. Rs. Rs.
Share capital : Goodwill 30,000 20,000
7,500 shares of Rs. 10 each 75,000 - Free hold 10,000 -
4,550 shares of Rs. 10 each - 45,500 Premises
Sundry creditors 3,300 2,000 plant 18,300 13,450
and machinery
Reserves 4,200 - Stock 16,000 11,550
P and L a/c 800 4,500 Sundry debtors 7,500 6,000
Cash 1,500 1,000

83,300 52,000 83,300 52,000

Ascertain purchase price.

A P®ö£Û ¼ªöhm ©ØÖ® B P®ö£Û ¼ªöhm
Cμsk® J÷μ ußø©°»õÚ öuõÈø» |hzv
Á¸QßÓÚ. AøÁ Cμsk® Cøn¢x C P®ö£Û
¼ªöhm GßÓ ¦v¯ {Ö©zøu öuõh[SÁx GÚ J¨¦U
öPõÒͨ£mhx ©ØÖ® Ax GÀ»õa ö\õzxUPøͲ®
ö£õÖ¨¦UPøͲ® GkzxU öPõÒÁx GÚÄ®
•iöÁkUP¨£mhx. AÁØÔß C¸¨¦ {ø»U
SÔ¨¦PÒ ¤ßÁ¸©õÖ.
5 F–5889
 31.12.2003&® |õøͯ C¸¨¦{ø»U SÔ¨¦PÒ
ö£õÖ¨¦PÒ A B ö\õzxUPÒ A B
¹. ¹. ¹. ¹.
£[S •uÀ : |Øö£¯º 30,000 20,000
7,500 £[SPÒ ¹. 10 Ãu® 75,000 - ¤øn¯©ØÓ ÁÍõP® 10,000 -
4,550 £[SPÒ ¹. 10 Ãu® - 45,500 ö£õÔ ©ØÖ®
£Ø£» PhÜ¢÷uõºPÒ 3,300 2,000 C¯¢vμ® 18,300 13,450
Põ¨¦PÒ 4,200 - \μUQ¸¨¦ 16,000 11,550
C»õ£ |mh P/S 800 4,500 £Ø£» PhÚõÎPÒ 7,500 6,000
öμõUP® 1,500 1,000
83,300 52,000 83,300 52,000

EØ£zv Âø»ø¯ PnUQkP.

Or
(b) Write short notes on Amalgamation in the nature of
purchase.
öPõÒ•u¼ß ußø©¯i¨£øh°À ÷uõßÓU Ti¯
Cøn¨¦ SÔzx ]Ö SÔ¨¦ ÁøμP.

15. (a) Calculate goodwill on the basis of 3 years purchase

of 4 years average profit.
Year Profit
2008 10,000
2009 16,000
2010 –6,000
(Loss)
2011 12,000
|õßS Bsk Põ» \μõ\› C»õ£zvÀ 3 Bsk
öPõÒ•u¼À |Øö£¯›ß ©v¨ø£ PnUQkP.
Bsk »õ£®
2008 10,000
2009 16,000
2010 –6,000
(|mh®)
2011 12,000

Or

6 F–5889
 (b) Give the specimen of liquidator’s final statement of
account.
Pø»¨£õͺ CÖv AÔUøP°ß ©õv›ø¯ ÁøμP.

Part C (3  10 = 30)
Answer any three questions.

16. Explain the procedures of issue of share capital at Par,

Premium and discount.
•P ©v¨¦, •øÚ©zvÀ ©ØÖ® uÒУi°À £[S
‰»uÚzøu öÁΰkÁuØPõÚ |øh•øÓPøÍ ÂÍUSP.

17. Ganesh Ltd. was incorporated on 1.7.2019 to acquire a

running business of Suresh & Co. with effect from
1.1.2019. The following was the P and L account of the
company on 31.12.2019.
Particulars Rs. Particulars Rs.
To Office expenses 54,000 By Gross profit b/d 2,25,000
To Formation expenses
(written off) 10,000
To Stationary and postage 5,000
To Selling expenses 60,000
To Director’s fees 20,000
To Net profit 76,000
2,25,000 2,25,000

Total sales ratio for prior and subsequent periods to

incorporation given is 1:2. Calculate the profit attained in
both periods from following details.
P÷nè {Ö©® 1.1.2019&À öuõh[P¨£mh A¢{Ö©®
1.7.2019&À _÷μè {Ö©zøu Tmk¸ÁõUP® ö\´¯¨£mhx.
31.12.2019À A¢{Ö©zvß C»õ£ |mh P/S ÂÁμ[PÒ
¤ßÁ¸©õÖ.
ÂÁμ® ¹. ÂÁμ® ¹.
A¾Á»P ö\»ÄPÒ 54,000 ö©õzu C»õ£® 2,25,000
E¸ÁõUP ö\»ÄPÒ
(÷£õUöPÊxP) 10,000
GÊxö£õ¸Ò ©ØÖ® u£õÀ 5,000

7 F–5889
 ÂÁμ® ¹. ÂÁμ® ¹.
ÂØ£øÚ ö\»ÄPÒ 60,000
C¯US|º Pmhn® 20,000
{Pμ »õ£® 76,000
2,25,000 2,25,000
Tmk¸ÁõUPzvØS •¢øu¯ ©ØÖ® ¤¢øu¯ Põ»[PÐUPõÚ
ö©õzu ÂØ£øÚ AÍÄ ÂQu® 1:2 öPõkUP¨£mhx. C¢u
ÂÁμ[PøÍ öPõsk C¸ Põ»[PÎÀ Aøh¢u C»õ£[PøÍ
PnUQk.

18. The share capital of Balu Ltd. consists the following:

(a) 10,000 6% preference shares of Rs. 100 each and
(b) 50,000 equity shares of Rs. 10 each.
The shares were fully paid up. The company had
accumulated losses totalling Rs. 3,50,000 besides
preliminary expenses of Rs. 20,000. It was also
ascertained that the fixed assets when stood in the
books of Rs. 14,00,000 was overvalued to the extent
of Rs. 4,00,000.
A scheme of capital reduction was approved as
follows:
(i) 6% preference shares were to be converted into
7% preference shares of Rs. 60 each.
(ii) Equity shares were to be reduced to Rs. 2
each, Journalise for the above transaction.
£õ¾ {Ö©zvß £[SPÒ ¤ßÁ¸©õÖ Ah[Q²ÒÍx :
(A) 10,000 6% •ßÝ›ø©¨ £[SPÒ JÆöÁõßÖ® ¹. 100
©ØÖ®
(B) 50,000 ÷|ºø© £[SPPÒ JÆöÁõßÖ® ¹. 10 £[SPÒ
•ÊÁx® ö\¾zu¨£mhÚ. S¢u |mh®
¹. 3,50,000&•®, öuõhUPa ö\»ÄPÒ ¹. 20,000&•®
A¢u {Ö©® ö£ØÔ¸¢ux. A¢u {Ö©zvß {ø»a
ö\õzxUPÒ ¹. 14,00,000&©õP PnUQh¨£mhvÀ
¹. 4,00,000 Áøμ AvP©õP ©v¨¤h¨£mi¸¢ux.

8 F–5889
 •uÀ SøÓ¨¦ vmh® ¤ßÁ¸©õÖ J¨¦U
öPõÒͨ£mhx.
(i) 6% •ßÝ›ø©¨ £[SPÒ 7% JÆöÁõßÖ® ¹. 60
©v¨¦ÒÍ •ßÝ›ø© £[SPÍõP ©õØÓ®
ö\´¯¨£mhÚ.
(ii) ÷|ºø© £[SPÎß ©v¨¦ JÆöÁõßÖ® ¹. 2&US
SøÓUP¨£mhx. SÔ¨÷£mk¨ £vÄPøÍ u¸P.

19. From the following, prepare trading, profit and loss a/c
for the year ended 31-Dec-2003 and the balance sheet as
at that date.
Debit balance Rs. Credit balance Rs.
Opening stock 50,000 Sales 3,25,000
Purchases 2,00,000 Discount received 3,150
Wages 70,000 P and L a/c 6,220
Discount allowed 4,200 Creditors 35,200
Insurance (up to 31.3.04) 6,720 Reserves 25,000
Salaries 18,500 Loan form M.D 15,700
Rent 6,000 Share capital 2,50,000
General expenses 8,950
Printing 2,400
Advertisements 3,800
Bonus 10,500
Debtors 38,700
Plant 1,80,500
Furniture 17,100
Bank 34,700
Bad debts 3,200
Calls in arrears 5,000
6,60,270 6,60,270

9 F–5889
 (a) The authorized capital of the company is
Rs. 5,00,000
(b) Closing stock was Rs. 1,91,500
(c) Depreciation on plant at 15% and on furniture at
10% should be provided.
(d) A tax provision of Rs. 8,000 is to be provided.
(e) The directors declared an interim dividend on
15.8.03 for 6 months ending June 30,2003 @6%.
¤ßÁ¸® ÂÁμ[PøÍU öPõsk ¯õ£õμ C»õ£ |mhU
PnUS ©ØÖ® 31 i\®£º 2003&® Bs÷hõk •iÄÖ®
C¸¨¦{ø»U SÔ¨ø£²® u¯õº ö\´P.
£ØÔ¸¨¦ ¹. Áμ¸¨¦ ¹.
B쮣 C¸¨¦ 50,000 ÂØ£øÚ 3,25,000
öPõÒ•uÀ 2,00,000 ö£ØÓ Ámh® 3,150
T¼ 70,000 C»õ£ |mhU P/S 6,220
AÎzu Ámh® 4,200 PhÜ¢÷uõº 35,200
Põ¨¥k (31.3.04) 6,720 Põ¨¦ 25,000
\®£Í® 18,500 ÷©»õsø© C¯US|›h® ö£ØÓ Phß 15,700
ÁõhøP 6,000 £[S •uÀ 2,50,000
ö£õx ö\»ÄPÒ 8,950
Aa_ 2,400
ÂÍ®£μ® 3,800
FUP Fv¯® 10,500
PhÚõÎ 38,700
ö£õÔ 1,80,500
AøÓP»ß 17,100
Á[Q 34,700
ÁõμõUPhß 3,200
AøǨ¦ {¾øÁ 5,000
6,60,270 6,60,270

10 F–5889
 (A) {ÖÁÚzvß A[RP›UP¨£mh •uÀ ¹. 5,00,000
(B) CÖva \μUQ¹¨¦ ¹.1,91,500
(C) ÷u´©õÚ® ö£õÔ «x 15% ©ØÖ® AøÓP»ß «x 10%
JxUSP.
(D) Á›UPõP JxUSP ¹. 8,000
(E) C¯US|μøÁ öu›Âzu CøhUPõ» £[Põuõ¯® : 6%
Ph¢u 15.8.03 BÖ ©õu[PÒ áúß 30, 2003 Áøμ.

20. From the data relating to a Company (in voluntary

liquidation), you are asked to prepare liquidator’s final
statement of account.
(a) Cash with liquidator (after all assets are realised
and secured creditors and debenture holders are
paid) is Rs. 6,73,800.
(b) Preferential Creditors to be paid Rs. 30,000
(c) Other unsecured creditors Rs. 2,15,000.
(d) 4,000 6% preference shares of Rs. 100 each fully
paid.
(e) 2,000 equity shares of Rs. 100 each, Rs. 75 per share
paid up.
(f) 6,000 equity shares of Rs. 100 each, Rs. 60 per share
paid up.
(g) Liquidator’s remuneration 2% on preferential and
other unsecured creditors.
(h) Preference dividends were in arrears for 2 years.
uõ©õP÷Á Pø»¨¦USÒÍõÚ J¸ {Ö©zvß Â£μ[PÒ
u쨣mkÒÍÚ. AÁØÔ¼¸¢x Pø»¨£õÍ›ß CÖvU
PnUPÔUøPø¯z u¯õº ö\´P.
(A) Pø»¨£õÍ›h® EÒÍ öμõUP® ¹. 6,73,800 (GÀ»õa
ö\õzxUPЮ }UP¨£mk ©ØÖ® ¤øn¯U
PhÜ¢÷uõ¸US® PhÜmk¨ £zvμuõμºPÐUS®
ö\¾zv¯x ÷£õP ¤ßÚº EÒÍ öuõøP)

11 F–5889
(B) •ßÝ›ø©U PhÜ¢÷uõºPÒ ö\¾zu¨£mh ÷Ási¯x
¹. 30,000
(C) ¤Ó ¤øn¯©ØÓ PhÜ¢÷uõºPÒ ¹. 2,15,000
(D) 4,000 6% •ßÝ›ø©¨ £[SPÒ ¹. 100 Ãu® •ÊÁx®
ö\¾zu¨£mhx.
(E) 2,000 ÷|ºø©¨ £[SPÒ ¹. 100 Ãu® ©v¨¦øh¯x
¹. 75 Ãu® ö\¾zu¨£mhx.
(F) 6,000 ÷|ºø©¨ £[SPÒ ¹. 100 Ãu® ©v¨¦øh¯x
¹. 60 Ãu® ö\¾zu¨£mhx.
(G) Pø»¨£õͺ Fv¯® •ßÝ›ø© ©ØÖ® ¤Ó
¤øn¯©ØÓ PhÜ¢÷uõºPÒ «x 2% BS®.
(H) •ßÝ›ø©¨ £[Põuõ¯® Cμsk Á¸h[PÐUS
{¾øÁ¯õP EÒÍx.

————————

12 F–5889