Description
B.Com IV Semester (CBCS) – July 2021
Corporate Accounting (CC)
(Code : 52414403)
M.M. : 100
Attempt any two questions in all.
All questions carry equal marks.
(Write your Name and Roll No. on each page of your answer sheet.)
Question 1. (a) BG Ltd. invited applications for 1,00,000 equity shares of ₹10 each at a premium of ₹ 2 per share payable as follows : on application ₹2.50 ,on allotment 4.50 (including premium),on first call ₹2.50 and on final call ₹ 2.50 per share.
Applications were received for 1,50,000 shares and shares were allotted pro-rata to the applicants for 1,20,000 shares and remaining were rejected. Excess money paid on application was adjusted against sums due on allotment.
A, who was allotted 200 shares ,could not pay the sums due on allotment .Shares held by him were forfeited on his failure to apy the first call ,B, holding 300 shares ,could not pay the two calls. The company forfeited his shares after the final call was made .Pass entries in the journal of BG Ltd.
Question 1. (b) What is minimum subscription? How is it different from oversubscription and under subscription? Explain and illustrate.
Question 2. A Ltd acquired the business of B Ltd on 31 March 2012 for a purchase consideration of Rs.2,50,00,000 to be paid by fully paid equity shares of Rs.10 each. The balance sheets of two companies on the date of acquisition were as follows:
| A Ltd | B Ltd | A Ltd | B Ltd | ||
| Equity Shares of Rs. 10 each fully paid | 2,50,00,000 | 1,50,00,000 | Land & Building | 1,20,00,000 | 80,00,000 |
| General Reserves | 1,20,00,000 | 18,00,000 | Plant & Machinery | 2,00,00,000 | 1,80,00,000 |
| Development Rebate Reserve | 10,00,000 | 37,00,000 | Furniture | 1,00,0000 | 2,00,0000 |
| P&L A/c | 10,00,000 | 53,00,000 | Stock | 55,00,000 | 4,00,0000 |
| Workmen Compensation Fund | 15,00,000 | 24,00,000 | Sundry Debtors | 45,00,000 | 4,00,0000 |
| Current Liabilities | 45,00,000 | 95,00,000 | Bank | 2,00,0000 | 17,00,000 |
| 4,50,00,000 | 3,77,00,000 | 4,50,00,000 | 3,77,00,000 |
Pass the necessary journal entries in the books of A Ltd when amalgamation is in the nature of merger. Also prepare the Balance sheet of A Ltd after amalgamation assuming that Development Rebate Reserve and Workmen Compensation Fund of B Ltd are required to be continued in the books of A Ltd.
Question 3. The following are the Balance Sheets of H Ltd. and its subsidiary S Ltd. as on 31st December 2004.
| Liabilities | H Ltd | S Ltd | Assets | H Ltd | S Ltd |
| Share Capital of Rs. 1 per share | 10,000 | 8,000 | Building | 4,000 | – |
| Reserves | 4,000 | 3,000 | Plant | 1,000 | 6,000 |
| Bills Payable | 2,000 | 1,000 | Stock | 4,000 | 6,000 |
| Creditors | 5,000 | 4,000 | Shares in S Ltd. | 6,000 | – |
| Profit & Loss A/c | 4,000 | 2,000 | Debtors | 5,000 | 3,000 |
| Bills Receivable | 3,000 | 2,000 | |||
| Cash | 2,000 | 1,000 | |||
| 25,000 | 18,000 | 25,000 | 18,000 |
Debtors of H Ltd. include Rs 2,000 due from S Ltd. and Bills payable of H Ltd. included a bill of Rs 500 accepted in favour of S Ltd. A Load of Rs 1,000 given by H Ltd. to S Ltd. was also included in the items of debtors and creditors respectively. Rs 500 was transferred by S Ltd. from Profit and Loss Account to Reserve out of current year’s profit. Shares were purchased on 30th June 2004 at par.
Prepare consolidated Balance Sheet.
Question 4. The summarized balance sheet of Bhadresh Ltd. as on 31.12.05 and 31.12.2006 are as follows:
| Liabilities | 2005 | 2006 | Assets | 2005 | 2006 |
| Share Capital | 4,50,000 | 4,50,000 | Fixed Asset | 4,00,000 | 3,20,000 |
| General Reserve | 3,00,000 | 3,10,000 | Investment | 50,000 | 60,000 |
| P&L A/c | 56,000 | 68,000 | Stock | 2,40,000 | 2,10,000 |
| Creditors | 1,68,000 | 1,34,000 | Debtors | 2,10,000 | 4,55,000 |
| Tax Provision | 75,000 | 10,000 | Bank | 1,49,000 | 1,97,000 |
| Mortgage Loan | – | 2,70,000 | |||
| 10,49,000 | 12,42,000 | 10,49,000 | 12,42,000 |
Additional Details:
- Investment costing Rs. 8,000 were sold for Rs. 8,500
- Tax provision made during the year was Rs. 9,000
- During the year part of fixed assets costing Rs 10,000 was sold for Rs 12,000 and the profit was included in P & L A/c.
You are required to prepare cash flow statement for 2006.
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