NP -338

IV Semester B.Com. Examination, July/August 2024

(NEP Scheme)
COMMERCE
Paper - 4.1 : Advanced Corporate
Accounting
Time: 22 Hours
Max. Marks :60
Instruction: 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 liquidator ?
g) State any two differences between Amalgamation and Acquisition.
h) State any two objectives of internal 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 R100
each fully paid. These shares were due for redemption on 31 March 2023 at a
premium of 10%. To carry out redemption, the company issued 2,500 equity
shares of 100each 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
Account. Pass Journal entries.
3. Pooja Sharma Company agreed to purchase Anand Co. Ltd. and the Co. had
agreed to issue 16,000equity shares of ? 10 each at a premium of 10%.
1,000 8% preference shares of 100 each at apremium of 10%, 20,000 in
cash.
Calculate Purchase Consideration.
unsecured
4. Calculate liquidator remuneration and also state the amount paid to
creditors from the following:
i) Balance of cash after paying preferential creditors 4,10,000.
ii) Other unsecured creditors 4,78,000.
other unsecured
I) Liquidator remuneration is 3% on the amount paid to
creditors.
P.T.0.
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NP - 338 under
reconstruction. The scheme is as
resorted to internal paid to be converted
into
10,000
5. Rahul Limited shares of 10 each fully
a) 20,000 equity
shares of R5 each fully paid. fully paid to be convertedinto
equity preference shares of 100 each
b) 1,000, 12% of 5 each,fully paid.discharged by issue of 20 008
10.000 equity shares
debentures of 1,000each to be
c) 150, 15%
fully paid.
equity shares of 5each tobe appropriated as:
available and machinen
d) The amount so 1,00,000;Goodwill R1,00,000 ; Plant
P&L debit balance
725,000.
entries.
Pass necessary Journal accounting.
based
6. Write a note on Cloud SECTION -C

Answer any three questions. Each question carries twelve marks. (3x12=36
of XYZ Ltd. Co.
7. Followingis the Balance Sheet Assets
Liabilities
Goodwill 40,000
40,000equity 82,000
shares of 10each 4,00,000 Buildings
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 5each fully paid.
b) The companyto issue 26,000 equity shares of 5 each fully paid and pay
off bank Overdraft.
c) Sundry creditors agreed to forego 20% of claims as the company decided
topay themcash immediately.
d) Reconstructionexpenses amounted to 4,000.
e) The director found that the machinery is over valued by ? 20,000.
They alsodecided to write off intangible assets and P &LA/c completely.
Pass Journal entries and prepare reconstructed Balance Sheet.
8. Following is the Balance Sheet of Manoj Company and Bharath Company as
on 31/3/22.
Liabilities Manoj Bharath Assets Manoj Bharath

Equity share Land and building 2,00,000 3,00,000

cap. (30,000 Plant and
shares) 3,00,000 3,00,000 machinery 3,00,000 2,50,000
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NP 338
Reserves and
Stock 1,50,000 1,50,000
surplus 1,00,000 2,00,000 Debtors
12% deb. 2,00,000 2,00,000 Cash 50,000 1,00,000
Creditors 1,20,000 1,20,000 20,000 20,000
7,20,000 8,20,000
Above companies decided to amalgamate their business7,20,000 8,20,000
and started a new
company named 'Maba' Company. The assets of both companies are -Fixed
assets 25% more, stock 15% less and debtors 10% less.
The purchase consideration is discharged by the issue to both companies
sufficient number of equity shares of 10each in Maba' Ltd. at an agreed value
of 12.50per share. Prepare necessary ledger accounts in Manoj Company
and Bharath Company.
g Balance Sheet of Rahul Company as on 31-3-2020 as under. Prepare Liquidator
) final statement of accounts.
Liabilities Amount Assets Amount

50,000 Equity shares

5,00,000 Plantand machinery 4,00,000
of 10 each 1,000
2,000, 6% cumulative Furniture
Investment 50,000
preference shares of 50,000
7 100 each 2,00,000 Stock
1,00,000 Debtors 2,00,000
7% debenture 1,200
Cash
Sundry creditors 4,47,800
Trade
3,00,000 Profit and Loss Alc
48,000
Cash 2,000
Outstanding 11,50,000
11,50,000
arrear for one year. Debenture interest is also due for
Preference dividend are in
are preferential. The assets realised: Plant
creditors
one year. All outstanding Furniture 400; Debtors 1,50,000; The stock and
and machinery 2,80,000; The expenses of liquidation amounted to 200.
investments realised nothing. on asset realised and 2% on amount paid
remuneration is 4%
The liqidator
to unsecured creditors.
PKN Ltd. as on 31-3-23 is as followWS : Rupees
10. Balance Sheet of Assets
Rupees Land and building 50,000
Liabilities 1,30,000
9,500 preference 9,50,000 Machinery 10,000
share of 100 each 50,000 Furniture 1,85,000
Creditors 50,000 Stock 90,000
Debenture Debtors 1,00,000
Goodwill 4,85,000
P&L A/c 10,50,000
10,50,000
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NP - 338
reconstructed as shares of
The company is to
be
reduced to an equalno. of fully paid
tobe
i) Shares of 100
40 each. 40 each, as fully paid up to the debenture
shares (new) of
ii) To issue 1,000settlement. loss
holders in full
in writingoff goodwilland profit and
is utilised
i) The amount available
balance in writing down value of machinery.
account and the Account and New Balance Sheet.
Reduction
Prepare Capital
the Balance Sheet of XY Co. Ltd.as on 31-3-23. Amount
11. The followingis Amount Assets
Liabilities
Fixed assets 8,00,000
20,0008% preference 2,00,000
redeemable share of Investment
2,00,000 Stock
80,000
10 each 1.20.000
40,000 7% redeemable Debtors
4,00,000
preference share of 10, Bank
5 per share fully paid 2,00,000
40,000 equity share of
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 iability 2,00,000
16,00,000 16,00,000
premium of 10%
On1-4-23, the company redeemed both preference shares at a issued 50,000
inorder to pay off the preference shareholders. The company
equity shares of 10each at 5% premium.
Pass Journal entries and prepare reconstructed Balance Sheet.

(6x2=1
a) woBs ie2dD DQ JOdUeR ?

c) Josiotwotß o¡od ?

h) soo o d o 2 enesrto 393.