1111 2

1. (a) Write notes on any two:

() Sources for issue of fully paid bonus share.

(1) Sources and conditions of buy back of the shares.

(iii) Sources for payment of dividend (3+3)

(b) XYZLtd. Invited applications for issuing 50,000 equity shares of ?10 each
payable as under:

On Application 3 per share

On Allotment 4 per share

On First & Final Call 73 per share

allotment was
Applications were revived for 75,000 shares and prorata
made as under:

shares
i)) Applicants for 40,000 shares were allotted 30,000

(ii) Application for 35,000shares were allotted 20,000 shares

Raghav to whom 1200 shares were allotted out of the group (a) failed to
allotment
pay the allotment money. His shares were forfeited immediately after
Shyam who applied for 700 shares belong to group (b). He failed to pay the
first & final call amount. His shares were also forfeited.

Out of forfeited shares 1000 shares were reissued @ R8 per share fully paid
up including all the shares of Shyam. Pass the necessary journal entries.
Please showthe working notes clearly.

OR
1111 3

(a) Calculate minimum fresh issue of equity shares required for redemption of
preferences share on the basis of the following information:
() 20,000 preference share of 10 cach are to be redeemed at 10%
premium
(i) Balance is surplus account 80,000

(ii) Balance in securities premium reserve account 10,000

(iv) Fresh issue of equity shares of{10each is to be made at 10% premium

What will be your answer if the redemption of preferences shares is

to be made at 20% premium. (4+2)

lst April,
(b) Seema Ltd. issued 10,000, 12% debentures of 100 each on
2021. Interest is payable on 30th September and 31st March every year.
at
On Ist July, 2022, the company purchased 1,000 of its own debentures
797 ex-interest as investments. On lst January, 2023, the company purchased
cum-interest as investment.
another 2.000 of its own debentures at 98
cancelled all its own debentures.
On 31st March, 2023, the company
April to 31st March) as an
The company follows financial year (that is 1st
accounting year.
Ltd. for the
Journalise the above transactions in the books. of Seema
compliances
year 202 1-22 and 2022-23. It is assumed that all the
regarding creation of DRR and DRI have been completed before making
redemption. (12)

2. (a) Explain the conditions for amalgamation in the nature of merger as per
AS-14. How the amalgamation in the nature of merger is different from
amalgamation in the nature of purchase? (6)

P.T.O.
1111
below:
(b) The Balance shect of BRC Ltd. as at 31" March 2023 appears as

Particulars

I. EQUITYAND LIABILITIES:
1. Shareholders' Funds:
1,50,000Equity Shares of 10each fully paid 15,00,000
5,000, 11% Preference Shares of 100each fully paid 5,00,000
Surplus i.e. balance in Statement of Profit & Loss
(Negative balance) (10,40,000)

2. Non-Current Liabilities:

11% Debentures 5,00,000

Interest accrued and due on debentures 1,10,000

5,00,000
Unsecured Loans
1,50,000
Interest accrued and due on unsecured loans

3. Current Liabilities:

Bank Overdraft 6,30,000

Other Current Liabilities 5,00,000
TOTAL 33,50,000

II. ASSETS:

1. Non-Current:
Fixed Assets at Cost 20,00,000

Less: Depreciation Provision

(9,00,000) 11,00,000

Current Assets:

Stock and Stores 6,00,000

Receivables 14,50,000

Other Current Assets 2,00,000

TOTAL 33,50,000
 5
1111
and
reconstruction has bcen agrecd amongst the shareholders
A scheme of features:
the creditors, with the followingsalient
loans is waived.
() Interestdue on unsecured
debentures is waived.
(ii) S0% of the interest due on
rights are to be reduced to 50%
(iii) The 11% Preference Shareholders' each.
and converted into 15% Debentures of ?100

reduced by 750,000.
(iv) Other Current Liabilities would be
1,00,000
The equity shareholders agreeing to bring in an amount of
(
of 4 each
by way of new equity share
reduce the existing equity shares into
(vi) The equity shareholders agree to
1,50,000 equity shares of 4 each.
of Profit & Loss is to be wiped
(vii) The negative balance inthe Statement
and increase the value of
out. Provide 2,60,000 for doubtful debts
fixed assets by 4,00,000.
(12)
Pass Journal Entries & Prepare Reconstruction A/c.

OR

of
methods used to give shape to the scheme
(a) Write a note on any three (6)
internal reconstruction.

(b) The Balance sheet ofA Ltd is as follows :

Equity & Liabilities

2500equity shares of 100 each : 72,50,000

Surplus Account: <(80,000)

Sundry creditors : 1,25,000

Total : 72,95,000

P.T.O.
 6
1111
Assets
1,30,000
Land and building :
75,000
Plant and Machinery :
Z60,000
Stock:
(20,000
Debtors:
Z10,000
Cash:
2,95,000
Total :

form B Ltd under a scheme of external reconstructinn

ALtdis liquidated to
10,00,000. The business of A Itd is
The authorised capital of B Ltd is
terms :
taken over on the following

60 paid up to equity
(i) Issue of 2500 equity shares of *100 each at
shares holders of A Ltd.

(ii) Payment of 25000 in cash to equity shares holders.

5 Shareholders holding 200 equity share dissented to the scheme and

their interest was purchased at 50 per shares.

(üi) All assets of ALtd are taken over except cash.

Calculate the purchase consideration. Pass the necessary journal entries in

the books of A Ltdand prepare Realisation account and Equity shareholders
Account. (12)

3 The following are the balance of P.K. Limited as at 31 March, 2022 :

1111 7

Items (Dr.) Items (Cr.)

Equity share capital 5,00,000
Opening stock 1,50,000
Purchase returns
10,000
Purchases 3,80,000
11,50,000
Wages 60,000 Sales
6,300
2,000 Discount
Carriage
25,000 1,70,000
Funiture Surplus Account
12,000 Sundry creditors 33,700
Salaries
15,000 General reserve 82,000
Rent
Provision for doubtful debts 3,000
11,000
Trade expenses
13,000
54,000 Bills Payable
Sundry debtors
Plant and Machinery 12,00,000

Cash at bank 21,500

Patents 9,000
Bills receivable 14,000

Bad debts 6,500

Discount allowed 8,000

Total
19,68,000
Total
19,68,000

Additional information :

2,00,000.
(i) Stock on 31 March,
patents at
Depreciate plant and machinery at 12% furniture at 10% and
(i)
20%.
bad
bad debts amounted to 4,000. Provide 5% on debtors for
(iüi) Further
debts.

(iv) Provide for income tax @ 35%.

P.T.O.
1111
recommended a dividend of 25%,
(v) The Board of directors
the Profits,
(vi) Transfer to General Reserve 10% of
year ended 31 March 2022 and
Prepare statement of Profit and Loss for the (18)
balance sheet as on that date.

OR

(a) Write note on the following :

(i) Three advantages of cash flow statement.
and IND AS 7. (3+3)
(ii) Three differences between AS 3 (Revised)

of Telco Ltd. as at 3 1st March,

(b) Following are the summarized Balance Sheet
2021 and 2020:

Note
31.03.202 1 31-03-2020
Particulars
No.

I. EQUITY AND LIABILITIES

1. Shareholders' Funds

(a) Share Capital 13,50,000 13,50,000

(b) Reserve and Surplus:

i) General Reserve 9,30,000 9,00,000

() Surplus Account 2.04,000 1,68,000

2. Non-current Liabilities
(a) Long-term Borrowings:
() 10% Mortgage Loan 8,10,000
3. Current Liabilities

(a) Trade Payables (Creditors) 4,02,000 5,04,000

 L2Lo
1111

(b) Short-term Provisions:

30,000 2,25,000
) Current Tax

37,26,000 31,47,000
Total

II. ASSETS
1. Non-current ASsets
9,60,000 12,00,000
(a) Property, Plant & Equipment
1,80,000 1,50,000
(b) Non-current Investments
2. Curent Assets
21,000 17,000
(a) Current Investments
6,30,000 7,20,000
(b) Inventories
13,65,000 4,30,000
(c) Trade Receivables (Debtors)
5,70,000 6,30,000
(d) Cash and Cash Equivalents
Total 37,26,000 31,47,000

Additional Information :

during the year for 25,500.

(i) Investments costing 24,000 were sold
(27,000.
(ii) Provision for Tax made during the year was
costing 30,000 was
Equipment
(i) During the year, a part of Property, Plant &
statement of Profit and
sold for 36,000. The pro fit was included in the
Loss.

(iv) The Interim Dividend paid during the year amounted to 1,20,000.

You are required to prepare Cash Flow Statement as per AS 3 (Revised).

(12)

4. (a) Briefly explain any three methods of valuation of shares. (6)

P.T.O.
1111
Ltd. As on 31
summarized balance sheet of Krishna
(b) The following is the
December 2022
Note No,
Particulars
LIABILITIES
1. EQUITY AND
1. Sharcholders' Funds
5,00,000
of 10 each)
(a) Share Capital (50,000 Equity Shares
(b) Reserve and Surplus: 2,39,400
) General Reserve 1,00,000
() Securities Premium Reserve 1,57,600
(i) Surplus Account (Balance)
2. Non -Current Liabilities
3. Current Liabilities
4,09,400
(a) Trade Payables (Sundry Creditors) 1,97,000
(Provísíon for Tax)
(b) Short-term Provisions
16,03,400
Total

II. ASSETS
1. Non-current Assets:

(a) Fixed Assets (Tangible)

2,40,000
(i) Plant & Machinery
1,00,000
(i) Fumiture
2. Current Assets:
6,20,000
(a) Inventories (Stock)
(b) Trade Receivables (Debtors) 2,06,000

(c) Cash and Cash Equivalents:

i) Cash in hand 3,400

(i) Cash at Bank 4,34,000

Total 16,03,400
 11
1111 Reserve. The
20% of its profits (after tax) to General
The company transfers
:
tax for the last 3 years have been as follows
Net Profits before

Year Ended

31-12-2020
2,75,000

3,94,000
31-12-202 1

31-12-2022 Du 3,66,000

Average Dividend in this type of business

Machinery is valued at 3,20,000.
share on
The rate of Tax is 50%. Calculate the value of one equity
is 20%.
the basis of :

(i) Intrinsic value

(i) Yield basis

(12)
() Fair Value

OR

following:
(a) Explain any two of the

(i) Economic value added

(i) Market value added

(3+3)
(ii) Shareholder value added

PT.O.
 12
1111
business carried on
The following particulars are available in respect of the
(b)
by a company :

i) Profits earned for the years:

2019-20 2,00,000

2020-21 2,40,000

2021-22 2,20,000

10%
(iü) Normal rate of return

12,00,000
(üi) Capital employed
10% =3.78.
Present value of an annuity of one rupee for 5 years at
(iv)

on an average basis of 3000

(v) The profits included non-recurring profits

:
You are required to calculate the value of goodwill

(1) As per 5 years' purchase of super profits.

(2) As per Annuity Method.

(3) As per capitalization Methods (12)

5. (a) From the following information calculate Debt equity ratio, stock turnover
ratio and inventory holding period:
1111 13

Particulars

Preference share capital 1,50,000

Equity share capital 5,50,000

Capital reserve 2,00,000

Surplus account 1,00,000

Debentures 2,70,000

40,000
Average inventory
2,50,000
Sales

20%
Profit on sales

Take 360 days in a year

(6)

reporting? What are the main

(b) What is the meaning of corporate financial
corporate financial reporting? (12)
objectives and types of

OR

Write notes on any three :

) Sustainability reporting.
(ü) Triple bottom line reporting.
(iii) CSR reporting.
(iv) Segment reporting.
(6+6+6)
(v) Calculation of EPS as per AS 20.

P.I.0.