P/ID 28501/PCMA

OCTOBER 2012

Time : Three hours

Maximum : 100 marks

PART A (10 2 = 20 marks)

Answer ALL questions, each in 50 words.

All questions carry equal marks.
1.

Define stock.

[SU P UPn uP.

2.

What is net asset?

{P \zxP G G?
3.

Define liquidation.

P UPn uP.
4.

What do you mean by external reconstruction?

A G G?
5.

Who are all preferential creditors?

PhP G ?
6.

Write any two objectives of financial reporting.

{v AUP Csk SUPP GxP.

7.

What is human resource accounting?

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8.

What is meant by amalgamation?

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9.

Define holding company.

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10.

What is social responsibility of business?

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PART B (5 6 = 30 marks)
Answer ALL questions.
11.

(a)

All questions carry equal marks.

What are the sources of finance for redemption of
debentures?

Ph zv[P mP u {v Bu[P .
(b)

Or
Madurai Ltd issued 1,00,000 equity shares of Rs. 10 ach,
which is as follows
On application Rs. 4
On allotment Rs. 3
On 1st call Rs. 2
On 2nd call Rs. 1
All the share money has been fully received. Pass Journal
entries.

x hm 1,00,000 \[SP . 10 u RPq

kQx,
sn . 4
JxURk

. 3

u A

. 2

Csh A . 1
Azx [SP n HPmhx. Smi v
uP.
12.

(a)

The following are the summarised balance sheet of M Ltd

and N Ltd.
Liabilities
Share capital

M Ltd Rs. N Ltd Rs.

40,000

20,000

Assets
Sundry assets

M Ltd Rs. N Ltd Rs.

42,000

33,000

Profit and loss a/c

5,000

Creditors

15,000

6,000

Loan N Ltd

8,000

Loan H Ltd

10,000

P and L a/c

1,000

Loan M Ltd

8,000

70,000

34,000

70,000

34,000

Shares in N Ltd 20,000

The whole shares of N Ltd are held by M Ltd. A new

company MN Ltd is formed to acquire the sundry assets
and creditors of M Ltd and N Ltd and for this purpose, the
sundry assets of M Ltd are revalued at Rs. 30,000 and
those of N Ltd at Rs. 20,000. The amount of the loan due to
H Ltd is also to be discharged in the shares of new
company : the debt due to M Ltd is also to be similarly
discharged. Show journal entries in the books of M Ltd.
P/ID 28501/PCMA
2

M hm N hm C {U S
P

M hm
.

N hm
.

40,000

20,000

|mh P/S

5,000

Phu

15,000

6,000

Ph H hm

10,000

8,000

70,000

34,000

Ph M
hm

\zxP

M hm
.

N hm
.

\zxP

42,000

33,000

N hmi
[SP

20,000

Ph N hm

8,000

1,000

70,000

34,000

|mh P/S

N hmi Azx [SP M hm GkzxU

PQx. MN
hm G v P
EUPmk M hm N hmi

\zxP, Ph Du GkzxU PQx, G

hmi \zxP . 30,000 US, N
hmi \zxP . 20,000 US vk
\kQx, H hm Ph, M hmi Ph
{ v { ui \Qx.
M

Smk vP M hm zuPzv uP.

Or
(b)

What is Reconstruction? Explain different types of

reconstruction in brief.

A G G?
AP _UPP .
13.

(a)

A Ltd has 10,000 shares of Rs. 100 each. Out of this B Ltd
purchased 60% shares at Rs. 19,50,000. The profits of
A Ltd at the time of acquisition was Rs. 15,00,000. A Ltd
decided to issue a bonus shares of Rs. 100 each for every 5
shares held. Calculate the goodwill before issue of bonus
shares.
A hm 10,000 [SP . 100 u mhx. Cv
B hm 60% [SP . 19,50,000 US [Qx. A

hmi Pkzx A . 15,00,000.

A hm [SP .100 u J Ix
[SPUS h i \ux. [SP
kuS {zv | PnUQkP.
Or
(b)

Explain the need for valuation of shares in brief.

[SP vk \uP u _UPP

.
3

P/ID 28501/PCMA

14.

(a)

H Ltd acquires all the shares of S Ltd on 1.1.2002. From

the balance sheet given below prepare consolidated balance
sheet.
Balance sheet as on 31.3.2002 is as follows :

Liabilities

H Ltd
Rs.

Assets

S Ltd
Rs.

Share capital

H Ltd
Rs.

S Ltd
Rs.

Land and building

4,00,000

2,70,000

2,00,000

1,00,000

50,000

20,000

Shares of 10
each

8,00,000

3,00,000

Plant and machinery

creditors

3,50,000

1,60,000

Furniture and fixtures

40,000

20,000

Investment in shares of
S Ltd

5,00,000

2,10,000

40,000

Stock

1,50,000

80,000

50,000

30,000

Sundry debtors

1,00,000

60,000

50,000

20,000

14,50,000

5,50,000

Bills payable
Returns on
1.4.2001
Profit and loss
a/c

Bank balance
14,50,000

5,50,000

The profit and loss account of S Ltd had a credit balance of

Rs. 6,000 on 1.4.2001.
H hm, S hmi G [SP 1.1.2002 A

GkzxU PQx. RPq C {U SPx

J[Qnu C {U S u \.
P

H hm
.

\zxP

S hm
.

[S u

H hm
.

S hm
.

{ Pmhh

4,00,000

2,70,000

2,00,000

1,00,000

50,000

20,000

[SP . 10
u

8,00,000

3,00,000

Cv

Phu

3,50,000

1,60,000

z xn
zvx

40,000

20,000

ukP S hm

5,00,000

2,10,000

40,000

\UQ

1,50,000

80,000

50,000

30,000

PhP

1,00,000

60,000

50,000

20,000

14,50,000

5,50,000

uS
a^mk
JxUS 1.1.2001
|mh P/S

[Q C
14,50,000

5,50,000

1.4.2001 A S hmi |mh PnUQ . 6000 Ex.

Or
(b)

Explain the need for social responsibility accounting.

\u PnUQ uP ?
4

P/ID 28501/PCMA

15.

(a)

Zee Ltd purchased an offset printing machine from USA at

a cost of Rs. 2,00,00,000 at an exchange rate of Rs. 45 per
US dollar on 1.1.2005. However, on 31.12.2005, the
exchange rate was Rs. 47 per dollar and the full amount for
the purchase was settled on that date. How do you deal
with the loss due to change in foreign exchange rate as per
AS-11?

hm AUPx Aa_ Gvzu

. 2,00,00,000 US AUP h JUS . 45 u
Pkzx 1.1.2005 A [Qx, B A{ \o
31.12.2005 A hUS . 47 G
uP PkUPmhx. A{ \o AS11
i G i |mhzu PnUQk?
Zee

Or
(b)

Explain the scope of accounting standards in brief.

PnUQ uzv uS _UPP .

PART C (5 10 = 50 marks)
Answer ALL questions.
All questions carry equal marks.
16.

(a)

On 1st April 1998, a company issued 1,000, 6% debentures

of Rs. 1000 each at Rs. 950. Terms of issue provided that
beginning with 31st March, 2001 Rs. 50,000 of Debentures
should be redeemed either by drawing at par or by
purchase in the market every year. The expenses of the
issue amounted to Rs. 3,000 which were written off on 31st
March, 1999. The company wrote off Rs. 10,000 from the
discount on debentures every year. On 31st March, 2001
the debentures to be redeemed were repaid at the end of
the year by drawings. On 31st March, 2002 the company
purchased for cancellation 50 debentures at the ruling
price of Rs. 980, the expenses being Rs. 100. Interest is
payable yearly. Ignore income tax.
Give journal entries and the Balance sheet (as far as it
relates to debentures on 31st March 2002)

J { 1.4.1998 A 1000, 6% Ph Dmk zv[P

. 1000, 950 US mhx 31.3.2001 Bsk 50,000
v Ph Dmk zv[P m Au zuP
(A) Au \u Pu \ux. zv[P
h B \ , 3000, 31.3.1999 A ui
\mhx. Phmk zv[P ui 10,000
J h \mhx. 31.3.2001 A m
5

P/ID 28501/PCMA

\mh Phmk zv[P h i v

PkUPmhx. 31.3.2002 A { Pu \u
50 Phmk zv[P .980US zx \mhx. AuS
B \ . 100 J h mi
PkUPmhx. uUP. Smk
vP, C {US 31.03.2002 A u
\P.
Or
(b)

Explain the reasons for adopting slip system of posting.

^mk vUP Pn[P ?

17.

(a)

The following is the balance sheet of a company as on

31.12.2001
Liabilities

Rs.

Equity share capital

(Rs. 100 per share)

12,00,000

Reserves and surplus

2,50,000

Assets

Rs.

Fixed Assets

14,60,000

Investments (5%
securities)

1,20,000
5,40,000

Sundry creditors

5,60,000

Current assets

Provision for taxation

1,43,000

Preliminary expenses

21,53,000

33,000
21,53,000

The provision for taxation for the current year is @ 55% of the
net profits. Returns on capital employed in this industry is 10%.
Ascertain the yield value of share.

J {zv 31.12.2001 uv C{U S

P
\zxP
.
.
\u [S u (.100 u)

12,00,000

{ \zxP

14,60,000

P E

2,50,000

ukP (5%
Ezu)

1,20,000

Phu

5,60,000

|h \zxP

5,40,000

JxUS

1,43,000

xUPa \P

21,53,000

33,000
21,53,000

|h BsiP JxURk {P zv 55% u

mi v 10% [SP v
Pski.
Or
(b)

What are the restriction laid down under companies Act for
fixing remuneration to the directors, manager and
managing director?

{a \mhi CUS|P, s
CUS|US \ {n \v E PmkkP
?
6

P/ID 28501/PCMA

18.

(a)

From the balance sheets given below prepare a

consolidated balance sheet of A Ltd and its subsidiary
company B Ltd.

Liabilities

A Ltd Rs. B Ltd Rs.

Share capital

Assets

A Ltd Rs. B Ltd Rs.

Land and Building

Shares of Rs. 10 each 25,00,000 6,00,000 Machinery

6,40,000 2,00,000
12,60,000 3,40,000

General Reserve

3,60,000 1,20,000 Furniture

1,40,000

60,000

P and L A/c

2,40,000 1,80,000 40000 shares in B Ltd 5,00,000

Trade creditors

3,50,000 1,00,000 Stock

4,10,000 2,50,000

Debtors

3,80,000 1,00,000

Bank

1,20,000

34,50,000 10,00,000

50,000

34,50,000 10,00,000

At the date of acquisition by A Ltd of its holding of 40,000 shares

in B Ltd, the later company had undistributed profits and
reserves amounting to Rs. 1,00,000 none of which has been
distributed since then.

RPq C {U SPx A hm B
hmi J[Qnu C {U S uUP.
P A hm . B hm .
[S u

\zxUP

A hm . B hm .

{ Pmhh

6,40,000

2,00,000

12,60,000

3,40,000

[S . 10 u 25,00,000

6,00,000

Cv

x JxUS

3,60,000

1,20,000

zxn mP

1,40,000

60,000

|mh P/S

2,40,000

1,80,000

40000 [SP B hm

5,00,000

Phu

3,50,000

1,00,000

\UQ

4,10,000

2,50,000

PhP

3,80,000

1,00,000

[Q

1,20,000

50,000

34,50,000

10,00,000

34,50,000

10,00,000

hm 40,000 B hmi [SP GkzxU

PQx. B hmi Pkh JxUS .
1,00,000 Ex.

Or
(b)

Explain different
consideration.

methods

of

calculating

purchase

Pu PnURk \ P
?
7

P/ID 28501/PCMA

19.

(a)

From the books of accounts of new bank ltd as on 31.3.1998

the following particulars regarding loans and advances
given by the Bank in India are available
Rs.

(i)

Loans to corporate sector fully secured (excluding banks

but including companies in which direction are interest)

10,00,000

(ii)

Loan to Vijay Bank Ltd fully secured

3,00,000

(iii)

Debts due by officers (excluding dirctors - fully secured)

2,00,000

(iv)

Loan to non-corporate sector fully secured

9,00,000

(v)

Loan to nagsik Bank Ltd - fully secured

4,00,000

(vi)

Debts due by Monogk director of the bank - fully secured

1,00,000

(vii)

Debts considered good which are unsecured

5,00,000

(viii) Debts due by companies in which the directors are

interested, fully secured
(ix)

Doubtful debts

(xi)

Provision for bad and doubtful debts

(xii)

15,00,000

Maximum amount of debts at any time during the year

(x)

6,00,000

50.000
75,000

Maximum amount of debts due by officers and directors at

any time during the year

5,00,000

You are required to show how the items are statutorily required
to be entered in the balance sheet of the bank.

{ [U hm 31.03.1998 i PnUS zuP Sx

Ph uP [U B Cv Pkzu

Rs.
(i)

10,00,000

{[PUS Euzvuzxh Ti Ph ([QP

}[PP { CUS|P zvP)

(ii) [Q Ph Ezvu

3,00,000

(iii) AvPP Ph { (CUS|P }[PP Ezvu)

2,00,000

(iv) Ph A \ { Ezvu

9,00,000

(v) |UU [Q hm US Ph Ezvu

4,00,000

(vi) U Ph {, [Q CUS| Ezvu

1,00,000

(vii) Ezvuu | { E Ph

5,00,000

(viii) {[P Ph { CUS| [S Ezvu

6,00,000
15,00,000

(ix) AvPm\ Ph |hsi

(x)

50,000

\uPzvS Ph

75,000

(xi) \uP U Ph JxURk

5,00,000

(xii) AvPm\ Ph AvPP CUS|P |hsi

Pq |hiUPPUP
SP v \P.

[Q

{U

Or
8

P/ID 28501/PCMA

(b)

What do you mean by Inflation Accounting? Give its

Advantages and Disadvantages.

nUP PnUQ G G? Au |, wP
.
20.

(a)

X Y Z Ltd. has supplied the following information relating

to its staff, community and general public benefit for the
year 2003-04
Rs. 000

Tax paid to state government

4,994

Tax paid to central government

10,346

Local taxes paid

32

Generation of business

1,049

Medical facilities

196

Educational facilities

60

Training and Career Development

34

Extra hours put in by officers voluntarily

35

Increase in the cost of living in the vicinity on account of cement

plant

500

State services consumed : Electricity services

3,921

Central services consumed : Telephone, Telegram etc.

413

Provident fund, Bonus, Insurance Benefits

363

You are required to prepare Social Income Statement.

X Y Z hm uh uP, \u

xUP |UPP 2003-04 BsiP RPq

[P uQx.
. 000
{ A_ \zvx

4,994

zv A_

10,346

32

Azv |hiUP

1,049

zx \vP

196

P \vP

60

] v k

34

Tku | o AP u x \ux

35

P/ID 28501/PCMA

. 000
u \P
{ A_ \P EQzux : \

500
3,921

zv A_ \P : uv u]

413

\ | |v, FUPzuP, Pk |P

363

\u AUP u \P.
Or
(b)

Explain the advantages and disadvantages of Human

Resource Accounting.

u PnURmi |, wP .

10

P/ID 28501/PCMA