UG-257

32
IV Semester B.Com. Examination, September/October 2022
(2021 22 and Onwards) (F+R) (CBCS)
COMMERCE
Paper-4.3:Advanced Corporate Accounting9
Time 3 Hours Max. Marks 70

Instruction : Answer should be completely written Co

eitherin Kannada or in
ACiaro
English only.
LIBRARY
College
SECTION- A
S6001
anga
1. Answer any five of the following sub-questions. Each sub edéstion carries
two marks.
(5x2=10)
a) State the steps involved in the preparation of consolidated financial statement.
b) What is Capital Reduction Account ?

c) State any two differences between Amalgamation and Acquisition.

d) What is call in arrears?
e) What is sustainability accounting?
f) Mention any four functions of liquidator.
g) State the various methods of valuation of Human Resource
Accounting.
SECTION-B
Answer any three from the following. Each question carries five marks. (3x5-15)
2. Calculate liquidator remuneration and also state the amount paid to unsecured
creditors.

i) Balance of cash after paying preferential creditors 8,20,000.

i) Other unsecured creditors 9,56,000.
i) Liquidator's remuneration is 3% on the amount paid to other unsecured
creditors.

P.T.O.
UG 257

3. Asha Ltd. acquired 100000 equity shares of 10 each in Usha Ltd. on

31-12-2020. Their assets and liabilities as on 31-3-2021 were

Liabilities Asha Ltd. Usha Ltd. Assets Asha Ltd. Usha Ltd.

Share capital Fixed Assets 8,60,000 8,00,000

(shares of R 10 each) 20,00,000 12,00,000 Current Assets 8,60,000 8,00,000

General Reserve Investments

on 31/3/2020 4,00,000 1,80,000 (Shares in

Profits for the year 2,00,000 1,20,000 Usha Ltd.) 10,80,00o
Creditors 2,00,000 1,00,000

28,00,000 16,00,000 28,00,000 16,00,000o

Calculate Minority Interest and cost of control.

4. Pavan Ltd. resorted to Internal reconstruction. The scheme is as under

a) 40,000 Equity shares of 10 each fully paid to be converted into 20,000
equity shares of 5 each fully paid.

b) 2,000, 12% preference shares of F 100 each

fully paid to be converted into
20,000 equity shares of R 5 each, fully paid.
c) 300, 15% debentures of T1,000 each to be
discharged by the issue of 40,000
equity shares of F 5 each fully paid.
d) The amount so available be appropriated to write off the following.
Profit and Loss A/c debit
balance 2,00,000, Goodwill 2,00,000 and Plant
and machinery 1,50,000.

Pass necessary journal entries in the books of Pavan Ltd.

 UG-257

5. Chandru Ltd. is taken over by Varun Ltd. on the following terms

i)The Assets and Liabilities of Chandru Ltd. shall be valued at 15,00,000
and 5,00,000 respectively.
i) 7 2,500 shall be paid in cash and the balance of consideration shall be
discharged by issue of shares of 10 each at a premium of 50%.
Show the calculation of purchase consideration and also state the number of
shares issued to the shareholders of Chandru Ltd.

6. What is Public Expenditure Accounting ? Explain the importance of Public

Expenditure Accounting.

SECTION-C

Answer any three of the following questions. Each question carries

twelve marks. (3x12-36)
7. From the following Balance Sheet of 'K' Ltd. and its subsidiary 'M' Ltd. prepare
the Consolidated Balance Sheet as on 31-3-2021.
Liabilities K' Ltd. M' Ltd. Assets 'K' Ltd. M' Ltd.

) () ()
Equity share capital Goodwill 20,000
of 5 each 10,00,000 2,00,000 Buildings 2,00,000 70,000
General Reserve 1,00,000 40,000 Machinery 6,00,000 1,20,000
Profit and Loss A/c 50,000 64,000 Shares in M Ltd. 1,70,000
Creditors 90,000 24,000 Stock 2,00,000
60,000
Bills payable 60,000 12,000 Debtors 1,20,000 24,000
Bills receivables 36,000
Cash in hand 10,000 10,000
13,00,000 3,40,000 13,00,000 3,40,000
The 'K' Ltd. purchased 30,000 shares in 'M' Ltd. on 30-9-2020. The balance
in general reserve and P& of 'M' Ltd. stood at
L A/c 16,000
24,000 and
respectively on 1-4-2020. The B/R of 'M' Ltd. 36,000 is accepted by * ' Ltd.
The Debtors of 'M' Ltd. 8,000 due from K' Ltd. The stock of 'M' Ltd. includes
Goods purchased from 'K' Ltd. for 10,000 which are invoiced by 'K° Ltd. at a
profit of 25% on cost.
 4-
UG-257
and 'B' Ltd. on 31-3-2021.
8. The following is the financial position of 'A' Ltd.

A' Ltd. 'B' Ltd. Assets

A' Ltd. B' Ltd
Liabilities

Equity shares of Land and Building 30,000

1,00,000 60,000 Plant and Machinery 1,10,000 50,000

100 each
6% Debentures of Stock 16,000 8,000

10 each 20,000 -Debtors 14,000 9,000

Reserve fund 34,000 Cash 3,000 1,000
Dividend equalisation

Fund 4,000
Employee's P.F. 3,000
Creditors 10,000 8,000
Profit and Loss A/c 2,000

1,73,000 68,000
1,73,000 68,000
The two companies agreed to amalgamate to form a New
C Ltd. The Authorized capital of 'C' Ltd. is
Company called
1,00,000 Equity shares of
T 10 each. The assets of 'A' Ltd. are
taken over at reduced valuation of 10%
a
with the exception of land and building which are
Both the companies to receive 5% of the
accepted at book value.
valuation of their
as Goodwill. The entire
respective business
purchase price is to be paid by 'C' Ltd. in
shares. In return for debentures in 'A' Ltd. fully paid
debentures of the same amount and
denomination are to be issued by 'C Ltd.
Calculate the purchase consideration and prepare
C Ltd.
opening Balance Sheet of
 5 UG 257

9. Maruthi Consumption Limited went into voluntary liquidation on 31-3-2021. The

Balance Sheet as on that date was

Liabilities Assets

Share capital Land and Buildings 5,00,000

10,000, 6% preference share Machinery 12,50,000
of T 100 each, fully paid 10,00,000 Patents 2,00,000
5,000 Equity shares of Stock 2,75,000
T 100 each, F 75 paid up 3,75,0000 Debtors 5,50,000
15,000 Equity shares of Cash at Bank 1,50,000

100 each, 60 paid up 9,00,000 Profit and Loss A/c 6,00,000

5% Mortgage debentures 5,00,000
Interest outstanding on debentures 25,000
Creditors 7,25,000

35,25,000 35,25,000
The liquidator is entitled to a commission of 3% on all assets realised except
cash and 2% on amount distributed to unsecured creditors.

Creditors include 7 35,000 for Income Tax due to Government, 7 10,000

outstanding salaries of employees and an award of 30,000 made under

Workmen's Compensation Act. It also includes a loan for 1,25,000 secured
by Mortgage on Land and Buildings. The preference dividends were in arrears
for two years. The assets realised as follows.

Land and Building 6,00,000

Machinery 10,00,000
Patents 1,50,000
Stock 3,00,000
Debtors 4,00,000
Expenses of Liquidation Amounted to 55,000.
Prepare the Liquidator's Final Statement of A/c.
UG-257 6

Limited as on 31-3-2021
10. Given below is the Balance Sheet of Successful

Liabilities Assets

10,000, 8% preference shares Goodwil 2,00,000

of 10 each 1,00,000 Buildings 8,000

10,000 Equity shares of 10 each 1,00,000 Plant 10,000

Creditors 36,000 Debtors 2,400

Bank overdraft 40,000 Stock 44,000

Preliminary Expenses 6,000

Profit and Loss A/c 5,000

Cash 600

2,76,000 2,76,000
The following scheme of reconstruction was adopted.

a) 10 preference shares were to be reduced to an equal number of fully paid

shares of 7 8 each.

b) 10 equity shares were to be reduced to an equal number of fully paid shares

of 5 each.

c) Creditors agreedto forego 16,000.

d) The amount thus available was to be utilised to the nominal assets and the
balance if any, to be written off Goodwill.

Passnecessary journal entries and prepare

Capital Reduction A/c and
Reconstructed Balance Sheet.
 UG-257

11. The business of the Arun Ltd. was purchased by Kiran Ltd. The purchase
consideration was as follows
a) An payment in cash at F 40 for every share in the Arun Ltd.

b) An exchange of 4 shares in the Kiran Ltd. of 50 each at the market value

of 80 for every share in the Arun Ltd.
A further payment in cash of 110 for every debenture in the Arun Ltd.

The Balance Sheet of Arun Ltd. as on 31-3-2021 was as follows.

Liabilities Assets

Capital
1000 Shares of 200 each 2,00,000 Buildings 75,000
1000 Debentures of 100 each 1,00,000 Machinery 1,50,000
Creditors 30,000 Stock 90,000
Reserves 65,000 Debtors 80,000
Workmen's Savings Bank A/c 10,000 Bank 35,000
P&LA c 25,000

4,30,000 4,30,000
Prepare the necessary Ledger A/cs in the books of Arun Ltd. and Journal Entries
in the books of Kiran Ltd. under purchase method.

SECTION- D

Answer any one of the following questions. Each question carries nine marks. (1x9-9)

12. List out legal provisions in respect of Internal Reconstruction.

OR
Name a company which is following human resource accounting and note down
how their human resources are valued and shown in Balance Sheet.
UG-257 8

1. &nsadaddearb eva-aerner evzoA. Z3eva-onotb eorkb. (5x2=10)

b) wotdosD das STD3 JoTöeaD ?

e) ioor eodo SErb otsdesb ?

(3x5-15)

i) ÖNOÄ DBT ToTd nt UVPOTDDS

Trittb do. 8,20,000.
i) a3d edd mÖNdo de. 9,56,000.

ii) DxtsrQDOÄ AJd sygD DONoK DRTTUDT

SATT de. 3 dab,
 9 UG-257

3. D . e. 100000 do. 10 d maa aiedbrsa Omod 31-12-2020 dots

TTaAdAoad. Ddde dorid epö i oDOT 31-3-2021 dos
. evao . no O. evTo .

(ta.) (a.) (d.) (.)

8,60,000 8,00,000
( a deor 23D r 8,60,000 8,00,000

de. 10 do3) 20,00,000 12,00,000 oas

(evaR . 3O)10,80,000

31-3-2020 dos 4,00,000 1,80,000

2,00,000 1,20,000
2,00,000 1,00,000

28,00,000 16,00,000 28,00,000 16,00,000

4. 305o O. wodDE aHTo ODsro agsOr odoeuriat St5odods.

a) 40,000 Joos mT3AT do. 10 d DaD arTbriea 20,000 do. 5 d JpDF

b) 2,000, 12% oroF DBAT dA. 100 Tn Trie 20,000 do. 5 dapors

c) 300, 15% JocoF o A do. 1,000 d DOTTNeR 40,000 de. 5 dpoF

d) bedsaieos iodatevabms änson 5 8eNTETVT doddbDEaJdb.

cpy b smdob eves do. 2,00,000, #e2rae do. 2,00,000 bz obog
b S d de. 1,50,000.

. ToT) Dstoodoa woodDo.

 -10
UG-257

mQrTAdNoUd).
5. JabrO. Boadiado sor Oab ssn addprisiooori TA. 5,00,000
15,00,000 h
i)23o . 3s dbd Dnoriab tbero do.

ii) do. 2,500 Ja rio doddoevOd DOeDdenndo. 10 dDa didorts

Se. 50 d asx)so aided) m 3 i ) .

Totbo3o0o.

-
ens ooosdo aode evgo3. 3 i 12 woaris (3x12-36)
7. 3. 8 . ) edd eQes todd do. O ODod 31-3-2021 deps eneod ie,e@r3

. . o..AreD .. o . O.

(da.) (tA.) (d.) (.)

8e8F 20,000
do. 5 dod 10,00,000 2,00,000 issnes 2,00,000 70,000
1,00,000 40,000 odoode raiddrorisb 6,00,000 1,20,000
50,000 64,000 o. O. edorreO
90,000 24,000 oas 1,70,000
60,000 12,000 DRTD 2,00,000 60,000
1,20,000 24,000
36,000
10,000 10,000
13,00,000 3,40,000
13,00,000 3,40,000
..Do.' O. 30,000 doNe5, OsDo8 30-9-2020 do DarOA3.
do. 24,000 a do. 16,000 Ta do. 36,000 'ao. 0. dosz dooarid
.dJpndba. ' o d. de. 8,000 peórso ' O. doc
' o O.
DRDNdO do. 10,0005 . OG 5TTTOYTH gdbaja.
25% ppoT iO. seors d) eyrid Sne be
 -11 UG 257

8. mod 31-3-2021 do3's O. Toa "a0 O.astoaDAd Aerertto s bvtodo85

. '.

30,000

o. 100 dod 1,00,000 60,000 msd dba adbo 1,10,000 50,000

6% DOzrsb 16,000 8,000

do. 10 do3 20,000 adoeore 14,000 9,000

34,000 3,000 1,000

4,000

3,000

10,000 8,000

2,000

1,73,000 68,000 1,73,000 68,000

eo ieto wodope de. 10 01,00,000 Dap dedorispns. 's d. 3 e ab

ae se. 5 se3F3Dea ddodbdmd. wéspo Db¢D e T a '* O JerF

UG 257 12

9. mos 31-3-2021 dotb dpdb8 T o a O. Robo rt3F Aes DGFOAT.

aed word55D4: 5,00,000

10,000, 6% 3 edbries adbodeeatETorisb 12,50,000
do. 100 dod JproFDJBAT 10,00,000 r 2,00,000
5,000 n iedbre 2,75,000
de. 100 dos, de. 75 d8A 3,75,000 aesrie 5,50,000
15,000 P D edsres 1,50,000
do. 100 do3, do. 60
3A 9,00,000 dd z 6,00,000
5% tdsD MOTE
5,00,000
25,000
DOrid
7,25,000
35,25,000 35,25,000
edo mermdoñ dedieod äagd a. 2 d, TepeR
Tronn.
ROridO do. 35,000 Smob oR UDi, do. 10,000 D adD o e
dood aQdo o de. 30,000 adba DFET
do. 1,25,000 dea bz)
doodas sioo@d. dosi do rorieb
#issris Srd eTzaDTd. UT3 dedorkd r d
epYDOT

6,00,000
odbode eadtdcarieb 10,00,000
1,50,000
3,00,000
4,00,000
55,000
 13- UG-257

10 Bo. odo
eIDSTIE, DMOd 31-3-2021 dod E4 8vdodo835

10,000, 8% R edories
8eBFe 2,00,000
do. 10 do
1,00,000 tezsrss
e
8,000
10,000 DdJB edoriS de. 10 dos 1,00,000 10,000
d
aororieo (Ord) 36,000 beories 2,400

40,000 O 44,000

6,000

5,000

600

2,76,000 2,76,000

a) do. 10 d 3 edbriea e T o o do. 8 T JorOF D3AT iedoreon

2wdepodxbab.
b) do. 10 on aedoriia ess roa od do. 5 d ooF A d etbreen

doader
C DONdb do. 16,000 e3DBOTeD udod.

woCod.
UG-257 -14

övtorsodti.

a) edbrs . 3asieori do. 40 dos rida derdayi.

b)do O. 3zs ieoR Bdrs O. 4 do. 50 d äedbrsab adbe a°
de. 80 do3 wToDaODRDJTO.
wotdbsöcb MUETer de. 110 dos
zs mezdi andsb ezbyao.
edbs . 3egoi a3 DDod 31-3-2021 dod s dvTodoSs.

d.

75,000
1000 rdoneb de. 200 dos 2,00,000 adbodeea5do 1,50,000
1000 DeTered do. 100 dos 1,00,000 90,000
30,000 adorsrieb
80,000
65,000 2.085 35,000
10,000

25,000

4,30,000
4,30,000

2wOOwo.
 -15 UG-257

(1x9-9)
12. eoo HTODaFEo sedb waleb
Dwopirda, dijapa.