No. of Printed Pages : 15

1.4.09 0

11111111111111111111111111111111111

GS-441 IV Semester B.Com. Examination, May/June - 2019

(CBCS) (Fresh+Repeaters) (2015-16 & onwards) COMMERCE

4.3 : Advanced Corporate Accounting Time : 3 Hours Max. Marks : 70

Instruction: Answer should be written completely either in English or in Kannada.

t)~rl - w / SECTION - A

o:bcJ~r:;radd.rc> mdJ erow-gc3&_rlun ero~~~. g~ gc3&_n 2 ®oo'rlob.

Answer any five sub-questions. Each sub-question carries 2 marks.

5x2=10

1. (a) eJo(jw-ooi ~dsoe2.5r;J fOf;; wodoerdJ ?

What is Capital Redumption Reserve ?

(bl ~oaisoe83r;Jo:b wddJ ero~eclrloirdJ&_ eJOO3)~.

State any two objectives of Amalgamation.

(c) a:bo~GR>ddJo (Vc)~ €09~~ c3edJrloi ~QrloirdJ&_ eJOO3)~. .- State any four types of preference shares.

(d) ~0)d ~owniso~u e5~30~d W-O?SaTcJ?S0) fOe~.

Define Human Resource Accounting.

(e) ~o~o:b r;Je383 e3e5flo~ a:J~etJ cj3Clu?S ®f;;o'~~~ ®drdJ&_ o'oWfO ~oaisoe83r;Jo:b~ aSen w~rk~~ooru~dJ ?

How do you treat excess consideration over intrensic value In Amalgamation companies?

(f) eJo(jw-ooi -gerurilid aTcJ~ wodoerdJ ?

What is Capital Reduction Account?

(g) dO~~GJc)ddJ wodo a:bodJ ?

Who is a contributory?

P.T.O.

GS-441 2 11111111111111111111111111111111111

~e,J(Jrl - es / SECTION - B

om~t;J(>t;jdJa e±uadJ 9<i3~rlurl ero~erZJ. ~~ 9<i3~rl e:gdJ e:905rl~0.

Answer any three questions. Each question carries 6 marks.

3x6=18

2.

<i3e.6 illdJ wvc;J~~c;J e,gd-8@SO <i3eru 2Jo~wo~ 5,00,000

(:~::~~. ',t~ VEE ....... '#, I' c;Ja3() ?Ja 8JC)u (~ 20 9~ ~ .'\~\:>- .-::-- 4,90,000

~c::iJo~-8 fOf;J (:tY" ~>.~~t " 3,00,000

c;lg\3C) ~e~oiJo \ ~<$) KG F • 563 122 )1» /; 40,000 ~ /<Y0 ~}'

cjcj{'_)~c;))oE..1' eiJeE..1' fOf;J ~., 2,00,000

C;})rn mcj~rmc;J E'::99s\3C) 2ledxl~nb~ 2le. 1 0 ~e~o:bo ddd~ C;})m mcj~~{'_)J fOQte~uoa9J~. ?Ja 8JC)u ~ dJ c;J 500 <i3 e dJrl U 0 d a5 rn c:3 cj dJ a'0cl 0 G:.Jcl t8 ~ c.::bo ~ Ucl 09J ~. c;l 9 @so ~ e ~oiJ 0 awriro ~c.::bo@-8 fOf;Jo3J@JcX ~oc:i.Jorntwo(l 2J~rZJM~UclO9J~ awriro e:9c;JGl-8?Jg)dJc;J a5E"B~ ~ 10 c;:illaJ iJe303J ~ill-8 <i3edJrl~@J~ <i3e. 1 0 ~e~o3Jo ddd~ c.9oorlcj c.::bo& illdJmc;J~ 83 cilioiJ@J~ c:i.Jorntrl . .R>U ~Ucl a9J~.

C;))e e3 ~ g) c;J d rl U rl ~ 0 2J 0 f;J rZJ d d.rcl eaD G:.JclaJe3 oiJ@J~ 2J a09Je.

The following balances are appearing in the books of Well-done Ltd.

6% Redeemable Preference Share Capital (~ 100 shares)

5,00,000

Less calls in Arrears (~ 20 per share) 10,000 4,90,000

3,00.0

40000

2.00 000

General Reserve

Securities Premium

Development Rebate Reserve

Redeemable preference shares are redeemed at a premium of s m . arrears on 500 shares were daily collected and adjusted. ec ernrum and General Reserve was fully utilised and for the required ar . Equity Shares of ~ 10 each at a premium of 10% was issued a 0 ec.ed and redumption process carried out.

Write Journal Entries to the above effect.

11111111111111111111111111111111111 3 GS-441

3.

(a) g~~ 1,00,000 r\fclc;i){) cJedJrloiJ (~ 10 g~ cJeer1) 2.:nje5r1 'i5oiAi'Jc;;br.9,;lr;:DcX c::k;§c;ira.mo(3c:;:R)o.

o

(i) a5J"0rd ~ 10 23e5a:b r\fcldJ{) cJedJrloicdJcX 2/5 ~c;bornd a5Y cJedJrl'1:?r1 rddJi'VclA c::5ddJ~ru\30o.

t;> ~

(ii) ~ 10 c;:D)a:J 23e5cili c3e 10 e:Bd{)\30 c3edJrl~cdJcX 1/5 ~~rnd a5Y c3edJ ~ctJoEBd~ c::5ddJ~o(3dJ~o.

(a) The present 1,00,000 equity shareholders of 10 each will receive in lieu.

(i) New fully paid equity shares of ~ 10 each equal to 2/5 of their holdings.

(ii) 10% preference shares of ~ 10 paid up to the extent of 1/5 of their holdings.

(b) Goodwill worth ~ 1,40,000 totally written off. Plant and machinery stood ~ 2,00,000 written down to ~ 1,00,000 and freehold propert.y worth ~ 50,000 written off.

(c) New 10% Debentures worth ~ 1,00,000 issued mainly to make good the working capital of the firm.

Pass required Journal Entries to the above effect.

P.T.O.

[ --

GS-441 4 11111111111111111111111111111111111

4.

~~-3 ~eCu 2JO~wc)'t? ('(' 1 00 ~eCurl't?~)

~e. 12 ~d-3\30 ~eCu 2JO~wc)'t? ('(' 1 00 ~eCurl't?~)

~e. 13 ~iJOe5Curl't?J

15,00,000

8,00,000

3,00,000

G)0JOOc5 1-4-2018 dorn e:9cDf8 es. ~cX 2,Tc)rl.s es. ~o~o:ill 3.)<JeG)rU crj(jrn~JOo~ ~c;)d ee ~'t?tlrdo~cj :

(a) ~e. 12 ~d-3\30 ~eCu(JOdd 8~ ~e<Jn '(' 10 rdrlrn awruo 2,Tc)rl-3 e.'J. =s= ~e. 8 ~d-3\30 ~ecD ('(' 1 00 ~eCu) rl't?~cX e:9Cuf8 e.'J. rd 8~ ~d-3\30 ~eCurl'O'n .z,e·~eJOtl(j.

(b) 8~ ~~-3 ~eCu(JOdCu '(' 20 rdrldJ awruo worn '(' 100 c;).).)3.) iJe303J 2,Tc)rl-3 es. rd ~~-3 ~eCuri't?~cX crj(jdCu. ~dd 2,Tc)ri-3 es. rd ~~-3 ~eCurl't? c;:DoCuc5tJ iJe3 '(' 140 ~tlCu~(j.

(c) ~~ffitiVcl cj~ '(' 10,000 c;)r\DcX 2,Tc)rl-3 es. '(' 12,500 ~tl(j.

The abstract of Balance Sheet of Arun Ltd. as on 31-3-2018 is as follows:

Equity Share Capital ('(' 100 shares) 15,00,000

8,00,000

3,00,000

12% preference share capital ('(' 100 shares)

13% Debentures

On 1-4-2018 Bhagya Ltd. agreed to acquire Arun Ltd. on following terms:

(a) 12% preference shareholders will receive '(' 10 cash per share and receive 8% preference shares of '(' 100 each of Bhagya Ltd for each preference share in Arun Ltd.

(b) Each Equity shareholders will receive '(' 20 cash and one equity shares of,(, 100 each of Bhagya Ltd. at a market price of,(, 140 per share.

(c) Liquidation expenses of Arun Ltd '(' 10,000 reimbursed by Bhagya Ltd. But actual expenses amount '(' 12,500. __ -_

Calculate purchase conSideratipff.r(~(· .' cS~

~~' KG;. 5~3 \22 ~p .> ... / ~o'''

'~','f" ~ X,_ :_ .• . .. :.;::::~ ---":.;;.:~

11111111111111111111111111111111111 5 GS-441

5. @e:J es. 0:5or{l 0:5~a303Jod ~0:5ffitCi3rlrcJo~cj. e;rvoO-5 31-3-2018 dod,) ~do~ ~ddrl~J (jl <:J e,:J Co)

i5'~-5o(jo~cj :

(a)

(c) ('jg~doo~ rvoe:Jrlci> ~ 3,05,000

~0:5ffit-5(j 0:5oe.JC)dCi3 : 23e. 3 e:g~rl~od oooctd cjjOe.)-8d c;i)ee.5. _(~g~ e:g~03Jod 2Jod cjjOe.)-8

~ee) rooM @~g rvoe:Jrlen ~e~d <Ern c;jjOe_)-8d c;i)ee.5 23e. 1 ~. e:g~rl~ d.Jooowe;od

0:500ooct~ «'jg~ e:g~03JOd c.)oe;d@JcX e.3~) ~ 2,60,000.

Ali Ltd went into liquidation on 31-3-2018 with the following liabilities

(a) Secured creditors ~ 2,00,000 (securities realised ~ 2,50,000)

(b) Preferential creditors ~ 6,000

(c) Unsecured creditors ~ 3,05,000

The liquidator met liquidation expenses amount to ~ 2,520. The liquidator entitled for remuneration @ 3% on amount realised including secured asset

1 held by secured creditors and 12 % on amount distributed to unsecured

creditors. Assets (other than secured asset) realised ~ 2,60,000.

Prepare Liquidators final statement of Account.

Explain briefly the nature and scope of Accounting Standards in India.

P.T.O.

3x14=42

GS-441 6 11111111111111111111111111111111111

~&Jclrl - ~ / SECTION - C

Answer any three questions. Each question carries 14 marks.

7.

3,50,000 15 00000

~('m 2JO~<0t)~ :

60,000 14% c::m15f'\J,),2,i~~ ew.~ ...< v

12,00,000 ~~o i:WM oj)o~ Q)

~(,0J~('c:j'50fCi

25,00,000 9,00,000

14,00000

3.50,000

7000,000

e:9d-8\30 cBecbrl<Qlr\Dcl_ cBe 5 ~e~o:to ddd?'v'S 1-4-2018 dodJ ciD~r4JcJ~rdru ~Qe5rdeTclaJ.)\50. Be c;i)cbillC)c;)~C\bc;) Bsc:DJ e:9r\DWclrDc;)O~ :

(i)

(a)

(b)

(ii) e:9rl~-8~ e:9C\DrDruWclf) a5..JCJrd ~ 10 c;:illaJ e5e303J ;:GCl~ <"3edJrl-eC\Dcl_ g~ cBe5n ~ 2 ~e~o3Jo ddde..9 ~c;)ea:.~155n ~ciJrlcjr4.JcJ~rZ>d. oJ (Y)

11111111111111111111111111111111111 7 GS-441

The Balance Sheet of Spotlight Ltd as on 31-3-2018 stood as follows:

Liabilities Share Capital: 60,000 14% Redeemable preference shares of ~ 20 each 4,00,000 equity shares of ~ 10 each Profi t and Loss AI c Sundry Creditors

Assets

12,00,000 Plant and Machinery Furniture

40,00,000 Investments Stock

7,00,000 Sundry Debtors 11,00,000 Bank 70,00,000

25,00,000 9,00,000 3,50,000 15,00,000 14,00,000 3,50,000

70,00,000

The preference shares are redeemed at a premium of 5% on 1-4-2018. In

order to facilitate the redumption of preference shares it was decided to

/-/:~~:.~~A\-,~\".'E-~~ -: -: ,' .,-- .. "1/f'~

(a) Sell investments at a loss of ~ 50,000. /~'}~'/ :'-,:':,-i 'y 0'~~ '<! ",.~ )01 I, ~ __ . _.1 ' \ 1': \ - - r- " \'f:/' KGF . 563 12~;//

~y ~ ., ~-:;:1 :.> .... ;;;. * -.;;oj- -..;;.:::::==--;;,--

(b) Finance the redumption

(i) Profit and loss to be utilised leaving a balance of ~ 2,00,000.

(ii) Issued sufficient new equity shares of ~ 10 each at a premium of

~ 2 per share.

You are required to prepare (1) Journal Entries

(2) Balance Sheet after redumption.

P.T.O.

GS-441 8 11111111111111111111111111111111111

8. 23ew e.3. njo~o3J wo-8illCldc;:lrdJcl_ CJrVcJOcf 1-4-2018 dorn e8~ e.3. njo~o:bJ a:>5eCJc{,~. a:>5eCJ cjjOeJ-8d gc;::Doruc;:lrdJcl_ 'i5~o!o~o~ cddo3Jru <or:;:k5c{,dc:j) ;

(a)

(b) 23ew e.3. ~o~o3J g~ c8e5n e8~ e.3. njo~o3J ~ 75 d:Da:> 23e303J (c;::DodJo!f[1 ~e~~ 23e3 ~ 140) rVcJ~ £Ud:J-8 c3edJrl~nDcl_ ~<od:Job c;::Dotl,~otl,r;3.

(e) @deJd 23ew es. ~o~o3J tl,23oe5dJrl'!:1n &,tJOO ~ 550 cdrldJ <Oetl, tl,cJoe5d(;Jc)dd (Y) cP (J

e..Tcloo3JrdJcl_ ciliofc:Jt ';;j~-8q:jt c;::Dotl,Motl,d.

~~d:l ZJoC:;;C::SU~J :

6,000 ~~c::5.:, ~~d:lr\~ ::;

30,00.000

(~ 500 do~)

1,300 ~~. 14 ~23oWd:l7)~ 6,50,000

(~ 500 d03)

2,50,000

2,00,000

65.000

2,75,000

60.000

45,00,000

~rill CJQ

;!JU e::SJu c:56 CJ Q

~2? ~~ ~3 ""

(i)

(ii)

11,00,000

2,40,000 2,60,000

8,15,000

1,85,000

2,65,000

85,000

~_;~ !)~. u

11111111111111111111111111111111111 9 GS-441

The Business of Beta Ltd is purchased by Alfa Ltd on 1-4-2018. The purchase

consideration agreed as follows :

(a) A payment in cash at ~ 90 per every equity shares in Beta Ltd.

(b) An exchange of four shares of Alfa of ~ 75 (quoted in the market at

~ 140 each) for every equity share in Beta Ltd.

(c) A further payment in cash at ~ 550 for every Debenture in Beta Ltd,

which the debenture holders have agreed to accept in full discharge of

their debentures.

The Balance Sheet of Beta Ltd on 31-3-2018 is as follows

Liabilities Assets Share Capital: 6,000 equity shares of ~ 500 30,00,000 Land & Building 11,00,000 each Plant & Machinery 15,50,000 1,300 14% Debentures of ~ 500 6,50,000 Patents 2,40,000 each Furniture 2,60,000

Sundry creditors 2,50,000 Work-in-progress 8,15,000

Workmen Savings Fund 2,00,000 Stock in - trade 1,85,000

Insurance Fund 65,000 Sundry De btors 2,65,000

Reserve Fund 2,75,000 Bank 85,000

Profit and Loss Alc 60,000

45,00,000 45,00,000

Make necessary (i) Ledger Accounts in the books of Beta Ltd. and

(ii)

P.T.O.

GS-441 10 11111111111111111111111111111111111

9.

t9~~ ~~~ t9~~ ~~~ w~me~~,) (). (). ~~~~,) (). (). Q ...•

~ ~ ~ ~ D~Q) WO~CJ<)~

~ 1 0 ii3J~~.JJ::::l ~c::5,)~ 10,00,000 3,00,000 O~.3F ~v" 50,000 25,000 o " o

ikQ)f\~ tiw~ 3,00,000 1,00,000 eJ

~ 1 ?J .. ~~\~~:~_~~0U 1,00,000 1,00,000 o::bo~~ej5df@ 5,00,000 1,50,000 ~~~!\ j" ••. - '- • f ~J:;"~> ;:ldi5.) b~, 2,50,000 1,75,000 . -' ........ _ ._ "~ . '1 '

",'" ~ t /,..~ <, ",. i " U

(':il<J.050';. ~w . ~ ('\~ ,00,000 80,000 ~vi\t)dQ) 2,00,000 1,00,000 o 7 ::.>' <: 0 \ I .' . 20,000 50,000 20,000 .q_ ~."z3)"e.3 '(00 . -.. r- /, 50,000 ~ou<" ~~

". ;~';-}'130000 5 il-

~' A~""I/, , 80,000 ~;;;53F0i <;325 30,000 10,000

, ~~// z.; ~ .:»: 13,80,000 5,80,000 13,80,000 5,80,000 --

(a) -&e~c cjjO(')-8c;JnDcX @dJrn es. aJC)riScl rilirufCl es. ~ 75,000 aJC)riScl ~ 50,000 ~c;DWClfl wodJ 'z>Qcectc;3,

(b) wdru l5ow.Z>rlt} ~dl50 8~nDcX WJ~l5 e3e303J <5e. 1 0 l5~c;).) c;iro~d.

wddJa l5ow'z>o3J <5e. 9 e:n:J-8\3Cl <5edJGJc>den <5e. 10 ~~o3Jo ddd~ ~c;D ~oa5-803J <5e. 8 e::9d-8\3Cl <5edJrlt}nDcX (rili~~ es.) .Z>er.;§e.JC)fld.

@dJrn es. n) ~c;D(' <5edJGJc>ddJ w~ iVOm <5edJrl't1n rili~~ es. n) wdru ~ 1 0 ~c;D(' v .._j 0' -' v <5edJrlt}nDcX ~ 2 ~e~o3Jo ddd~ c'i>.Z>dJo3J c;iro~~t}~c;j)d~d ~ 20 n)rldnbcX e:9de w c;irorn d es wl1 oiD\3Cl 0. es d r3 rilirum e. n) ~dJ?) <5 e dJ GJc>ddJ w ~ i\JC) e» <5 e dJrl 't1 n ~~o.:bofl (YOrili~~ es. ~n) wdru ~ 10 ~c;D-8 iledJrlt}nDcX ~ 2 ~e~o3Jo ddd~ .Z>e~ n)rldJ ~ 30 @de wc;iromde3 .Z>e~d. oJ (YO

(e)

(d)

(b)

11111111111111111111111111111111111 11 GS-441

The financial position of Aruna Ltd and Suguna Ltd as on 31-03-2018 is as follows:

Liabilities Aruna Suguna Assets Aruna Suguna Ltd. Ltd. Ltd. Ltd.

Share Capitals: ~ ~ ~ ~

Equi ty share s of ~ 10 10,00,000 3,00,000 Goodwill 50,000 25,000 each Building 3,00,000 1,00,000 9% preference shares of 1,00,000 1,00,000 Machinery 5,00,000 1,50,000 ~ 100 each Stock 2,50,000 1,75,000 General Reserve 1,00,000 80,000 Debtors 2,00,000 1,00,000

Gratuity Fund 50,000 20,000 Bank Balance 50,000 20,000 Sundry creditors 1,30,000 80,000 Preliminar 30,000 10,000

Expenses 13,80,000 5,80,000 13,80,000 5,80,000

Both Aruna Ltd and Suguna Ltd carrying on similar business and it was agreed that they should Amalgamate. As such a new company Sumithra Ltd is formed to takeover assets and liabilities of existing companies with certain exception.

(a) Goodwill of Aruna Ltd and Suguna Ltd are to be valued at ~ 75,000 and ~ 50,000 respectively.

(b) Stocks of both the companies to be valued at 10% less than book value.

(c) 9% preference shareholders of both the companies will be paid at 10% premium by issue of equivalent number of 8% preference shares of Sumithra Ltd.

(d) Equity shareholders of Aruna Ltd will receive 2 equity shares of ~ 10 e.ach at a premium of ~ 2 per share of Sumithra Ltd and ~ 20 for 4 equity shares held by them. Where the Suguna Ltd equity shareholders will receive 2 equity shares of ~ 10 each at a premium of ~ 2 per share of Sumithra Ltd and ~ 30 per sh~~ry 4 equity shares they held.

~~JiAti4.Vr.:F-~ .. Prepare: (a) Ledger Acco~r:i~~~~~~ ~a Ltd and

(bl Incorporati~~ ~"~:S i;;~Jlliok of Sumithra Ltd. ", ..... (-.----- ". ) O).t: ~ ...•... ~ ,...... f! .' ?,;,'"K(s-f . 5h~~·t1 ~!':) ) ''''/1 P.T.O.

~"' .. ::--' '. .-'1' .'/ '- '" "' • - '":) .J~ -, /

"'-'~..:.::::~--

GS-441 12 11111111111111111111111111111111111

~({)ffiti5i'\3 ({)O~~r;J e.,g~rl~od c;:jjCleJ?5d dJee5 C'3e. 3 CEOr1..!o C'3eruG.Jc)der4 <Zle~d dso~d

dJee5 C'3e. 2.

9,000

5,00,000

68,000

1,500 C'3e. 14 d e.,gd?5i&) C'3erurl~J (~ 1 00 do~)

1,50,000 (OO~o~~i\i)&. 31-3-2017 d ~i'\3i5 <Zle~d)

90,000

1,20,000

ooej i'\3~ aJC)~ (31-3-2018 dodJ ~~o~ ) (cr) 20,000

i5fd<@rl~ @~o:b e.,g~i&) C'3erulJC)den 1/3 do~ @~i5 ooq)d~ c::3C)e5J;r?~~ @~Uod aiJooG)cb~o

(£O&b?5 C'3eruG.Jc)dru illdd i'\3o~d)

11111111111111 III 11111 I!III 1111 1111 13 GS-441

Rarnana Ltd went into voluntary liquidation on 1-4-2018. The details regarding

the liquidation is as follows :

The liquidators remuneration IS 3% on assets realised and 2% on amount

distributed among shareholders.

Cash realised from Assets

9,000

5,00,000

Expenses of liquidation

Unsecured creditors (including salaries & wages for 68,000

one month prior to liquidation ~ 6,000)

1,500 14% preference shares of ~ 100 each (Dividend 1,50,000

upto 31-3-2017 paid)

10,000 equity shares of ~ 10 each ~ 9 per share paid up 90,000

General Reserve as on 31-3-2018 1,20,000

Profit and Loss Alc on 31-3-2018 (cr) 20,000

Under the Articles of Association the preference shareholders have the right

to receive I! 3 of surplus remaining after repayment to equity shareholders.

Prepare Liquidator's final statement of Account

P.T.O.

GS-441 14 11111111111111111111111111111111111

~WC>aJc)Orl~ ~ t':9~rlro ~ Q

cBedJ 2Jo(jW"Clg :

30;000 nfOc;i){) cBedJrlgJ 3,00,000 a5(\je n3 cjjO eJ{) 20,000

(cBedJ ~ 10 ciJot8t" C!3C)d~rOd) e.iso z» <Xi"<)ru ;5 w (j 1,60,000 w

20,000 cBe 9 =s= cBedJrlgJ 2,00,000 nJO d d <Xi"<) ru o:3J 0 ~ 1,20,000 qJ J

(~ 100 cBedJ ciJot8t" ({)e~d) a00~'i5rlgJ 24,000

&J8" 00,,, ""''':'I''0'dJ ~ ~ (\jdlSJ eru 54,000 u

=.""'0 ""'abf' 48, ()Q , nJOeJrnddJ 1,18,000 ,~. • /. r

.' •• j I GJO{)OlSJ ~eo ~ ~ .~ . _ -:>8ii~ ; n3rldJ 6,800

OV"" /~ - - ..,.,..,.... .,. e.JC) e;3 - n3 ~ a:JO~ 1,42,000 /~~~~~</

' .. ~~:;:. 6-44 800 6,44,800 , ,

£.a~~ : e:gd{)~ cBedJrl~n e.JC)~o~ 2 d~t"~od GJO& ';Qd.

crlJ n3~ (() c;::bc)t" rn oiJcJ e ffi 03o:3J0DcX @ 0Dc:;iroe ~ rO d ~ddrlili ee 'i5 gfl n3 0 ~ cj :

(a) C!3C)d~rOdJd nfOc;i){)cBedJrlg0DcX ~ 5 ~ ;5~cjJ c;::bc)~d oooM 10,000 nfOc;i){) cBedJ

~ 5 0DcX dJ ~ cjJ 2J 0 (j W"Cl g ill do:3J eo nJOdt" ffi({);5 en ({) e (j e.JC) OO)~ 000 M do~ (\j e.JC)fl d

c;:t~ <E t8 end o:3J e.JC)fl d.

(b) e;iro~ awrl.Jo ;5fd~dnbcX ~ 2,20,000 ~ c:jfc)qse;5erOd a3(\jen3 d)OeJ~dnbcX 2JodJ aw1SJcj)dJ.

~dd <Xi"<)M o:3Jo~d0DcX cBe 1 0 ';Q~n:b~dJ.

(c) WCl{)C!3C)d nJOai:rooddJ cBe 25 d~ ffiWCl2J8ea:bnbcX c;::bc)~ c;::bc)(jru 8.J~dJ~o e:gdo ({)~g

ffiW"ClGJOeo:3Je9 cBe 25 <Et8 ~;5t8de9 ({)edJ~dJ. Q (Y) «l (Y)

( d) o5Jo ~ 'i5 rl g 0DcX GJO{) 0 ~ e» e 0 't? ~ ~ o5Jcl 0 ~ 'i5 ilia(j e.JC) (0) ~ . cr0 n3 ~ ({) ilia r t8 cj ~ ~ 5,000.

( e ) e:g d{)~ cB edJ (;Jc) d dJ e.JC) e;3 0 ~ GJO &o:3J0DcX 28 LB 5..Jo(j e» 8.J ~ dJ ~ 0 awM cBe. 9 e:g d{)~

cBedJrlg0DcX cBe. 11 =s= cBedJrlgJ 9~ cBeen ~ 100 wodJ illed~t"(\je.JC)OO)~.

~~rlgJ: (a) @rl~{) d.JoeffiJ (;Jc)8.)e3a:b0DcX 2JoOO)e.

(b) crlJn3 ~ (() c;::bc) t" ffi @CFcJcj enS 'i5 o:3J0DcX ~ a:buerO.

11111111111111111111111111111111111 15 GS-441

The summarised Balance Sheet of Goutham Ltd as on 31-3-2018 1S as follows: Liabilities Share capital 30,000 equity shares of ~ 10 each fully paid 20,000 9% preference shares of ~ 100 each fully paid Unsecured creditors Trade creditors Bank overdraft

Assets

3,00,000 Goodwill 20,000 Land & Building 1,60,000

2,00,000 Plant & Machinery 1,20,000 Investments 24,000

80,000 Stock-in-trade 54,000 48,000 Sun. Debtors 1,18,000 16,800 Cash 6,800

Profit & Loss AI c 1,42,000 6,44,800 6,44,800

Note : Dividend on preference shares are in arrears for 2 years. The scheme of reconstruction approved is follows. (a) Equity shares paid up value to be reduc~d to ~ ~ each and to meet

working capital 10,000 equity shares of ~ 5. each issued to public for subscription and was fully subscribed and received.

(b) Land and building should be valued at ~ 2,20,000. Goodwill to be written off. Plant and machinery to be depreciated by 10%.

(c) Trade creditors have agreed to forego liability upto 25% on condition 25% of net liability to be paid immediately.

(d) Investments are taken over by Bank in full settlement of overdraft cost of re-construction amount to ~ 5,000.

(e) Preference shareholders have agreed to give up right on dividend arrears and converted gov preference shares into 11% preference shares of ~ 100 each,

You are require to a) pass necessary Journal Entries to the above effect and (b) Draw up reconstructed Balance Sheet.

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