S.No.

0909

11U4CMC09 / 11U4CCC07
(For the candidates admitted from 2011-2012 onwards)
B.Com / B.Com (CA)., DEGREE EXAMINATION
APRIL / MAY 2013.
Fourth Semester
CORPORATE ACCOUNTING - II

Time : Three hours

Maximum : 75 Marks
SECTION A (10 x 2 = 20 marks)
Answer ALL Questions.

1.

Define Amalgamation.

2.

What is purchase consideration?

3.

Who are preferential creditors?

4.

What do you understand by Alteration of share capital?

5.

What is Rebate on Bills discounted?

6.

Write a note on Non Banking Assets.

7.

What do you understand by Life Assurance Fund?

8.

What is Re insurance?

9.

Define a Holding Company.

10.

Give the meaning of Subsidiary Company.

SECTION B (5 x 5 = 25 marks)
Answer ALL Questions.

11.

(a)

What are the various reasons for Amalgamation of existing

companies?
Or

(b)

A Ltd agreed to absorb the Business of B Ltd. The purchase

Consideration was as under.
(i)

For every 4. 10% preference shares of Rs. 10 each in B Ltd. 7

Equity shares in A Ltd of Rs. 10 each as Rs. 8 paid up there
were 60,000 10% preference shares in B Ltd.

(ii)

12.

(a)

For every 3 Equity shares of Rs. 10 each in B Ltd. 8 Equity

shares in A Ltd as Rs 10 paid up. There were 90,000 Equity
shares in B Ltd. Find out purchase Consideration.

The following particulars relate to a company, which has gone into

voluntary liquidation. Prepare liquidators final Statement of account,
allowing for his remuneration at 2% on the amount revised and 2% on
the amount distributed as unsecured oreditors other than preferential
creditors.
Preferential Creditors
Unsecured Creditors
Liquidation Expenses
Assets Realized

Rs 24,200
Rs 1,32,100
Rs
1,000
Rs 1,51,000

Or

13.

(b)

Distinguish between Internal and External reconstruction.

(a)

On 31st Dec 2010 the following details are available for a Banking
Company.
Interest
Earned
Interest
Expended
Profit B/F
From the p.y

Other
Incomes
Operating
Rs 1,25,000
Expenses
Rs 5,25,000

Rs 1,00,640

Rs 2,20,440
Rs 1,83,686
-

Prepare Profit and Loss A/C.

Or
(b)

Calculate the Net Profit earned by S Bance Ltd for the data given
below for the year Ended 31.3.03
Interest
Other
Rs. 5,00,000
Earned
Income
Interest
Operating
Rs. 3,40,000
Expended
Expenses

Rs. 37,000
Rs. 1,05,000

Prepare on Bills discounted :

1.4.2002 48,000
31.3.2003 52,000
14.

(a)

The revenue account of a life assurance company shows The Life

Assurance Fund on 31.3.2009 at Rs 62,21,310 before taking into
account the following :

Claims Covered under reinsurance

Bonus utilised in reduction of life
Insurance premium
Interest accured on securities
Outstanding Premiums
Claims intimated but not admitted

Rs 12,000
Rs 4,500
Rs 8,200
Rs 5420
Rs 26,500

What is the Life Assurance Fund after taking into account the above
somissions?
Or

15.

(b)

You are required to calculate the claims incurred by a fire Insurance

company to be shown in Revenue Account for the year ending 31.3.09
with the help of the following data :
Claims paid Rs 6,58,815 claims outstanding 1.4.08 Rs 1,04,000 claims
outstanding 31.3.09 Rs 60,000 Medical expenses relating to claims
6,000 claims covered under reinsurance Rs 10,000.

(a)

On 30.6.03, 2/3rd of the shares of S Ltd (with a total capital of

Rs12,00,000) were acquired by H Ltd. The Balance sheet of S Ltd
showed a debit balance of Rs 6,00,000 on 1.1.03 and a credit balance
of Rs 3,60,000 on 31.12.03. The Investment made by H Ltd in S
Ltds share is Rs 9,00,000. Calculate the cost of control or Capital
Reserve.
Or

(b)

H Ltd purchased 75% of shares in S Ltd on 1.7.09. On 31.12.09 the

Balance sheet of S Ltd showed Reserve fund balance on 1.1.09
Rs 40,000. Profit earnal during 2009 Rs 60,000 and preliminary
expenses unwritten off Rs 20,000. Calculate capital profits and
Revenue profits.
SECTION C (3 x 10 = 30 marks)
Answer Any THREE Questions.

16.

The balance sheet of A Co Ltd as on December 31st 2010 was as follows

Liabilities
Share capital
1,00,000Shares of
Rs. 1 each
Sundry liabilities

Rs.

Assets
Fixed Assets
1,00,000 Current Assets
20,000 P & L a/c
1,20,000

Rs.
90,000
10,000
20,000
1,20,000

B Co Ltd absorbed the A Co Ltd and took over all the assets for Rs 72,000
payable Rs 50,000 in shares of Rs 1 each and Rs 22,000 in cash (in order to
enable A Co Ltd to pay off its liabilities and cost of winding up) show
Realisation A/c Shareholder A/c and Cash A/c in the books of A Co. Ltd.

17.

Given below is the Balance sheet of a Company as on 31.3.09

Liabilities
Share Capital :
2000 preference shares
of Rs100 each
3000 ordinary shares of
Rs 100 each
Securities Premium
Other liabilities

Rs
2,00,000

Assets
Good Will
Fixed Assets

Current
Assets
Preliminary
50,000
Expenses
1,50,000 P & L A/c
7,00,000
3,00,000

Rs
1,20,000
2,50,000
1,80,000
15,000
1,35,000
7,00,000

During 2008-09, the following resolutises were implemented :

(i)
To reduce the face value of the preference and Equity shares to
Rs 50 each.
(ii)
To write off other assets (except Real assets) by utilizing securities
premium to the required extent.
Prepare the Balance sheet after the reconstruction and also the
journal Entries thereon.
18.

Distinguish between Life Insurance and general Insurance.

19.

Prepare the profit and Loss account for the year ended 31.12.2009 of X
Bance Ltd from the following particulars.
Rs
(in000)
Interest on Savings
accounts
Interest on Cash credits
Interest on Overdrafts

Rebate on Bills discounted

Salaries and allowances
Rent, tax, Insurance etc

20.

150

Rs
(in000)
Interest on loans

Interest on Fixed
Deposits
Interest charged
50 against current
accounts
19
120 Discount
Dearness
5
allowance
Managing directors
15
salary
160

250
190
20

40
35

commission, brokerage and

15
Exchange
Contribution to provident
10
Fund
From the Balance sheet given below prepare a consolidated Balance sheet of
A Ltd and its subsidiary Company B Ltd.

Balance Sheet as at 30.6.04

Liabilities
Share capital shares
of Rs 10 each
General Reserve
P & C A/c
Creditors

A Ltd
Rs
25,00,000
3,60,000
2,40,000
3,50,000

34,50,000

B Ltd
Assets
Rs
6,00,000 Land &
Buildings
1,20,000 Machinery
1,80,000 Furniture
1,00,000 40,000
shares in
B Ltd
Stock
Debtors
Bank
10,00,000

A Ltd
Rs
6,40,000

B Ltd
Rs
2,00,000

12,60,000
1,40,000
5,00,000

3,40,000
60,000
-

4,10,000 2,50,000
3,80,000 1,00,000
1,20,000
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 latter company had undistributed profits and reserves amounting to
Rs 1,00,000 none of which had been distributed Since then.
*******