Bangalore University 2007 B.Com PE 4.3: COPORATE ACCOUNTING II - Question Paper

compute purchase consideration and state the number of equity shares issued to every company.

8. subsequent is the Balance Sheet of E ltd., as at 31.03.2008.

Liabilities Rs. Assets Rs.

Equity share Capital Land and Buildings 1,00,000
20,000 shares Plant and Machinery 50,000
Of Rs.10 every 2,00,000 Stock and Debtors 75,000
12% Debentures 1,00,000 Cash 10,000
Creditors 50,000 P & L A/c 1,15,000

3,50,000 3,50,000
Eltd. is liquidated and a new company called F Ltd., is formed. The new company takes over only the fixed assets and 12% debentures of E Ltd,. The Land and Buildings and Plant and Machinery are revalued at Rs.1, 75,000 and Rs.40, 000 respectively.

Eltd, realized stock and debtors at Rs.45, 000 and discharged creditors at 5% discount. Liquidation expenses came to Rs.1, 500.

Assuming that the purchase consideration is discharged by the problem of equity shares in new company prepare
1) Realisation A/c
2) F Ltd., A/c and
3) Equity Shareholders A\c on the books of E Ltd.

9. From the subsequent details prepare Liquidators Final Statement of Account

Assets Rs.
Land and Buildings 6, 00,000
Plant and Machinery 3, 60,000
Furniture 1, 20,000
Stock and Debtors 80,000
Cash 10,000
Liabilities
Debentures 8, 00,000
Creditors 4, 60,000

The assets other than Land and Buildings realized 10% less. Land and Buildings realized
25% more. Liquidation expenses Rs.5.000.
Liquidators’ remuneration is 2% on assets realized (except cash) and 3% on amount
Distributed to unsecured creditors.


part – C

ans any 3 of the subsequent. every ques. carries fifteen marks. (3x15=45)

10. provided beneath are the Balance Sheets of H Ltd., and I Ltd., as at 31-03-2008


Liabilities H Ltd. I Ltd Assets H Ltd. L Ltd.
Rs. Rs. Rs. Rs

Share Capital – Goodwill 10,000 5,000
Shares of Buildings 40,000 40,000
Rs.10 every 1, 50,000 1, 00,000 Plant and Machinery 60,000 30,000

Share Premium 4,500 2,000 Stock 18,000 8,000

General Reserve 10,000 5,000 Debtors 25,000 16,000
P & L A/c 1,500 1,000 Cash 47,000 26,000

Development
Rebate Reserve 6,000 3,000

12% Debentures 25,000 10,000

Creditors 3,000 4,000

2, 00,000 1, 25,000 2, 00,000 1, 25,000


The 2 companies amalgamated and formed a new company called “Hi Ltd.,” on the subsequent terms.

a) Hi. Ltd., to presume liabilities of both the companies and continue on to maintain development rebate reserve for three more years.

Earning:   Approval pending.