Bharathiar University 2006 B.B.M BUSINESS MANAGEMENT- - Question Paper

7. FB Ltd., sells its business to FC Ltd., as on 31st March 2007, when their balance sheet was as follows :

Liabilities Rs. Assets Rs.

Share capital : Goodwill 50,000
2,000 shares of Freehold property 1,50,000
Rs. 100 every 2,00,000 Plant and tools 83,000
Debentures 1,00,000 Stock 35,000
Creditors 30,000 Bills receivable 4,500
Reserve Fund 50,000 Debtors 27,500
P and L A/c 20,000 Bank 50,000

4,00,000 4,00,000

FC Ltd., agreed to take over assets (Excluding cash and goodwill) at 10% less than the book values and to pay Rs. 75,000 for goodwill and to take over debentures.

Purchase consideration was to be discharged by the allotment to the FB Ltd., of 1,500 shares of Rs. 100 every at a premium of Rs. 10 per share and balance in cash. Cost of liquidation of FB Ltd., amounted to Rs. 3,000. Show necessary ledger accounts in the books of FB Ltd.

8. Under what heading, the subsequent items are shown in the balance sheet of a company ?

i) Loans to employees.
ii) Cost of problem of shares.
iii) Fixed deposits at SBM.
iv) Dividend equilisation fund
v) Pension fund
vi) Live stock
vii) Commission received but not earned
viii) Proposed dividend
ix) Patents and copy rights.
x) Forfeited shares A/c.

9. Prepare balance sheet of AC Ltd., from the subsequent ledger balances as on 31st March 2007.

Equity share capital Rs. 5,00,000
Plant and machinery Rs. 6,00,000
12% preference share capital Rs. 4,00,000
Freehold property Rs. 3,00,000
Goodwill Rs. 1,00,000
10% debentures Rs. 4,00,000
Sundry debtors Rs. 1,40,000
Closing stock Rs. 2,00,000
Bank overdraft Rs. 60,000
Sundry creditors Rs. 60,000
Cost of problem of shares Rs. 40,000
Unclaimed dividend Rs. 50,000
Advertisement suspense A/c Rs. 90,000

part - C

ans any thee ques.. every carries 15 marks : (15x3=45)

10. From the subsequent trail balance of PQS Ltd., as on 31st March 2007, prepare the company final accounts, after considering the subsequent adjustments :

Adjustments :

i) Closing stock Rs. 1,20,000
ii) Depreciate building by 10%
iii) Accrued interest on investments Rs. 12,000
iv) Make provision for taxation Rs. 25,000
v) Transfer Rs. 25,000 to reserve fund.
vi) Write off bad debts by Rs. 10,000

Earning:   Approval pending.