Acharya N G Ranga Agricultural University 2006 Diploma Financial Management Financial Accounting - Question Paper

Financial Accounting
Octomber 2006
Time: three Hours
Marks: 100
NB:

1. ques. No. one is compulsory.
2. Attempt any 5 ques. from ques. Nos. two to 9.
3. All working notes should form part of ans.
4. Figures to the right indicate full marks assigned to every ques..
5. Specify assumptions, if any, while solving the ques..

* Q.1 Shubha Ltd. absorbed Sushma Ltd. with effect from first April, 2005 when their Balance sheets as on 20 31-03-2005 were as under: 20
*
*
Liabilities Shubha Ltd.Rs. Sushma Ltd.Rs. Assets Shubha Ltd.Rs. Sushma Ltd.Rs.
Share Capital: Fixed Assets
10% Preference Share of
Rs. 100 every 2,00,000 2,00,000 Land & Building 2,20,000 1,40,000
Equity Share of Rs. 100 every 5,00,000 2,00,000 Plant & Machinery 4,20,000 2,60,000
Reserves & Surplus:
Revaluation Reserves 20,000 -- Current Assets, Loans
Export Profit Reserves 40,000 20,000 & Advances 2,90,000 1,60,000
General Reserve 2,00,000 60,000 Stock 1,20,000 1,40,000
Secured Loans Sundry Debtors 1,30,000 90,000
10% Debentures of Rs. 100 1,20,000 Bills Receivable 20,000 10,000
15% Debentures of Rs. 100 80,000 -- Bank
Current Liabilities & Provisions
Sundry Creditors 1,60,000 2,00,000
12,00,000 8,00,000 12,00,000 8,00,000
*
*
* Terms Of Amalgamation:
1. Shubha Ltd. will problem 8 equity shares for 5 equity shares in Sushma Ltd.
2. 11 % Preference shareholders of Sushma Ltd. will be issued equal number of Equity shares inShubha Ltd.
3. 10% Debentureholders of Sushma Ltd. aredischarged by Shubha Ltd by issuing equal numberof its 15% Debentures of Rs. 100 every.
4. All the Assets and liabilities of Sushma Ltdare taken over at book values other than the subsequent.
* (i)Fixed Assets at 10% more than book values.
* (ii)Stock at Rs. 1,44,000
* (iii)Debtors at Rs. 1,25,000
* (iv)Bills Receivables at Rs. 81,000
* You are needed to-
* a.Compute Purchase consideration.
* b.Prepare Ledger Accounts to close the books of Accounts of Sushma Ltd.
* c.Pass journal entries and prepare Balance-sheet after Amalgamation in the books of Shubha Ltd. applying Purchase Method.
* Q.2 subsequent is the Balance sheet of PARAMOUNT LTD. as on 31-03-2005 :— 16
*
*
Liabilities Rs. Assets Rs.
Share Capital Fixed Assets
6,000-8% Preference shares ofRs. 100 every 6,00,000 Goodwill 60,000
50,000 Equity Shares of Rs, 10 every. 5,00,000 Building 3,00,000
Capital Reserves 50,000 Furniture 1,00,000

Earning:   Approval pending.