Question Paper Pattern-01

Time: 3 Hours

Marks-75
Part-A: (10x2=20 marks)
All the questions are to be answered

1Define share
2) Define pro- rata allotment of shares
3) Define Capital redemption reserve
4) Define Issued shares
5) Define Profit prior to incorporation
6) What is Incorporation?
7) What is statutory reserve?
8) What is a non performing asset
9) What is a subsidiary company?
10) What is a holding company?
Part-B (5x5=25Marks)
All the questions are to be answered
11-State the types of share capital.
12Doli Ltd. invited application for 10,000 shares of Rs.100/- each at a premium of Rs.5/- per
share and payable as follows
On Application - Rs.25/On Allotment - Rs.35/On Final Call - Rs.45/Applications were received or 15,000 shares and the company made a pro-rata
allotment. Miss Lata holding 500 shares failed to pay the share allotment money & share
final call money. Her shares were Forfeited and reissued at Rs.85/- per share.
Show the entries in the books of the company.
13. N Ltd. issued 1000, 8% Debenture of Rs. 100/- each at a discount of 10%
Payable as Rs. 10/- on application, Rs. 30/- on allotment and Balance on final call All

the money were duly received.

Pass necessary journal entries in the books of company.
14. Ketan Ltd. had 10,000, 9% redeemable Preference Shares of Rs.50/-each fully
paid. The company decides to redeem the shares at a premium of 10%. The company
makes the following issues for the purpose of redemption.
a) 25,000 Equity Shares of Rs.10/- each at a premium of 10%.
b) 3,000, 9% Debenture of Rs.100/- each at a premium of Rs.10/- each. The company has
a General Reserve of Rs.3,75,000/- and
Securities Premium of Rs.50,000/-. Pass journal entries to record above transactions.
15. Cho.
Chang Ltd. was Incorporation on 1 st July 08 to acquire the business of KT & Co.
st
as on 1 April, 08. The purchase price of Goodwill was agreed
to the sum equal to 75% of
the Profit of the
business for five years commencing from 1 st April 08, payment to be made
th
at the end of 5 year on ascertainment of the sum due.
16) Explain the accounting procedure in the books of Transferee Company?
17) The Profits of firm for the last five years were as follows:
Year

Profit

(Rs.)
200203

20,000

200304

24,000

200405

30,000

200506

25,000

200607

18,000

Calculate the value of goodwill on the basis of three years purchase of weighted average
profits based on weights 1,2,3,4 and 5 respectively to the profits for 2002,2003,2004,2005
and 2006.

Part-C (3x10=30marks)
Answer any Three out of Five

18- A Company issued Rs.5,00,000/- new capital divided into Rs.10/- shares at a
premium of Rs.4/- per share payable as
On Application Re.1/- per share
On Allotment Rs.4/- per share & Rs.2/- premium
On Final Payment Rs.5/- per share & Rs.2/- premium
Overpayments on application were to be applied towards sum due on allotment.
Where no allotment was made money was to be returned in full. The issue was
oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted
only 1,000 shares and applicants for 2,000 were sent letters of regret. All money due on
allotment and final call was duly received. Make the necessary entries in the company s
book.
19)The following is the balance sheet of T T Ltd. as at 31 March 2009
Liabilities

Rs.

Share capital
90,000,10% Preference
share of Rs.10/- each
fully
paid

Assets

Rs.

Fixed Assets
Investment

6,00,000
8,50,000

Current Asset

5,10,000

9,00,000
[Including Bank

40,000 Equity Share of

Bal. Rs.1,20,000]
Rs.10/- each fully paid
Reserve and surplus
Securities Premium
Profit & Loss A/c
Current Liabilities
Sundry Creditors

4,00,000
60,000
4,00,000
2,00,000
19,60,000

19,60,000

The Preference Shares are to be redeemed on 1st April 2009, at a premium of Rs.2/- per
share. Part of Investment were sold @ 10% loss for Rs.7,20,000/- and issued 60,000 Equity
Shares of Rs.10/- each at premium of Rs.10/- per share for redemption.
The company redeemed the Preference shares on 1st April 09 except in case of one
shareholder holding 500 Preference Shares who could not be traced

Subsequently the company issued bonus share in the ratio of one Equity Share for every
four Equity Shares held including the new issued.
You are required to pass journal entries and prepare balance sheet after above
transactions.
20. R. Rice Ltd. was registered on 1 st Jan. 08 to acquire the business of Dalal
Co. as on 1st
November 07. The accounts of the company for the period ended 30th September 08
disclosed the following expenses / Income :
Particulars
Office Expenses
Rent & Taxes
Audit Fees
Bad debts (of which
Rs.1,000/- debts created

Rs.
Particulars
5,500 Formation Exp. (1/5
to be written off)
6,900
Depreciation
4,400
Printing & Stationery
1,600
Commission

Rs.
15,000
4,400
1,650
7,200

before 31.12.07)
Traveling Expenses
16,600
Salaries
Interest to vendors
44,800

6,000

Debenture Interest
Discount

on

5,000
Discount Received

10,000
Debentures (1/10

to

9,000
be written off)
Bad debts realized
1,500
Carriage Outwards

9,000

Additional Information:
a) Net Sales for the
entire period amounted to Rs.5, 00,000/- of which Rs.50,000/- related to the
period from 1st Nov. 07 to 31st Dec. 07.
b) Cost of goods sold for the above period amounted to Rs.3,20,000/-.
c) There three employs upto 31st Jan. 08, four employees from Feb. 08 to 30th June 08 and
there are 7 employees after wards.
d) Bad debts realized related to sales effected prior to Incorporation.
e) Purchase consideration was discharged on 31st January 08.

f) Rent was paid Rs.2,400/- p.a. upto 31st Mar 08, after it is increased by 25%.
g) Travelling expenses includes to Rs.10,000/- towards sales promotion, balances expenses
were season railway parties to office staff.
h) Show pre and post Incorporation results.
21) Explain in the brief the types of debentures
22) M.R. Ltd. decided to redeem 2,000 Preference Shares of Rs.100/-each at 10% premium
on date of redemption the company had the General Reserve stood at Rs.50,000/- the Profit
and Loss Account credit balance of Rs.40,000/- and Securities Premium Rs.10,000/-.
Calculate the minimum number of Equity Share of Rs.50/- each issued in each of the
following cases.
Case

I: If the new Equity Shares are issued Rs.48.00

II: If the new Equity Shares are issued at par
111 If the new equity shares are issued at Rs.55.00

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