[Thi s qu es ti on paper co nt ain s 48 printe d pages .

Your Roll No ........ ...... .

Sr. No. of Question Paper : 681 A

Uniqu e Paper Code 52414403

Name of the Paper Corpo rate Acco untin g

Name of the Cours e B.Com. (P) CBCS

Seme ster : . IV

Durat ion : 3 Hours Maxi mum Mark s : 75

Instr uctio ns for Cand idate s

1. Write your Roll No. on the top imme diatel y on receip t

of this quest ion paper .

2. Attem pt .ALL Quest ions.

3. Simp le Calcu lators are allow ed to be used.

4. Work i ng Notes shoul d form part of the answe r.

5. Answ ers to theor y quest ions shoul d be brief and to

the po.int .

6. Answ ers may be writte n 1n Hindi or Engli sh but

the same mediu m shoul d be follow ed throu ghout the
paper .

P.T.O .
 68 I 2

rnm=ct~P1~91

l ~ ~ - ~ ~ ~t~~~~~ ~JlT.RT
Jijr;h 'i i°&1 fH({q~ I

6. ~ ~ - 'tBf cfiT "3"W ~ m~ fctiffl ~ mm ~ ~ , ~ fct:H

ri~c f>T~ ~mm ;JT~ I

I. (a) On 31st March, 2022, the paid up capital of OM

Ltd. is f 36,00,000 consisting of 2,40,000 Equity
Shares of f 10 each fully paid up and 1,60,000
Equity Shares off IO each, f 7.50 per share paid
up. It has f 2,40 ,000 in Securi ties Premiu m
Account, f 2,00,000 in Profit and Loss Account
(Cr.), f 4,00,0 00 in Genera l Reserv e and
~ 5,20,0 00 in Capita l Redem ption Reser ve

Accou nt. It has ~ 24 , 00,000 , 12% Partly

Conver tible Debent ures of ~ 100 each (20 % of
Debenture s are conver tible into equity shares of
 .. - -·- ... - .,._

681 3

, 10 ~:H.: h full y poi<l on 1s t J1111 c.: .l 0 22 ) ,, 11 l ~t

Apr il , 20 22 , th e Co mpan y d cc id l: <l l( 1 c on ve rt t h e

par tl y pa id eq uit y s hore s into full y paid share"' hy

way of bo nu s and to iss ue fu ll y pa id -up Bonu s
Sh ar es to th e ho Id er s of ru 11 y pa id up s h an:.., in
th e same ratio . Calculate the amount of Bonus.
( 2-+ 2+ 2=-6)

(b) AA TMA Ltd. decides to redeem 2600 , 15% Pref.

Shares of ~ 1OD each at 10% premium . lt has a
General reserve of~ 4,62 ,000 , Securitie s Premiu m
. of~ 4,000 and Investme nts [Face value~ 4 ,00,000]
of ~ 8,00 ,000. 40% of Investme nts are sol d at
150% .If the new equity shares are to be iss ued
at 25% premium and minimum General reserve of
~ 2,00 ,000 is to be kept. Calculate the minimum
number of Equity shares oft .10 each to be issued
for the purpose of redemption and the amount
required to be transferred to Capital Redemption
Reserve Account . (3+ 3=6)

( c) On 1.4.2018 P ARMATMA Ltd grants 100 options

to each of its 2100 employees at f 240 when the
Market price is f 3 60. The vesting date is 3 1st
March , 2020 and the exerci se date is 3 1st Marc h.

P.T.O .
-J 4
I 681

2 () :2 2 . /\ t th C C ll J O r y Ca r I ' th e <,; 0 111 p i.l I) y ro LI n d

th a t I 00 c mp loyc cs ha<l Ie ft. At t he end or yc.:a r 2,

th e co mp any foun d th a t 80 em ploy ees had le ft At
th e e nd of yea r 3, th e <.:ompany foun d that 192
e mpl oye es had Jeft. Onl y J 700 e mpl o y ees cxcrcisc.: d
va lue
th e ir o ptio n s on 31s t M a rch , 202 2. The face
of equ ity sha re is ~ IO p e r sha re. Com pute
Expenses to be recognised in each year by Fair
Val ue Met hod and the Val ue of Opt ions
Forfeited.(Assume that the Mar ket pric e per share
is f 360 at 31st March of each year).
(2+2 +2+ 2=8)

OR ALT ERN ATI VE QU EST ION ·

the
AM LA GIL OY & TUL SI Ltd pro vid es you
:
foll owi ng rele van t info rma tion as at 31s t Mar ch , 2022

(< in lakh)
- Particulars
.
paid up
, oo
10% Redeemable Pref. shares of ~ 10 each fully
1200
Equity Shar es of < 10 each fully paid up
520
Securities Premium
680
General Reserve -
681 5

Profit & Loss Account 240

Capital Redemption Reserve 80

Plant Revaluation Reserve 2000

Debenture Redemption Reserve 102

12% Debentures (of ~ 400 each) 332

General Investments [Face Value ~ 800 lakh] 1600

Investments in 1,32,000 Own Debentures 120

Debenture Redemption Reserve Investments [Face Value 80

t 60 lakh]

Cash at Bank 1200

On 1st April, 2022, ·the company decided:

(a) To buy back 8 lakh equity shares at ~ 50. For

this purpose, 40% of General Investments were
realized at market price which was 125°/o of the
face value.

(b) To redeem the Pref. shares at a premium of 10%.

( c) To cancel Investments in Own Debentures and to

redeem the Debentures at a premium of 5%.
Debenture Redemption Reserve Investments
realized 20% more than face value. Later on the
company issued three fully paid up Equity Shares

P.T. O.
>

681 6

of tl O each by w ay o f bonu s s hares for eve ry

fi ve equit y share s h e ld. The comp any d e s ired to
have 111inin1u1n reduc tion in free reser ve s.

Requ ired: Pass the nece ssary Jour nal Entri es

relati ng to part (a), (b), (c) and bonu s share s.
(4+4+. 8+4== 20)
 681 9

{cf1) 8 ~ -4fcfc1tl ~ cfiT ~ so "CR" mlffi ~q~~c:4 cf.'J ~

R1lfrl ~ 3~ !1£1 cfi" ~, ftl'fi.-ll ~ cfiT 40 % ~ ~

"CR" ~ ~
fcm::rr 71m ~ ~ ~ cfiT 12 5% ~,
~

c~) c1{1£1a1 ~ ~ cfiT 10% ~ ~~q'f ~ ~ cfiT ~

~7fml

(ll") ~ cfi" rn~·~( ~ ~ cfiT ~ cfi"R cfiT Pturq fRm 71m

~ 5% cfi" ~~q'f ~ Q~\H cfiT ~ cfiT HUTll

~
fRm
~ , rn~·iH R~+-tt!ti.-t ~ ~.i)f(~-<~ cfiT ~ ~ ~

20% ~ ~
c:-.
fcfim 71ml ~ ~ cfi·q~ ~ UTITTf St~cfi

~ ~fcMcl ~ cfi" ~~~ cfi" ~ ~ ~ 10 St~cfi

cfi" ~ "tf"OT
c:-.
~ ~Fcfctc1 ~ ~ ~ I cfi·q~ ~ llcR ~

.=tlc: ~ (co), (~), (ll") ~ ~ ~ ~ ~ allcl!tllcfi

~ !,f(tjf?c4f ch18f4 i

2. The following are the extracts of the Trial Balance of

ALOE VERA & WHITE PETHA LTD. as at 31st
March, 2022 :

P .T.O .
 681 1.0
(~ in lakh)
Particulars .
1920
Revenue from Operations

l 5 lokh ,10% Tata Steel Debentures of ~ 1oo each, ~ 80 paid up

1200

56
Net Loss on Sale of Investments

60
Rent received

Expenses other than Interest (including Rent Collection Expenses ~ 4 lakh) 348

160 lakh Equity Shares of ~ 10 each fully paid up 1600

40 lakh Equity Shares of ~ 10 each , ~ 7.50 paid up 300

16 lakh 10% Pref. Shares of ~ 100 each fu lly paid up 1600

12%, 8,00,000 Debentures of ~ 100 each fully paid up (issued on 01.04.2020) 800

General Reserve (as at 01.94.2021) 60

P & L Ne (Dr.)(as at 01.04.2021) 4

\ Employees Stock Option Outstanding Ne 40

) Debenture Redemption Reserve 80

As on 01.04.2021, Dividends on Preference Shares

were in arrears for 2 years for 2019-2020 and 2020-
2021.On 31 .03.2022, dividends (including Equity
Dividend @ 20%) were paid for which no accounting
effect has yet been given. The recon1mendations of
the company's Board of Directors include transfer ·to
General Reserve @ 5% and n1inimum required
transfer to Debenture Redemption Reserve as per The
Companies Act, 2013. Assume Corporate Tax 25%.
681 11

Required: Calculate Profit for the period and Bas ic

Earnings per Equity Share as per Statement of Profit
and Loss for the year ended 31st March, 2022 and
also Show the calculatio n of Reserves and Surplus .
(7+4+4= 15)

OR ALTERN ATIVE QUESTIO N

(a) Define Financial Statements as per The Companies

Act, 2013. (2)

(b) Write 'only one basic difference between each

of the following : (Ix4=4)

(i) Interim Dividend and Final Dividend

(ii) Quoted Investme nts and Unquoted

Investmen ts -

· (iii) Reserve and Reserve Fund

(iv) Bo.o k Building and Reverse Book Building

(c) Define an Operating Cycle and· Participat ing

Preferenc e Shares. (1 + 1=2)

(d) An item of income or expenditu re is to be

•' l L -

disclosed
., separately in tlie Financial Statements
a; per The Companie s Act, 2013 if its amount
exceeds 1% of the revenue from operations or
t 10,00,000, whichever is higher. Comment. ( 1)

P.T.O.
~]J. U l l i ■ .....» www
1

681 12

V nd er Th e Co mp an ies Ac t, 2013 "F re e Re se rv es "

( e)
s Pr em iu m Ac co un t.
do no t in cl ud e Se cu rit ie
(1)
Co mm en t.

ev ery co mp an y inc lud e

(f) Fi na nc ial St ate me nt s of
sh Fl ow St ate me nt as pe r Th e Co mp an ies Act,
Ca
(I)
20 13 . Co mm en t. ~

e fig ur es ap pe ar in g in the Fi na nc ial St ate me nt s

(g) Th
2013 ma y be ro un de d
as pe r Th e Co mp an ies Ac t,
ly if Tu rn ov er is mo re
of f to the ne ar es t cro res on
t. (1)
th an i 100 cro re. Commen

BH AR AT TU SH AR Lt d. pr ov id es yo u th e
(h)
following inf or ma tio n :
riod: 4 months, Work-
Raw material stock holding pe
2 mo nt hs , Fi ni sh ed
in -p ro gr es s ho ld in g pe rio d:
s, De bto rs co lle cti on
go od s ho ldi ng pe rio d: 3 month
pe rio d: 5 mo nth s
e the op er ati ng cy cle
Yo u are re qu ire d to co mp ut
er the fo llo wi ng sh ou ld
an d St ate with rea so n wh eth
se ts or No n- Cu rre nt
be di sc lo se d as Cu rre nt As
tie s or No n- Cu rre nt
As se ts or Cu rre nt Li ab ili
ili tie s in the Ba lan ce Sh ee t as at 31 st M ar ch ,
Li ab
20 22 as pe r Sc he du le III :

pe cte d re ali sa tio n

(i) W, a cu sto me r wh os e ex
da te is 30 th Ap ril , 20 23 .

__.,..,-,ne
681 13

(ii) X , a custo mer whose expec ted realis ation

date is 30th June , 2023.

(iii) Y, a suppl ier whose expec ted paym ent date

is 30th April, 2023.

(iv) Z, a suppl ier whose expec ted paym ent date

is 30th June, 2023. [1+(4x0.5)==3]
 .
681

~ 't,-i} ~ ctt· ~1th "'t f~~·11 \lfcTIU. 4 '""' ' tMQ •1H1t,., ,{,t
3TTml. 2 ~ , ~ 11r~ ffl~ cf.l 31tlfn· :-\ ~ , ~--rrrr,
~ 3TTffll: 5 ~ I

3Wm q~ lc-H ~ ~ 7rur;rr ~ cffl' 3rl8ll ~ ~

t 3ft°{ cfiRUT ~ ~ ~ chlh114 ~ "EflfT 3t:j\-ill 111 ~
~ ~--ii'cfi 31 ~ , 2022 "cfiT ~tir e~ f.-l~f~f~qi-f
"cfiT ~c:-- fNR=t "lfT ~ - ~
c:--
{14R=t "lfT qff'fH e-1c:: cfnn· -qr
¾ - qff'fH ~--iC::IRitl. ~ ~ ~ ~ ~ ~ itl ~ (? : -

. (i} ~ ~ -Oi6cfi R(ij~ ~~~ctr ~

~ 30 ffi", 2023 ti
(ii} ~ , ~ Ui6cfi ~ij~ ~ ~ ~ ctr ~
~ 30 ~
c:--
, 2023 ti
(iii} cnf, ~ ~ijcfil
3il'im=cfial ~~ktl--i ~ ~ ~

~ 30 ffi", 2023 t1

(iv} ~, ~ 311'ifBcfiffi ~ijcfil ~~k11--i ~ cfi1" ~

~ 30 ~
c:--
, 2023 t, •

3. From the follow ing extrac ts of the Balan ce She ets of

GING ER Ltd., Calcu late Net Cash Inflow from
Opera ting Activi ties after Tax to be disclosed in the
681 17

Cash Flow Statement as per AS-3 issued by f CAJ.

Particula rs 3 1.03.202 2 31 .03.202 1

?
,

Equity Share Capital of ~ 10 each 40,00,00 0 24 ,00 ,000

5% Preference Share Capital of ~ 100 each 8, 00,000 16,00 ,000

General Reserve 5,60,000 17,60,000

Profit and Loss Ale 26,08,000 (52 ,000)

Securities Premium 1,80,000 80 ,000

.
Capital Redemption Reserve 2,00,000 6,00,000

Employees Stock Option Outstand ing Ale / 3,40,000 2,00,000

I

14 % Debentm es 10,40,000 6,00,000 '

Short-term Borrowings (1 4% Bank Loan) 1,60,000 2,00,000

6,60,000 1,60,000
Trade Payables

1,60,000 80,000
Provision for Tax

66,00,000 52 ,80,000
Tangible Fixed Assets

Accumul ated Depreciation

. (15,20,000) (12,00,0 00)

84 ,000 40,000
Intangible Assets [Goodwill]

8,80,000 3,20,000
10% Current Investments

11 ,36,000 -
8% Fixed Deposit (Date of FD 1st Mar.,2022 maturing
on 31st May,2022)

4,00,000 4,00 .000

Cash at Bank

6,76,0u0 2, 16 ,000
Inventories
24,52,000 25 ,72,000
Trade Receivables

P.T .O.
681 18

Add itio nal Information :

(a) Div iden ds (inc ludi ng an Inte rim Div id end ~

35% )
wer e paid on 1st Apr il, 202 1.

(b) Dur ing the yea r a mac hine (hav ing accu ~u1 ated
Dep reci atio n) was sold for ~ 2,00 ,000 at a loss of
3 7 .5% . A full y dep reci ated mac hine was al so
disc arde d. Mac hine ry cost ing ~ 17,6 0,00 0 was
purc hase d for cash .

(c) On 1st Jan. , 202 2, Som e Cur rent Inve stm ents
cost ing ~ 8,00 ,000 wer e pur cha sed and Som e
Cur rent Inve stm ents wer e sold _at a prof it of 20%
on sale . New Deb entu res wer e issu ed and Bank
Loa n was repa id on the ·sam e date .

10
(d) On 1st May , 202 1, new Equ ity Sha res off
eac h wer e issu ed at a prem ium of 10% and
Pref eren ce Sha res wer e rede eme d at a prem ium
of 5%.

(e) On 01.0 1.20 22, the Bus ines s of Y Ltd. was

purc hase d for ~ 2,40 ,000 pay able in full y paid
equ ity s,h ares of~ 10 each at 20% prem ium . The
asse ts incl ude d Inv ento ries ~ 60,0 00. Trad e
Rec eiva bles f 40,0 00 and Mac hine f 1,20,000.
Trad e Pay able s off 60,0 00 wer e also take n over.
 -
681 19

( f) Tax provided during the year was ~ 1,20,000 . Bei ng

a prudent accountant, ensure minimum reducti on
in free reserves. ( 10)

OR ALTERNATIVE QUESTION

(a) From the following extracts of the Balance Sheets

of KACHCHI HALDI Lt~ ., Calculate· Cash Flow
from Investing Activities and Financing Activities
to be disclosed in the Cash Flow Statement as per
.
AS-3 issued by ICAI.

.
Particulars 31.03.2022 31.03.2021
~ ~

Equity Share Capital of ~ 10 each 40,00,000 24,00,000

5% Preference Share Capital of ~ 100 each 8,00,000 16,00,000

General Reserve 5,60,000 17,60,000

Profit and Loss Ale 26,08,000 (52,000)

Securities Premium 1,80,000 80,000

Capital Redemption Reserve 2,00,000 6,00 ,000

Employees Stock Option Outstanding Ale 3,40,000 2,00 ,000

14% Debentures 10,40,000 6,00 ,000

Short-term Borrowings (14% Bank Loan) 1,60 ,000 2, 00 ,000

P.T.O.
I

681 20

6,60,000 1,60,000
Trade Payables
80,000 . -
Unclaimed Dividend on Equity Shares
40,000 -
Ou tstand ing Interest on Debentures
20,000
Outstanding Underwriting Commission

1,60,000 80,000
Provision tor Tax

66,00,000 52,80,000
Tangible Fixed Assets

(15,20,000) (12,00 ,000)

Accumulated Depreciation

84,000 40,000
Intangible Assets [Goodwill]

8,80,000 3,20,000
10% Current Investments
- 8,000
Interest Accrued on Current Investments

11 ,36,00 0 -
8% Fixed Deposit (Date of FD 1st Mar., 2022
maturing on 31st May,2022)

5,32,000 4,00,000
Cash at Bank j

Inventories 6,76,0 00 2, 16,000

Trade Receivables 24,52 ,000 25,72 ,000

Add ition al Info rma tion :

(i) Div iden ds (inc ludi ng an Inte rim Div iden d

@ 35%) were paid on 1st Apr il, 2021.

(ii) Dur ing the yea r a mac hine (hav ing

accu mul ated Dep reci atio n) was sold for
f 2,00 ,000 at a loss of 37.5 %. A fully
depreciated machin.e was also dis card ed.
Mac hin e ry cos ting ~ 17 ,6 0 ,000 was
pu rc hase d fo r cas h.
681 21

(iii ) O n 1s t Jan. , 2 0 22, So m e C urr e n t

I n v e s t me_n t s c o s t i n g ? 8 , 0 0 , 0 0 0 w e r e
purc hase d and Some Curr ent Inves tm ents
were sold at a profi t of 20% on sale . New
Debe nture s were issue d and Bank Loan
. was repai d on the same date.

(iv) On 1st May , 2021 , new Equi ty Shar es of

? 10 each were issue d at a prem ium of
10% and Prefe rence Shar es were reqee med
at a prem ium of 5%.

(v) On 01.01 .2022 , the Busi ness of Y Ltd. was

purc hase d for ? 2,40, 000 paya ble in fully
paid equit y share s of ~ 10 each at 20%
prem ium. The asset s inclu ded I11ventories
~60,00 0. Trad e Rece ivabl es ~ 40 ,000 and
Mach ine ~ 1,20, 000. Trad e Paya bles of
·~ 60,00 0 were also taken over.

(vi) Tax prov ided duri ng the year was

~ 1,29, 000 (Incl uding tax @ 15% on short -

term capit al gain on Inves tmen ts). Bein g a

prud ent acco unta nt, ensu re m1n1 mum
redu ction in free reser ves . (9)

(b) If in the abov e Ques tion 3(a) Net Cash Flow from
Oper ating Activ ities befo re Tax is ? 36 ,40 ,000 ,
then calcu late Net Cash Flow from Oper ating
Activ ities after Tax. (I)

P.T. O .
 •

26
• 68 1
e
ex tra ct s fro m th e Ba la nc
4. (a ) Gi ve n be )o w ar e th e
t of SH EE NA Lt d. as at 31 st M ar ch , 20 22 :
Sh ee

~
Partioulars
8,00,000
~ 10 each
Equity Share Capital of
2,00,000
~ 100 each
8% Pref. Share Capital of
80,000
General Reserve
64,400
Profit & Loss Ale
20 ,000
Statutory Reserves
2,00,000
10% Debentures
5,60,000
Trade Payables
6,00,000
Tangible Assets
4,78,000
Goodwill
2,20,000
Inventories
2,60,000
Trade Receivables
3,66,400
Cash at Bank

EE NA Lt d. de ci de s to
Pr io r to ab so rp tio n, SH
e an d pa y eq ui ty di vi de nd @ 5% . Th e
de cl ar
si ne ss of SH EE N A Lt d. is ta ke n ov er by
bu
g
at da te on th e fo 1l ow in
BH AR AT Lt d. as on th
te rm s:
681 . 27

(a) 50% of Tang ible Fixe d Asse ts are take n over

at l 00% 1nore than the book valu e and the
rem ainin g Tang ible Fixe d Asse ts are take n
over at 20% less than the book valu e.

(b) Goo dwil l of SHE ENA Ltd. is to be valu ed at

i 2 , 10,0 00.

( c) Inve ntor ies are take n · over at book valu e less

I 0% and Trad e Rece ivab les are take n over
at book valu e subj ect to an allow ance of I 0%
to cove r doub tful debt s.

(d) Trad e Paya bles are to be take n over subj ect

to a dis•c ount of 5% and Unre cord ed Loan .
Liab ility of i ~ ,54,0 00 to be disc harg ed by

BHA RAT Ltd. at book valu e.

(e) The purc hase con side ratio n paya ble by

BHA RAT Ltd. was agre ed as follo ws:

(i) The issue of such an amo unt of fully paid

14% Deb entu res in BHA RAT Ltd at 96

P .T.O .

- ·• •u,,y Mlllt inl.o A.t.--.1

681 28

perc ent as is suff icie nt to disc harg e 10%

• Deb entu res in SHE ENA Ltd. at a prem ium
of 20 perc ent.

(ii) The issu e of such an ~mo unt of fully paid

I 0% Pref . Sha res in BHA RAT Ltd. at
125% as is suff icien t to disc harg e 8% Pref .
Sha res in SHE ENA Ltd. at a prem ium of
20% .

(iii) One Equ ity Shar e of ~ IO each , ~ 8 paid

up valu ed at ~ 15 per shar e for ever y two

Equ ity Sha res held in SHE ENA Ltd. and

the bala nce in cash . The mar ket valu e of
. an equ ity shar e of BHA RAT Ltd. at
pres ent is ~ 100.

(iv) Exp ense s of liqu idat ion of SHE ENA Ltd.

are to be reim burs ed by BHA RAT Ltd. to
the exte nt of ~ 40,0 00. Actu al Exp ense s
amo unte d to ~ 56,4 00.

Req uire d: Sho w the calc ulat ion and disc harg e of
Purc hase Con side ratio n. (6+ 3=9)
681 29

( b) Pass Journal Entries for the following transaction s

of NEEI\,f LTD :

(i) Conversio n of 8 lakh fully paid equity

shares of ( 10 each into Stock of ( 4,00,000
and balance as 12% fully Convertib le ·
Debenture s.

(ii) Consolida tion of 160 lakh fully paid equity

shares of ( 2. 5 0 each into .40 lakh fully
paid equity shares of ~ 10 each.

(iii) Sub-divisi on of 40 lakh fully paid 11 %

preference shares -0f ( ?-0 each into 200
lakh fully paid 11 % preference shares of
I

( 10 each.

(iv) Conversio n of 12% preference shares of

f 20,00,000 into 13% preference shares of
( I 2,00,000 and remaining balance as 14%
Non-cumu lative preference shares.
(I.5x4=6)

P.T.O.
 a. I

30

OR ALTE RNAT IVE QUEST IO N

(a ) TASH IKA T USHA R L td. provid e s you th e

fo llo w ing inform ation as at March 31, 2022:

Particulars (t in lakhs)

2000
Equity Shares of ~ 10 each
'
6% Cum- Pref. Shares of ~ 100 each 400

60
Profit and Loss Account (Dr)

10% First Debentures 240

10% Second Debentures 400

Debentu res l_nterest outstanding 64

Trade Creditors 660

Plant & Machine ry 2878.4

Note: Di vidend on Prefer ence Shares are m

arrear s for three ye ars.

The followi ng scheme of interna l reconst ruction

was approv ed and implem ented :
681 31

(i) All the equi ty shar es be conv erte d in to the

sam e num ber of equi ty shar e s of ~ 5 eac h,

~ 2 .50 paid up .

.:.
(ii) The pref eren ce shar es are conv erte d fr om

6% to 15% but reva lued in a man ner in

whi ch the tota l retu rn on them rem ain s
unaf fect ed. Fou r equi ty shar es of~ 5 each ,
~ 2.50 paid up to be issu ed for each ~ I 00
of arre ars of pref eren ce divi dend .

(iii) Mr. A hold s 10% first debe ntur es for ~ 160

lacs and I 0% seco nd debe ntur es for ~ 240
lacs . He is also a cred itor for ~ 40 lacs .
Mr. 'A' is to canc el ~ 240 lacs of his
tota l debt and to pay ~ 40 lacs to the
com pan y and to rece ive new 12 %
Deb entu res for the bala nce amo unt. Mr. B
hold s the rem aini ng I 0% first debe ntur es
and I 0% seco nd debe ntur es and is also a
cred itor for ~ 20 lacs . Mr. 'B' is to canc el
~ 120 lacs of his tota l debt and to acce pt
new 12% Deb entu res for the bala nce

amo unt

P.T .O.
681 32

(iv) Trade Creditors (other than A and B) are

given the option of either to accept
equity shares oft 5, t 2.50 paid up each ,
for the amount due to them or to
accept 80% of the amount due in cash.
40% Creditors accepted equity shares
whereas the balance accepted cash in full
settlement.

(v) Any surplus after writing off the vanous

losses should be utilized in writing down
the value of plant & machinery.

Required: Prepare Reconstruction Account.

( 12)

(b) Write any three differences between AS 14 and

Ind AS 103. (3)

(cf>) re-1t'cfi 31 ~ ' 2022 dcfi" ~ ~fit2s ct)-~ "fflc" ~

~ ~cROI ~ ~ ~ -g:
681 39

5. Giv en belo w are the extr acts from the Bal a nce
She ets of H Ltd. and S Ltd. as at 31st Ma r c h
2022 :

Partic ulars . H Ltd. S Ltd.

< <
.
Equity Share s of < 10 each 40,00,000 28,00 ,000

General Rese rve

24,00,000 25,62,000

Profit & Loss Ale

12,40,000 5,22,000

Loan from S Ltd. (including Interest) 50,40,000 -

Curre nt Liabil ities 29,20,000 40,00 ,000

Land & Build ing 24,00,000 10,80,000

Plant & Mach inery 8,00,000 14,80,000

Furniture & Fixtu res 16,00,000 10,80,000

Equity Share s in S Ltd. 20,40,000 -

15% Loan to H Ltd. (given on 01.06.2021) -
44,80,000

Current Asse ts 87,60,000 17,64,000

Add ition al Info rm? tion : (Ass ume that th e prof its
are even ly earn ed thro ugho ut the y ear and (gno re
taxe s)

P.T. O .