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UG–707 BCO–6

B.Com. DEGREE EXAMINATION –

JUNE, 2009.
Second Year
(AY 2003–04 and CY 2004 batches only)
CORPORATE ACCOUNTING
Time : 3 hours Maximum marks : 75

SECTION A — (3 × 5 = 15 marks)
Answer any THREE questions.

1. Mention the different types of shares.

£[SPÎ ß £À÷ÁÖÁø PPø ÍUSÔ¨ ¤kP.

2. What are the factors that determine the value of

good will?
ÁoP |Øö £¯º©v¨ ¦ PnUQkø P° À P¸zvÀ Gkzx U
ö PõÒÐ ® PõµoPÒ ¯õø Á?

3. How profit is ascertained in the Life Insurance

Company Accounts?
B ² Ò Põ¨ ¥m
k {Ö© PnUSPÎ À C »õ£® GÆÁõÖ
PnUQh¨ £kQÓx ?
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4. The revenue account of Priya Insurance Company at

the end of the year 2008 shows Rs. 48,78,000 before
taking into account the following items :
(a) Claims intimated but not admitted
Rs. 65,000.
(b) Bonus utilised in reduction of Life Insurance
Premium Rs. 6,500.
(c) Interest accrued on securities Rs. 19,500.
(d) Outstanding premium Rs. 18,000.
(e) Claims covered under reinsurance
Rs. 27,000.
Show the funds at the end of the year 2008 after
making the above adjustments.
¤›¯õ B ² Ò Põ¨ ¥m
k P®ö £Û° ß 2008–® B s iØS›¯
Á¸Áõ´ PnUS ¹. 48,7 8,000–I Põs ¤UQÓx . C zö uõø P
RÌ SÔ¨ ¤k® |hÁiUø PPø Í P¸zvØ ö PõÒÍõ©À C ¸
¢uuØS •¢ø u¯ {ø »ø © B S®.
( A) ö u›Â UP¨ £m h B ÚõÀ AÝ ©vUP¨ £hõu E›ø ©U
÷Põ›Uø PPÒ ¹.6 5 ,000.
( B ) B ²Ò Põ¨ ¥m
kU Pm hnzvØS GvµõP
£¯ß £kzu¨ £m
h ÷©¿ v¯zö uõø P ¹.6 ,5 00.
( C ) •u½m k¨ £zvµ[PÎ ß «uõÚ Ám
i £õUQ
¹.19 ,5 00.
( D) {¾ø Á° ¾ÒÍ Põ¨ ¥m
kUPm
hn®¹.18,000.

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( E) ©Ö Põ¨ ¥m kU RÌ ö Põs kÁµ¨ £m

h E›ø ©U
÷Põ›Uø PPÒ ¹.27 ,000.
C ¢u |hÁiUø PPø Í Em £kzv¯uØS ¤ß
{ÖÁÚzvß {v{ø » 2008–® B s iØS GÆÁõÖC ¸US®
Gß £uø Ú Põs ¤UP.

5. The following particulars relate to a limited

company which has gone into voluntary liquidation. You
are required to prepare liquidator’s final account
allowing for his remuneration @ 2% on the amount
realised on assets and 2% on the amount distributed
among unsecured creditors other than preferential
creditors.
Preferential creditors – Rs. 10,000; unsecured creditors
– Rs. 32,000; 8% debentures – Rs. 10,000.
The assets realised the following : Land –
Rs. 20,000; Plant – Rs. 18,650; Furniture – Rs. 1,000.
The luquidation expenses amounted to Rs. 1,000.
uß Â ¸¨ £U Pø »¨ ¤À EÒÍ J¸ Áø µ¯ÖUP¨ £m h
{Ö©zvß Â Áµ[PÒ ¤ß Á¸©õÖ. AÁ¸US ö \õzx UPÒ
 أø Ú° À 2% F v¯•®, •ß Ý ›ø © PhÛ¢÷uõº
u ºzx ¤ø n¯©ØÓ PhÜ ¢÷uõ¸US AÎ zu ö uõø P° À
2% F v¯•® AÎ UP¨ £h ÷Ás k®.Pø »¨ £õÍ›ß C ÖvU
PnUø P u¯õºö \´P.

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•ß Ý ›ø © PhÜ ¢÷uõº– ¹. 10,000; ¤ø n¯©ØÓ PhÜ

¢÷uõº–¹.32,000,8%Phß £zvµ® –¹.10,000.
ö \õzx UPÒ RÌUPs hÁõÖ Â ØP¨ £m hÚ : {»® –
¹.20,000; ö £õÔ –¹.18,6 5 0; ©ø Úzx ø n¨ ö £õ¸Ò –¹.
1,000; Pø »¨ ¦aö \»Ä PÒ –¹.1,000 B Úx .

SECTION B — (4 × 15 = 60 marks)

Answer any FOUR questions.

6. What is liquidation? Explain the various modes of

liquidating a company.
{Ö©U Pø »¨ ¦ Gß ÓõÀ Gß Ú? {Ö©U Pø »¨ ¤ß £À÷ÁÖ
•ø ÓPø Í Â ÍUSP.

7. What is profit prior to and after incorporation?

Explain the methods of its calculation and treatment in
the books of account.
£v ØS •ß ©ØÖ® ¤ß Dm h¨ £mh C »õ£® Gß ÓõÀ
Gß Ú? Auø ÚU PnUQk® •ø Óø ¯² ®, PnUQ¯À
HkPÎ Àø P¯õÐ ®•ø Óø ¯² ®  ÍUSP.

8. ‘A’ Ltd. issued a prospectus inviting applications for

10,000 shares of Rs. 10 each at a premium of Rs. 2 each
payable as follows :
On application Rs. 2, on allotment Rs. 5 (including
premium), on first call Rs. 3 and on final call Rs. 2.

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Applications were received for 15,000 shares and

allotment was made on pro-rata basis to the applicants
of 12,000 shares. Money overpaid on application was
employed on account of sums due on allotment.
Anish to whom 200 shares were allotted failed to pay
the allotment money and on his subsequent failure to
pay the first call money, his shares were forfeited.
Chakravarthy, the holder of 300 shares failed to pay the
two calls and his shares were forfeited after the final
call.
Of the shares forfeited, 400 shares were sold to vasan
credited as fully paid for Rs. 9 per share, the whole of
Anish’s shares being included.
Pass journal entries in the books of ‘A’ Ltd.
‘A’ ¼ª ö hmuPÁ»ÔUø P Áõ° »õP 10,000 £[SPø Í J¸
£[S •P©v¨ ¦ ¹. 10. Auß •ø Ú©zö uõø P ¹. 2 GÚ
hx . Â s n¨ £® ¹. 2; Jx URk ¹. 5
ö ÁÎ ° h¨ £m
( •ø Ú©® Em £h) •uÀ Aø Ǩ ¦ ¹. 3, C Öv Aø Ǩ ¦ ¹.
2.
15 ,000 Â s n¨ £[PÒ ö £Ó¨ £m
k  Quõa \õµ
Ai¨ £ø h° À12,000 Â s n¨ £[PÐ US £[SPÒ Jx URk
ö \´¯¨ £m hx .  s n¨ £zvÀ ö £Ó¨ £mh ª ø Pzö uõø P
Jx URm iÀ\›ö \´¯¨ £m hx .
AÜ è Gß QÓ |£¸US 200 £[SPÒ Jx UP¨ £m
hx .B ÚõÀ
AÁº Jx URm kz ö uõø P Auß ¤ÓS •uÀ Aø Ǩ ¦z
ö uõø P ö \¾zuõu PõµnzvÚõÀ, AÁµx £[SPÒ
JÖ¨ ¤Ç¨ ¦ ö \´¯¨ £m hx .

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\UPµÁºzv Gß QÓ |£›h® 300 £[SPÒ EÒÍÚ. B ÚõÀ

AÁº C µs k Aø Ǩ ¦z ö uõø PPø Ͳ ® ö \¾zuz
uÁÔ¯uõÀ C Öv Aø Ǩ ¤ØS ¤ÓS AÁµx £[SPÒ
JÖ¨ ¤Ç¨ ¦ ö \´¯¨ £m
hx .
JÖ¨ ¤Ç¨ ¦ ö \´¨ £m h £[SPÎ À 400 £[SPÒ Áõ\ß
Gß £Á›h® J¸ £[S ¹. 9 Ãu® ( •Ê ø ©¯õP
ö \¾zu¨ £mhx ) Â ØP¨ £m
hx . C vÀ Ap è C hª ¸¢x
JÖ¨ ¤Ç¨ ¦ ö \´u £[SPÒ •Ê Áx ®Ah[S®.
A {Ö© HkPÎ ÀSÔ¨ ÷£m
k¨ £vÄ Pø Ízu¸P.

9. From the following particulars Prepare profit and

loss account of Durga Bank for the year 2008 :
Rs.
Rent and Rates 7,20,000
Directors and Auditors Fees 1,68,000
Postage and Telegrams 56,000
Sundry Charges 68,000
Interest on Fixed Deposit 1,10,00,000
Salaries 21,60,000
Commission charged to customers 3,30,000
Discount on Bills receivable 78,00,000
Interest on cash credits 89,20,000
Interest on current account 16,80,000
Interest on Bank overdrafts 21,60,000

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Rs.
Interest on savings bank deposits 27,20,000
Printing 1,16,000
Interest on loans 1,03,80,000
Rebate on bills discounted
(at the end of the year) 19,60,000

¤ß Á¸®  Áµ[PÎ ¼¸¢x x º Põ Á[Q° ß 2008–®

B s iØPõÚ C »õ£ |m
hUPnUø P u¯õºö \´P.
¹.
Áõhø P ©ØÖ® Á› 7,20,000
C ¯US|º©ØÖ® uoUø P¯ºPm
hn® 1,68,000
Ag \»P ©ØÖ® u¢vaö \»Ä PÒ 56,000
£Ø£» ö \»Ä PÒ 68,000
{ø » ø Á¨ ¤ß «x Ám
i 1,10,00,000
\®£Í® 21,60,000
ÁõiUø P¯õͺ«x uµS GÊ u¨ £m
hx 3,30,000
ö £ÖuØS›¯ ©õØÖa
^miß «x Ám
h® 78,00,000
ö µõUPUPhß «x Ám
i 89,20,000
|h¨ ¦UPnUQß «x Ám
i 16,80,000
Á[Q ÷©ÀÁø µ¨ £ØÔß «x Ám
i 21,60,000
÷\ª ¨ ¦ Á[Q ø Á¨ ¤ß «x Ám
i 27,20,000

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¹.
Aa
_¨ ö £õ¸Ò 1,16,000
Phß «x Ám
i 1,03,80,000
Ám h®ö \´u ©õØÖa^
m iÀuÒÐ £i
( B s iÖv° À) 19,60,000

10. ‘X’ Ltd., and ‘Y’ Ltd. agree to amalgate as from 31st
December 2008 on which date their respective balance
sheet were as follows :
Liabilities A B Assets A B
Rs. Rs. Rs. Rs.
Share capital Cash in 100 50
hand
80,000 shares of Cash at
Re. 1 each 80,000 – bank 3,400 450
25,000 shares of Sundry
Re. 1 each – 25,000 debtors 22,500 6,000
Sundry creditors 3,000 1,000 Plant 12,000 4,500
Reserves 7,500 4,000 Stock 15,000 7,000
Profit & Loss A/c 2,500 1,000 Premises 30,000 10,000
Patents 10,000 3,000
93,000 31,000 93,000 31,000

Draw up the balance sheet of the new company

X and Y Ltd., which was incorporated to take over
amalgamated concerns and state the number of shares
in the new company which will be allotted to the share
holders of the old company.

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‘X’ ©ØÖ® ‘Y’ Gß Ó C ¸ Áø µ¯Ö {Ö©[PÒ

i\®£º31 2008 •uÀ J¸[Qø n¨ ¦ ö \´¯ wº©õÛzuß Ö
AÁº PÍx C ¸¨ ¦ {ø »USÔ¨ ¦ RÌUPs hÁõÖEÒÍx .
ö £õÖ¨ ¦PÒ A B ö \õzx UPÒ A B
¹. ¹. ¹. ¹.
£[S ‰ »uÚ®: ø P° ¸¨ ¦ ö µõUP® 100 50
80,000 £[SPÒ Á[Q° ¸¨ ¦
Jß Ö¹.1 Ãu® 80,000 – ö µõUP® 3,400 450
25 ,000 £[SPÒ £Ø£»
Jß Ö¹.1 Ãu® – 25,000 PhÚõÎ PÒ 22,500 6,000
£Ø£» PhÜ ¢÷uõº 3,000 1,000 ö £õÔ 12,000 4,500
Põ¨ ¦ {v 7,500 4,000 \µUQ¸¨ ¦ 15,000 7,000
C »õ£ |m
hU ÁÍõP® 30,000 10,000
PnUS 2,500 1,000 £v¨ ¦›ø © 10,000 3,000
93,000 31,000 93,000 31,000

¦vuõP E¸ÁõUP¨ £m h X ©ØÖ® Y Áø µ¯Ö {ÖÁÚzvß

C ¸¨ ¦{ø »U SÔ¨ ¦ u¯õ›UP. £ø ǯ {ÖÁÚ[PÐ US¨
¦v¯ {ÖÁÚzvÀ £[SPÒ GÆÁõÖ Jx UP¨ £k® Gß Ó
 £µzvø Ú² ® u¯õ›zx AÎ UP.

11. Priya Ltd. went into voluntary liquidation on

1.4.2008. The following balances are taken from its
books on that date :
Rs. Rs.
Capital : Buildings 1,50,000
5,000 equity shares Plant and machinery 2,10,000
of Rs. 10 each 5,00,000 Stock in-trade 95,000

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Rs. Rs.
Debentures 2,00,000 Book debts 75,000
Bank overdraft 30,000 Less:Provisions 10,000 65,000
Creditors 40,000 Calls in arrears 1,00,000
Cash 10,000
Profit & Loss A/C 1,40,000
7,70,000 7,70,000

Plant and Machinery and buildings are valued at Rs.

1,50,000 and Rs. 1,20,000 respectively. On realisation
losses of Rs. 15,000 on stock. Book debts realised Rs.
70,000. Calls in arrears are expected to realise 90%.
Bank over draft is secured against building, preferential
creditors for Taxes and wages are Rs. 6,000 and
miscellaneous expenses are outstanding to the extent of
Rs. 2,000.
Prepare a statement of affairs to be submitted to the
meeting of creditors.
¤›¯õ ¼ª ö hm1.4.2008 Aß Ö uß Ûa ø \¯õP Pø »¢ux .
RÌUPõq ® C ¸¨ ¦PÒ 1.4.2008 Aß Ö AÁµx H kPÎ ¼¸
¢x GkUP¨ £mhÚ.
¹. ¹.
•uÀ: Pm
ih® 1,50,000
5 0,000 \©E›ø ©¨ ö £õÔ ©ØÖ®C ¯¢vµ® 2,10,000
£[SPÒ ¹.10 Ãu® 5,00,000 \µUQ¸¨ ¦ 95,000
Phß £zvµ[PÒ 2,00,000 HmkUPhß PÒ 7 5 ,000
Á[Q ÷©ÀÁø µ¨ £ØÖ 30,000 PÈ : Jx URk 10,000 65,000
PhÜ ¢÷uõº
PÒ 40,000 Aø Ǩ ¦ {¾ø Á 1,00,000

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¹. ¹.
ö µõUP® 10,000
C »õ£ |m
hUP/S 1,40,000
7,70,000 7,70,000

ö £õÔ ©ØÖ® C ¯¢vµ® ©ØÖ® Pm ih® B Q¯ø ÁPÒ

•ø Ó÷¯ ¹. 1,5 0,000 ©ØÖ® ¹. 1,20,000 GÚ
©v¨ ¤h¨ £m hÚ. Á`¼US® ÷£õx ¹. 15 ,000 \µUQ¸¨ ¤À
|m h®. H mkUPhß PÒ Á`»õÚx ¹. 7 0,000. Aø Ǩ ¦
{¾ø Á 9 0% Á`»õS® GÚ Gvº £õºUP¨ £m hx . Á[Q
÷©ÀÁø µ¨ £ØÖ Pm ihzvß «x ¤ø n¯® ö £Ó¨ £m hx .
Á› ©ØÖ® T ¼ \®£¢u¨ £m h •ß Ý ›ø © PhÜ ¢÷uõºPÒ
¹. 6 ,000 ©ØÖ® C uµaö \»Ä PÒ {¾ø Á ¹. 2,000. PhÜ
¢÷uõº PÒ T mhzvØSa\©º ¤US® {v {ø » AÔUø Pø ¯z
u¯õºö \´P.

12. Following are the details related to Vijaya Flour

Mills Co. Ltd. as on 31st March 2009.
Rs.
Share capital (authorised and
issued Rs. 10 per share) 12,00,000
General Reserve 5,00,000
Unclaimed dividend 13,052
Creditors 73,716
Building 2,00,000
Purchases 10,01,806
Sales 19,67,894
Manufacturing Expenses 7,18,000

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Rs.
Administration Expenses 53,628
General Expenses 62,156
Machinery 4,00,000
Motor Van 30,000
Furniture 10,000
Opening Stock 3,44,116
Sundry Debtors 3,14,760
Investments 5,77,900
Cash balance 1,34,480
Director’s fees 3,600
Interim dividend 30,000
Interest received 17,088
P & L A/C (1.4.2008) (Credit) 33,696
Staff provident fund 75,000
Adjustments :
(a) Closing stock on 31.3.2009 was Rs. 2,97,360.
(b) Depreciate building Rs. 20,000; Manager’s
commission due Rs. 13,000 and contribution to staff
provident fund to be provided Rs. 3,000 and
(c) Interest accrued on Investments Rs. 5,500.
Prepare Final accounts of the company for the
year ended 31.3.2009.

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RÌUPõq ®  £µ[PÒ 31.3.2009 •i¯  á¯õ ¤ÍÁºª Àì

P®ö £Û ¼ª ö hmiß HkPÎ ¼¸¢x GkUP¨ £m hx .
¹.
£[S •uÀ( A[RP›UP¨ £m h ©ØÖ®
ö ÁÎ ° h¨ £m
hx J¸ £[S ¹.10 12,00,000
Ãu®)
ö £õx UPõ¨ ¦ 5,00,000
÷Põµ ÷Ás i¯ £[Põuõ¯® 13,052
PhÜ ¢÷uõº
PÒ 73,716
Pm
ih® 2,00,000
ö PõÒ•uÀ 10,01,806
 أø Ú 19,67,894
EØ£zvaö \»Ä PÒ 7,18,000
{º
ÁõPaö \»Ä PÒ 53,628
ö £õx aö \»Ä PÒ 62,156
C ¯¢vµ® 4,00,000
E¢x Ás i 30,000
Aø ÓP»ß 10,000
B µ®£a\µUQ¸¨ ¦ 3,44,116
£ØP» PhÚõÎ PÒ 3,14,760
•u½kPÒ 5,77,900

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¹.
ö µõUP C ¸¨ ¦ 1,34,480
C ¯US|ºPm
hn® 3,600
C ø hUPõ» £[Põuõ¯® 30,000
ö £ØÓ Ám
i 17,088
C »õ£ |m
h P/S ( 1.4.2008) ( 絀 ) 33,696
÷Áø »¯õm
PÎ ß ÷\©|»{v 75,000

kuÀPÒ :
\›UPm
( A) 31.3.09 Aß ÖC Öv \µUQ¸¨ ¦ ¹.2,9 7 ,36 0.
( B ) Pm
ihzvß «x ÷u´©õÚ® ¹. 20,000. ÷©»õ͸US
ö Põk£h ÷Ás i¯ PÈÄ ¹. 13,000 ©ØÖ®
÷Áø »¯õm PÎ ß ÷\©|» {vUS ö \¾zu ÷Ás i¯ ö uõø P
¹.3,000.
( C) •u½kPÎ ß «uõÚ Ám
i{¾ø Á ¹.5 ,5 00
{Ö©zvß C ÖvUPnUSPø Í 31.3.09 •i¯ u¯õ›UP.

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