SRI VENKATESWARA UNIVERSITY

THREE YEAR B.COM DEGREE EXAMINATION, JAN – 2024 (Supplementary)

ADVANCED CORPORATE ACCOUNTING
Time: 3 Hours Max. Marks: 75

Section - A
Answer any Five of the following. Each question carries equal marks. (5x3=15)
1) Scope of Accounting Standards.
2) Accounting Standard 10
3) Purchase consideration
4) Define Amalgamation
5) What is meant by Internal reconstruction?
6) Voluntary liquidation.
7) Meaning of Secured creditors?
8) Define Holding company.
Section - B
Answer one question from each unit. Each question carries equal marks. (5×12 = 60)
UNIT-I
9) Define Accounting Standards? Write its significance.
OR
10) Write any 10 Indian accounting standards.
UNIT-II
11) Write different methods of Purchase Consideration.
OR
12) Following is the Balance Sheets of M Ltd. & N Ltd. as on 31-03-2023.

Liabilities M Ltd. N Ltd. Assets M Ltd. N Ltd.

Equity capital of ₹ 10 Land & Buildings 2,60,000 1,00,000
each 5,00,000 2,00,000 Plant 4,50,000 1,80,000
8% Pref. shares of ₹ 10 Furniture 80,000 40,000
each 2,00,000 1,00,000 Stock 1,50,000 60,000
General reserve 80,000 20,000 Debtors 1,00,000 60,000
Rebate Reserve 70,000 30,000 Cash at Bank 50,000 60,000
P & L A/C 1,00,000 50,000
10% Debentures of ₹
100 each 50,000 50,000
Creditors 40,000 30,000
Other current
Liabilities 50,000 20,000
10,90,000 5,00,000 10,90,000 5,00,000

M Ltd. takes over N Ltd. as on 31-03-23 on the following conditions

 To issue 20,000 equity shares of ₹ 10 each at ₹ 12.50 to equity shareholders of N Ltd.
 To issue 8% Preference Shares of ₹ 10 each to discharge the Preference Shares of N Ltd.
 To convert Debentures of N Ltd. into the equivalent number of 12% Debentures of M Ltd.
of ₹ 100 each.
 To maintain the Rebate Allowance of N Ltd. for two years.
 The fair value of plant is ₹ 1,50,000
Pass necessary journal entries in the books of N Ltd.
UNIT-III
13) What is meant by Capital Reduction? Write model entries for company internal reconstruction.
OR
14) Following is the Balance sheet of Lovely Ltd. as on 31-3-2023.

Liabilities ₹ Assets ₹
20,000 Equity shares of ₹ 10 each 2,00,000 Good will 5,000
8% Debentures 60,000 Buildings 20,000
Outstanding Debenture Interest 10,400 Machinery 30,000
Creditors 14,100 Furniture 8,000
Stock 25,000
Debtors 6.000
Bank 3000
Preliminary expenses 2,500
P & L A/C 1,85,000
2.84,500 2.84,500

Following is the scheme of reconstruction is followed.

 Equity shares are reduced by ₹ 90
 Debenture holders agreed to forego outstanding interest 8% debentures and then
converted into 10% Debentures.
 Creditors forgo their 50% of claim.
 Buildings are revalued ₹ 30,000; Machinery is written down to ₹ 20,000 Furniture to ₹
2,000.
Pass necessary journal entries for reconstruction.
UNIT-IV
15) Define liquidation? Write about different types of creditors.
OR
16) The light company went into liquidation with the following liabilities.
 Secured creditors ₹ 2,50,000 (Securities realised ₹ 3,00,000)
 Preferential creditors ₹ 70,000
 Unsecured creditors ₹ 3,10,000
 Liquidator expenses ₹ 3,000
 Liquidator’s remuneration 2% on the amounts realised.
Prepare liquidators final statement of account.
UNIT-V
17) How can you prepare consolidated Balance sheet in Holding companies.
OR
18) The following is the Balance sheet of P Ltd. and its Subsidiary Q Ltd. as on31-3-2023

Liabilities P Ltd. Q Ltd. Assets P Ltd. Q Ltd.

Equity capital of ₹ 10 4,500 shares in
each 70,000 50,000 Q Ltd. 60,000 -
Sundry creditors 50,000 2,5000 Various assets 85,000 90,000
P & L A/C 25,000 15,000
145.000 90.000 145.000 90.000
Prepare Consolidated Balance Sheet.