DuratioDer/

peTSubject Code: 44801 / Financial Accounting - V(Rev-2018)

Márks: 75
Note: (a) All questions are compulsory and carry 15 marks each
(b) Working notes should form part of your answer
(c) Use of simple calculator is allowed.

Q.1. A. Choose the correct alternative and rewrite the

1 When all the shares are underwritten by the statements.(Any Eight) [O8]
underwriters, it is called
a. Fin underwriting
b. Partial underwriting
c. Complete underwriting
d. None of the above
2 Equity Shares can be bought back
a. out of profits only
b. outof proceeds of fresh issue only
C out of capital profit only
d. its free reserves; or the securities premium account; or the proceeds of
shares
3 According to Companies Act the underwriting commission on shares should
not exceed
a. 5 per cent
b. 2.5 per cent
C 10 per cent
d. l per cent
4 If the business of an existing company BKC Ltd. is
taken over by an existing
company PQR Ltd., it is called
a external reconstruction
b. internal reconstruction
C. absorption
d. amalgamation
5 A company may purchase its own shares out of
a. Its free reserve only
b. The securities premium account only
C. the proceeds of any shares only
d. any or all of the above
6. Surrender of fully paid up shares amounts to
a. Reduction of Share Capital
b. Alteration of Share Capital
c. Variation of Shareholders Rights
d.Compromise or Arrangement
7. Accounting for amalgamation by way of merger is governed by
a. Accounting Standard 1
b. Accounting Standard 13
C. Accounting Standard 14
d. None of the above

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Amount of Calls in Advance is treated as
a. Secured Creditors
b. Assets not specifically pledged
C. Preferential Creditors
d. Unsecured Creditors
9 A contributory is a
a. Unsecured creditors
b. Preferentialcreditors
C. Shareholder
d. Debenture holder
10. In internal
Reconstruction
a. No Company is Liquidated
b. only one company goes into Liquidation
C. two or more companies are Liquidated
d. One ormore companies go into
Liquidation
B State whether the following is True or False: (Any Seven) [07]
1. Market applications are also known as Direct
Applications.
2. Absorption is said to take place when an existing company takes over
one or more existing companies.
3. A company is allowed to convert its fully paid shares into stock.
4. The balance in security premium account cannot be transferred to capital
reduction account.
5. In statement of affairs, payment to debenture holders is shown after the
payment to preferential creditors.
6. Capital reserve arises only when the amalgamation is in the nature of
merger'
7. Where a company completes a buy-back of its share, it shall not make a
rights issue of the same kind of shares within a period of six months.
8. A contributory can only be a present member of the liquidated
9. Capital redemption reserve account can be utilized for issuing company.
partly
paid bonus shares.
10. The underwriting commission is payable in cash.
Q.2. A. The following is the summary Balance Sheet of Rupa Ltd:
[15]
Liabilities Amount Assets Amount
Equity Share Capital 5,00,000 Intangible Assets 1,00,000
Statutory Reserves(to be 20,000 Fixed Assets 8,40,000
maintained for 3 more
years)
Debentures 2,00,000 Current Assets 2,20,000
Creditors 1,00,000 Profit & Loss A/c 1,60,000
13,20,000 13,20,000

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 Paper/$ubject Code: 44801 /Financial Accounting - V (Rev-2018)
Roop Ltd. absorb Rupa Ltd. on the following terms:
1) Roop Ltd. agreed to take over all the assets and liabilities.
2) The assets of Rupa Ltd. are to be considered to be worth Rs. 10,00,000.
3) The purchase price is to be paid one quarter in cash and the balance in
shares which are issued at the market price.
4) Liquidation expenses amounted to Rs. 600 agreed to be paid by Rupa
Ltd.
5) Market value of share of Rs. 10 each of Roop Ltd. is Rs. 12per share.
6) Debentures of Rupa Ltd. were paid.
7) The anmalgamation is in the nature of purchase.
You are required to show:
a) Purchase Consideration.
b) Ledger accounts in the books of Rupa Ltd.
c) Opening entries in the books of Roop Ltd.
OR
Q.2. B. Following are the Summary Balance Sheets of S Ltd. and H Ltd. [15]
Balance Sheet as on 31% March, 2017
Liabilities SLtd. H Ltd. Assets S Ltd. HLtd.
Equity share 7.50.000 4,50,000 | Building 2,50,000 1,55,000
Capital of Rs.
10 each
Export Profit 30,000 30,000 Machinery 3,25,000 1,70,000
Reserves
Profit & Loss 70.000 60,000 Stock 2,55,000 1,80,000
Alc
General 20,000 45,000 Debtors 90,000 1,00,000
Reserve
12% 50,000 30,000 Bank 70,000 55,000
Debentures of
Rs. 100 each
70,000 55,000 Share Issue 10,000
Sundry
creditors Expenses
9.90.000 6,70,000 9,90,0006,70,000
Z Ltd. was formed to acquire all assets and liabilities of S Ltd. and H Ltd. on
the following terms: divided
1) Z Ltd. tohave an authorized share capital of Rs. 50lakhs
into 50,000 equity shares of Rs. 100 each.
total
2) The businesses of both the companies were taken over for a
by Z Ltd. by issue of equity
price of Rs. 12 lakhs to be discharged
shares of Rs. 100 each at a premium of 20%.
the
3) The Shareholders ofS Ltd. and H Ltd. to get shares in Z Ltd. in
ratio of net assets values of their respective shares.
4) The debentures of both the companies to be converted into
equivalent number of 14% Debentures of Rs.100 each in Z Ltd. at a
discount of 10%.
5) All the tangible assets of both the companies are taken over by Z
Ltd. at book values except the following:
Assets S Ltd. H Ltd.
Building 2,80,000 1,82,000
3,15,000 1,60,000
Machinery
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 Paper /SubjectCreditors
Code: 44801/ Financial Accounting
of S Ltd. and HLtd. are takeH -over
V(Rey-20o0
at
and Rs. 50,000 respectively.
7) Statutory Reserves are to be maintained for 3 years more.
You are required to:
1) Compute purchase Consideration of S Ltd. and H Ltd.
2) Pass journal entries in the books of Z Ltd.
3) Prepare Balance Slhect after
method. amalgamation. Apply purchase
Q.3. A. The following is the Balance Sheet of
Anjali Ltd. which is in the hand of [15]
Liquidator.
Balance Sheet as at 31-12-2017
Liabilities Amount Assets Amount
Share Capital: Fixed Assets
1,000 6% Preference 2,00,000
shares of Rs.100 each, 1,00,000Stock 1,20,000
fully paid
2,000 Equity Shares of 2,00,000 Book Debts
Rs. 100 each, fully paid 2,40,000
2,000 Equity Shares of
Rs.100 each, Rs.75 1,50,000 Cash 40,000
paid
Loan from Bank (on
security of stock) 1,00,000 Profit and Loss 3,00,000
Trade Creditors
3.50,000
9.00.000 9,00,000
The assets realized thefollowing amounts (after all costs of realization and
liquidators remuneration amounting to Rs.5,000 paid out of cash in
Rs.40,000as per Balance Sheet): hand
Fixed ASsets Amount
Stock 1,68,000
Book Debts 1,10,000
Calls on partly paid shares were made but 2,30,000
found to be irrecoverable. the amount due on 200 shares
was
Prepare the Liquidators Final Statement of Account.
OR
0.3. B. Following is the Summary
Balance Sheet of Hetal Ltd.as on 3 1$March, 2018. [15)
Liabilities Rs. Assets
Share Capital: Goodwill
Rs.
80,000 Equity Share of Rs.5 4,00,000 Land 1,70,000
& 1,30,000
each fully paid
2,000 6% Cumulative Building
2,00,000 Equipments
Preference Shares of Rs. 100 1,25,000
each fullypaid
8% Debentures (Rs. 100 cach)
Bank Overdraft
2,00,000 Sundry Debtors 1,20,500
75,000 Stock
1,66,100
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 Paper/SubjectCode:
Sundry 44801/_Financial
Creditors (Including Rs. Accounting -V (Rev-2018)c
1,70,000 Investiment
10.000 interest due on Bank
Overdraft)
Cash at Bank 9.150
Profit & Loss 3,01,500
A/c
10,45,000 10,45,000
Preference dividend is in arrears for five years. Following scheme of
reconstruction was approved by the court.
I) Equity shares be reduced to Rs. 1.25 each and then to be consolidated
into shares of Rs. 10 cach.
2) 6% Preference Shares be reduced to Rs, 40 cach and then to be
subdivided into shares of Rs. 10 each.
3) Interest accrued but not due on 8% Debentures for half yearended 31"
March 2018 has not been provided in the above balance sheet. The
debenture holders have agreed to receive 40% of this interest in cash
immediately and provision for the balance be made in the books of
account.
4) Rs. 12,000 be paid to Preference Shareholders in lieu of arrears of
preference dividend.
5) The debenture holders have also agreed toaccept equal number of 9%
debentures of Rs.60 each in exchange of 8% debentures of Rs. 100
each.
6) Bank has agreed to take over 50% of stock in full settlement of its
claim including interest. The remaining stock be revalued at
Rs.60,000.
7) Investments be sold for Rs. 20,000.
8) Tangible fixed assets be appreciated by 20%. Goodwill be written off
in full and provision be made for doubtful debts of Rs. l0,000.
Give journal entries for the above scheme of reconstruction (without
narration), prepare Capital Reduction Account in the books of Hetal Ltd.
and Balance Sheet of the company after reconstruction.

Q.4. A Following is the Balance Sheet of M/s Amey Ltd. (a non-listed company) as [15]
on 31 March, 2012
Liabilities Amount Assets Amount
10,000 Equity Shares 10,00,000 Fixed Assets 20,00,000
of Rs. 100 each
5.000- 10% 5.00,000 Investments 1,00,000
Preference Shares of
Rs. 10 each
Securities Premium 2,00,000 Stock 2,50,000
General Reserve 2,00,000 Debtors 3,50,000
Profit and Loss A/c 1,00,000 Bank Balance 3,00,000
8% Debentures 6,00,000
Creditors 4,00,000
Total 30,00,000 Total 30,00,000
Itwas decided to buy back maximum number of Equity shares at the
maximum price possible under the law. Temporary bank overdraft was
arranged incase of shortage of funds.
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 V(Rev-2018)
Paper / Subject Code: 44801/ Financial Accounting
Yoûare requíred to: companycan buy
1) Ascertain maximum number of equity sharesthat
back.
2) Maximum price that the company can offer.
3) Pass journal entries in the books of M/s Amey Ltd.
4) Prepare Balance Sheet of M/s Amey Ltd. after buy back.
OR
made a public isSue 10 [I]
of Rs.5.00.000 Eauity shares of Rs. was
Q4. B. Samikanth Ltd. issue
each, the entire amount payable on application. The entire
underwritten as follows: A-30%, B-25% C- 25% and ID- 20% of thepublic
iSsue respectively. A, B, C and D has also agreed on firm underwriting of
16,000; 24,000; Nil and 60,000 shares respectively, The total subscriptions
excluding from underwriting, including marked applications were 3,60,000
shares. The marked applications received were as under:
Underwriter No. of Shares
A 96,000
B 80,000
48,000
D 96,000
Ascertain the net liability of each underwriter.
Q.5 A What are the contents of "Liquidator's Statement of Accounts"? How 08
Frequently does a liquidator has to submit such statement?
B Write distinguish between internal reconstruction and external 07
reconstruction.
OR
Q.s Write Short Notes (Any Three) 15
a) Preferential Creditors
b) Method of Internal Reconstruction
c) Net Assets Method
d) Benefits of Buy-Back
e) Firms Undertaking
**** ******** ** ***

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TyE
Time: 2 ½ Hours Marks: 75

AllQuestions are Compulsory

Q.1.a. State the Following Statement True or False: (Any 8) 8M

1. Two or More Companies combining to form a new company is called absorption.

2. Under Purchase method of Accounting for Amalgamation, Assets and Liabilities are taken at
Book Values.
3. Debit Balance of Realisation account is Profit which is transferred to Equity Shareholders A/c
under Amalgamation of companies.
4. Purchase Consideration means the amount paid by one company to another company in
consideration for the Assets and Liabilities taken.
5. The nature of External Reconstruction and Internal Reconstruction is same.

6. Approval of stakeholders is not required for Internal reconstruction.

7. Acompany is allowed to convert its fully paid shares into stock.
8. Underwriting o Shares and Debentures is not compulsory as per the companies Act, 2013.
9. Under Liquidation of Companies, the Preference Shareholders are paid last after payment to
all the other stakeholders
10. Post Buy back debt equity ratio should not exceed 1:2.
Q.1. b. Choose the correct option from the option provided and rewrite the statement:
(Any 7) 7M
1. Every buy back shall be completed within aperiod of
a) 6 months from the date of passing of the special resolution
b) 3months from the date of passing of the special resolution
c) 1year from the date of passing of the special resolution
d) 1month from the date of passing of the special resolution
2. Where a company purchases its own shares out of free reserve or securities premium, a sum should be
transferred to Capital Redemption Reserve which should be
a) equal tothe amount paid to the shareholder who sold his shares
b) equal to paid-up capital of the company
c) equal to the nominal value of shares so purchased
d) none of the above

3.The payment of commission to underwriter (s) is to be authorised by

a) The board of directors
b) The articles of association
c) The memorandum of association
d) The Stakehol ders of the company

4. Amerchant banker can act as a underwriter provided he holds a certificate granted by

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50.00
8 0%
.

1,50.0

a) Government of India
10%
I

b) Company Law Board

c) SEBI Ba

d) Registrar of Companies
5. Acompany after the completion of a buy back of its shares
a) Can not issue same kind of shares within one
year
b) Can not issue same kind of shares within 6 months
c) Can issue same kind of shares within 6
months
d) Can not issue bonus shares

6. Capital reduction scheme is worth considering

a) If the company is small
b) If the company has recovery prospects
c) If the company has no prospects.
d) If the company is less capitalized

7. The company must apply for an order confirming the reduction

a) To the Supreme Court
b) To the High Court
c) To the Tribunal
d) To the Liquidator

8. Liquidation of Companies the payment schedule is as

a) Liquidator expenses, Outsider Liabilities, Preferential Liabilities, Owners
b) Outsider Liabilities, Preferential Liabilities, Liquidator expenses, Owners
c) Liquidator expenses, Preferential Liabilities, Outsider Liabilities, Owners
d) Liquidator expenses, Outsider Liabilities, Owners, Preferential Liabilities

9. Investment Allowance Reserve is

a) Capital Reserve
b) Statutory Reserve
c) Revenue Reserve
d) All of the above

10. For calculating Purchase Consideration under AS - 14:

consideration
a) Only payment to equity shareholders are to be taken into
consideration
b) Only payment 1o shareholders are taken to into
c) Only payment to shareholders as well as debenture holders are taken to into consideration
consideration
d) Payment to All stakehol ders is taken into
suffered heavy losses and looks to
Q.2. a. ISPAT India Ltd. a company which deals in Iron & Steel has
balance sheet can be restructured and
restructure its Balance Sheet. It seeks your advice as to how the
made?
how the restructured Balance Sheet can be

15 M
From the below information are provided:

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50,000, 89% Preference Shares of Rs. 100each, Rs. 80 paid - up 4,00,000

|1,50,000 Equity shares of Rs. 10 each 15,00,000
10% Debentures 5,00,000
Bank Loan 5,00,000
Creditors 15,00,000
Cash Credits 2,50,000
Goodwill 1,00,000
Land 2,00,000
Plant & Machinery 12,00,000
Receivables: Good 5,00,000
Doubtful 30.000
Inventories 6,00,000
Preliminary Expenses 70,000
The scheme of restructure was put in place as:

1. Allthe partly paid shares were called up and paid by all the shareholders.
2. Preference shares were reduced by Rs. 40 per share &Equity Shares were reduced to Rs. 4per share.
3. Equity shares were split to Rs. 1per share post the above reduction.
4.Debenture holders agreed to reduce their claim by 40%if the the interest on Debentures was raised to
11%.

5. Land was appreciated to Rs. 6,00,000 whereas Plant &Machinery was depreciated by 40%.
6. The market value of Inventories was Rs. 4,50,000 and it was brought to that level.
7. Allthe fictitious, Intangible, doubtful and losses were to be written off
8. There was a claim against the company to the tùne of Rs. 1,50,000 Tecorded under the Creditors which
was settled by paying one-third of the amount due.
9. An unrecorded liability of Rs. 1,50,000 came to light of the company on verification and it was settled
by paying off Rs. 50,000.
10.The Directors of the company decided to sell 4,00,000 Equity Shares of the company at Rs. I per
share at par for the working capital needs of the company.
Allthe point put above were accepted. You are required to pass Journal entries and Prepare Revised
Balance Sheet.

OR

Q.2. b. IRCTC Ltd. a government company who files DRHP for its Initial Public Offer of 80,00,000
shares of Rs. 10each at Rs. 250 per share, appoints SBI Capital, Citibank Financial Services, JM
Financial Services &Morgan Stanley as its lead manager for the IPO in the ratio of 4:3:2:1.
The lead manager agreed to the Ratio and also took the following shares for themselves (Firm
underwriting).

SBICapital 2,00,000 shares

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1S. h a

A u t h

CITIBank Financial 1,00,000 shares 3,0

Is

JM Financial 1,00,000 shares

Morgan Stanley 1,00,000 shares

Was:
The Application bearing the stamp of lead manager. (Excluding the shares taken by them)
SBICapital 30,00,000 shares
CITIBank Financial 20,00,000 shares
JM Financial 10,00,000 shares
Morgan Stanley 5,00,000 shares
The Application bearing No stamp of the lead manager was 6,00,000 shares
the Net Liability ofUnderwriters
Prepare a statement of Underwriting of shares & also calculate
for a Commission to be paid @5% on Issue price of the shares.
15 M
Also Pass Journal Entries in context tothe Underwriters.

Q.3. a. Following is the balance sheet of M/s Sharp Ltd. as on 31 March, 2019: 15 M
Balance sheet of M/s Component Limited as at 314 March, 2019
Note Rs.
Particulars No.
A. EQUITY AND LIABILITIES
1. Shareholders' Funds: 25,00,000
1
a. Share Capital 2 37,50,000
b. Reserves & Surplus
C. Money Received against Share warrants
Pending allotment:
2. Share Application Money received
3. Non-Current Liabilities: 3 57,50,000
a. Long-Term Borrowings
4. Current Liabilities: 13,00,000
a. Short Term Borrowings 10,00,000
b. Trade Payables 10,00,000
Other Current Liabilities 1,53,00,000
C

Total
B.ASSETS
1. Non-Current Assets:
a. Fixed Assets 4 93,00,000
i Tangible Assets
b. Non-Current Investments
2. Current Assets: 10,00,000
a. Current Investments 10,00,000
b. Inventories 10,00,000
C.
Trade Receivables 30,00,000
1,53,00,000
d. Cash & Cash Equjvalents
Total

Notes of Accounts:

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1.Share Capital:
Authorised Capital:
3,00,000 Equity Shares of Rs. 10 each 30.00,000
Issued, Subscribed and paid up Capital:
2.50,000 Equity Shares of Rs. 10 each fully paid 25,00,000
2. Reserve & Surplus:
Revenue Reserve 30,00,000
Security Premium 5,00,000
Profit & Loss A/c
2,50,000
37,50,000
3. Long Term Borrowings:
Secured Loans:
12% Debentures
Unsecured Loans
37,50,000
20,00,000
57,50,000
Fixed Assets:
a. Tangible assets:
Land &Building 53,00,000
Plant &Machinery 30,00,000
Furniture & Fittings 10,00,000
93,00,000
The company wants to buy back 50,000 equity shares of RS.10 Each on 1 April, 2019 at RS. 20 per
share. Buy back of shares is duty authorised by its articles and necessary resolution passed by the
company towards this. The payment for buy back of shares will be made by the company out of sufficient
bank balance available.
Comment with your calculations, whether buy back of shares by company is within provisions of the
Companies Act, 2013. If yes, pass necessary journal entries towards buy back of shares and prepare a
Balance sheet aftera buyback of shares.
OR

Q.3 b. The following is the Balance Sheet of Suman Ltd. which is in the hand of Liquidator. 15 M
Balance Sheet as at 31-12-2019
Liabilities Rs. Assets Rs.
Share Capital: Fixed Assets 1,00,000
500 6% Preference shares of Rs.100 each, fully paid 50,000 Stock 60,000
1,000Equity Shares of Rs. 100 each, fully paid 1,00,000 Book Debts 1,20,000
3,000Equity Shares of Rs.50 each, Rs.25 paid 75,000 Cash 20,000
Loan from Bank (on security of stock) 50,000 Profit and Loss 1,50,000
Trade Creditors 1,75,000
4,50,000 4,50,000
The assets realized the following amounts (after all costs of realization and liquidators remuneration
amounting to Rs.3,000 paid out of cash in hand Rs.20,000 as per Balance Sheet):
Fixed Assets 84,000
Stock 55,000
Book Debts 1,15,000
Prepare the Liquidators Final Statement of Account.

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Q b
. 4
F .
.

Q.4. a. The Summarised Balance sheet of ALtd,

&BLtd. as at 1" April, 2019 are as 1011ows.
Balance Sheet of ALtd. &BLtd. 15 M
Particulars
A. EQUITY AND
Note
No.
A Ltd.
Rs. BLId.
RS,
LIABILITIES
1. Shareholders> Funds:
a. Share Capital:
Equity Shares of Rs. 10 each fully
11% Preference Shares of Rs. 10 paid 6,00,000 5,00,000
b. Reserves & Surplus each fully paid 3,00,000
Profit &Loss Alc
Reserves 2,00,000
2. Share
Application
3. Non-Current Money
Liabilities: received Pending allotment: 2,40,000
a.
Long-Term Borrowings - 12% Debentures
4. Current Liabilities:
1,00,000 2,00,000
Trade Payables
Total
Sundry Creditors
60,000 1,00,000
B. ASSETS
12,.00,000 11,00,000
1. Non-Current Assets:
b. Fixed Assets
i.
Tangible Assets
Plant &Machinery
2. Current Assets:
7,00,000 8,00,000
a. Inventories
b. Trade Receivables 2,00,000 60,000
Sundry Debtors
C.
Cash & Cash Equivalents 2,50,000 1,40,000
Cash at Bank
Total 50,000 1,00,000
The above two companies agree to 12,00,000 12,00,000
conditions: amalgamate and form a new company AB Ltd. n the following
A Ltd
1. For every 5 equity shares, 6
shares of AB Ltd. of Rs. 10each will be
2. Debenture holders will
issued 12% debentures of AB Ltd. of same issued at premium of 50%.
B Ltd. amount and denomination.
1. The holders of 11%
Preference shares will be allotted 4, 13% Preference shares of Rs. 10
AB Ltd. for every 5 shares held. each of
2. For every 5 equity shares 6 shares of
AB Ltd. of Rs. 10 each will be
issued 12% debentures of AB Ltd. of sameissued
3. Debenture holders will be at premium of 50%.
4. Creditors worth Rs. 10,000 in the balance amount and denomination.
sheet of Altd are from the goods purchased by B Ltd.
You are required to show:
1. The calculation of purchase consideration
2. Journal Entries in the books of AB Ltd. under
Purchase method
3.Opening Balance sheet of AB Ltd.
OR

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Q4. b. Following is the summarised balance sheet of Hexza Ltd. as at 31 March, 2019:
Balance sheet as at 31s March, 2019 15 M
|Particulars Note Rs.
No.
A. EQUITY AND LIABILITIES
1. Shareholders' Funds:
a. Share Capital 60,00,000
b. Reserves & Surplus
General Reserve 12,00,000
Profit & Loss A/c 15,20,000
Workmen profit sharing fund 6,00,000
2. Share Application Money received Pending allotment:
3. Non-Current Liabilities:
4. Current Liabilities:
a. Trade Payables
Creditors 8,00,000
Total 1,01,20,000
B. ASSETS
1. Non-Current Assets:
a. Fixed Assets
1. Tangible Assets
Building 14,00,000
Plant & Machinery 26,00,000
ii Intangible assets
Goodwill 16,00,000
2. Current Assets:
a. Inventories 14,00,000
b. Trade Receivables
Sundry Debtors 18,00,000
C. Cash & Cash Equivalents
Cash at Bank 13,20,000
Total 1,01,20,000
Penta Ltd decided to absorb the business of Hexza Ltd. on 1% April, 2019 at the respective book value of
assets and trade liabilities except building which was valued at Rs, 24,00,000 and Plant & machinery at
Rs, 20,00,000.
Purchase consideration was payable as follows:
1.Payment of Liquidation Expenses Rs. 10,000.
2. Issue of Equity shares of Rs. 10 each fully paid at Rs. 11 per share for every Preference shares and
every Equity share of Hexza Ltd. and a payment of Rs. 4 per Equity share in cash.
3. Sundry Creditors of Hexza Ltd worth Rs. 1,00,000 were due to Penta Ltd.
4. Inventories worth Rs. 1,20,000 of Hexza Ltd was the unsold stock purchase from Penta Ltd on which
the company charges profit of 20% on Sales.
Calculate the Purchase consideration, show the necessary ledger accounts in the books of Hexza
Ltd. and opening Journal Entries in the books of Penta Ltd.

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8m
Q.5. a. Give the methods under which Purchase Consideration are calculated.
Q.5. b. Give the conditions laid down for Buy Back of Equity Shares under Companies
7m
Act, 2013.

OR
15 m
Q.5. c. Short Notes (Any 3)
1. Capital Reduction Alc
2. Firm Underwriting
3. Liquidation of Companies
Debentures
4. Underwriters Commission under underwriting of Shares and
5. Types of Amalgamation

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