45 Corporate Accounting March 2023 TTM
45 Corporate Accounting March 2023 TTM
45 Corporate Accounting March 2023 TTM
A - 20000 shares, B - 1 5000 shares, C - 5000 shares and D - 1 0000 shares. The
company received applications for 45000 shares of which marked applications
were as follows :
A = 22000 shares ; B = 1 1000 shares, C = 1000 shares and D = 9000 shares.
Determine the net liability of each underwriter.
3. Prashanth Limited agreed to purchase the business of a sole trader and for that
purpose goodwill is to be valued at 3 years purchase of the average of previous
4 years adjusted profits.
The profits for the year ending 31't March 2019 ;2020;2021 ;2022 were as
follows :
t 80,000, { 1,00,000, { 96,000 and t 1,20,000.
Following additional information is available :
a) Annual management expenses { 9,600.
b) Provide insurance premium at { 400 p.a.
Compute the value of Goodwill.
P.T.O.
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5. The Vasu Company Ltd. issued 10000 shares of t 10 each. The public
subscribed for 8000 shares and were fully allotted. The amount of each shares
was payable as under:
1) t 2 per share on applications.
2) T 3 per share on allotment.
3) t 2 per share on first call
4) T 3 per share on final call.
All the calls were made and the money was duly received except first call on
500 shares and final call on '1000 shares.
Give journal entry in the books of the company.
6. Under which heading would you show the following in company final accounts ?
a) Provision for taxation.
b) Pension fund.
c) Unclaimed dividend.
d) Underwriting commission.
e) Work in progress.
f) Loan to employees.
SECTION _ C
Answer any three questions. Each question carries twelve marks. (3x12=36)
7" The Siddu Co. Ltd., issued for public,subscription 20000 shares of T '10 each
at a premium of T 2 per share payable as follows :
8. Sharath Company Limited issued 100000 equity shares of Rs. 60 each. X,Y,Z
and M underwrite the entire issue in the proportion ol 4A"/",3A/",20"/" and 10/o
respectively in consideration of commission in cash at 4h. They also apply for
firm share application as follows :
-
X - 3000 shares, Y - 2000 shares, Z 20A0 shares and M - 3000 shares.
Besides the firrn applications, the public apply for 60000 shares of which marked
applications are as follows :
X - 10000 shares, Y - 6000 shares, Z - 8000 shares and M - 16000 shares.
Show the number of shares to be taken up by each of the underwriters
treating.
a) firm applications as marked applications.
b) firm applications as unmarked applications and
c) find out the commission payable to underwriters.
9. The Balance Sheet of Chethan Ltd. as on 31-12-2018.
Liabilities T Assets T
Equity Shares of Rs. l0 each 2,50,000 Fixed Assets 2,00,000
General Reserves 1,00,000 lnvestments
Profit and Loss Account 50,000 (5% Govt. Bonds) 50,000
Current Liabilities 50,000 Current Assets 2,00,000
fi 4,50,000 4,50,000
Additional lnformation :
a) Net profit after taxation
2016- { 65,000, 2017 - t 62,500, 2019 - t 75,000
b) Normal rate of return is 10%.
c) Current Assets are to be taken at T 2,1 0,000
Ascertain the value of goodwill under:
i) 4 years purchase of super profits.
ii) Capitalisation of super profits.
iii) Annuity of super profits taking annuity factors of Re. 1 for five years at 10%
as t 3.78.
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