Corporate Accounting — Winter 2025

Give head, subhead and sub-sub head (if applicable) of following items of Balance Sheet as per Schedule III of Companies Act, 2013 (1) 10% Secured Debentures (2) Outstanding Salary and Wages (3) General Reserve (4) Cash at Bank (5) Machinery (6) Debtors (7) Goodwill

Write down the point of differences between Cash Account (Receipt and Payment Account) and Income and Expenditure Account.

XYZ Ltd. provides the following information for the year ended 31st March 2023: 1. Sales Revenue: INR 500,000 2. Cost of Goods Sold: INR 300,000 3. Commission income: INR 200,000 4. Operating Expenses: INR 100,000 5. Depreciation Expense: INR 20,000 6. Interest Expense: INR 10,000 7. Income Tax Expense: INR 30,000 Prepare the Profit and Loss Statement for XYZ Ltd. in vertical format as per Schedule III of the Companies Act, 2013.

Write about the following methods of Valuation of Goodwill (1) Average Profit Method (2) Super Profit Method OR1

The following particulars of a company are available:

Equity share capital: 10,000 equity shares of INR 10 each fully paid. (2) Preference share capital: 1,000, 12% preference shares of INR 100 each fully paid. (3) Reserve and Surplus: INR 15,000. (4) External Liabilities: Creditors – INR 12,000; Bills payable – IINR 6,000. (5) Average normal profit after tax earned each year by the company INR 28,500. (6) Transferred to general reserve - 10%. Assets of the company include one fictitious item of INR 800. The normal rate of return in respect of the equity share of this type of company is ascertained at 10% (ignore goodwill). Compute the value of the company's share by

Asset backing method; and,

Yield method

Briefly write about different methods available for redemption of debentures

X Limited made an issue of 10,000 Equity Shares of INR 15 each payable as follows: (1) INR 4 per share on application; (2) INR 7 per share (including 2 per share as premium) on allotment; and (3) INR 6 per share on first and final call. Das holding 50 shares failed to pay the allotment and call monies. Pal holding 80 shares failed to pay the call money. All these shares were forfeited and subsequently re-issued to Roy as fully paid-up @ INR 7 per share. Pass Journal Entries (including cash transactions) to record the above issue, forfeiture and re-issue of shares in the books of the company.

What do you mean by Debentures? Write about different types of Debentures.

A Ltd. invited applications for 10,000 shares of INR 100 each at a premium of INR 10 per share. The amount is payable as follows: On application – INR 25 On allotment – INR 35 (including premium) On First Call – INR 25 On Final Call – INR 25 The Application were received for 9000 shares and these were accepted in full. All money due were received except the first and final call money on 200 shares, which were forfeited. Out of these shares, 100 shares were subsequently re-issued @ INR 90 per share. You are required to pass journal entries for the above transaction.2

Calculate Net Cash Flows from Operating Activities from the following:

Profit made during the year INR 250,000 after considering the following items:

Depreciation on fixed assets INR 10,000 (ii) Amortization of Goodwill INR 5,000 (iii) Transfer to General Reserve INR 7,000 (iv) Profit on sale of land INR 3,000

The following is the position of current assets and current liabilities: Particulars 2024 (INR) 2023 (INR) Debtors 15000 12000 Creditors 10000 15000 Bills Receivable 8000 10000 Prepaid Expenses 4000 6000

What is Cash Flow Statement Analysis? How it differs from Fund Flow Statement Analysis?

Calculate Cash Flow from Operating Activities from the following Profit & Loss Account: Particulars Amount Particulars Amount Salaries 14000 Gross Profit 52000 Rent 10000 Profit on sale of Land 12000 Provision for Bad Debts 2000 Depreciation 3000 Goodwill W/off 2500 Loss on sale of Plant 1500 Provision for Tax 6000 Proposed Dividends 7000 Net Profit 18000

What is buy Back of Shares? Write down provisions related to buy back of Shares given under Companies Act, 2013.3

From the following information, calculate value of goodwill taking 5 years purchase of super profit

Equity Share Capital – 5000 equity shares of INR 20 each fully paid

Preference Share Capital – 1,000 8% preference shares of INR 100 each fully paid

General Reserve: INR 30,000

Loss on revaluation of Plant and Machinery – INR

Average trading profit after tax- INR 30,000

Normal Rate of Return on Capital Employed – 12%