Corporate Accounting — DU B.Com. (Hons.) Previous Year Question Papers

1. (a) State the provisions of Companies Act 2013 regarding redemption of preference shares. (6) (b) Rose Ltd. issued a prospectus inviting applications for 75,000 equity shares of `10 each at par. The whole of the issue was underwritten by P, Q and R equally with 2500 shares each of them as firm underwriting. Commission payable to underwriter is 5% of the issue price. The company received applications for 60,000 shares excluding firm underwriting (including marked applications). Marked applications of X, Y and Z were for 20,000; 22,000 and 12,000 shares respectively. Ascertain the liability of the underwriters and net amount of underwriting commission payable to them assuming benefit of firm underwriting is given to individual underwriters. (9) (c) Sun Ltd decides to redeem 25,000, 15% Preference shares of `10 each at a premium of 10%. It has General Reserve of `23,250, P&L A/c of `55,000 and Securities Premium of `5,000. Investments (Face Value `5,00,000), having market value of `7,50,000, 30% of the investments are sold at 120% of Face Value. The directors desire that only minimum number of equity shares of `100 each at a premium of 5% be issued for the purpose of redemption of preference shares. Calculate minimum number of equity shares to be issued to meet the requirements of the companies Act, 2013 if the company wants to maintain a balance of `55,000 in its P&L (d) The following is the balance sheet of New Era Ltd. As at 31st March On 1st April 2025, the company decided to buyback 25% of its equity shares @`15 per share. For this purpose, the company issues 2,00,000, 8% preference shares @`100 each at a premium of 10% payable fully on application. These shares were fully subscribed. The company also sold all its investments for `150 lakhs. Later, the company issued one fully paid-up equity share of `10 each by way of bonus issue for every four equity shares held by the equity shareholders. Show all journal entries in the books of New Era Ltd. Show all working notes clearly. (9) 2. (a) The following balances appeared in the books of Braj Bihari Ltd. as on 31st Additional Information : (i) Closing stock on 31st March, 2025 was `10,00,000 (ii) Provide depreciation on plant @20%p.a. and on furniture 10% p.a. written down value basis (iii) Maintain a provision for doubtful debts @5% on debtors. (iv) Make a provision of 30% for tax. (v) The board proposed a dividend at 10% on paid up share capital after the date of the Balance Sheet. (vi) Closing stock valued at `10,00,000. (vii) Transfer `1,00,000 to the General Reserve. You are required to prepare Statement of Profit and Loss for the year ended 31st March, 2025 and Balance Sheet in the prescribed form as at 31st March, 2025 as per schedule III of Companies (18) (b) Write note on Related Parties as per AS-18. (6)