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    Corporate Accounting - II

    Uploaded by

    Siva Kumar
    This document contains an exam for a corporate accounting class, including: - 4 multiple choice questions about concepts like minority interest and types of profits - 2 short answer questions asking about holding companies, calculating minority interest, and preparing consolidated financial statements - 1 long answer question asking to prepare a consolidated balance sheet from financial information provided for a holding company and subsidiary.

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    Corporate Accounting - II

    Uploaded by

    Siva Kumar
    156 views2 pages
    This document contains an exam for a corporate accounting class, including: - 4 multiple choice questions about concepts like minority interest and types of profits - 2 short answer questions asking about holding companies, calculating minority interest, and preparing consolidated financial statements - 1 long answer question asking to prepare a consolidated balance sheet from financial information provided for a holding company and subsidiary.

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    © © All Rights Reserved

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    This document contains an exam for a corporate accounting class, including: - 4 multiple choice questions about concepts like minority interest and types of profits - 2 short answer questions asking about holding companies, calculating minority interest, and preparing consolidated financial statements - 1 long answer question asking to prepare a consolidated balance sheet from financial information provided for a holding company and subsidiary.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    156 views2 pages

    Corporate Accounting - II

    Uploaded by

    Siva Kumar
    This document contains an exam for a corporate accounting class, including: - 4 multiple choice questions about concepts like minority interest and types of profits - 2 short answer questions asking about holding companies, calculating minority interest, and preparing consolidated financial statements - 1 long answer question asking to prepare a consolidated balance sheet from financial information provided for a holding company and subsidiary.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    CLASS: III B.COM (CA) SUB.

    CODE: GMCO61

    THIRUVALLUVAR COLLEGE: PAPANASAM


    B.Com (CBCS) DEGREE, FIRST INTERNAL EXAMINATIONS
    SIXTH SEMESTER – JANUARY 2017
    CORPORATE ACCOUNTING-II
    TIME: 1 HOUR MAXIMUM: 20 MARKS
    PART- A (4 × 1 = 4)
    Choose the correct answer
    1. Profit earned by the subsidiary company prior to the date of purchase of shares by holding
    company is known as ___
    (a) capital profit (b) revenue profit (c) super profit (d) none of these
    2. The share of outsiders in the subsidiary company is called
    (a) capital profit (b) revenue profit (c) minority interest (d) none
    3. Post acquisition profits are treated as
    (a) capital profit (b) revenue profit (c) minority interest (d) none
    4. Minority shareholders are having _____ of shares of the subsidiary company
    (a) Less than 50% (b) More than 50% (c) Whole (d) none
    PART- B (2 × 4 = 8)
    Answer any two questions

    5. (a) Give the meaning of holding companies. What are its advantages?
    OR
    (b). How will you calculate minority interest, capital reserve or goodwill, while preparing
    consolidated B/S?

    6. (a)From the following details, Prepare the cost of control (Goodwill/Capital Reserve)
    Liabilities H Ltd S Ltd Assets H Ltd S Ltd
    Capital Rs. 10 Shares 4800 3200 256 Shares in S Ltd 2000 -
    Creditors 200 600 Sundry Assets 3000 3900
    Profit & Loss a/c 100
    5000 3900 5000 3900
    On the date of acquisition, S Ltd had a debit balance of Rs. 200 on profit & loss account.
    or
    (b) Balance sheet of subsidiary company as on 31.3.2010
    Liabilities Rs. Assets Rs.

    Share capital Land buildings 2,50,000


    25,000 shares of Rs.10 each 2,50,000 Machinery 1,50,000
    General reserve on 1.4.2007 1,00,000 current assets 1,00,000
    P&L a/c 75,000
    Add profit for (2009-10) 25,000 1,00,000
    Creditors 50,000
    5,00,000 5,00,000
    The holding companies acquired 20,000 shares of the subsidiary company on
    1.4.2009. Machinery was valued at Rs.1,25,000 and current assets at Rs.1,40,000. Calculate
    minority interest.
    PART- C (1 × 8 = 8)
    Answer the question
    8. (a) From the following information, prepare consolidated balance sheet .
    Balance sheet as on 31.3.2005
    Liabilities H Ltd S Ltd Assets H Ltd S Ltd
    Share capital Rs. 10 each 7,50,000 1,50,000 Fixed assets 6,00,000 90,000
    P&L a/c 3,00,000 90,000 Stock 4,50,000 1,80,000
    Reserves 90,000 45,000 Debtors 1,12,000 1,27,500
    Bills payable ------ 22,500 Bills receivable 30,000 -----
    Creditors 1,65,000 90,000 Shares in S ltd 1,12,500 ------
    11,250Shares
    13,05,000 3,97,500 13,05,000 3,97,500
    Additional information:
    i) The bills accepted by S ltd are all in favour of H ltd..
    ii) The stock of H ltd includes Rs. 25,000 bought from S ltd at a profit to the latter of
    20% of sales.
    iii) All the profits of S ltd has been earned since the shares were acquired by H ltd but
    already there was a reserve of Rs.45,000 at that date.
    OR
    8. From the balance sheets and information given below prepare consolidated balance
    sheet.
    Balance sheet as on 31st march 2015
    Liabilities Assets
    H S H S
    Share capital 12,00,000 3,00,000 Sundry assets 10,00,000 1,20,000
    Rs.10 each
    P&L 4,00,000 1,20,000 Stock 6,10,000 2,40,000
    Reserved 1,20,000 60,000 Debtors 1,50,000 1,70,000
    Creditors 2,00,000 1,20,000 B/R 10,000 -----
    B/P ---- 30,000 Investment
    15,000 shares
    in ‘S’Ltd 1,50,000 ------
    _________ ________ ________ ________
    19,20,000 5,30,000 19,20,000 5,30,000
    Additional information
    a) All the profits of ‘S’ Ltd has been earned since the shares were acquired by H ltd but
    there was already the reserve of Rs.60,000 at that date.
    b) The bills accepted by ‘S’ ltd Rs.10,000 are in favour of H ltd.
    c) The stock of H ltd includes Rs.50,000 bought from S ltd at a profit to the latter of 25% on
    cost.

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