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(a) Write only one basic difference between each of the following : (Ieg

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(a) Write only one basic difference between each of the following : (Ieg.,

¢ .

(1) Reserve Capital and Capital Reserve

(t) Bonus Shares and Right Shares

(i) Capital Redemption Reserve and Debentures Redemption Reser

(iv) Participating Preference Shares and Non- Participating Preference

- Shares .

(v) IPO and FPO

(vi) Book Building and Reverse Book Building

(b) State the conditions for Redemption of Redeemable Preference Shares or

Buy back of Shares. (9)

OR ALTERNATIVE QUESTION

Attempt any three of the following : (5x3=15)

(a) Non-Current Investments (Face value 2 10,00,000) appeared in the Balance

Sheet at % 20,00,000. The Investments of the face value of 2 4,00,000 are

sold at the market price which was 150% of the face value. 15%, 13000

Redeemable Preference Shares of % 100 cach were outstanding. General

Reserve was of 2 16,30,000, Sccurities Premium was of 2 2,25,000.

Preference Shares were rcdcemed at a premium of 10%. Journalise.

(b) On Ist April, 2019, BT Ltd. (listed company) issucd 6,000, 12% Debentures

of 2 100 cach at a discount of 10% and redeemable at a premium of 5%

after three years. Interest on Debentures is payable half- yearly on 30th

Scpt. and on 31st Mar. During 2021-2022, on Ist Aug, the company

purchased 1800 Debentures @ ¢ 97 cum-Intcrest in the open market for

immediate cancellation and on Ist Nov, the company purchased ¢ 60,000

nominal purchased for % 58,050 cx-intercest in the open market for immediate

cancellation. Pass the necessary Journal Entrics on Ist Aug and Ist Nov.

 

3

(cd) On Ist Apnl, 2019, TT Lid. (listed company) issued 6,000, 12°o Debentures

of 2 100 cach at a discount of 10° and redeemable at a premium of 5%

aller three years. During 2021-2022, on Ist Oct, the company converted

1$00 Debenturcs into Equity Shares of 2 10 cach issucd at a premium of

25°45 and on Ist Mar, the company converted 1500 Debentures into 13%

Debentures of & 50 cach at a discount of % 5 per Debenture. Pass the

necessary Journal Entries on Ist Oct. and Ist Mar assuming that no portion

of the Loss on issuc of Debentures was written off prior to current year.

(d) On 31st March, 2022, the ST Ltd. (listed company) has Equity Shares of

¥ 10 cach fully paid 2 330 Crore, 10% Red Pref. Shares of & 100 cach fully

paid 2 70 Crore, Securities Premium % 90 Crore, General Reserve % 240

Crore, Profit and Loss A/c % 20 Crore, Capital Redemption Reserve ¢ 50

Crore, Debt 2 1200 Crore. The company has offered buy back of 3.75

Crore equity shares @ 2 30 per share. Pass the necessary Journal Entnes

to record buy back.

2. (a) Write only one basic difference between each of the following : (2*6=12)

(i) Interim Dividend and Final Dividend

(ii) Quoted Investments and Unquoted Investments

(wi) Reserve and Reserve Fund

(iv) Current Asset and Non-Current Asset

(v) Trade Receivable and Trade Payable

(vi) Work-in-progress and Capital Work-in-progress

(b) Explain Operating Cycle. Give onc cxample each of Contingent Liability and

Commitments as per Schedule Ill to The Companies Act, 2013. (3)

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OR ALTERNATIVE QUESTION

How will you disclose the following items while preparing the Balance Shey,

AMLA TULSI Lid (having operating cycle of 14 months) as at 3] s, Max,

2022, as per the Schedule III to The Companies Act, 2013? (Name the Hex.

Sub-Head and Sub-Sub-Head, if any) 7

(1) Debit Balance of Profit & Loss A/c

w Computer Software under Development

(ui) Building under construction

(iv) Uncalled Liability on partly paid Debentures held as Investments

(v) Current Maturities of Long-Term Borrowings

(v1) Employees’ eamed leave payable on retirement

(vi) Security Deposit for Telephone

(vin) Calls-in-Advance

(ix) Security Deposits

(x) Investment in Bonds of ADANI Ltd. (Redeemable within | year)

(xi) Debentures of AMLA TULSI Ltd (Redeemable within | year)

(xii) Arrears of Fixed Cumulative Dividends on Preference Shares

(xiii) Share option outstanding Account.

(xiv) Uncalled liability on shares and other partly paid investments.

(xv) Licenses & Franchise (15)

3. How wall you deal wath the following dems while prepanny Cash Flow Statement

of GILOY TULST Lid as per AS-3 issued by ICAL?

(1) Loans and Advances given to the following and interest carncd on them

(a) to supplicrs, (b) to cmployces, (c) to its subsidianes companies

(u) Investment made in subsidiary JO Lid. and dividend received

(ut) Dividend paid for the year

(iv) TDS on interest income camed on investments made

(v) TDS on interest camed on advance given to supplicrs

(vi) TDS on interest allowed on advance received from customers

(v1) TDS on interest allowed on Debentures

(xiii) Insurance claim received against loss of fixed asset by fire

(ix) Compensation paid in a suit filed by a customer

(x) Deposit with bank for a term of 3 months

(xi) Deposit with bank for a term of 12 months

(xii) Deposit with bank for a term of two years

(xiii) Purchase of Business for % 20 lakhs payable by issue of Equity Shares of

2 11 lakhs, 12% Debentures of < 4 lakhs and the balance through RTGS.

(xiv) Redemption of 12% Debentures of = 10 lakhs by issue of Equity Shares of

2 4 lakhs and the balance through RTGS.

(xv) Purchased Debentures of X Ltd., on. Ist Feb, which are redeemable within

3 months. (15)
 

During the year Machinery costing 2 60,000 wus sold ata loss of 2 20,000.

\ Depreciation provided on Machincry 2 60,000. On Ist October, 2021, Additional

Bank Loan was raised and Current Investments were purchased. Dividend on

equity shares @ 8% was paid on opening balance. Income Tax ~ 45,000 has

been provided during the ycar. Preference Shares were redeemed at a premium

of 5% at the end of the year. (15) .

4. (a) Define Purchase Consideration as per AS 14. (3)

(b) Distinguish between Amalgamation in the nature of Purchase and

Amalgamation in the nature of Merger. (10)

OR ALTERNATIVE QUESTION

{

(a) Given below are the extracts from the Balance Sheets of TASHIKA Ltd as

at 31st March 2022:

Equity Share Capital (Shares of % 10 each) | 10.00 |

8% Pref. Share Capital (Shares of 7 100 each)

12% Debentures of ~ 100 each 1.00

TUSHAR Ltd absorbs TASHIKA Ltd as on that date on the following

terms :

(i) 12% Debentures of TASHIKA Lid are to be discharged by TUSHAR

Ltd by issuing such number of its 15% Debentures of 2 100 cach so

as (o maintain the same amount of interest.

PTO.