2016

Syllabus
P-17(CFR) and7,00,000
2020-2021.
the 2x10=20 the of as the fourof of Over
Turn
Please
100
Marks:
Full 2022-2023
Amount on 2/3rdpurchase
in crores of of
Goodwill
justification employees basis
is
10 only the
2021-2022. Employed
during the years
marks from
? incurredState
crores, Profits5,00,000.
on
made and justification) the Responsibility Goodwill3
questions of projects. at
Capital
be candidates. full 2022-2023.
full
REPOORTING
FINANCIAL
CORPORATE answer. firm
Section-B.
compulsory. treatment
15 company
indicate may in
crores, CSR 3,00,000.the
Opening
five the assumptions option of
FINAL
EXAMINATION the for
side any of of mark years the medical
under
Social Super Goodwill
is part by
questions correct 20 2022-2023, 2,00,000.
rightA answerform answerSECTION-A crores,?
2023
June - l the respectively
Corporate of Profits
SECTION
the to mustsuitable and and CapitalisationCalculate
that for
on seven
required in choice education ?Profits.
Average
margin indicated write Ltd. 25 During
notesnecessary, on Act,2013.
of remaining AATMA? families Employed.
l Working and correct are Expenditure Super firm.
also
theOuestion respectively.
free above of of
clearly option 2018-2019 basisCapitalisationthe above
in are "Wherever for JIV on their Companies
figures theAll
hours Candidates mark 3.00,000 0.23 crorethe the ofpurchase
(A)crore
crore
0.30 of
Capital
Profits ?
(C)
2,50,000the
1,50,000
and correct of and of 3,50,000
of on of
(1 Profits
2019-2020,
crores company
Fall 0.20 None Goodwill None
3 The
Allowed: the sheet ShortThe of Closing
Average
Net 5 and per (B) (C) (D) basisyears' (A) (B) (D)
Choose
answer
(i) (ii)
Time
1. 26885
 (2)
P-17(CFR)
Syllabus 2016
Shares of I0 cach, ? 8paid up 7,00,000. Equity Shares of 5esd
(i) 4,00,000 Equity
up (Calls-in-arrears @2 2on 2,00,000 shares). 10,000 9% Preferens
fully called
of Earnings 9%. Fair Value of a
SharesofRI00 cach fully paid up. Normal Rate
Expected FMP for Equity Shareholden
Equity Share (? 3 paid up) 5.60. Calculate
(A) R 24.1 lakh
(B) 17.01 lakh
(C) ?15.01 lakh
(D) None of the above

as
(iv) Which of the following is the case of Amalgamation in the nature of the merger
per AS 14 assuming other conditions are satisfied?
(A) The transferee company issued Equity Shares to the Equity shareholders and
paid Cash to the Preference shareholdersof the transferor company.
(B) The transferee company issued Equity Shares to the quity shareholders and
Preference Shares to the Preference shareholders of the transferor company.
(C) The transferee company issued Equity Shares to the Equity shareholders and
Debentures to the Preference shareholders of the transferorcompany.
(D) Allof the above

(v) TULSI Lid has Equity Share Capital of 95,00,000, Tangible Fixed Assets of
Z65,00,000and Current Assets of 85,00,000, Investment Allowance Reserves of
2,00,000, Export Profit Reserve of ?3,00,000 and General Reserve of 28,00,000,
Current Liabilities of 19,00,000, Non-Current Liabilities of 3,00,000 as at
31.3.2023. Statutory Reserves are to be maintained for 2 more years. The business
of TULSILtd. is taken over by AMLA Ltd. by the issue of 1,00,000equity shares of
100 each at a 20% premium. Inthis case
(A) Amalgamation Adjustment Account is required to be opened in the books of
AMLA Ltd.

(B) Amalgamation Adjustment Account is required to be opened in the books of

TULSI Ltd.
(C) Amalgamation Adjustment Account is not required to be opened in the books
of any company.
(D) None of the above
 (3) P-17(CER)
Syllabus 2016

(vi) Which of the following is true?

(A) Internal Reconstruction can be done only in case of companies incurring losses.
debited or credited when
(B) Reconstruction A/c/Capital Reduction A/c is either
Variation of Shareholders'
Internal Reconstruçtion is carried out either by way of
Rights u/s 48 or Alteration of Share Capital u/s 61.
Reconstruction A/c/Capital Reduction A/c is always credited when Internal
(C)
Share Capital u/s 66.
Reconstruction is carried out by way of Reductionof
when
Reconstruction A/c/Capital Reduction A/eis neither debited nor credited
(D)
Reconstruction is carried out either by way of Variation of Shareholders'
Internal
Capital u/s 61.
Rights u/s 48 or Alteration of Share

(vii) Which of the following is true?

Advances given to suppliers is Investing Cash Inflow.
(A) Interest earned on
Investing Cash
interest earned on advances given to suppliers is
(B) TDS on
Outflow.
Extraordinary
received against damage of Godown by fire is an
(C), Insurance claim Cash inflow from Operating
heading as
item to be shown under a separate
activities'.

(D) None of the above

is not true?
(viii) Which of the following
separately in the Statement
is to be disclosed
(A) An item of Income or Expenditure from
Profit/Loss of a Company if its amount exceeds 1% of the Revenue
of
Operations or ? 1,00,000, whichever is higher.
Statements are compulsorily required
(B) The figures appearing in the Financial decimal thereof if
to be rounded off tothe nearest lakhs, millions or crores or
TOTAL INCOME is at least 100 crore.
will end on 31st
(C) The financial year of X Ltd incorporated on lst January 2023
March 2023.

(D) Cash Flow Statement is not required to be prepared by One Person Company,
SmallCompany and Dormant Company.
 (4)
P-17(CFR)
Syllabus 2016
(ix) Which of the following is not true?
(A) Acompany can not convert the partly paid equity shares into fully paid share,
abonus without
way of payable asking them to pay anything.
(B) byPremium on redemption of Red. Pref. Shares can not be adjusted
prescribed companies, whose finanei
against Securities Premium in case of
Standards prescribed for such class of
statements comply with the Accounting
companies u/s 133.
months maturity' appear under the Sub-hea
(C) Bank deposits with more than 12 Sheet of a Company.
"Cashand Cash Equivalents" of the Balance
the date of vesting of the option and the
(D) The minimum time gap period between
date of exercise of the option must be one year.

(x) Which of the following is not true?

calls-in-advance.
(A) ACompany can not pay dividend on
Dividend in the event of loss in any
(B) ACompany can declare and distribute Final
financial year.
financial year, if dividend
(C) In the event of inadequacy or absence of profit inany
4 conditions as per
is declared by a company for that year outof Surplus, then
Reserves) Rules,
The Companies (Declaration and Payment of Dividend out of
2014 need not be fulfilled.
loss in
(D) A Company candeclare and distribute Interim Dividend in the event of
any financial year.

SECTION-B
Answer any five Questions out of sevenQuestions. 16x5 = 80

2. (a) ALOE VERA TULSILTD. provides you the following information:

Date Particulars No. of Shares

01.04.2022 No. of fully paid Shares of 10 each at the beginning of year 5,00,000
01.06.2022 Issue of Shares for Cash 1,20,000
01.07.2022 Issue of Shares to Underwriters 6,000

01.08.2022 Buy-Back of Shares 2,69,250

01.09.2022 Issue of Shares against Purchase of Building. (acquisition is 30,000
recognized onthe same day)
01.10.2022 Issue of Shares in settlement of liability 15,000
 (5)
P-17(CFR)
Syllabus 2016

Particulars No. of Shares

Date
value
Ltd. purchased Y Ltd. onthe basis of intrinsic
01.|L2022 Tulsian companies. Theintrinsic value of shares
ofshares of both the and ? 15
Tulsian Ltd. and Y Lid. are ? 60 respectively
of 2022 of YLtd. are 4,80,000
outstanding on Ist April,
Shares
shares of ? 1cach
01.12.2022 Splitup of sharesinto
every 2 held
01.01.2023 Bonus issue:l share for
85,00,000
Net Profit for year ended31-03-2022:
1,10,00,000
Net Profit for year ended 31-03-2023:
Tax Rate: 30%

10% Cumulative Preference Shares: 1,00,00,000

12% Non-Cumulative Preference Shares: 1,00,00,000
last 3 years.
Note: No dividend has been paid on Preference Shares for the
accounting year 2021-2022
Required: Compute the Basic EPS (earning per share) for the 8
and 2022-2023 Adjusted EPS for the year 2021-2022.
Q Ltd. has 20% voting rights in R Ltd.
(b) i) P Ltd. has 60% voting rights in Q Ltd.
R Ltd. R Ltd. supplied Goods
Also, P Ltd. directly enjoys voting right of 8% in 2022 and
quarter ended on 30th June,
for ? 15 crores to P Ltd. during the Ist
on 30th Sept, 2022. P Ltd. sold 1%
for ? 25 crores during the 2nd quarter ended
Shares of R Ltd. on lst July,2022. P Ltd., Q Ltd. and R Ltd. are listed
Equity 4
transactions.
companies. State the legalimplications of these
to its six segments: in lakhs)
(ii) BHARAT Ltd. gives the following data regarding
D E F Total
Particulars A B

66 31 48 27 440
Segment Assets 100 168

(380) 20 20 (20) 30 (200)

Segment Results 130

600 1,240 I50 120 170 120 2,400

Segment Revenue
lakhs,
Deferred Tax Assets included in the assets of each Segments are A-? 10
B-8lakhs , C- 6 lakhs, D-1lakh, E 8 lakhs , F- 7lakhs. Identify the
4
Reportable Segments as per AS 17.
P-17(CFR) (6)
Syllabus 2016

3. (a) AMLA TULSI LId. provides youthe folowing information as at March 31, 2023:
Particulars ( in lakhs)

Equity Shares of? 10cach 500

100
6% Cum- Pref.Shares of 100 cach
Profit and Loss Account (Dr) 15

10% First Debentures 60

100
10% Second Debentures
16
Debentures Interest outstanding
165
Trade Creditors
719.6
Plant& Machinery
three years.
Note: Dividend on Preference Shares are in arrears for
reconstruction was approved and implemented:
The following scheme of internal same number of equity shares of
be converted into the
(1) All the equity shares
75 each, 2.50paid up. manner in
shares are converted from 6% to l5% but revalued in a
(ii) The preference
total return on them remains unaffected. Four equity shares of? 5 each,
which the dividend.
100 of arrears of preference
2.50 paid up to be issued for each
first debentures for R 40 lakhs and 10% second debentures
(iii) Mr. A holds 10%
lakhs. He is also a creditor for 10 lakhs. Mr. 'A' is to cancel
for 60
lakhs to the company and to receive
60 lakhs of his total debt and to pay ? 10
Debentures for the balance amount. Mr. B holds the remaining10%
new 129%
and is also a creditor fo
first debentures and 10% second debentures
to accept new 12
F5lakhs. Mr. B'is to cancel 30lakhs of his total debt and
Debentures for the balance amount.
(iv) Trade Creditors (other than A and B) are given the option of either to accep
equity shares of 5, ?2.50 paid up each, for the amount due to them or t
accept 80% of the amount due in cash. 40% Creditors accepted equity share
whereas the balance accepted cash in full settlement.
() Any surplus after writing off the various losses should be utilized in writin
down the value of plant & machinery.
Required: Prepare the Reconstruction Account.
 P-17(CER)
(7) Syllabus2016

(b) Given below are the as at 3

lst
and V Ltd.
March, 2023:
extracts fronn the Balance Sheetsof P Ltd.

VLtd. ()
Particulars P Ltd. (O
2.00,000
Equity Share Capital of 10 cach 6.00,000
20,000
General Reserve 1,50,000

1,77,000
10,000
Profit & Loss A/c
5,000
Statutory Reserves
50,000
10% Debentures of 100 each
37,500 140,000
Trade Payables
1,19,500
Goodwill
4,75,000 1,50,000
|Property, Plant &Equipment
1,09,000
Non-Current Investments (including 100 Debentures of V Ltd.
purchased @ of 90)
95,000 55,000
Inventories
140,000 65,000
Trade Receivables
1,45,500 35,500
Cash at Bank

on that date on the following terms:

The business of V Ltd. is taken over by P Ltd, as dividend
to declare and pay equity
(i) Prior to absorption, V Ltd and P Ltd decide
@ 5%.
taken over at 100% more than the
(ii) 50% of Property, Plant & Equipment are
Equipment are taken over at
book value and the remaining Property, Plant &
20% less than the book value.
(iii) Goodwill of VLtd. is to be valued at 52,500.
Trade Receivables are
(iv) Inventories are taken over at book value less 10% and
doubtful
taken over at book value subject to an allowance of 10% to cover
debts.
Unrecorded
(v) Trade Payables are to be taken over subject to a discount of 5% and
Loan Liability of 38,500 to be discharged by P Ltd. at book value.
(vi) The purchase consideration is to be discharged to the extent of 20% in cash and
the balance in the form of equity shares of ?10 each, 8paid up at a premium
of7per share, The market value of an equity share of PLtd. at present is
100.
 P-17CER) (8)
Svllabus 2016
(Vii) Thc Issue of such an amount of fully paid 14% Debentures in P Ltd
961 percent as is sufficient to discharge10% Debentures in VLtd. at a premium
20 per cent.
( ) Expenses of liquidation of V Ltd. are to be reimbursed by P Ltd. to the ey.
of * 10,000. Actual Expenses amounted to12,000.
(ix) Statutory Reserves are to be maintained for 2 more years.
PTior to 31st March 2023 V Ltd. sold goods costing 30,000 to P Ltd. for 40.00
25,000 worth ofgoods were still in stock of PLtd. Trade Receivables include 20,0
still due from PLd. On the date of absorption, VLtd. owed P Ltd. 60,000
for th
purchases of stock from P Ltd. which made a profit of 20% on cost. Four fifth of suc
Stock were sold till31.3.2023. Investments of PLtd. include9,000 representing the cos
of 10% Debentures of V Ltd.
Required: (a) Prepare Realisation Account, Bank Account, Equity Shareholders Accoun
and Shares in P Ltd. Account in the books of V Ltd. (b)
of P Ltd.
Pass Journal Entries in the book
1
4. (a) State the
objectives of Ind AS 105.
(b) Fromn the following information of
as per AS-3 issued by ICAI:
KALYUG Ltd., prepare the Cash Flow Statement

Particulars
31.3.2023 31.3.2022
Equity Share Capital
General Reserve 9,10,000 5,00,000
Profit & Loss Alc 2,10,000 2,50,000
6,61,500 (1,40,000)
Employees Stock Option Outstanding Alc
Securities Premium 3,00,000 1,00,000
Capital Redemption Reserve 50,000
Capital Grant 1,00,000
8,00,000 Nil
Convertible Debentures (into equity shares at 25% premium)
Trade Payables 2,00,000
GoodwilIl 1,05,000 1,00,000
15,000
Plant & Machinery
Non-Current Investments 7,65,000 5,00,000
Inventories 35,000 50,000
95,640 54,000
 P-17(CFR)
(9) Syllabus 2016

31.3.2022
Particulars 31.3.2023
)
()
5,85,000
Trade Receivables 7,10,000
less: ProViSion for Doubtful Debts (1,50,000)
(1,90,000)
65,000
Voluntary Separation Payments 1,25,000
6,000
Cash and Cash Equivalents 14,69,360

Advance Tax(including 1,500being 15% tax on gain on sale 11,500

of Investments)

Additional Information:
off @ 15%. A fully depreciated
) Depreciation on Plant & Machinery written
machine costing 1,00,000 was also discarded.
whereas previously the practice was
(i1) It was decidedto value Inventories at cost 31.03.2023
closingstock on
to value Inventories at cost less 10%. However, the
was correctly valued at cost.
Ltd. was purchased for 60,000 payable
(111) On 31st March 2023. the business of Y
a premium of 20%. The assets included
in fully paid equity shares of 10each at and Machine ? 18,360.
Inventories 26,640, Trade Receivables 10,000,
In addition, Trade Payables of 15,000 were taken over.
against the Provision for Doubtful Debts
(iv) Debtors of 2,30,000 were writen off Compensation
P&L Alc.
Alcduring the year. Grant of 10,00,000 anmortised in
Separation Payments
received in a suit filed by the company 90,000. Voluntary
? 50,000adjusted against General Reserve.
pre-acquisition dividend
(v) Dividend received amounted to 2,100which included 12
on cost.
of 600. Some Investments were sold at profit of 25%

AS 112does not apply.

5. (a) State two cases when the Ind
Balance Sheets of H Ltd, and S Ltd, as at
(b) Given below are the extracts from the
31st March 2023:

Particulars H Ltd. ) S Ltd. )

2,40,000 2,40,000
Equity Share Capital
5,000
Capital Reserve (since 1.4.2020)
40,000 32,000
General Reserve
Profit & Loss A/c 24,000 39,000
P-7CER)
(10 )
Syllabus 2016

Particulars H Ltd. () S Ltd. (R)

Trade Creditors 8,000 15,000
Bills Payable 4,000 10,000
Tangible Fixed Assets 88,000 1,74,960
Goodwill |Purchased] 5,000
Investments 1,80,000 10,000
Trade Debtors
12,000 30,000
Bills Receivable
8,000 32,000
Inventories 20,000 80,000
Cash at bank
8,000 9,040
Note: Contingent liability ofH Ltd. - Bills
discounted not yet matured at ? 5,000.
Additional information:
() On lst April. 2020 H Ltd.
acquired from the
shares of 10each in S Ltd. and allotted in shareholders of S Ltd. 10,000
own shares of 10 each at a premium consideration thereof 8,000 of its
of6 per share. On Ist Oct. 2020 HLtd.
further acquired some shares in S Ltd. for
(ii) Balances to General 48,000@8.
Reserve of S Ltd. stood on 1.4.2020 at ?
Current profits an uniform amount has been 60,000. Out of
every transferred to General reserve
year. The net profit made during three years is
received from the insurance company in 55,200 including 6,000
stock by fire on 30.06.2020 (Cost ? settlement of the claim towards loss of
(ii) On each 30th Sept. 10,800 included in opening stock).
Dividends
and 2021-2022 in the years
have been paid @10% for 2019-2020,
2020-2021
HLtd. has credited all 2020-2021, 2021-2022 and 2022-2023 respectively.
dividends received to Profit and Loss
1.3.2023, bonus shares were issued by S Ltd. in the ratio of Account. On
created prior to 1.4.2020. 1:5out of reserves
(iv) On 1.10.2020, Fixed Assets and
and overvalued by 100% Investments of S Ltd. were undervalued by 5%
respectively but no adjustment had been made in the
books. Depreciation on Fixed Assets had been charged @ 10% p.a.
basis), there being noaddition or sale since 01.04.2020. (on WDV
(v) H Ltd. incurred an
expenditure of 500 per month on behalf of S Ltd. and this
was debited to the Profit and Loss Account of H Ltd.,
in the books of S Ltd. but nothing has been done
 P-17(CEFR)
(11)
Syllabus2016
(vi) Trade Creditors of HLtd. include 4,000 due to SLtd. Trade Debtors of
S Ltd. include 8,000 for sales to HLtd. invoiced at cost less 20%. 80% of
these goods are still unsold. It is Ltd. has remitted a
cheque of
{4,000, which has not found tH
that
(vii) Bills Receivable of H yetLtd.beeninclude
received 4,000
by S Ltd.
bills acccepted by S Ltd. Bills

discounted byS Ltd.

by HLtd., but not yet matured include3,000 acceptedConsolidated
Required: Calculate the Minority Interest, Cost of Control: and the Balance of
P& L Account to be taken to the Consolidated Balance Sheet of HLtd. and its subsidiary,
12
as at 31st March. 2023.
TULSI Ltd. as at
6. (a) Given below are the extracts from the Balance Sheet of GINGER
31st March, 2023:
Pariculars
10,00,000
1.00,000 Equity Shares of 10 each
30,00,000
6.00,000 Equity Shares of 5 each fully paid up
(4,00,000)
Less: Calls-in-arrears on 2,00,000 Shares
10,00,000
12% Preference Shares of 100 each
20,00,000
Reserves and Surplus
20,00,000
valuation of
Debentures [60% Debentures are to be redeemed prior to
10%
Goodwill] 10,00,000
Current Liabilities
4,00,000
Goodwill 10,00,000
8,00,000]
10% Trade Investments [Face Value
after tax @ 40%:2020-2021: 12,00,000, 2021-2022:
Additional Information: Profits from the next year, Rate of IncomeTax:
With effect
T18.00.000, 2022-2023:* 15,00,000. 4,44,000p.a. Normal Rate of
Return on
manager remuneration
25% and an increase in Trade Investments are to be valued at 275% of
shareholders is 8%.
net assets for equity purchase of Super Profits.
Face Value. Goodwillis to be valued at 3 years'
3
Required:
(i)Calculate Goodwill. 2
Calculate Net Asset Value of an Equity Share. 2
(ii) share.
Calculate Yield Based Value of an equity 1
(iii)
Value of an Equity Share.
(iv) Calculate the Fair
P-7CER) (12)
Syllabus 2016
() On 1.7.2019 AMLA.GILOY &TULSI Ldgrants 100 options to each of its 2, 100
employces at R60 when the market price is T200. The vesting date is 3Ist March.202)
and the exercise date is 3Ist March,2023. At the end of year 1,the company found
that 100 employees had left and cstimated the expected annual forfeitures rate a
10%. Fair Value of ashare issued under ESOP was 93. At the end of year 2, the
company found that 80 employees had left and re-estimated the expected annual
forfeitures rate at 5%. Fair Value of ashare issued under ESOP was ? 104. At the
end of year 3, the company found that 192 employees had left. Fair Value of a
share issued under ESOP was 80. Only 1700employees exercised their options on
3lst March,2023. The face value of equityshare is 10 per share. Pass the necessary
Journal entries in the books of the company upto 31st March,2023.
) Calculate Expenses to be recognised in year 1by Fair Value Method.
() Calculate Expenses to be recognised in year 2by Fair Value Method. 3
(i1) Calculate Expenses to be recognised in year 3 by Fair Value Method.
(iv) Calculate Value of Options Forfeited.

7. (a) ()) Define Financial Asset, an equity instrument and a puttable instrument as per
Ind AS 32. 6
(ii) RICH &POOR LTD. issued certain callable convertible debentures at 300.
The value of similar debentures without call or equity conversion option is
285. The value of callas determined using Black and Scholes model for option
pricing is 10. Determine Values of Liability and Equity Component.
(b) () Explain briefly Government Accounting Standards Advisory Board (GASAB) 4
() Explain briefly about Consolidated Fund of India, Contingency Fund and Public
Accounts of India. 3

8. Write short notes on any four of the following: 4x4=16

(a) State only one basic difference between the following:
(i) Annual Report and Financial Statements
(ii) Annual Report and Board of Directors' Report
(ii) XBRL and XML
(iv) CSR Reporting and Sustainability Reporting
(b) Meaning, Importance and two examples of Notes To Accounts
(c) Meaning and three advantages of Triple Bottom Line Reporting
(d) Meaning and three advantages of Sustainability Reporting
(e) Meaning and three advantages and three potential applications of XBRL