Bachelor of Commerce – B.Com Part 2 (Second Year) Solved Assignments for 2020 Annual Examinations
SOL Solved Assignment
Code : CA
Course Title : Corporate Accounting
CA: Corporate Accounting Solved Assignment for 2020
Question 3. The following is the Balance sheet of Nidhi Ltd.as on 31st March 2016.
| Equity and Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| 20,000 Equity Shares of Rs.100 Each | 20,00,000 | Goodwill | 25,000 |
| 12% Debentures | 5,00,000 | Land and Building | 1,50,000 |
| Preliminary Expenses | (20,000) | Plant and Machinery | 3,00,000 |
| Profit and Loss Account | (19,80,000) | Furniture | 80,000 |
| Outstanding Debentures Interest | 1,20,000 | Stock | 2,70,000 |
| Trade Creditors | 3,00,000 | Trade Debtors | 60,000 |
| Cash at Bank | 35,000 | ||
| 9,20,000 | 9,20,000 |
The following scheme of reconstruction is executed
i) Equity shares are reduced by Rs 95 per share .They are,then,consolidated into 10,000 equity shares of Rs.10 each .
ii) Debenture holders agree to forgo outstanding debenture interest.As a compensation 12% Debentures are converted into 14% Debentures,the amount remaining Rs.5,00,000.
iii) Creditos are given the option to either accept 50% of their claim in cash in full settlement or to convert their claim into equity shares of Rs.10 each.Creditors for Rs. 2,00,000 opt for shares in satisfaction of their claims.
iv) To make payment to creditors opting for cash payment and to augment working capital,the company issues 50,000 equity shares of Rs. 10 each at par ,the entire amount being payable along with application. The issues was fully subscribed.
v) Land and Building are revalued at Rs. 2,00,000 whereas Plant and Machinery is to be written down to Rs. 2,10,000. A provision amounting to Rs. 5,000 is to be made for doubtful debts .
Pass Journal entires and draft the company Balance Sheet immediately after the reconstruction.
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