QP CODE: 5020-S Reg. No : ............................................

Name : ............................................

M.Com DEGREE (CSS) SUPPLEMENTARY/IMPROVEMENT EXAMINATION - AUGUST - 2025

First Semester
Core: 4NCM010101 - SPECIALISED ACCOUNTING
M. Com (Finance and Taxation)
[SUPPLEMENTARY/IMPROVEMENT - 2024 Admission]

Duration: 3 Hours Maximum Weightage: 30

Part A
Answer any Eight questions (1 Weightage each)

1. What do you mean by revenue recognition? [BTL1] / [CO1]

2. Define PPE. When is it recognised? [BTL2] / [CO1]

3. Cost of the closing stock ₹ 5,00,000 [BTL3] / [CO1]

Scrap value ₹ 2,50,000

Sales Proceeds 4,00,000
Less: Trade Discount (40,000)
3,60,000
Less: Cash Discount ( 10,000)
3,50,000
Less: Cost of Disposal ( 25,000)
3,25,000
Ascertain the value of stock to be included in the balance sheet

4. X Ltd. has 10,000 equity shares of ₹ 10 each, ₹ 8 paid 1,00,000 6% preference shares of ₹ 10 [BTL3] / [CO2]

each fully paid. The company has a practice of transferring 20% of profit to general reserve
every year. If the expected profit (based on past year’s performance) before tax is ₹ 2,00,000
and the rate of tax is 50% you are required to calculate the value equity shares under yield
method. It may be assumed that normal rate of dividend is 20%.

5. Abbam Ltd has Net Asset of ₹ 2,80,000; goodwill is valued on the basis of net asset is [BTL3] / [CO2]

₹ 50,000. The Non trade investment of the company is valued at ₹ 20,000 and the equity share
capital of ₹ 1,00,000 (₹ 10 each fully paid).
Calculate the value per share by:-
(i) Excluding goodwill
(ii) Including goodwill

6. An investor intends to invest not more than ₹ 15,000 in equity shares of an Iron and Steel Co. [BTL3] / [CO2]

What is the maximum number of shares that can be purchased by him if the following is the
financial position of the Co.
Issued and paid up capital: ₹
6% preference shares of ₹ 100 each 5,00,000
Equity shares of ₹ 10 each 3,00,000
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 Average net profit of the company is expected normal yield of 7% 57,000
Total Assets (other than goodwill) ₹ 9,49,000 and total outside liabilities ₹ 95,000.
Goodwill is to be calculated at 5 years purchase of super profit. If any

7. What do you mean by acquisition? Give example [BTL1] / [CO3]

8. Mention the two conditions to be fulfilled to get RBI registration for NBFCs. [BTL4] / [CO4]

9. 01.04.2020, a mutual fund scheme had 9,00,000 units of face value ₹ 10. The scheme earned ₹ [BTL3] / [CO4]

81,00,000 during the year, out of which ₹ 45,00,000 was earned in first half year. 1,00,000
units were sold on 30.09.2020 at NAV ₹ 60. Show important journal entries for the sale of units
and distribution of dividend at the end of the year.

10. What are the reasons for the slower adoption of blockchain technology in accounting? [BTL2] / [CO5]

(8x1 = 8 Weightage)

Part B
Answer any six questions (2 Weightage each)

11. Discuss the nature of accounting standards. [BTL2] / [CO1]

12. From the following information, compute DTA/DTL as on 31.03.2020. The tax rate applicable [BTL3] / [CO1]

is 35%. ₹
a. Depreciation as per books 7,42,900
Depreciation as per Income tax 8,65,400
b. Provision for doubtful debts made during the year 54,300
c. Share issue expenses debited 6,23,500
(Can be deducted from the next year)
d. Expenses debited but disallowed 7,84,500
e. Donation debited but only 50% will be allowed 2,00,000

13. On March 31st 2019, The Balance sheet of Harish Ltd. disclosed the following position:- [BTL3] / [CO2]

(₹)
I. Equity and Liabilities
(1) Shareholder’s Funds
a) Share Capital:
Capital in shares of ₹ 10 each fully paid 4,00,000
b) Reserves and Surpluses
General Reserve 1,90,000
Profit and Loss Account 1,20,000
(2) Non-current Liabilities:-
14% Debentures 1,00,000
(3) Current Liabilities:- 1,30,000
9,40,000
II. Assets:-
1. Non-current Assets
Fixed Assets:- 5,00,000
Goodwill 40,000
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 Investments:- ––
2. Current Assets:- 4,00,000
Total Assets 9,40,000
On the above mentioned data, the tangible fixed assets were independently valued
at ₹ 3,50,000 and goodwill at ₹ 50,000. The net profits for the three years were: 2016-2017
₹ 1,03,200 : 2017-2018 ₹ 1,04,000 and 2018-2019 ₹ 1,03,300 of which 20% was placed to
General Reserve, this proportion being considered reasonable in the industry in which the
company is engaged and where a fair return on investment may be taken at 18%. Compute the
value of company’s share under Fair value method.
Ignore taxation.

14. [BTL3] / [CO3]

The assets of Lipton Ltd are purchased by Tata Ltd. The purchase consideration was as follows.
a) A payment in cash at ₹ 90 for every equity share in Lipton Ltd.
b) A further payment in cash at ₹ 550 for every debenture in Lipton Ltd, which the
debentureholders have agreed to, accept in full discharge of their debentures.
c) An exchange of 4 shares of Tata Ltd of ₹ 75 (Quoted in the market @ 140 each) for every
share in Lipton Ltd.

The Balance sheet of Lipton Ltd stood as follows when taken over:
Liabilities ₹ Assets ₹
Share Capital (6,000 × ₹ 500) 30,00,000 Land and Building 11,00,000
Surplus A/c 60,000 Plant and Machinery 15,50,000
Reserve Fund 2,75,000 Patent 2,40,000
Insurance Fund 65,000 Furniture 2,60,000
Workmen Savings Fund 2,00,000 Inventories 10,00,000
1,300 10% Debentures ₹ 500 each 6,50,000 Sundry Debtors 2,65,000
Sundry creditors 2,50,000 Cash at Bank 85,000
45,00,000 45,00,000
Make necessary journal entries in the books of Lipton Ltd.

15. Given below are the extracts from the Balance Sheet of Axis Ltd. as at 31.03.2018. [BTL3] / [CO3]

Particulars `
Equity share capital (₹100) 7,50,000
11% Preference share capital (₹100) 2,00,000
Reserves and Surplus 3,30,000
10% Debentures (`₹100) 30,000
Current Liabilities 1,90,000
Tangible Fixed Assets 7,00,000
Current Assets 8,00,000
Dena Ltd. absorbs Axis Ltd. as on that date on the following terms.
i) 10% Debentures of the Axis Ltd. are to be discharged by the Dena Ltd. by issuing such
number of its 15% Debentures of ₹100 each so as to maintain the same amount of interest.
ii) 11% preference shares of Axis Ltd. are to be discharged by Dena Ltd. by issuing equivalent
numbers of 13% preference shares of ₹100 each at ₹150 each.
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 iii) Dena Ltd. shall issue 4 equity shares of ₹ 10 each at ₹30 each for each equity share in the
Axis Ltd.
iv) Dena Ltd. shall pay the cost of absorption ₹10,000.
Calculate purchase consideration.

16. [BTL3] / [CO3]

Following is the summarised balance sheet of Rolta Ltd as at 31.03.2018

Particulars ₹
I. EQUITY AND LIABILITIES
1) Shareholders Funds:
a) Share capital – Equity shares (₹ 8) 20,00,000
Preference shares (₹ 10) 10,00,000
b) Reserves and Surplus
General Reserve 6,00,000
Surplus A/c 7,60,000
Workmen Profit Sharing Fund 3,00,000
2) Current Liabilities
a) Trade Payables (Creditors) 4,00,000
Total 50,60,000
II. ASSETS
1) Non-Current Assets
a) Fixed Assets
i) Tangible Assets
Building 7,00,000
Plant and Machinery 13,00,000
ii) Intangible Assets 8,00,000
2) Current Assets
a) Inventories 7,00,000
b) Trade Receivables (Debtors) 9,00,000
c) Cash and Cash Equivalents 6,60,000

Total 50,60,000
Bajajhind Ltd decided to absorb the business of Rolta Ltd on 01.04.2018 at the respective
books value of assets and trade liabilities except building which was valued at ₹12,00,000 and
machinery at ₹ 10,00,000. The purchase consideration was payable as follows.
i) Payment of ₹ liquidation expenses ₹5,000 and workmen profit sharing fund at 10%
premium.
ii) Issue of equity share of ₹ 10 each fully paid at ₹ 11 per share for every preference share
and every equity share of Rolta Ltd and a payment of ₹ 4 per equity share in cash.
Calculate purchase consideration and prepare necessary ledger accounts in the books of
Rolta Ltd.

17. Explain the contents of balancesheet of mutual funds. [BTL2] / [CO4]

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18. What are the steps for incorporating Green Accounting? [BTL1] / [CO5]

(6x2 = 12 Weightage)

Part C
Answer any two questions (5 Weightage each)

19. Ergo Industries gives the following estimates of cash flows relating to property, plant and [BTL3] / [CO1]

Equipment on 31.12.2019. The discount rate is 15%.

Year Cash flow (In lakhs)
2020 4,000
2021 6,000
2022 6,000
2023 8,000
2024 4,000
Residual value at the end of 2024 – ₹1,000 lakhs
PPE purchased on 01.01.2017 – ₹40,000 lakhs
Useful life – 8 years
Net selling price on 31.12.2019 – ₹20,000 lakhs

Calculate on 31.12.2019
a) Carrying amount at the end of 31.12.2019
b) Value in use on 31.12.2019
c) Recoverable amount on 31.12.2019
d) Impairment loss to be recognised on 31.12.2019
e) Revised carrying amount
f) Depreciation charge for 2020.
The PVF are 0.870, 0.756, 0.658, 0.572, 0.497.

20. Indicate briefly the steps involved in valuing shares under each of the following methods: [BTL4] / [CO2]

a) Earning basis b) net asset basis c) dual basis.

Critically examine the merits and demerits of this methods.

21. X Ltd is to absorb Y Ltd by issuing 5 shares of shares of ₹ 10 each at a premium of 10% for [BTL3] / [CO3]

every 4 shares held in Y Ltd. On the date of absorption. Balance sheets were as under:
Particulars X Ltd. (₹) Y Ltd. (₹)
I. EQUITY AND LIABILITIES
1) Shareholders Funds
a) Share capital:
Shars of ₹ 10 each 10,00,000 6,00,000
b) Reserves & Surplus:
General Reserve 1,00,000 80,000
2) Current Liabilities
Creditors 2,00,000 1,20,000
Total 13,00,000 8,00,000

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 II. ASSETS
1) Non-current Assets
Fixed Assets 8,00,000 4,00,000
Investments:
12,000 shares in Y Ltd 1,60,000 ––
10,000 shares in X Ltd –– 1,20,000
2) Current Assets 3,40,000 2,80,000
Total 13,00,000 8,00,000
You are required to show (a) important Ledger Accounts in the books of Y Ltd, and (b) the
acquisition entries in the books of X Ltd. Fixed Assets of Y Ltd. are taken at ₹ 4,50,000 in the
books of X Ltd.

22. What is lean accounting? How do it is different from traditional cost accounting? Briefly [BTL2] / [CO5]

discuss the principles of green accounting.

(2x5 = 10 Weightage)

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