Advanced Accounting - November 2023

Sapphire Limited earned Net profit of ` 39,00,000 and ` 59,40,000 for the years 2021-22 & 2022-23 respectively. The following information were given for 2022-2023: (i) The company declared Rights issue of two new shares for each five outstanding shares. (ii) 4,00,000 shares were outstanding prior to Rights issue. (iii) Rights issue price was ` 27.50 and the last date to exercise rights was 1 stJuly, 2022. (iv) Fair value of one equity share immediately prior to exercise of rights…

Following is the Balance Sheet of Tourma Limited as at 31 st March,2023: Particulars Notes ` in lakhs Equity and Liabilities 1. Shareholders’ funds 2. 3. A. Share Capital 1 24.00 B. Reserves and Surplus 2 (9.10) Non-current liabilities A. Long-term borrowings 3 3.20 Current liabilities A. Trade Payables 1.15 B. C. Short Term Borrowings – Bank Overdraft Other current liabilities 4 1.40 0.32 D. Short term provisions 5 0.42 21.39 Total Assets 1. Non-current assets A. B. Property, Plant…

GB Limited acquired 80% of equity shares of TB Limited on 1 st April,2016 at a cost of ` 58,00,000 when TB Limited had an Equity share capital of ` 50,00,000 and Reserves and Surplus of ` 4,64,000. The following information is provided: Profit /(Loss) of TB Limited (`) 2016-17 (14,50,000) 2017-18 (23,20,000) 2018-19 (29,00,000) 2019-20 (6,96,000) 2020-21 1,90,000 2021-22 6,80,000 2022-23 12,70,000 You are required to calculate the minority interests and cost of control at the end of each…

X, Y and Z are partners in a firm, sharing profit and losses in the ratio of 3:2:1 respectively. Due to extreme competition, it was decided to dissolve the partnership on 31 st December, 2022 on which date the Balance sheet was as follows: Liabilities Assets Capital Accounts: X 2,26,200 Y 70,800 Z 63,000 Machinery Furniture and Fittings Investments 3,60,000 Stock 3,08,000 51,600 10,800 1,95,400 Current Accounts: X 52,800 Z 12,000 Debtors 64,800 Current Account -Y 1,12,800 59,400 36,000 Reserves…

(a) Citrine Limited went into voluntary liquidation on 31 stMarch, 2023. The following balances were extracted from its books as on that date: Property, Plant and Equipment 5,15,000 Inventory 4,50,000 Trade receivables 1,85,000 Bank balance 90,000 Profit & Loss A/c (Dr. balance) 3,61,000 Trade payables 2,75,000 Outstanding Expenses (including Bank interest) 7% Bank loan (secured by floating charge) 76,000 3,60,000 2,500 12% cumulative Preference shares of ` 100 each, fully paid 2,50,000 4,000 Equity shares of ` 100 each, fully…