problem 1) Answer all the problems:
(i) What do you mean by debenture? prepare the name of different types of debentures.
(ii) What do you understand by fair value of share? How is it computed?
(iii) Describe the meaning of sub division of shares with appropriate ex.
(iv) prepare down the objectives of amalgamation?
(v) What do you understand by statement of affairs?
problem 2) What are redeemable preference shares? Describe the various methods of redeeming the redeemable preference shares.
problem 3) What is liquidation of companies? What are the different modes of winding up of company?
problem 4) Following are the Balance Sheet of Goodluck Ltd. and Fairluck Ltd. as on 1st April, 2010.
Liabilities Goodluck Ltd. Fairluck Ltd. Assets Goodluck Ltd. Fairluck Ltd.
Building 6,00,000 3,40,000
Equity share of Rs. 100 each 7,00,000 4,20,000 Cash 2,000 4,000
Reserve 1,40,000 72,000 Debtors 1,48,000 1,30,000
Creditor 2,10,000 1,38,000 Stock 3,00,000 1,56,000
10,50,000 6,30,000 10,50,000 6,30,000
Goodluck Ltd. amalgamated Fairluck Ltd. on the basis of intrinsic value of share. The purchase consideration is to be discharged in the form of fully paid equity shares, entries would be made at par value only. A sum of Rs. 20,000 is owned by Goodluck Ltd. to Fairluck Ltd.
Provide journal entries in the books of Fairluck Ltd. Create a Balance Sheet of Goodluck Ltd. soon after the amalgamation.