Page 311 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Accounting for Companies – II

Notes 5. The following is the Balance Sheet of PQR Ltd. as on 31 December 2010:
st
Liabilities ` Assets `
Share Capital: Fixed Assets 3,80,000
10,000; 12% Preference Shares Investments 1,02,500

of ` 10 each 1,00,000 Stock 57,200
20,000 Equity Shares of ` 10 each 2,00,000 Debtors 1,27,800
General Reserve 1,50,000 Cash at Bank 22,500
Profit and Loss Account 1,20,000
14% Debentures 80,000
Creditors 27,500
Liabilities for Expenses 12,500
6,90,000 6,90,000
For the purpose of valuation of shares, fixed assets are to be depreciated by 10% and
investments are to be revalued at ` 1,08,000. Debtors will realise only ` 1,20,700. Interest on
debentures is accrued for 9 months and preference dividend for 2010 is also due. Neither
of these has been provided for in the Balance Sheet. Calculate the value of each type of
shares.

Answers: Self Assessment

1. True 2. False
3. True 4. False
5. True 6. SEBI
7. Stipulation 8. Shares

9. Advances 10. Stamp Duty
11. 1899 12. Issuing

13.6 Further Readings

Books B B Dam and H C Gautam, Corporate Accounting, Capital Publishing.

Das. K R and others, Corporate Accounting, LBS Publication.
Sehgal, Dr. A and Sehgal, Dr. D, Advanced Accounting & Corporate Accounting.
Taxman Publications.

Online links http://220.227.161.86/22213frpubcd_research3.pdf
http://www.icai.org/resource_file/16341CloselyheldShareValuation.pdf
http://www.jmolski.com/FMA%20Sols.pdf
http://www.oocities.org/mehulmukati/CA_Final/Accounts/Valuation_
PrefShares.html
http://www.tutorsonnet.com/homework_help/valuation_of_bonds_and_
shares/valuation_of_preference_shares_assignment_help_online_tutoring.htm

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