Practice Test - 10 CA INTERMEDIATE UDESH JANUARY 2025 (GROUP-1) 02/06/2024
CORPORATE AND OTHER LAWS
Each Question Carry 2 Marks
1. It shall be the duty of every company to register with the instrument creating the charge and paid the
charge with Registrar within ___days of its requisite fees when demanded. Advise the bork
creation. whether it can recover the fees so paid for
(1) 5 Days registration of charge from Surya Techno Products.
(2) 10 Days (1) Yes, the bank can recover the fees paid by it
(3) 30 Days for registration of charge.
(4) 40 Days (2) No, the bank cannot recover the fees paid by
it for registration of charge because the bank
2. Any person acquiring property (on which charge is is equally responsible for getting the charge
registered under section 77) shall be deemed to registered.
have notice of the charge from? (3) Only when it obtains recovery orders from
(1) End of 30 days Regional Director (RD), the bank can recover
(2) Date of application for charge the fees paid by it for registration of charge
(3) Date of acquiring the property from the company.
(4) Date of such registration (4) Only when it obtains recovery orders from
National Company Law Tribunal (NCLT), the
3. For contravention of chapter of charges, every
barks can recover the fees paid by it for
officer in default shall be liable to a penalty of?
registration of charge from the company.
(1) Rs 50,000 (2) Rs 1 Lakh
(3) Rs 5 Lakh (4) Rs 10 Lakh
6. A charge was created on assets of Amar Limited.
4. The entry for every creation, modification and Such charge is registered on 12th November, 2018.
satisfaction of charges is being done properly. The Any person acquiring such assets shall be deemed
company is also preserving every instrument to have notice of the charge: (Give your answer as
related to such charges. From the following how per the provisions of the Companies Act, 2013)
long the instrument of charges shall be (1) from 12th November, 2018
maintained/preserved by the compony- (2) from 13th November, 2018
(1) For minimum 8 years from the date of creation
(3) from 12th December, 2018
of charge
(2) For minimum 10 years from the date of (4) from 12th January, 2019
creation of charge
(3) For minimum 8 years from the date of 7. The registrar shall keep register of charges which
satisfaction of charge shall be open to inspection by on payment of fee by:
(4) permanently, without any time limit (1) the company
(2) the charge holder
5. With a view to augment its production, Surye
Techno Products Limited availed a loan of ₹ 50,00 (3) holder
lacs from Shrilaxmi First Bank Limited for (4) any person
purchase of a new machinery by offering its factory
worth ₹ 2.25 crores as security.
However, the compony did not initiate any steps to
get the charge on factory registered in favor of
lending banker within the specified time. As soon
as the charge-holder bank came to know about the
nonregistration of charge with the ROC, it applied
to the Registrar for registration of charges along
Subjective Question
Each Question Carry 6 Marks
1. Prasanna Limited created a charge on its assets on 4. What are the powers of Registrar to make entries
nd
2 February, 2021. However, the company did not of satisfaction and release of charges in absence of
register the charge with the Registrar of companies intimation from company? Discuss as per the
till 15th March, 2021. provisions of the Companies Act, 2013.
(a) What procedure should the company follow to
get the charge registered?
5. Define the term “charge” and also explain what is
(b) Suppose the company realises its mistake of
not registering the charge on 27th May, 2021 the punishment for default with respect to
(instead of 15th March, 2021), can it still registration of charge as per the provisions of the
register the charge? Companies Act, 2013.
Advise with reference to the relevant provisions of
the Companies Act, 2013.
6. What is ‘Floating Charge’? When does it get
2. ABC Limited hypothecated its plant to a crystallised?
nationalized Bank and availed a term loan. The
Company registered the charge with the Registrar
of Companies. The company settled the term loan
in full. The Company requested the Bank to issue a
letter confirming the settlement of the term loan.
The Bank did not respond to the request. State the
relevant provisions of the Companies Act, 2013 to
register the satisfaction of charge in the above
circumstance. State the time frame up to which the
Registrar of Companies may allow the Company to
intimate satisfaction of charges.
3. Krish Limited created a charge on its assets on
February 2, 2021. However, the company did not
register the charge with the Registrar of companies
until March 15, 2021.
(a) What procedure should the company follow to
get the charge registered?
(b) Suppose the company realises its mistake of
not registering the charge on May 27, 2021
(instead of March 15, 2021), can it still
register the charge?
Advise with reference to the relevant provisions of
the Companies Act, 2013.
ADVANCED ACCOUNTING
Question 1(i to ii) Carry 1 Mark
1.(i). If cost of acquisition of shares in the subsidiary (ii). H Ltd. acquires 70% of the equity shares of S Ltd.
company is more than intrinsic value of the shares on 1.1.2023. On that date, paid-up capital of S Ltd.
of subsidiary company on the date of acquisition was 10,000 equity shares of ₹ 10 each;
then resultant figure will be accumulated reserve balance was ₹ 1,50,000. H
(1) Minority interest Ltd. paid ₹ 1,95,000 to acquire 70% interest in the
(2) Capital Reserve S Ltd. Assets of S Ltd. were revalued on 1.1.2023
(3) Goodwill and a revaluation profit of ₹ 20,000 was
(4) Significant cost ascertained. Which of the following is correct in
relation to cost of control of group consolidated
financial statement
(1) Capital Reserve — ₹ 6,000
(2) Goodwill — ₹ 6,000
(3) Capital Reserve — ₹ 26,000
(4) Goodwill — ₹ 26,000
Subjective Question
2. The following summarised Balance Sheets of H Ltd. and its subsidiary S Ltd. were prepared as on 31st March, 2020
H Ltd. S Ltd.
Equity & Liabilities
Shareholders' Funds
Equity Shares of Rs. 10 each, fully paid up 12,00,000 2,00,000
Reserves and Surplus
General Reserve 4,35,000 1,55,000
Profit and Loss Account 2,80,000 65,000
Current Liabilities
Trade Payables 3,22,000 1,23,000
22,37,000 5,43,000
Assets
Non-Current Assets
Property, Plant & Equipment (Tangible)
Machinery 6,40,000 1,80,000
Furniture 3,75,000 34,000
Non-Current Investments
Shares in S Ltd. - 16,000 shares @ Rs. 20 each 3,20,000 –
Current Assets
Inventories 2,68,000 62,000
Trade Receivables 4,70,000 2,35,000
Cash and Bank 1,64,000 32,000
22,37,000 5,43,000
H Ltd. acquired the 80% shares of S Ltd. on 1st April, 2019. On the date of acquisition, General Reserve and Profit
Loss Account of S Ltd. stood at Rs. 50,000 and Rs. 30,000 respectively.
Machinery (book value Rs. 2,00,000) and Furniture (book value Rs. 40,000) of S Ltd. were revalued at Rs. 3,00,000
and Rs. 30,000 respectively on 1st April, 2019 for the purpose of fixing the price of its shares (rates of depreciation
computed on the basis of useful lives : Machinery 10% and Furniture 15%). Trade Payables of H Ltd. includes Rs.
35,000 due to S Ltd. for goods supplied since the acquisition of the shares. These goods are charged at 10% above
cost. The inventories of H Ltd. includes goods costing Rs. 55,000 purchased from S Ltd. You are required to
prepare the Consolidated Balance Sheet as at 31st March, 2020.
(16 Marks)
3. H Ltd. acquire 70% of equity share of S Ltd. as on 1st January, 2013 at a cost of Rs. 5,00,000 when S Ltd. had an
equity share capital of Rs. 5,00,000 and reserves and surplus of Rs. 40,000. Both the companies follow calendar
year as the accounting year.
In the four consecutive years, S Ltd. performed badly and suffered losses of Rs. 1,25,000, Rs. 2,00,000, Rs.
2,50,000 and Rs. 60,000 respectively. Thereafter in 2017, S Ltd. experienced turnaround and registered an annual
profit of Rs. 25,000. In the next two years i.e. 2018 and 2019, S Ltd. recorded annual profits of Rs. 50,000 and Rs.
75,000 respectively.
Show the Minority Interests and Cost of Control at the end of each year for the purpose of consolidation.
(10 Marks)
4. Following is the Balance Sheet of M/s. Manish Traders as on 31st March, 2021:
Liabilities Amount Assets Amount
Capital 1,50,000 Fixed Assets 1,05,000
Profit and Loss Account 56,000 Stock 76,000
12% Bank Loan 80,000 Debtors 68,000
Trade Payables 52,000 Deferred Expenses 24,000
Cash & Bank 65,000
3,38,000 3,38,000
Additional Information:
(i) Remaining life of Fixed Assets is 6 years with even use. The net realizable value of Fixed Assets as on 31st
March, 2022 is ₹ 90,000.
(ii) Firm's Sales & Purchases for the year ending 31st March, 2022 amounted to ₹ 6,80,000 and ₹ 5,25,000
respectively.
(iii) The cost & net realizable value of the stock as on 31st March, 2022 was, ₹ 60,000 and ₹ 66,000 respectively.
(iv) General expenses (including interest on Loan) for the year 2021-22 were ₹ 53,800.
(v) Deferred expenditure is normally amortised equally over 5 years starting from the Financial year 2020-21 i.e.
₹ 6,000 per year.
(vi) Debtors on 31st March, 2022 is ₹ 65,000 of which ₹ 5,000 is doubtful. Collection of another ₹ 10,000
debtors depends on successful reinstallation of certain products supplied to the customer.
(vii) Closing Trade payable ₹ 48,000, which is likely to·be settled at 5% discount.
(viii) There is a prepayment penalty of ₹ 4,000 for Bank loan outstanding.
(ix) Cash & Bank balances as on 31st March, 2022 is ₹ 1,65,200.
Prepare Profit & Loss Account for the year ended 31st March, 2022 and Balance Sheet as on 31st March, 2022
assuming the firm is not a going concern
(5 Marks)
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