Acharya N G Ranga Agricultural University 2006 Diploma Financial Management Financial Accounting - Question Paper

* Pass journal entries in the books of Mr. Madhav [including those for cash] in accordance with AS
*
* Q.5 'Following is the Balance sheet of NINAD LTD. as on 31-03-2005:— 16
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Liabilities Rs. Assets Rs.
Equity Shares of Rs. 10 every 5, 00,000 Fixed Assets 7, 00,000
8% Preference Shares of Rs. 100 every 1, 00,000 Current Assets 4, 80,000
7.5% Debentures of Rs. 100 every 2, 00,000 Preliminary Expenses 20,000
Unsecured Loans 1, 00,000
Reserve and Surplus 2, 00,000
Current Liabilities 1, 00,000
12, 00,000 1,20,000
*
* Additional info
1. Details of Sales Expenses and Interests for the last 5 years for the year ended are as under:
Particulars 31.03-2001 31.03-2002 31.03-2003 31-03-2004 31-03-2005
Rs. Rs. Rs. Rs. Rs.
Sales 4,50,000 5,50,000 7,00,000 4,00,000 8,00,000
Expenses 1,75,000 2,90,000 3,00,000 1,55,000 4,00,000
Interest on Loan 10,000 20,000 25,000 30,000 10,000
Interest on Debentures 15,000 15,000 15,000 15,000 15,000
2. Rate of Income tax is 40%
3. Normal rate of return is 12.5%
4. Fixed assets are valued at Rs. 10, 00,000 and current assets are valued at Rs. 6,00,000.
* obtain cut value of Equity share under:-
* (i)Net Assets Method
* (ii)Earning Capacity Method
* (iii)Fair Value Method.
* Q.6 Mr. Confused is the Accountant of M/s Ultimate Confusion Ltd. He presents to you the subsequent Trial Balance as on 31-03-2005. The cash in hand on 31-03-2005 is Rs. 750. 16
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Particular Rs. Particular Rs.
Bank Balance 72,900 Subscribed capital 4,00,000
Calls in Arrears 7,500 6% Debentures 3,00,000
Land & Building 3,00,000 Profit and Loss A/c [Cr.] 13,625
Machinery 2,97,000 Sundry Debtors 87,000
Interim Dividend Paid 37,500 Sales 4,15,000
Stock [ 1-4-2004] 75,000 Preliminary Expenses 5,000
Sundry Creditors 40,000 Sinking Fund 75,000
Bills Payable 38,000
Furniture 7,200
Purchases 1,85,000
Provision for Bad Debts 4,375
Investments 75,000
Salaries & Wages 1,03,600
Fuel 13,200
Rent, rates & Taxes 3,800
Discounts Allowed 6,400
Directors Fees 5,700

Earning:   Approval pending.