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

Bad Debts 2,100
Debenture Interest 9,000
Sundry Expenses 2,350
Deposits from Public 10,000
12,95,625 12,95,625
*

After locating the mistakes and making the subsequent adjustments, prepae Trading and Profit and Loss Account for the year ended 31-03-2005 and Balance sheet as on that date in a vertical form. Ignore previous year's figures.
1. Authorised capital of the company is 60,000 Equity shares of Rs. 10 every. The calls in arrears are @ Rs. five per share.
2. Stock on 31-03-2005 was Rs. 1, 37,120.
3. Write off 1/5 th of the preliminary expenses.
4. The Details of fixed Assets are as under.
Particular Original Cost Rs. Depreciation till 31-03-2004 Rs. Rate of Depreciation
Land & Building 3,50,000 50,000 5%
Machinery 4,00,000 1,03,000 20%
Furniture 10,000 2,800 10%

The depreciation during the year is to be charged on W.D.V. as at the beginning of the year. Therewere no additions or deductions during the year.
* Note: Rectified Trial Balance is not needed.
* Q.7 subsequent is the Balance-sheet of INDICA LTD. as on 31-12-2004:— 16
*
*
Liabilities Rs. Assets Rs.
Share Capital Fixed Assets
Authorised: Land & Building 40, 00,000
10, 00,000 Equity shares of Rs. 10 every 1,00, 00,000 Plant & Machinery 22, 00,000
Issued, Subscribed & Called Up Furniture 20, 00,000
8, 00,000 Equity shares of Investments 20, 00,000
Rs. 10 each,Rs. eight per share paid up 64, 00,000 Current Assets, Loans & Advances
Reserves & Surplus: Debtors 42, 00,000
Profit & Loss Account 50, 00,000 Bills Receivables 10, 00,000
Security Premium Account, 30, 00,000 Bank Balance 45,00,000
Secured Loans: Stock 20, 00,000
10% Debentures 30, 00,000
Unsecured Loans 10, 00,000
Current Liabilities & Provisions
Sundry Creditors 20, 00,000
Bills payable 10, 00,000
Provision for Tax 5, 00,000
2, 19, 00,000 2,19,00,000

Keeping in view the legal requirements ascertain the maximum number of Equity shares that Indica Ltd. Can buyback @ Rs. 20 per share.
* Pass journal entries to record buyback and prepare a Balance-sheet thereafter.
* Q.8 A company issued 10,000-8% Debentures of Rs. 100 every at par on 01-01-2001—redeemable on 31-12-2004 at par. The company decided to invest money outside business to give funds for redeemption. The outside investments were made @ 5% p.a. on the last day of every year. On 31st December, 2004, the company sold all investments for Rs. 7, 25,000 and redeemed the 8% Debentures. The Sinking Fund value of Re one @ 5% interest for four years is 0.23012. :— 16
* Prepare for all the 4 years:
1. 8% Debentures Accounts
2. Sinking Fund Account
3. Sinking Fund Investment Account
* Note: computations to be rounded off to the closest rupee.

Q 9. ans the following:-

(a) (i)List out the items under the head "Reserves & Surplus" of a company as per Schedule VI requirements.(4)

(ii)State the Steps to compute value of Goodwill as per capitalization of future Maintainable Profits Method.(4)
* (b)1.A company has balance as under(2)

Security Premium Rs. 1, 00,000
General Reserves Rs. 1, 50,000
Redeemable Preference Share Capital Rs. 5, 00,000

Preference shares are to be redeemed at a premium of 10%. obtain out the amount of fresh problem of shares as per company legal regulations requirement.
* 2.A company earned a net profit of Rs. 45,000 after debiting all expenses of Rs. 75,000. The sales ratio of Pre-incorporation and Post-incorporation periods is 2: 3. obtain out the allocation of Gross Profit amount in pre & post incorporation periods.(2)
* 3.The profits and the weightage assigned to the profits are as follows (2)
Year Profits (Rs.) Weightage
2002 15,000 1
2003 20,000 2
2004 25,000 3

Goodwill should be valued at 21/2, times of purchase of Weighted avg. Profit. obtain out amount of goodwill.
* 4.A company has Opening balance of Rs. 10, 00,000 in its Fixed Assets Account [W.D.V.]. Accumulated Depreciation was Rs. 6, 00,000. There was an addition of fixed Assets of Rs. 5, 00,000 at the beginning of the year while there was no sale of fixed asset.(2)

Prepare fixed Assets Schedule if the Depreciation is charged for the year @ 15% on original cost.

Earning:   Approval pending.