Saurastra University 2006 M.Com Commerce Corporate Financial Accounting - Question Paper

M. Com. (Part–I) exam
April / May – 2006
Corporate Financial Accounting
Instructions :(1) every ques. carries 20 marks.
(2) It is necessary to show clear and point-wise
calculations.
1 (a) The profit and loss account of Chandragupt Ltd. for 10
the year ended as on dated 31-3-2006 is provided beneath.
compute commission payable to the managing directors
and other directors @ 5% and 1% of net profits
respectively :
Profit and Loss Account for the year ended 31-3-2006
Dr. Cr.
Particulars Rs. Particulars Rs.
To Administrative and
Distribution expenses 4,00,000 By Gross profit 12,00,000
To Interest on loans 50,000 By Profit on sale
To Managing Director’s of Investments (long
remuneration 15,000 term investments) 15,000
To Depreciation (which is By Dividend on shares 9,000
Rs. 45,000 as schedule By Transfer fee 1,000
XIV of Companies Act) 55,000
To Directors fees 4,000
To Capital redemption
reserve 40,000
To Provision for taxation 2,50,000
To Development Rebate
reserve 15,000
To Net profit 3,96,000
12,25,000 12,25,000
(b) From the subsequent particulars of Stardam Co. Ltd. 20
as on 31-3-2006, prepare vertical Balance sheet
according to schedules and learn out them :
Traditional Balance sheet as on 31-3-2006
Liabilities Rs. Assets Rs.
Authorised share
capital 15,000 equity Goodwill 1,20,000
shares every of Rs.100 15,00,000 Furniture 1,20,000
Issued, subscribed capital – 5% depreciation 6,000 1,14,000
capital 15,000 eq. shares Plant-machinery 3,60,000
every of Rs. 100 15,00,000 – 10% depreciation 36,000 3,24,000
Paid up capital : Land-Building 7,80,000
15,000 Eq. share Investments 2,60,000
every of Rs.100 15,00,000 Debtors 2,82,400
– Call in arrear 15,000 14,85,000 Stock 2,72,900
Share premium 6,300 Custom deposits 90,,000
General reserve 2,65,000 Bank balance 1,80,000
SX-5665] nine [Contd...
Debenture redemption Cash balance 70,400
fund 1,20,000 Bills receivable 1,05,000
P & L appropriation A/c 68,115 Preliminary expenses 12,000
8% debentures 3,00,000 Underwriting commission 7,200
Outstanding Interest Debenture discount 42,000
on debenture 12,000
Fixed deposits 25,000
Creditors 1,20,000
Bills payable 26,000
Uncalled dividend 30,000
Outstanding expenses 3,600
Provident fund 36,000
Proposed dividend 75,000
Provision for taxation 87,885
26,59,900 26,59,900
OR
1 subsequent is the trial balance of Navjyot Co. Ltd. as on 20
31-3-2006 :
Debit balances Rs. Credit balances Rs.
Fixed assets (cost Share capital :
price Rs. 5,00,000) 4,28,000 8% cum. preference
Cash balance 30,350 shares 2000, every
Investments 5,30,000 Rs.50 fully paid-up 1,00,000
Debenture interest 5000 equity shares
(Dt.30-9-05) 6,000 of Rs.100 every 5,00,000
Power expenses 2,450 Debentures (6%) 2,00,000

Earning:   Approval pending.