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

Preliminary expenses 16,500 Debenture redemption
Stationery printing exp. 4,900 fund 1,05,000
Office expenses 6,400 Sales 10,42,000
Salaries 69,500 Creditors 62,000
Repair-expenses 3,200 Bad-debt-reserve 4,200
Rent-taxes 12,000 Tax provision
Travelling expenses 14,900 (Dt.1-4-2005) 16,900
Stock (Dt.1-4-2005) 1,69,000 Bank overdraft 50,150
Motor-vehicles 49,900 Profit-loss account 44,000
Purchases 6,32,400 Interest and dividend 16,850
Motor expenses 5,000
Office equipments
(cost price Rs. 12,000) 10,600
Advertisement expenses 3,000
Bank-charges 1,430
Debtors 1,27,000
Income tax paid for
the year 2004-05 10,000
Calls-in-Arrears of
equity shares 6,000
Business expenses 2,570
21,41,100 21,41,100
SX-5665] 10 [Contd...
Additional other info :
(1) Cost price of closing stock is Rs. 96,850, while its market
price is Rs. 1,00,000.
(2) compute depreciation on all fixed assets @ 10% of cost
price.
(3) Write off 50% preliminary expenses.
(4) Motor-vehicle account includes 2 old cars every of
Rs. 12,950 (cost price Rs. 23,500 for every car) and one
car bought on 1-4-2005 for Rs. 24,000. 1 old car is
sold for Rs. 9,700. The sale proceeds is included in sales.
(5) Interest and dividend includes interest on debenture
redemption reserve investment received Rs. 2,850.
(6) A liability of Rs. 1,200 as previous years back log
balance is included in creditors, now it is cancelled and
not payable.
(7) Write off Rs. 3600 as bad debt, and increase BDR upto
Rs. 6150.
(8) A sue against co. by custom excise authority is pending
for Rs. 15,000. Judgement is awaited.
(9) Income tax liability for the year ended dt. 31-3-2006 is
of Rs. 23,500.
2 subsequent are the balance-sheets of Khyati Co. Ltd. and its 20
subsidiary company Guddi Co. Ltd. as on 31st March 2006 :
Liabilities Khyati Guddi Assets Khyati Guddi
Co.Ltd. Co.Ltd. Co.Ltd. Co.Ltd.
Rs. Rs. Rs. Rs.
Eq. share capital Goodwill 4,00,000 —
(each share Land-Building 12,00,000 10,80,000
of Rs.10) 20,00,000 10,00,000 Plant-
12% pref. share machinery 10,00,000 4,00,000
capital (of Investments 16,00,000 —
Rs.100 every Stock 4,80,000 3,00,000
share) 10,00,000 6,00,000 Debtors 3,00,000 1,60,000
Security premium 4,00,000 4,00,000 Bills receivable 1,00,000 1,40,000
P and L Account 12,00,000 — Cash-bank 3,20,000 3,60,000

Earning:   Approval pending.