Institute of Chartered Financial Analysts of India (ICFAI) University 2007 Certification Finance Financial Accounting – II (112): - Question Paper

(figures in Rs.’000)
Year
Opening Stock
Closing Stock
FIFO
LIFO
FIFO
LIFO
2001-02
40.00
39.80
46.00
41.20
2002-03
46.00
41.20
49.20
47.90
2003-04
49.20
47.90
38.90
39.10
2004-05
38.90
39.10
42.00
38.50
2005-06
42.00
38.50
45.00
43.10
Straight-line and written down value methods of depreciation were as follows.
(figures in Rs.’000)
Year
Straight-line
W.D.V.
2001-02
12.10
17.00
2002-03
14.15
18.10
2003-04
15.00
19.25
2004-05
16.70
19.60
2005-06
18.00
19.40
The profit for the year 2004-05 after making the adjustments was
(a)
Rs.22,100
(b)
Rs.26,700
(c)
Rs.19,100
(d)
Rs.27,900
(e)
Rs.22,000.
(2 marks)
< ans >
9.
Which of the subsequent assets is not long-term asset of a business?
(a)
Patents
(b)
Goodwill
(c)
Plant and Machinery
(d)
Live Stock
(e)
Loose Tools.
(1 mark)
< ans >
10.
Consider the subsequent data pertaining to Optimum Ltd.:
i. Sundry assets of the company are Rs.22,50,800 and current liabilities are Rs.93,625.
ii. avg. capital employed in the business is Rs.18,00,000.
iii. Rate of return expected from capital having regard to the risk involved is 10%.
iv. Net trading profits of the company for the past 3 years before considering director’s remuneration were Rs.3,22,800, Rs.2,72,100 and Rs.3,37,500.
v. Fair remuneration to the directors for their services is Rs.36,000 per annum.
The value of goodwill on the basis of three years’ purchase of super profits calculatedon the avg. of past 3 years profits is
(a)
Rs.3,92,400
(b)
Rs.1,30,800
(c)
Rs.2,84,400
(d)
Rs.1,66,800
(e)
Rs.1,77,247.
(2 marks)
< ans >
11.
On April 01, 2006, the balance in debenture redemption fund account of NavyaLtd. was Rs.40,000. This fund was invested in the subsequent securities:
Rs.20,000, 12% Government loan Rs.17,000
Rs.13,000, 10% Debentures Rs.11,000
100 Equity shares of Rs.100 every Rs.12,000
On June 01, 2006, the Government loan was sold at par, 10% debentures were sold at95% and the equity shares were sold at Rs.150 per share. The amount transferred fromdebenture redemption fund investment account to debenture redemption fund accountof the company was
(a)
Rs. 7,350
(b)
Rs. 4,350
(c)
Rs. 5,450
(d)
Rs.40,000
(e)
Rs.10,350.
(2 marks)
< ans >
12.
If the yield rate of return of Expert Ltd. is 15.75%, normal rate of return is 9%,paid up value is Rs.10 and nominal value of its equity share is Rs.20, the value of an equity share of Expert Ltd. is

Earning:   Approval pending.