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

(a)
Rs.20.00
(b)
Rs.17.50
(c)
Rs.15.75
(d)
Rs.14.18
(e)
Rs.12.00.
(1 mark)
< ans >
13.
The subsequent is the balance sheet of VIBGYR Ltd. as on March 31, 2006:
Liabilities
Rs.
Assets
Rs.
Equity shares of Rs.10 every fully paid-up
10,00,000
Sundry assets
19,50,000
12% Redeemable preference shares of Rs.100 every fully paid-up
8,00,000
Investments
4,50,000
General Reserve
4,00,000
Cash at bank
2,00,000
Profit & Loss account
2,50,000
Share premium
25,000
Sundry creditors
1,25,000
Total
26,00,000
Total
26,00,000
The Board of Directors of the company decided to redeem the preference shares at a premium of 10%. In order to facilitate the redemption, the Board has taken the subsequent decisions:
• To sell the investments for Rs.4,00,000.
• To problem sufficient equity shares at a premium of Rs.2 per share to raise the balance need of funds.
• To maintain minimum bank balance of Rs.50,000.
The Board of Directors initiated the above course of action during the month of April, 2006 and redeemed all the preference shares.
The amount to be transferred to Capital Redemption Reserve is
(a)
Rs. 70,000
(b)
Rs.5,25,000
(c)
Rs.1,25,000
(d)
Rs.8,00,000
(e)
Rs.5,50,000.
(2 marks)
< ans >
14.
Sampath Ltd. issued 1,00,000 equity shares of Rs.100 each, payable as under:
On application
Rs.40
On allotment
Rs.20
On 1st call
Rs.20
On final call
Rs.20
The applications received for 1,70,000 shares were dealt with as under:
• Applicants of 20,000 shares were allotted in full.
• Applicants of 1,40,000 shares were allotted 80,000 shares pro-rata.
• Applications for 10,000 shares were rejected.
The excess of application money received that can be adjusted towards allotmentmoney, is
(a)
Rs.20,00,000
(b)
Rs. 8,00,000
(c)
Rs.16,00,000
(d)
Rs. 4,00,000
(e)
Rs.24,00,000.
(2 marks)
< ans >
15.
As per the Accounting Standard 20, which of the subsequent are not potential equityshares?
(a)
Share Warrants
(b)
Convertible preference shares
(c)
Employee Stock choice plans
(d)
Convertible Debt instruments
(e)
Redeemable preference shares.
(1 mark)
< ans >
16.
Explore Ltd. issued 50,000 equity shares of Rs.10 every at par payable at Rs.2 pershare on application, Rs.5 per shareon allotment and the balance on the 1st and final call. Call money on 1,000 shares were not received. These shares wereforfeited. Out of forfeited shares, 600 shares were reissued to Mr.Saketh at Rs.8per share. Later, 100 shares were reissued to Mr. Vasanth at their paid up value and the remaining shares were reissued to Mr.Sachin at Rs.11 per share.

Earning:   Approval pending.