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

33.
Which of the subsequent statements is truewith regard to the underwritingcommission?
(a)
It is paid to the underwriters on the amount of subscription procured by them
(b)
It is paid to the underwriters on the amount of shares or debentures underwritten by them
(c)
It is paid only for the amount subscribed by the general public and not on firm underwriting
(d)
It is paid only for the amount subscribed by the employees and not on firm underwriting
(e)
Underwriting commission is paid on the amount of privately placed problem.
(1 mark)
< ans >
34.
Which of the subsequent is/are personal account?
I. Share application account.
II. Share Capital account.
III. Calls-in-arrear account.
IV. Calls-in-advance account.
(a)
Only (I) above
(b)
Both (III) and (IV) above
(c)
Only (III) above
(d)
Only (IV) above
(e)
All (I), (II), (III) and (IV) above.
(1 mark)
< ans >
35.
Pious Ltd. redeemed its 12% Debentures of Rs.5,00,000 at a premium of 2%. Theoffer for redemption was as follows:
• Holders can have cash, or
• They could utilize their redemption money in either:
(i) Subscribing to 8% Cumulative Preference Shares of Rs.100 every issued at a premium of 5% or
(ii) Taking up 10% Debentures of Rs.100 each, issued at a discount of 10%
Persons holding Rs.2,00,000 of the debentures agreed to take immediate cashpayment. Other debenture holders holding Rs.1,94,200 Debentures agreed tosubscribe to the Preference Shares. The balance of 12% Debentures were replacedby the new series of 10% Debentures.
The amount of 10% Debentures outstanding after effecting the above transactionsis
(a)
Rs.1,07,816
(b)
Rs. 95,220
(c)
Rs.1,05,800
(d)
Rs.1,19,907
(e)
Rs. 97,124.
(2 marks)
< ans >
36.
Consider the subsequent balances pertaining to Vardhan Ltd. as on March 31, 2006:
20% Debentures a/c
Rs.1,00,000
Debenture redemption fund a/c
Rs.1,13,000
The above fund was invested in the subsequent securities and shares:
Particulars
Rs.
Rs.32,000, 9.5%Government loan
34,000
Rs.36,000, 12% Government loan
34,400
Rs.12,000, 18% Debentures of Rs.100 every
11,200
334 Preference shares of Rs.100 every
33,400
The above investments were sold on the identical day as under:

Earning:   Approval pending.