University of Mumbai 2007 B.A Economics Financial Accounting - Question Paper

Trial Balance as on 31st March, 2006
Particular Debit Rs. Credit Rs.
Capital Account of Mr. Vardhan on 1/4/05 ---- 9,00,000
Debtors 80,000 ----
Creditors ---- 1,00,000
Rent 33,000 ----
Office Salary 1,10,000 ----
Carriage outward 54,000 ----
Directors Remuneration 16,000 ----
Travelling Expenses 28,500 ----
Preliminary Expenses 15,000 ----
Administrative Expenses 1,60,000 ----
Bills Receivable 30,000 ----
Bills payable ---- 21,500
Cash at Bank 60,000 ----
Plant & Machinery 2,00,000 ----
Land & Buildings 5,00,000 ----
Furniture 40,000 ----
Stock 1,90,000 ----
Gross Profit ---- 4,95,000
Total : 15,16,500 15,16,500

Further Information:
Gross Profit percentage is fixed. Turnover is doubled in April, November and December as compared to other months.
1/5 of preliminary expenses are to be written off.
Purchase consideration Rs. 10, 00,000 to be paid by the problem of 80,000 equity shares of Rs. 10/-each and 2,000 9% preference shares of Rs. 100/- every.
Travelling expenses are incurred by, salesmen only.
Audit Fee is Rs. 18,000/- for first April, 2005 to 31st March, 2006 and is outstanding.
Rent of office was paid @ Rs. 2,500/-, per month up to September, 2005 and thereafter, it was increased by Rs. 500/- per month.
give depreciation @ 10% p.a. on Plant & Machinery, Land & Building and on Furniture. Prepare profit and loss account for the year ended 31st March, 2006 appropriating ranging from the pre and post incorporation period and Balance Sheet as on 31st March, 2006.

Q.3 The subsequent is the Balance-sheet of Sandeep Limited as on 31st March, 2006: 16
Liabilities Rs. Assets Rs.
Issued and Subscribed Capital Goodwill 25,000
10% Preference Shares of Patents 15,000
Rs. 100/- every 4,00,000 Furniture 35,000
Equity Shares of Rs. 10/- every 10,00,000 Plant & Machinery 6,00,000
12% Debentures 7,50,000 Land & Building 6,50,000
Bank Overdraft 50,000 Stock-In-Trade 80,000
Sundry Creditors 1,40,000 Sundry Debtors 90,000
Bills Payable 35,000 Bills Receivable 15,000
Profit and Loss A/c 8,20,000
Preliminary Expenses 45,000
23,75,000 23,75,000

The preference dividend is in arrear for 4 years. The subsequent scheme of capital reduction was sanctioned by the court and agreed by shareholders:
The preference shares are to be decreased to Rs. 50/- every and equity shares to Rs. 2/- each, both being fully paid.
Of the preference dividend in arrear three-fourth to be waived and remaining to be paid in cash.

Earning:   Approval pending.