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

Stock 94,000 Capital Reserve 15,000
Debtors 1,45,000 Profit & Loss A/c (on 01-04-2005) 55,000
Cash 8,000 Provision for Depreciation (on 01-04-2005)
Bills Receivables 30,000 (i) Land & Buildings 40,000
10% Investments 1,50,000 (ii) Plant & Machinery 1,30,000
Interest on Debentures 16,000 (iii) Motor Car 10,000
Advance Tax Gross Profit 4,10,000
For-2004-05(F.Y) 72,000 Interest on Investments 7,500
For-2005-06(F.Y) 60,000 Sale of Motor Car 35,000
20,02,500 20,02,500

Adjustments:-
Motor Car was sold on first April, 2005. The cost of sold Motor Car was Rs. 30,000/- and Accumulated depreciation on first April, 2005 was Rs. 6,000/- on the identical.
Depreciation is to be given on written down value at (i) Land and Building 21/2% p.a., (ii) Plant and Machinery 10% p.a. and (iii) Motor Car 20% p.a.
Debtors include debts due for more than six months Rs. 20,000/-.
Plant & Machinery includes machinery worth Rs. 20,000/- Purchased on first April, 2005.
Dividend is proposed for the year @ 10%, Ignore tax on proposed dividend.
Provision for Taxation is to be made @ 40% on the current year's profit
Debentures are secured by a charge on the Land and Buildings
The market value of Investments on 31-03-2006 was Rs. 1, 80,000/-.
Interest on Investment is due for six month but not received.
Interest on debentures for six months is Accrued & due.
Authorised share capital of the company is Rs. 10, 00,000/- divided into 1, 00,000/- Equity shares of Rs. 10 every.
You are needed to prepare Profit & Loss Account for the year ended 31st March, 2006 and Balance Sheet as on that date in a vertical form as per provision of the schedule VI. Ignore previous year's figures.


Q.7 subsequent is the Trial Balance from the books of Diksha Ltd. as c- 31st March, 2006 :- 16
Date No. of Debentures Terms
01-04-2005 800 Opening Balance at a cost of Rs. 76,000/-
01-06-2005 300 Sold at Rs. 105/- every cum-interest
01-09-2005 700 Purchased at Rs. 98/- every Ex-Interest
01-12-2005 400 Purchased at Rs. 108/- every Cum-Interest
01-02-2006 900 Sold at Rs. 97/- every Ex-Interest.


Adjustments:- Prepare Investment Account of 12% Debentures in the books off Bhagwati for the year ended 31st March,2006. The market value on 31st March, 2006 was Rs. 67,500 of the stated Investment. Apply AS-13

Q.8 a) Pass journal entries for the subsequent Foreign Exchange transactions the books 'Deepali Ltd. On first January, 2006 Deepali Ltd., an importer,purchased $ 42,500/- worth goods from Tom Trading Company of USA. The payment was made as under. 16
On 15th January, 2006- $ 8,000
On 15th February, 2006- $9,000
On 15th March, 2006- $14,500
On 15th April, 2006- $11,000


Deepali Ltd. closes its books on 31st March every year the exchange rate for $ one was as follows.


1st January, 2006 Rs. 48.50 15th January, 2006 Rs. 49.25
15th February, 2006 Rs. 48.25 15th March, 2006 Rs. 48.40
31 st March, 2006 Rs. 48.75 15th April, 2006 Rs. 48.60


(b)Pass journal entries for the subsequent transactions in foreign currency in the books of 'Priyanka Ltd.' Priyanka Ltd. exported goods to 'Jerry Trading Company' Germany worth US $ 90,000/- on tenth January, 2006 on which date exchange rate of US $ one was Rs. 49.50. The payment for the identical was received as under :–
Date of Payment US $ Received Exchange Rate for one US $
25th January, 2006 25,000/- Rs. 49.75
23rd February, 2006 24,000/- Rs. 48.90
24th March, 2006 24,000/- Rs, 48.60
28th April, 2006 17,000/- Rs. 48.90

'Priyanka Ltd' closes its books on 31st March every year. The exchange rate on 31 st March, 2006 was one US $ Rs. 48.75.

Q.9 ans the following:- 16

Adjustments:-

'S' Ltd is to be taken over by 'R' Ltd. 'S' Ltd. has 9% Debentures of Rs. 100/- every of the face value of Rs. 22,50,000/-. 9% debenture holders of 'S' Ltd. are dischanged by 'R' Ltd. issuing such number of its 15% Debentures of Rs. 100/- every so as to maintain the identical amount of interest. compute the No. of debentures to be issued by 'R' Ltd. (4)
What amount should be set aside to get Rs. 15, 00,000 at the end of 10 years? The amount is expected to earn 4% interest. Sinking Fund Table indicates that Re. 0.083290 @ 4% interest will accumulated Re. one at the end of tenth year. (2)
Prepare a -Schedule of Current Liabilities and provision" giving all the details needed under Schedule VI to the Companies Act .(4)
'P' Ltd. Purchased premises worth Rs. 22, 56,000. It problems its debentures at 4% discount in satisfaction of the purchase price. compute how many debentures will be issued in case debenture is of Rs. 100/- every. (2)
'A' Ltd. buys its own 6% Debentures of nominal value Rs. 60,000/- at Rs. 97 cum-interest on first March, 2006. Company cancels these debentures on 31st March, 2006. Pass journal entries in the books of 'A' Ltd. It pays debentures interest half yearly on 30th June and 31st December. Face value of Debenture is Rs. 100/- every .(4)

Earning:   Approval pending.