M.Com-M.Com Accountancy 2nd Year Paper - III : Advanced Financial Accounting (Acharya Nagarjuna University - Center for Distance Education, Guntur, Andhra Pradesh-2013)

(DCM 23)
M.Com. (Final) DEGREE EXAMINATION, DEC. - 2013
Second Year
A - ACCOUNTING
Paper - III : Advanced Financial Accounting

 

 

Time : 03 Hours                                                                    Maximum Marks : 80

 

___________________________________________________________________________

 

SECTION-A

Answer any Five of the following

(5 × 4 = 20)

1) a) Role of financial advisor

b) Current Ratio

c) Yield method

d) Annuity method

e) Holding Company

f) Objects of financial reporting

g) HRA

h) Consolidated balance sheet


SECTION-B
Answer any Four of the following
(4 × 5 = 20)

2) What are the uses of funds flow analysis?


3) How do you measure profitability of company?


4) How do you compute minority interest?


5) What are the advantages of adequate disclosure?


6) Enumerate the recent trend towards published accounts.


7) Elucidate the factors that influence good will.


8) Explain the role of fundamental analysis in the valuation of shares.


SECTION-C
Answer any Two of the following
(2 × 20 = 40)

9) From the Balance Sheets of Aravind Co. Ltd. you are required to prepare Cash Flow  Statement:

 

Liabilities 31.12.03 31.12.04 Assets 31.12.03 31.12.04

7% preference Shares - 10,000 Fixed Assets 41,000 40,000

Equity Shares 40,000 40,000 Less: Depreciation 11,000 15,000

General reserve 2,000 2,000 30,000 25,000

P & L A/c 1,000 1,200 Debtors 20,000 24,000

Debentures 6,000 7,000 Stock 30,000 35,000

Creditors 12,000 11,000 Cash 1,200 3,500

Taxation provision 3,000 4,200 Prepaid expenses 300 500

Proposed dividend 5,000 5,800

Bank overdraft 12,500 6,800

81,500 88,000 81,500 88,000

81,500 88,000 81,500 88,000
10) Balance Sheet of Kim Company as on 31.12.2006 is given below:
Liabilities Rs. Assets Rs.
30,000 shares of Rs. 10 each 3,00,000 Goodwill 30,000
Capital resource 50,000 Buildings 1,95,000
Creditors 81,000 Plant 1,21,000
Provision for Taxation 40,000 Stock 1,15,000
P & L A/c 41,000 Book debts 50,000
Cash 1,000

          5,12,000                                    5,12,000

 

Other information:
a) Rate of income tax may be taken at 40%.
b) Average rate of dividend for the past five years was 15%.
c) Reasonable rate of return on capital invested by the Company is 12%.
Calculate Goodwill.


11) Explain the preparation of consolidated balance sheet.


12) Examine different methods of valuing shares.

Earning:   Approval pending.