Acharya Nagarjuna University (ANU) 2006 M.Com Commerce III - ADVANCED FINANCIAL ACCOUNTING - Question Paper

To Share Discount a/c 18,000
To Leasehold premises a/c 30,800
To Plant and Machinery a/c 8,440
To Stock-in-trade a/c 15,000
To Bad debts provision a/c 15,300
To Patents a/c 5,00,000
To Capital reserve a/c 35,460

7,50,000 7,50,000

Prepare Balance Sheet of Gayatri Ltd. after capital reduction.

7. From the subsequent info prepare Balance Sheet with as many details as possible.
(a) Stock velocity - 6
(b) Capital turnover ratio - 2
(c) Fixed assets turnover ratio - 4
(d) Gross profit ratio - 20%
(e) Debtors velocity - two months
(f) Creditors velocity - 73 days.

Gross Profit Rs.60,000; Reserves and Surplus Rs.20,000; Closing stock is in excess of Rs.5,000 than opening stock.

8. From the subsequent details of VSP Ltd. as at December 31, 2004, calculate the net monetary outcome.
January 1, 2004 December 31, 2004
Rs. Rs.
Cash 5,000 10,000
Book Debts 20,000 25,000
Creditors 15,000 20,000
Loan 20,000 20,000

Retail Prices Index Numbers:
January 1, 2004 200
December 31, 2004 300
avg. for the year 240


part C - (2 X 20 = 40 marks)
ans any 2 of the subsequent.

9. H Ltd. acquired 20,000 (4/5th) equity shares of S. Ltd. of Rs.100 every on 31st March 2005. The Balance Sheets of H Ltd. and S Ltd. as 31, March, 2005 were as follows:
Balance Sheet
Liabilities H. Ltd. S. Ltd. Assets H.Ltd. S.Ltd.
Rs. Rs. Rs. Rs.

Shares capital in shares of Fixed Assets 70,00,000 25,00,000
Rs.100 every 80,00,000 25,00,000
Reserves 30,00,000 5,00,000 Current Assets 40,00,000 20,00,000
Profit and Loss a/c 10,00,000 10,00,000 20,000 shares
in S Ltd. 30,00,000 ------
Creditors 20,00,000 5,00,000

1,40,00,000 45,00,000 1,40,00,000 45,00,000

S Ltd., had the credit balance of Rs.5,00,000 in the reserves and Rs.2,00,000 in the Profit and Loss Account when H Ltd. acquired the shares in S Ltd. S Ltd. issued bonus shares @ one for every five shares held out of post acquisition profits. This is not shown in the above balance sheet of S Ltd. Prepare consolidated balance sheet.


10. The subsequent informations are found from the books of Simhadri Steels Limited as on 31st March 2005:
Rs.
Capital 10,000 Equity shares of Rs.10 every fully paid up 1,00,000
10,000 Equity shares of Rs.10 every Rs.7.50 per share called and paid up 75,000
10,000 Equity shares Rs.10 each, Rs.5 per share called up and paid up 50,000
General Reserve 1,35,000
Liabilities to sundry parties 55,000
Fixed assets loss depreciation 1,67,000
Commission on problem of shares 6,000
Preliminary expenses 9,000
Floating assets 2,33,000

It is estimated that the normal avg. profit less tax of the company will be maintained at Rs.36,000 and the expected capitalisation purpose is 8%. compute the values of every kind of shares by the asset backing method (excluding goodwill) and also by the earning capacity method. presume dividends are declared on paid up capital.

11. Distinguish ranging from Profit and Loss Account and Value added statement.


12. From the Balance Sheets of ABC Ltd. make out statement of modifications in financial position.
Balance Sheets
Liabilities 2003 2004 Assets 2003 2004
Rs. Rs. Rs. Rs.

Equity share capital 3,00,000 4,00,000 Goodwill 1,15,000 90,000
8% Pref. share capital 1,50,000 1,00,000 Land and Buildings 2,00,000 1,70,000
General Reserve 40,000 70,000 Plant 80,000 2,00,000
Profit and Loss a/c 30,000 48,000 Debtors 1,60,000 2,00,000
Proposed Dividends 42,000 50,000 Stock 77,000 1,09,000
Creditors 55,000 83,000 Bills Receivable 20,000 30,000
Bills payable 20,000 16,000 Cash in Hand 15,000 10,000
Provisions for taxation 40,000 50,000 Cash at Bank 10,000 8,000

6,77,000 8,17,000 6,77,000 8,17,000

subsequent is the additional info available:
(a) Depreciation of Rs.10,000 and Rs.20,000 have been charged on Plant and Land and Buildings respectively in 2004.
(b) An interim dividend of Rs.20,000 has been paid in 2004.
(c) Income tax of Rs.35,000 has been paid in 2004.

Earning:   Approval pending.