Assam University 2007 B.Com Corporate Accounts Management - Question Paper

Reserves and Surplus 1,00,000
Current liabilites 2,00,000
10,00,000 10,00,000
Nishanth Ltd., is interested in purchasibing substantial number of equity shares of Nischal Ltd.,For this
Purpose ,you are requested to ascertain in intrinsic value of every class of equity share assuming that the value of fixed assets is 20% more and the value of current assets is 10% less


6.Following is the balance sheet of Pooja Ltd., as at 31-3-2007
LIABILITIES Rs. ASSETS Rs
Equity shares of Rs 10 every 8,00,000 fixed assets 12,00,000
Reserve Fund 1,00,000 Current assets 3,00,000
12% Debentures 2,00,000
Current liabilities 4,00,000
15,00,000 15,00,000
The profit of the company for the past three years before charging interest on debentures
Were Rs. 1,52,000; Rs. 1,56,000 and Rs. 1,54,000 respectively. Normal rate of return is 12%.You are needed to ascertain the yield value of shares assuming that 20% of the profit is transferred to reserve fund every year(Ignor taxation)

7.From the subsequent particulars of Rajesh Ltd.,prepare Profit and Loss Appropriation A/c
a) Net profit before tx Rs. 16,75,000
b) Provision for taxation 33.5%
c)Transfer to Reserve Fund 20% after tax
d)Share capital:
i)30,000, 15% preference shares of Rs. 100 every
Ii)30,000, equity shares of rs. 100 every Rs 75 paid

8)State any 5 advantages of underwriting
9)State any 5 circumstances executing evaluation of shares

SECTION-C
ans any 3 of the following(3*15=45)


10.Apoorva Ltd., issued 5,00,000 equity shares of Rs.10 every at a premium of 20%
The whole of the problem is underwritten by Apoorva ,Bhoomika and Chaitra as under:
Apiirva -2,50,000 shares (Firm underwriting 25,000 shares)
Boomika-1,50,00 shares(Firm underwriting 15,000 sh ares)
Chitra-1.00.000 shares(Firm underwriting 10,000 shares)
The underwriting commission is 5% on the problem price and the company agreed to treat firm
Underwriting application as marked forms.
Thae company received application for 4,00,000 rquity shares (excluding firm underwriting )of which marked forms were as under:
Apoorva-1,15,000 shares
Bhoomika-1,25,000 shares
Chaitra -1,30,000 shares
You are needed to show -
a)Net liability of underwriters in terms of number of shares
b)Commission due to every underwriter and
c)Net amount from every underwriter to the company



11.Following is the Balance sheet of Bhaskar Ltd.., as at 31-3-2007
LIABILITES Rs ASSETS Rs
Preference shares 30,000 Fixed Assets 4,50,000
Shares of Rs. 10 every 3,00,000 Investments 5,00,000
(-)Calls in arrears 25,000 2,75,000 Stock and Dedtors 2,00,000
Equity shares Cash and Bank 50,000
40,000 shares of Rs.10 every 2,00,000
General Reserve 2,00,000
Current Liabilities 3,25,000
12,00,000 12,00,000
On the above date the preference shares are redeemed .Calls in arrears were recovered in full and sufficient number of equity shares of Rs. 10 every are issued at a premium of 50% .For the purpose of making payement to preference shareholders,
Bank overdraft facility is organizes to the extent necessary so as to leave cash and bank balance at Rs. 30,000

You are needed to pass necessary journal entries and show the balance sheet after redemption


12.The subsequent particulars are available in respect of the business =carried on by Indira Ltd.,
1)Profit earned for the years:
2004-05 Rs.50,000
2005-06 Rs 60,000
2006-07 Rs.55,000
2)Profit of 2004-05 included a non -recurring income of Rs.5,000
3)During the year 2005-06 closing stock was undervalued by Rs.10,000
4)Normal rate of return 10%
5)average capital employed Rs. 3,00,000
6)Present value of an annuity of 1 rupee for five years at 10% is Rs 378

You are needed to compute the bvalue of goodwill:
a) As per 5 years purchase of super profits
b) As per capitalisation of super profits and
c) As per Annuity Method

13.From the provided Balance Sheet and other info you are needed to ascertain
The value of equity shares under:
1)Intrinsic value method
2)Yield value method and
3)Fair value method.Ignore taxation
BALANCE SHEET OF RKS Ltd., AS AT 31-3-2007
LIABILITIES Rs. ASSETS Rs.
2,000 shares of Rs . 100 every 2,00,000 Land and Buildings 1,10,000
General Reserve 40,000 Plant and Machinery 1,30,000
P and L A/c 32,000 Patents and Trade marks 20,000
Creditors 1,28,000 stock 48,000
Bills Payable 60,000 Debtors 88,000
Cash and Bank 52,000
Preliminary Expenses 12,000
4,60,000 4,60,000
An independent valuer valued the assets of the company as under:
Land and Building Rs. 2,40,000; Goodwill Rs. 1,60,000 and Plants and Machinery
Rs. 1,20,000. The other assets are worth their book value
The profits of the company have been as follows:
2004-05-Rs80,000
2005-06-Rs90,000
20006-07-Rs1,06,000The company follows the practice of transferring 25% of profits to general reserve
Normal rate of return is 12%


14Following are the balances of NSK ltd., as at 31-3-2007 .You are needed to prepare Final Accounts of the company after taking additional info into
Consideration:
DEBITS Rs. CREDIT Rs.
Premises 30,72,000 Share capital 40,00,000
Plant 33,00,000 12% debentures 30,00,000
Stock on 1-4-2006 7,50,000 P and L A/c 2,62,500
Debtors 8,70,000 Creditors 7,70,000
Goodwill 2,50,000 Sales 41,50,000
Cash and Bank 4,06,500 general Reserve 2,50,000
Calls-in-arrears 75,000 RDD on 1-4-2006 35,000
Interim dividened paid 3,92,5000
Purchases 18,50,000
Preliminary Expenses 50,000
Wages 9,79,8000
General Expenses 68,350
Salaries 2,02,250
Bad debts 21,100
Debenture interest paid 1,80,000
1,24,67,500 1,24,67,500
ADDITIONAL INFORMATION:
1)Closing stock is valued at Rs. 10,50,000
2)Depreciation plant at 15%
3)Write off Rs. 5,000 from preliminary expenses
4)Half year debenture interest is due
5)Write of Rs. 20,000 futher bad debts and create new reserve for bad debts at
5% on debtors
6)Transfer Rs.25,000 to General Reserve
7)Ignore corporate dividened tax

Earning:   Approval pending.