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Roll No……… Total No. of Questions — 7] [Total No. of Printed Pages — 8 Time Allowed : 3 Hours Maximum Marks : 100
Answers to questions are to be given only in English except in the cases of candidates who have opted for Hi medium. If a candidate who has not opted for Hindi medium, his answers in Hindi will not be valued. Q.No. 1 is compulsory. Attempt any five questions from the remaining six questions. Working notes should form part of the answer. Wherever necessary suitable assumptions may be made by the candidates.
- Answer the following questions: 4x5= (i) Rama Limited issued 8% Debentures of Rs.3,00,000 in earlier year on which interest is payable half yearly on 31st March and 30th September. The company has power to purchase its own debentures in the open market for cancellation thereof. The following purchases were made during the financial year 2009–10 and cancellation made on 31st March 2010: (a )
On 1st April Rs.50,000 nominal value purchased for Rs.49,450, ex–interest.
(b )
On 1st September Rs.30,000 nominal value purchased for Rs.30,250 cum interest. Show the Journal Entries (without narrations) for the transactions held in the year 2009–10.
(ii) From the following information of details of advances of Zenith Bank Ltd., calculated the amount of provisions to be made in Profit and Loss Account for the year ended on 31–3–2010: Assets Classification Rs. (in Lakh) Standard Sub–Standard Doubtful: for one year for two years for three years for more than three years Loss Assets
(iii) While preparing its final accounts for the year ended 31st March 2010, a company made a provision for bad–debts @ 4% of its total debtors (as per trend follows from the previous years). In the first week of March 2010 a debtor for Rs.3,00,000 had suffered heavy loss due to an earthquake; the loss was not covered by any insurance policy. In April 2010 the debtor become a bankrupt. Can the company provide for the full loss arising out of insolvency of the debtor in the final accounts for the year ended 31st March 2010. (iv) “Recognizing the need to harmonize the diverse accounting policies and practices, accounting standards are framed.” Give examples of areas in which different accounting policies may be adopted by enterprise.
- A, B, C and D are sharing profits and losses in the ratio 5:5:4:2. Frauds committed by C during the year were found out and it was decided to dissolve the partnership on 31st March 2010 when their Balance Sheet was as under: Liabilities Amount (Rs.)
Assets Amount (Rs.) Capital A B C D General reserve Trade creditors Bills payable
Building Stock Investments Debtors Cash C
Following information is given to you:
(i) A cheque for Rs.4,300 received from debtor was not recorded in the books and was misappropriated by C. (ii) Investments costing Rs.5,400 were sold by C at Rs.7,900 and the funds transferred to his personal account. This sale was omitted from the firm’s books. (iii) A creditor agreed to take over investments of the book value of Rs.5,400 at Rs.8,400. The rest of the creditors were paid off at a discount of 2%. (iv) The other assets realised as follows: Building Stock Investments Debtors
105% of book value Rs.78, The rest of investments were sold at a profit of Rs.4, The rest of the debtors were realised at a discount of 12%.
(v) The bills payable were settled at a discount of Rs.400. (vi) The expenses of dissolution amounted to Rs.4,900. (vii )
It was found out that realisation from C’s private assets would only be Rs.4,000.
- Extra Ltd. furnishes you with the following Balance Sheet as on 31st March, 2010:Prepare the necessary Ledger Accounts. Liabilities Amoun t
Assets Amount
Share Capital Equity Shares of Rs.10 each fully paid 9% Redeemable Preference Shares of Rs.100 each fully paid Capital Reserves Revenue Reserves Share Premium 10% Debentures Current Liabilities
Fixed assets less depreciation Investments at cost Current assets
November 2010
Payable–31.03. Claims: Paid Payable–01.04. Payable–31.03. Received Receivable–01.04. Receivable–31.03.
- Following is the Balance Sheet of Y Ltd., as at 31st March 2010: Liabilities Rs. Assets Rs. Share Capital Fixed Assets Issued & paid up: 2,50,000 equity share of Rs.10 each Rs.8 per share paid up
Goodwill Building Plant and machinery
1,00,000 (10%) pref. shares of Rs.10 each fully paid up
10,00,000 Current Assets Stock (^) 7,00, Reserves & Surplus Sundry debtors (^) 9,00, General reserve Profit & Loss A/c
Bank Balance 6,60,
Current Liabilities Misc. Exp. Creditors Workmen’s profit sharing fund
Preliminary Expense 40,
X Ltd. decided to absorb the business of Y Ltd. at the respective book value of assets and trade liabilities except Building which was valued at Rs.12,00,000 and Plant & Machinery at Rs.10,00,000. The purchase consideration was payable as follows:
(i) Payment of liquidation expenses Rs.5,000 and workmen’s profit sharing fund at 10% premium; (ii )
Issue of equity share of Rs.10 each fully paid at Rs.11 per share for every pref. share and every equity share of Y Ltd., and a payment of Rs.4 per equity share in cash.
Calculate the purchase consideration, show the necessary ledger accounts in the books of Y Ltd., and
- opening Journal Entries in the books of X Ltd.(a) A Commercial Bank has the following capital funds and assets. Segregate the capital funds into Tier I and Tier II capitals. Find out the risk adjusted asset and risk weighted assets ratio. Rs. (in crores) Equity Share Capital Statutory Reserve Capital Reserve (of which Rs.16 crores were due to revaluation of assets and the balance due to sale of capital asset) Assets: Cash balance with RBI Balance with other banks Other investments
November 2010
Loans and advances: (i) Guaranteed by the Government (ii) Others Premises, furniture and fixtures Off–Balance Sheet items: (i) Guarantee and other obligations (ii) Acceptances, endorsements and letter of credit
(b) The Super Electricity Company maintains accounts under the Double Accounts System. It decides to replace one of its old plant with a technologically advanced plant with a larger capacity. The plant when installed in 2000 cost the company Rs.90,00,000, the components of materials, labour and overheads being in the ratio 5:3:2. It is ascertained that the costs of materials has gone up by 200% and the cost of labour has gone up by 300%. The proportion of material, labour and overheads has changed to 10:9:6. The cost of the new plant is Rs.2,80,00,000 and in addition, goods worth Rs.12,60,000 have been used in the construction of the new plant. The old plant was scrapped and sold for Rs.19,00,000. Find out the amount to be capitalised and also the amount to be charged to revenue. Draw the necessary Ledger Accounts.
- Answer any four of the followings: 4x4=
(a) Following is the information of the Jammu branch of Best Ltd., New Delhi for the year ending 31st March 2010 from the following: ( )
Goods are invoiced to the branch at cost plus 20%.
The sale price is cost plus 50%.
Other informations; Rs. Stock as on 01–04– Goods sent during the year Sales during the year Expenses incurred at the branch
Ascertain (i) the profit earned by the branch during the year (ii) branch stock reserve in respect of unrealized profit. (b) Ram Ltd. had 12,00,000 equity shares on April 1, 2009. The company earned a profit of Rs.30,00,000 during the year 2009–10. The average fair value per share during 2009–10 was Rs.25. The company has given share option to its employees of 2,00,000 equity shares at option price of Rs.15. Calculate basic E.P.S. and diluted E.P.S. (c) On 1st April 2009 Amazing Construction Ltd. obtained a loan of Rs.32 crores to be utilized as under: (i) Construction of sealink across two cities: (work was held up totally for a month during the year due to high water levels) : Rs.25 crores
(ii) Purchase of equipments and machineries : Rs.3 crores
