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1. What is clear profit ? How will you calculate clear profit ? (3)
2. Best Power Ltd. received Rs. 1,00,000 as security deposit from its consumers on 1" October 2020. RBI interest rate as on 1ª April 2020 was 10%. Pass the journal entries in the book of Best Power Ltd. for the year ended 31* March 2021. (3)
3. Distinguish between Single account system and Double account system. (3)
4. What is Accelerated Power Development and Reforms Programme ? (3)
5. 'Even though both right issue and bonus issue of shares increase the number of shares and the amount of paid up share capital, they are not the same'. Do you agree with this statement ? Explain. (3)
6. How will you disclose the following items while preparing the Balance Sheet of a company as per Schedule IIl to the Companies Act, 2013 7
1) Proposed dividend 2) Calls in advance 3) Calls in arrear 4) Outstanding expense 5) Provision for tax 6) Advance tax paid. (3)
7. What is buy back of shares ? What are its objectives ? (3)
8. What is Profit/Loss prior to incorporation ? What are the purposes for which pre-incorporation Profit can be used ? (3)
9. Write a note on Intrinsic value of shares. (3)
10. What are the different methods of accounting for amalgamation in the books of the acquirer company ? (3)
11. Who is a dissenting shareholder ? How the shares of dissenting shareholders are acquired by the transferer company ? (3)
12. What are the different situations of Inter company holdings ? (3)
13. Write a short note on contributory. (3)
14. What is deficiency account ?
-2 (3)
15. How will you treat Goodwill appearing in the Balance sheet of Subsidiary Company 7 (3)
16. Briefly explain the accounting treatment of issue of Bonus shares by Subsidiary Company (3)
17. The profit volume ratio of A Ltd. is 50% and the margin of safety is 40%. You are required to calculate the net profit if the sales volume is Z 1,00,000 (3)
18. What is a cost driver ? Give two examples. (3)
19. What is ERP 7 What are the core sub systems of ERP ? (3)
20. What is Target costing 7 What are the techniques used for Target costing ? (3)
21. Define accounting standard. What are its objectives ? (5)
22. What is Ind AS 7 What are the benefits of adopting Ind AS ? (5)
23. The following details were collected from the books of New Generation Electricity Company, You are required to calculate the reasonable return.
Rs. in lakh Loan from Electricity Board 1,000 Reserve fund investment at par (5%] 2,000 Development Reserve 10% Debentures 1,000 Contingency reserve investment at par (4%) 2,000 Capital base of the company 10,000 Bank rate 8% (5)
24. What are the main features of The Electricity Act, 2003 7 (5)
25. Liabilities and Assets of X Ltd. and Y Ltd. are given below as at 31" March, 2017.
Liabilities X Ltd. Y Ltd. Assets X Ltd. Y Ltd. Share Capital 2,00,000 4,00,000 Sundry Assets 3,10,000 6,00,000 (10) (no Goodwill) Reserves & Surplus 40,000 1,00,000 Loan of Y Ltd 30,000 – 7% debentures ({100) 1,00,000 Investments : Loan from X Ltd. – 30,000 5000 shares in Y Ltd. 50,000 Other Liabilities 50,000 70,000 3,90,000 6,00,000 3,90,000 6,00,000
-3- Y Ltd. takes over X Ltd. on the following terms :
a) YLtd. will issue sufficient number of shares at 711 each and pay 50 paise cash per share held by
members of Z Ltd.
b) 7% debentures of X Ltd. are taken over by Y Ltd. along with other liabilities of X Ltd.
You are required to calculate the amount of purchase consideration as per Net Asset Method. (5)
26. Pass Journal entries for the following transactions.
i) Conversion of 2 lakh fully paid equity shares of 210 each into stock of 71,00,000 and balance has 12%
fully convertible debentures.
ii) Consolidation of 40 lakh fully paid equity shares of 72.50 each into 10 lakh fully paid equity share of
710 each.
iii) Sub division of 10 lakh fully paid 11% preference shares of 250 each into 50 lakh fully paid 11%
preference shares of 710 each
iv) Conversion of 12% preference shares of Z 5,00,000 into 14% preference shares of €3,00,000 and
remaining balance as 12% Non cumulative preference shares. (5)
27. MN Ltd. went into liquidation with the following liabilities :
Secured Creditors 7 40,000 (securities realised 750,000) Preferential creditors T 1,200 Unsecured creditors Z 61,000 Liquidation expenses · 500 The Liquidator is entitled to a remuneration of 3% on the amount realised (including securities in the hands of secured creditors) and 1%% on the amount distributed to unsecured creditors. The various assets (excluding the securities in hands of the secured creditors) realised are R 52,000. Prepare the Liquidator's statement of Account showing the payment made to the unsecured creditors. (5)
28. A Liquidator is entitled to receive remuneration @ 2% of the assets realised and 3% of the amount distributed among the unsecured creditors. The assets realised ? 25,00,000 against which payment was made as follows :
Liquidation expenses · 25,000 Preferential creditors · 75,000 Secured creditors T10,00,000 Calculate the remuneration payable to the Liquidator. (5)
29. A company has a fixed cost of ? 2,00,000. It sells two products – X and Y in the ratio of 2: 1. If contribution of Xis & 10 per unit and of Y is & 20 per unit, how many units of each Xand Y would be sold at Break Even Point 7 (5)
30. In afactory, works overhead are absorbed at 60% of labour cost and office overheads at 20% of works cost. Prepare
i) Cost sheet
ii) Profit and Loss Account and
i] Reconciliation statement if total expenditure consists of Material ? 2,00,000; Wages 7 1,50,000; Factory Expenses ? 1,00,000 and Office expenses $ 85,000, 10% of the output is stock at the end and sales are 5,20,000. (5)
31. Following balances are extracted from the books of Green Electricity Co. Ltd. as on 31" March 2021.
Rs. in lakh Debit Balances Capital Expenditure on 31-3-2020 2,60,000 Capital Expenditure during 2020 – 21 20,000 Sundry Debtors for current supplied 10,000 Other Debtors 1,000 Stores in hand 2,000 Cash in hand 2,000 Cost of generation of electricity 8,000 Cost of distribution of electricity 1,000 Rent, Rates and Taxes 2,000 Management Expenses 4,000 Depreciation 6,000 Interest on Debentures 4,000 Interim dividend 5,000 Credit Balances Equity Shares 1,50,000 Debentures 50,000
-5- Sundry Creditors for open accounts 1,000 Depreciation Fund 75,000 Sale of current 40,000 Meter rent 2,000 Balance of Net Revenue A/c as on 1-4-2020 7,000 Prepare :
a) Capital Account
b) Revenue Account
c) Net Revenue Account and
d) General Balance Sheet (8)
32. Raja Ltd. offered for public subscription 10,000 shares of Rs. 10 each at Rs. 11 per share. Money payable as follows.
On application – Rs. 3 (including premium) On allotment – Rs. 4 On first and final call – Rs. 4 Applications were received for 11,000 shares and the directors made pro-rata allotment. All calls were made and all money were received except the following. Ajin to whom 100 shares were allotted could not pay the allotment money and call money. Balu, the holder of 200 shares failed to pay the call money. All these shares were later forfeited. Out of the forfeited shares, 150 shares (the whole of Ajins shares being included) were re-issued at Rs. 9 per share. Pass journal entries for the above transactions. (8)
33. Following is the extract of Balance Sheet of SISCO Ltd. as on 31" March, 2020.
Liabilities Assets Equity share capital 15,00,000 Land and Buildings 10,00,000 Profit and Loss A/c 2,00,000 Plant and Machinery 5,00,000
-6- General Reserve 3,00,000 Investments 2,00,000 Debentures 2,00,000 Stock 3,00,000 Creditors 3,00,000 Debtors 4,00,000 Bank 1,00,000 25,00,000 25,00,000 SISCO Ltd. was absorbed by Dreamers Ltd. on the above date on the following terms.
a) Purchase consideration ? 19,60,000 to be given in the form of 14,000 equity shares of ? 100 each
at a premium of ? 40 per share. b] Dreamers Ltd. to take over all assets except debtors which realised ? 1,00,000. c] Dreamers Ltd. to take over debentures and creditors. Show Realisation and Equity share holders account in the books of SISCO Ltd. (8)
34. Ventures Ltd. went into voluntary liquidation and the proceedings commenced on 2d July 2014. Certain creditors could not receive payment out of the realisation of assets and out of the contributions from the contributories of the 'A' list. Following details of share transfers are made available to you.
Name of the No. of Date of the Creditors transferer shares transferer ceasing remaining unpaid share holder transferred to be a member and outstanding at the time of the transferer ceasing to be a member (f) P 1,000 01-03-2013 16,000 Q 1,250 15-08-2013 18,000 R 01-10-2013 10,750 2,000 01-12-2013 13,000 T 01-04-2014 15,000 All the shares were of ? 10 each, on which ? 5 per share had been paid up. Ignoring other details like liquidator's expenses etc., you are required to work out the liability of the individual contributories listed above. (8)
35. Following are the data of product New Magic for next year Budget.
Activity Cost Driver Cost Driver Cost pool () Volume/year Purchasing Purchase orders 1,500 75,000 Setting Batches produced 2,800 1,12,000
3. 101/23
Materials Handing Mavenient 8,000 96,000 Inspection No. of batches 2,800 70,000 Machining cost Machine Hours 50,000 1,50,000
Purchase orders — 25
Output = 15,000 units
Production Batch size – 100 units Materials movement per batch – 6 Machine Hours per unit = 0.1
Required –
i) Calculate the budgeted overhead cost using Activity Based Costing.
ii) Calculate the budgeted overhead cost using absorption costing.
iii} How can the company reduce the ABC for product New Magic ? (8)
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