Paper Code : 67501
M. Com Sem IV -
Corporate Financial Accounting
Q.1) Choose the correct alternate and rewrite the sentence: (30)
1] A Ltd with 60% Shares in Subsidiary B ltd, supplied goods to B Ltd for Rs 60,000 { Cost phul 25%], all goods are held in stock the unrealized profit in stock is
a. Rs 9,000 b. Rs 12,000 c. Rs 15,000 d. 7200
2] Any extra amount over and above the saleable values of the identifiable assets that could be fetched by selling existing frm as à gomg concerm is
a. Super Profit
b. Bonus
c. Goodwill
d. Revaluation Surplus
3] Minority Interest consist of ___________
a. Face Value of Shares, Proportional Revenue and Capital Profits
b. Proportional Revenue Profit only
c. Proportional Capital Profit-only
d. Face value of Shares only
4] ____________ are those accounting principles which are recommended by authority or
enforced by law.
a. Accounting Standards
b. Auditing Standards
c. Accounting Rules
d. Financial Reporting Standards
5) Yield value per share Expected Rate of Dividend/Normal Rate of Dividend x ________ No. Of share.
a. Face value
b. Agree value
c. Called up
d. Paid up value
6] SK Ltd acquired 70,000 Shares of Rs 10 each of DK Ltd | Total shares 1,00,000] on 1 April 2022 at a cost of Rs 9,25,000, the share of Capital and Revenue profit are ascertained at Rs 1.90,000 and 2,70,000 respectively. The minority interest is amounted to
a. Rs 4,60,000 b. Rs 6,22,000
c. Rs 4,38,000
d. Rs 1,38,000
7] Accounting standards are
a. Recommendatory
b. Optional
c. Profit oriented
d. Mandatory
8) Principles regarding _________,are included in Indian Accounting Standard 33.
a. Income Taxes
b. Property and Plant
c. Borrowing Cost
d. Earning per Share
9] Company's taxable income for the year 2020 is Rs. 8,00,000. The tax rate applicable to the company is 30%. For 2020, the company has provided Rs.2,00,000 for income tax. The actual liability for 2020 was decided at Rs.2,15,000. What is paid in 2021?
a.Rs. 2,55,000
b.Rs.2,15,000
c. Rs.2,40,000
d. Nil
10] In which of the following enterprise, not mandated to apply accounting standards by Law?
a. Corporate
b. Co-operative
c. Partnership Firm
d. Government
11] Pre acquisition profit and reserve is
a. Revenue Profit
b. Capital Profit
c. Goodwill
d. Capital Redemption Reserve
12] MKS Ltd acquired 60% shares in KMS Ltd on 1 October 2021 at a price of Rs 18,00,000, the profit and Loss account of KMS Ltd showed a credit balance of Rs 1,00,000 on 1st April 2021 and Credit balance of Rs 3,00,000 on 31 March 2022. the Capital profit is
a. Rs 2,00,000
b. Rs 3,00,000
c. Rs 1,00,000
d. Rs 1,80,000
13] If the amount of investment of holding company in subsidiary company is less than the nominal value of share capital acquired by the holding company, the difference represents,
a. General Reserve
b. Capital Reserve
c. Goodwill
d. Securities Premium
14] Consider the following information relating to PMC Ltd. Profit available for dividend Rs.6,56,000, Share capital Rs.1,00,000 shares @Rs.100per share, Normal rate of return -10%, The share value of the company is
a. Rs. 60
b. Rs. 656.60
c. Rs. 6,566.00
d. Rs. 65.60
15] Intrinsic value
a. Equity share capital / No of equity share
b. Capital employed/No of equity share
c. Asset available to equity shareholder / No of equity share
d. Fixed Assets/Equity share capital
Q.2 The Balance Sheet of MTech Ltd. as on 31st March, 2021 was as follow
|
Liabilities |
Amount |
Assets |
Amount |
|
Equity Share
Capital of Rs.10 each Profit and
Loss A/c Bank
Overdraft Creditors Provision for
tax Proposed Divided Total |
10,00,000 2,06,000 40,000 1,54,000 90,000 1,50,000 |
Building Furniture Stock Debtors |
4,40,000 1,90,000 7,00,000 3,10,000 |
|
16,40,000 |
16,40,000 |
The net profit of the company after deducting all working
charges and providing depreciation and taxation were as under:
|
Year ending |
Rs. |
|
31/03/2017 |
1,70,000 |
|
31/03/2018 |
1,92,000 |
|
31/03/2019 |
1,80,000 |
|
31/03/2020 |
2,00,000 |
|
31/03/2021 |
1,90,000 |
OR
Q.2 The
following is the Balance sheet of M/s Telsa Ltd. At as 31-3-2021. (10)
|
Liabilities |
Amount |
Assets |
Amount |
|
Issued and fully
paid-up: 1,60,000 8%
Cumulative Preference Share of Rs. 10 each 1,20,000
Equity Shares of Rs.10 each General
Reserve Profit &
Loss A/c Current Liabilities
and Provisions: Current Liabilities Provision for
Depreciation Provision for
Taxation Proposed Divided |
16,00,000 12,00,000 4,40,000 4,00,000 4,00,000 18,20,000 3,60,000 3,40,000 |
Fixed Assets: Land &
Building Plant &
Machinery Furniture Current
Assets: Stock in
Trade Debtors Cash and Bank
Balance Miscellaneous
Expenses: Deferred
Advertising Expenses |
8,80,000 17,60,000 3,20,000 12,40,000 14,00,000 6,80,000 2,80,000 |
|
|
65,60,000 |
|
65,60,000 |
The Net Profit after Tax for the last 3 years ended 31st
March. 2021 is as given below
|
Year |
Net Profit (Rs.) |
|
2018-2019 2019-20 2020-21 |
12,20,000 18,00,000 22,40,000 |
Q.3 Following are the Profit and Loss A/c of
Hindustan Ltd. And Subsidiary Company Sony Ltd. For the year ended 31st
March. 2022. (10)
|
Particulars |
Hindustan
Ltd (Rs. In Lakh) |
Sony Ltd (Rs. In Lakh) |
|
Income: Sale or other
Income Increase in
Stock Expenses: Raw material
Consumed Wages and
Salaries Administration
Expenses Selling and
Distribution Expenses Interest Depreciation Profit before
Tax Provision for
Tax Profit after
Tax Proposed Dividend Balance of
Profit |
10000 2000 |
2,000 400 |
|
12,000 |
2,400 |
|
|
2000 1600 400 400 200 200 |
600 300 200 100 100 100 |
|
|
4800 |
1400 |
|
|
7200 2400 |
1000 400 |
|
|
4800 2400 |
600 300 |
|
|
2400 |
300 |
Other Information:
|
Liabilities |
Sun Ltd |
Moon Ltd |
Assets |
Sun Ltd |
Moon Ltd |
|
Equity Share
Capital (of Rs. 10 Each) |
450,000 |
125,000 |
Fixed Assets |
40,000 |
110000 |
|
General
Reserve |
80,000 |
20,000 |
Investment
(7500 equity share In m00) |
77.5000 |
|
|
Profit &
Loss A/c |
40,000 |
12500 |
Current Year |
137500 |
72500 |
|
Trade payable |
45,000 |
25,000 |
|
|
|
|
|
|
|
|
615,5000 |
182,500 |
The following additional information is provided to you:
1. Profit earned by Moon Ltd for the year ended 31 March, 2022 amounted to Rs.10,000
2. General reserve balance appearing in the balance sheet of Moon Ltd has remained unchanged since 1 April, 2021.
Calculate following data required to prepare consolidated Balance sheet
1. Working of Capital Profit and Revenue profit of Moon Itd
2. Goodwill or Capital reserve 3. Non-controlling Interest (minority interest)
4. Notes to accounts of Share Capital and Reserve & Surplus
Q.4. A) Calculate basic EPS as per IND AS 33 from the following information: Share Capital as on 1/4/2020, 1 lakh Equity Shares of Rs. 10 each.
Issue of right shares for cash on 1/7/2020 in the ratio of one share for every 5 shares held. Issue of Bonus shares (excluding right shares) in the ratio of one share for every five shares held on 1/10/2020. Net Profit (before tax) for 2020-21, Rs. 4,00,000. Income tax rate is 40%.
B) State whether IND AS 16 is applicable to the following assets:
1. Equipment held for sale
2. Bearer plant
3. Biological assets
4. Mineral rights
5. Property
OR
Write Short Notes on any two (10)
a. Financial Reporting
b. Objectives of IND AS 33-
c. Intrinsic Value method of Valuation of Shares
d. Treatment of Pre and Post acquisition profits in Consolidated statements
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