B.Com In Investment Management SEM V 2019 2020 Nov 2020 INVESTMENT MGT COPORATE ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A. Multiple choice questions: (attempt any 8) 8 marks
   • 1. On each sale of investment, the profit or loss is calculated as
   • (C) Sale Price Less Cost On Fifo Basis (D) Sale Price Less Cost On Lifo Basis
   • 2. ABC sells 100 Debentures of nominal value of Rs. 100 each of ICICI Ltd. at Rs. 98 (ex-interest) on 3-2019 to XYZ. Interest @ 12% p.a. is to be paid half-yearly on 30th June and 31st December, Total amount received is
   • 3. XYZ buys 200 Debentures of nominal value of 100 each of ICICI Ltd. at Rs. 98(ex-interest) on 1-3-2019 from ABC. Interest@12%p.a.is to be paid half-yearly on 30th June and 31st December Price paid by XYZ towards capital is
   • 4. Profit on sale of investment
   • (A)Is Transferred To Profit & Loss A/C only if the Investment Is Current Investment
   • (B) Is Transferred To Profit & Loss A/C
   • (c) Is Transferred to Capital Reserve if the is Long Term Investment
   • (d) the Above
   • 5. Amount of Arrears of cumulative dividends
   • (A) Is Debited To the Profit And Loss A/C of A Company as Provision for Proposed Dividends
   • (B) Is Pref. Share-Capital in the Balance Sheet of a Company
   • (c) Is added to Preference share Capital in the Balance Sheet of a Company
   • (d) Is shown by way of a note to all the balance Sheet of a Company under Contingent Liabilities
   • 6. The Broad Headings under Which Balance Sheet Is Divided Under the Revised Schedule VI Are
   • (A)'Liabilities' and 'Assets'
   • (B)'Equity and Liabilities' and 'Assets'
   • (C)'Sources of Funds' and 'Application of
   • (D)'Current' and 'Non-Current'
   • 7. Where a company constructs office buildings for third parties and the construction normally takes two to three years to complete, the company's construction work in progress would be classified as:
   • (c) A long term loans and advance (d) A current asset
   • 8. Goodwill is an asset
   • (a) Tangible (b) Intangible
   • (c) Current Marketable Securities (d) None of the-above
   • 9. Under valuation of Shares, Net Asset Method is also called as
   • (a) 1 & 3 only (b) 1 only
   • 10. are called-as-the true owners of the organisation’
   • (c) Debenture holders (d) None of the above
2. Q1 B. State the following statements which is True or False (any 7) 7 marks
   • 1. Capital profit realised in cash can be used for paying dividend
   • 2. Dividend can be paid out of capital, but interest cannot be paid out of capital
   • 3. One of the few assets that is usually not depreciated is Goodwill
   • 4. Future bad debts are usually estimated as percentage of debtors
   • 5. Ifa security is transferred on the exact date when interest falls due, the entire interest upto that due date belongs to the purchaser
   • 6. Ifa security is transferred on any date other than the due date for payment of interest, the purchaser has the right to claim the Interest upto the date of transfer as his income
   • 7. Ifa security is transferred on any date other than the due date for payment of interest, the seller has the right to claim the Interest after the date of transfer as his income j 8. Yield Value of is also known as Earning Capacity Method under Valuation of Equity Shares
   • 9. Corporate Accounting deals with everything which is related to costing of a product including the
   • 10. Corporate Accounting involves preparation of Final Accounts and its Notes to Final accounts as specified in Schedule II of Companies Act, 2013
3. Q2 a. Explain Accounting for Issue of Shares at Par with journal entries for application stage to call stage
4. Q2 b. Following is the trial balance of Bharavi Ltd. As on 31 March, 2019: Profit and Loss A/c (Opening Balance 15 marks
   • 1. Transfer to General Reserve Rs. 5000,
   • 2. Out of Debtors, debts due for more than six months were Rs. 52000
   • 3. Sundry Creditors included creditors for goods Rs. 105000, while the remaining are expenses
   • 4. Market Rs. 78000 while its face value is Rs. 60000 Prepare Balance Sheet-as 31* March, 2019 as per legal requirements after considering the above
5. Q3 a. Myra Investments hold 1,200 — 6% debentures of Rs. 100 each in Ispat Ltd. as on 1*' April 2019 at a cost of Rs. 1,20,000. Interest is payable on 30" June and December each year. Other details are as 01-6-2019 400 debentures are purchased cum interest at 42,000 01-11-2019 600 debentures are purchased ex-interest at 62,600 30-11-2019 400 debentures are sold cum interest for 46,900 31-12-2019 700 debentures are sold ex-interest for 77,600 Prepare Investment Account from the following information
6. Q3 b. On 1* April, 2018 Mr. Sahil had 20,000 equity shares in RIL Ltd. Face value of the share was Rs 10 each but their book value was Rs. 16C per share. On June 2018 Mr. Sahil purchased 15,000 more equity shares of the same company for a price of Rs. 140. On 30" June 2018 the directors of RIL Ltd announce a bonus and right issue. Bonus was declared @ | equity share for every 5 equity share held Bonus shares were received on August, 2018. Right issue as per following terms:
   • 1. Right shares to be issued to the existing shareholders on August, 2018
   • 2. Right offered were @ | share for every 3 shares held at Rs. 85 per share. Full amount was payable by 30" September, 2018
   • 3. Existing shareholders may, to the extent of their entitlement, either wholly or in part, transfer their right to outsiders
   • 4. Mr. Sahil option and subscribed for 60% of his entitlements and the balance of rights, he sold to Mahi-for a consideration of Rs. 12 per share
   • 5. Dividends for the-year March, 2018 @ 15% was declared by the company and received by Mr. 20" October.2018
   • 6. On 1* November, 2018 he sold 5,000 shares at Rs. 165 per share Prepare Equity shares Account for the year ended March, 2019 15 marks
7. Q4 a. Give the format of Financial Statements (Profit or Loss and Balance Sheet) as mandated by
8. Q4 b. Give the Disclosures of Reserves and Surplus in Final Accounts (5 m)
9. Q4 c. From the following particulars, calculate the fair value of an equity share assuming that out of the total assets, those amounting to Rs. 25,00,000 are
   • (i) Share capital: 5,00,000 10% preference shares of Rs.100 each, fully paid 50,00,000 Equity shares of Rs. 10. each, fully paid (1i) Liability to outsiders = Rs.45,00,000
   • (iii) Reserves and surplus = Rs.35,00,000
   • (iv)The average normal profit after taxation earned every year by the Company during the last Five years
   • (v) The normal profit eared on the market value of fully paid equity shares of similar companies is 12%
   • a. What do you mean by a company? State different types of companies. 15
   • b. Write Short Notes (Any 3) 15
   • 2. Snare Capital disclosures in Final A/c
   • 3. Assets Backing Method for Valuation of Shares
   • 4. Characteristics of Company
   • 5. Shares as Means of Investments F

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