B.Com In Investment Management SEM V 2022 2023 Dec 2023 INV. MGT CORPORATE ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A Match The Column (any 8) 1 Accounting For A Earning Capacity Method Intrinsic Revenue from 3 Goodwill C To advance a loan against the security of shares Sales Quoted price not included 7 purpose for the G Net Asset Method valuation of shares Yield Value AS 13 8 marks
2. Q1 B State whether Following Statement is True or False.(Any 7) 7 marks
   • 3. The formula for calculating goodwill under the simple average profit method is
   • 4. Right shares are the shares that are issued by a company for its existing shareholders
   • 5. Bills receivable and debtors is the part of trade payables
   • 6. Goodwill is paid for obtaining future profit
   • 7. Bonus shares are issued to the shareholders with additional cost
   • 8. Risk free investment is one of the advantages for Issue of Bonds
   • 9. Payment to Auditor should be shown under Employee Benefit Expenses
   • 10. Every Profit and Loss account of a company must comply with the requirements of Part I of Schedule II of the Company Act, 2013 as far as possible
3. Q2 On Ist April, 2022, Mr. Bablu held 1,500, 8% Central Government Bonds of Rs. 100 each at a cost of Rs.1,45,000 Interest is payable on 30th June and 31st December every year. He entered into following transactions in respect of 8% Central Government Bonds during the year ending on March 2023
   • a) On Ist May 2022. Face Value of Rs.10,000 at Rs.102 cum-interest
   • b) On Ist September 2022, Face Value of Rs. 30,000 at Rs.105 ex-interest
   • i. On Ist August 2022, Face Value of Rs.15,000 at Rs.104 cum-interest On Ist February 2023, Face Value of Rs.15,000 at Rs.102 ex-interest.Prepare Investment Account . 15 marks
4. Q2 On 1-4-2022 Aditya had 50,000 equity shares in T Ltd. The face values of the shares were Rs.10 each but their book value was Rs.24 per share
   • 1) On 1-6-2022 Aditya purchased 10000 equity shares in T Ltd. at a premium of Rs.6 per
   • 2) On 1-7-2022 the directors of T Ltd. issued bonus shares at the rate of one share for every
   • 3) On 1-01-2023 Aditya purchase 5000 right shares in T Ltd. of Rs.10 each at Rs.15 per
   • 4) On 31-01-2023 he sold 20000 equity shares in T Ltd. of Rs.10 each at Rs.30 per share Show investment Account as it would appear in Aditya's books for the year ended 31-03-2023
5. Q3 Following is the Trial Balance of Smart Ltd as on March 2022
   • 1) Transfer to General Reserve Rs 85,000
   • 3) Out of Debtors , due for more than 6 months were Rs 2,50,000
   • 4) Sundry Creditors includes creditors for expenses 40,000
   • 5) Loan from IFCI is secured against stock
   • 6) Market Value of Investment is Rs 95,000 and Face Value is Rs 60,000 Prepare Balance Sheet of Smart Ltd as on March 2022 as per provision of Companies
6. Q3 Following is extract of the Trial Balance of Falguni Ltd as on March 2022 Opening Stock of Raw Material Opening Stock of Finished Stock of Raw Material
   • 1) Closing Stock of Raw Material and Finished Goods was Rs and 9,50,000
   • 2) Outstanding Salaries & Wages were Rs 50,000
   • 3) Interest Receivable was Rs 35,000
   • 4) Rs 25,000 to be provided for Bad & Doubtful debts
   • 6) Make provision for tax @ 20% of Profit Before Tax Prepare Statement of Profit & Loss Account for the year ended March 2022 as per the provision of the Companies Act . 15 marks
7. Q4 The Balance Sheet of XYZ Ltd as on 31/3/2022 10% Preference Shares of Rs | 3,00,000 | Goodwill 40,000 100 each fully paid up Equity Shares of Rs 100 each | 4,00,000 | Fixed Asset 5,00,000 The fixed assets are considered to be worth 60% more than their book value but the current asset have reduced in value by is to be taken at balance sheet value. The profit of the last three years after providing for taxes were Rs 1,00,000 ; Rs 1,17,500 ; Rs 1,35,000 20% of profit is transferred to Reserves every year and a fair return on equity shares can be taken at 12.5%. You are required to calculate : 1) Intrinsic Value of Shares 2) Yield Value of Shares 3) Fair Value of Shares 15 marks
8. Q4 The following particulars of Wipro Ltd are available 15 marks
   • a) Equity Share Capital : 2,00,000 Equity Shares of Rs 10 each fully paid up
   • b) Preference Share Capital : 20,000 , 12% Preference Share Capital of Rs 100 each fully
   • e) Post Tax Profits earned each year by the company Rs 5,70,000
   • f) Appropriations from Profit 10% ( Transfer to Reserve ) , Asset of company included fictitious item of Rs The normal rate of return in respect of the Equity Share of this type of company is ascertained at 10% .Compute the value of the company’s share
   • 2) Yield Method
9. Q5 A) Explain the term Debentures and types of debentures ? 8 marks
10. Q5 B) Explain Bonus Shares and Right Shares 7 marks
11. Q5 Write Short Notes On : ( Any 3/5) 15 marks
    • 1) Recent Trends in Corporate Accounting
    • 3) Contingent Liabilities
    • 4) Intrinsic Method of Valuation of Shares
    • 5) Equity Shares

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