Bachelor of Management Studies (B.M.S.) SEM V 2018 19 Nov 2018-19 FINANCE FINANCIAL ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 Which of the following should be deducted from the share capital to find out paid-up capital?
   • a) Call in advance
   • b) Call in arrears
   • c) Security Premium
   • d) Bonus
2. Q2 Dividend are usually paid on
   • a) Authorized capital
   • b) Issued Capital
   • d) Reserve Capital
3. Q3 Which of the following is not classified as inventory in the financial statements?
   • a) Finished Goods
   • b) Work in Progress
   • c) Stores & Spares
   • d) Advance payment made to suppliers for raw materials
4. Q4 If the whole of the issue of shares or debentures is underwritten it is known as
   • a) Partial underwriting
   • b) Sole underwriting
   • c) Complete of Full underwriting
   • d) None of the above
5. Q5 If a part of the issue of shares or debentures is underwritten, it is termed as
   • a) Partial underwriting
   • b) Complete underwriting
   • c) Firm underwriting
   • d) None of the above
6. Q6 The mean of the exchange rates in force during a period is known as
   • a) Average rate
   • b) Closing rate
   • c) Reporting rate
7. Q7 The exchange rate at the balance sheet date is known as
   • a) Average rate
   • b) Closing rate
   • d) Monetary rate
8. Q8 Following is not a fixed income bearing security
   • a) Debentures
   • b) Equity Shares
   • c) Preference Shares
   • d) Government Security
9. Q9 Interest is always calculated on the
   • a) Market Value of the security
   • b) Nominal value of the security
   • c) Book Value of the security
   • d) Weighted average cost of the security
10. Q10 Interest on bonds accrues
    • a) On the last day of the financial year
    • b) On due dates fixed in advance
    • c) On the date fixed by board resolution
    • d) As declared by the company in the beginning of every financial year
11. Q1 B. State whether following statements are true or false (any7) 7 marks
12. Q1 Dividend can be paid out of capital, but interest cannot be paid out of capital
13. Q2 Future bad debts are usually estimated as percentage of debtors
14. Q3 Trade Receivable are always shown under current assets
15. Q4 Shareholders funds are always non-current
16. Q5 Capital profit realized in cash can be used for paying dividend
17. Q6 The underwriting commission is payable in cash
18. Q7 Unmarked applications are known as direct applications
19. Q8 Inventories is a non-monetary item
20. Q9 Foreign currency is a currency other than the Indian rupee
21. Q10 Interest is always calculated on Market Value of the security
22. Q2 A) Ajay Ltd. Issued 50,00,000 equity shares of Rs.10 each . The whole issue was underwritten by A, B and Cas below: (08) Applications were received for 48,50,000 shares of which the marked applications were as Calculate the number of shares to be taken up by the underwriters. Unmarked applications are to be distributed amongst the underwriters in the ratio of their gross liability Q,2 B) Pooja Ltd. Of Mumbai sold goods worth $ 10,00,000 to Utkarsha Ltd. Of America on 31 Amounts were received from Utkarsha Ltd. As follows : Accounts are closed on 31“ march every year. Exchange rates of Pass Journal entries in the books of Pooja Ltd. For the year ended march 2014
23. Q2 C) Following is the trial balance of Supriya Ltd. As on 31“ march 2017. Land and Building(Cost Rs Plant and machinery(Cost Rs.10,00,000) 15 marks
    • a) The Authorized share capital of the company was Rs. 60,00,000 divided into 6,00,000 equity shares of Rs. 10 each The sundry Debtors, which are all unsecured and considered good, include Rs. 1,80,000 for more than 6 months
    • c) Investments represent 5,000 equity shares in X Ltd. of Rs. 10 each, Rs. 4 per share called and paid up
    • d) Bills Receivable discounted with the bank not matured till the balance sheet date, amounted to Rs. 15,000 You are required to prepare balance sheet of Supriya Ltd. As on march 2017. As per provisions of the companies Act. Ignore previous year figures
24. Q3 A) On April 2010 Shyam had 50,000 equity shares in A Ltd. The face value of the shares were Rs. 10 each but their book value was Rs. 24 per share On june 2010 Shyam purchased 10,000 euiqty shares in A Ltd. At a premium of Rs. 6 per On 1* july 2010 The Directors of A Ltd. Issued bonus shares at the rate of one share for every On 1* January 2011 Shyam purchased 5,000 right shares in A Ltd. Of Rs. 10 each at Rs. 15 per On 31* January 2011 he sold 20,000 equity shares in A Ltd. Of Rs. 10 each at Rs. 30 per shares Show investment account as it would appear in Shyam’s books for the year ended 31“ march
    • B) Raj Ltd. Issued 50,000 preference shares of Rs.10 each. 75% of the issue was In addition there is a firm underwriting of 5,000 shares from Suraj. In all the company received applications for 42,000 shares. 30,000 share applications had the seal of Mr. Suraj Determine the liability of Mr. Suraj. Firm underwriting applications to be treated like marked applications. Ascertain the respective liabilities of the underwriter and the company. (08)
25. Q3 C) On 1* January 2013. David Ltd. An Indian importer, purchased $ 2,50,000 worth goods from komal Trading company of USA. (15) The payment for the import was made as follows: David Ltd. Closes its books on March every year The exchange rate for $ 1 was follows:
26. Q2 Prepare Komal Trading Company account and foreign exchange fluctuation account in the books of David Ltd
27. Q4 A) From the following trial balance of Amol Ltd. Prepare the balance sheet of the company as on 31“ march 2017 as per the companies Act. (07) Trial balance as on march 2017 Manisha Ltd. Has authorized capital of Rs.25,00,000 divided into 1,00,000 equity shares of each. The company issued for the subscription 25,000 shares premium of Rs. 10 each . The entire issue was underwritten as follows: Out of the total issue 22,500 shares including firm underwriting per subscribed The following were the marked forms: Calculate the liability of each underwriter. (08) On 1“ April 2012 Mr. Kailas held 500, 6% Central Government Bonds of Rs.100 each at of Rs. 48,000. Interest is payable on 30" June and December every year. He entered into following transactions in respect of 6% Central Government Bonds during the Year ending
    • A) On 1* may 2012, face value of Rs. 10,000 at Rs. 102 cum-interest
    • B) On 1* September 2012, face value of Rs. 30,000 at Rs. 105 ex-interest
    • A) On 1* august 2012, face value of Rs. 15,000 at Rs. 104 cum-interest
    • B) On February 2013, face value of Rs. 15,000 at Rs. 102 ex-interest Show 6% Central Government Bonds Account in the books of Mr. Kailas for the year ended 31 march are to be valued at Weighted Average Cost.) (15)
28. Q5 a) What does the Accounting Profession mean by Ethical Behavior? 7 marks
29. Q5 b) Explain the types of Underwriting. 8 marks
30. Q5 c) Write a Short notes (Any Three) 15 marks
    • i) Schedule III Fundamental of Principles
    • iv) Company code of Ethics
    • v) Conflict of Interest

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