Master of Commerce (M.Com.) Part II SEM IV 2018 2019 Dec 2019 ATKT GROUP A ADVANCED ACCOUNTING CORPORATE ACCOUNTING AND FINANCIAL MANAGEMENT Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q2 On 2017 the Balance sheet of Eknath Ltd., was as follows: Less: Calls Arrears at Rs.20 Provision for Taxation The Net Profit of the Company after providing tax was as foilows: 15 marks
   • i. March 2017 Land & Building were valued at Rs.7, 50,000 and Plant& Machinery were valued
   • ii. Normal rate of return is 8% Calculate Goodwill to be valued at 3 years purchase of super profit based on average profit of last 5 years also find intrinsic value of fully paid equity shares. Consider closing capital employed as average capital
2. Q2 (A) From the following information relating to Patil Ltd., Calculate Earning per Share. 67501 Group A: Advanced Accounting, Corporate Accounting and Management: Cor: e Fin 7 marks
   • Q. P. Code: 39815 Time: 2 Hours Marks: 60 NB: |. All questions are compulsory
   • 2. Figures to the right indicate full marks
   • 3. Working notes shouid form part of your answers 4, Use of Simple Calculator is allowed
3. Q1 The following are the balance sheet of Sharma Ltd. and Varma Ltd. as at 31 March, 2017. (Balance on Cash at bank Sharma Ltd. acquired 80% of the shares in Varma Ltd. on 1-10-2016 Included in the assets of Sharma Ltd. there is Rs.90, 000 loan to Varma Ltd. shown as creditors in Prepare Consolidated Balance Sheet of Sharma Itd. as at March, 2017 15 marks
4. Q1 The Balance sheet of Patankar Ltd. and Jain Ltd., as on March, 2017 were as under: Equity Share Capital of Rs.10 each 4,00,000 1,00,000 Profit & Loss A/C Balance on 1.4.2016 80,000 40,000 Profit for the year 1,00,000 50,000 6000 Shares in Jain Ltd., 1,30,000 ade: 67501 Group A: Advanced Accounting, Corporate Accounting and Financial Management: Corporate Finar 15 marks
   • Q. P. Code: 39815
   • (B) Y.N. Ltd. Machinery from Kalpesh Ltd., on 2017. The Price was Rs.8, 00,000 before charging 18% GST and Giving a Trade Discount of 2% on the quoted price. Transport Charges were
   • 0.25% on the Quoted price & installation charges 1% on the Quoted price A loan of Rs. 8, 00,000 was taken from Bank of Maharashtra on which Interest at 15% p.a. has to be paid, Expenditure on Trial run was material Rs.74,000, wages Rs.56,000 & other overheads Rs.36000 Machinery was ready for use on December, 2017. However it was actually put to use only on May, Find out Cost of Machine were Loan remain unpaid on May, 2018
5. Q3 The balance sheet of Raj Ltd. as at March 2017 was as follows. Share Capital of Rs.100 each 4,00,000 | Land & Building 2,20,000 The Expert valued the land& building at Rs.4, 32,000. Goodwill at Rs.3,20,000 and Plant & Machinery at Rs.2,21,000. Out of the total debtors it is found that debtors of Rs.16, 000 are bad The profit of the Company has been as follows: The Company follows the practice of transferring 25 % of Profit to general reserve. Similar type of companies earned 10% of the value of their share Ascertain the value of the Companies shares under: Ignore Taxation and Depreciation on revalued assets 15 marks
   • A) The net profit of a company after providing for taxation for the past five years are Rs.2, 00,000, which a reasonable rate of return of 10% is expected. It is expected that the company will be able to maintain its super profits for the next five years Calculate the value of goodwill of business on the basis of an annuity of super profits, taking the present value of annuity of one rupee for five years at 10% interest as Rs.3.78 67501 Group A; Advanced Accounting, Corporate Accounting and Financial Management: Corporate
   • Q. P. Code: 39815
   • 2. How would your answer differ if the goodwill is calculated by capitalizing the excess of the annual average distributable profits over the reasonable return on capital employed on the basis of the same
   • (B) Calculate basic EPS as per AS 20 from the following information. Share capital as on 01 April, 2017 is 5, 00,000 equity share of Rs. 10 each Issue of right share for cash on July 2017 in the ratio of | share for every 5 share held Issue of Bonus share excluding right share on Ist October, 2017 in the ratio of | share for every 5 Net profit before tax for 2017-18 is Rs.22, 50,000. Tax Rate is 40% 7
6. Q4 A. Select the most appropriate option and rewrite the full sentence. Financial reporting is compulsory for None of the above 8 marks
   • 2. Consolidated financial statement is to be prepared as per Ind AS 7 Ind
   • 3. Borrowing cost directly attributable to forms of qualifying assets production all of the above
   • 4. Property, plant and equipment are Investments None of the above
   • 5. Profit earned after the date of acquisition of share is treated as
   • 6. NCI is shown in the consolidated balance Sheeton Asset side side under
   • 7. Goodwill is paid for obtaining ‘ Past benefit None of the above
   • 8. IFRS are the ‘ Sets of financial Rules of accounting reporting standards None of the above Sets of auditing 67501 Group A: Advanced Accounting, Corporate Accounting and Financial Management: Corporate Finar
   • B. State whether the following statements are True OR False. 7
   • 2. AS 16 does not deals with cost of owners equity
   • 4. Fair value is the average of intrinsic value and yield value
   • 5. EPS depends on net profit available to equity shareholders
   • 6. Capital expenditure does not generate revenue
   • 7. Holding company is the company who holds all the shares of the other company
   • 4. Write Short notes on any three of the followings. Need of Financial Reporting 15
   • 2. Nature of Goodwill
   • 3. Objective of preparation of consolidated financial statement & 4. Benefits of adoption of IFRS
   • 5. Need for valuation of shares

Read from the scan above, so a character or two may differ. The scan is the original.