Master of Commerce (M.Com.) MCom Accountancy SEM IV ADVANCE ACCOUNTANCY ADV ACC CORP ACCT AND FIN.MGMT Corporate Financial Accounting Question Paper - Mumbai University | munotes

Questions asked in this paper

• 2. Figures to the right indicate full marks

1. Q3 Working notes should form part of your answers
2. Q4 Use of Simple Calculator is allowed
3. Q1 The Summarized Balance Sheet of ‘Raj Ltd” and ‘Karan Ltd’ as on March, 2018 were as under:
   • i. Raj Ltd purchased the shares in Karan Ltd as on October, 2017
   • i. Bills Receivable of Rs.20,000 held by Karan Ltd are accepted by Raj Ltd
   • ii. Included in the Sundry Debtors of Karan Ltd is a sum of Rs.12,000 owing by Raj Ltd in respect of goods Prepare the Consolidated Balance Sheet as on March, 2018
4. Q1 Ajay Itd acquired 1,600 Equity shares of Vijay Ltd as on March, 2018. The summarized Balance Sheets of two companies as on 31“ March, 2018 are given below: (15) Equity Share 2,00,000 | Land and Buildings 1,50,000 1,80,000 Code: 67501 /Group A: Advanced Accounting, Corporate Accounting and Financial Management: Corporate Finar
   • Q.P. Code: 39816
   • i. The directors have decided to revalue Land & Buildings and Plant & Machinery of Vijay Ltd at
   • ii. Creditors of Ajay Ltd include Rs.12,000 due to Vijay Ltd
   • iii. Vijay Ltd made a bonus issue on March, 2018 of One Equity share for every Four Equity shares held by its shareholders. This has not been accounted for Prepare a Consolidated Balance Sheet as at March, 2018
5. Q2 Following is the Balance Sheet of Reshma Ltd as on March, 2018. 1,00,000 Ordinary Shares of Rs.10 | 10,00,000 | Goodwill The Company sets aside 10% of Profits for General Reserves. The fair rate of return in the industry may be For the last Five Years, the company’s profits after tax were as follows: Find out the value of business and the Equity Share on the basis of Earning Capacity Method 15 marks
6. Q2 A) Vishwas Ltd has 5 Operating Segments namely P, Q,R,S and T. The Profits/Losses of respective segments for the year ended March, 2018 are as follows: (8) Determine reportable segments as per Ind AS 108
7. Q2 B) Balance Sheet of Sangeeta Ltd shows a Building costing R.8,00,000. It is depreciated over 50 years as per Original Cost Method. It has no residual value. The Company follows Revaluation model. At the beginning of Year 2, the Building was revalued at Rs.9,20,000 Show the treatment as per Ind AS 16 Code: 67501 /Group A: Advanced Accounting, Corporate Accounting and Financial Management: Corporate Finar
   • Q. P. Code: 39816 Mr. Tendulkar intends to invest Rs.1,00,000 in Equity Shares of ABC Ltd and seeks your advice regarding maximum number of shares he can expect to purchase with that amount on the basis of the following information and based on the Fair Value, Market Value and Net Asset Value of shares Issued and Paid up Capital:
   • i. Average Net Profit of the business is Rs.1,10,000 il. Expected Normal Yield is 8% in case of such Equity Shares uli. Total Tangible Assets are Rs. and Total Outside Liabilities are Rs.1,90,000
   • iv. Goodwill is valued at 5 years Purchase of Super Profits. Ignore Income Tax. Consider Closing Capital Employed as Average Capital employed for the purpose of Goodwill Valuation
8. Q3 A) Sunil Ltd obtained a loan for Rs. 1,40,00,000 on 15" April, 2017 from KBL Bank to be utilized as In March, 2018, construction of the factory shed was completed and machinery, which was ready for its intended use, was installed. Delivery of Truck was received in the next financial year Total Interest of Rs. 18,20,000 was charged by the bank for the financial year ending 31‘ March, 2018 Show the treatment of interest under IND AS 23 and also explain the nature of Assets
9. Q3 B) Raj Kumar Ltd provides the following information: Calculate Tax Base, Temporary Differences and resulting Deferred Tax Asset/Liability 7 marks
   • A) State Whether the following statements are True or False: 8
10. Q1 Accounting Standard Board is established in 1970 IFRS will override company law Ind AS 23 is applicable to Biological Assets
    • iv) Deferred tax is a tax on permanent difference
    • v) Ind AS 16 prescribes accounting treatment for property
    • vi) FMP is considered in Valuation of Goodwill vil) Intrinsic value is also known as Net Asset Value vili) Pre acquisition profit is capital profit Code: 67501 /Group A: Advanced Accounting, Corporate Accounting and Financial Management: Corporate Finar
    • B) Match the followings 7
    • ii. IFRS issued by b) Consolidated Financial Statements
    • c) Taxable Income
    • iv. Ind AS 1 d) Net Profit as per records
    • e) Presentation of Financial Statements
    • f) Present Realizable value of assets
    • vii. Ind AS 110 g) IASB Mandatory for companies
11. Q4 Write Short notes on any three of the followings: 15 marks
    • a) IND AS 33 — Earning Per Share
    • b) Yield Value Method of Valuation of Shares
    • c) Holding Company and Subsidiary Company
    • d) IND AS 12- Income Taxes
    • e) Super Profit Method of Goodwill

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