Master of Commerce (M.Com.) Part II SEM IV 2022 2023 Jun 2023 ADV ACCTG,CORP ACCT & PIN MGMT CORPORATE FINANCIAL ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

• Figures to the right indicate full marks

1. Q1 The Balance Sheet of ABC Ltd. as on 31st March 2023: 15 marks
   • 1. The Net Profit after Tax of the last 4 years ended 31st March, 2023 is as,
   • 2. Normal rate of returns in similar businesses is 10% Calculate the Intrinsic Value, Yield Value and Fair Value of Equity Share of the
2. Q1 A) ABC Ltd. purchased machinery from Aarya Ltd. On 30/09/2021. The price was Rs. 400 lakhs before charging of 18% GST and giving trade discount of 2% on the quoted price. Transport charges were 0.25% on the quoted price and installation charges come to 1% on the quoted price A loan of Rs. 400 lakhs was taken from Bank of Maharashtra on which interest @ 15% p.a was to be paid. Expenditure on Trial Run was material Rs. 37,000, wages Rs. 28,000 and overheads Rs. 18,000. Machinery was ready for use on 1/12/2021. However it was actually put in use 1/5/2022 Find out cost of machine. Entire loan remain unpaid on 1/5/2022 bject Code: 67501 Advanced Accounting, Corporate Accounting and Financial Management: Corporate FinancialA 8 marks
   • B) Following information is extracted from the books of AC Ltd. You are required to determine reportable segments from the above information 7
3. Q2 Rakesh Ltd. acquired 7,500 shares in Vivek Ltd for Rs.77,500 on July, 2022. The Balance Sheet of the two companies as on March, 2023 were as follows: (15)
   • 1. Vivek Ltd had a credit balance of Rs. 20,000 in the General Reserve and Rs. 2,500 in the surplus on April, 2022
   • 2. Rakesh Ltd sold goods to Vivek Itd costing Rs. 4,000 for Rs. 5,000 and 50% of these goods remained unsold with Vivek Ltd
   • 3. Out of Bills Payable issued by Rakesh Ltd of Rs.7,500 drawn by Vivek Ltd
   • 4. Debtors of Vivek Ltd includes amount due from Rakesh Ltd Rs. 7,500 bject Code: 67501 Advanced Accounting, Corporate Accounting and Financial Management: Corporate FinancialA Prepare a Consolidated Balance Sheet of Rakesh Ltd and its subsidiary Vivek Ltd as on March, 2023 as per Schedule III of Companies Act, 2013
4. Q2 The balance sheet of Honda Ltd and Sony as on March, 2023 are as follows: I Equity and Liabilities 15 marks
   • 1. Shareholders’ Funds
   • a) Share Capital 1 2,40,00,000
   • b) Reserves and Surplus 2
   • 2. Current Liabilities
   • a) Trade Payable 3 32,00,000 28,00,000
   • a) Fixed Assets
   • 1)Tangible Assets 4 1,86,00,000
   • 2. Current Assets
   • b) Trade Receivables 8,00,000
   • c) Cash and Cash Equivalents 7 24 00,000 Notes to Accounts Issued, Subscribed and Paid up: Equity shares of Rs. 10 each, fully paid up 1,80,00,000 15% Preference Shares of Rs.10 each, fully 2 Reserves and Surplus Balance as at 1.4.2022 Cost of Issue of Shares Surplus i.e. Credit balance of Profit & Loss 36,00,000 Land and Buildings 1,14,00,000 48 Plant and Machinery 36,00,000 bject Code: 67501 Advanced Accounting, Corporate Accounting and Financial Management: Corporate FinancialA 6,00,000 Equity Shares in Sony Ltd. on 96,00,000 7 Cash and Cash Equivalents Balance with Bank The following information is also given to you:
   • 1) 15% dividend on both types of shares was paid by Sony Ltd. in October, 2023 for the year ended March 2022. Dividend Distribution Tax @ 17% was also paid in the same month. Honda Ltd. credited the dividend received to its Profit and Loss Account
   • ii) Sony Ltd. Plant and Machinery Account showed a balance of Rs. 40,00,000 on 1* April, 2022, on which 10% depreciation has been charged. At the time of purchase of shares in ili) There was a bonus issue of equity shares amounting to Rs. 8,00,000 out of post acquisition profits by Sony Ltd. which has not been recorded in the books of account as
   • iv) Credit balance of Profit and Loss Account of H Ltd. on April, 2022 was Rs
   • v) Included in Trade Payables of Sony Ltd. are Rs. 8,00,000 for goods supplied by Honda Ltd. Also including in Sony Ltd.’s stock are goods of Rs. 3,20,000 which were supplied by Honda Ltd. at a profit of 25% on sale Prepare a Consolidated Balance Sheet of Honda Ltd. and its subsidiary Sony Ltd. as on
5. Q3 The Balance Sheet of Aqua Ltd. as on 31st March, 2023 was as follow: Equity Shares Capital of Rs. 100 each 30,00,000 | Land and Building 13,20,000 Profit and Loss A/c 6,18,000 5,70,000 bject Code: 67501 Advanced Accounting, Corporate Accounting and Financial Management: Corporate FinancialA The net profit of the company after deducting all working charges and providing depreciation and taxation were as under: On 31st March, 2023, Land and Building was valued at Rs.15,00,000 and Machinery at Rs 9,00,000. The other assets and liabilities have been correctly valued. In view of the nature of business, it is assumed that 10% is a reasonable return on tangible capital. Consider closing capital as average capital employed and simple average for computing average profit You are required to determine: 15 marks
   • 1) Value of Goodwill on the basis of 5 years purchase of super profits
   • 2) Net Asset Value of Equity Share
   • A) Calculate basic EPS as per IND AS 33 from the following information: Share Capital as on 1/4/2022, 2,00,000 Equity Shares of Rs. 10 each . Issue of right shares for cash on 1/7/2022 in the ratio of one share for every 5 shares held Issue of Bonus shares (excluding right shares ) in the ratio of one share for every five shares Net Profit (before tax) for 2022-23, Rs. 8,00,000. Income tax rate is 40% 8
   • B)X Ltd commenced the construction of a qualifying asset and incurred the following On July 1, 2022 Rs. 2,50,000 On December 1, 2022 Rs. 3,00,000 The details of borrowing and interest thereon are as under: Compute the borrowing cost that need to be capitalized bject Code: 67501 Advanced Accounting, Corporate Accounting and Financial Management: Corporate FinancialA Fill in the blanks with correct alternatives (Any 8) (8)
   • 1. Accounting Standards converged with IFRS are
   • a. Ind AS b. AS
   • c. Costing Standards
   • d. Audit Standard
   • 2. SME are those organizations whose turnover does not exceed
   • 3. Consolidated statements are prepared by
   • 4. Rate of interest is 11% and the rate of risk is 9%. The normal rate of return is
   • 5. The first reporting period as per IFRS is
   • 6. Unrealized profit on goods sold and included in stock is deducted from
   • 7. Dividend recommended is given in
   • 8. The ratio that gives information about earning available to each equity share is
   • 9. Ind AS applicable to operating segments
   • 10. Dilution is
   • a. Increase in EPS b. Reduction in EPS
   • c. Reduction in net loss per share d. Increase in net loss per share bject Code: 67501 Advanced Accounting, Corporate Accounting and Financial Management: Corporate FinancialA
   • B) State whether the following statement are True or False (Any 7) IFRS will override company law AS 16 deals with cost of owner’s equity The objective of Ind AS 33 is to prescribe principles for determination of EPS Fictitious assets should be included in average capital employed Holding company and Subsidiary company maintain their independent identity EPS depends on net profit available to equity shareholders Ind AS 16 does not apply to natural gas Accounting standard are issued by Government of India Tax base is the amount attributable to assets for tax purposes Write Short Notes on (any three) (15) 7
   • b. Scope of Ind AS 23
   • c. Balance Sheet method of Valuation of Shares
   • e. Measurement and treatment of Pre acquisition profit in Consolidated Financial

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