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The Adani family has raised their stake in Ambuja Cements by the conversion of 21.20 crore warrants into shares in a transaction that will see them infusing nearly ₹ 6,661 crore.
- What is a share warrant?
- Mention the head under which Money received against Share Warrants is shown in the Balance Sheet of a company prepared as per Schedule III of the Companies Act, 2013.
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Read the following news item of ITC Ltd. and answer the question that follows:
| The company’s board declared an interim dividend of ₹ 6.25 per share for the financial year ending March, 2024. The dividend will be paid between February 26-28, 2024, to the eligible shareholders. |
Which of the following are the attributes of interim dividend?
P: It is a charge against profits.
Q: It is an appropriation of profits.
R: Its declaration and payment will decrease the company’s Current Ratio.
S: Its declaration and payment will increase the company’s Debt Equity Ratio.
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Bajaj Hindustan Sugar, one of the largest sugar and ethanol producers, in order to revive the company, has offered to invest ₹ 2,500 crore as fresh equity of which ₹ 1,000 crore has already been infused.
What will be the effect of this decision of Bajaj Hindustan Sugar on its DebtEquity Ratio?
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According to the ratings agency Chrisil, healthy demand for grocery items and expansion into tier II and III cities will help organized brick-and-mortar food and grocery (F&G) retailers log a revenue of 14-15% in FY25. The agency further said the debt raising will be capped to ensure healthy key debt protection metrics.
From the following ratios:
- Choose the formula of the ratio to be used by the F&G retailers as a debt protection metrics
- Mention the name of the ratio so chosen
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Calculate Interest Coverage Ratio of Criss Cross Ltd. (up-to two decimal places) from the following information:
| Particulars | (₹) |
| Net Profit after Interest and Tax | ₹ 80,000 |
| Tax Rate | 50% |
| 12% Debentures | ₹ 3,00,000 |
| 9% Bank Loan | ₹ 1,00,000 |
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The Quick Ratio of a company is 0.8 : 1. State whether the Quick Ratio will improve, decline or will not change in the following cases:
- Cash collected from Debtors ₹ 50,000.
- Creditors of ₹ 20,000 paid off.
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The spreadsheet below shows the sales of Jupiter Ltd. made by four salesmen in the four quarters of the financial year 2022-23:
| A | B | C | D | E | F | G | |
| 1 | Sales in ₹ | ||||||
| 2 | Salesman No. | Qtr 1 | Qtr 2 | Qtr 3 | Qtr 4 | Total Sales | Commission @ 10% of sales (₹) |
| 3 | S1 | 6,000 | 7,000 | ?? | 9,000 | ||
| 4 | S2 | 8,000 | 9,000 | 8,200 | 8,500 | 33,700 | |
| 5 | S3 | 9,600 | 8,400 | 9,200 | 9,500 | 36,700 | ?? |
| 6 | S4 | ?? | 7,600 | 8,000 | 12,000 | ||
| 7 | Total | ||||||
Based on the above transactions and the information given in the spreadsheet, answer the following question:
- Write the formula to calculate the cost of the goods sold by Salesman No. S2 in Qtr 2, if he had sold the goods at a profit of 10% of the sales.
- Write the formula to calculate the sales made by Salesman No. S2 in Qtr 3 in cell D3, if he had sold the goods at a profit of 10% of the cost.
- In Qtr 1, Salesman No. S4 sold goods costing ₹ 8,800 at a loss of 10% of the sales. What is the selling price of the goods in cell B6.
- The company gives a commission of 10% on its total sales. Write the formula to calculate the commission earned by Salesman No. S3 in cell G5.
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Mention whether the following Trade Payable is current liability or non current liability:
| Operating Cycle | Expected Period of Payment |
| 15 months | 12 months |
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Calculate Trade Payables Turnover Ratio (up-to two decimal places) from the following information:
| Particulars | (₹) |
| Trade Payables at the beginning of the year | 70,000 |
| Trade Payables at the end of the year | 80,000 |
| Payment to Trade Payables | 3,20,000 |
| Returns to Credit suppliers | 30,000 |
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Calculate the Working Capital Turnover Ratio of Moonlight Ltd., (up-to two decimal places) from the following particulars.
| Particulars | |
| Cash | ₹ 10,00,000 |
| Short-term Loans and Advances | ₹ 3,00,000 |
| Inventory | ₹ 2,00,000 |
| Trade Payables | ₹ 5,00,000 |
| Cost of Revenue from operations | ₹ 12,00,000 |
| Gross Profit on Cost of Revenue from Operations | 25% |
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Mention the heading and sub-heading under which Vehicles are shown in the Balance Sheet of a company prepared as per Schedule III of the Companies Act, 2013.
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Stem Ltd. came up with an IPO inviting the public to subscribe to its Equity shares of ₹10 each. The issue was over-subscribed. The company allotted 80,000 shares to all the applicants making a pro-rata allotment in the ratio of 3:2.
The face value of the share was payable in three instalments.
Based on the information given above and the following extract of ledger accounts and Cash Book (Bank Column), answer the questions that follow:
| Cash Book (Bank Column) (extract) | |||
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Share Application A/c | 4,80,000 | By Balance c/d | ______ |
| To Share Allotment A/c | ______ | ||
| Share Capital A/c (extract) | |||
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Share Forfeiture A/c | ______ | By Share Application A/c | ______ |
| To Call-in arrears A/c | ______ | By Share Allotment A/c | 4,00,000 |
| By Share Final Call A/c | ______ | ||
| Calls-in-Arrears A/c (extract) | |||
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Share Allotment A/c | 6,000 | ||
- What are the number of shares applied for by the public?
- What is the amount payable per share with application?
- What is the amount payable per share with first and final call?
- Stem Ltd. did not receive the allotment money and call money due from the shareholder Rehan, who had applied for 3,000 shares. What is the amount received by Stem Ltd. with allotment?
- Stem Ltd. forfeited Rehan’s shares after the final call. It reissued 1,500 forfeited shares fully called up @ ₹13 per share
Give the journal entries passed by the company for:- Forfeiture of these shares
- Reissue of the forfeited shares
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From the following information calculate the following ratios (up to two decimal places):
- Earning per share
- Price Earning Ratio
- Return on Investments
- Working Capital Turnover Ratio
| Particulars | ₹ |
| Net profit after Interest and Tax | 2,40,000 |
| Tax | 1,60,000 |
| Property, Plant and Equipment | 10,00,000 |
| Non-current Investments (Non-Trade) | 1,00,000 |
| Equity Share Capital (face value ₹ 10 per share) | 5,00,000 |
| 15% Preference Share Capital | 1,00,000 |
| Reserves and Surplus (including surplus of the year under consideration) | 2,00,000 |
| 10% Debentures | 4,00,000 |
| Revenue from Operations | 10,00,000 |
| Working Capital | 1,00,000 |
Note: The market value of an equity share is ₹ 40.
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Select the correct statement from the following options.
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On 1st April, 2021, Bhim Ltd. issued 2,000, 5% Debentures of ₹ 100 each as follows:
| (a) For cash at a discount of 5% | ₹ 80,000 (Nominal) |
| (b) To a vendor for ₹ 60,000 in satisfaction of his claim | ₹ 70,000 (Nominal) |
| (c) To Bankers for a loan of ₹ 40,000 as collateral security | ₹ 50,000 (Nominal) |
The interest on these debentures was to be paid annually on 31st March, every year, by the company.
You are required to calculate interest on these debentures payable by the company on 31st March, 2022.
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The Balance Sheet of Anjum Ltd. as at 31st March 2022, had outstanding 1,000, 8% Debentures of ₹ 100 each. These debentures were to be redeemed by the company on 31st March 2023. Give the journal entry for the amount due to the Debenture holders on 31st March 2023, including the interest on debentures due to them.
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From the following particulars of Hind Ltd., calculate the preference dividend paid by the company:
| Particulars | |
| Net Profit before Tax | ₹ 20,00,000 |
| Equity Shares of ₹ 10 each (Market Value ₹ 15) | ₹ 40,00,000 |
| Tax Rate | 30% |
| Earning per share | ₹ 2.75 |
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