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Answer briefly of the following question :
What is the minimum price at which a company can reissue its forfeited shares which were originally issued
at par?
Concept: Issue of Shares for Consideration Other than Cash
Answer briefly of the following question :
State any two reasons for a company to purchase its own debentures from the open market.
Concept: Problems on Issue of Debentures
Saturn Ltd. was registered with an authorized capital of ` 12,00,000. "divided into" ` 1,20,000 :equity shares of ` 10
"each. It issued "40,000" equity shares to the public at a premium of" ` 5 "per share, payable as follows": [12]
"On application" ` 6
"On allotment" ` 9 (including premium of 5)
All the shares were applied for and allotted. One shareholder holding 500 shares did not pay the allotment money
and his shares were forfeited. Out of the forfeited shares, the company reissued 400 shares at 7 per share fully
called up.
You are required to:
(a) Pass journal entries in the books of the company.
(b) Prepare :
(i) Securities Premium Reserve Account,
(ii) Share Capital Account.
Concept: Issue of Shares for Consideration Other than Cash
The following balances have been extracted from the books of Vanity Ltd. as at 31st March, 2017:
Trial Balance as at 31st March, 2017
| Particulars | Debit | Credit |
| Equity Share Capital (5,000 shares of ` 100 each fully paid) | 5,00,000 | |
| Fixed Assets | 7,30,000 | |
| Reverses and Surplus | 2,00,000 | |
| Inventories | 50,000 | |
| Cash and Bank Balances | 1,70,000 | |
| Creditors | 40,000 | |
| Bills Payable | 20,000 | |
| Underwriting Commission on issue of shares | 10,000 | |
| 5% Debentures (1/5 of the Debentures to be redeemed on 31st March, 2018) | 2,00,000 | |
| Proposed Dividend | 12,000 | |
| Interest accrued and due on 5% Debentures | 8,000 | |
| Trade Receivables | 20,000 | |
| Total | 9,80,000 | 9,80,000 |
Concept: Issue of Shares for Consideration Other than Cash
You are required to prepare a Cash-Flow Statement (as per AS-3)
for the year 2016-17 from the following Balance Sheet.
Balance Sheet of Honesty Ltd.
As at 31st March, 2016 and 31st March, 2017
| I | Particulars | Note No. | 31.03.2017 |
31.03.2017 |
| 1. |
EQUITY AND LIABILITIES |
1. |
14,00,000 5,00,000
|
10,00,000 4,00,000
|
| 2. | Non-Current Liabilities Long Term Borrowing (10% Debentures) |
5,00,000 | 1,40,000 | |
| 3. | Current Liabilities (a) Short Term Borrowings (Bank Overdraft) (b) Trade Payables (Creditors) (c) Short Term Provisions |
20,000 1,00,000 60,000 |
30,000 60,000 30,000 |
|
| TOTAL | 25,80,000 | 16,60,000 | ||
| II 1. | ASSETS Non-Current Assets Fixed Assets (i) Tangible (ii) Intangible (Goodwill) |
2. |
16,00,000 1,40,000 |
9,00,000 2,00,000 |
| 2. | Current Assets (a) Inventories (b) Trade Receivables (c) Cash and Bank Balances (Cash at Bank) |
2,50,000 5,00,000 90,000 |
2,00,000 3,00,000 60,000 |
|
| TOTAL | 25,80,000 | 16,60,000 |
Notes to Accounts:
| Particulars | 31.03.2017 | 31.03.2016 |
| 1. Short term provisions provision for taxation |
60,000 | 30,000 |
| 2. Fixed Assets (Tangible) Plant and Machinery Less Accumulated Depreciation |
17,60,000 (1,60,000) |
10,00,000 (1,00,000) |
| 16,00,000 | 9,00,000 |
During the year 2016-17:
(i) A part of the machine, costing Rs. 50,000, accumulated depreciation thereon being Rs. 20,000, was sold for
Rs.18,000.
(ii) Tax paid Rs. 20,000.
(iii) Interest of Rs. 50,000 paid on Debentures.
Concept: Concept of Cash Flow Statement
Give any two differences between horizontal analysis and vertical analysis of financial statements.
Concept: Comparative Statements
What is meant by cell address?
Concept: Concept of Database Management System (DBMS)
State any one method of removing data from a cell in a spreadsheet.
Concept: Concept of Database Management System (DBMS)
Give the full form of SQL.
Concept: Concept of Database Management System (DBMS)
State the significance of the following in DBMS :
(i) Forms
(ii) Reports
Concept: Concept of Database Management System (DBMS)
What is the use of legends in a chart?
Concept: Concept of Database Management System (DBMS)
What is the difference between .importing and exporting of a database?
Concept: Concept of Database Management System (DBMS)
State the main advantages of an Action Query.
Concept: Concept of Database Management System (DBMS)
Mention any two of the available values that are used in indexed property.
Concept: Concept of Database Management System (DBMS)
Write the steps to filter a table.
Concept: Concept of Database Management System (DBMS)
What is meant by freezing panes?
Concept: Concept of Database Management System (DBMS)
Answer briefly of the following question :
Mention whether the following Trade Payables are current liabilities or non-current liabilities:
Operating Cycle Expected period of Payment
(a) 12 months 14 months
(b) 15 months 12 months
Concept: Activity Ratios - Trade Payables Turnover Ratio
From the following information, prepare a Common Size Statement of Profit and Loss of Prudence Ltd. for the
year ending 31st March, 2017:
Particulars 31.03.2017
Revenue from Operations 20,00,000
Purchases 15,00,000
Changes in inventories 1,00,000
Other Income (Dividend received) 40,000
Depreciation and Amortization expenses 60,000
Tax Rate @ 40%
Concept: Common Size Statements
Calculate the Net Profit Ratio (up to two decimal places) from the following information:
Particulars Rs.
Gross profit 80,000
Salary and rent 30,000
Interest on Debentures 5,000
Gain on sale of furniture 2,000
Revenue from Operations 4,00,000
Concept: Profitability Ratios - Net Profit Ratio
Sales Information of Asha Traders
| A | B | C | D | E | F | |
| 1. | Particulars | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Total |
| 2. | Unit sold (in kg) | 3500 | 4300 | 3100 | 4700 | |
| 3. | ||||||
| 4. | ||||||
| 5. | ||||||
| 6. | Electricity Expenses | 18000 | 16000 | 22000 | 76000 | |
| 7. | Advertisement Expenses | 22000 | 26000 | 18000 | 28000 | |
| 8. | Total Cost | |||||
| 9. | Net Profit | |||||
| 10. | Selling price per unit | 50 | 50 | 50 | 50 | |
| 11. | Cost price per unit | 35 | 35 | 35 | 35 |
Based on the information given in the spread sheet above, write the formula for calculating each of the following:
(a) Sales Revenue for Quarter 1 in cell B3.
(b) Cost of Goods Sold for Quarter 2 in cell C4.
(c) Total Advertisement Expenses incurred in cell F7.
(d) Gross Profit for Quarter 4 in cell E5.
(e) Electricity Expenses for Quarter 3 cell D6.
Concept: Concept of Electronic Spreadsheet
