TYBCOM Sem 5 Financial Accounting Question Paper 2023
TYBCOM Sem 5 Financial Accounting Question Paper 2023

TYBCOM Sem 5 Financial Accounting Question Paper 2023

Time: 3 Hrs   Marks: 100

N.B:
1) All questions are compulsory,
2) Figures to the right indicate full marks.
3) Working notes should form part of your answer.
4) Use of simple calculator is allowed.

Q.1 a) State whether the following statements are true or false (any ten) : (10 Marks)

  1. Short term provision is a part of Non Current Liabilities.
  2. Contingent liabilities are shown in Balance Sheet under the head Current liabilities.
  3. Change in Inventory = Opening Stock of Raw Material less Closing Stock of Raw Material.
  4. If the buyback exceeds 10% of the paid-up capital, the board of directors has the authority to approve it by resolution at a meeting.
  5. The debt equity ratio must be more than 2:1 after buyback.
  6. The buyback must be completed within 15 months from the date of passing the resolution,
  7. In the case of internal reconstruction, no new company is created.  
  8. Alteration of share capital is one of the methods of Internal Reconstruction.
  9. Interest is always calculated on the face value of the securities.
  10. Profit from the sale of an investment should be debited to the investment account.
  11. CSR stands for Corporate Social Responsibility.
  12. Ethics is a branch of moral philosophy that guides people about the basic human conduct.

Q.1 b) Match the following items from column A with column B (any ten) : (10 Marks)

Column AColumn B
1) Debenturesa) Subdivision of Shares
2) Mining Rightsb) Not available for buyback
3) Conversion of shares of larger denomination in to shares of smaller denominationc) Without Interest
4) Credit balance of Capital Reduction accountd) Nothing is to be recorded in cost column
5) Internal Reconstructione) Reports certain types of wrongdoing
6) Escrow Accountf) Moral Principles and Values
7) Revaluation Reserveg) Example of Intangible Asset
8) Investment in Equity Sharesh) Capital Reserve
9) Cum Interesti) Long term Borrowings
1 0) Bonus Shares receivedj) Example of Variable earning security
11) Whistle blowersk) With Interest
12) Ethicsl) Necessary to open for Buyback Process
 m) Process of reorganization of a company

      Q.2) Following is the Trial Balance of Pruthvi ltd; as on 31st March 2023.  (20 Marks)

ParticularsAmount Rs.ParticularsAmount Rs.
Land & Building8,00,00018,000 Equity Shares of Rs.
100 each fully paid
18,00,000
Plant and Machinery3,00,000General Reserve4,00,000
Furniture55,000Bank Loan (Long Term)4,02,500
Purchases15,02,709Unclaimed Dividend1,500
Salaries7,00,000Sundry Creditors1,28,652
Wages4,30,44212% Debentures2,73,000
Bank Interest 75,000Sales32,51 ,841
Rent Paid30,000Interest on Investment25,632
Repairs25,000Surplus (01 /04/2022)50,544
Miscellaneous Expenses20,00O
Audit fees15,000
Opening Stock –5,16,174
Sundry Debtors4,00,000
Bills Receivables 2,97, 140
Long term Investment8,66,850
Advance Income Tax1,35,000
Cash at Bank1,65,354
Total63,33,669Total63,33,669

Following are the other particulars:

  1. Provide 10% Depreciation on Land Building and Plant Machinery.
  2. Outstanding wages were Rs. 19,558
  3. Interest on debentures is outstanding for the year 2022-23.
  4. Transfer Rs. 1,50,000 to General Reserve.
  5. Directors Proposed Dividend @8%.
  6. Bills Receivable includes a dishonored bill of Rs. 50,000.
  7. On 31st March 2023, Stock of finished goods was valued at Rs. 6,46,040.
  8. The Authorized share capital of the company was Rs. 20,00,000 dividend in to 20,000 Equity Shares of Rs. 100 each

OR

Q.2) Mr. Manoj holds 1,500, 10% Debentures of Rs. 100 each in Rahul ltd; as on
1st April 2022 at a cost of Rs. 1,80,000. Interest is payable half yearly on 30th September and
31st March every year. Following are the transactions for the year ended 31st March 2023. (20)

DateParticularsNo. of DebenturesRate
31/05/2022Purchase1,200Rs. 95 Cum interest
30/06/2022Purchase300Rs. 90 Cum interest
01/1 1/2022Sales1,200Rs. 110 Cum interest
30/1 1/2022Purchase900Rs. 97 Ex interest
01/01/2023Sales600Rs. 105 Ex interest
01/02/2023Purchase300Rs. 93 Ex interest
01/03/2023Sales1,200Rs. 103 Cum interest

The books of accounts are closed on 31st March every year. Prepare Investment in 10% Debentures account in the books of Maroj for the year ended 31st March 2023. Market value of the above Investment on 31st March 2023 was Rs. 1,22,000.

  Q.3 Following is the Summarized Balance Sheet of Shital Ltd; as on 31st March 2023. (20 Marks)

ParticularsAmount Rs.Amount Rs.
I. Equity and Liabilities
Equity Shares of Rs. 10 each fully Paid
12% Cumulative Preference Shares of Rs, 100 each fully paid 12% Debentures
Interest on Debentures
Creditors
Bank Overdraft
 30,00,000
15,00,000


45,00,000
15,00,000
1,80,000
15,00,000
3,00,000
 
Total 79,80,000
Il Assets
Goodwill
Land and Building
Plant and Machinery
Furniture & Fixtures
Investments
Stock
Debtors
Cash at Bank
Profit and loss account
Discount on Issue of Shares
Preliminary Expenses
 3,00,000
28,00,000
5,00,000
8,00,000
4,30,000
6,00,000
10,90,000
1,00,000
12,00,000
75,000 85,000
Total 79,80,000

Preference Dividend is in arrears for two years. Following scheme of Reconstruction was approved by the court.
1) Preference Shares were converted in to equal number of fully paid 10% preference Shares of Rs. 70 each.
2) Equity Shares to be reduced to Rs. 6 each fully paid up.
3) Investment was sold at a profit of 10%.
4) Preference Shareholders waived half of the arrears of dividend, and the remaining amount was paid in cash.

5) 12% Debenture holders agreed to accept Plant and Machinery for Rs. 7,00,000, and for remaining balance they accepted 8,000, 15% Debentures of Rs. 100 each fully paid.
6) Debenture holders agreed to forgo of the interest and remaining balance is to be paid off immediately.
7) Write off Goodwill, Debit balance of Profit and loss a/c, Discount on Issue of Shares and Preliminary Expenses.             
8) Bank Overdraft was paid.
You are requested to pass necessary journal entries, Prepare Capital reduction account and Balance Sheet after Reconstruction.

OR

Q.3 a) From the following information prepare statement of Profit and Loss account of Nitin ltd; for the year ended 3 1 March 2023 (10 Marks)

ParticularsAmount Rs.
Sales 20,20,000
Miscellaneous Receipts2,500
Interest Received on Government Bonds6,000
Reserve for-gad Debts (01/04/2022)8,000
Sales Return20,000
Opening Stock of Raw Material 1,00,000
Purchase of Raw Material 10,50,000
Freight on Raw Material50,000
Opening Stock of Finished Goods1,50,000
Wages75,000
Salaries 4,00,000
Bad Debts6,000
Debenture Interest14,000
Rent Rates & Taxes13,000
Travelling Expenses4,000
Depreciation on Fixed Assets60,000
Carriage Outward3,000
Closing Stock of Raw Material75,000
Closing Stock of Finished Goods2,00,000
Provision for Bad Debts (31/03/2023)10,000
Provision for Taxation should be made at 20% of the Profit

Q.3 b) From the following information Find out Maximum number of Shares to be bought Back by the Shreyash Ltd; at a offer Price of Rs. 250 Per Share. (10 Marks)

ParticularsAmount Rs.
Authorised Share Capital:
1,00,000 Equity Shares of Rs. 100 each
10,000, 10% Preference Shares of Rs. 100 each
1,00,00,000
10,00,000
Issued, Subscribed, Called up and Paid up:
70,000 Equity Shares of Rs. 100 each, Rs. 80 Per share Called up and Paid Up. 5,000 10% Preference Shares of Rss 100 each fully Paid


 56,00,000
5,00,000
Reserves:
General Reserve
Securities Premium
Profit & loss a/c
12,00,000
25,00,000
51,00,000
Long term Borrowings
10% Debentures
Bank loan
25,00,000
25,00,000
Current Liabilities:
Creditors
15,00,000

Q.4 The Summarized Balance Sheet of Prakash ltd; as on 31st March 2023. (20 Marks)

ParticularsAmount Rs.Amount Rs.
1. Equity and Liabilities
1. Shareholders’ Funds
a) Share Capital

4,00,000 Equity Shares of Rs. 10 each fully Paid
b) Reserve & Surplus
Securities Premium
General Reserve
Profit and Loss a/c
2. Non Current liabilities
a) Long Term Borrowings
11 % Debentures Bank Loan
(long term)
3. Current liabilities
a) Trade Payables

Sundry Creditors
 


40,00,000

7,00,000
10,00,000
3,00,000
60,00,000











12,00,000
9,00,000
 
Total 87,00,000
Il Assets
1.Fixed Assets
2.Bank Balance
3.Other Current Assets
 
55,00,000
18,00,000
14,00,000
Total  87,00,000

Ascertain the maximum number of shares the company can buyback at a price of Rs. 30 per share. Assuming the buyback is actually carried out:

a) Pass Necessary Journal entries in the books of Prakash Ltd; and
b) Prepare Balance Sheet after buyback.

OR

Q.4 a) On 1st April 2022 Mr, Dhananjay had 3,000 Equity Shares of Rs. 100 each at a cost         of Rs. 6,90,000. He furnished the following particulars for the year ended 31/03/2023. (10 Marks)

DateNo. of SharesTransaction details
30/04/20222,000Purchased @ Rs. 220 per Share
31/07/20223,000Bonus Shares Received
31/12/20224,000sale@ Rs. 220 Per Share

Following additional information is also provided by him,
1) On 31st August 2022 Dividend @ Rs, 30 per Share for the year ended 31/03/2022 was received by him.
2) On 30 September, 2022 The Company issued right shares, in the ratio of one share for every five shares held on Payment of Rs. 200 per share. Mr. Dhananjay Subscribed 50% of the Rights and Sold remaining to Mr. Pravin @ Rs. 150 per Share.

You are requested to prepare the Investment in Equity Shares account for the year ended 31stMarch 2023.

Q.4 b) Following is the summarized Balance Sheet of M/s Jayashri Ltd; as on 31st March 2023  (10 Marks)

LiabilitiesAmount Rs.
Preference Shares of Rs. -100 each
Equity Shares of Rs. 10 each
11% Debentures
Sundry Creditors
Other Current Liabilities
10,00,000
15,00,000
3,00,000
3,00,000
6,00,000
Total 37,00,000
Assets:
Goodwill
Land & Building
Plant & Machinery
Stock
Publicity Campaign Expenses
Discount on issue of Debentures

4,50,000
15,00,000
7,00,000
6,00,000
4,00,000
50,000
Total 37,00,000

Following scheme of Reconstruction has been approved by the court:
1) Equity Shares to be reduced by Rs. 3 per share.
2) 10% Preference Shares were reduced to Rs. 80 per share fully paid up.
3) 11% Debentures holders agreed to waive 30% of their rights.
4) 30% of the creditors are to be reduced to 80% and 60% of the creditors to be reduced by 30%.
5) All intangible and Fictitious Assets are to be written off.
6) Assets were revalued as:
Land & building Rs. 16,00,000
Plant & Machinery Rs. 7,50,000
Stock to be reduced by Rs. 62,000.
You are required to pass necessary journal entries and prepare capital reduction account in the books of M/S Jayashri.

Q.5 a) Explain the effects of unethical behaviour on financial reporting. (10 Marks)

Q.5 b) What are the sources of buyback? Explain benefits of buyback. (10 Marks)

OR

Q.5 Write Short Notes (Any Four): (20 Marks)
a) Reserve and Surplus in Final Accounts of Companies
b) Consolidation and Subdivision of Shares
c) White Blowing
d) Ex Interest and Cum Interest
e) Property, plant and Equipment (Tangible Fixed Asset)
f) Need of Internal Reconstruction

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