PA 2

PAPER_30M

INSTRUCTIONS

*QUESTION PAPER CONSITS TOTAL 10 QUESTION.ANSWER ALL THE QUESTION .

*QUESTION NUMBER 1 TO 4 CARRY ONE MARK EACH.

*QUESTION NUMBER 5 AND 6 CARRIES 3 MARKS EACH.

*QUESTION NUMBER 7 AND 8 CARRIES 4 MARKS EACH.

*QUESTION NUMBER 9 AND 10 CARRIES 6 MARKS EACH.

*SHOW YOUR WORKING CLEARLY .

Q1. Alpha Ltd. Forfeited 200 equity shares of Rs.10 each on which Rs. 6 was paid (Including Rs. 1
premium ). On reissue ,the company can allow ___________ per share as discount.

Q2.state whether the following transactions will result in inflow or outflow of cash while preparing cash
flow statement:

a. Decrease in outstanding emploees benefit by Rs.3000

b. Increase in current investments by Rs. 6000.

Q3. Statement I) Debentures cannot be converted into shares.

Statment II ) Convertible debtures can be converted into equity shares or in any other security.

a. Both statements are correct

b. Both statements are incorrect
c. Statement I is correct statement II is incorrect
d. Statement II is correct statement I is incorrect

Q4. A company issued 1,000 ,7% dentures of Rs. 100 each at discount of 5% , redeemable at a premium
of 10% . what will be the amount of loss on issue of debentures? (1)

Q5. A Limited issue with 10,00 ,9% Debenture s of Rs.100 each for subscription, payable Rs.60 on
application and balance on allotment. Subscription was received for 9,000 debentures. Allotment was
made and you amount was received.

Boston to increase for issue and allotment of debenches. (3)

Q6. Rajesh limited purchased assets of JK limited for Rs.18,00,000 payable in fully paid up equity shares
of Rs.100 each. Pass the journal entries in the books of Rajesh limited if the shares are issued (i)at par (ii)
at a premium of 20%.(3)
Q7(. a.) Identify whether the following transaction would result in inflow, outflow or no flow of cash for
cash equivalent. (2)

1.Goods purchased

2. issue of Bonus shares

3.plant Purchased

4. Interest Received

5. Redemption of Debentures

6. Cash deposited in Bank

7. Buy back of equity shares

8. Sale of Marketable Security

(b)X Ltd has given the following information, compute Cash Flow from Financing Activities as at 31st
March. (2)

Particular 2018(Rs) 2019 (Rs.)

Bank Overdraft 50,000 70,000

Share Capital 7,00,000 9,00,000

Security premium reserve ------ 20,000

Long term Borrowing

10% Debentures 2,00,00 3,00,00

Additional Information

1. Interim Dividend paid Rs. 70,000

2. Interest on Bank overdraft Rs. 5,000

Q8. On 1st April 2019, Sun India Ltd. Issued 10,000 12% debentures of Rs 100 each at a discount of 5% ,
redeemable at par as per as follows.(4)

On 31st March 2020. 2000 Debentures

On 31st March 2021. 5000 Debentures

On 31st March 2022. 3000 Debentures

Interest is speed andually on 31st March.

You are required to pass the journal entries for issue of the debentures, interest for three years .

Q9. From the following Balance sheet of ABC Ltd, prepare the Cash Flow Statement as at 31st March. (6)

Particular Note 31-3-2018 31-3-2019

No.
Rs. Rs

I. Equity and Liabilities

(1) Shareholders Fund

(a) Share capital 6,00,000 6,00,000

(b) Reserve and surplus 1,80,000 3,00,000

(3) current Liabilities:

(a) Trade Payable 1,70,000 2,00,000

(b) Other Current Liabilities 20,000 15,000

Total 7,70,000 11,15,000

II. Assets

(1) Non Current Assets

(a) Fixed Assets

(i) Tangible Assets 3,00,000 6,75,000

(ii) Intangible Assets 20,00 50,000

(2). Current Assets

(a) Inventories 1,40,000 1,00,000

(b) Trade Receivable 2,20,000 2,30,000

(c) Cash and Cash Equivalent 30,000 40,000

 (d) Other Current Assets 10,000 20,000

Total 7,70,000 11,15,000

Depreciation on Tangible Assets was 3,75,000.

e.