GULZAR GROUP OF INSTITUTIONS, LUDHIANA

B.Com. (Hons.) V Semester/MST-II/S1/ November, 2021

Roll Number ……….…………. Date of Exam: November 26, 2021

Subject Code: BCOM501-18 Subject Name: Financial Management
Time: 1:30 hrs. Max. Marks: 24
Instructions:
● Section-A is compulsory.
● Section-B carries 3 questions, attempt any 2 questions.
● Section-C carries 2 questions, attempt any 1 question.
● Students are not allowed to leave examination hall before completion of 1.00 hour
● Simple calculator is permitted.

Section-A (2x4=8 marks)

Q.1 Illustrate Minimum Subscription with reference to issue of shares.
Q.2 Define any two Zoological Goodwill with practical example.
Q.3 Illustrate escrow account.
Q.4 Distinction between calls in advance & calls in arrears.

Section-B (4x2=8 marks)

Q.5
Q.6
Q.7 How far do you agree those dividends are irrelevant? Comment with conviction.

Section-C (8x1=8 marks)

Q.8 DEF company limited issued a prospectus inviting applications for 20000 shares of Rs.
10 each at a premium of Rs. 2 per share
.
Q9. A proforma Cost sheet of a company provides the following particulars:
Elements of cost Amount per unit (In
Rs.)
Raw material 80
Labour 30
Overheads 60
 Profit 30
Selling Price 200
The following further particulars are available:
Raw material is in stock on an average for one month. Work-in-process on an average for
half a month. Finished goods are in stock on an average for one month.
Credit allowed by supplier is one month. Credit allowed to customers is two months. Lag in
payment of wages is one and half month, overheads are in one month.
One fourth of the output is sold against cash & cash in hand is expected to be Rs. 25000.
You are required to prepare a statement showing the working capital needed to finance a
level of 104000 units of activity. You may assume the production is carried on evenly
throughout the year, wages & overheads accrue similarly & time period of four weeks is
equivalent to a month.

…………..…End of Paper…………………