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Q.1 (a) Prepare Vertical Balance sheet and Profit and loss account from the following is the trial
balance of Kashyap Industries Limited as on 31st March 2011. Accounts Sotck 1st April 2010 Sales Wages Share Capital Discount Purchases Carriage Inward Purchase return Patents Salaries Bills Receivable Sundry Expenditure Bills Payable Rent Debtors and creditors Plant and Machinery Furniture Cash at Bank General Reserve Profit&Loss A/c, 31st TOTAL Dr.(Rs.) 100000 200000 4500000 20000 100000 100000 200000 180000 100000 500000 500000 700000 800000 8000000 Cr.(Rs.) 1050000 5000000 50000 200000 200000 500000 700000 300000 8000000

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Further Information: 1. Outstanding Rent and salaries amounted to Rs 8000 and Rs 9000 respectively. 2. Make a provision for doubtful debt Rs 7000. 3. Stock on 31st March 2010 was Rs 900000. 4. Provide 10% Depreciation on Plant and Machinery and 11% on Furniture. 5. Amortize Patents and trademarks @ 4%. 6. Provide for managerial remuneration @ 10% of the net profit before tax. 7. Make a provision for income tax @ 35%. 8. The Board of Directors proposes a dividend @ 10% for the year ended on 31st March 2011 after transfer to General Reserve @ 5% of profit after tax.

Q.2 (a) Explain the following concepts/Conventions with Example:

1. 2. 3. 4. 5. 6. 7. Accrual Concept Periodicity Concept Going Concern Concept Realization Concept Convention of Consistency Convention of conservatism Convention of Disclosure

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(b) The following are the details of net profit, equity capital and right issue etc of ABC limited for
the years 2008-09 and 2009-10. Determine the BEPS for both the years. Rs. And NOS. of Shares ( in crores) 2009-10 2008-09 112.00 96.00 21.00 2: 3 @ Rs 95 per share 1st December 2009 Rs 130.00

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Rs 130.00 OR . PQR limited supplies you with the following details for the year 2009-10. Determine its BEPS (b) and DEPS Rs. And NOS. of Shares ( in crores) 416.00 24.00 6.00 Rs 1400.00 Rs 1800.00

Net profit attributable to equity No of equity shares outstanding prior to Right issue Last date to exercise rights Fair value of one equity share immediately prior to Exercise Right on 1/12/2009

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Net profit No of equity shares outstanding Equity shares under options granted on Exercise Price for shares under options Fair Value (per equity share)

Q.3 (a) The profit of Mitesh Limited as shown by profit and loss account for the year ending on 31st
March 2010 was 150800 after making adjustment. Calculate cashflow from operation for the year 2009-10. Particulars (Amt in Rs.)

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Goodwill written off 5000 Depreciation written off 40000 Preliminary Expenditure written off 4000 Loss on sale of plant 8000 Profit on sale of plant 5000 Transferred to general reserve 20000 Proposed dividend 30000 Provision for taxation 25000 There was an increase of Rs 20000 in debtors and decrease of Rs 12000 in stock. Creditors were decreased of Rs 18000 and Bank overdraft was increased of Rs 2000

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(b) The following ratios with industry ratios are presented before you. Prepare a note analyzing them
along with suggested action plan for consideration and approval by your companys Board of Directors. Sr.No. Ratio Company Industry Ratio Ratio 1 2 3 4 5 6 7 8 Current Ratio Debtors Turnover StockTurnover Net Sales Margin (%) Net Profit to Total Assets(%) ROI(%) Total Debts to Total Assets (%) Total Assests Turnover OR 2.67 10 3.33 2.10 3.00 4.81 37.00 1.43 2.50 8 9.00 3.50 7.00 10.00 60.00 2.00

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Q.3 (a)
On 1/4/2000 Moon Limited purchased a plant for Rs 1000000. On 1/10/2000 an additional plant costing Rs 500000 was purchased. On 1/10/2001 plant purchased on 1/4/2000 was sold off for Rs 400000. On 1/10/2002 New plant was purchased for Rs 1200000 and plant purchased on 1/10/2000 was sold for RS 420000 on the same date. Depreciation is to be provoded at 10% per annum on the written down value on 31st March Every Year. Prepare The plant account for three years ended 31/03/2003

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(b) Explain the difference between US GAAP and Indian GAAP.. Q.4 (a) Explain AS-6 in detail (b) Anuj Energy Limited buys a building for the purpose of investments. It issues 260000 equity
shares of its company Which are quoted on the day of the deal at Rs 350 per share at the NSE. The company pays a brokerage of Rs 250000 to the property dealer involved the deal. The stamp duty is also incurred at 8% of the value of Building. Determine the value of this Investment Property OR

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Q.4 (a) Explain AS-10 in detail. (b) From the following information Compute Ending Inventory and Cost of Goods Sold by using
(1) Perpetual System (2) Periodic System Under FIFO Method.

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AFM TEST PAPER

Date 02/01/2011 09/01/2011 14/01/2011 25/01/2011 29/01/2011

Transaction Op. Balance Purchase Sold Purchase Sold

Units 300 700 450 1050 800

Price Per Unit 10.25 15.75 . 20.50 ..

Q.5 (a) Explain the difference between cash flow and fund flow. (b) Match the Accounting Equation A=C+L From following transactions:
( Here Assets=200000, Capital=150000& Liability =50000) 1. Good of Rs 10000 Purchased from Man. 2. Furniture Of Rs 10000 Sold. 3. Bank loan of Rs 30000 paid. 4. Vehicle of Rs 50000 purchased from Mona store by giving 10000 down payment. Brought 20000 cash in business (c) Rectify the following Errors: 1. Credit purchase from Suril of Rs 50000 were not recorded. 2. Sales Return book overcast by Rs 3000. 3. Total of purchase book Rs 7300 was recorded as 3700. 4. Credit sales to Raj Rs 10000 were recorded as Rs 1000 in sales book. 5.Depreciation of Machinery of Rs 2500 was not posted OR Q.5 (a) Explain the advantages of Ratio Analysis (b) What is the difference between Horizontal, vertical and Trend Analysis? Explain with suitable Example. (c) Varsha Limited has established a new project. Details of fixed assets and expenditure incurred during the construction of a project are given as under. Determine the cost of each asset at the end of completion of the project, ready for commercial production. Details Land Building Plant and Machinery Misc Fixed Assets Pre operative Administrative Expenses on start up Interest On term loan during the construction period Amount ( Rs.) 4400000 2250000 3350000 1000000 12000000 14000000 Total 37000000

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