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Sample Papers Answer all questions. Marks are indicated against each question. 1.

The dividend declared by the Board of Directors between two annual general meetings is called as (a !ro"osed dividend (b #inal dividend (c $nterim dividend (d Declared dividend (e %n"aid dividend. (1 mark &. $n which of the following situations' "rice earnings ratio is a""lied( (a To determine the financial risk of a business entity (b To determine the e)"ected market "rice of the shares of a com"any (c To assess the earning "otential of a com"any in the near future (d To e)amine the o"erational efficiency of a com"any (e To check how efficiently the assets are utili*ed by a firm. (1 mark +. $f the holding com"any receives dividend out of "re,acquisition "rofits of the subsidiary com"any' it will be (a -redited to the ca"ital reserve account (b Debited to the ca"ital reserve account (c -redited to the consolidated "rofit and loss account (d Debited to the consolidated "rofit and loss account (e $gnored com"letely. (1 mark .. /hich of the following items could a""ear in a com"any0s cash flow statement( (a !ro"osed dividends (b #orfeiture of shares (c Bonus issue of shares (d 1e"ayment of loan (e -onversion of debentures into equity shares. (1 mark 2. 3ross 4alue Added is equal to (a 5et 4alue Added 6 De"reciation (b 5et 4alue Added 6 $nterest (c 5et 4alue Added 7 De"reciation (d 5et 4alue Added 7 $nventory (e 5et 4alue Added 6 $nventory. (1 mark 8. An amalgamating com"any transfers its assets to the 1eali*ation Account at (a Agreed values (b #air market values (c 9riginal costs

(d Book values (e Agreed value or book value' whichever is less. (1 mark :. The issued and "aid,u" share ca"ital of Al"ha ;imited is as follows< 1'=='=== equity shares of 1s.1= each' fully "aid 1s.1='=='=== >? !reference shares of 1s.2= each' fully "aid 1s. 2'=='=== #or the year ended March +1' &==:' the com"any has "aid the "reference dividend for the year and an interim dividend of 1s.& "er share on the equity shares during the year. A final equity dividend of 1s.+ "er share is "ro"osed (e)cluding interim dividend . /hat is the total amount of dividends for the year ended March +1' &==:( (a 1s.2'>='=== (b 1s.&'.='=== (c 1s.+'.='=== (d 1s.2'.='=== (e 1s.2'=='===. (& marks >. /hich of the following items re"resent use of funds( (a @ale of land and building at loss (b Dividend "ro"osed and not yet declared (c @ale of trade marks and "atent rights (d 5et loss from o"erations (e Amorti*ation of goodwill. (1 mark The "rofits earned by a subsidiary com"any before holding com"any acquires control over it are known A. as (a 1evenue "rofits (b -a"ital "rofits (c @u"er "rofits (d 5ormal "rofits (e Minority interest. /hich of the following is not an item to be recorded under -urrent Assets' ;oans and Advances under B 1=. !art 1 of @chedule 4$ of the -om"anies Act' 1A28( (a $nterest accrued on investment (b Bills of e)change (c Balances with customs' "ort trust' etc (d Develo"ment e)"enditure not adCusted (e ;oose tools. (1 mark B

11. Darnings "er share can be classified as a (a ;iquidity ratio (b 9wnershi" ratio (c ;everage ratio (d Activity ratio (e -a"ital gearing ratio. (1 mark B 1&. An interest coverage ratio of &.&2 indicates that (a Darnings before interest and ta)es is &.&2 times the interest "ayable (b Darnings before ta)es is &.&2 times the interest "ayable (c Darnings after ta)es is &.&2 times the interest "ayable (d 1etained earnings are &.&2 times the interest "ayable (e Darnings before de"reciation and ta)es is &.&2 times the interest "ayable. (1 mark 1+. -onsider the following data of a com"any< !articulars 1s. -redit sales +'=='=== -ost of sales &'=='=== Debtors 1'&='=== -reditors &'2='=== The average collection "eriod for the com"any is (a 8= days (b :+ days (c 1.8 days (d &1A days (e &.= days. (& marks B 9n March +1' &==:' A ;td. acquired B ;td. As on that date B ;td.0s balance sheet was as follows< 1.. ;iabilities 1s. Assets 1s. Dquity share ca"ital +'=='=== 5et fi)ed assets 1+'=='=== 1eserves and @ur"lus A'2='=== -urrent assets 2':='=== -urrent liabilities :'&='=== !reliminary D)"enses 1'=='=== Total 1A':='=== Total 1A':='=== $f all the assets and liabilities of B ;td. are taken over at their book values' the "urchase consideration "ayable by A ;td. is (a 1s.1&'&.'=== (b 1s.11'2='=== (c 1s.12'&&'=== (d 1s.1.'+='=== (e 1s.1='&>'===.

(& marks The "rofit and loss account of %rmila ;td. for the year ending March +1' &==: showed a debit balance B A 12. of 1s.:2'===. @ubsequently' the following omissions were noticed< 3oods worth 1s.+'=== returned to the su""lier were not recorded in the books. The rent of the godown is 1s.&.'=== "er annum' out of which only 1s.&='=== was "aid. The rent accrued but not "aid was not recorded in the books of account. The "rofitEloss made by the com"any after considering the above transactions is (a 1s.:8'=== (!rofit (b 1s.:.'=== (!rofit (c 1s.>+'=== (;oss (d 1s.8A'=== (!rofit (e 1s.:8'=== (;oss . (& marks BA 18. -onsider the following data regarding 3angadhar !ublications ;td. for the year &==8, =:< !articulars 1s. in lakh !rofit as "er "rofit and loss a""ro"riation account +> De"reciation > Dividends "aid &= !reliminary e)"enses written off 1= #unds from o"erations of 3angadhar !ublications ;td. during the year &==8,=: amounted to (a 1s.1== lakh (b 1s. >& lakh (c 1s. :8 lakh (d 1s. .& lakh (e 1s. .= lakh. (& marks The following are the balance sheets of A ;td. and B ;td. as on March +1' &==:< 1:. A ;td. B ;td. A ;td. B ;td. ;iabilities Assets 1s. 1s. 1s. 1s. @hare -a"ital< Dquity shares of .'=='=== &'.='=== #i)ed Assets &'>='=== &'=='=== 1s.1= each $nvestments< !rofit and ;oss aEc 1'=='=== :='=== .'=== shares in B ;td. .>'=== 7 -urrent ;iabilities &='=== +='=== -urrent Assets 1'A&'=== 1'.='=== Total +'.='=== Total 2'&='=== 2'&='=== +'.='===

B ;td. was absorbed by A ;td. and the "urchase consideration was fi)ed at 1s.1'A&'===. The "ro"ortinate share of A ;td.' in the "urchase consideration "ayable to B ;td.' was (a 1s..>'=== (b 1s..='=== (c 1s.+&'=== (d 1s.2='=== (e 1s. >'===. (& marks 1>. /hich of the following is a use of funds that decreases cash in cash flow statements( B (a A gross increase in fi)ed assets (b A net decrease in any asset other than cash or fi)ed assets (c !roceeds from sale of equity shares (d #unds from o"erations (e A net increase in any liability. (1 mark 1A. /hich of the following statements is false( B (a A bill drawn by the holding com"any and acce"ted by its subsidiary com"any is an outside obligation (b A consolidated balance sheet shows the assets and liabilities of the holding com"any and its subsidiaries (c A holding com"any can acquire control over its subsidiary com"any by controlling the com"osition of board of directors of the subsidiary com"any (d The time interval between the dates of balance sheet of holding com"any and subsidiary com"any cannot be more than 8 months (e !re"aration of consolidated balance sheet is not com"ulsory in $ndia. (1 mark &=. Dvery figure in the financial statements for the first year is considered as 1== "ercent while the B corres"onding figures for the subsequent years are e)"ressed as a "ercentage of the first year figure. /hich ty"e of analysis is being carried out( (a -ross,sectional analysis (b Fear,to,year change analysis (c $nde) number trend analysis (d -ommon si*e analysis (e #unds flow analysis. (1 mark &1. The o"ening balance of !rofit and ;oss A""ro"riation account of /ord /orld ;td. for the year &==8,=: B was 1s.:'2==. The dividends "aid to shareholders were 1s.1'2==. The ending balance of !rofit and ;oss

A""ro"riation account was 1s.2'===. The net income or net loss for the accounting "eriod was (a 5et loss of 1s.1'=== (b 5et income of 1s.1'=== (c 5et loss of 1s.&'=== (d 5et income of 1s.&'=== (e 5et income of 1s.8'2==. (& marks B &&. $ssue of bonus shares by a subsidiary com"any out of its "re,acquisition "rofits will (a Decrease cost of control (b $ncrease cost of control (c Gave no effect on cost of control (d $ncrease revenue "rofit (e Decrease revenue "rofit. (1 mark (1 mark &+. Ta) deducted at source on the "ayments made by a com"any a""ears in the Balance @heet of the com"any on the (a ;iabilities side under current liabilities (b ;iabilities side under "rovisions (c Assets side under current assets (d Assets side under loans and advances (e Assets side under miscellaneous e)"enditure. (1 mark &.. /hich of the following is a source of funds while carrying out funds flow analysis on total resources basis( (a 1edem"tion of "reference share ca"ital (b $nstallation of a ca"ital asset (c -onversion of debentures into equity shares (d @elling an old car today in order to buy a new one after one year (e Buy back of equity shares. (1 mark /hile "re"aring a funds flow statement on working ca"ital basis' a short term loan re"aid in cash by the &2. organi*ation (a $s shown as a source of funds (b $s shown as an increase in cash (c $s shown as a decrease in cash (d $s shown as increase in working ca"ital (e $s shown as decrease in working ca"ital.

(1 mark &8. The following data are available from the books of Hudo -om"any< -ash inflow from o"erating activities is 1s.1'&A'===. -ash used for investing activities is 1s.1'=='===. -ash used for financing activities is 1s.+2'===. -ash at the beginning of the "eriod is 1s.A2'===. -ash at the end of the "eriod amounts to (a 1s. >A'=== (b 1s.1'=1'=== (c 1s. +1'=== (d 1s. A>'=== (e 1s.1'2A'===. (& marks &:. Dividends are usually "aid as a "ercentage of (a Authori*ed share ca"ital (b 5et "rofit (c !aid,u" ca"ital (d -alled,u" ca"ital (e @ubscribed ca"ital. (1 mark As "er @chedule 4$' of the -om"anies Act' 1A28' which of the following is true regarding the treatment &>. of calls in arrears in the final accounts of a com"any( (a The amount will be shown under the head Icurrent assets0 on the assets side of the balance sheet (b The amount will be deducted from the called,u" ca"ital in the balance sheet (c The amount will be shown under the head Icurrent liabilities0 (d The amount will be shown in the "rofit and loss account as a loss without showing it in the balance sheet (e The amount will be added to the share ca"ital in the balance sheet. (1 mark $n terms of !art $ @chedule 4$ of the -om"anies Act' 1A28' which of the following assets is categori*ed &A. under the head J#i)ed AssetsK( (a 4ehicles (b ;oose tools (c Debts outstanding for a "eriod e)ceeding si) months (d Debts due by directors (e $nvestments in 3overnment or Trust securities. (1 mark /hich of the following ratios is not an ownershi" ratio( +=.

(a ;everage ratio (b -a"ital structure ratio (c -overage ratio (d Dividend ratio (e $nventory turnover ratio. (1 mark +1. A com"any0s system of maintaining books of accounts (a Must be the same as all the other com"anies which are o"erating in the similar line of business (b -an be different from the other com"anies which are o"erating in the similar line of business (c Must be disclosed' if it is different from the recognised system of accounting (d Must be on accrual basis and according to the double entry system of accounting (e -an be on cash basis of accounting with the a""roval of the 1egistrar of -om"anies. (1 mark +&. /hich of the following statements is true with regard to the consolidated financial statements( (a The total equity re"resents the "arent com"any0s equity "lus subsidiary com"any0s equity (b 5o investment in subsidiary com"any a""ears as an asset in the balance sheet (c Minority interest is not shown in the consolidated balance sheet (d 3oodwill could never be re"orted as an intangible asset in the consolidated balance sheet (e $nter,com"any transactions need not be eliminated. (1 mark ++. The current ratio of a com"any is &<1. /hich of the following transactions would im"rove the ratio( (a !urchase of a fi)ed asset on credit (b -ash received from debtors (c @ale of office furniture for cash (d !urchase of stock,in,trade for cash (e Acce"tance of bills of e)change drawn by creditors. (1 mark +.. /hich of the following disclosures isEare considered a""ro"riate in the first financial statements "re"ared after the amalgamation( $. 5ames and general nature of business of the amalgamating com"anies. $$. Dffective date of amalgamation for accounting "ur"oses. $$$. The method of accounting used to reflect the amalgamation. $4. !articulars of the scheme sanctioned under a statute. (a 9nly ($ above (b Both ($ and ($$ above (c ($ ' ($$ and ($$$ above (d ($$ ' ($$$ and ($4 above (e All ($ ' ($$ ' ($$$ ' and ($4 above. (1 mark

+2. As "er @chedule 4$ of the -om"anies Act' 1A28' under which of the following heads is I!remium on issue of debentures0 shown in the balance sheet of a com"any( (a Miscellaneous e)"enditure (b Debentures (c 1eserves and sur"lus (d -urrent liabilities and "rovisions (e -urrent Assets. (1 mark (1 mark +:. /hich of the following statements is false in relation to the consolidated financial statements( (a As far as minority shareholders are concerned' there is no difference between "re, acquisition and "ost,acquisition "rofits (b The internal contingent liabilities should be shown by way of a note in the -onsolidated Balance @heet (c Any fall in the value of assets of the subsidiary after the date of acquisition should be treated as an ordinary revenue loss (d /hen bonus shares are issued out of "re,acquisition "rofits' there is no change in the cost of control (e -onsolidated financial statements "rovide financial information about economic activities of a grou" of enter"rises under the control of a "arent com"any. (1 mark B +>. /hich of the following is a leverage ratio( (a Debt,Dquity ratio (b -urrent ratio (c Luick ratio (d Accounts receivable turnover ratio (e 3ross "rofit margin ratio. (1 mark B +A. /hich of the following statements is false( (a An increase in share "remium account is a source of funds (b #unds flow refers to changes in short,term funds as well as long,term funds (c 5et "rofit earned less non,fund and non,o"erating e)"enses is equal to funds from o"erations (d -ash or credit sales at a loss decreases the working ca"ital (e 3oods "urchased on credit do not result in flow of funds. (1 mark B

.=. The starting "oint in the "re"aration of "roforma income statement is the "roCection of (a The amount of sales for the ne)t year (b The amount of raw material to be "urchased in the ne)t year (c The quantum of "roduct to be manufactured in the ne)t year (d Antici"ated earning "er share for the ne)t year (e Antici"ated dividend "er share for the ne)t year. (1 mark .1. #ollowing data is e)tracted from the books of @hri"ada ;td. for the year &==8,=:< -urrent 1atio 1.:2 Acid test 1atio 1.&2 @tock 1s.1'=='=== The current assets of @hri"ada ;td. amount to (a 1s.1':2'=== (b 1s.1'&2'=== (c 1s.1'2='=== (d 1s.+'2='=== (e 1s.&'&2'===. (& marks .&. D)cl ;td. acquired Building worth 1s.8'+='=== from ;ight,blue ;td. by issue of shares of 1s.1== at a discount of 1=?. The number of shares to be issued by D)cl ;td. to settle the "urchase consideration is (a 8'+== shares (b :'2== shares (c :'=== shares (d 2':&: shares (e 2'8:= shares. (& marks .+. 3iven below is the e)tract of income statement of HD ;td. for the years &==2,=8 and &==8,=:< (1s.0=== !articulars &==2,=8 &==8,=: Total sales 8== A== -ost of goods sold +2= 22= 3ross "rofit &2= +2= $f the sales for the year &==:,=> are estimated at 1s.11'=='===' the estimated gross "rofit for the year &==:,=> will be (a 1s.2'2='=== (b 1s.8'8='=== (c 1s..'&='=== (d 1s..'.='=== (e 1s.2'+='===.

(& marks The original cost of machinery is 1s.2='=== and accumulated de"reciation is 1s.&2'===. This machinery B ... is sold at a gain of 1s.8'===. The working ca"ital "rovided by the sale of the machinery is (a 1s.+&'2== (b 1s.+1'=== (c 1s.+='=== (d 1s.&A'2== (e 1s.&:'2==. (& marks B .2. 9n 9ctober =1' &==8' @un ;td. acquired 8=? shares in Moon ;td. at a cost of 1s.1>':2'===. Balance @heet of Moon ;td. as on March +1' &==: ;iabilities 1s. Assets 1s. @hare ca"ital &='=='=== #i)ed assets &>'2='=== (&'=='=== shares 1s.1= each -urrent assets +'>='=== -a"ital reserve 8'=='=== !rofit and loss account .'=='=== -urrent liabilities &'+='=== Total +&'+='=== Total +&'+='=== @un ;td0s share in ca"ital "rofits of Moon ;td. was 1s..'&='===. The amount of goodwill that is to be shown in the -onsolidated Balance @heet as on March +1' &==: was (a 1s.&'22'=== (b 1s.&'>2'=== (c 1s.8':2'=== (d 1s.+':2'=== (e 1s.1'+2'===. (& marks B .8. The following information relates to /estern ;td.< 5et worth to long,term debt ratio +.A:2 $nterest on long,term debt 12? $nterest "aid 1s. + lakh The 5et worth is (a 1s.:2.& lakh (b 1s.:A.2 lakh (c 1s.>1.. lakh (d 1s.>&.+ lakh (e 1s.>&.> lakh. (& marks B .:. The following information is e)tracted from the books of AB- -om"any ;td.< Total assets 1s.1'>='===

Debt to total assets ratio .<A The total debt of the com"any is (a 1s.A2'=== (b 1s.>2'=== (c 1s.>='=== (d 1s.:='=== (e 1s.A='===. (& marks The net "rofit of AB- ;td. is 1s..+'===' which is arrived after considering the following< .>. !articulars 1s. D)tension cost of building &'=='=== $ncome ta) 1'=='=== !rofit on sale of the undertaking 1'=='=== The Managing Director is entitled to a commission of +? of the net "rofit after charging such commission. The commission "ayable to the Managing Director is (a 5il (b 1s.8'22> (c 1s.A'A>> (d 1s..':.> (e 1s.:'=:>. (& marks G ;td. acquired :2? shares of @ ;td. on August 1' &==8. The equity share ca"ital of @ ;td. is B .A. 1s.1'=='===. The ;and and buildings of @ ;td. are a""reciated by 1s.&'=='===. The minority interest shown in the consolidated balance sheet as on March +1' &==: was (a 1s.&'=='=== (b 1s.1'2='=== (c 1s.1'=='=== (d 1s. :2'=== (e 1s. 2='===. (& marks B 2=. The following data "ertains to Amrit ;td. for the year ended March +1' &==:< !articulars 1s. @ales 1='=='=== 3ross "rofit &=? on sales 9"ening stock 1'.='=== -losing stock 1'>='=== The stock turnover ratio of Amrit ;td. as on March +1' &==: was (a :.1. times (b 2.1: times (c 8.&2 times

(d 2.== times (e 2.22 times. (& marks 21. Dividend yield is equal to (a Dividend 1ate (b Dividend "er shareE#ace value of the share (c Dividend "er shareEDarnings "er share (d Dividend "er shareE1etained earnings "er share (e Dividend "er shareEMarket "rice "er share. (1 mark The "ur"ose of internal reconstruction is 2&. (a To bring about a merger (b To bring about combination (c To acquire another com"any (d To float a new com"any to take over the business of an old com"any (e To bring about a reduction in ca"ital. (1 mark /hich of the following can be considered as a source of funds( 2+. $. $ncrease in current liabilities. $$. Decrease in current assets. $$$. Decrease in ca"ital. (a 9nly ($ above (b 9nly ($$ above (c 9nly ($$$ above (d Both ($ and ($$ above (e All ($ ' ($$ and ($$$ above. (1 mark 2.. /hich of the following isEare generally used for ratio analysis( $. !rofit and loss account. $$. Balance sheet. $$$. Trial Balance. $4. -ash Budget. (a 9nly ($ above (b Both ($ and ($$ above (c Both ($$ and ($$$ above (d ($ ' ($$ and ($$$ above (e All ($ ' ($$ ' ($$$ and ($4 above. (1 mark 22. /hich of the following is true with res"ect to sources and uses of funds( (a De"reciation and decrease in net working ca"ital are sources of funds (b De"reciation and decrease in net working ca"ital are uses of funds (c De"reciation is a source of fund but decrease in net working ca"ital is a use of fund (d De"reciation is a use of fund but decrease in net working ca"ital is a source of fund (e De"reciation and increase in net working ca"ital are uses of funds.

(1 mark 28. The details of the current assets and current liabilities of D"isolon ;td. for the financial year &==8,=: are given below< (1s. in lakh !articulars Debtors -ash balance $nventory -urrent liabilities Beginning 1== := += 8= Dnding 1&= 8= .2 22 The change in net working ca"ital of the com"any was (a 1s.12 lakh (b 1s.&= lakh (c 1s.&2 lakh (d 1s.+= lakh (e 1s.2= lakh. (& marks 2:. $nability to "ay dues by a firm to the financial institutions is indicated by (a $nventory turnover ratio (b Debtors turnover ratio (c -urrent ratio (d Debt service coverage ratio (e Debtors0 collection "eriod. (1 mark (e Debtors0 collection "eriod. (1 mark 2>. #ollowing data is e)tracted from the books of 4enus ;td. as on March +1' &==:< !articulars 1s. Darnings "er share +== Dividend "er share .= The dividend "ay,out ratio for the year &==8,=: was (a 1+.++? (b 18.8:? (c &8.8:? (d &+.++? (e 12.==?. (& marks 2A. The following information is given about !@ ;td.< $nventories 1s...= lakh @undry debtors 1s.+.= lakh -ash and Bank balances 1s.2.= lakh -urrent liabilities 1s.+.& lakh The quick ratio of the firm is (a 2..2 (b +.:2 (c +.8. (d &.2= (e 1.28.

(& marks Garris ;td. acquired &1'=== equity shares of @ati ;td. on December +1' &==8. The equity share ca"ital B 8=. of @ati ;td. as on March +1' &==: was 1s.+'=='=== (share of 1s.1= each fully "aid,u" . The net "rofit of @ati ;td. for the year ended March +1' &==: was 1s.1'=='===. The share of Garris ;td. in the ca"ital "rofits is (a 1s.1'=='=== (b 1s. 2&'2== (c 1s. :='=== (d 1s. :2'=== (e 1s. &&'2==. (& marks /ealth ;td. acquired 22? shares of 3old ;td. on #ebruary =1' &==8. /ealth ;td. sells goods at cost B 81. "lus &=?. During the year &==8,=:' it su""lied goods worth 1s.A='=== to 3old ;td.' out of which' 8=? are unsold and still in stock of 3old ;td. as on March +1' &==:. The unreali*ed "rofit on stock to be adCusted while "re"aring -onsolidated Balance @heet as on March +1' &==: was (a 1s. 2'=== (b 1s. 2'A.= (c 1s. A'=== (d 1s.1='>== (e 1s. 8'===. (& marks B 8&. The following information is related to Arnika $ndustries ;td.< -urrent liabilities 1s.12= lakh -losing inventory 1s.1== lakh -urrent ratio 1.2= Account receivables 1s.1== lakh /hat is the amount of cash and bank balance( (a 1s.1> lakh (b 1s.1= lakh (c 1s.1& lakh (d 1s.12 lakh (e 1s.&2 lakh. (& marks B 8+. Hu"on ;td. has furnished the following data for the year ended March +1' &==:< !articulars 1s. @ales +='=='=== Average inventory 2'=='=== $nventory turnover ratio +.8 times

3ross "rofit of Hu"on ;td. for the year ended March +1' &==: was (a 1s..&'=='=== (b 1s. 8'=='=== (c 1s.1>'=='=== (d 1s.1&'=='=== (e 1s. >':2'===. (& marks (& marks Anil ;td. re"orts net "rofit of 1s.&'2='=== and has an Dquity @hare -a"ital of 1s.1='=='===. 4imal ;td. 8.. re"orts "ost,acquisition "rofit of 1s.2='=== and has an Dquity @hare -a"ital of 1s.&'2='===. Anil ;td. owns >=? of the 4imal ;td.0s equity. The consolidated financial statements will re"ort (a 5et "rofit of 1s.+'=='=== (b 5et "rofit of 1s.&'A='=== (c @hare -a"ital of 1s.1&'2='=== (d @hare -a"ital of 1s.1&'=='=== (e $nvestments of 1s.&'2='===. (& marks 82. -onsider the following Balance @heet of 1avera ;td. as on March +1' &==:< ;iabilities 1s. Assets 1s. Dquity ca"ital (2='=== shares of 2'=='=== #i)ed assets 2'2='=== 1s.1= each 1eserves and sur"lus &'=='=== -urrent assets &'&2'=== -urrent liabilities :2'=== Total :':2'=== Total :':2'=== The "rofit after ta) for the year &==8,=: was 1s.1'=='===. The earning "er share for the year &==8,=: was (a 1s.2 (b 1s.8 (c 1s.& (d 1s.. (e 1s.+. (& marks (& marks -urrent liabilities are 1s.1='=== and current assets are 1s.12'===. $f debtors reali*ed 1s.&'=== and 88. 1s.8'=== worth "reference shares got converted into equity' the im"act on /orking -a"ital (/- would be (a Decrease of 1s.+'=== (b $ncrease of 1s.+'=== (c 5o change (d $ncrease of 1s.A'===

(e Decrease of 1s.A'===. (& marks The share ca"ital of @unny ;td. com"rises of Dquity @hare -a"ital (1s.1= each of 1s.+'=='===. Garry 8:. ;td. acquired &.'=== shares in @unny ;td. on Huly 1' &==: at the rate of 1s.1&.2= "er share. The cost of the investment and the holding "ercentage of Garry ;td. in @unny ;td. are (a 1s.&'.='=== and >2? (b 1s.+'=='=== and :=? (c 1s.&'.='=== and >=? (d 1s.1'&2'=== and >=? (e 1s.+'=='=== and >=?. (& marks 1aCu ;td. acquired 8=? shares of 1ani ;td. on 5ovember =1' &==8. The "rofit and loss account showed 8>. a debit balance of 1s.A='=== on A"ril =1' &==8 and a credit balance of 1s.1'2='=== on March +1' &==:. The share of minority in the ca"ital "rofitEloss of to be shown in the -onsolidated Balance @heet as on March +1' &==: was (a (1s.2='=== (b (1s..&'=== (c 1s.>.'=== (d (1s.:2'=== (e 1s.&='===. (& marks (& marks B The increase in equity from maCor o"erating activities of a business entity is known as 8A. (a -a"ital (b 3ross "rofit (c 5et worth (d 5et "rofit (e -ash in hand. (1 mark B :=. /hich of the following would directly affect the dividend yield( (a 1etention ratio (b Book value "er share (c 5ominal value of a share (d The cost of equity ca"ital (e Debt,equity ratio.

(1 mark