Page 10 - AAAXII

Model Test Papers M.7
17. Sun Ltd. invited applications for 2,00,000 Equity Shares of ` 100 each at a premium
of ` 10 per share. The amount was payable as follows:
On application ` 40 per share (including premium), on allotment ` 30 per share and
the balance on first and final call.
Applications for 3,00,000 shares were received. Applications for 40,000 shares were
rejected and pro rata allotment was made to the remaining applicants. Ramesh who was
allotted 2,000 shares, failed to pay the allotment and first and final call money. His shares
were forfeited. The forfeited shares were reissued at ` 90 per share as fully paid-up.
Pass necessary Journal entries in the books of company.
Or
Sangam Ltd. invited applications for 80,000 equity shares of ` 10 each at par. The
amount was payable as follows:
On Application : ` 2;
On Allotment : ` 4; and
On First and Final Call : ` 4.
Applications for 1,00,000 shares were received. Allotment was made on pro rata basis
to all the applicants. Excess money received on applications was adjusted on sums due
on allotment. Satnam, who had applied for 1,000 shares, failed to pay the allotment
money and his shares were immediately forfeited. Harnam did not pay the first and
final call on 800 shares allotted to him. His shares were also forfeited. All the forfeited
shares were reissued at ` 12 per share as fully paid-up.
Pass necessary Journal entries in the books of Sangam Ltd. for the above transactions.
Also show your workings. (8)
PART B
ANALYSIS OF FINANCIAL STATEMENTS
18. State with reason whether purchase of fixed asset on ‘Long-term Deferred Payment’
basis would result in inflow, outflow or no flow of cash. (1)
19. Following relevant information is obtained from the books of Venugopalan Ltd.:
Particulars 31st March, 31st March,
2017 (`) 2018 (`)
Provision for Tax 50,000 70,000
The amount of tax paid during the year was ` 40,000. Find out the amount of tax
charged to Statement of Profit and Loss for the year ended 31st March, 2018. (1)

20. Young India Ltd. is in the process of preparing its Balance Sheet as per Schedule III,
Part I of the Companies Act, 2013 and to provide true and fair view of its financial
position and also to analyse its financial statements and its impact on the society. The
management has following queries:
(a) Under which head and sub-head will the company show ‘Building under construction’?
(b) How Provision for Doubtful Debts will be shown in the Balance Sheet?