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Model Test Papers M.131

17. Star Ltd. invited applications for 3,00,000 Equity Shares of ` 10 each at a premium of
10%. The amount was payable as follows: ` 4 on Application and Balance on Allotment
(including premium). Applications for 4,00,000 Equity Shares were received and pro
rata allotment was made to all the applicants. Excess money received on application
was adjusted towards sums due on allotment. Somu who was allotted 6,000 shares
failed to pay the allotment money. His shares were forfeited. The forfeited shares were
reissued at ` 9 per share, as ` 10 paid-up.
Pass necessary Journal entries in the books of the company assuming that
Calls-in-Arrears Account is maintained by the company.
Or
Faber Castle Ltd. invited applications for 2,00,000 Equity Shares of ` 10 each at a
premium of ` 3 per share. The amount was payable as follows:
On application: ` 8 per share (including premium); on allotment: the balance amount.
Applications for 3,00,000 shares were received. Applications for 50,000 shares were
rejected and money refunded. Shares were allotted on pro rata basis to the remaining
applicants. Allotment was made and was duly received except on 2,500 shares
applied by Kanwar. His shares were forfeited. The forfeited shares were reissued at
` 7 per share as fully paid-up.
Pass necessary Journal entries for the above transactions in the books of the company
assuming that Calls-in-Arrears Account is maintained by the company. (8)

PART B
ANALYSIS OF FINANCIAL STATEMENTS
18. What is meant by Investing Activities? (1)
19. Moon Ltd. paid ` 6,00,000 as instalment for machinery purchased on credit which
includes interest of ` 20,000. How will this payment be shown while preparing
Cash Flow Statement? (1)
20. Under which major heading and sub-heading will be the following items shown in the
Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013:
(i) Long-term Borrowings; (ii) Trade Payables;
(iii) Provision for Tax; (iv) Money Received Against Share Warrants;
(v) Patents; (vi) Accrued Incomes;
(vii) Cheques/Draft in Hand; (viii) Calls-in-Advance? (4)

21. From the following information, prepare a Comparative Statement of Profit and Loss
of JK Ltd:

Particulars 31st March, 31st March,
2017 2018
Revenue from Operations ` 80,00,000 ` 1,20,00,000
Expenses ` 48,00,000 ` 84,00,000
Other Incomes ` 16,00,000 ` 14,40,000
Income Tax 50% 50%