Page 299 - AAAXII

Model Test Papers M.285

Applications were received for 70,000 equity shares. The shares were allotted on pro rata
basis to the applicants of 60,000 shares; the applicants for remaining shares were rejected.
Excess Application Money was used against amount due on allotment. Puneet to whom
500 shares were allotted, failed to pay the allotment money and on his subsequent failure
to pay the first call, his shares were forfeited after the first call. Rahul to whom 800 shares
were allotted, failed to pay the two calls. His shares were subsequently forfeited after the
final call. Out of the shares forfeited, 1,000 shares were sold to Ajay credited as fully paid
at ` 9 per share, all of Rahul’s forfeited shares being included.
Pass Journal entries in the books of the company to record the above transactions and
show share capital in the Balance Sheet of the company.
Or
Moon Ltd. invited applications for subscribing 2,00,000 Equity Shares of ` 100 each
at a premium of ` 60 per share. The amount was payable as follows:
On Application : ` 30 (including ` 10 premium);
On Allotment : ` 70 (including ` 50 premium);
On First and Final Call : Balance.
Applications for 1,90,000 shares were received. Shares were allotted to all the applicants
and the company received all money due on allotment except from Ankit who had been
allotted 1,000 shares, and his shares were immediately forfeited. Afterwards first and
final call was made. Ankur did not pay the first and final call on his 2,000 allotted
shares. His shares were also forfeited. 50% of the forfeited shares of both Ankit and
Ankur were reissued for ` 90 per share fully paid-up. Shares were forfeited meeting
the due process of Law and by visit to the address of shareholders.
Pass the necessary Journal entries assuming that Calls-in-Arrears Account is
maintained. Also show share capital in the Balance Sheet of the company. (8)
PART B
ANALYSIS OF FINANCIAL STATEMENTS
18. Which transactions, in spite of there being flow of cash, are not considered as Cash
Flow? Why? (1)
19. Why is Cash Flow Statement prepared? (1)
20. (a) State how qualitative aspects are ignored in Financial Statements Analysis.
(b) State giving reason whether the Trade Receivables are Current Assets or
Non-current Assets in the following cases:

Case Operating Cycle Period (in Months) Expected Realisation Period (in Months)
1 11 13
2 14 13
3 14 15
(1 + 3)
21. (a) What is Common-size Balance Sheet?
(b) Prepare Common-size Balance Sheet from the following information:

Particulars 31st March, 2018 (`) 31st March, 2017 (`)
Shareholders’ Funds 18,00,000 12,00,000
Non-current Liabilities 6,00,000 6,00,000
Current Liabilities 6,00,000 2,00,000
Non-current Assets 21,00,000 14,00,000
Current Assets 9,00,000 6,00,000