Page 367 - AAAXII

Model Test Papers M.351

Working Notes:
1. Calculation of Amount due on Allotment but not paid by A:
30,000
Number of Shares allotted to A = ¥2,000 = 1,000 shares.
60,000
`
Application Money paid by A (2,000 × ` 40) 80,000
Less: Application Money adjusted on application (1,000 × ` 40) 40,000
Excess Application Money to be adjusted on allotment 40,000
Towards Share Capital Towards Securities Premium Reserve
` `
Amount Due on Allotment 40,000 (i.e., ` 40 × 1,000) 10,000 (i.e., ` 10 × 1,000)
Less: Excess Application Money
to be adjusted on Allotment 40,000 ...
Amount due on Allotment but not paid by A ... 10,000
2. Calculation of total amount received on allotment: ` `
Total allotment amount due (30,000 × ` 50) 15,00,000
Less: Excess Application Money adjusted on allotment 12,00,000
Allotment money due but not paid by A 10,000 12,10,000
2,90,000

PART B
18. No adjustment needs to be made because by definition of Operating Activity it is neither
an Investing Activity nor a Financing Activity. Hence, it is an Operating Activity.
19. Current Investment is shown as Cash and Cash Equivalent in Cash Flow Statement.

20. (a) Major Head: Non-current Assets
Sub-head: Long-term Loans and Advances.
(b) It is shown under ‘Shareholders’ Funds’.
(c) ‘Provision for Doubtful Debts’ is deducted from the total amount of
Trade Receivables.
Net Profit before Interest, Tax and Dividend
21. Return on Investment = ¥ 100
Capital Employed
` 11,00,000
= ¥ 100 = 13.75%.
` 80,00,000
Working Note:
Calculation of Net Profit before Interest, Tax and Dividend:
Let Net Profit before Tax = ` 100; Tax = ` 40
Net Profit after Interest and Tax = ` 100 – ` 40 = ` 60
` 100
Net Profit before Tax = ` 6,00,000 ¥ = ` 10,00,000
` 60
Ê 10 ˆ
Net Profit before Interest and Tax = ` 10,00,000 + ` 10,00,000 ¥ 100 ¯ ˜ = ` 11,00,000
Á
Ë