Page 379 - AAAXII

M.362 An Aid to Accountancy—CBSE XII

Applications for 2,50,000 shares were received. It was decided:
(a) to refuse allotment for 10,000 shares;
(b) to allot in full to the applicants for 40,000 shares;
(c) to allot the balance of the available shares pro rata among the other applicants;
(d) to utilise excess application money in part payment of allotment money.
One applicant to whom shares had been allotted on pro rata basis failed to pay the
amount due on allotment and on the call and his 200 shares were forfeited. The shares
were reissued on 30th November, 2017 @ ` 9 per share as fully paid-up.
Show the Journal entries in the books of EP Ltd. and show Share Capital in the
Balance Sheet. (8)
PART B

ANALYSIS OF FINANCIAL STATEMENTS
18. Mutual Fund company received a dividend of ` 50 lakh on its investments in
other company’s shares. Why is it a Cash Inflow from Operating Activities for this
company? (1)
19. Name any two Cash Inflows from Operating Activities. (1)
20. How are the following items shown while preparing the Balance Sheet of a company:
(i) Computer Software; (ii) Prepaid Expenses;
(iii) Stores and Spares; (iv) Capital Work-in-Progress? (4)
21. (a) From the following information, calculate Return on Investment:
` `
Net Profit after Interest and Tax 55,000 Equity Share Capital 1,50,000
10% Debentures 1,00,000 Preference Share Capital 80,000
Tax 10,000 Reserves and Surplus 70,000
(b) Following information is given: `
Credit Revenue from Operations 8,00,000
Gross Profit Ratio 30%
Indirect Expenses 1,50,000
Calculate Net Profit Ratio, if Cash Revenue from Operations is 20% of Revenue
from Operations.
Or
From the following information of Naveen Ltd., calculate (a) Return on Investment
and (b) Total Assets to Debt Ratio:
Fixed Assets are ` 75,00,000; Current Assets are ` 40,00,000; Current Liabilities are
` 27,00,000; 12% Debentures are ` 80,00,000 and Net Profit before Interest, Tax and
Dividend is ` 14,50,000. (2 + 2)
22. (a) What is Common-size Income Statement?
(b) From the following information of Earth Ltd. for the year ended 31st March, 2018,
prepare a Common-size Statement of Profit and Loss:

Particulars Note No. 31st March, 2018 (`)
Revenue from Operations 60,00,000
Employees Benefit Expenses 30,00,000
Other Expenses 6,00,000