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Model Test Papers M.469

Applications were received for 75,000 shares. Application money received on
15,000 shares was refunded and allotments were made on pro rata basis to the
applicants of 60,000 shares. Excess application money including premium received
was adjusted against amount due on allotment.
Mr. Sharma to whom 700 shares were allotted failed to pay the allotment money and his
shares were forfeited by the Directors on his subsequent failure to pay the call money.
All the forfeited shares were subsequently issued to Mr. Jain for ` 9 per share credited
as fully paid.
Pass the Journal entries in the books of Shakti Ltd. and prepare Cash Book assuming
that Calls-in-Arrears Account is maintained. (8)

PART B
ANALYSIS OF FINANCIAL STATEMENTS

18. List any two Operating Activities which result in outflow of cash. (1)
19. L & T Finance Ltd. has given term loans of ` 5,00,000, invested ` 8,00,000 in equity
shares of other companies and ` 10,00,000 in computers. It earned profit on sale of
equity shares ` 25,000 and dividend of ` 5,000.
Find Cash Flow from Investing Activities. (1)
20. (a) Name any two sub-heads under the head ‘Current Assets’ in the Assets part of the
Balance Sheet as per Schedule III, Part I of the Companies Act, 2013.
(b) State any two objectives of Financial Analysis. (4)
Or
State giving reason whether Trade Receivables are Current Assets or Non-current
Assets in the following cases:

Case Operating Cycle Period Expected Realisation Period
1 11 Months 10 Months
2 11 Months 12 Months
3 11 Months 13 Months
4 14 Months 13 Months

21. Inventory Turnover Ratio 4 times; Inventory at the end ` 40,000 more than that in
the beginning. Revenue from Operations ` 6,00,000. Gross Profit Ratio 25%. Current
Liabilities ` 80,000. Quick Ratio 0.75. Calculate Current Assets. (4)
22. Slow & Steady Ltd. recognising the hard work and dedication put in by its workers in
their work, decided to give its staff extra bonus equal to two months’ salary. Following
is the Comparative Balance Sheet of the company as at 31st March, 2017 and 31st
March, 2018: