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Model Test Papers M.511

3. Calculation of amount received on allotment later: `
Total allotment money due (10,000 × ` 5) 50,000
Less: Excess application money adjusted on allotment (Note 1) 8,000
42,000
Less: Allotment money due but not received (Note 2) 4,200
Amount received on Allotment 37,800
4. Calculation of amount transferred to Capital Reserve:
Amount forfeited on reissued shares (` 4,800/1,000 × 800) 3,840
Less: Reissue Discount (800 × ` 3) 2,400
Gain on reissue transferred to Capital Reserve 1,440
(b) All India Financial Institutions are exempt from transfer of profits to Debentures
Redemption Reserve (DRR). Therefore, Debentures Redemption Reserve will not
be created.
In the Books of Export-Import Bank of India
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2018
March 31 10% Debentures A/c ...Dr. 50,00,000
To Debentureholders’ A/c 50,00,000
(Being the amount due to debentureholders on redemption)
March 31 Debentureholders’ A/c ...Dr. 50,00,000
To Bank A/c 50,00,000
(Being the amount due to debentureholders paid)

PART B

18. No Flow. Reason: Because writing off the furniture is a non-cash transaction.
19. Investing Activities are the acquisition and disposal of Long-term Assets and other
investments not included in cash equivalents whereas Financing Activities are
activities that result in change in size and composition of the Owners’ Capital (including
Preference Share Capital in the case of a company) and Borrowings of the enterprise.
20. (a) Analysis of Financial Statements is useful to Finance Manager for taking financial
decisions for the business. Financial Analysis can throw light on the financial
position and the financial performance of the enterprise.
(b)

S. No. Items Mojor Heads Sub-heads
(i) Employees’ earned leave payable Non-current Liabilities Long-term Provisions
on retirement
(ii) Computer Software Non-current Assets Fixed Assets—Intangible Assets
(iii) Building under Construction Non-current Assets Fixed Assets—Capital Work-in-Progress
(iv) Capital Advance Non-current Assets Long-term Loans and Advances: Capital Advances
(v) Long-term Debt which has now Current Liabilities Other Current Liabilities: Current maturities of
become payable within 12 months long-term debts
(vi) Calls-in-Advance Current Liabilities Other Current Liabilities