Corporate Accounting — Summer 2024

Explain the differences between Receipts and Payments Account and Income andExpenditure Account

What is Cash Flow Statement? Explain its usefulness. Also Distinguish Cash Flow Statement and Fund Flow Statement.

What is meant by fund flow statement? Explain its importance

The following figures relate to the trading activities of a Company for the year ended 31 March 2023. Sales 1000000 Rent 6000 Purchases 700000 Stationery 2000 Opening stock 110000 Depreciation 10000 Closing stock 140000 Other expenses 20000 Sales returns 40000 Provision for tax 70000 Salaries 48000 Dividend received 12000 Advertising 7000 Profit on sale of assets 60000 Travelling exp 5000 Loss on sale of 3000 investment You are required to prepare the Corporate Profit & Loss Account (Income Statement)

What is forfeiture of shares? What are the legal requirements necessarily followed by the Board before forfeiture of shares?

Define Debenture and explain the various kinds of the debenture.

From the following information, calculate the value of shares of Rs. 10:

On dividend basis; and

On return on capital employed basis. Capital Profit Profit Year Weight Employed (Rs.) (Rs.) (Rs.) 2019 10,00,000 80,000 12% 1 2020 16,00,000 1,60,000 14% 2021 22,00,000 2,20,000 16% 2022 25,00,000 3,75,000 18% The market expecting being 10%. Use weighted average for calculation.1

What does meant by share valuation? State the factors affecting valuation of shares.

What Explain and illustrate the super-profit method of valuation of Goodwill.

What do you mean by Goodwill? Explain the characteristics of Goodwill.

On 1-4-2017 Prathna Limited issued 6000, 11% debentures of Rs. 100 each at a discount of 5%. All the debentures are to be redeemed after 6 years as on 31-3- 2023 at a premium of 10%. Pass necessary journal entries in the books of the company.

Write short note on: Issue of Equity Shares at-Par, at-Premium, at-Discount.

Sagar diamond ltd. Of Mumbai issued 300000 equity shares of RS 10 per share. Amount called up on application at RS 3 per share, on allotment RS 2.5 per share, on first call at RS 2.5 per share and on final call at RS 2 per share. Applications were received from public of 400000 shares.Applications for 100000 shares were rejected. Full amount were received from all shareholders except from a shareholder named Sima. Sima who was allotted 600 shares, did not pay final call money. Her shares were forfeited. Total shares of Sima were reissued as fully paid up at RS 9 per share. Pass journal entries in the book of company for the above transaction. (Narration not required)

The net assets in a firm amounted to Rs. 200000. Out of this, Rs. 20000 is represented by investment in 5 % Government Securities, purchased at face value. The expected future profit is Rs. 30000. The normal rate of return is 10% on closing capital employed. Calculate the value of goodwill by:- 1. Three year’s purchases of expected profits; 2. Five year’s purchases of super profit

“P&Lstatement concentrates on the results from the activities of business unit, where as Fund Flow Statement concentrates on the activities of the business unit” Examine this statement

Which AS is applicable on cash flow statement? Explain types of activities in cash flow statement

Write short note on: Intrinsic value of shares