From the information given below and the balance sheet of Cipla Limited on 31st December, 2018, find the value of shares by Intrinsic value method. Liabilities Amount Assets Amount 1000, 8% Preference 1,00,000 Building 70,000 Shares of Rs 100 each fully paid 4000 equity shares of Rs 4,00,000 Furniture 3,000 100 each fully paid Reserves 1,50,000 Stock ( Market Value) 4,50,000 Profit and loss account 5,10,000 Investments ( face value 3,35,000 4,00,000) Creditors 48,000 Debtors 2,80,000 Bank 60,000 Preliminary Expenses 10,000 12,08,000 12,08,000 Building is now worth of Rs 3,50,000 and the Preferential share holders are having preference as to capital and dividend.
[7 marks]Prepare statement indicating equity and liabilities of balances sheet as per Schedule III of Companies Act, 2013 from the following balances. Trade payables 30,000 Share Capital 2,00,000 Long term provisions 60,000 Short term provisions 35,000 Reserves and surplus 80,000 Long term provisions 1,20,000 Other current liabilities 25,000 Other long term 76,000 liabilities Short term borrowings 24,0001
[7 marks]From the following receipts and payments account of a club and from the information supplied, prepare an Income and expenditure account for the year ended 31-12-2018 and the Balance sheet as on that date Receipt and payment A/c For the year ending 31-12-2018 Dr Cr Receipts Rs Payments Rs To Balance b/d 250 By salaries 1,200 To subscription By general Expenses 300 To sale of old furniture ( 60 By electric charges 200 Cost price Rs 100) To Rent Received for the 740 By books 100 use of Hall To Profit from 400 By newspapers 400 Entertainment To sale of Newspaper 100 By postage 50 By furniture 250 By balance c/d 500 Total 3000 3000 Information 1) The club has 50 members, each paying annual subscription of Rs 25. Rs 50 are still in arrears for the year 2017. 2) On 31-12-2018 salaries outstanding amounted to Rs 100, salaries paid included Rs 100 for the year 2017 3) The opening capital fund as on 1-1-2018 is Rs 11,550. Prepare Income and Expenditure and Balance sheet as on 31-12-2018
[7 marks]Differentiate Receipts and Payments account with Income and Expenditure account..
[7 marks]TV Components Ltd., issued 10,000, 12% debentures of Rs 100 each at a discount of 5% payable as follows: On application Rs 40 On allotment Rs 55 Show the journal entries including those for cash, assuming that all the installments were duly collected. Also show the relevant portion of the balance sheet.
[7 marks]Differentiate between Shares and Debentures2
[7 marks]Konica Limited registered with an authorised equity capital of Rs. 2,00,000 divided into 2,000 shares of Rs. 100 each, issued for subscription of 1,000 shares payable at Rs. 25 per share on application, Rs. 30 per share on allotment, Rs. 20 per share on first call and the balance as and when required. Application money on 1,000 shares was duly received and allotment was made to them. The allotment amount was received in full, but when the first call was made, one shareholder failed to pay the amount on 100 shares held by him and another shareholder with 50 shares, paid the entire amount on his shares. The company did not make any other call. Give the necessary journal entries in the books of the company to record these share capital transactions.
[7 marks]Explain in detail the factors affecting the Value of shares
[7 marks]Prepare a Cash flow statement on the basis of the information given in the balance sheet of PS.Sltd. Liabilities 2012 2013 Assets 2012 2013 Share capital 2,00,000 2,50,000 Goodwill 10,000 2,000 12 % 1,00,000 80,000 Land and 2,00,000 2,80,000 debentures building Bills payable 20,000 1,00,000 Machinery 1,00,000 1,30,000 General 50,000 70,000 Debtors 40,000 60,000 Reserve Creditors 40,000 60,000 Stock 70,000 90,000 Outstanding 25,000 20,000 Cash 15,000 18,000 expenses 4,35,000 5,80,000 4,35,000 5,80,000
[7 marks]Enlist the items that come under operating and investing activities of Cash Flow statement.3
[7 marks]The summarized balance sheet of Kltd as on 31-3-2012 and 31-3-2013 are as follows Liabilities 2012 2013 Assets 2012 2013 Share capital 12,00,000 15,00,000 Buildings 8,00,000 7,60,000 14 % 6,00,000 4,00,000 Machinery 5,00,000 7,20,000 debentures P & L A/c 1,00,000 1,50,000 Short term 3,00,000 4,50,000 Investments General 3,00,000 3,50,000 Inventories 4,00,000 4,70,000 Reserve Creditors 4,90,000 5,60,000 Debtors 6,70,000 5,30,000 Proposed 1,20,000 1,80,000 Cash at bank 2,20,000 3,30,000 Dividends Provision for 1,00,000 1,30,000 Prepaid 20,000 10,000 taxation Expenses 29,10,000 32,70,000 29,10,000 32,70,000 Additional information:
[7 marks]Debentures were redeemed at a premium of 10 % ii) Taxes paid during the year amounted to Rs 1,40,000. iii) Amachine which appeared at a WDV of Rs 80,000 was sold for Rs 1,30,000 and a new machine worth Rs 3,60,000 was acquired during the year. After considering the above additional information, the net increase in working capital is Rs 1,10,000 and Funds from operations ( Adjusted P & L ) is Rs 5,20,000. Prepare Fund flow statement.
[ marks]State whether the following transactions increase or decrease or do not affect the working capital and give reasons. 1) Acompany issues Rs 1,00,000 worth of shares for cash. 2) Redemption of debentures worth Rs 2,00,000. 3) Amount received from debtors Rs 32,000 4) Amount paid to creditors Rs 15,000 5) Plant sold for Rs 40,000 6) Raw materials purchased Rs 60,000 from ZB Co on Credit basis. 7) Furniture purchased Rs 40,000 for cash.
[7 marks]The average net profit of a business as adjusted for valuation of goodwill amounted to Rs 2,35,000. The net tangible assets employed were of the value Rs 14,50,000. But upon valuation they amounted to Rs 15,00,000. Assuming that 10 % represented a fair commercial return, calculate the amount of goodwill by capitalizing super profits.
[5 marks]Explain the different methods of valuation of shares
[5 marks]