Answer Key – PGT Commerce – All Chapter
Issue of Shares
PGT – Commerce
KVS
1 (b) Writing off the Preliminary expenses 2 (c) Transferred to the capital reserve account 3 (b) Rs. 15,000 4 (c) Rs. 13,500 5 (c) Reserve capital 6 (b) Paid-up Capital 7 (a) Rs. 750 8 (b) Rs. 1,400
NVS
1 (c) Securities premium account 2 (b) Issue of sweat shares 3 (b) Capital reserve account 4 (c) In case of forfeiture of shares, discount on forfeited shares should be debited 5 (d) Rs. 78,000 6 (a) 3,60,000 7 (b) Rs. 60
DSSSB
1 (a) (ii) and (iii) 2 (b) The agreed portion of the unsubscribed part 3 (a) Creditors of the company 4 (d) Liabilities side of the Balance Sheet 5 (c) Called up amount of shares 6 (a) Fixed
H-TET
1 (d) Rs. 8 2 (a) For non-payment of call money 3 (a) 5 % of nominal value of shares
Army School
1 (b) Allotment money 2 (a) 5% 3 (b) 2 ½ % 4 (d) up to 2.5% 5 (a) 2.5%
UP GPT
1 (c) Rs. 30 2 (d) All of the above 3 (c) Transferred to capital reserve account 4 (c) 48
Buy Back of Shares
PGT – Commerce
KVS
1 (d) An earlier issue of the same kind of shares or same kind of other specified securities 2 (d) Issue of bonus shares
NVS
1 (a) 1
DSSSB
1 (b) Payment of retained earnings
UP GPT
1 (a) Issue of bonus shares
Issue of Debenture
PGT – Commerce
KVS
1 (a) 6,250 2 (d) Capital Reserve
NVS
1 (a) It is an owner’s capital 2 (d) Zero coupon rate debentures 3 (a) Credited 4 (c) Charge 5 (d) 30,000
H-TET
1 (b) 30,000
Army School
1 (d) Equity shares may be exchanged at the option of the debenture holders
UP GPT
1 (b) 30,000
Redemption of Debenture
PGT – Commerce
KVS
1 (b) Debenture redemption reserve
NVS
1 (c) General Reserve
Army School
1 (d) General Reserve 2 (a) Sinking Fund A/c ———-Dr.; To Sinking Fund Investment A/c
Financial Statement of Companies
PGT – Commerce
KVS
1 (b) Contingent Liabilities 2 (a) Current Liability 3 (c) Rs. 3,60,000
NVS
1 (c) Other current Liabilities 2 (c) Turnover 3 (d) Shareholder’s funds 4 (b) Funds Flow Statement 5 (a) Rs. 15,00,000 6 (a) Rs.7,500 net income 7 (c) Provisions should always be classified as current liabilities
DSSSB
1 (c) On the liabilities side under current liabilities 2 (c) Provision for dividend 3 (c) Final Account
H-TET
1 (b) Provision for the bad debts 2 (a) 1-(ii) 2-(i) 3-(iv) 4-(iii)
UP GPT
1 (b) Liability side of the balance sheet 2 3 (b) By adding to the paid up capital
Amalgamation of Companies
PGT – Commerce
DSSSB
1 (a) Merger 2 (c) Net Assets Method 3 (c) Amalgamation includes Absorption
Jharkhand
1 (a) Rs.3,75,000 2 (d) Two or more existing companies go into liquidation and a new company is formed to take over their business
Holding Companies
PGT – Commerce
DSSSB
1 (d) It is a subsidiary company 2 (b) Government Subsidiary Company
Jharkhand
1 (b) As at the date of the consolidated balance sheet
Ratio
PGT – Commerce
KVS
1 (b) Firm’s debt servicing capacity 2 (a) 5 3 (c) Rs.2,00,000 4 (c) Have no effect on current ratio 5 (d) 6 (c) 1:1 7 (b) 8 times 8 (a) 2.5:1 9 (c) Both (a) and (b)
NVS
1 (b) Turnover ratio 2 (c) 22,500 3 (b) 1:1 4 (a) 2.0 5 (c) Interest Coverage 6 (b) Debt equity ratio 7 (d) 20 percent 8 (c) Liquid ratio
DSSSB
1 (a) Realization of cash from debtors 2 (b) Equity Share 3 (b) 4 (a) Debt equity ratio 5 (a) Loss 6 (d) Rs. 4 7 (c) DuPont Analysis
H-TET
1 (d) Efficiency ratios and Turnover ratios 2 (c) Low financial crisis
Army School
1 (d) INTEREST COVERAGE RATIO 2 (b) 50 % 3 (c) Idle assets 4 (b) 4 times 5 (d) A-III; B-I; C-IV; D-II
UP GPT
1 (c) 4:3 2
Cash Flow Statement
PGT – Commerce
KVS
1 (d) It is superior to income statement 2 (b) Rs.15,15,000
NVS
1 (c) Investing activities 2 (b) Cash flow from Financing Activities 3 (a) 25,000 4 (d) It is superior to income statement 5 (d) Rs. 2,68,000
DSSSB
1 (c) Cash Flow Statement 2 (c) Net profit + non-cash expenses + decease in current assets 3 (c) Rs. 10,000 4 (b) Operating activities 5 (b) Procuring Activity
H-TET
1 (c) Cash Flow Statement
Army School
1 (c) AS-3
Financial Statement Analysis
PGT – Commerce
KVS
1 (a) Ratio analysis 2 (c) To show financial position through balance sheet and profitability through profit & loss account 3 (d) Horizontal Analysis 4 (d) Financial statements do not contain qualitative information
NVS
1 (c) Cash Budget
DSSSB
1 (b) Profit and Loss Account Statement 2 (c) Common Size
Army School
1 (b) Vertical 2 (a) Horizontal