CTY ACCTS VI 2019 C 2017-2022 SEAT NO: Number of Printed Pages :05

ST MIRA'S COLLEGE FOR

GIRLS, PUNE
(Autonomous-Affiliated to the Savitribai Phule Pune University)
CLASS: T.Y.B.COM
SEMESTER: VI
SUBJECT: ACCOUNTANCY
TITLE: Financial Management and Social Finance
SUBJECT CODE: C61702 YEAR: MAYIJUNE 2022
TIME: 2 HRS MAX. MARKS: 60

N.B.:(1) All questions are

compulsory.
(2) Figures to the right indicate full marks.
(3) Use of simple calculator is allowed.
Q.1 The following are the summarized Balance Sheet of a 20
company as on 31 March, 2018 and 31st March, 2019
respectively:
Balance Sheet of Jai Hind Ltd.
Particulars Note No. 2018 ) 2019 ()
I. Equity and Liabilities:
1. Shareholders' Funds
a). Share Capital 12,00,000 9,60,000
b). Reserve and Surplus 3,60,000 2,52,000
2. Non-current Liabilities
Long-term borrowings 2.40,000
3.Current Liabilities
a). Short-term borrowings
b). Trade payables 8,00,000 6,00,000
c).Other current liabilities 40,000 84,000
d Short term provision 3,60,000 2,04,000
Total 30,00.000|21.00.000
II. Assets
1. Non-current Assets
a) Fixed Assets
i)Tangible Assets 7 16,80,000 11,40,000
ii)Intangible Assets
b)Non-Current Investments

2. Current Assets
a) Inventories 4,80,000 1,20,000
b) Trade Receivables 8 6,00,000 7,20,000
c) Cash and Bank Balance 2,40,000 1,20,000
Total 30.00.000l 21.00.000
Notes:
No Particulars 2018 2019
1 Share Capital
Equity Share Capital 5,50,000 7,00,000
12% Preference Shares 6,50,000 2,60,000
Reserve and Surplus
2 General Reserves 1,50,000 2,00,000
Profit and Loss A/c 2,10,000 37,000
Security Premium 15,000

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VI 2019C 2017-2022 SEAT NO:

3 Long-term borrowings
2,40,000
Debentures
Trade Payables
Sundry Creditors 4,50,000 3,00,000
3,50,000 3,00,000
Bills Payable
5 Other current liabilities
Outstanding expenses 40,000 84,000
6
Short term Provisions 84,000
Proposed Dividend 1,20,000
Provision for taxation 2,40,000 1,20,000
7 Tangible Assets
Plant& Machinery 9,60,000 6,00,000
Land& Building 7,20,000 5,40,000
8 Trade Receivables
Debtors 4,00,000 6,00,000
Bills Receivables 2,00,000 1,20,000
Additional Information:
1. Dividend and Tax paid during the year were 50,000 and ? 1,85,000
respectively.
2. Equity shares were issued at a premium of 10%.
3. Plant& Machinery sold during the year worth 25,000.
4. Depreciation charged on Plant & Machinery amounted to 10,000.
You are required to prepare:
a) Schedule of Changes in Working Capital
b) Fund Flow Statement
c) Profit & Loss Adjustment Account.

OR
Q.1(A) Explain the factors affecting the capital structure decisions. 10

Q.1(B) Thefollowing data relates to published accounts of Raj Ltd. 10

companies as on 31" March, 2019.
Particulars Raj Ltd.(
Equity Capital:- 30,00,000
Shares ofR 100each
General Reserve
2,00,000
10%Debentures 4,50,000
Trade Creditors 2,80,000
Furniture and Fixtures
2,50,000
Machinery 8,00,000
Cash at Bank
Inventories 2,10,000
Bank over Draft 4,00,000
Premises 10,000
Bills Receivable 12,00,000
Sales 1,25,000
Net Profit after Taxes 32,00,000
5,20,000
You are required to calculate the
companies:-
following Ratios for both the
1) Net Profit Ratio

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CTY ACCTS VI 2019 C 2017-2022 SEAT NO: Number of Printed Pages :05

2) Fixed Asset Turnover Ratio

3) Current Asset Turnover Ratio
4) Fixed Asset Ratio
5) Return on Capital Employed.

Q.2 Calculate Market Price per share

using Gordon's Model from 10
thefollowing details when Dividend pay-out ratio is:
(a) 50 % (b) 80 %
Particulars Mona Spices Ltd. Jasmin Spices Ltd.
Rate of return 12% 10%
Cost of Equity 8% 12%
Earning price per share 7 40 60

Q.3 The following information is available in respect of the rate of 15

return of investment (r), the cost of capital (k) and earning per
share (E) of King Ltd.:-
Rate of Return on Investment(r) =
(a) 20%; (b) 18%;
and (c) 15%.
Cost of Capital (k) 18%
Earnings per Share (E) = R10/-

Determine the value of its shares using Gordon's Model

for different payment ratio of 100%, 70% and 20%.
OR

Q.3(A) Prepare Schedule of Changes in Working Capital from the 5

following details:
Particulars 2018 2019
Trade debtors 1,70,000 1,50,000
Bills receivable 70,000 60,000
Stock-in-trade 1,40,000 1,65,000
Prepaid expenses 50,000 45,000
Accrued Income 40,000 47,500
SundryCreditors 1,00,000 1,30,000
Outstanding expenses 6,000 7,000
Bills Payable 50,000 45,000
Income received in advance 5,000 6,000
Cash 68,000 48,000

Q.3(B) A Company is having Equity Share capital of T5,00,000 10

divided into share of T100 each in its present capital structure.
It is expecting an EBIT of 3,00,000 p.a. and it is in need of
8,00,000 for its diversification progranmme.
The Company can raise this amount either by Equity Share
Capital or 10% Preference Share Capital or 8% Debentures.
The company is considering the following plan:
1. 4,00,000 through Equity Shares, T 3,00,000 through
10% Preference share Capital and remaining

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CTY ACcTS VI 2019C 2017-2022 SEAT NO:

Debentures.
1,00,000 through 8% shares and
through 10% Preference
3,00,000
debentures.
5,00,000 through 8% Tax rate 50%.
Per Share assuming
Find
out Earning
Ltd. as on 15
of Hindalco
Q4 is the Balance Sheet
The following
31 March, 2019. Note No_
Particulars
I Equity and Liabilities
Shareholder's Funds 4,00,000
Share Capital
2 1,40,000
Reserve and Surplus
Non-Current Liabilities 8,20,000
Long-term borrowing
Current Liabilities 50,000
Short-term borrowings
Trade Payables 2,00,000
Other Current Liabilities 6 1,00,000
Total 17.10.000
II Assets
Non-Current Assets
Fixed Assets
Tangible Assets 13,00,000
Current Assets
Inventories 1,00,000
Trade Receivables 2,00,000
Cash and Cash Equivalence 9 1,10,000
Total 1710,000
Notes:
1. Share Capital
Issued, Subscribed and Paid up:
40,000 Equity Shares of R100 each
4.00.000
Total 4,00,000
2. Reserve and Surplus
Profit and Loss Account(Credit Balance)
General Reserve
60,000
Total 80.000
3. Long termBorrowings 1,40,000
10% Debentures, having a
floating | 8,20,000
chargeon all assets 8,20,000
4. Short-term Borrowings
Loan from State Bank of India
Total S0,000
5. Trade Payables 50,000
Sundry Creditors
Total 2.00.000
6. Other Current Liabilities 2,00,000
Outstanding Salaries
Total 1.00,000
7. Tangible Assets 1,00,000
Land and Building
10,00,000
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Plant and Machinery

2,00,000
Furniture
1,00,000
Total | 13,00,000
8. Trade Receivables
Sundry Debtors 2,00.000
Total 2,00,000
Cash and Cash
Cash in hand
Equivalents
10,000
Balance with Bank
Total 1.00.000
,10,000
Calculate:
a) Current ratio
b) Quick Ratio
c) Inventory to Working Capital Ratio
d) Debt Equity Ratio
e) Capital Gearing Ratio
f) Current Assets to Fixed Assets Ratio and
g) Proprietary Ratio.

OR
Q.4 Write notes on the following 15
a) Social Finance 5

b) Performance Ratios 5
c) Development Impact Bonds. 5

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