1. Attempt any two of the following questions
Distinguish between the Sacrificing ratio to and Gaining Ratio. What are the adjustments required at the time of retirement of a partner What do you understand by redemption of debentures? Describe the different ways in which debentures can be redeemed. What is Analysis of Financial Statement? Explain the techniques of comparative and common size financial statement used for the purpose. Discuss stock and debtors system of Branch accounting with examples.

2.(a) Can a company forefeit shares for non­payment of calls If so, what is the procedure to be followed for forefeiture of shares?
How are inter-departmental transfer of goods treated in departmental accounts

3.(a) Explain the significance of Ratio Analysis in the financial decision making.
Following is the Profit and Loss Account and Balance Sheet of a company.
<img src='./qimages/11651-3b.jpg'>

Calculate any three of the following ratios Gross profit ratios. Current ratio Debt equity ratio. Stock turnover ratio. liquidity ratio.

4. Poonam Limited issued a prospectus inviting applications for 6,000 shares of Rs 10 each at a premium of Rs 2 per share, payable as follows:
On application Rs 2 per share
On allotment Rs 5 per share
(including
premium)
On 1st call Rs 3 per share
On second and final call Rs 2 per share
Applications were received for 9,000 shares and allotment was made pro rata to the applicants of 7,500 shares, the remaining applicants were refused allotment. Money overpaid on applications were applied towards sum due on allotment.

A, to whom 100 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited. the holder of 200 shares, failed to pay both the calls, and his shares were forfeited after the second and final call.

Of the shares forfeited, 200 shares were sold to C credited as fully paid up for Rs 8.50 per share, the whole of shares being included.

Show Journal and Cash Book entries in the books of the company.

5. The following was the Balance Sheet of E and F who were equal partners, on 1st April, 2012.

<br><br> <img src='./qimages/11651-5.jpg'>

They agreed to take H into partnership and give him a one-fourth share in the profits on the following terms That H should bring in Rs 9,000 for goodwill and Rs 25,000 as capital. That Stock and Furniture be depreciated by 10 per cent. That a Provision of 5 per cent on Debtors be created for Doubtful Debts. That a liability for Rs 1,580 be created against bills discounted. That the value of the building having appreciated, the Building should be valued at Rs 62,000.

Give the entries necessary to give effect to the above arrangement, and prepare the opening Balance Sheet of the firm as newly constituted.

6. On 1st April 2009 Jolly Tourist Transport Co., took three cars of the cash sale price of Rs 1,00,000 each on hire purchase system from Tata Motors Ltd. The terms of the hire purchase contract include a total cash down payment of Rs 75,000 and the payment of the remaining cash price of the cars in three equal annual instalments together with interest per annum on outstanding balance, the instalment with interest being payable on 31st March every year.

First year dues were duly paid but thereafter the hire vendee failed. Consequently, Tata Motors Ltd. served notice for repossession of the cars. But after negotiation, Tata Motors Ltd. agreed to leave one car with the hire purchaser and adjust the value of the other two cars against the outstanding amount. Jolly Tourist Transport Co. provided depreciation at 20% per annum on diminishing balance but Tata Motors Ltd. took back the two cars, valuing them on the basis of 25% annual depreciation on straight line basis. You are requested to prepare the necessary ledger accounts in the books of Jolly Tourist Transport Co. on the assumption that they close their books of account on 31st March every year.