What is Revaluation Account? Differentiate between Revaluation Account and Realisation Account.

What do you mean by Pro rata allotment of shares? Explain the provisions of Section 79 of the Companies Act regarding issue of shares at discount.

Explain the utility and significance of ratio analysis.

Distinguish between Hire Purchase System and Instalment System.

2. What is cash flow statement? List the various sources and uses of cash. Also state as to how does it differ from fund flow statement?

3. The Balance Sheet of P Ltd. as at 31St March 2013 12 is given as below

<img src='./qimages/13959-3.jpg'>

It was resolved in the Annual General Meeting

to pay a dividend of 10% and corporate dividend tax 12V2%.

to issue one bonus share for every four shares held.

to give existing shareholders the option to buy one RS 10 share RS 14 for every four shares held prior to the bonus distribution.

to repay the debentures at a premium of 4%.

All the shareholders took up the option in above. Pass journal entries and draw up the Balance Sheet after the above transactions have been given effect to. (Ignore tax on income.)

Describe the accounting treatment of debentures issued as a collateral security by the company.

Shashi Ltd. issued 8,000 15% Debentures of RS 100 each. Assuming that all the debentures issued are taken up and paid for, pass the Journal Entries in the books of the company in each of the following cases

The debentures are issued at RS 90 each.

The debentures are issued at a premium of 10%.

The debentures are issued to a supplier of furniture amounting to RS 8,50,000.

The debentures are issued at a discount of are repayable at a premium of 4%.

5. Atkinson and Datta sharing profits in proportion 12 of three-fourths and one-fourth showed the following as their Balance Sheet on 31st March, 2013.

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They admit Gibson into partnership on 1st April, 2013 on the following terms

That Gibson pays RS 30,000 as his capital for a fifth share in the future profits.

That a Goodwill Account be raised in the books of the new firm at a value of RS 40,000.

That Stock and Furniture be reduced by 10% and a Provision for Doubtful Debts be created on Debtors.

That the value of Land and Building be appreciated by 20%.

That the capital Accounts of the partners be re-adjusted on the basis of their profit-sharing arrangement and any additional amount be debited or credited to their Current Accounts.

Set out the journal entries and prepare necessary accounts.

6. Pagare Ltd. has a branch at Indore where goods 12 are sold for cash as well as on credit. The branch meets its expenses out of cash collected from its debtors and cash sales and remits the balance of cash to head office. On 31st March, 2012 the assets at the branch were as follows
Stock RS 11,5,000
Debtors RS 28,000
Furniture RS 45,000
During the year ended 31st March, 2013 the following transactions took place at the branch

<img src='./qimages/13959-6.jpg'>

On 31st March 2013 stock at branch was valued at RS 1,47,000. Furniture is subject to depreciation 10% per annum. Prepare Branch AIc and Memorandum Branch Debtors AIc in head office for the year 2012-2013.