Explain the average profit and the super profit methods of valuation of goodwill.
State the conditions that a company must satisfy for issuing the shares at a discount.
State any five characteristics of Hire Purchase System.
Explain the limitations of Funds Flow
Statement.

2. Hero Honda Ltd. made an issue of 1 Lakh equity shares of RS 10 each, payable as follow: On application RS 2.50 per share, on allotment RS 2.50 per share and the balance in the form of first and final call. Members holding 400 shares did not pay the call money and the shares were forfeited. 200 of the forfeited shares were reissued as fully paid at RS 5 per share. Pass Journal entries and prepare Share Capital Account in the books of Hero Honda Ltd.

3. and shared profits in the ratio of 2. Their 12 Balance Sheet as on 31.12.2013 was as follows: <img src='./qimages/9583-3.jpg'>


Partners decided to dissolve the firm. Assets realized as follows: Stock RS 45,000; Machine RS 32,000; Debtors RS 35,000; Building RS 1,30,000. took over an investment at an agreed value of RS 15,000. Creditors were paid off RS 19,000. Expenses of Realization of assets amounted to RS 1,200. The typewriter of the firm, which was not shown in the books of the firm, was sold for RS 5,000. Prepare necessary accounts.

4. Surya Ltd. has a branch at Agra, Head office located at Goa. From the following information, prepare branch account in the books of Head office:

Stock on 1.1.2013 RS 6,000

Furniture on 1.1.2013 RS 2,000

Goods sent to branch RS 60,000

Cash sales by branch RS 87,000

Cash sent by Head office for expenses RS 3,000

Furniture purchased by branch RS 1,200

Closing stock RS 5,500

Depreciation on furniture no depreciation has to be charged on new furniture purchased during the year 2013.

5. Explain the following:
Hire Purchase Trading A/c. Accounting treatment in case of repossessed goods on default. Liquidity Ratios.

6. What is Cash Flow Statement? Mention its various uses.