PAPER – 1 : ADVANCED ACCOUNTING Answer all questions. Working notes should form part of the answer. Question 1 The following information has been extracted from the Books of ‘X’ Limited group (as at 31 st December‚ 2006): X Ltd. Rs. Share capital (Fully paid equity shares of Rs.10 each) Profit and Loss Account Dividend received: From Y Ltd. in 2005 From Y Ltd. in 2006 From Z Ltd. in 2006 Current Liabilities 40‚000 11‚70‚000 60‚000 60‚000 36‚000 Y Ltd. Rs. Z Ltd. Rs. Fixed Assets Less Depreciation
Premium Balance sheet Generally Accepted Accounting Principles Asset
Assignment: BB0022 Question 1: Explain the securities market and discuss the methods of underwriting the securities? Answer: An economic institute wherein the sale and purchase transactions of securities like equity shares‚ preference shares‚ debentures & bonds takes place between the subjects of the economy on the base of demand and supply is called as Securities Market. It is a place where the long term financial requirements of the Companies are met. The main functions of the Securities
Premium Stock Stock market
an asset‚ rendering a loan‚ keeping the saved funds in a bank account such that it might generate profitable returns in the future. It is the employment of funds with the aim of achieving additional income or growth in value. At present‚ Bonds‚ Debentures‚ Equity Shares‚ Preference shares‚ Bank Fixed Deposit‚ Provident Fund‚ LIC‚ Mutual Fund‚ etc. wide variety of investment avenues are open to the investor to suit his varied preferences in terms of liquidity‚ safety‚ risk appetite‚ return‚ tax concessions
Premium Investment Mutual fund
concern. Salomon and the seven subscribers to the memorandum were he and his family members. Salomon and his two sons were the Directors of the Company. The business of the company was transferred for £30000. Salomon took 20000 share of £1 each and debentures worth 10000 in
Premium Corporation Company Law
In business there are no guarantees for success. Skills‚ knowledge‚ great motivation and honest evaluation of ability to carry out and then manage the operations are just some of the requirements that determine the probability of the successful project. Success is never automatic and does not rely on luck. There are no ways to foresee or eliminate all of the risks that might affect successful operation of a new business. However detailed planning‚ thorough analysis and well-carried out organization
Premium Strategic management Franchising Risk
Dhirubhai Ambani and Reliance "Our dreams have to be bigger. Our ambition higher. Our commitment deeper. And our efforts greater. This is my dream for Reliance and for India." - Dhirubhai Ambani. "The country has lost an iconic proof of what an ordinary Indian fired by the spirit of enterprise and driven by determination‚ can achieve in his own lifetime. Not only did Ambani build a large and diversified business conglomerate but also inspired many first generation entrepreneurs with his success
Premium Dhirubhai Ambani Reliance Industries Mukesh Ambani
and other adjustments that could reduce shareholders equity. Moreover‚ cash position has improved over this period ($43 M). These uses were financed largely by the company’s profitable operations ($270 M)‚ the issuance of convertible subordinated debentures ($81 M) and stock issuance ($56 M). Other minor sources of funds are increases in bank loans ($24 M)‚ accruals and deferred compensations. (See Table 1) Table 1. Source and Uses of Funds (1991-1994) Financial Ratios The first thing to note is that
Premium Stock Finance Financial ratio
bProblem 1. Adjusting entries (18 points) The following trial balance was taken from the books of Fisk Corporation on December 31‚ 2004. Account Debit Credit Cash $ 12‚000 Accounts Receivable 40‚000 Note Receivable 7‚000 Allowance for Doubtful Accounts $ 1‚800 Merchandise Inventory 54‚000 Unexpired Insurance 4‚800 Furniture and Equipment 125‚000 Accumulated Depreciation of F. & E. 15‚000 Accounts Payable 10‚800 Common Stock 44‚000 Retained Earnings 55‚000 Sales
Premium Balance sheet Generally Accepted Accounting Principles
negotiable instrument) issued by a firm or government agency which denotes an ownership interest and provides evidence of a debt‚ a right to share in the earnings of the issuer‚ or a right in the distribution of a property. Securities include bonds‚ debentures‚ notes‚ options‚ shares (stocks)‚ and warrants but not insurance policies‚ and may be traded in financial markets such as stock exchanges. Stock – Equity capital raised through sale of shares Bond – Debt instrument which certifies a contract between
Premium Bond Investment Financial markets
The annual reports published by the company consists of the balance sheet and other connected returns. The balance sheet consists of liabilities and assets. The concept of current assets includes the following: Investment in shares and advances to other firms and public companies not connected with the business of the borrowing firm are excluded from current assets. The dead inventory i.e. slow moving or obsolete items should not be classified as current assets; The amount representing inter
Premium Inventory Balance sheet Asset