(Semester Scheme)
COMMERCE (ELECTIVE PAPER – 3(b)
Corporate Financial Policy
Time : 3 Hours Max. Marks : 90
Instructions : Answer should be completely either in English or in Kannada.
SECTION – A [10x2=20]
Answer any ten of the following in not exceeding four lines for each sub-question. Each sub-question carries two marks :
1.a) What is meant by Mission?
b) What is meant by Exchange Rate?
c) Give any four advantages of Equity Shares.
d) What is meant by financial policy?
e) State any two functions of finance manager.
f) What is Dividend-Pay-Out ratio?
g) Give the meaning of NOI approach.
h) State the meaning of zero coupon bond.
i) Give any two example for mergers in India.
j) What is meant by convertible debentures?
k) What is EPS? How is it calculated?
l) Mr. Anand has an irredeemable preference share of Rs. 100. He receives an annual dividend of Rs. 8. What will be its value if the required rate of return is 10%.
SECTION – B [5x5=25]
Answer any five of the following. Each question carries five marks.
2.What is meant by profit maximization? What are its limitations?
3. Explain any two types of merger.
4. Explain the 3 financial decisions.
5.What are intangible assets? How they are valued?
6.Mr. X is considering the purchase of a 7% preference share of Rs. 1000, redeemable after 5 years at par. What should he be willing to pay now to purchase the share assuming that the required rate of return is 8%?
7.A Co. Issue 10% debentures for Rs. 2,00,000. Rate of tax is 55%, calculate the cost of debt (after tax) if the debenture is issued
a)at par b) at a discount of 10%
8.Following information is available in respect of ABC Ltd. And XYZ Ltd.:
ABC Ltd. XYZ Ltd.
Present earnings (Rs.) 2,00,00,000 40,00,000
No. of shares (No.) 10,00,000 1,00,000
Price earning ratio (Times) 18 10
In case, ABC Ltd. And XYZ Ltd. Were to merge and the exchange ratio is 1:1, what would be the initial impact on EPS of the two Co.’s? What is the market value based exchange ratio?
9.A company expects a net income of Rs. 1,00,000. It has Rs. 2,00,000, 8% debentures. The equity capitalization rate of the Co. is 10%. Calculate the value of the firm and overall capitalization rate. According t o the Net Income Approach, (ignore income tax).
SECTION – C
Answer any three of the following. Each question carries Fifteen marks. [3x15=45]
10.You are provided with the following financial data of two Companies :
T Ltd. A Ltd.
Earning after taxes (Rs.) 7,00,000 10,00,000
Equity shares outstanding (No.) 2,00,000 4,00,000
Earning per share (Rs.) 3.50 2.50
P/E Ratio ( Times ) 10 14
Market Price Per share (Rs.) 35 35
A Ltd. Is acquiring the Co. T Ltd., exchanging its shares on a one-to-one basis for T’s shares. The exchange ratio is based on the market prices of the shares of the two Co.’s.
a) What will be the EPS subsequent to merger?
b) What is the change in EPS for the shareholders of Co.’s A and T?
c) Determine the market value of the post-merger firm.
11. Distinguish between Equity shares and debentures.
12. Explain the various forms of financing merger.
13. Determine the earning per share of a company which has an operating profit (EBIT) of
Rs. 2,00,000. Its capital structure consists of the following securities :
10% Debentures Rs. 6,00,000
12% Preference share Rs. 2,00,000
Equity Shares of Rs. 100 each Rs. 5,00,000
The Co. is in the 50% tax-bracket. Determine the percentage change in EPS associated with 25% increase and 25$ decrease in operating profit.
14. From the particulars presented below, calculate the total market value of each of the following firms and ascertain their weighted average cost of capital, assuming that there is no corporate tax.
Firms Earning before Interest & Taxes Interest @ 10% Cost of capital Ke
(EBIT) Rs. equity
Rs.
A 50,000 5,000 12%
B 75,000 15,000 16%
C 1,25,000 50,000 15%
Showing posts with label Bangalore University VI Semester B.com. Examination. Show all posts
Showing posts with label Bangalore University VI Semester B.com. Examination. Show all posts
Monday, November 15, 2010
Bangalore University VI SEMESTER B.COM. EXAMINATION, JUNE 2009 Question paper
(Semester Scheme)
COMMERCE ( Elective Paper 3 (a)
Auditing - II
Time : 3 Hours Max. Marks : 90
SECTION - A
1. Answer any ten questions. Each question carries two marks. [10x2=20]
a) Define Voucher.
b) What is Annuity method of depreciation?
c) State two differences between General reserve and Specific reserve.
d) What is depreciation?
e) Mention two disqualificatios of an auditor.
f) What do you mean by fictitious assets?
g) Give the meaning of embezzlement of cash.
h) Give the meaning of capital expenditure.
i) What is meany by qualified report?
j) What is misconduct?
SECTION - B
Answer any five questions. Each question carries 5 marks. [5x5=25]
2. Discuss the objective of vouching.
3. Explain the basis of depreciation.
4. What do you mean by divisible profits? What are the problems associated with the calculation of divisible profits?
5. What are the statutory qualifications of an auditor?
6. Explain 5 duties of an auditor, While verifing depreciation of fixed assets.
7. What are the disadvantages of depreciation under reducing balance method?
8. What are the general points to be noted by an auditor while auditing the account of banking companies.
9. Discuss the points to be noted by the auditor while verifing tax returns of public trust.
SECTION - C
Answer any three questions. Each question carries 15 marks. [3x15=45]
10. How do you vouch the following transactions:
a) Remuneration of Auditor.
b) Installment purchaces.
c) Travelling expenses.
11. Explain the rights, duties and liablities of an auditor.
12. Discuss breifly different types of depreciation and bring out the duties of an auditor
in this connection.
13. What are the points to be noted by an auditor while verifying the books of account
educational institutions?
14. What are secret reserves? What safeguards should an auditor observe with regard to their creation, existence and utilisation?
COMMERCE ( Elective Paper 3 (a)
Auditing - II
Time : 3 Hours Max. Marks : 90
SECTION - A
1. Answer any ten questions. Each question carries two marks. [10x2=20]
a) Define Voucher.
b) What is Annuity method of depreciation?
c) State two differences between General reserve and Specific reserve.
d) What is depreciation?
e) Mention two disqualificatios of an auditor.
f) What do you mean by fictitious assets?
g) Give the meaning of embezzlement of cash.
h) Give the meaning of capital expenditure.
i) What is meany by qualified report?
j) What is misconduct?
SECTION - B
Answer any five questions. Each question carries 5 marks. [5x5=25]
2. Discuss the objective of vouching.
3. Explain the basis of depreciation.
4. What do you mean by divisible profits? What are the problems associated with the calculation of divisible profits?
5. What are the statutory qualifications of an auditor?
6. Explain 5 duties of an auditor, While verifing depreciation of fixed assets.
7. What are the disadvantages of depreciation under reducing balance method?
8. What are the general points to be noted by an auditor while auditing the account of banking companies.
9. Discuss the points to be noted by the auditor while verifing tax returns of public trust.
SECTION - C
Answer any three questions. Each question carries 15 marks. [3x15=45]
10. How do you vouch the following transactions:
a) Remuneration of Auditor.
b) Installment purchaces.
c) Travelling expenses.
11. Explain the rights, duties and liablities of an auditor.
12. Discuss breifly different types of depreciation and bring out the duties of an auditor
in this connection.
13. What are the points to be noted by an auditor while verifying the books of account
educational institutions?
14. What are secret reserves? What safeguards should an auditor observe with regard to their creation, existence and utilisation?
Bangalore University VI Semester B.com. Examination, June 2009 Question paper
(Semester Scheme)
COMMERCE
Elective Paper – 4(a) : Accounting Information Systems
Time : 3 Hours Max. Marks : 80
Instructions: 1) Answer should be written fully either in English or in Kannada.
2) Show working notes wherever necessary.
SECTION – A
1. Answer any ten of the following sub-questions. Each sub-question carries two marks. (10x2=20)
a) What is accounting and information system?
b) What is management and information system?
c) What is vouching?
d) Give any two advantages of computerized accounting.
e) Expand VAT and TDS.
f) Where does Income Tax Number get printed in Tally?
g) How do you create cost categories and cost centers?
h) Name the Financial Statements.
i) Name the command to enter Journal Voucher.
j) What is PAN?
k) What is CST?
SECTION – B
Answer any six questions of the following. Each question carries five marks. (6x5=30)
2. Explain the scope of Management Information System.
3. Distinguish between Cost Accounting and Management Accounting.
4. Design the format of Contra Voucher with imaginary figures.
5. Explain the differences between stock categories and stock groups.
6. Under which group the following accounts are created in Tally :
a) Furniture
b) Rent Paid
c) Dividend Received
d) Debtors
e) Capital A/c.
7. Name the various statement of accounts generated in computerization of accounting system in a business concern.
8. Give the commands for viewing/printing the following books of accounts :
a) Purchase Register.
b) Credit Note Register.
c) Cash Book.
d) Bank Book.
e) Ledger.
9. Give the commands for viewing/printing the following inventory books :
a) Sales Order Book.
b) Stock Item Register.
c) Stock Group Register.
d) Delivery Note Register.
e) Receipt Note Register.
SECTION – C
Answer any two questions of the following, Each question carries fifteen marks. (2x15=30)
10. Explain the differences between Manual Accounting and Computerized Accounting.
11. Explain the requisites of a good Management Information System report.
12. Pass the necessary journal entries and name the group to which they belong in Tally.
a) Jan 1, 2008, Saraswati commenced business with cash Rs. 1,00,000.
b) Jan 2, 2008, Purchased machinery from Godrej & Co. Rs. 10,000.
c) Jan 9. 2008, Purchased goods from Deepa Rs. 30,000.
d) Jan 16, 2008, Sold goods to Swetha for cash Rs. 15,000.
e) Jan 26, 2008, goods lost by fire Rs. 2,000.
f) Jan 27, 2008 Withdrawn cash from business for personal use Rs. 2,000.
g) Jan 31, 2008, Received commission Rs. 5,000.
13. From the following particulars taken from cost records of Shashwatha Industries Ltd. For the year 2008, prepare a statement of Cost and Profit.
Rs.Opening Stock of raw materials 50,000
Purchase of raw materials 1,60,000
Closing stock of raw materials 80,000
Wages – Productive 1,50,000
Wages – General 20,000
Chargeable expenses 40,000
Rent, rates and taxes – Office 10,000
Rent, rates and taxes – Office 1,000
Depreciation on Plant and Machinery 3,000
Salary – Office 5,000
Salary – Travelers 4,000
Printing and Stationery 1,000
Office cleaning and lighting 800
Repairs and renewals (Factory) 6,400
Other Factory expenses 5,000
Management expenses (including Managing Director’s Fees) 24,000
Travelling expenses and samples 2,200
Showroom expenses and samples 2,000
Carriage and freight – Outwards 2,000
Carriage and freight – Inwards 9,000
Octroi on purchases 1,000
Advertisement 4,000
Advance Income Tax 30,000
Sales 4,60,000
Management expenses should be allocated in the ratio of 2:1:3 on factory, office and sales divisions.
COMMERCE
Elective Paper – 4(a) : Accounting Information Systems
Time : 3 Hours Max. Marks : 80
Instructions: 1) Answer should be written fully either in English or in Kannada.
2) Show working notes wherever necessary.
SECTION – A
1. Answer any ten of the following sub-questions. Each sub-question carries two marks. (10x2=20)
a) What is accounting and information system?
b) What is management and information system?
c) What is vouching?
d) Give any two advantages of computerized accounting.
e) Expand VAT and TDS.
f) Where does Income Tax Number get printed in Tally?
g) How do you create cost categories and cost centers?
h) Name the Financial Statements.
i) Name the command to enter Journal Voucher.
j) What is PAN?
k) What is CST?
SECTION – B
Answer any six questions of the following. Each question carries five marks. (6x5=30)
2. Explain the scope of Management Information System.
3. Distinguish between Cost Accounting and Management Accounting.
4. Design the format of Contra Voucher with imaginary figures.
5. Explain the differences between stock categories and stock groups.
6. Under which group the following accounts are created in Tally :
a) Furniture
b) Rent Paid
c) Dividend Received
d) Debtors
e) Capital A/c.
7. Name the various statement of accounts generated in computerization of accounting system in a business concern.
8. Give the commands for viewing/printing the following books of accounts :
a) Purchase Register.
b) Credit Note Register.
c) Cash Book.
d) Bank Book.
e) Ledger.
9. Give the commands for viewing/printing the following inventory books :
a) Sales Order Book.
b) Stock Item Register.
c) Stock Group Register.
d) Delivery Note Register.
e) Receipt Note Register.
SECTION – C
Answer any two questions of the following, Each question carries fifteen marks. (2x15=30)
10. Explain the differences between Manual Accounting and Computerized Accounting.
11. Explain the requisites of a good Management Information System report.
12. Pass the necessary journal entries and name the group to which they belong in Tally.
a) Jan 1, 2008, Saraswati commenced business with cash Rs. 1,00,000.
b) Jan 2, 2008, Purchased machinery from Godrej & Co. Rs. 10,000.
c) Jan 9. 2008, Purchased goods from Deepa Rs. 30,000.
d) Jan 16, 2008, Sold goods to Swetha for cash Rs. 15,000.
e) Jan 26, 2008, goods lost by fire Rs. 2,000.
f) Jan 27, 2008 Withdrawn cash from business for personal use Rs. 2,000.
g) Jan 31, 2008, Received commission Rs. 5,000.
13. From the following particulars taken from cost records of Shashwatha Industries Ltd. For the year 2008, prepare a statement of Cost and Profit.
Rs.Opening Stock of raw materials 50,000
Purchase of raw materials 1,60,000
Closing stock of raw materials 80,000
Wages – Productive 1,50,000
Wages – General 20,000
Chargeable expenses 40,000
Rent, rates and taxes – Office 10,000
Rent, rates and taxes – Office 1,000
Depreciation on Plant and Machinery 3,000
Salary – Office 5,000
Salary – Travelers 4,000
Printing and Stationery 1,000
Office cleaning and lighting 800
Repairs and renewals (Factory) 6,400
Other Factory expenses 5,000
Management expenses (including Managing Director’s Fees) 24,000
Travelling expenses and samples 2,200
Showroom expenses and samples 2,000
Carriage and freight – Outwards 2,000
Carriage and freight – Inwards 9,000
Octroi on purchases 1,000
Advertisement 4,000
Advance Income Tax 30,000
Sales 4,60,000
Management expenses should be allocated in the ratio of 2:1:3 on factory, office and sales divisions.
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