Bcm 402 Corporate Accounting Case Study

990 Words4 Pages
BIRLA INSTITUTE OF TECHNOLOGY, MESRA, RANCHI (END SEMESTER EXAMINATION) CLASS : B.COM SEMESTER : VI BRANCH : B. Com. SESSION : ______ SUBJECT: BCM 402 Corporate Accounting TIME : 3 HOURS FULL MARKS: 50 INSTRUCTIONS: 1. The question paper contains 7 questions each of 10 marks and total 70 marks. 2. Candidates may attempt any 5 questions maximum of 50 marks. 3. The missing data, if any may be assumed suitably. 4. Before attempting the question paper, be sure that you got a correct question paper. Q1. Rajesh Co had the following capital and reserves on 1 April 20X3: Rs.000 Share capital (Rs.1 ordinary shares) 70,00 Share premium 9,00 Revaluation reserve 5,00 Retained earnings 9,000 Shareholders’ funds -------- 1,74,00 --------…show more content…
Yuvraj Co paid Rs.5,000 in cash. Yuvraj Co also issued 2 Rs.1 shares for every 5 acquired in Fardeen Co and agreed to pay a further Rs.2,000 in 3 years time. Yuvraj Co has only recorded the cash paid in respect of the investment in Fardeen Co. Current interest rates are 5%. The Yuvraj Co group uses the fair value method to value the non-controlling interests. At the date of acquisition the fair value of the non-controlling interest was Rs. 5,750. The market value of Yuvraj’s shares at 1 January 20X3 was Rs.2. Required: Prepare the consolidated Statement of Financial Position of Yuvraj Co group as at 31 December 20X4. (10) Q3. Vijay Co is capable of producing 5,000 units of it product per month. Sales of the product have not been impressive so production has been below capacity for the last three months. Budgeted costs for each level of production are shown below: Output/month 3,500 4,000 4,500 Rs. Rs. Rs. Direct materials 7,000 8,000 9,000 Direct labour 28,000 32,000 36,000 Production overheads 34,000 36,000…show more content…
Karishma Co pays tax at an annual rate of 25% per year. The ex-dividend share price of the company is Rs.9 per share. Financial analysts have forecast that the dividends of Karishma Co will grow in the future at a rate of 3% per year which is somewhat less than the anticipated growth rate of the profit after tax of the company, which is 4% per year. The Management of Karishma Co thinks that, making an allowance for the risk associated with expected earnings growth, an earnings yield of 12% per year can be used for valuation purposes. A before-tax cost of debt of 8% per year. The 9% bonds will be redeemed at nominal value in seven years

More about Bcm 402 Corporate Accounting Case Study

Open Document