ks academy sap 1 23.02.2020 sap 1 answer all the …

KS ACADEMY SAP 1 – 23.02.2020

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SAP 1 – 23.02.2020

INTERMEDIATE (NEW SYLLABUS) GROUP I

PAPER 1 – ACCOUNTING

Time Allowed – 135 Minutes Maximum Marks – 75 Marks

ANSWER ALL THE QUESTIONS

1. (A)Mr. Purohit furnishes the following details relating to his holding in 8% Debentures (Rs.100 each) of P Ltd., held as Current assets:

1.4.20X1 - Opening balance – Nominal value Rs. 1,20,000, Cost Rs. 1,18,000

1.7.20X1 - 100 Debentures purchased ex-interest at Rs. 98

1.10.20X1 - Sold 200 Debentures ex-interest at Rs. 100

1.1.20X2 - Purchased 50 Debentures at Rs. 98 cum-interest

1.2.20X2 - Sold 200 Debentures ex-interest at Rs.99

Due dates of interest are 30th September and 31st March.

Mr. Purohit closes his books on 31.3.20X2. Brokerage at 1% is to be paid for each transaction. Show Investment account as it would appear in his books. Assume FIFO method. Market value of 8% Debentures of P Limited on 31.3.20X2 is Rs. 99.

Answer


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(8Marks)

1. (B) On 1st April, 2011, Rajat has 50,000 equity shares of P Ltd. at a book value of Rs. 15 per share (face value Rs. 10 each). He provides you the further information:

(1) On 20th June, 2011 he purchased another 10,000 shares of P Ltd. at Rs.16 per share.

(2) On 1st August, 2011, P Ltd. issued one equity bonus share for every six shares held by the shareholders.

(3) On 31st October, 2011, the directors of P Ltd. announced a right issue which entitles the holders to subscribe three shares for every seven shares at Rs.15 per share. Shareholders can transfer their rights in full or in part.

Rajat sold 1/3rd of entitlement to Umang for Rs.2 per share and subscribed the rest on 5th November, 2011.

You are required to prepare Investment A/c in the books of Rajat for the year ending 31st March, 2012.

Answer


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(7 Marks)

2. The following are the summarized Balance Sheets of ‘X’ Ltd. as on March 31, 2014 and 2015:

Liabilities As on 31.3.2014 (Rs. )

As on 31.3.2015 (Rs.)

Equity share capital 15,00,000 16,50,000

Capital Reserve --- 10,000

General Reserve 2,50,000 3,00,000

Profit and Loss A/c 1,50,000 1,80,000

Trade payables 5,00,000 4,00,000

Provision for Taxation 50,000 60,000

Dividend payable 1,00,000 1,25,000 25,50,000 27,25,000

Assets Year 2014

(Rs. )

Year 2015

(Rs. )

Land and Building 5,00,000 4,80,000

Machinery 7,50,000 9,20,000

Investment 1,00,000 50,000

inventory 3,00,000 2,80,000


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Trade receivables 4,00,000 4,20,000

Cash in Hand 2,00,000 1,65,000

Cash at Bank 3,00,000 4,10,000 25,50,000 27,25,000

Additional Information:

(i) Dividend of Rs. 1,00,000 was paid during the year ended March 31, 2015.

(ii) Machinery during the year purchased for Rs. 1,25,000.

(iii) Machinery of another company was purchased for a consideration of Rs. 1,00,000 payable in equity shares.

(iv) Income-tax provided during the year Rs. 55,000.

(v) Company sold some investment at a profit of Rs. 10,000, which was credited to Capital reserve.

(vi) There was no sale of machinery during the year.

(vii) Depreciation written off on Land and Building Rs. 20,000.

From the above particulars, prepare a cash flow statement for the year ended March,

2015 as per AS 3 (Indirect method).

Answer


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(15 Marks)

3. A partnership firm M/s. Nice Sons was carrying on business from 1st May, 2017. The partners of the firm decided to convert the partnership firm into a private company called Zenith (P) Ltd. with effect from 1st September, 2017. The annual accounts were


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drawn upto 31st March, 2018. The summarised Profit and Loss Account from 1st May, 2017 to 31st March, 2018 is as follows:

Particulars Amount (Rs.)

Turnover 55,20,000

Interest on Investment 60,000

Profit on sale of Investment 42,000 Less:

56,22,000

Cost of goods sold 34,50,000

Printing & Stationery 77,000

Manager's Salary 82,000

Audit Fees 41,000

Rent 1,33,000

Bad Debts 33,000

Underwriting Commission 56,000

Depreciation 71,500

Interest on Debentures 8,900

Advertising campaign expenses 69,800

Sundry office expenses 1,06,700

Interest on borrowings 1,25,000 42,53,900

Net Profit 13,68,100

Additional Information Provided:

(1) The company's only borrowing was a loan of Rs. 15,00,000 at 9% p.a., to pay the purchase consideration due to the firm and for working capital requirements. The loan was taken on 1st September, 2017

(2) The company occupied additional space from 1st September, 2017 for which rent of Rs. 8,000 per month was incurred.

(3) Audit fee pertains to the company.

(4) Bad debts recovered amounting to Rs. 36,000 for a sale made in June 2017, has been deducted from bad debts mentioned above.

(5) All investments were sold in August 2017.

(6) Zenith (P) Ltd. initiated an advertising campaign on 1st September, 2017,

which resulted increase in monthly average sales by 40%.

(7) The salary of Manager was increased by Rs. 3,000 p.m. from 1st July, 2017.

Prepare a statement showing pre-incorporation and post-incorporation profit for

the year ended 31st March 2018.

Answer


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(10 Marks)

4. The following are the summarized Balance Sheet of Star Ltd. as on 31st March, 2014 and 2015:

(Rs. ’000) 2014 2015

Equity share capital of Rs. 10 each 3,400 3,800

Profit and Loss A/c 400 540

Securities Premium 40 80

14% Debentures 800 900

Long term borrowings 180 240

Trade payables 360 440

Provision for Taxation 20 40

Dividend payable 300 480

5,500 6,520

Sundry Fixed Assets:

Gross Block 3,200 4,000

Less: Accumulated Depreciation (640) (1,440)

Net Block 2,560 2,560

Investment 1,200 1,400

Inventories 1,000 1,400


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Trade receivables 640 900

Cash and Bank Balance 100 260

5,500 6,520

The Profit and Loss account for the year ended 31st March, 2015 disclosed:

(Rs. ’000) Profit before tax 780

Less: Taxation (160)

Profit after tax 620

Less: Dividend payable (480)

Retained Profit 140

The following information are also available:

(1) 40,000 equity shares issued at a premium of Rs. 1 per share.

(2) The Company paid taxes of Rs. 1,40,000 for the year 2014-15.

(3) During the period, it discarded fixed assets costing Rs. 4 lacs, (accumulated depreciation Rs. 80,000) at Rs. 40,000 only.

You are required to prepare a cash flow statement as per AS 3 (Revised), using indirect method.

Answer


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(10 Marks)


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5. (A) The following notes pertain to Brite Ltd.'s Balance Sheet as on 31st March, 2015:

Notes Rs. in Lakhs

(1) Share Capital Authorised:

20 crore shares of Rs. 10 each Issued and Subscribed:

10 crore Equity Shares of Rs. 10 each

2 crore 11% Cumulative Preference Shares of Rs. 10 each

Total

Called and paid up:

10 crore Equity Shares of Rs. 10 each, Rs. 8 per share called and paid up 2 crore

11% Cumulative Preference Shares of Rs. 10 each,

fully called and paid up

Total

(2) Reserves and Surplus:

Capital Reserve (profit on fixed assets realized in cash)

Capital Redemption Reserve

Securities Premium

General Reserve

Surplus i.e credit balance of Profit and Loss Account

Total

20,000

10,000

2,000

12,000

8,000

2,000

10,000

485

1,000

2,000

1,040

273

4,798

On 2nd April 2015, the company made the final call on equity shares @ Rs. 2 per share.

The entire money was received in the month of April, 2015.

On 1st June 2015, the company decided to issue to equity shareholders bonus shares at

the rate of 2 shares for every 5 shares held and for this purpose, it decided to utilize

the capital reserves to the maximum possible extent.

Pass journal entries for all the above mentioned transactions. Also prepare the notes on

Share Capital and Reserves and Surplus relevant to the Balance Sheet of the company

immediately after the issue of bonus shares.

Answer


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(7 Marks)

5. (B) Following items appear in the Trial Balance of Saral Ltd. as on 31st March, 2014:

Particulars Amount

4,500 Equity Shares of Rs. 100 each 4,50,000

Capital Reserve (including Rs.40,000 being profit on sale of 90,000


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Plant)

Securities Premium 40,000

Capital Redemption Reserve 30,000

General Reserve 1,05,000

Profit and Loss Account (Cr. Balance) 65,000

The company decided to issue to equity shareholders bonus shares at the rate of 1

share for every 3 shares held. Company decided that there should be the minimum

reduction in free reserves. Pass necessary Journal Entries in the books Saral Ltd.

Answer

(3 Marks)

6.(A) Mr. Jack has made following transactions during the financial year 2018-19:

Date Particulars

01.05.2018 Purchased 24,000 12% Bonds of Rs. 100 each at Rs.84 cum-interest is

payable on 30th September and 31st March every year

15.06.2018 Purchased 1,50,000 equity shares of Rs. 10 each in Alpha Limited for

Rs. 25 each through a broker, who charged brokerage @ 2%.

10.07.2018 Purchased 60,000 equity shares of Rs. 10 each in Beta Limited for Rs.

44 each through a broker, who charged brokerage @2%.

14.10.2018 Alpha Limited made a bonus issue of two shares for every three

shares held.

31.10.2018 Sold 80,000 shares in Alpha Limited for Rs. 22 each.

01.01.2019 Received 15% interim dividend on equity shares of Alpha Limited.

15.01.2019 Beta Limited made a right issue of one equity share for every four

shares held at Rs. 5 per share. Mr. Brown exercised his option for

40% of his entitlements and sold the balance rights in the market at

Rs. 2.25 per share.

01.03.2019 Sold 15,000 12% Bonds at Rs. 90 ex-interest.

15.03.2019 Received 18% interim dividend on equity shares of Beta Limited.

Interest on 12% Bonds was duly received on due dates.


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Prepare separate investment account for 12% Bonds, Equity Shares of Alpha Limited

and Equity Shares of Beta Limited in the books of Mr. Jack for the year ended on 31st

March, 2019.

Answer


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Note: The Financial year in the Answer key is 2011-12 and in the Question is 2018-19. But for

this the rest of the solution is same.

(10 Marks)

6. (B)Sneha Ltd. was incorporated on 1st July, 20X1 to acquire a running business of Atul

Sons with effect from 1st April, 20X1. During the year 20X1-X2, the total sales were Rs.

24,00,000 of which Rs. 4,80,000 were for the first six months. The Gross profit of the

company Rs. 3,90,800. The expenses debited to the Profit & Loss Account included:

(i)Director's fees Rs. 30,000

(ii)Bad debts Rs. 7,200

(iii)Advertising Rs. 24,000 (under a contract amounting to Rs. 2,000 per month)

(iv)Salaries and General Expenses Rs. 1,28,000

(v) Preliminary Expenses written off Rs. 10,000

(vi) Donation to a political party given by the company Rs. 10,000.

Prepare a statement showing pre-incorporation and post-incorporation profit for the

year ended 31st March, 20X2.

Answer


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(5 Marks)

SAP (23.02.2020)

INTERMEDIATE (NEW SYLLABUS) GROUP I

PAPER 2: CORPORATE AND OTHER LAWS

Time Allowed: 45 Minutes Maximum Marks: 25 Marks

Division A: Multiple Choice Questions (8 Marks)

1 Company limited by shares can issue equity shares with differential voting rights. Which of the following is not a necessary condition to be fulfilled before issue of such shares:

(a) The articles of association of the company shall authorize issue of shares with differential rights;

(b) The issue of shares shall be authorized by an ordinary resolution passed at a general meeting of the shareholders;

(c) The issue of shares shall be authorized by special resolution passed at a general meeting of the shareholders;

(d) The company shall have consistent track record of distributable profits for the last three years;

(2 Marks) 2 Delight Sports Garments Limited is contemplating to raise funds through issue

of prospectus in which, according to the directors, a sum of ` 50 crores should be stated as the minimum amount that needs to be subscribed by the prospective subscribers. The funds shall be raised in four instalments consisting of application, allotment, first call and second & final call. Advise the company by which instalment it should receive the minimum subscription stated in the prospectus.

(a) Along with amount subscribed as application money. (b) Along with amount subscribed as final call money. (c) Along with amount subscribed as first call money. (d) Along with amount subscribed as second and final call money.

(1 Mark) 3 XYZ Private Limited, has passed a resolution in general meeting to accept

deposit from its members. Terms and conditions are finalized in

consultation with Reserve Bank of India. Company accepted deposits of

INR 30 Lakhs in year 2016. Company wants more deposits in the next

quarter. Board of Directors are aware that as per the Act, they have a

Ceiling limit, beyond which they cannot accept deposits. What

percentage of aggregate of paid-up share capital, free Reserves and

securities premium account, they cannot cross?

(a) 15%

(b) 25%

(c) 35%

(d) 45%

(1 Mark) 4 ABC Ltd. wants to issue redeemable preference shares for a period of 35

years. Advise whether it can do so.

(a) Yes, ABC Ltd. can issue redeemable preference shares (b) Yes, ABC Ltd. can issue redeemable preference shares but for only

30 years (c) Instead of issuing of shares for 35 years, ABC Ltd. should issue

irredeemable preference shares.

(d) Yes, ABC Ltd. can issue redeemable preference shares for a

period not extending 20 years.

(2 Marks)

5 On 30th June 2017, the liability side of balance sheet of X Ltd. Showed a balance of

paid up share capital of Rs. 65 Lakhs, free reserves of Rs. 10 Lakhs, share premium account of Rs. 20 Lakhs, repayable in the current financial year, during the month of September 2017. In July 2017, the company was in need of some short term fund to be tune of Rs. 20 Lakhs for a period of six months. The maximum amount which the company may hold as deposit together with existing deposits will be

a) Rs. 33.25 Lakhs

b) Rs. 11.25 Lakhs

c) Rs. 95 Lakhs

d) Rs. 9.5 Lakhs

(2 Marks)

Q.NO 1 2 3 4 5

Answer C A C D A

DIVISION B: Answer All The Questions (17 Marks) 1 Ashish Ltd. having a net-worth of ` 80 crores and turnover of ` 30 crores, wants to

accept deposits from public other than its members. Referring to the provisions

of the Companies Act, 2013, state the conditions and the procedures to be followed by Ashish Ltd. for accepting deposits from public other than its members.

(5 Marks)

Answer:

2 Data Limited (listed on Stock Exchange) was incorporated on 1st October, 2018 with a paid- up share capital of ` 200 crores. Within this small time of 4 months it has earned huge profits and has topped the charts for its high employee friendly environment. The company wants to issue sweat equity to its employees. A friend of the CEO of the company has told him that they cannot issue sweat equity shares as 2 years have not elapsed since the time company has commenced its business. The CEO of the company has approached you to advise them about the essential conditions to fulfilled before the issue of sweat equity shares especially since their company is just a few months old.

(4 Marks)

Answer:

3. K Limited, a subsidiary of Old Limited, decides to give a loan of ` 4,00,000 to the Human Resource Manager, who is not a Key Managerial Personnel of K Limited, drawing salary of ` 30,000 per month, to buy 500 partly paid-up equity Shares of ` 1000 each in K Limited. Examine the validity of company’s decision under the provisions of the Companies Act, 2013.

(4 Marks)

Answer:

4. Explain the function of ‘proviso’ as an internal aid to construction. (4 Marks)

Answer:


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SAP 1 – 23.02.2020

INTERMEDIATE (NEW SYLLABUS) GROUP II

PAPER 5 – ADVANCED ACCOUNTING

Time Allowed – 135 Minutes Maximum Marks – 75 Marks

Answer All the Questions

1. The following is the summarised Balance Sheet of Weak Ltd. as on 31.3.20X1:

Liabilities Rs. Assets Rs.

Equity shares of Rs. 100 each 1,00,00,000 Fixed assets 1,25,00,000

12% cumulative preference shares of Rs. 100 each

50,00,000 Investments (Market value Rs. 9,50,000)

10,00,000

10% debentures of Rs. 100 each 40,00,000 Current assets 1,00,00,000

Trade payables 50,00,000 P & L A/c 6,00,000

Provision for taxation 1,00,000

2,41,00,000 2,41,00,000

The following scheme of reconstruction is sanctioned:

(i) All the existing equity shares are reduced to Rs. 40 each.

(ii) All the preference shares are reduced to Rs. 60 each.

(iii) The rate of interest on debentures is increased to 12%. The debenture holders

surrender their existing debentures of Rs. 100 each and exchange the same for fresh

debentures of Rs. 70 each for every debenture held by them.

(iv) One of the creditors of the company to whom the company owes Rs. 20,00,000 decides to forgo 40% of his claim. He is allotted 30,000 equity shares of Rs. 40 each in full satisfaction of his claim.

(v) Fixed assets are to be written down by 30%.

(vi) Current assets are to be revalued at Rs. 45,00,000.

(vii) The taxation liability of the company is settled at Rs. 1,50,000.

(viii) Investments to be brought to their market value.

(ix) It is decided to write off the debit balance of Profit and Loss account.

Pass Journal entries and show the Balance sheet of the company after giving effect to the above.

Answer


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(10 Marks) 2. (A) S Ltd. grants 1,000 options to its employees on 1.4.20X0 at Rs. 60. The vesting period is

two and a half years. The maximum exercise period is one year. Market price on that

date is Rs. 90. All the options were exercised on 31.7.20X3. Journalize, if the face value of

equity share is Rs. 10 per share.

Answer


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(7 Marks)

2. (B) KG Limited furnishes the following summarized Balance Sheet as at 31st March, 2013:

Liabilities (Rs. in lakhs) Assets (Rs. in lakhs)

Equity share capital 1,200 Machinery 1,800

(fully paid up shares of Rs. 10 each)

Furniture 226

Securities premium 175 Investment 74

General reserve 265 Inventory 600

Capital redemption reserve 200 Trade receivables 260

Profit & loss A/c 170 Cash at bank 740

12% Debentures 750

Trade payables 745

Other current liabilities 195 3,700 3,700

On 1st April, 2013, the company announced the buy back of 25% of its equity shares @

Rs. 15 per share. For this purpose, it sold all of its investments for Rs. 75 lakhs.

On 5th April, 2013, the company achieved the target of buy back. On 30th April, 2013

the company issued one fully paid up equity share of Rs. 10 by way of bonus for every

four equity shares held by the equity shareholders.

You are required to:

(1) Pass necessary journal entries for the above transactions.

(2) Prepare Balance Sheet of KG Limited after bonus issue of the shares

Answer


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(8 Marks)

3. The draft Balance Sheet of Y Limited as on 31st March, 2013was as follows:

Liabilities Amount

(Rs.)

Assets Amount

(Rs.)

5,00,000 Equity shares of Rs. 10 Goodwill 10,00,000

each fully paid 50,00,000 Patent 5,00,000

9% 20,000 Preference shares of Land and Building 30,00,000

Rs.100 each fully paid 20,00,000 Plant and Machinery 10,00,000

10% First debentures 6,00,000 Furniture and Fixtures 2,00,000

10% Second debentures 10,00,000 Computers 3,00,000

Debentures interest outstanding 1,60,000 Trade Investment 5,00,000

Trade payables 5,00,000 Trade receivables 5,00,000

Directors’ loan 1,00,000 Inventory 10,00,000

Bank Overdraft 1,00,000 Discount on issue of

Outstanding liabilities 40,000 debentures 1,00,000

Provision for tax 1,00,000 Profit and Loss Account (Loss)

15,00,000

96,00,000 96,00,000

Note: Preference dividend is in arrears for last three years.

A holds 10% first debentures for Rs. 4,00,000 and 10% second debentures for Rs.6,00,000.

He is also trade payables for Rs. 1,00,000. B holds 10% first debentures for Rs. 2,00,000 and

10% second debentures for Rs. 4,00,000 and is also trade payables for Rs. 50,000.

The following scheme of reconstruction has been agreed upon and duly approved.

(i) All the equity shares be converted into fully paid equity shares of Rs.5 each.


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(ii) The preference shares be reduced to Rs. 50 each and the preference shareholders

agree to forego their arrears of preference dividends in consideration of which 9%

preference shares are to be converted into 10% preference shares.

(iii) Mr. ‘A’ is to cancel Rs. 6,00,000 of his total debt including interest on debentures and to pay

Rs.1 lakh to the company and to receive new 12% debentures for the Balance amount.

(iv) Mr. ‘B’ is to cancel Rs. 3,00,000 of his total debt including interest on debentures and

to accept new 12% debentures for the balance amount.

(v) Trade payables (other than A and B) agreed to forego 50% of their claim.

(vi) Directors to accept settlement of their loans as to 60% thereof by allotment of equity

shares and balance being waived.

(vii) There were capital commitments totalling Rs. 3,00,000. These contracts are to be

cancelled on payment of 5% of the contract price as a penalty.

(viii) The Directors refund Rs. 1,10,000 of the fees previously received by them.

(ix) Reconstruction expenses paid Rs. 10,000.

(x) The taxation liability of the company is settled at Rs. 80,000 and the same is paid immediately.

(xi) The assets are revalued as under:

Pass Journal entries for all the above mentioned transactions including amounts to be

written off of Goodwill, Patents, Loss in Profit & Loss Account and Discount on issue of

debentures. Prepare Bank Account and working of allocation of Interest on Debentures

between A and B.

Answer

Rs.

Land and Building 28,00,000

Plant and Machinery 4,00,000

Inventory 7,00,000

Trade receivables 3,00,000

Computers 1,80,000

Furniture and Fixtures 1,00,000

Trade Investment 4,00,000


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(15 Marks)

4. Following is the summarized Balance Sheet of Competent Limited as on 31st March, 2013:

Assets Rs. Assets Rs.

Equity Shares of Rs.10 Fixed Assets 46,50,000

each fully paid up 12,50,000 Current Assets 30,00,000

Revenue reserve 15,00,000

Securities Premium 2,50,000

Profit & Loss Account 1,25,000

Secured Loans:

12% Debentures 18,75,000

Unsecured Loans 10,00,000

Current maturities of long

term borrowings 16,50,000 Total 76,50,000 Total 76,50,000

The company wants to buy back 25,000 equity shares of Rs. 10 each, on 1st April, 2013 at Rs. 20 per share. Buy back of shares is duly authorized by its articles and necessary resolution has been passed by the company towards this. The payment for buy back of shares will be made by the company out of sufficient bank balance available shown as

part of Current Assets. Comment with your calculations, whether buy back of shares by company is within

the provisions of the Companies Act, 2013. If yes, pass necessary journal entries

towards buy back of shares and prepare the Balance Sheet after buy back of shares

Answer


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(15 Marks)

5. The summarised Balance Sheet of X Limited as on 31st March 2013, was as follows:

Liabilities (Rs.) Assets (Rs.)

Authorised and subscribed capital:

10,000 Equity shares of Rs. 100 each

10,00,000 Fixed Assets:

Machineries

3,50,000

fully paid

Unsecured loans:

15% Debentures

Accrued interest

Current Liabilities:

Trade payables

Provision for income tax

3,00,000

45,000

52,000

36,000

Current Assets: Inventory

Trade receivables

Bank

Profit & loss A/c

2,53,000

2,30,000

20,000

5,80,000

14,33,000 14,33,000

It was decided to reconstruct the company for which necessary resolution was

passed and sanctions were obtained from the appropriate authorities. Accordingly,

it was decided that:

(i) Each share be sub-divided into 10 fully paid up equity share of Rs. 10 each.

(ii) After sub-division, each shareholder shall surrender to the company 50% of his

holding for the purpose of reissue to debenture holders and trade payables as

necessary.

(iii) Out of shares surrendered 10,000 shares of Rs. 10 each shall be converted into 10% Preference shares of Rs. 10 each fully paid up.


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(iv) The claims of the debenture holders shall be reduced by 50%. In consideration of the reduction, the debenture holder shall receive Preference Shares of Rs. 1,00,000 which are converted out of shares surrendered.

(v) Trade payables claim shall be reduced by 25%. Remaining trade payables are to be settled by the issue of equity shares of Rs. 10 each of out of shares surrendered.

(vi) Balance of Profit and Loss account to be written off.

(vii) The shares surrendered and not re-issued shall be cancelled.

Pass Journal Entries giving effect to the above and the resultant Balance Sheet.

Answer


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(10 Marks)


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6. Choice Ltd. grants 100 stock options to each of its 1,000 employees on 1.4.20X1 for Rs. 20,

depending upon the employees at the time of vesting of options. Options would be

exercisable within a year it is vested. The market price of the share is Rs. 50 each. These

options will vest at the end of year 1 if the earning of Choice Ltd. is 16%, or it will vest at

the end of the year 2 if the average earning of two years is 13%, or lastly it will vest at

the end of the third year if the average earning of 3 years will be 10%. 5,000 unvested

options lapsed on 31.3.20X2. 4,000 unvested options lapsed on 31.3.20X3 and finally

3,500 unvested options lapsed on 31.3.20X4.

Following is the earning of Choice Ltd:

Year ended on Earning (in %)

31.3.20X2 14%

31.3.20X3 10%

31.3.20X4 7%

850 employees exercised their vested options within a year and remaining options were

unexercised at the end of the contractual life. Pass Journal entries for the above.

Answer


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(10 Marks)

SAP 1 – 23.02.2020

INTERMEDIATE (NEW) GROUP – II

PAPER-7: ENTERPRISE INFORMATION SYSTEMS & STRATEGIC MANAGEMENT

(Time Allowed – 45 Minutes) Maximum Marks - 25

Part A – ENTERPRISE INFRMATION SYSTEMS – 12 MARKS

Division A: Multiple Choice Questions (4 Marks)

1. (A) Which of the following best defines a risk?

(a) Undesired events are prevented

(b) Inherent vulnerabilities are identified

(c) Physical threats are documented

(d) Threat exploits vulnerability.

(1 mark)

(B) Which of the following is not computer related offence as per in IT Act, 2000?

(a) Identify theft

(b) Stealing of mobile

(c) Stealing computer resource

(d) Violation of privacy

(1 mark)

(C) Which of the following statement is incorrect?

(a) A Proxy Server is a computer that offers a computer network service to allow

clients to make indirect network connections to other network services.

(b) The term Information Security refers to ensure Confidentiality, Integrity and

Availability of information.

(c) Any Application Software has primarily four gateways through which

enterprise can control functioning, access and use the various menus and

functions of the software -Configuration, Masters, Transactions and Reports.

(d) Section 66-C of Information Technology Act, 2000 provides for the

punishment for cheating by personation by using computer resource.

(2 marks)

Q.NO 1(A) 1(B) 1(C)

Answer D B D

Division B: Descriptive Questions - 8 Marks

2. Briefly explain all the stages of Money Laundering and how banks are used in

laundering money

(4 Marks)

Answer:

3. (A) List the key technology components of Core Banking System (CBS). (2 Marks)

Answer:

(B) Define ‘Proxy Server’. (2 Marks)

Answer:

PART B – STRATEGIC MANAGEMENT – 13 MARKS

Division A: Multiple Choice Questions - 4 Marks

4. (A) SWOT analysis is an evaluation of the organization's ________ strengths and

weaknesses and its ________ opportunities and threats.

(a) external; internal

(b) internal; internal

(c) external; external

(d) internal; external

(1 mark)

(B) Acquisition of IT company by a steel manufacturer is

(a) Business level strategy?

(b) Corporate Strategy?

(c) Business decision?

(d) Functional diversification.

(1 mark)

(C)According to C.K. Prahalad and Gary Hamel, major core competencies are identified

in three areas -________, ____________, and application to other markets.

(a) Competitor differentiation, customer value.

(b) Competitor differentiation, focus.

(c) Cost leadership, differentiation.

(d) Profits, growth.

(2marks)

Answer:

Q.NO 4(A) 4(B) 4(C)

Answer D B A

Division B: Descriptive Questions - 9 Marks

5. Dinesh Yadav is the owner of a beverage-based private company in Sonipat, Haryana. His unit is

producing fruit juices, cold drinks, soda and lime. While its products have significant market share

in the northern part of country, the sales are on decline in last couple of years. He seeks help of a

management expert who advises him to first understand the competitive landscape.

Explain the steps to be followed by Dinesh Yadav to understand competitive landscape.

(4Marks)

Answer:

6. Vastralok Ltd., was started as a textile company to manufacture cloth. Currently, they are in the manufacturing of silk cloth. The top management desires to expand the business in the cloth manufacturing. To expand they decided to purchase more machines to manufacture cotton cloth.

Identify and explain the strategy opted by the top management of Vastralok Ltd.

(3 marks)

Answer:

7. Explain the concept of Experience Curve and highlight its relevance in strategic management.

(2 marks)

Answer:

ks academy sap 1 23.02.2020 sap 1 answer all the …

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