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Question 1 is compulsory (4 5 = 20 Marks). Answer any 5 from the remaining 6 (16 5 = 80 Marks)
1(a) Explain the levels of Noncorporate enterprises classified under As and As applicability. [5 Marks]
1(b) Can PT Ltd, a Wire Netting Company, while valuing its Finished Stock at the year end include interest
on Bank Overdraft as an element of cost, for the reason that Overdraft has been taken specifically for
the purpose of financing Current Assets like Inventory and for meeting day to day working expenses?
[5 Marks]
1(c) Notes on Accounts of a Company reads: No depreciation provided on a Machinery costing ` 50 Lakhs
imported three years back, since it is yet to be put into use. [5 Marks]
1(d) Nilakanta Construction Co. Ltd undertook a contract on 1st January to construct a building for ` 80
Lakhs. The Company found on 31st March that it had already spent ` 58,50,000 on the construction.
Prudent estimate of additional cost for completion was ` 31,50,000.
What amount should be charged to Revenue and what amount of Contract Value to be recognized as
Turnover in the accounts for the year ended 31st March as per provisions of AS7? [5 Marks]
2 The Balance Sheet of Amitabh, Abhisekh and Amrish as at 31.12.2013 stood as follows: [16 Marks]
Capital and Liabilities ` Properties and Assets `
Capital Accounts: NonCurrent Assets: Goodwill 37,800
Amitabh 60,000 Land & Buildings 74,000
Abhisekh 40,000 Investments 10,000
Amrish 40,000 1,40,000 Life Policy (at Surrender Value):
Amrish died on 31st March 2013, due to this reason the following adjustments were agreed upon:
Land and Buildings be appreciated by 50%.
Investments be valued at 6% less than the cost.
1
CA Clues Nikhil Gupta
Shree Guru
G Kripas Institute of Managemennt Accounts Group
G I CA
C IPCC
The Company
C alsoo issued sharres for ` 40,,00,000 for cash.
c Machineery costing ` 25,00,000 was
w then
installled. Assets accquired from the Vendors were: Machinnery ` 30,00,000, Stock ` 6,00,000, andd Patents
` 4,000,000.
nded 31st Marrch, the Totaal Sales were ` 1,80,00,0000, the Sales per
Durinng the year en p month inn the first
half year
y being onee half of whatt they were inn the latter hallf year.
2
CA Clues Nikhil Gupta
Shree Guru
G Kripas Institute of Managemennt Accounts Group
G I CA
C IPCC
The Net
N Profit of th
he Company, after charginng the followiing expenses, was ` 10,00,,000:
Particulars `
Depreciattion 5,40,000
Directorss Fees 86,000
Preliminaary Expenses 10,000
Office Ex
xpenses 2,40,000
Selling Ex
xpenses 1,98,000
Interest to
o Vendors 50,000
Asceertain the preincorporatioon and postiincorporationn Profits, and prepare the Balance Sheeet of the
mpany as on 31st March. The Closing Stoock was valueed at ` 7,00,0000.
Com
4(b) Fromm the followin ng, prepare ann Account Cuurrent to be rendered by A to B at 31st December, reeckoning
intereest at 10% p.aa. [4 Marks]
D
Date Particulars ` Date Particulars `
Julyy 1 Balaance owing frrom B 600 Sept. 01 B accepted As
A Bill at 3 months
m date 250
Jul 17 Gooods sold to B 50 Sept. 1 Cash receiveed from B 350
Augg. 1 Cashh received froom B 650 Oct.22 Goods boughht from B 30
Augg.19 Gooods sold to B 700 Nov. 12 Goods sold to
t B 20
Augg.30 Gooods sold to B 40 Dec. 14 Cash receiveed from B 80
3
CA Clues Nikhil Gupta
Shree Guru
G Kripas Institute of Managemennt Accounts Group
G I CA
C IPCC
5(a) A firre occurred in n the premisees of Fireprooof Co. on 31st August 20113. From the following paarticulars
relatiing to the perriod from 1st April
A 2013 to 31st August 2013,
2 you aree requested asscertain the ammount of
claim
m to be filed with
w the Insurrance Companny for the Losss of Stock. The
T concern had h taken an Insurance
I
Policcy for ` 60,0000, which is suubject to Aveerage Clause. [66 Marks]
Partticulars `
(i) Stock as per Balance Sheeet at 31.03.20013 99,000
(ii) Purchases 1,70,000
(iii)) Wages (inclu
uding Wages for the Installlation of a Machine
M ` 3,0000) 50,000
(iv)) Sales 2,42,000
(v) Sale Value of
o goods draw
wn by Partnerss 15,000
th
(vi)) Cost of good
ds sent to Connsignees on 166 August 20013, lying unssold with them
m 16,500
(vii) Cost of goods
g distribuuted as Free Samples
S 1,500
st
While vaaluing the Stoock at 31 March
M 2013, ` 1,000 weree written off in
i respect off a slow moviing item,
the cost of which was ` 5,000. A portion of theese goods weere sold at a looss of ` 500 on
o the originaal cost of
` 2,500. The remaindder of the stoock is now esstimated to bee worth the Original
O Costt. The value of goods
salvaged was estimateed at ` 20,0000. The Averagge Rate of Grooss Profit was 20% througghout.
5(b) What is the accountin ng entry to bee passed as peer AS10 for the
t followingg situations [4 Marks]
M
(i) Increaase in value of Fixed Assetts by ` 50,00,,000 on accouunt of Revaluaation.
(ii) Decreease in value of Fixed Asset by ` 30,000,000 on accouunt of Revaluuation.
4
CA Clues Nikhil Gupta
Shree Guru
G Kripas Institute of Managemennt Accounts Group
G I CA
C IPCC
Recceipts ` P
Payments `
Cash in Hand & at Bank
B (Openingg 80,000 Payments
P to Trade
T Creditoors 7
75,07,000
Balancee)
Cash Saales 73,80,000 Payments
P forr Bills Payablee 8,15,000
Receiptts from Trade Debtors 15,10,000 Sundry
S Expennses paid 6,20,700
Receiptts for Bills Reeceivable 3,40,000 Drawings
D 2,40,000
Cash in Handd & at Bank (C
C Closing 1,27,300
B
Balance)
Total
T 93,10,000 Total 9
93,10,000
Discountt Allowed to Trade Debtorrs and receiveed from Tradde Creditors amounted
a to ` 36,000 and ` 28,000
respectivvely. Bills en
ndorsed amounnted to ` 15,0000. Annual Fire
F Insurance Premium ` 6,000 was paaid every
year on 1st August for the renewal of the policy. p Furrniture, Fixtuures and Fittiings were suubject to
Depreciaation at 15% p.a.
p on Diminnishing Balancce Method.
You are also
a informed d about the foollowing balannces as on 31st March (yeaar end).
Particu
ulars ` Partticulars `
Stock 6,50,0000 Bills Payablle 1,40,000
Trade Debto
ors 1,52,0000 Outstandingg Expenses 5,000
Bills Receivaable 75,0000
Prepare Trading
T and Profit
P 3 st March, annd Balance Shheet as at thatt date.
and Losss A/c for the yearended 31
7. Answer any
a four of th
he following [4 4 = 166 Marks]
(a) From thee following figures,
f prepaare the Generral Ledger Adjustment
A Acccount in thee Bought Leddger, and
Sales Leddger Adjustm
ment Account in the Generaal Ledger
Partticulars ` Particulars `
Balancee of Bought Ledger
L Adjt A/c
A at the 3,860 Innterest on Cusstomers overrdue 400
beginninng Cr. A
Accounts
Balancee of Sales Led
dger Adjt A/cc at the 2,750 Collection from
m Debtors 29,000
beginninng
Credit Purchases
P 40,000 Saales Returns 800
Acceptaances Receiveed from Custoomers 2,500 Credit Sales 50,000
Allowannces Received
d 400 Cash Sales 2,000
Credit transferred
t fro
om Bought Leedger to 75 Acceptances
A reeturned dishonnoured 700
Sales Leedger
Paaid to Creditoors 13,000
5
CA Clues Nikhil Gupta
Shree Guru
G Kripas Institute of Managemennt Accounts Group
G I CA
C IPCC
(c) What do you mean by b Codificatiion of Accouunts? What are a its benefiits? Give an example
e of Codified
Accountss.
(d) Journalisse the follow wing issues of Debenturess in the bookks of the Isssuing Compaany (each situuation is
independdent)
(i) 25,0000 nos. of 8% % Debentures of ` 100 each,
e issued at
a a Premiumm of ` 15 perr Debenture, the total
amouunt is collecteed at the time of application itself.
(ii) Machhinery worth ` 38 Lakhs was w purchasedd. The amounnt due to the Vendor
V was settled
s by wayy of issue
of 6%% Debenturess of ` 400 eacch, issued at a discount of 5%.
5
(iii) 50,0000 nos. 9% Fully Convertiible Debenturres issued at face
f value of ` 50 each, thhe entire amouunt being
colleected at the tim
me of applicaation.