DISCLAIMER. Question No. 1
|
|
- Elwin Norton
- 5 years ago
- Views:
Transcription
1 No.1 for CA/CWA & MEC/CEC MASTER MINDS Dear students, These suggested answers are meant for easy and quick assessment of possible outcome of IPCC aspirants for their inadvance preparation and future course of planning. Copyrights on these suggested answers are reserved to MASTER MINDS. No circulation of these suggested answers is permitted by any means. Those who download these suggested answers can only use them for their self assessment and they don t have any rights to circulate the same through any means. DISCLAIMER 1. Readers must aware that, these are not the suggested answers issued by ICAI. These suggested answers are only the recommendations by MASTER MINDS, Guntur. 2. ICAI will issue its own suggested answers in future and performs paper valuation based on its own suggested answers. So, if any difference in judgment is found in assessment of the readers based on MASTER MINDS Suggested Answers, then MASTER MINDS holds no responsibility. 3. The Suggested answers issued by both ICAI and MASTER MINDS are purely different and their own opinions. So, there is no guarantee that suggested answers issued by MASTER MINDS match with the suggested answer to be released by ICAI. Even if the suggested answers issued by MASTER MINDS match with the Suggested answers to be issued by ICAI, it is purely accidental. 4. These suggested answers are prepared based on the information available to us and with the best of our knowledge. Wherever needed assumptions have been taken. 5. Even after taking maximum care in preparation of these suggested answers, there may be chances for some errors, diverse opinions & judgments. So, MASTER MINDS has no responsibility for any such errors and diverse opinions. Question No. 1 a) Statement Showing Cash flows from Investing Activities Un secured Loans Given to Subsidiaries Interest on Loan Received from subsidiary Pre acquisition dividend received on investment Interest received on Investment (Net) Proceeds from sale of plant (Book value soldloss incurred) (84,000 9,600) Cash flow from Investing Activities before extraordinary items Add: Extra ordinary Item Claim received for Loss of plant in fire Net cash flow from investing activities Amount (`) 4,85,000 82,500 62,400 68,000 74,400 1,97,700 49,600 2,47,300 Note: 1. Plant acquired by issue of 8% debentures is to be ignored as it a non cash transaction. 2. Interest received on Investments will be always considered on net basis IPCC May 2015_Suggested Answers_Accounts 1
2 Ph: /26 b) Statement showing Amount of Contract Revenue Costs and Profit / Loss to be recognized each year (As per AS7) Year 1 Contract Revenue (9000 X 26%) (Note 1) Less: Accumulated contract cost incurred Cumulative Profit Less: Profit already recognized Profit for the Year 1 Amount (`) (in Lakhs) 2,340 (2,093) Note 1: Contract costincurredupto dateof Reporting % of Completion = X100 TotalEstimatedContract Cost a) Contract cost incurred up to date of reporting = 2093 b) Total Estimated contract cost = Total Contract Value Est. profit for whole contract = % of Completion = X = 26% = 8050 Year 2 a) Contract Revenue = 9200 X 74% (Note 2) Less: Cumulative cost (Note 2) Cumulative Profit Less: Profit already recognized Profit for the Year 2 Amount (`) (247) 493 Note 2: Cum cost of date % of Completion = X100 TotalEstimatedContract Cost Cum cost to date = (Cost incurred up to date of reporting Exclude standard Materials cost not related to Current year ) = ( ) = 6068 Total Est. Contract Cost = (Total Est. Contract Value Est. Profit for whole contract) = = % of Completion = X100 = 74% 8200 IPCC May 2015_Suggested Answers_Accounts 2
3 No.1 for CA/CWA & MEC/CEC MASTER MINDS Year 3 a) Contract Revenue b) Contract Cost (Cont. Rev Est. Profit) (or) (Cost to date + Include cost of material related to current year) ( ) (or) ( ) Cumulative Profit Less: Profit already recognized Profit for the Year 3 Amount (`) (740) 260 Notes: 1. Contract revenue for year 2 = = Contract cost for year 2 = = Contract revenue for year 3 = = Contract cost for year 3 = = 2132 c) As per AS2 valuation of inventories, inventories consist of Raw material, workinprogress, and Finished goods and Inventories should be valued at lower of cost and Net realizable value. Valuation of Inventory for each Item as on i) Raw Material a) Cost = 600 units X 120 each = `72,000 b) NR (or) Replacement cost V = 600 units X Rs.90 per unit = ` 54,000 Value of Raw Material = 72,000 (or) Which ever is lower Value of Raw Materials is Valued at Rs.54,000 (i.e., at Replacement Cost) Note: As per AS 2 if the finished goods in which raw material is used are expected to be sold below cost, in such cases the replacement cost is the best available measure used for valuing in raw material. ii) Partly Finished Goods (Work in progress) a) Cost = 500 units X 260 each = 1,30,000 b) Net Realisable Value: Estimated selling price = Rs.300 () Estimate cost of completion = Rs. 60 NRVper unit As per AS2 Rs.240 Total NRV = 500 units x 240 = `1,20,000 Partly Finished goods is valued at 1,20,000 i.e., Lower of Cost (or) Net Re Value. iii) Finished Product X: a) Cost = 1500 units X 320 per unit = ` 4,80,000 b) NRV = 1500 units X 300 per unit = `4,50,000 Finished product X is value at `4,50,000 i.e., Lower of cost (or) NRV d) As per AS5 Net Profit (or) Loss for the period. Prior period items and changes in Accounting policies. It is valid to change the method of depreciation (i.e., A/c policy) in the following three cases. 1. For compliance of Accounting Standard. 2. For compliance of Statute (or) Law. 3. For better and appropriate presentation of Balance sheet. IPCC May 2015_Suggested Answers_Accounts 3
4 Ph: /26 Cal. of Book Value of Asset as on and Total Depreciation up to under SLM. Cost of Asset (on ) () Depreciation for the period and ,25,000 25,000 X 2 years 5 years Amount 3,25,000 1,20,000 2,05,000 Book value as on Book Value of Machinery as on = 2,05,000 Total Depreciation up to = 1,20,000 As per AS6 Depreciation Accounting, when there is change in method of Depreciation. Then Depreciation should be recomputed applying the new method from the date its Acquisition / Installation till the date of change of Method Any surplus (or) Deficiency arising between new method and old method is credited (or) Debited to statement of Profit & Loss respectively. Computation of Amount of Depreciation for and Net Book Value of the Machine As on (WDV Method) Amount Cost as on ,25,000 () Depreciation for 20% 65,000 WDV as on ,60,000 () Dep for 20% 52,000 WDV as on ,08,000 () Dep for 20% 41,600 WDV as on ,66,400 Amount of depreciation for is Rs.41,600 and Net Book Value of Machine as on is Rs.1,66,400. Step 1: Question No. 2 Abhay Ltd. Asha Ltd Purchase consideration Agreed (WN2) Issue price per share of M/s Abhilasha Ltd., (Nominal value also ` 100) No.of Equity shares to be issued by M/s Abhilasha Ltd., to the existing Eq. share holders 23,31, ,310 12,50, ,500 Note: Net Asset value is taken as base for issuing Equity shares of the transferee company to the share holders of transferor company. Step 2: Name of the Company: M/s Abhilasha Ltd., Balance Sheet as on : a Notes Number Equity and Liabilities Share holders funds Share capital 1 38,08,200 ` IPCC May 2015_Suggested Answers_Accounts 4
5 No.1 for CA/CWA & MEC/CEC MASTER MINDS 2 3 b a Reserves and Surplus Noncurrent Liabilities Current Liabilities Trade payables Total ,720 NIL 1,05,500 39,36, a a b c i ii Assets Non current Assets Fixed Assets Tangible Assets Intangible Assets Current Assets Inventory Trade Receivables Cash and Cash Equivalents Total ,94,500 3,20,000 7, ,31,000 1,64,920 39,36,420 Note to Accounts Share Capital Authorized Issued, subscribed called up and paid up Equity share capital 35,810 equity shares of `100 each fully paidup shares 12%, preference shares of `100 each, fully paidup (All the above equity and preference shares were issued for consideration other than cash) Reserves and surplus securities premium (2272X10) Trade Payables Sundry Creditors Tangible Assets a) Land and building b) Plant and Machinery Abhay Ltd. Asha Ltd. 35,000 (+)Unrecorded Liability 15,500 Abhay Ltd. 9,35,000 Asha Ltd. 6,32,500 Abhay Ltd. 3,79,500 Asha Ltd. 2,47,500 Intangible Assets Good will Abhay Ltd. 1,95,000 Asha Ltd. 1,25,000 Inventory Abhay Ltd 4,62,000 Asha Ltd. 2,64,000 Trade Receivables Sundry Debtors Abhay Ltd. 3,05,000 Asha Ltd. 2,85,000 Less: Provision for doubtful debts ` 35,81,000 2,27,200 22,720 55,000 50,500 1,05,500 15,67,500 6,27,000 21,94,500 3,20,000 7,26,000 5,90,000 59,000 5,31,000 IPCC May 2015_Suggested Answers_Accounts 5
6 Ph: / Cash and cash equivalents Abhay Ltd. Asha Ltd. () Cash paid to debenture holders for fractions of pref. shares (assumed) 1,40,000 25,000 1,65,000 (80) 1,64,920 Highlights: 1. Amalgamation in the nature of purchase 2. Purchase method of Accounting applied 3. Net Asset value method applied for computation of purchase consideration calculation. W.N 1: Computation of Goodwill A) Average Profits B) Normal Profits: Share Capital General Reserve Combined share capital & General Reserve Normal Rate of Return Normal profit C) Super profit (AB) D) 2 years purchase of super profits Abhay Ltd. Asha Ltd. W.N 2: Computation of purchase consideration under NAV method 2,75,000 15,00,000 2,75,000 17,75,000 10% 1,77,500 97,500 1,95,000 1,75,000 10,00,000 1,25,000 11,25,000 10% 1,12,500 62,500 1,25,000 Abhay Ltd. (`) Asha Ltd. (`) 1) Agreed value of assets taken over Good will Land and Buildings (@ 110% of Book Value) Plant & Machinery (@ 110% of Book Value) Inventory (@ 110% of Book Value) Sundry Debtors Bank Total (A) 2) Agreed Value of liabilities taken over provision for bad & doubtful debts (@10% on sundry debtors) 12% Debentures Sundry creditors including unrecorded liability Total (B) 3) NAV of business taken over (A B) 4) Purchase consideration W.N 3: Appropriate of liquidation expenses between Abhay Ltd. and Asha Ltd. 1,95,000 1,25,000 9,35,000 6,32,500 3,79,500 2,47,500 4,62,000 2,64,000 3,05,000 2,85,000 1,40,000 25,000 (1,80,000 40,000) (45,000 20,000) 24,16,500 15,79,000 30,500 28,500 55,000 2,50,000 50,500 85,500 3,29,000 23,31,000 12,50,000 23,31,000 12,50,000 Total liquidation expenses incurred Ratio of apportionment between companies Expenses to be borne by Abhay Ltd Expenses to be borne by Asha Ltd ` 60,000 2:1 60,000 x 2/3 : 40,000 60,000 x 1/3: 20,000 IPCC May 2015_Suggested Answers_Accounts 6
7 No.1 for CA/CWA & MEC/CEC MASTER MINDS W.N 4: Agreed value of 12% debentures taken over `2,50,000 Agreed price of each 12% pref. share (100+10% of 100) =`110 No. of 12% pref. shares to be issued Actually x `2,50,000/100 = hares Since fractional shares can not be issued, 2272 shares issued. Issue of 2272 pref. shares of `100 each Securities premium (2272 x 10) 2,27, ,49, Balance paid in cash (0.72 share x 110) Total benefit given to 12% debenture holders 2,50,000 Question No. 3 a) (Rs in Lakhs) Statement showing apportionment of expenses & profits into pre and post acquisition periods: Ratio Total A) Revenue from operations Turn over B) Other Income Interest on investment Bad debts recovered Total Income (A) Expenses Cost of goods sold Advertisements Sales Commission Salary M.D. Remuneration Interest on Debentures Rent Bad debts Under writing commission Audit fees Loss on Sale of Investment Depreciation 1:6 Pre Pre 1:6 1:6 1:6 1:5 (WN3) Post Post WN4 1:6 Post Post Pre 1: Pre Acquisition period Post Acquisition period Total Expenditure (B) Profit/Loss (A) (B) a) Pre Incorporation profit (Transfer to Capital Reserve) b) Post Incorporation profit (Transfer to profit & Loss A/c) Note: Pre Incorporation profit is a capital profit and transfer to capital Reserve. IPCC May 2015_Suggested Answers_Accounts 7
8 Ph: /26 W.N 1: Time Ratio: 12M to M Ratio = 3:9 => 1: M W.N 2: Sales Ratio : to (240Lakhs) M Time Sales properties 1 Ratio 3 Ratio = 3:18 = 1: M Time Sales properties 2 (Double Avg. Monthly sales) Ratio 18 W.N 3: Salary : Pre incorporation Post incorporation 3M 9M 3:15 W.N 4: 1:5 3M 3 6M 6X2=12M Rent: Pre incorporation Post incorporation 3M 9M 3x 9x + 1,80,000 Calculation of GP: 12x + 1,80,000 = 5,50,000 = 12x = 3,70,000/ X= 30,833 Pre = 92,500/ Post = 4,57,500 Turnover Less: Cost of goods sold Gross Profit (sales ratio 1:6) Amount (Lakhs) Pre incorporation 138 X 1/7 = 19,71,429 Post incorporation 138 X 6/7 = 1,18,28,571 IPCC May 2015_Suggested Answers_Accounts 8
9 No.1 for CA/CWA & MEC/CEC MASTER MINDS b) Under loss of profit policy insurable value is GP on adjusted annual turn over. Amount of policy (or) Insurable value of policy = (adjusted annual turnover) x (adjusted GP ratio. Insurable policy) ` ` GP on the basis of last year turnover Add: 25% for increase of turn over Add: Increased standing charges 1) Interest on over draft (2L@12%) 2) Wages (160000@20%) 3) Salaries (280000@10%) 24,000 32,000 28,000 11,90,000 2,97,500 14,87,500 84,000 Policy to be taken for current year 15,71,500 W.N 1: Dr Profit & Loss A/c Cr To variable exp To fixed exp To net profit ` ` 18,60,000 5,62,000 6,72,000 30,94,000 By sales (b/f) By interest income 30,50,000 44,000 30,94,000 WN 2: Gross profit of the previous year = sales variable exp = 30,50,000 18,60,000 = 11,90,000 Question No. 4 In the Books of M/s Care Traders Dr. Bank A/c Cr. Rs. Rs. To Balance B/d To debtors (WN6) To Sales (Cash) (W.N 1) To Furniture (Sold) 12,800 16,24,600 5,58,000 9,500 By Creditors (WN7) By Machinery By rent By Advertisement Expenses By Traveling Expenses By Repairs By Cash By Interest on loans By Balance C/d 14,86,250 1,14,000 1,32,000 80,000 86,200 36, ,32,900 22,04,900 22,04,900 IPCC May 2015_Suggested Answers_Accounts 9
10 Ph: /26 Dr. Trading and profit or Loss account of M/s Care Traders for the year ended Cr. Rs. Rs. To Opening stock To Purchases (Credit) To Gross Profit c/d 1,72,000 15,71,400 6,69,600 24,13,000 By Sales Cash Sales 5,58,000 Credit Sales 16,74,000 By Closing Stock 22,32,000 1,81,000 24,13,000 To rent 1,32,000 (+) Outstanding 12,000 To Advertisement Exp. 80,000 () Pre Paid 20,000 To traveling Exp. 78,400 (+) Cheques issued but Not presented for 7,800 To repairs To Loss on sale of furniture To petty Expenses To Depreciation on : (W.N. 8) 1, ,000 86,200 36,500 2,900 28,300 By Gross Profit B/d 6,69,600 Machinery 88,250 Furniture 23,260 To Interest on Loan 8,750 (+) Outstanding 8,750 To Net Profit 1,11,510 1,75,00 1,82,690 6,69,600 6,69,600 Share Capital Profit & Loss Opening Balance 1,47,800 (+) Current Year Profit 1,82,690 10% unsecured Loan Trade Payables Creditors(WN4) 1,30,950 Outstanding Rent 12,000 Outstanding Interest 8,750 Balance Sheet of M/s Care Traders as on Liabilities Rs. Assets Rs. 10,00,000 Machinery 8,25,500 (+) Additions Made 1,14,000 () Depreciation (WN 8) 88,250 3,30,490 1,75,000 1,51,700 Furniture 1,28,700 () Sale of Furniture 12,400 () Depreciation 23,260 Inventory Trade Receivables (WN 3) Prepaid advertisement Exp. Cash at Bank 8,51,250 93,040 1,81,000 2,79,000 60,000 2,32,900 16,57,190 16,57,190 IPCC May 2015_Suggested Answers_Accounts 10
11 No.1 for CA/CWA & MEC/CEC MASTER MINDS W.N 1: Sales for the year ended ,000 (+) Increase in sales during 2015(18,60,000 * 20%) 3,72,000 Sales for the year ended ,32,000 Cash sales 22,32,000 * 25% = 5,58,000 Credit sales 22,32,000*75% = 16,74,000 W.N 2: Gross Profit 30% on sales Total Sales 22,32,000 () Gross 6,69,600 Cost of Goods sold 15,62,400 W.N 3: closing balance of Debtors = 2 months credit sales = 16,74,000 x (2/12) = 2,79,000 W.N 4: Computation of Purchases Cost of goods sold 15,62,400 (+) closing stock 1,81,000 () Opening Stock (1,72,000) Total Purchases made 15,71,400 Since, the details of cash purchases are not given, it is assumed that total purchases made on credit W.N. 5: Closing balance of creditors = 1 month credit purchases = 15,71,400 x (1/12) = 1,30,950 W.N.6: Computation of collections from Debtors Dr. Debtors A/c Cr. Rs. Particular Rs. To balance b/d To sales (Credit) (W.N. 1) ,03,600 W.N.7: Computation of payment made to creditors By bank(bal. fig.) (collections made) By balance c/d 16,24,600 2,79,000 19,03,600 Dr. Creditors A/c Cr. Rs. Particular Rs. To bank a/c (bal. fig.) To Balance c/d (W.N. 5) By balance b/d By Purchases (Credit) (W.N.4) 14,86, ,950 16,17,200 W.N.8: Computation of Depreciation 1. On Machinery For full year on opening balance x 10% = 82,550 For 6 months on additions made 1,14,000 x 10% x 6/12 = 5,700 Total depreciation 88,250 45,800 15,71,400 16,17,200 IPCC May 2015_Suggested Answers_Accounts 11
12 Ph: / On Furniture Opening Balance 1,28,700 () Book Value of Furniture sold 12,400 ( ) 1,16,300 20% on the above = 1,16,300 x 20% = 23,260 W.N.9: Interest on unsecured loan 1,75,000 x 10% = 17,500 () interest paid (8,750) Interest outstanding _8,750 Question No. 5 a) Statement showing analysis of installments (Backward Approach method) Instalment Interest Principle Balance 3 rd 10 Instalment 2,75,000 (2,75,000x ) = 25,000 2,50,000 2,50, nd 10 Instalment 2,45,000 (4,95,000x ) = 45,000 2,00,000 4,50, st Instalment 2,65, (4,50,000+2,65,000)x = 65, Total = 1,35,000 2,00,000 6,50,000 6,50,000 Alt 1: Hire Purchase price = Down payment + Installment = 5,00, ,85,000 = `12,85,000 Cash Price = Hire purchase price Interest = 12,85,000 1,35,000 = `11,50,000 Alt 2: Cash Price = Sum of principle payments + Down payment = 6,50, ,00,000 = `11,50,000 In the Book of Lucky (Hire Purchaser) Dr. Tractors A/c Cr. Date Amount Amount Date (`) (`) To Happy 11,50, By Depreciation [ x 20%] By Bal c/d 2,30,000 9,20,000 11,50,000 11,50, To Bal b/d 9,20, By Depreciation 1,84,000 [920000x20%] By Bal c/d 7,36,000 9,20,000 9,20,000 IPCC May 2015_Suggested Answers_Accounts 12
13 No.1 for CA/CWA & MEC/CEC To Bal b/d MASTER MINDS 7,36,000 1,47, By Depreciation 1,97,225 By Happy A/c (WN 1) 97,175 By P & L A/c (loss) 2,94,400 By bal c/d (WN 2) 7,36,000 7,36,000 Dr. Happy A/c (Hire Vender) Cr. Amount Amount Date Date (`) (`) To Bank To Bank To Bal c/d To Bank To Bal c/d To Tractor (WN1) To bal c/d To Bank 5,00,000 2,65,000 4,50,000 1,97,225 77, ,50,000 65,000 12,15,000 12,15,000 2,45, By By bal b/d 4,50,000 2,50, By Interest 45,000 4,95,000 4,95, By Tractor By Interest By bal b/d By Interest 2,50,000 25,000 2,75,000 2,75,000 81, By bal c/d 77, By Interest 3, (77,775x x ) ,275 81,275 W.N.1: Value of the tractor taken away 30% on WDV) No. of tractor taken Cash price (11,50,000 x ½) 5,75,000 Less: Depreciation End of I st 30% ( x 30%) 1,72,500 Less: Depreciation End of II nd year ( x 30%) 1,20,750 Less: Depreciation End of III rd year ( x 30%) 84,525 ` One Tractor value at the End of III rd Year 1,97,225 W.N.2: Value of reaming tractor 20% on WDV) ` Value as on ,75,000 Less: Dep End of I st Year ( x 20%) 1,15,000 Less: Dep End of IInd Year ( x 20%) 92,000 Less: Dep End of IIIrd year ( x 20%) 73,600 Value of Tractor as on date ,94,400 W.N. 3: Value of one tractor at the time of surrender 2,94,400 () Agreed value of tractor surrendered 1,97,225 Loss of surrender 97,175 IPCC May 2015_Suggested Answers_Accounts 13
14 Ph: /26 b) Investment Account of Mr. Chatur for the year ending Dr. 12% Debentures A/c Cr. Date N.V Interest Cost Date N.V Interest Cost To bal b/d 4,00,000 12,000 (4Lx12%x3/12) To Bank (W.N1) 1 Sep 14 To P & L (W.N 3) 31 Jan 15 To Bank (W.N 6) 31 March 15 To P & L (bal.fig) 3,92, June 14 By Bank (W.N 2) 2,00,000 10,000 2,34,800 1 Sep 14 By Bank (W.N 3) 2,34,00 1 Dec 14 By Bank (W.N 4) By P & L (W.N 4) 3,00,000 3,000 3,06, March 14 45, March Dec 14 By Bank (W.N 5) By P & L (W.N 7) By bal c/d (W.N 7) 36,000 3,00,000 6,000 3,17,400 2,00,000 10,000 2,05,800 9,600 6,000 4,00,000 12,000 (4Lx12%x3/12) 3,400 4,20,000 9,00,000 70,000 9,56,200 9,00,000 70,000 9,56,200 W.N.1: Purchase of 2000 debentures at 120 cum Interest on Purchase value (200 x 120/) 2,40, ,000 Less: Interest included cum Interest ( x 14 x ) 12 Add: Brokerage ( x 2%) 4,800 Cost of debentures 2,34,800 W.N.2: Calculation of Interest as on No. of Debentures 6,000 Nominal Value 6,00,000 Interest Rate 12% No. of Months Interest (4,00, ,00,000x 12%x 12 6 ) 4,800 6M W.N.3: Calculation of Net sale 110 cum Interest and Profit/Loss on that Sale value (3,000 x 110) 3,30,000 (+) Int. Included Value (3000x100x12% 12 2 ) 6,000 () Brokerage ( x 2%) 6,600 Sale Value 3,17, ,94,000 () Cost of these Debenture 3000? Profit 23,400 IPCC May 2015_Suggested Answers_Accounts 14
15 No.1 for CA/CWA & MEC/CEC MASTER MINDS W.N.4: Calculation of Net sale proceeds on 105 exinterest and Profit/Loss on that Sale value 2,10,000 () Brokerage ( x 2%) 4,200 Sale Value after brokerage 2,05, ,15, (3,92,000x ) = 98, Lost of these debentures (2,34,800x ) = 1,17, Loss on sale of debentures 9,600 Interest on the above: x 12% x (5/12) = ` 10,000/ W.N.5: Calculation of Interest as on 31/12/14 No. of Debentures 1,000 Nominal Value of Debentures 1,00,000 Int. Rate 12% No. of Months 6M 6 6,000 Interest amount (100000x12%x ) 12 W.N.6: Calculation of cost of 100/ exinterest Purchase price (3000 x 100) 3,00,000 (+) Brokerage [ x 2%] 6,000 Cost of Debentures 3,06, ,000 Int. on the above (3,00,000x12%x ) 12 W.N.7: As per AS13 current Investments are carried at cost or NRV which ever is lower. Cost of Debentures: Debenture (2,34,800 x ) = 1,74, Debenture = 3,06,000 4,23,400 Mark to Market value is Rs. 4,20,000 (4,000 x 105) So carrying value of Investments is 4,20,000/ Loss on valuation transfer to P & L A/c is 3,400/ Sales Less cost of goods sold Opening stock Purchases Less closing stock Question No. 6 Trading & P & L A/c for the year ended 31March2015 Amount Amount IPCC May 2015_Suggested Answers_Accounts 15 15,500 84,000 (18,550) 1,20,000 (80,950) Gross profit 39,050
16 Ph: /26 Gross profit Less: Salary (WN1) Trade Expenses (WN2) Rent & Rates (WN3) Bad Debts Provision for Bad Debts Depreciation Plant & Machinery(WN 4) Motor car (WN 4) Traveling Exp Office Maintenance Conveyance Interest on A s loan Profit A B C Upto 30 Sep ,525 6, , ,100 1, (2:1) 6,600 (4,400) (2,200) Upto 31 March ,525 5, , ,100 1, (36400 x 9% x 6/12) (3:2) 6,292 3,775 2,517 Dr Partner s Capital A/c Cr A B C A B C To (Good will) (WN 3) To Drawings a/c 2,000 6,000 4, By bal b/d By Bank a/c By (Good will) a/c (WN 5) 24,000 6,000 12,000 9, To A s loan a/c 36, By Good will a/c (WN 5) 4, To Drawings a/c 3,000 1, By P & L a/c 4,400 2,200 (upto 30 th sep) To bal c/d 8,975 6, By P & L a/c 3,775 2,517 (upto 31 st march) 38,400 17,975 11,517 38,400 17,975 11,517 Balance sheet as on 31March 2015 Liabilities Amount Amount Assets Amount Amount Plant & Machinery 22,000 Capital ()Provision for Dep. (4, ,200) B 8,975 C 6,517 15,492 Motor car 30,000 A s loan 36,400 Outstanding Interest 1,638 38,038 Current Asset ()Provision for Dep. (6, ,000) (6,600) 15,400 (9,000) 21,000 Stock 18,550 Creditors 10,100 Debtors 5,400 (270) 5,130 Outstanding trade Expenses 250 Prepaid Rent 600 Balance at Bank 3,200 63,880 63,880 IPCC May 2015_Suggested Answers_Accounts 16
17 No.1 for CA/CWA & MEC/CEC MASTER MINDS W.N.1: Salaries Less partner s drawing A 2,000 B 3,000 C 1,000 Allocation Half year upto 30 sep /2 (12, ) + C s salary 1,500 Half year upto 30 March /2 (12, ) 18,000 6,000 12,000 6,750 5,250 12,000 W.N. 2: Trade Expenses Total as per trial balance Add accrual Allocation Half year (upto 30 th sep 2014) Half year (upto 31 st march 2015) 1, , W.N. 3: Rent & Rates As per trial balance () rent paid in advance Allocation Half year (upto 30 th sep 2014) 1200 Half year (upto 31 st march 2015) , ,400 W.N. 4: Depreciation Plant & machinery cost Depreciation Half year (upto 30 th sep 2014) Half year (upto 31 st march 2015) Motor car Depreciation Half year (upto 30 th sep 2014) Half year (upto 31 st march 2015) 22,000 2,200 1,100 1,100 30,000 3,000 1,500 1,500 W.N 5: A B C G.W (Cr) 5000 Cr 9000 Dr 6000 Dr Cr 4000 (Dr) 6000 (Dr) Creation of C.W (2:1) Written off G.W (3:2) (Dr) (Cr) IPCC May 2015_Suggested Answers_Accounts 17
18 Ph: /26 Good will Adjustment entry is B s Capital A/c Dr 4000 C s Capital A/c Dr 6000 To A s Capital A/c a) W.N. 1: Dr. To Cash a/c To Bal c/d Question No. 7 Creditors for sports Material A/c Cr. Amount Amount 64,300 29,400 By Bal b/d By Purchase of sports Material a/c (B/f) 23,200 70,500 93,700 93,700 Sports Material A/c Amount Amount To Bal b/d To Cash a/c (Purchase) To Cr s for sports material (Supplier) 56,800 23,500 70,500 By Sports Material consumed & Sold (B/f) By Bal c/d Total Cost of material consumed/sold = 1,17,900 i) Cost of material consumed (40% of ) = 47,160 ii) Cost of material sold (60% of ) = 70,740 (+) 20% = 14,148 Sale value of sports material = 84,888 1,17,900 32,900 1,50,800 1,50,800 b) Computation of Average Due Date Date of Bill Credit period Due date No. of Days Amount Product 29/1/14 20/3/14 12/7/14 10/8/14 1month 2month 1month 2month 03/3/14 23/5/14 14/8/14 13/10/14 Total Pr oduct A.D.D of the Bill = Base Date ± Total Amount = 3/3/ ,32,000 44,000 Note 2: If the due date falls on a day, which in public holiday, preceding business day will be the due date. IPCC May 2015_Suggested Answers_Accounts ,000 8,000 14,000 12,000 = 3/3/ days = 09/07/ ,48,000 22,96,000 26,88,000 44,000 56,32,000 Note 1: If the month in which the period terminates has no corresponding days, the period shall be deemed to expire on the last day of such a month.
19 No.1 for CA/CWA & MEC/CEC MASTER MINDS c) i) As per As9, Revenue Recognition If goods delayed at buyer request such sale is recognized as revenue if it satisfies the following 3 conditions: Goods are identified Ready for delivery at that time Invoice/Bill prepared i.e. payment made In this situation we assumed M/s Paper Products Limited has satisfied all above conditions. Therefore, Rs. 60,000 is recognized as Revenue in the f.y ii) As per As9, Revenue Recognition If goods are consigned to consignee, such consignment is recognized as sales only when these goods are sold to third party by consignee, Therefore Revenue to be recognized during Financial year is only (1,50,000 x 80%) = Rs. 1,20,000 iii) As per As9, If goods are sold on approval/consent basis, such sales recognised as revenue only when Approval received from the buyer, and Reasonable period/ specified period as per the agreement has expired before Balance Sheet date. In this problem the above 2 conditions are satisfied. Therefore, sales to be recognized Rs.1,20,000. Therefore entire sales i.e., Rs.1,20,000 revenue can be recognized as Revenue during the Financial year iv) As per As9, Trade discount deducted from gross sales for recognition purpose. Therefore, Revenue to be recognised = (7,80,00039,000) = 7,41,000. Total Revenue to be recognized for the year ending i) 60,000 ii) 1,20,000 iii) 1,20,000 iv) 7,41,000 11,61,000 d) It is very difficult task for an organization is choose appropriate accounting software from the bundle of software available in the market. Some basic criteria should be considered wile selecting the software. i) Fulfillment of business needs: Buyers try to match his own requirement with the available software. ii) Easy to use: Such software which is easily operative should be selected. iii) Provides Maximum Reports: some software packages are available in the market which might provide extra reports or such report as they wants. iv) Goodwill of the Vendor: a stable vendor with good past records will always be preferred because their continues support is essential for any software. v) Cost comparison: First analyse various software and then select the most economic software. IPCC May 2015_Suggested Answers_Accounts 19
20 Ph: /26 vi) Regular update: Vendor normally provides regular updates to take care of the changes of law as well as ass new feature to the existing software. So, select the vendor whose past record in this context is good. e) As per AS10 Accounting for Fixed Assets, the cost of fixed asset comprises its purchase price, including import duties and other nonrefundable taxes (or) levies and any directly attributable cost of bringing the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. In the books of M/s versatile Limited Calculation of Cost of Asset (Machinery) to be capitalized as per AS10 Purchase price (including excise duty () Refund of Excise duty (40,000X 50%) (+) Preparation of site (+) Labour changes (66,000X 200/600) (+) Spare Parts & Tools consumed (+) Salaries of Supervisor (24,000X25%) (+) Administrative expenses (32,000X1/10) (+) Test run & Experimental Expenses (+) Consultancy (+) Depreciation Total value of plant to be capitalized Amount 4,80,000 (20,000) 21,000 22,000 6,000 6,000 3,200 23,000 9,000 12,000 5,62,200 THE END IPCC May 2015_Suggested Answers_Accounts 20
DISCLAIMER.
DISCLAIMER The Suggested Answers hosted in the website do not constitute the basis for evaluation of the students answers in the examination. The answers are prepared by the Faculty of the Board of Studies
More informationIPCC MAY 2015 QUESTION PAPER PAPER 1 ACCOUNTING
IPCC MAY 2015 QUESTION PAPER PAPER 1 ACCOUNTING Questions No. 1 is compulsory. Candidates are also required to answer any five questions from the remaining six questions. Working notes should form part
More informationSUGGESTED ANSWERS TO MAY 2015 IPCC EXAMS ADVANCED ACCOUNTS
No.1 for CA/CWA & MEC/CEC MASTER MINDS SUGGESTED ANSWERS TO MAY 2015 IPCC EXAMS ADVANCED ACCOUNTS Dear students, These suggested answers are meant for easy and quick assessment of possible outcome of IPCC
More informationGurukripa s Guideline Answers to May 2015 Exam Questions CA Inter (IPC) Group I Accounting
Gurukripa s Guideline Answers to May 2015 Exam Questions CA Inter (IPC) Group I Accounting Question No.1 is compulsory (4 X 5 = 20 Marks). Answer any five questions from the remaining six questions (16
More informationModel Test Paper - 1 IPCC Gr. I Paper - 1 Accounting Question No. 1 is Compulsory. Attempt any five question from the remaining six question. 1.
Model Test Paper - 1 IPCC Gr. I Paper - 1 Accounting Question No. 1 is Compulsory. Attempt any five question from the remaining six question. 1. (a) M/s Progressive Company Limited has not charged depreciation
More informationFINAL CA May 2018 Financial Reporting
FINAL CA May 2018 Financial Reporting Test Code F5 Branch: Andheri Date: 10.12.2017 (50 Marks) Note: All questions are compulsory. Question 1 (9 marks) Value Added Statement of Pradeep Ltd. for the period
More informationPAPER 1: ACCOUNTING PART I: ANNOUNCEMENTS STATING APPLICABILITY & NON-APPLICABILITY FOR NOVEMBER, 2015 EXAMINATION
PAPER 1: ACCOUNTING PART I: ANNOUNCEMENTS STATING APPLICABILITY & NON-APPLICABILITY FOR NOVEMBER, 2015 EXAMINATION A. Applicable for November, 2015 examination (i) Companies Act, 2013 (ii) The relevant
More informationSAMVIT ACADEMY IPCC MOCK EXAM
1. (a) SUGGESTED ANSWERS - Group 1 Accounting (Code HAL) Disclaimer (Read carefully) The answers given below are prepared by the faculty of Samvit Academy as per their views and experience. The working
More informationGuideline Answers for Accounting Group I
Guideline Answers for Accounting Group I Question 1(a): 5 Marks Heramba Ltd gives you the following information for the year ended 31 st March 20X2: ` Sales for the year ` 48,00,000 (The Company sold goods
More informationTest Series: March, 2017
MOCK TEST PAPER INTERMEDIATE (IPC) : GROUP I PAPER 1: ACCOUNTING Question No. 1 is compulsory. Answer any five questions from the remaining six questions. Test Series: March, 2017 Wherever necessary suitable
More informationSree Lalitha Academy s Key for CA IPC Accounting - Nov 2013
Question No.1 is compulsory Answer any 5 questions from the remaining 6 questions 1. (a) Solution : Cost of Fixed Asset is calculated as follows: - Purchase Price 5,278,000 Add: Sales Tax - 4% on 52,78,000
More informationIPCC MAY 2014 SUGGESTED ANSWERS Paper 1 ACCOUNTING
IPCC MAY 2014 SUGGESTED ANSWERS Paper 1 ACCOUNTING Problem No.1 (a) As per AS.2 The net realisable value of the material and other supplies held for use in production of finished goods is estimated as
More informationSolved Answer Accounts CA IPCC Dec by Arvind Jain 1
Solved Answer Accounts CA IPCC Dec. 2009 by Arvind Jain 1 1. (i) On 1st April, 2008, Chhotu started business with an initial Capital of Rs. 70,000. On 1st October, 2008, he introduced additional capital
More informationIPCC Accounts PAPER 1 NOV
IPCC Accounts PAPER 1 NOV. 2011 1 Qn1. In Case of loss or inadequate profits, Managerial remuneration is payable as per rates specified in schedule XIII depending upon the effective capital of the company.
More information10. CASH FLOW STATEMENTS
PROBLEM NO: 1 X Ltd. Cash Flow Statement for the year ended 31st March, 2015 (Using direct method) 10. CASH FLOW STATEMENTS ( In 000) Rs Cash flows from operating activities Cash receipts from customers
More informationPAPER 1: ACCOUNTING PART I: ANNOUNCEMENTS STATING APPLICABILITY & NON-APPLICABILITY FOR NOVEMBER, 2014 EXAMINATION
PAPER 1: ACCOUNTING PART I: ANNOUNCEMENTS STATING APPLICABILITY & NON-APPLICABILITY FOR NOVEMBER, 2014 EXAMINATION A. Applicable for November, 2014 examination Revision in the Criteria for classifying
More informationcum interest. Journalise the transaction. (iv) Swaminathan owed to Subramanium the following sums :
Question 1 (i) (ii) PAPER 1 : ACCOUNTING Answer all questions Wherever appropriate, suitable assumption(s) should be made by the candidates. Working notes should form part of the answer A and B are partners
More informationPAPER 1 : ACCOUNTING QUESTIONS
PAPER 1 : ACCOUNTING QUESTIONS Profit or Loss Prior to Incorporation 1. A firm which was carrying on business from 1 st January, 2009 gets itself incorporated as a company on 1st May, 2009. The first accounts
More informationDISCLAIMER. The Institute of Chartered Accountants of India
DISCLAIMER The Suggested Answers hosted in the website do not constitute the basis for evaluation of the students answers in the examination. The answers are prepared by the Faculty of the Board of Studies
More informationMOCK TEST PAPER INTERMEDIATE (IPC) : GROUP I PAPER 1: ACCOUNTING
MOCK TEST PAPER INTERMEDIATE (IPC) : GROUP I PAPER 1: ACCOUNTING 1 Test Series: March, 2018 SUGGESTED ANSWERS/HINTS 1. (a) Constructing or acquiring a new asset may result in incremental costs that would
More information12. PARTNERSHIP ACCOUNTS-1
(i) No.1 for CA/CWA & MEC/CEC SOLUTIONS TO ASSIGNMENT PROBLEMS PROBLEM NO.1 1. PARTNERSHIP ACCOUNTS1 Statement of Affairs of A,B & C As on 0 th June, 008 Liabilities Assets,8 0,000 Capital (Bal. Fig.)
More information8. PARTNERSHIP ACCOUNTS - II
SOLUTIONS TO ASSIGNMENT PROBLEMS 8. PARTNERSHIP ACCOUNTS II PROBLEM NO. 1 Realisation Account To Debtors A/c 48,000 By Creditors A/c 48,000 To Stock A/c 60,000 To Fixtures A/c 24,000 By cash A/c (assets
More informationTest Series: September, 2014
MOCK TEST PAPER 1 INTERMEDIATE (IPC) : GROUP I PAPER 1: ACCOUNTING Question No. 1 is compulsory. Answer any five questions from the remaining six questions. Test Series: September, 2014 Wherever necessary
More informationSOLUTIONS TO ASSIGNMENT PROBLEMS. PROBLEM No. 1. Dec.31 By Bank Stock. 17,500 Debtors. Cash from Petty cash 26,000 8,200 9,400 63,400 16,400
SOLUTIONS TO ASSIGNMENT PROBLEMS PROBLEM No. 1 12. BRANCH ACCOUNTS (A) Debtors Method: Dr. Delhi Branch Account Cr. 2010 Particulars Rs. Rs. 2010 Particulars Rs. Rs. Jan. 1 Dec.31 By Bank Stock Cash Sales
More information4. PROFIT OR LOSS PRIOR TO INCORPORATION
4. PROFIT OR LOSS PRIOR TO INCORPORATION SOLUTIONS TO ASSIGNMENT PROBLEMS Problem No. 1 Trading A/c and Profit and loss a/c for the year ending 31.3.2002 post post To cost of goods sold (WN 2) 2,10,000
More informationSuggested Answer_Syllabus 2012_Jun2017_Paper 5 INTERMEDIATE EXAMINATION GROUP I (SYLLABUS 2012)
INTERMEDIATE EXAMINATION GROUP I (SYLLABUS 2012) SUGGESTED ANSWERS TO QUESTIONS JUNE 2017 Paper-5: FINANCIAL ACCOUNTING Time Allowed : 3 Hours Full Marks : 100 The figures in the margin on the right side
More informationModel Test Paper - 2 IPCC Group- I Paper - 1 Accounting May Answer : Provisions: According to AS 10, Property, Plant and Equipment: 1.
Model Test Paper - 2 IPCC Group- I Paper - 1 Accounting May - 2017 1. (a) M/s Progressive Company Limited has not charged depreciation for the year ended on 31 st March, 2012, in respect of a spare bus
More informationGurukripa s Guideline Answers to Nov 2015 Exam Questions CA Inter (IPC) Group I Accounting
Gurukripa s Guideline Answers to Nov 2015 Exam Questions CA Inter (IPC) Group I Accounting Question No.1 is compulsory (4 X 5 = 20 Marks). Answer any five questions from the remaining six questions (16
More informationAll BATCHES DATE: MAXIMUM MARKS: 100 TIMING: 3¼Hours
All BATCHES DATE: 09.07.2018 MAXIMUM MARKS: 100 TIMING: 3¼Hours PAPER 1: ACCOUNTS Q. No. 1 is compulsory. Candidates are required to answer any four questions from the remaining five questions. Wherever
More information13. BRANCH ACCOUNTS SOLUTIONS TO ASSIGNMENT PROBLEMS
13. BRANCH ACCOUNTS SOLUTIONS TO ASSIGNMENT PROBLEMS PROBLEM No. 1 (A) Debtors Method: Delhi Branch Account 2010 Particulars Rs. Rs. 2010 Particulars Rs. Rs. Jan. 1 Dec.31 By Bank Stock 7,000 Cash Sales
More informationSUGGESTED SOLUTION INTERMEDIATE N 2018 EXAM. Test Code CIN 5010
SUGGESTED SOLUTION INTERMEDIATE N 2018 EXAM SUBJECT- ADVANCED ACCOUNTS Test Code CIN 5010 Date: 25.08.2018 Head Office : Shraddha, 3 rd Floor, Near Chinai College, Andheri (E), Mumbai 69. Tel : (022) 26836666
More informationAnswer to MTP_Intermediate_Syllabus2016_June2018_Set 2 Paper 5- Financial Accounting
Paper 5- Financial Accounting Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 5- Financial Accounting Full Marks : 100 Time allowed:
More informationCA - IPCC (OLD SCHEME) RTP's for MAY 2018 Examinations. As per the Companies (Accounting Standards) Rules, 2006
CA - IPCC (OLD SCHEME) RTP's for MAY 2018 Examinations www.capitaltrainers.com PAPER 1: ACCOUNTING PART I: ANNOUNCEMENTS STATING APPLICABILITY & NON-APPLICABILITY FOR MAY, 2018 EXAMINATION A. Applicable
More information16. COMPANY FINAL ACCOUNTS
16. COMPANY FINAL ACCOUNTS SOLUTIONS TO ASSIGNMENT PROBLEMS PROBLEM NO.1 Journal Entries in the Books of CODIG Ltd. Date Debit Credit 31.03.03 Profit and Loss A/c Dr. To Provision for Income Tax A/c (Being
More informationSolved Answer Acc._Paper_5 CA Ipcc May
Solved Answer Acc._Paper_5 CA Ipcc May. 2010 1 Qn. 1. Answer the following questions : [ 10 x 2 = 20 marks ] (i) A Company had issued 20,000, 13% Convertible debentures of Rs.100 each on 1st April, 2007.
More informationQUESTIONS. Inventory ,65,000 Bank Current Account 20,000 Discounts & Rebates allowed
PAPER 1: ACCOUNTING PART I: ANNOUNCEMENTS STATING APPLICABILITY & NON-APPLICABILITY FOR MAY, 2018 EXAMINATION A. Applicable for May, 2018 examination I. Companies Act, 2013 II. Relevant Sections of the
More informationCA - IPCC COURSE MATERIAL
CA - IPCC COURSE MATERIAL Quality Education beyond your imagination... GUESS QUESTION PAPERS FOR NOV 2015 IPCC EXAMS GROUP-I (RELEASED ON 11 TH OCT 2015) Cell: 98851 25025 / 26 Visit us @ www.mastermindsindia.com
More informationSOLUTIONS TO ASSIGNMENT PROBLEMS. Problem No. 1
No.1 for CA/CWA & MEC/CEC MASTER MINDS 12. PROCESS COSTING SOLUTIONS TO ASSIGNMENT PROBLEMS Problem No. 1 Process A Account Units Amount Units Amount To Input 8000 72000 By Normal Loss (5%) 400 800 To
More informationINTERMEDIATE EXAMINATION GROUP - I (SYLLABUS 2016)
INTERMEDIATE EXAMINATION GROUP - I (SYLLABUS 2016) SUGGESTED ANSWERS TO QUESTIONS JUNE - 2017 Paper - 5 : FINANCIAL ACCOUNTING Time Allowed : 3 Hours Full Marks : 100 The figures in the margin on the right
More informationPAPER 5 : ADVANCED ACCOUNTING
PAPER 5 : ADVANCED ACCOUNTING Question No.1 is compulsory. Candidates are also required to answer any five questions from the remaining six questions. Working notes should form part of the respective answers.
More information3 Advanced Issues in Partnership Accounts
3 Advanced Issues in Partnership Accounts Unit 1: Dissolution of firms Question 1 X and Y carrying on business in partnership sharing Profit and Losses equally, wished to dissolve the firm and sell the
More informationTest Series: September, 2014
MOCK TEST PAPER 1 INTERMEDIATE (IPC) : GROUP I PAPER 1: ACCOUNTING Question No. 1 is compulsory. Answer any five questions from the remaining six questions. Test Series: September, 2014 Wherever necessary
More informationInternal Reconstruction
5 Internal Reconstruction Learning Objectives After studying this chapter, you will be able to: Understand the meaning of term reconstruction. Sub-divide and consolidate shares. Convert shares into stock
More informationSUGGESTED SOLUTION CA FINAL MAY 2017 EXAM
SUGGESTED SOLUTION CA FINAL MAY 2017 EXAM FINANCIAL REPORTING Test Code - F M J 4 0 1 5 BRANCH - (MULTIPLE) (Date : ) Head Office : Shraddha, 3 rd Floor, Near Chinai College, Andheri (E), Mumbai 69. Tel
More information10. FINANCIAL STATEMENTS OF BANKING COMPANIES
No.1 for CA/CWA & MEC/CEC MASTER MINDS 10. FINANCIAL STATEMENTS OF BANKING COMPANIES SOLUTIONS TO ASSIGNMENT PROBLEMS PROBLEM No. 1 Interest on performing assets is recognized on accrual basis but interest
More information,
Ques 1 MAGNI PROFS CMA COACHING INSTITUTE (A) i. A ii. B iii. B iv. B v. D vi. A vii. D viii. C ix. C x. A (B) i. C ii. E iii. F iv. A v. B (C) i. T ii. F iii. T iv. F v. F (D) (a) Trade (b) DOM 12.04.2014
More informationPAPER 1 : ACCOUNTING PART I : ANNOUNCEMENTS STATING APPLICABILITY & NON-APPLICABILITY FOR NOVEMBER, 2012 EXAMINATION
PAPER 1 : ACCOUNTING PART I : ANNOUNCEMENTS STATING APPLICABILITY & NON-APPLICABILITY FOR NOVEMBER, 2012 EXAMINATION A. Applicable for November, 2012 examination Schedule VI revised by the Ministry of
More informationFinancial Statements of Companies
2 Financial Statements of Companies BASIC CONCEPTS UNIT 1: PREPARATION OF FINANCIAL STATEMENTS While preparing the final accounts of a company the following should be kept in mind: Requirements of Schedule
More informationFinal Accounts. A) Trading A/c Dr. Trading A/c Cr. Particulars Amt. Particulars Amt.
Chapter 13 Final Accounts * Cost of Goods sold = Op. stock + Purchases Cl. Stock * Gross Profit = Sales Cost of Goods sold * Gross Profit = Sales G.P.% * Gross profit can be a percentage on Cost or it
More informationPaper-5 : FINANCIAL ACCOUNTING
Paper-5 : FINANCIAL ACCOUNTING Study Note 1: Accounting Process 1. (a) The following errors were discovered in the books of a trader for the year ended December 31, 2014: (i) The total of the Purchase
More informationLiabilities Rs. Assets Rs.
MARKING SCHEME SAMPLE QUESTION PAPER -I ACCOUNTANCY Class - XII Set - I Part A Accounting for Not for Profit Organizations, Partnership Firms and Companies 1. Such organisations are formed for providing
More informationFinancial Accounting Solved Ans. C.s. Found. Dec.09 1
Financial Accounting Solved Ans. C.s. Found. Dec.09 1 Qn.1. (A) Explain any two of the following: (i) Date of maturity of bills of exchange and promissory note (ii) Del credere commission? (iii) Manufacturing
More informationTHIS CHAPTER COMPRISES OF. Working knowledge of : AS 1, AS2, AS 3, AS 6, AS 7, AS 9, AS 10, AS 13, AS 14.
Star Rating On the basis of Maximum marks from a chapter On the basis of Questions included every year from a chapter On the basis of Compulsory questions from a chapter CHAPTER 1 Accounting Standards
More information4. Expected Total Loss on Contract (Contract Price? 2400 Less Total Expected Cost ` 3250) ` 850 Crores
INTER CA MAY 2018 PAPER 5 :ADVANCED ACCOUTING Branch: Multiple Date: Note: All questions are compulsory. Question 1 A) 1. Basic Computations (2 marks) 1. Cost Incurred Till Date (Cost of Work Certified
More informationINTERNAL RECONSTRUCTION
5 INTERNAL RECONSTRUCTION Learning Objectives After studying this chapter, you will be able to: Understand the meaning of term reconstruction. Sub-divide and consolidate shares. Convert shares into stock
More informationUNIT - 1: DISSOLUTION OF PARTNERSHIP FIRMS. Go through the circumstances in which a partnership is dissolved.
CHAPTER 15 PARTNERSHIP ACCOUNTS UNIT - 1: DISSOLUTION OF PARTNERSHIP FIRMS LEARNING OUTCOMES After studying this chapter, you will be able to r r r r Go through the circumstances in which a partnership
More informationCopyright -The Institute of Chartered Accountants of India. The forward contract is sold before its due date, hence considered as speculative.
PAPER 1: FINANCIAL REPORTING Answer all questions. Working notes should form part of the answer. Wherever necessary, suitable assumptions may be made by the candidates. Question 1 (a) Mr. A bought a forward
More informationSUGGESTED SOLUTION. Head Office : Shraddha, 3 rd Floor, Near Chinai College, Andheri (E), Mumbai 69. Tel : (022)
SUGGESTED SOLUTION Head Office : Shraddha, 3 rd Floor, Near Chinai College, Andheri (E), Mumbai 69. Tel : (022) 26836666 1 P a g e Ans. 1 (a) Computation of Weighted Average Number of Shares Outstanding
More information*
Solved Ans. Accounts_5 CA IPCC Nov. 2010 1 Attention C.A. Pcc & Ipcc Students Solved Ans. Accounts_5 Ipcc_Nov.10 Keep Watching our website* for further solution. *www.jainclassesonline.com (No.1 Institute
More informationFinancial Accounting and Reporting-I Suggested Answers Certificate in Accounting and Finance Autumn 2014
Ans.1 (a) ABC Limited Statement of comprehensive income for the year ended 30 June 2014 Rs. in million Sales (737-12) 725 Cost of sales (W-1) (563) Gross profit 162 Selling and marketing expense (28) Administrative
More informationINTERMEDIATE EXAMINATION
INTERMEDIATE EXAMINATION GROUP I (SYLLABUS 2008) SUGGESTED ANSWERS TO QUESTIONS JUNE 2013 Paper-5 : FINANCIAL ACCOUNTING Time Allowed : 3 Hours Full Marks : 100 The figures in the margin on the right side
More informationMOCK TEST PAPER - 2 FINAL: GROUP I PAPER 1: FINANCIAL REPORTING SUGGESTED ANSWERS/HINTS
MOCK TEST PAPER - 2 FINAL: GROUP I PAPER 1: FINANCIAL REPORTING SUGGESTED ANSWERS/HINTS Test Series: October, 2017 1. (a) Statement Showing Impairment Loss ( in crores) Carrying amount of the machine as
More informationGurukripa s Guideline Answers for May 2015 IPCC Exam Questions ADVANCED ACCOUNTING Group II
Gurukripa s Guideline Answers for May 2015 IPCC Exam Questions ADVANCED ACCOUNTING Group II Question No.1 is Compulsory. Answer any 5 Questions from the remaining 6 Questions. Wherever appropriate, suitable
More informationAccounting Group 1 - Important questions for IPCC November 2017
Accounting Group 1 - Important questions for IPCC November 2017 AS-2 1. Calculate the value of raw materials and closing stock based on the following information: Raw material X - Closing balance 1,000
More informationINTER CA MAY Note: All questions are compulsory. Question 1 (6 marks)
Note: All questions are compulsory. INTER CA MAY 2018 Sub: Accountancy & FM Topics: Hire purchase & Instalment selling, Branch Accounts, Estimation of Working Capital, Cash Budget, Cash Flow Statement.
More information6 Amalgamation. 1. Meaning of Amalgamation. Learning Objectives. After studying this chapter, you will be able to
6 Amalgamation After studying this chapter, you will be able to Learning Objectives Understand the term Amalgamation and the methods of accounting for amalgamations. Appreciate the concept of transferee
More informationSuggested Answer_Syl12_Dec2017_Paper 18 FINAL EXAMINATION
FINAL EXAMINATION GROUP IV (SYLLABUS 2012) SUGGESTED ANSWERS TO QUESTIONS DECEMBER 2017 Paper- 18: CORPORATE FINANCIAL REPORTING Time Allowed : 3 Hours Full Marks : 100 The figures in the margin on the
More informationFree of Cost ISBN : IPCC Gr. II. (Solution of May & Questions of Nov ) Paper - 5 : Advanced Accounting
Free of Cost ISBN : 978-93-5034-725-6 IPCC Gr. II Appendix (Solution of May - 2013 & Questions of Nov - 2013) Paper - 5 : Advanced Accounting Chapter - 1 : Preparation and Presentation of Financial Statements
More informationPaper - 1 Fundamentals of Accounting
Paper - 1 Fundamentals of Accounting Chapter 1 : Accounting : An Introduction Unit 2 : Accounting Concepts, Principles and Conventions [1] What is the objective of conservatism? (a) Take all incomes and
More informationAnswer to PTP_Intermediate_Syllabus 2012_June2016_Set 1 Paper 5- Financial Accounting
Paper 5- Financial Accounting Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 LEVEL B Answer to PTP_Intermediate_Syllabus 2012_June2016_Set
More informationPREPARATION OF FINAL ACCOUNTS OF SOLE PROPRIETORS
CHAPTER 7 PREPARATION OF FINAL ACCOUNTS OF SOLE PROPRIETORS UNIT 1: FINAL ACCOUNTS OF NON-MANUFACTURING ENTITIES LEARNING OUTCOMES After studying this unit, you will be able to: Draw final Accounts of
More informationSuggested Answer_Syl12_Dec13_Paper 5 INTERMEDIATE EXAMINATION
INTERMEDIATE EXAMINATION GROUP I (SYLLABUS 2012) SUGGESTED ANSWERS TO QUESTIONS DECEMBER 2013 Paper-5: FINANCIAL ACCOUNTING Time Allowed: 3 Hours Full Marks: 100 The figures in the margin on the right
More informationFINANCIAL STATEMENTS OF SOLE PROPRIETORSHIP
CHAPTER-9 FINANCIAL STATEMENTS OF SOLE PROPRIETORSHIP Learning Objectives After studying this lesson you will be able to; State the nature of the financial statements; Distinguish between the capital and
More information5. LIQUIDATION OF COMPANIES
5. LIQUIDATION OF COMPANIES Gross Liabilities 20,00,000 3,00,000 SOLUTIONS TO ASSIGNMENT PROBLEMS Problem No. 1 Statement of Affairs of A Ltd. (in Liquidation) as at 30 th September, 2011 40,00,000 70,00,000
More informationPROFITS OR LOSS PRIOR TO INCORPORATION
CHAPTER 3 PROFITS OR LOSS PRIOR TO INCORPORATION Learning Objectives After studying this chapter, you will be able to: Account for pre-incorporation profit. Learn various methods for computing profit or
More informationCLASS XII SAMPLE PAPER ACCOUNTANCY
CLASS XII SAMPLE PAPER ACCOUNTANCY Time Allowed: 3 Hrs. Maximum Marks:80 General instructions:- (1)This question paper is divided in two parts. (2)All parts of a question should be solved at one place
More informationIssues in Partnership Accounts
14 Issues in Partnership Accounts BASIC CONCEPTS Partnership is defined as the relationship between persons who have agreed to share the profit or loss of a business carried on by all or any of them acting
More information6 Amalgamation. 1. Meaning of Amalgamation. Learning Objectives. After studying this chapter, you will be able to
6 Amalgamation After studying this chapter, you will be able to Learning Objectives Understand the term Amalgamation and the methods of accounting for amalgamations. Appreciate the concept of transferee
More informationMODEL TEST PAPER 12 (Solution)
MODEL TEST PAPER 12 (Solution) SECTION A PART I 1. (i) (a) Share of Existing Goodwill written off. (b) Share of Loss up to the date of retirement. (c) Share of Accumulated Losses up to the date of retirement.
More information10. NON TRADING CONCERNS
SOLUTIONS TO ASSIGNMENT PROBLEMS PROBLEM NO. 1 10. NON TRADING CONCERNS Balance Sheet of Mahaveer Sports Club as on 1st April, 2010 Liabilities Assets Capital fund (bal.fig.) 86,000 Library books 10,000
More informationGurukripa s Guideline Answers to May 2015 Exam Questions CA Final Financial Reporting
Gurukripa s Guideline Answers to May 2015 Exam Questions CA Final Financial Reporting Question No.1 is compulsory (4 5 = 20 Marks). Answer any five questions from the remaining six questions (16 5 = 80
More informationIPCC MAY 2016 QUESTION PAPER PAPER 1 ACCOUNTING
IPCC MAY 2016 QUESTION PAPER PAPER 1 ACCOUNTING Questions No.1 is compulsory. Candidates are also required to answer any five questions from the remaining six questions. Working notes should form part
More informationHire Purchase and Instalment Sale Transactions
11 Hire Purchase and Instalment Sale Transactions Learning Objectives After studying this chapter, you will be able to: Understand the salient features and nature of Hire purchase transactions. Journalise
More informationPaper-5: FINANCIAL ACCOUNTING
Paper5: FINANCIAL ACCOUNTING Time Allowed: 3 Hours Full Marks : 100 Whenever necessary, suitable assumptions should be made and indicate in answer by the candidates. Working Notes should be form part of
More informationFINAL CA May 2018 Financial Reporting
FINAL CA May 2018 Financial Reporting Test Code F9 Branch : Borivali Date: 17.12.2017 (50 Marks) compulsory. Note: All questions are Question 1 (9 marks) Following information is provided in respect of
More informationCA - IPCC COURSE MATERIAL. Quality Education beyond your imagination...! ACCOUNTING STANDARDS IN ITS SIMPLEST FORM. - By CA RADHA MADAM
CA - IPCC COURSE MATERIAL Quality Education beyond your imagination...! ACCOUNTING STANDARDS IN ITS SIMPLEST FORM - By CA RADHA MADAM DIRECTOR, MASTER MINDS Visit us @ www.mastermindsindia.com, Mail :
More informationTHIS CHAPTER COMPRISES OF Working knowledge of : AS 1, AS 2, AS 3, AS 7, AS 9, AS 10, AS 13, AS 14.
Star Rating On the basis of Maximum marks from a chapter On the basis of Questions included every year from a chapter On the basis of Compulsory questions from a chapter CHAPTER 1 Accounting Standards
More informationCOMPOSED BY SADIA ALI SADI (MBA)
Mega File MGT101 Fall 2011 Question No: 7 ( Marks: 1 ) - Please choose one Which of the following business publishes the Financial Statements? Sole-Proprietorship Partnership Trust Public Limited Company
More informationComposed & Solved Hafiz Salman Majeed
FINALTERM EXAMINATION Fall 2008 MGT101- Financial Accounting (Session - 4) Question No: 1 ( Marks: 1 ) - Please choose one Wages outstanding given in the trial balance will be treated as a (an): Asset
More informationUNIT 4 : AMALGAMATION AND RECONSTRUCTION
Company Accounts 3.1 UNIT 4 : AMALGAMATION AND RECONSTRUCTION (A) Write short notes on : Question 1 Amalgamation and Absorption of companies a comparison.(3 marks)(intermediate Nov. 1994) Answer In accounting
More informationCOUNCIL FOR THE INDIAN SCHOOL CERTIFICATE EXAMINATIONS P-35,36, Sector VI, Pushp Vihar, New Delhi NEW DELHI ISC ACCOUNTS
COUNCIL FOR THE INDIAN SCHOOL CERTIFICATE EXAMINATIONS P-35,36, Sector VI, Pushp Vihar, New Delhi-110017 NEW DELHI ISC ACCOUNTS Guidelines pertaining to Revised Schedule VI of Part I & II of Companies
More information6 Amalgamation of Companies
6 Amalgamation of Companies Learning Objectives After studying this chapter, you will be able to: Understand the term Amalgamation and the methods of accounting for amalgamations. Appreciate the concept
More informationSuggested Answer_Syl12_Dec2015_Paper 18 FINAL EXAMINATION
FINAL EXAMINATION GROUP IV (SYLLABUS 2012) SUGGESTED ANSWERS TO QUESTIONS DECEMBER 2015 Paper- 18 : CORPORATE FINANCIAL REPORTING Time Allowed : 3 Hours Full Marks : 100 The figures in the margin on the
More informationI.P.C.C. - ACCOUNTANCY
AVERAGE DUE DATE Q. 1. A and B, two partners of a firm, have drawn the following amounts from the firm in the year ending 31st March, 2015: A Date B Date 1 st July 500 12 th June 1,000 30 th September
More informationINTER CA MAY Note: All questions are compulsory. Question 1 (6 marks) (a) Labour Turnover by Replacement Method =
Note: All questions are compulsory. INTER CA MAY 2018 Sub: Costing & Accounts Topics: Contract Costing, Labour Cost Control, Hire Purchase and instalment Selling, Dissolution, Redemption of Preference
More informationSOLVED ANSWER ACCOUNTS PAPER-5 CA IPCC Nov. 09 (Collected by Manish Sharma, Kolkata) 1
SOLVED ANSWER ACCOUNTS PAPER-5 CA IPCC Nov. 09 (Collected by Manish Sharma, Kolkata) 1 Qn. 1. Answer the following questions : 10 x 2 = 20 (i) Goods worth 5,00,000 were destroyed due to flood in September,
More informationDISCLAIMER. The Institute of Chartered Accountants of India
DISCLAIMER The Suggested Answers hosted in the website do not constitute the basis for evaluation of the students answers in the examination. The answers are prepared by the Faculty of the Board of Studies
More informationCPT June 2017 Crash Course FUNDAMENTALS OF ACCOUNTING
CPT June 2017 Crash Course FUNDAMENTALS OF ACCOUNTING (SECTION A - 60 Marks) The dictionary is the only place where success comes before work. Hard work is the key to success, and hard work can help you
More information13. PROBLEMS ON TOTAL INCOME
No.1 for CA/CWA & MEC/CEC MASTER MINDS 13. PROBLEMS ON TOTAL INCOME SOLUTIONS TO ASSIGNMENT PROBLEMS Problem No.1 Name of the Assessee: Mr. Rajesh A.Y: 2015-2016 Computation of Taxable Income : Income
More informationCopyright -The Institute of Chartered Accountants of India
QUESTIONS Answer the following (Give adequate working notes in support of your answer): 1. (i) A firm, which was carrying on business from 1 st January 2009, gets itself incorporated as a company on 1
More information