Q1Preparation of Balance Sheet as per Schedule III format
0 marks easy
From the following particulars furnished by Ambience Ltd., prepare the Balance Sheet as on 31st March 2023 as required by Division I of Schedule III of the Companies Act, 2013. (Particulars table with trial balance provided, plus 7 additional information points)
Q2Cash Flow Statement preparation using direct method
0 marks easy
On the basis of the following information prepare a Cash Flow Statement for the year ended 31st March, 2023 (Using direct method). (13 information points provided regarding sales, receipts, purchases, expenses, share transactions, machinery, investments, dividends, and debentures)
Q3Profit/Loss prior to incorporation - apportionment
0 marks easy
The partners of Shanti Enterprises decided to convert the partnership firm into a Private Limited Company Shaurya (P) Ltd. with effect from 1st January, 2022. However, company could be incorporated only on 1st June, 2022. You are required to prepare a Profit and Loss Account showing apportionment of cost and revenue between pre-incorporation and post-incorporation periods.
Q4Accounting for bonus issue and final call on shares
0 marks easy
Following is the extract of the Balance Sheet of Abhishek Ltd. as at 31st March, 2023 (balance sheet extract provided). On 1st April, 2023, the company has made final call @ ` 2 each on 5,40,000 equity shares. Thereafter, the company decided to capitalize its reserves by way of bonus at the rate of one share for every four shares held.
Q5Rights issue valuation
0 marks easy
Beta Ltd. has decided to increase its existing share capital by making rights issue to its existing shareholders. Beta Ltd. is offering one new share for every two shares held by the shareholder. The market value of the share is ` 180 and the company is offering one share of ` 90 each.
Q6Redemption of preference shares
0 marks easy
The capital structure of Ambuja Ltd. consists of 40,000 Equity Shares of `10 each fully paid up and 2,000 8% Redeemable Preference Shares of `100 each fully paid up (issued on 1.4.2018). Undistributed reserve and surplus stood as: General Reserve ` 1,60,000; Profit and Loss Account ` 40,000; Investment Allowance Reserve is ` 20,000 out of which ` 10,000 is not free for distribution as dividend; Cash at bank amounted to ` 1,96,000. Preference shares are to be redeemed at a Premium of 10%.
Q7Redemption of debentures and DRR accounting
0 marks easy
The following balances appeared in the books of Lucky Ltd. as on 1-4-2022: (i) 10% Debentures ` 75,00,000 (ii) Balance of DRR ` 2,50,000 (iii) DRR Investment 11,25,000 represented by 10% ` 11,250 Secured Bonds of the Government of India of ` 100 each. On 31-3-2023, balance at bank was ` 75,00,000 before receipt of interest. The investments were realized at par for redemption of debentures at a premium of 10% on the above date.
Q8Investment account with bonus and rights issue
0 marks easy
On 1st April, 2022, Alpha has 1,00,000 equity shares of Beta Ltd. at a book value of ` 15 per share (nominal value ` 10 each). Additional transactions include: purchase of 20,000 shares on 20th June 2022 at ` 16 per share; bonus issue on 1st August 2022 of one share for every six shares; and right issue on 31st October 2022 of three shares for every seven shares at ` 15 per share. Alpha sold 1/3rd of entitlement to Umang for ` 2 per share and subscribed the rest on 5th November, 2022.
Q9Insurance claim - stock on date of fire calculation
0 marks easy
The premises of Animesh Ltd. caught fire on 22nd January 2023, and the stock was damaged. Stock at cost was ` 13,27,200 on 31st March, 2022 and ` 9,62,200 on 31st March, 2021. Purchases from 1st April, 2022 to the date of fire were ` 34,82,700 as against ` 45,25,000 for the full year 2021-22. Sales figures were ` 49,17,000 and ` 52,00,000 respectively. Additional information includes: goods worth ` 1,00,000 given for advertising with no entries; misappropriated unrecorded cash sales averaging ` 2,000 per week from 1st April, 2022 until 18th August, 2022; and constant rate of gross profit.
Q10Hire purchase accounting
0 marks easy
The following particulars relate to hire purchase transactions: X purchased three cars from Y on hire purchase basis, the cash price of each car being ` 1,00,000. The hire purchaser charged depreciation @ 20% on diminishing balance method. Two cars were seized by hire vendor when second installment was not paid at the end of the second year. The hire vendor valued the two cars at cash price less 30% depreciation charged under diminishing balance method. The hire vendor spent ` 5,000 on repairs of the cars and then sold them for a total amount of ` 85,000.
Q11Departmental accounts with inter-departmental transfers
0 marks easy
A firm has two departments--P and Q. Department Q makes furniture with the wood supplied by P department at its usual selling price. From the following figures prepare Departmental Trading and Profit and Loss Account for the year 2022. (Opening stock, sales, purchases, supply to Q, selling expenses, wages, and closing stock figures provided for both departments). The value of stocks in the furniture department consist of 75% wood and 25% other expenses. P Department earned Gross Profit at 15% on sales in 2021. General expenses of the business came to ` 1,10,000. FIFO method is adopted for assigning costs to inventories.
Q12Branch accounting with goods at invoice price
0 marks easy
Treadmill invoices goods to its branch at cost plus 20%. The branch sells goods for cash as well as on credit. The branch meets its expenses out of cash collected from its debtors and cash sales and remits the balance of cash to head office after withholding ` 20,000 necessary for meeting immediate requirements of cash. On 31st March, 2022 the assets at the branch were provided. During the accounting year ended 31st March, 2023 the invoice price of goods dispatched by the head office to the branch amounted to ` 2 crore 64 lakhs. Multiple transactions during the year were as follows: cash sales, credit sales, cash collected, discounts, returns, bad debts, expenses paid, new furniture purchase, and outstanding expenses.
Q13Accounts from incomplete records
0 marks easy
From the following information in respect of Mr. Aman, prepare Trading and Profit and Loss Account for the year ended 31st March, 2023 and a Balance Sheet as at that date. (Opening balances provided for stock, debtors, bills receivable, creditors, furniture, and cash balances). Receipts and payments for the year included collections from debtors, payments to creditors, proceeds of bills, proprietor's drawings, furniture purchase, securities purchase, expenses, and miscellaneous income. Additional information includes: 50% gross profit on cost, capital introduced by cheques but not recorded, purchases and sales on credit only, bills drawn on debtors with some endorsed to creditors and one dishonoured.
Q14Framework for preparation and presentation of financial stat
0 marks easy
X Ltd. has entered into a binding agreement with Alpha Ltd. to buy a custom-made machine ` 2,00,000. At the end of 2022-23, before delivery of the machine, X Ltd. had to change its method of production. The new method will not require the machine ordered and it will be scrapped after delivery. The expected scrap value is nil.
Q15AS 1 - Change in Accounting Policy
0 marks easy
ABC Ltd. was making provision for non-moving inventories based on issues for the last 12 months up to 31.3.2022. The company wants to provide during the year ending 31.3.2023 based on technical evaluation. Total value of Inventory ` 100 lakhs; Provision required based on 12 months issue ` 3.5 lakhs; Provision required based on technical evaluation ` 2.5 lakhs.
Q16AS 2 - Valuation of Inventories and scrap valuation
0 marks easy
Alpha Ltd. sells flavored milk to customers; some of the customers consume the milk in the shop run by Alpha Limited. While leaving the shop, the consumers leave the empty bottles in the shop and the company takes possession of these empty bottles. The company has laid down a detailed internal record procedure for accounting for these empty bottles which are sold by the company by calling for tenders.
Q17AS 10 - Capitalization of Property, Plant & Equipment costs
0 marks easy
A Ltd. is installing a new plant at its production facility. It has incurred these costs: Cost of the plant (cost per supplier's invoice plus taxes) ` 25,00,000; Initial delivery and handling costs ` 2,00,000; Cost of site preparation ` 6,00,000; Consultants used for advice on the acquisition of the plant ` 7,00,000; Interest charges paid to supplier of plant for deferred credit ` 2,00,000; Estimated dismantling costs to be incurred after 7 years ` 3,00,000; Operating losses before commercial production ` 4,00,000.
Q18AS 11 - Effects of changes in foreign exchange rates
0 marks easy
Explain 'monetary item' as per Accounting Standard 11. How are foreign currency monetary items to be recognized at each Balance Sheet date? Classify the following as monetary or non-monetary item: Share Capital; Trade Receivables; Investments; Fixed Assets.
Q19AS 12 - Accounting for Government Grants
0 marks easy
S Ltd. has received a grant of 18 crores from the Government for setting up a factory in a backward area. Out of this grant, the company distributed 12 crores as dividend. Also, S Ltd. received land free of cost from the State Government but it has not recorded it at all in the books as no money has been spent.
Q20AS 16 - Borrowing Costs treatment
0 marks easy
Raj & Co. has taken a loan of US$ 20,000 at the beginning of the financial year for a specific project at an interest rate of 6% per annum, payable annually. On the day of taking loan, the exchange rate between currencies was ` 48 per 1 US$. The exchange rate at the closing of the financial year was ` 50 per 1 US$. The corresponding amount could have been borrowed by the company in Indian Rupee at an interest rate of 11% per annum.