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Past papers › Adv Accounting › November 2013

CA Inter Adv Accounting — Suggested Answers — November 2013

This page contains all 12 questions from the CA Inter Advanced Accounting Suggested Answers for the November 2013 attempt cycle, sourced from VSI Jaipur.

QcPartnership - Current Account with Interest Calculation
4 marks medium
Roshan has a current account with partnership firm. It has debit balance of ₹75,000 as on 01-07-2012. He has further deposited the following amounts: Date: 14-07-2012, Amount: ₹1,38,000 Date: 18-08-2012, Amount: ₹22,000 He withdraws the following amounts: Date: 29-07-2012, Amount: ₹97,000 Date: 09-09-2012, Amount: ₹11,000 Since Roshan's A/c in the ledger of the firm. Interest is to be calculated at 10% on debit balance and 8% on credit balance. You are required to prepare the current account for Roshan.
QdPartnership - Average Due Date Calculation
4 marks medium
The following transactions took place between Thick and Thin. They desire to write their current account to average due date. Purchases by Thick from Thin: 9th July, 2013: ₹7,200 14th August, 2013: ₹12,200 Sales by Thick to Thin: 15th July, 2013: ₹18,000 31st August, 2013: ₹16,500 Calculate Average Due Date and the amount to be paid or received by Thick.
QeComputerized Accounting System
4 marks medium
Explain the reasons due to which the manual accounting system was replaced by the computerized accounting system in modern time.
Q2Partnership Retirement - Asset Revaluation and Goodwill Trea
16 marks very hard
Pathak, Quereshi and Ranjeet were partners sharing profits in the ratio 7 : 5 : 3 respectively. On 31st March, 2013 Quereshi retired when the firm's Balance Sheet was as follows: Liabilities—Capital Account: Pathak ₹8,50,000, Quereshi ₹6,20,000, Ranjeet ₹3,70,000; General Reserve ₹2,25,000; Trade Creditors ₹1,13,000; Total ₹21,78,000. Assets—Land & Building ₹10,00,000; Plant & Machinery ₹4,65,000; Furniture, Fixture & Fittings ₹2,30,100; Stock ₹1,82,200; Trade Debtors ₹2,00,000 Less: Provision for Bad Debts ₹6,000 (net ₹1,94,000); Cash at Bank ₹1,06,700; Total ₹21,78,000. It was agreed that: (i) Land & Building be appreciated by 20%. (ii) Plant & Machinery be depreciated by 10%. (iii) Provision for Bad Debts be made equal to 4% of Trade Debtors. (iv) Outstanding repairs bill amounting to ₹1,500 be recorded in the books of accounts. (v) Goodwill of the firm be valued at ₹3,00,000 and Quereshi's capital account be treated with such goodwill without raising goodwill account. (vi) Half of the amount due to Quereshi be immediately paid to him by means of a cheque and the balance be treated as a loan bearing interest @ 12% per annum. You are required to:
Q3Sole Proprietorship - Profit/Loss Calculation with Adjustmen
0 marks easy
The details of Assets and Liabilities of Mr. 'A' as on 31-3-2012 and 31-3-2013 are as follows: Assets: Furniture ₹50,000 (31-3-2012), ₹— (31-3-2013); Building ₹— (31-3-2012), ₹1,00,000 (31-3-2013); Stock ₹1,00,000 (31-3-2012), ₹2,30,000 (31-3-2013); Sundry Debtors ₹60,000 (31-3-2012), ₹1,10,000 (31-3-2013); Cash in hand ₹11,200 (31-3-2012), ₹13,200 (31-3-2013); Cash at Bank ₹60,000 (31-3-2012), ₹75,000 (31-3-2013). Liabilities: Sundry Creditors ₹90,000 (31-3-2012), ₹70,000 (31-3-2013); Sundry Creditors ₹50,000 (31-3-2012), ₹80,000 (31-3-2013). (a) Mr. 'A' decided to provide depreciation on building by 2.5% and furniture by 10% for the year ended on 31-3-2013. Mr. 'A' purchased jewellery for ₹24,000 for his daughter in December 2012. He sold his car on 30-3-2013 and the amount of ₹40,000 is retained in the business.
Q4Partnership Admission - New Partner Contribution and Goodwil
0 marks easy
After Quereshi's retirement, Pathak and Ranjeet admitted Swamy as a new partner with effect from 1st April, 2013. Pathak, Ranjeet and Swamy agreed to share profits in the ratio 2 : 1 : 1 respectively. Swamy brought capital of ₹2,00,000 and ₹3,80,000 in cash (including payment for his share of goodwill as valued by the old firm). The entire amount due to Quereshi was credited to Swamy's Capital Account. Adjustments were made in the capital account for Swamy's share of goodwill.
Q4Club Accounting, Receipts and Payments Account
16 marks very hard
Highend Club appointed a new accountant for maintaining books of account. He prepared following Receipts and Payments A/c for the year ended on 31st March, 2013.
Q4Receipts and Payments Account, Income and Expenditure Accoun
16 marks very hard
Do you agree with above Receipts and Payments Account? If not, prepare correct Receipts and Payments Account and Income and Expenditure Account for the year ended 31st March, 2013 and Balance Sheet as on that date.
Q5Statement of Affairs, Profit Calculation, Cash Flow Statemen
0 marks easy
You are required to: (i) Prepare statement of affairs as on 31-3-2012 & 31-3-2013. (ii) Calculate the profit received by 'A' during the year ended 31-3-2013. (b) Surya Ltd. has provided you the following particulars. Prepare Cash Flow from Operating Activities by Indirect Method in accordance with AS 3: Profit & Loss Account of Surya Ltd. for the year ended 31st March, 2013.
Q5Balance Sheet preparation
16 marks very hard
On 31st March, 2013 Rose and Sen Ltd. provides to you the following ledger balances after preparing its Profit and Loss Account for the year ended 31st March, 2013: Credit Balances - Equity shares capital, fully paid shares of ₹10 each: ₹70,00,000; General Reserve: ₹15,49,100; Loan from State Finance Corporation: ₹10,50,000 (Repayable within one year ₹2,00,000); Loans - Unsecured (Long term): ₹8,47,000; Sundry Creditors for goods & expenses (Payable within 6 months): ₹14,00,000; Rent Receivable: ₹7,00,000; Provision for Taxation: ₹3,25,500; Proposed Dividend: ₹4,20,000; Provision for Dividend Distribution Tax: ₹71,400. Debit Balances - Calls in arrear: ₹7,000; Land: ₹14,00,000; Buildings: ₹20,50,000; Plant and Machinery: ₹36,75,000; Furniture & Fixture: ₹3,50,000; Stocks - Finished goods: ₹14,00,000; Raw Materials: ₹3,50,000; Sundry Debtors: ₹14,00,000; Advances - Short-term: ₹2,98,000; Cash in hand: ₹2,10,000; Balances with banks: ₹17,20,000; Preliminary Expenses: ₹93,100; Patents & Trade marks: ₹4,00,000. Additional information: (i) ₹20,000 fully paid equity shares were allotted as consideration for land & buildings; (ii) Cost of Building ₹25,00,000, Cost of Plant & Machinery ₹49,00,000, Cost of Furniture & Fixture ₹4,37,500; (iii) Sundry Debtors for ₹3,80,000 are due for more than 6 months.
Q10Insurance Claims
0 marks easy
A loss of profit policy was taken for ₹ 1,00,000. Fire occurred on 15th September, 2012. Indemnity period was for 3 months. Net Profit was ₹ 1,20,000 and standing charges (all insured) amounted to ₹ 43,990 for year ending 2011. Determine the Insurance Claim ?