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Past papers › Corp Laws › December 2021

CA Inter Corp Laws — Revision Test Paper (RTP) — December 2021

This page contains all 101 questions from the CA Inter Corporate & Other Laws Revision Test Paper (RTP) for the December 2021 attempt cycle, sourced from VSI Jaipur.

Q1Dissolution of Partnership Firm
0 marks easy
P and Q are partners sharing profits equally of P & Co. Trial Balance Sheet as on 31st March, 2021: Equity and Liabilities: Capital - P: ₹1,00,000, Q: ₹50,000; Current Account: ₹1,00,000; Reserves: ₹20,000; P's current account: ₹15,000; Q's current account: ₹15,000; Total: ₹2,00,000 Assets: Bank: ₹30,000; Debtors: ₹25,000; Stock: ₹40,000; Furniture: ₹15,000; Machinery: ₹15,000; P's current account: ₹15,000; Total: ₹2,00,000 The firm was dissolved on the above date. P took over 50% of the stock at 10% less on its book value, and the remaining stock was sold at a gain of 15%. Furniture and Machinery realised for ₹40,000 and ₹50,000 respectively. Bad debts of ₹1,000 were written off and further bad debts of ₹500 realised. Record the dissolution of the firm including transfer of current account balances and Bank Account in the books of the firm.
Q1Casual Vacancy, Appointment of Auditors, Penalty Provisions
0 marks easy
Case: In case of a company, the auditor was appointed at an annual general meeting. However, due to a prominent job at a distant place, the auditor resigned from the company and did not properly file the statement of reasons in the company's records with regard to his resignation.
How much fine may be punishable with under section 140(3) for non-compliance of section 140(2) of the Companies Act, 2013?
Q1Ceiling on number of audits - Section 141(3) of Companies Ac
0 marks hard
Case: A firm of Chartered Accountants, 'Mr. A', 'Mr. B' and 'Mr. C' are holding partnership in 'ABC & Associates'. 'Mr. X', 'Mr. Y' and 'Mr. Z' are holding partnership in 'XYZ & Associates'. 'Mr. X' and 'Mr. C' are holding partnership appointment as sole proprietors. They allocate the 20 audits between themselves in three ways.
A firm of Chartered Accountants holding partnership appointment, 'Mr. A', 'Mr. B' and 'Mr. C' are holding partnership in 'ABC & Associates', 'Mr. X', 'Mr. Y' and 'Mr. Z' are holding partnership in 'XYZ & Associates'. 'Mr. X' and 'Mr. C' are holding partnership appointment as sole proprietors in M and N Companies respectively. They allocate the 20 audits between themselves in three ways.
Q1Auditor appointment and disqualifications
0 marks easy
Case: Case Scenario - 1: The Aakshan Ltd., a company having sales of ₹ 10,00,00,000 in the year 2020-21, appointed CA Rajendra as the auditor. CA Rajendra is the brother of someone at Aakshan Ltd. The company had a dispute regarding payment of dues of ₹ 50 crores. CA Rajendra considers the fact that Aakshan Ltd has present obligation and a probable outflow of economic benefits. Aakshan Ltd declared dividend of ₹ 10 per equity share on 15th April 2021. Financial statements were approved on 30th June 2021. Aakshan Ltd booked designs of company valued at ₹ 10,00,000 as intangibles.
State whether appointment of CA Rajendra as audit is correct in the case
(A) Yes, it is correct in line as per Companies Act, 2013
(B) No, it is not correct in line as per Companies Act, 2013 as the relative of director is not allowed to be appointed as an auditor of the company
(C) It is correct in law as per Companies Act, 2013 because brother is not covered under
(D)
Q1Auditor eligibility and independence
0 marks easy
Whether Raiyyer & Co can accept the audit of Britannia Inc. & Co Ltd?
Q1Access Control Principles
0 marks easy
Case: Mrs MARS PLUTO ET LTD. (MPEL) is a service industry company providing data analysis and business intelligence services. The company experienced hardware failure causing serious data loss and unauthorized data disclosure. Mr. Smith was hired to provide solutions.
As suggested by Mr. Smith, the revised access control mechanisms like Password and...
(A) Asset Protection
(B) Least Privilege
(C) Moderate Privilege
(D) Most Privilege
Q1Strategic Management - Environmental Analysis and Strategy R
2 marks hard
Case: O'Farm, an organic farm products brand, has faced significant challenges due to recent amendments in Agriculture laws. The company needs to adapt its strategy and supply chain, which previously relied on international sourcing from Afghanistan, Nigeria, and Turkey. The marketing team's recent influencer partnerships lacked strategic fit with the brand's purpose, leading to inefficiencies. The sales force has lost confidence and brand equity is declining by 30% over the next 4 years.
O'Farm, an organic farm products brand has been operating in India since 2014. It has built a dedicated history of business with revenue of ₹ 20 crores in the previous year and it became one of the top 10 NGOs for organic farming. While the company operated on 'Kisan Kalyan', a farmer-friendly agro since its inception, the tough times ahead seem to call for changes. The recent amendments in Agriculture laws, though recently related to organic farming, have posed immense threat to the small agriculture farmer segment. It expects that these amendments will harm the local farming practice.
Q1(i)Q-Form case study - Strategic change
1 marks easy
The shift of Q-Form into "Rasav Kalyan" is "Upshala Seera" is a change in?
(A) Mission
(B) Vision
(C) Promotion
(D) Product
Q1(ii)Q-Form competitive advantage
1 marks easy
Which of the following was the first and major advantage for Q-Form that helped them strengthen their Leadership in the market?
(A) Economies of Scale was achieved very early on
(B) Prompt forecast of product's demand
(C) Becoming customer oriented
(D) Well negotiated purchase contracts
Q1(iii)Q-Form marketing strategy classification
1 marks easy
Q-Form's marketing strategy is an example of which of the following marketing strategy?
(A) Niche Marketing
(B) Augmented Marketing
(C) Enlightened Marketing
(D) Synchro Marketing
Q1(iv)Q-Form sustainability of competitive advantage
1 marks easy
The brand has achieved cost leadership through multiple strategies, but it would be a sustained challenge to sustain this leadership because of which of the following factors?
(A) Competitors would imitate its niche approach
(B) Marketing cost will be huge as volumes increase given its choice of marketing strategy
(C) Change in Agriculture Laws shall disrupt its supply chain time and gain
(D) Sales volume will have to outperform its own targets and even that of the competitors to sustain the advantage
Q2LLP vs Partnership
0 marks easy
Differentiate on ordinary partnership firm with an LLP (Limited Liability Partnership) in respect of the following:
Q2Accounting for liabilities and contingencies
0 marks easy
Advise company regarding the current action Aakshan Ltd will have to follow for the court case for financial statements prepared for year ending 31st March 2021
(A) create provision
(B) create revenue reserve
(C) create capital reserve
(D) Is be disclosed as contingent liability
Q2Audit procedures
1 marks easy
Mr. H and his team members carefully watched the whole process of counting of finished wooden doors by employees of Balson Limited. This is an example of which audit procedure?
(a) External Confirmation
(b) Observation
(c) Inquiry
(d) Inspection
Q2Management Cycles
0 marks easy
Case: Mrs MARS PLUTO ET LTD. (MPEL) case scenario
Mr. Smith's suggestion of solution to the problem of MPEL, refers to a strategy well depicted in the DIAGRAM 1. What do you think this strategy refers to?
(A) Six Sigma Cycle
(B) PDCA Cycle
(C) Business Process Reengineering Cycle
(D) Enterprise Resource Planning Cycle
Q2Mission vs Vision statement
1 marks easy
Orchid Care is a not-for profit eye hospital and research centre. Which one of the following statements is likely to be its main statement, rather than its mission statement?
(A) Orchid Care places patient care before all else
(B) Orchid Care will be the global leader in curing edge eye surgery
(C) Orchid Care offers the highest level of patient care throughout country
Q3Accounting for ESOPs
0 marks easy
On 1st April, 2020, XYZ Ltd. offered 100 shares to each of its 750 employees at a concessional rate. The employees were given a choice to apply for shares within 30 days of the offer. 600 employees accepted the offer and paid ₹50 per share purchased. Face value of each share is ₹10. You are required to record the issue of shares in the books of the company.
Q3Dividend accounting and financial statement treatment
0 marks easy
What is the action which Aakshan Ltd is supposed to take with regard to treatment of dividend declared while preparing and finalizing financial statements for year ending 31st
(A) recognize dividends as a liability
(B) record at the amount of dividend
(C) both a and b
(D) none of these
Q3Auditor services and restrictions under Companies Act
0 marks easy
In addition to audit of Harish Kedia Ltd., which of the services can be performed by Raiyyer & Co?
(A) design and implementation of financial information system.
(B) provide the actuarial services for valuation of gratuity payable to employees.
(C) for conducting internal audit of Harish Kadia Ltd.
(D) None of the above.
Q3Fraud and error identification
1 marks easy
What is a difference between fraud, misclassification, presentation or disclosure of a reported item in financial statements? The misappropriation is required for the item to be classified as the applicable financial reporting framework.
(a) Misappropriation
(b) Fraud
(c) Misapplication
Q3Database Types
0 marks easy
Case: Mrs MARS PLUTO ET LTD. (MPEL) case scenario
MPEL provides business intelligence solution to its clients that may require to store complex data such as images, audio and video etc. Identify the type of database that suits best for this scenario:
(A) Object Oriented Database
(B) Relational Database
(C) Network Database
(D) Hierarchical Database
Q3SWOT analysis - Market entry
1 marks easy
ABC is a marketing consultancy business. ABC's most recent corporate analysis has identified that three new businesses have recently entered its market and started providing similar services. ABC is evaluating whether investing in any of the new businesses would be a
(A) Opportunity
(B) Challenge
(C) Threat
(D) Strength
Q4Buy Back of Securities
0 marks easy
The following is the balance sheet information as at 31.03.2021: Share Capital (Equity Share Capital: ₹50,00,000 at ₹10 each fully paid up: ₹10,00,000; 10% Preference Shares of ₹100 each fully: ₹60,00,000); Reserves & Surplus; Capital Reserve: ₹1,00,000; Security Premium: ₹12,00,000; General Reserve: ₹5,00,000; Retained Earnings: ₹43,50,000; 12% Debentures: ₹12,50,000; Current Liabilities and Provisions: ₹5,00,000; Tangible Assets: ₹10,75,000; Current Assets: ₹3,00,000; Inventory: ₹2,00,000; Cash and Bank: ₹14,15,000
Q4Loan disclosures and financial statement notes
0 marks easy
State the disclosures Aakshan Ltd is required to make with respect to the long-term loan taken from Suburban Bank
(A) I, II, III and IV
(B) I, II
(C) I, III
(D) none of these
Q4First auditor appointment rules
0 marks easy
Which of the following option is correct in Law regarding appointment of first auditor of Jameshar Ltd?
(A) He cannot appoint himself as the first auditor of Jameshar Ltd.
(B) He cannot appoint himself as the first auditor of Jameshar Ltd. as he is the Managing Director of the Company.
(C) He cannot appoint himself as the first auditor of Jameshar Ltd. as he is the Subscriber in the Memorandum.
(D) He cannot appoint himself as the first auditor of Jameshar Ltd. as the first auditor is to be appointed by the Board of Directors of the Company.
Q4Audit procedures
1 marks easy
Auditor Compares Gross Profit Ratio with that of Previous year and it is discovered that there has been a fall in the ratio. This is an example of...
(a) Analytical Procedure
(b) Test of Controls
(c) Substantive test
(d) Audit Sampling
Q4Access Control Process
0 marks easy
Case: Mrs MARS PLUTO ET LTD. (MPEL) case scenario
Due to frequent hardware failures, the Access controls used to allow individuals across its system get violated. To incorporate the Access controls, these step process will be followed:
(A) Identification
(B) Authentication
Q4Porter's generic competitive strategies
1 marks easy
Trekking Plus is a small company based in the Himalayan ranges in India. It is known in the region for its hill walking sticks. Trekking Plus set specialist walking equipment in their small shop at the foot of the mountains. They do not have a website yet are able to sell their products at premium prices. Which of the following one of Porter's generic competitive strategies is most likely being employed by Trekking Plus?
(A) Cost leadership
(B) Differentiation
(C) Focused cost leadership
(D) Focused differentiation
Q5Debenture and Preference Share Issuance with Conversion
0 marks easy
JRTI Limited (Bond Company) recently made a public issue in respect of which the following information is available: The shareholders adopted the following resolution on 31st March, 2021: (1) Buy back 25% of the paid-up capital and it was decided to offer a price of 20% over market value of company within 5 to 10 years. (2) To finance the buy-back of shares, company: (i) Issues 3,000, 14% debentures of ₹ 100 each. (ii) Issues 2,500, 10% preference shares of ₹ 100 each. (3) Underwriting Commission: 2% (4) Number of debentures applied for: 75,000 Conversion portion for debentures: 40%, date of conversion to equity if 6 months from the date of closing of issue is 31st October 2020. You are required to pass the necessary journal entries to record the above transactions.
Q5Intangible assets and accounting standards
0 marks easy
State which of the following statement is true with respect to recording an intangible in the books
(A) Intangible is correctly booked by the company
(B) Intangible is wrongly booked by the company as an intangible cannot be booked as
(C) Intangible is wrongly booked by the company as an intangible cannot be booked as per the auditing standards of India
(D) Intangible is wrongly booked by the company as an intangible cannot be booked as per the Companies Act, 2013
Q5Auditor remuneration determination
0 marks easy
Regarding Jameshar Ltd., about the amount of remuneration and who can fix the fees?
(A) Anyone can fix the remuneration of auditor and there is no limit on the amount of remuneration.
(B) The remuneration of the auditor of a company shall be fixed in general meeting if not any limitation.
(C) The Board of Directors may fix remuneration of the first auditor appointed by it. There is no limit on the same.
(D) The Board of Directors may fix the remuneration of the first auditor appointed by it. There is no limit on the same.
Q5Audit governance
1 marks easy
The persona with responsibility for overseeing the strategic direction of the entity and obligations related to the accountability of the entity are:
(a) management
(b) those charged with governance
(c) audit committee
(d) internal audit
Q5Reliability of Audit Evidence (SA 500)
0 marks easy
Reliability of Audit Evidence: As per SA 500 on 'Audit Evidence', the reliability of the information to be used as audit evidence and therefore of the audit evidence itself is affected by its source and its nature and the circumstances under which it is obtained. Explain the following guide principles about the reliability of various kinds of audit evidence: (i) The reliability of audit evidence is increased when it obtains from independent sources outside the entity; (ii) The reliability of audit evidence that is generated internally is increased when the related controls, including those over its preparation and maintenance, imposed by the entity are effective; (iii) Audit evidence obtained directly by the auditor (for example, observation of the application of a control) is more reliable than audit evidence obtained indirectly (for example, inquiry about the application of a control); (iv) Audit evidence provided by original documents is more reliable than audit evidence provided by photocopies or facsimiles, or documents that have been scanned.
Q5Network Topology - STAR Network
0 marks easy
Mr. Sharma's network by ML Smith has high cost of installation and maintenance. The company decides to create a STAR network. Which linkages need to be removed from DIAGRAM 2?
(A) Linkages between: C1-C2, C2-C3, C3-C4, C4-C5
(B) Linkages between: C1-C2, C2-C3, C3-C4, C4-C1
(C) Linkages between: C1-C2, C2-C3, C3-C4, C4-C1
(D) Linkages between: C3-C4, C3-C4, C4-C1
Q5Organizational authority levels - Capital investment approva
1 marks easy
A Ltd has recently decided to install a new IT tool to improve the efficiency of its payroll function. A ltd. believes this will reduce the cost of running the payroll system by 20%, although it is unclear whether this will be achieved. The installation will cost ₹50,00,000. What level of authority should be required to approve this investment in the new IT tool?
(A) Corporate level
(B) Functional level
(C) Business level
(D) Strategic level
Q6Amalgamation of Companies - Share Issuance Calculation
0 marks easy
Heera Ltd and Rita Ltd agreed to amalgamate their business. The scheme envisaged a share capital equal to the combined capital of Heera Ltd and Rita Ltd for the purpose of recording of financial position under AS 14. Balance Sheet as on 31st March, 2021: | | Heera Ltd | Rita Ltd | | Property, plant and Equipment | ₹ 7,20,000 | ₹ 10,80,000 | | Investments | ₹ 2,40,000 | ₹ 2,00,000 | | Trade receivables | ₹ 2,80,000 | ₹ 1,80,000 | | Cash at Bank | ₹ 3,00,000 | - | | Share Capital | ₹ 6,00,000 | ₹ 8,45,000 | | Reserves and Surplus | ₹ 10,20,000 | ₹ 6,00,000 | | Bank Overdraft | - | ₹ 4,40,000 | You are required to calculate the number of shares issued to Heera Ltd and Rita Ltd and the value of share for the purpose of consolidation in the books of HR Ltd.
Q6Joint auditor appointments
0 marks easy
To partly audit books of accounts of WZ Limited for the financial year 2020-21 two different firms of Chartered Accountants namely MH and Associates and HR and Associates were appointed. Choose the correct option regarding the same.
(A) Branch Auditors of WZ Limited.
(B) Individual Auditors of WZ Limited.
Q6Auditing concepts and procedures
8 marks hard
State with reason (in short) whether the following statements are true or false:
Q6Audit Evidence and Controls
0 marks easy
Discuss the various points which auditor needs to consider in determining whether it is appropriate to use audit evidence about operating effectiveness of controls obtained in previous audits and if so, the length of the time period that has passed since testing.
Q6Audit Evidence about Operating Effectiveness of Controls
0 marks easy
In determining whether it is appropriate to use audit evidence about the operating effectiveness of controls, the auditor should consider the following: (i) The characteristics of the control, including whether it is a manual or automated. (ii) The effectiveness of general IT controls. (iii) The effectiveness of the control and its application by the entity, including the nature and extent of deviations in the controls over their preparation and maintenance.
Q6Business Process Management & IT
0 marks easy
QEF Limited is planning to implement Business Process Management System (BPMS) in its enterprise. List both advantages and limitations of the flowchart as a tool for presenting the workflow.
Q6Strategy implementation challenges
1 marks easy
An organization during its strategy planning engaged entire scenarios and created a strategy framework. But in mean time after implementation, it realized that its framework is not effective in certain unique scenarios. That is the reason for the same?
(A) Strategy is "pretty predictive and fairly reactive"
(B) Lack of analysis and proper planning
Q7Engagement Team Direction and Supervision
0 marks easy
The audit, timing and extent of the direction and supervision of engagement team members is influenced by the nature of their work and is high-risk areas. Explain those factors.
Q7Control Assessment and Audit Planning
0 marks easy
(a) Whether the lack of a change in a particular control poses a risk to changing circumstances; and (b) The risks of material misstatement and the extent of reliance on the control. Explain the following considerations: 1. The nature, timing and extent of the direction and supervision of engagement team members and review of their work very depending upon various factors, including risk identified; 2. The area of the audit; 3. The assessed risks of material misstatement (for example, an increase in the assessed risk of material misstatement for a given area of the audit ordinarily requires that engagement be extended or more extensive procedures to be performed); 4. The capabilities and competence of the individual team members performing the work. (ii) Planning an audit involves establishing the overall audit strategy for the audit. Allocate planning benefits the audit of financial statements in several ways, including the following: • Helping the auditor to devote appropriate attention to important areas of the audit; • Helping the auditor identify and resolve potential problems on a timely basis; • Helping the auditor properly organize and manage the audit engagement so that it is performed in an effective and efficient manner; • Assisting in the selection of engagement team members with appropriate levels of capabilities and competence and the proper assignment of work to them; • Facilitating the direction and supervision of engagement team members and the review of their work.
Q7Business Environment
0 marks easy
Describe the advantage of using Easy Access and its mark have managed to persuade the Government Acquisition and Regulatory Commission? What do you think that by doing Easy Access and Its mark has an advantage in some way to fight the Government? Explain.
Q8Materiality in Auditing
0 marks easy
Discuss relevant material to which the related documents for all situations cannot be so defined precisely and an important in-situation material in the situation may not be material in other situation. Explain.
Q8Materiality in Planning and Performing an Audit (SA 320)
0 marks easy
Materiality is an important consideration for an auditor to evaluate whether the financial statements reflect a true and fair view or not. SA 320 on 'Materiality in Planning and Performing an Audit' states that when planning the audit, the auditor considers what would make the financial information materially misstated. The auditor's consideration of materiality and its application is a matter of professional judgment, and is affected by the auditor's perception of the financial information needs of users of the financial statements. When planning the audit, the auditor should establish overall materiality. The auditor should discuss with those charged with governance about the level of overall materiality determined and the amount or amounts below which misstatements identified during the audit would ordinarily be regarded as clearly trivial. At the conclusion of the audit, the auditor should evaluate whether the aggregate of uncorrected misstatements identified during the audit, both individually and in the aggregate, is material. Explain the relationship with audit risk while conducting an audit. When planning the audit, the auditor considers what would make the financial information materially misstated. The auditor's assessment helps the auditor determine the nature, timing and extent of audit procedures.
Q8Information Systems and IT Fundamentals - Operating System
0 marks easy
Discuss various activities that are executed by Operating System so that it is able to manage the hardware and provide the user with an interface to various application programs.
Q8Business Environment
0 marks easy
What types of information relating to macro environment would you need to determine internal organizational or financial?
Q9Capital Reorganization, Journal Entries, Balance Sheet Recon
0 marks easy
Given the internal reconciliation scheme of Property, Plant and Equipment (₹43,750), Investments (Market value ₹3,325 thousand), Current Assets including Bank Balance (₹35,000), and Profit and Loss Account Dr. balance (₹2,100), with conditions: (i) All existing equity shares reduced to ₹4 each (ii) Outstanding shares issued at ₹4 per share (iii) Debenture holders surrender debentures for ₹100 to receive shares and exchange for fresh shares at increased interest rate of 5% (iv) Investments brought to market value (v) Current Liability settled at ₹4,25,000 out of current Assets (vi) Balance of Profit and Loss Account written off and balance of Current Assets used to acquire land valued at ₹1,57,00,000 (vii) Amount adjusted towards equity shares of ₹4 each in full settlement. Property, plant and equipment to be written down to 80%. You are required to give journal entries for the above transactions and prepare capital reorganisation account.
Q9Audit Sampling
0 marks easy
When obtaining audit evidence, the auditor shall consider the purpose of the audit procedure and the characteristics of the population from which the sample will be drawn. Explain in detail.
Q9Business Policy and Strategic Management
0 marks easy
As the director of a marketing company providing consultancy to a range of business clients. Easy Assess and its mark have managed to persuade the Government Acquisition and Regulatory Commission to comply with suppliers and increase competition and involvement large commitments of resources. He also said that his decisions decide the future of the organization. Where will you place M. Marks in the organizational hierarchy.
Q10Share Underwriting, Allocation of Liability
0 marks easy
Undermentioned parties had underwritten the following shares: A & Co 72,000 Equity Shares, B & Co 30,000 Equity Shares, C & Co 18,000 Equity Shares. Firm applications from underwriters: A & Co 8,000 Equity Shares, B & Co 12,000 Equity Shares, C & Co 3,000 Equity Shares. Market applications were for 60,000 Equity Shares. You are required to show the allocation of liability. Workings will be considered as a part of your answer.
Q10Sampling Techniques
0 marks easy
In estimating the characteristics of the population from which he will to draw the auditor may determine that stratification or value-weighted selection technique is appropriate. Decide the auditor on the use of stratification and value-weighted sampling techniques. Explain in detail.
Q10Telecommunication and Networks - E-Commerce
0 marks easy
It is becoming very important for service providing companies to promote e-commerce website. List all the benefits associated with e-Commerce application and implementation.
Q10Business Policy and Strategic Management
0 marks easy
How strategic decisions differ in nature from other routine decisions taken in day-to-day working of an organization? Explain.
Q11Liquidation of Company, Final Statement of Account
0 marks easy
S. Premises, Plant, Tools Ltd. on its liquidation has the following: Premises ₹1,25,000, Machinery ₹75,000, Unsecured Creditors ₹99,000, Liquidation Expenses ₹1,000, and Liabilities include 2% commission on the amount realised from calls made on shares. You are required to prepare Liquidator's Final Statement of Account if the total assets realised was ₹2,30,000.
Q11Telecommunication and Networks - Network Security
0 marks easy
Discuss various categories of threats associated with Network.
Q11Strategic Analysis
0 marks hard
Case: Ajanta & Sons Limited manufactures security alarms for high income clients. Analyze two strategic options using Ansoff's matrix.
Ajanta & Sons Limited are the manufacturers of domestic household security alarms for high income group clients residing in India. The company is currently analyzing two strategic options Option 1: Selling the same alarms although with different coverings to smaller and low income group households at a lower price. Option 2: Development of new, more sophisticated alarms and a wide range of security features for premium customers and offering them to high income group clients for higher prices. The senior management team of Ajanta & Sons Limited are keen to analyze the two options using Ansoff's matrix.
Q12Insurance Revenue Account, Marine Insurance Business
0 marks easy
Prepare Revenue Account of Safe Insurance Co. engaged in marine insurance business for the year ended 31st March, 2021. Data: Premium Received (Direct Business ₹3,00,000, Re-insurance ₹38,000), Receivable 1st April 2020 (Direct ₹10,000, Re-insurance ₹1,600), Receivable 31st March 2021 (Direct ₹16,000, Re-insurance ₹1,600), Premium Paid (Re-insurance ₹3,000), Premium Payable 1st April 2020 (Re-insurance ₹1,000), Premium Payable 31st March 2021 (Re-insurance ₹2,200), Claims Incurred (Direct ₹1,54,000, Re-insurance ₹14,000), Payable 1st April 2020 (Direct ₹75,000, Re-insurance ₹1,500).
Q12Departmental Accounts
0 marks hard
Case: Mrs. Helen's a Departmental Store having three departments X, Y and Z with financial data for year ended 31st March, 2021
Mrs. Helen's a Departmental Store having three departments X, Y and Z. The information regarding three departments for the year ended 31st March, 2021 are given below: | Particulars | X | Y | Z | |---|---|---|---| | Opening Stock | 8,000 | 12,000 | 10,000 | | Purchases | 16,000 | 44,000 | 22,000 | | Debtors at end | 7,500 | 5,000 | 5,000 | | Sales | 90,000 | 67,500 | 45,000 |
Q12Trading Account, Profit and Loss Account, Provisions and Con
0 marks easy
In the Books of Mrs Hero - Department: Trading and Profit and Loss Account for the year ended 31st March, 2021
Q12Business Information Systems
0 marks hard
Mr. Atul is an audit head of the XYZ bank providing Credit Card. He is required to prepare a document to be launched in the public domain explaining to its clients about processing of the credit card. Prepare the contract for his document.
Q12Strategic Analysis
0 marks easy
Explain the concept of Experience Curve and highlight as relevant in strategic management.
Q13Accounting for Branches - Debtors System
0 marks hard
Case: Le & Co labour has a branch in Patna to which goods are sent @ 20% above cost. Branch doesn't maintain any books of accounts but sends monthly returns to the head office.
Le & Co labour has a branch in Patna to which goods are sent @ 20% above cost. The following transactions are related to Patna branch for the year ended 31st March 2020 and the branch has to remit all cash received into the bank account of Head office. Branch doesn't maintain any books of accounts but sends monthly returns to the head office. Following data details are given for the year ended 31st March, 2020: - Goods received from Head office at Invoice Price: ₹ 4,00,000 - Goods returned to Head office at Invoice Price: ₹ 30,000 - Cash sales for the year 2019-20: ₹ 92,000 - Credit Sales for the year 2019-20: ₹ 3,12,500 - Stock at Branch as on 01-04-2019: ₹ 36,000 - Sundry Debtors at Patna branch as on 01-04-2019: ₹ 44,000 - Cash received from Debtors: ₹ 2,19,000 - Discount allowed to Debtors: ₹ 3,750 - Goods returned by customer at Patna Branch: ₹ 7,600 - Bad debts written off: ₹ 2,750 - Amount received from Bad debts previously written off as Bad Debts: ₹ 500 - Salaries & wages at Branch: ₹ 36,000 - Rent Expenses at Branch: ₹ 4,600 - Stock at Branch as on 31-31-2020 at cost price: ₹ 62,500
Q13Strategic Planning
0 marks hard
Case: Leatherne Ltd. manufactures footwear and leather products. Discuss growth strategy and business expansion approach.
Leatherne Ltd. was started as a leather company to manufacture footwear. Currently, they are in the manufacturing of footwears for males and females. The top management desires to diversify into allied products manufacturing leather bags for males and females such also various other leather items. And can the senior management would use a growth strategy called business expansion to pursue more machines to manufacture leather bags for males and females, briefly even the top management the strategy noted by the top management of Leatherne Ltd.
Q14Framework for Preparation and Presentation of Financial Stat
0 marks easy
State the bases of measurement of Elements of Financial Statements. Explain in brief.
Q14Vouching and Valuation
0 marks easy
APG Ltd is a company engaged in the production of goods during the year under current assets are supplies. They are issued as first in first out. They Now accounting is on profit on sale of gold which in sold as?
Q14Business Process Automation through Application Software - G
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ABC Company is interested in IT Automation in ABC planning that uses Grid Computing to mine data from gaming hospitals for fraud detection. As an automation expert, plan the perspective of implementation using Grid Computing.
Q14Strategic Planning
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Explain the term Merger and Acquisition as a growth strategy. Differentiate between both strategies as concluded by any organization.
Q15AS 4 Contingencies and Events occurring after the Balance Sh
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Case: HN Ltd operates in business into various segments. Its financial year ended on 31st March, 2020 and the financial statements were approved by their approving authority on 14th June, 2020.
HN Ltd operates in business into various segments. Its financial year ended on 31st March, 2020 and the financial statements were approved by their approving authority on 14th June, 2020. The following material events took place:
Q15AS 4 - Contingencies and Events Occurring After Balance Shee
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Treatment as per AS 4: Contingencies and Events Occurring After the Balance Sheet Date
Q15Audit Procedures for Valuation
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Write the audit procedures to be performed as an auditor for valuation (assertion) of following:
Q15Business Process Automation - Control and Risk Management
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In a company, there are some petty needs to be sanctioned for transport each day among various laboratories system. Identify the control issues and explain the control failures in its purview.
Q16AS 5 - Net Profit or Loss for the Period, Prior Period Items
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(a) There was a major theft of stores valued at ₹ 10 lakhs in the preceding year which was identified only during current financial year (2020-2021). How will you deal with this information in preparing the financial statements of R.S Ltd for year 31-3-21? (b) Management decided to pay pension to those employees who have retired after completing 5 years of service in the organization. Such employees will get pension equal to 1 month's salary for each year of service subject to a maximum of 12 months' salary. The company is a new organization. Explain whether this will constitute a change in accounting policy or not.
Q16AS 5 (Revised) and AS 6 - Prior Period Items and Accounting
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Prior Period Items and Changes in Accounting Policy
Q16Statutory Audit - Eligibility of Auditors
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Under the provisions of Section 141(3) of Companies Act, 2013 along with relevant rules, a person or a firm who has 'business relationship' with a company shall not be eligible to be appointed as auditor of that company. In this context, discuss meaning of term 'business relationship'.
Q17AS 11 - The Effects of Changes in Foreign Exchange Rates
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M/s J.S Ltd purchased a plant for US $ 1,00,000 on 15 December 2020, payable after three months. The payment was due on 15 March 2021 at ₹ 65 per dollar. Exchange rate per dollar on 31 December was ₹ 63.65. How will you recognise the profit or loss on the forward contract in the books of Mosp Ltd. for year 2017?
Q17Foreign Exchange / Forex Transactions
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Forward Rate: ₹49.15, Lease Spot Rate: (₹48.85), Premium on Contract: ₹2.30, Contract Amount: USD 1,00,000 on year ended 31.3.2021
Q17Auditor's Rights and Duties
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Discuss significance of a company auditor's eligibility to obtain information and explanation from officers of the company.
Q17Strategy Implementation and Control
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Case: Connect Group mobile handset manufacturer faced market challenges due to failure in identifying trends. Explain steps to identify change and adapt.
Connect Group was one of the leading makers of the mobile handsets till a few years ago. The company wanted to expand into newer markets and new features but failed to identify current trends which eventually led to its downside. Which would have helped Connect Group to identify the change, adapt and survive? Explain the steps to initiate the change.
Q18AS 20 - Intangible Assets
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AB Limited is a company engaged in manufacturing industrial packaging equipment. As part of its future project based R&D arrangement entered into with its subsidiary MBLab, the subsidiary will provide equipment to AB Limited and the respective division of the subordinates such that, at the end of the period, the reserve constitutes of least half the value of such debentures. As such appropriate disclosure are not available for the compilation of Basic EPS, is this treatment correct as per provisions of AS 20?
Q18EPS (Earnings Per Share) Calculation and Depreciation
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The depreciation made to such a mandatory reserve created for the redemption of debentures should be included in the net profit attributable to equity shareholders for the purpose of EPS calculation. Evaluate the correct treatment and the impact on earnings per share.
Q18Companies (Auditor's Report) Order, 2018
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Discuss the implications the auditor should ensure under CARO 2018 related arrangements.
Q18Strategy Implementation and Control
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How can you differentiate between transformational and transactional leaders?
Q19AS 20 - Intangible Assets
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A company is sharing an intangible asset of ₹ 88 lakhs as on 01.04.2021. This asset was developed from scratch during FY 2015-2017 on the same sets acquired from the asset file with data and thus all useful of 15 years on straight line basis. Comment on the accounting treatment of the above with reference to the relevant Accounting Standard.
Q19Depreciation of Leasehold Property and Intangible Assets
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The depreciable amount of an intangible asset should be allocated over its estimated useful life. Discuss the treatment of depreciation of leasehold property with reference to AS 26 and the provisions regarding the maximum period of 15 years as specified.
Q19Key Audit Matters
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As an auditor of listed company, what are the matters that the auditor should keep in mind while determining 'Key Audit Matters'?
Q19Reaching Strategic Edge
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Elaborate the following processes that guide the Total Quality Management Philosophy: (i) Universal Quality Responsibility (ii) Prevention of Quality Defects (iii) Continuous Improvement and Learning
Q20AS 28 - Provisions, Contingent Liabilities and Contingent As
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(a) An advisory has been communicated and for several years. It does not cover up any further claims or counter-claims. (b) Likely similar cases in progress as of March 2021, it is virtually certain that a fine requiring a clean-up of land already contaminated will be enacted shortly after the year end. Is provisioning presently necessary considering the circumstances in line with provisions of AS 28?
Q20Statutory Audit - System Implementation
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Delightful Ltd is a company engaged in the production of similar balls. During the FY 2022-23, the company transferred its accounts to computerized system. XBRL from manual and as such, from has upgraded to an advanced ERP cum SAP system. there were many errors in the accounting during the transition period. As such the statutory auditors of the company were not able to extract correct data and reports from the system for preparation of year-end audit report. As the finance team and the management of the company were not supportive in providing the requisite information
Q20Reaching Strategic Edge
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Describe briefly the use of Strategic Management techniques in Educational Institutions
Q21Share Buy-back Restrictions
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A Company is prohibited to buy-back its own shares or other specified securities under certain circumstances. Discuss.
Q21Prohibition for Buy Back - Companies Act 2013
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Prohibition for buy back in certain circumstances: As per provisions of Section 70 of the Companies Act 2013-
Q23Advantages of Audit in Partnership
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Advantages of Audit of Accounts of a Partnership: On broad considerations, the advantages of audit of accounts of a partnership could be stated as follows: