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Past papers/ Audit & Ethics/ May 2022
Paper 18 Qs
Suggested Answers · May 2022

CA Inter Audit & Ethics

This page contains all 18 questions from the CA Inter Auditing & Ethics Suggested Answers for the May 2022 attempt cycle, sourced from VSI Jaipur.

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Q.b 05 marks hard AS-20 Earnings Per Share ⚡ Try this Q →
NAT, a listed entity, as on 1st April, 2021 had the following capital structure: 10,00,000 Equity Shares having face value of ₹ 1 each and 10,00,000 8% Preference Shares having face value of ₹ 10 each. During the year 2021-2022, the company had profit after tax of ₹ 90,00,000. On 1st January, 2022, NAT made a bonus issue of one equity share for every 2 equity shares outstanding as at 31st December, 2021. On 1st January, 2022, NAT issued 2,00,000 equity shares of ₹ 1 each at their full market price of ₹ 7.60 per share. NAT's shares were trading at ₹ 8.05 per share on 31st March, 2022. Further it has been provided that the basic earnings per share for the year ended 31st March, 2021 was previously reported at ₹ 62.30.
CTTP

Worked Solution

✓ Verified

Part (i): Calculation of Basic EPS for the year ended 31st March, 2022

Step 1 – Earnings available to equity shareholders:
Profit after tax = ₹90,00,000
Less: Preference dividend = 8% × 10,00,000 shares × ₹10 = ₹8,00,000
Earnings available to equity shareholders = ₹82,00,000

Step 2 – Weighted Average Number of Shares (WANS):
Under AS-20 (Earnings Per Share), the bonus issue on 1st January 2022 is treated retrospectively (as if always outstanding), while the 2,00,000 shares issued at full market price are weighted only from their date of issue.

- Period 1 (1 Apr 2021 to 31 Dec 2021 – 9 months): Actual shares = 10,00,000; adjusted for bonus (×1.5) = 15,00,000; weighted = 15,00,000 × 9/12 = 11,25,000
- Period 2 (1 Jan 2022 to 31 Mar 2022 – 3 months): Shares = 15,00,000 (post-bonus) + 2,00,000 (new issue) = 17,00,000; weighted = 17,00,000 × 3/12 = 4,25,000

Total WANS = 15,50,000

Basic EPS for 2021-22 = ₹82,00,000 ÷ 15,50,000 = ₹5.29

Comparative figure (restated for 2020-21):
Previously reported EPS = ₹62.30. Since a bonus issue was made during 2021-22, AS-20 requires that the prior year EPS be restated by dividing by the bonus factor (1.5).
Restated Basic EPS for 2020-21 = ₹62.30 ÷ 1.5 = ₹41.53

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Part (ii): Different treatment of Bonus Issue vs. Issue at Full Market Price

Bonus Issue: No consideration is received when bonus shares are issued. The number of shares increases without any corresponding inflow of resources or economic substance. The earning capacity of the entity does not change — more shares simply represent the same underlying value. Therefore, AS-20 requires that bonus shares be treated as if they were outstanding from the beginning of the earliest period reported. The WANS for all comparative periods is adjusted retrospectively by the bonus factor.

Issue at Full Market Price: When shares are issued at full market price, the company receives fair consideration equal to the market value of the shares. Resources increase proportionately to the increase in shares. There is a real economic event — new capital comes in — so the new shares contribute to earnings only from their issue date. Accordingly, these shares are included in WANS only on a time-weighted (prospective) basis from the date of issue.

AS-20 Earnings Per Share (issued by ICAI)
PLAN

Write it like this

Time target 9 min

1The skeleton

- Start with Earnings, not shares — write 'Earnings available to equity shareholders = PAT – Preference Dividend' as your very first line; examiners are trained to see this deduction up front and missing it signals you don't know AS-20 mechanics.
- Label your WANS table by periods with dates — don't write '9 months' alone; write '1st April 2021 to 31st December 2021 (9/12)' so the examiner sees you understand WHY the split exists, not just that a split happened.
- State the bonus retrospective rule explicitly before applying it — one sentence: 'As per AS-20, bonus shares are treated as if outstanding from the beginning of the earliest period reported, and the bonus factor of 1.5 is applied to all pre-bonus figures.' This earns the concept mark even if your arithmetic slips.
- Show the restated prior-year EPS as a separate mini-calculation — write '₹62.30 ÷ 1.5 = ₹41.53 (Restated Basic EPS for 2020-21)'; candidates who bury this inside a paragraph lose the dedicated presentation mark.
- For Part (ii), anchor each treatment to the economic rationale — the examiner's model answer uses the phrase 'no consideration received' for bonus and 'resources increase proportionately' for market-price issue; mirror this language rather than just saying 'bonus is free shares'.
- Do NOT touch the ₹7.60 market price or ₹8.05 trading price for Basic EPS — call them out explicitly as 'not relevant for Basic EPS calculation' if you mention them; this shows examiner-level awareness and prevents the trap of diluted EPS bleed-in.

2Examiner-rewarded phrases

“as per AS-20, bonus shares are deemed to have been outstanding from the beginning of the earliest period reported”“earnings available to equity shareholders (after deducting preference dividend)”“weighted average number of equity shares outstanding during the period”

3Common trap

Don't fall for this

Heads up — the ₹7.60 issue price and ₹8.05 market price are bait for Diluted EPS; most candidates drag them into the Basic EPS table and lose 1-2 marks because Basic EPS uses only the actual shares issued at full market price on a time-weighted basis, with zero adjustment for any 'free element'. Keep those numbers out of Part (i) completely.

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Q.c 05 marks hard AS-29 Provisions, Contingent Liabilities and Contingent Asse ⚡ Try this Q →
Alloy Fabrication Limited is engaged in manufacturing of iron and steel rods. The company is in the process of finalization of the financial statements for the year ended 31st March, 2023 and seeks your advice on the following issues in line with the provisions of AS-29:
CTTP

Worked Solution

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Part (i): Furnace Lining Replacement

The company SHOULD provide a provision for the replacement of the furnace lining.

Analysis under AS-29: The furnace was installed on 1st April 2019, and the lining requires replacement every 5 years for technical reasons. As at 31st March 2023, nearly four years have elapsed, with replacement due in approximately one month (1st April 2024). The three recognition criteria under AS-29 are satisfied: (1) a present obligation exists (the company will definitely replace the lining), (2) an outflow is probable (virtually certain), and (3) a reliable estimate can be made based on current replacement costs.

Recommendation: Recognize a provision for the estimated cost of lining replacement. The estimated amount should be based on current market prices. Alternatively, apply the component approach by treating the lining as a separate asset component and depreciating it over the 5-year replacement cycle.

---

Part (ii): Consumer Court Case

A. Penalty of ₹50 Lakhs:

The penalty is a contingent liability, NOT a provision. Although the company received a notice for ₹50 Lakhs, the probability of the penalty being levied is only 30% (100% − 70% = 30%). Under AS-29, a provision is recognized only when the probability of outflow exceeds 50% ("more likely than not"). At 30%, this threshold is not met. Therefore, no provision should be recorded. However, since the probability is not remote, this contingent liability should be disclosed in the notes to the financial statements, describing the nature of the case, the estimated amount (₹50 Lakhs), and the assessment of probability.

B. Legal Fees of ₹5 Lakhs:

Legal fees are operational expenses recognized in the profit and loss statement regardless of the case outcome. The staggered payment terms create a balance sheet presentation issue: (1) ₹3 Lakhs (60% paid in advance) should be recorded as Prepaid legal fees (current asset), and (2) ₹2 Lakhs (40% payable after finalization) should be recorded as Accrued legal fees (current liability). The entire ₹5 Lakhs should be expensed in the P&L for the year in which the legal services are rendered. The timing of cash payments does not change the total expense recognized; it only affects the balance sheet split between prepaid and accrued amounts.

AS-29 Provisions, Contingent Liabilities and Contingent Assets
PLAN

Write it like this

Time target 9 min

1The skeleton

- Name the AS-29 classification first in each part — write 'This is a Provision / Contingent Liability / Contingent Asset' in line 1 of each part, because examiners tick the classification box before reading your reasoning.
- For Part (i), explicitly run all 3 recognition criteria — present obligation ✓, probable outflow ✓, reliable estimate ✓ — list them as numbered sub-points so the examiner sees you know the checklist, not just the conclusion.
- For Part (ii-A), flip the probability yourself on paper — write '70% chance of winning = 30% chance of outflow; AS-29 requires >50% for a provision; threshold NOT met' — showing the arithmetic signals you understand the 'more likely than not' test, not just memorized the answer.
- State the disclosure requirement explicitly for the contingent liability — write 'disclose in notes: nature, estimated financial effect, uncertainties' — this sub-point alone can fetch a half-mark that most students leave on the table.
- For Part (ii-B), split the legal fees into two balance sheet lines — Prepaid ₹3L (asset) and Accrued ₹2L (liability) — then close with 'entire ₹5L expensed in P&L'; this three-line treatment shows balance sheet + P&L awareness which is exactly what a 5-mark question tests.

2Examiner-rewarded phrases

“a present obligation exists as a result of a past obligating event”“it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation”“the contingent liability should be disclosed in the notes to accounts unless the possibility of an outflow is remote”

3Common trap

Don't fall for this

Heads up — the most dangerous mistake here is saying '70% chance of winning, so provide for it.' You need to flip it: provision is for the OUTFLOW, which is only 30% probable. Writing 'provision should be made because there is 70% chance' will cost you the entire Part (ii-A) marks even if everything else is right.

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Q.d 05 marks hard Contract Accounting ⚡ Try this Q →
Grace Ltd., a firm of contractors provided the following information in respect of a contract for the year ended 31st March, 2022: Fixed Contract Price with an escalation clause ₹ 35,000; Work Certified ₹ 17,500; Work not Certified (includes ₹ 26,25,000 for materials issued, out of which material lying unused at the end of the period is ₹ 1,40,000) ₹ 3,815; Estimated further cost to completion ₹ 17,325; Progress Payment Received ₹ 14,000; Payment to be Received ₹ 4,900; Escalation in cost is by 8% and accordingly the contract price is increased by 8%.
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Worked Solution

✓ Verified

Applicable Standard: AS 7 — Construction Contracts (Revised)

Step 1: Revised Contract Price after Escalation

Original fixed contract price = ₹35,000 (₹'000s). Escalation = 8%.
Revised Contract Price = ₹35,000 × 1.08 = ₹37,800

Step 2: Total Cost Incurred to Date

Cost of work certified + Cost of work not certified (net of unused materials):
= ₹17,500 + ₹3,815 − ₹140 (unused materials)
= ₹21,175

Note: Unused material of ₹1,40,000 (₹140 in ₹'000s) is excluded as it has not been consumed and remains an asset (closing stock on site).

Step 3: Total Estimated Contract Cost
= Cost incurred to date + Estimated further cost to completion
= ₹21,175 + ₹17,325 = ₹38,500

Step 4: Foreseeable Loss
= Total Estimated Cost − Revised Contract Price
= ₹38,500 − ₹37,800 = ₹700 (Loss)

Since the contract is expected to result in a net loss, AS 7 requires the entire foreseeable loss of ₹700 to be recognised immediately in the Statement of Profit & Loss, irrespective of the stage of completion.

Step 5: Stage of Completion
= Cost incurred to date / Total estimated cost = ₹21,175 / ₹38,500 = 55%

Step 6: Revenue Recognised in P&L
= Stage of completion × Revised contract price
= 55% × ₹37,800 = ₹20,790

Step 7: Contract Costs Recognised in P&L
Since the full foreseeable loss must be absorbed:
= Revenue recognised + Total foreseeable loss
= ₹20,790 + ₹700 = ₹21,490

Breakdown: ₹21,175 already incurred; ₹315 = provision for anticipated future loss on uncompleted work.

Step 8: Net Loss recognised in P&L = ₹700

Step 9: Balance Sheet — Gross Amount Due from Customer
= Revenue recognised − Progress billings raised
= ₹20,790 − (₹14,000 + ₹4,900)
= ₹20,790 − ₹18,900 = ₹1,890 (Asset — Amount due from Customer)

This is presented under Current Assets as per AS 7 disclosure requirements.

Summary:

Item₹ ('000s)
Revised Contract Price37,800
Revenue Recognised (P&L)20,790
Cost Recognised (P&L)21,490
Net Loss (P&L)(700)
Amount due from Customer (B/S)1,890
AS 7 — Construction Contracts (Revised) issued by ICAI
PLAN

Write it like this

Time target 9 min

1The skeleton

- Hit AS 7 + Revised Contract Price in your very first line — escalation is the opening move here; if you skip it and compute loss on ₹35,000, every number downstream is wrong and you haemorrhage marks.
- Net off unused materials before totalling cost incurred — ₹1,40,000 still lying on site is NOT consumed cost; treating it as cost is the built-in trap; one clean line showing the deduction signals examiner you spotted it.
- Check for foreseeable loss BEFORE you touch stage of completion — AS 7 demands you test loss first; writing SoC% before flagging the loss looks like you don't understand the standard's priority.
- State the full-loss recognition rule in one quoted sentence — write 'entire foreseeable loss of ₹700 is recognised immediately irrespective of stage of completion' verbatim; that phrase alone is worth a dedicated mark in a 5-marker.
- Back-calculate Contract Costs from Revenue + Loss, not from first principles — it proves you understand the mechanics (Cost = Revenue + Foreseeable Loss) and matches ICAI's own workings exactly.
- Close with the B/S line: Revenue Recognised minus Progress Billings = Amount Due from Customer, shown under Current Assets — ICAI model answers always end here; skipping B/S presentation on a contract question drops you half a mark minimum.

2Examiner-rewarded phrases

“the entire foreseeable loss shall be recognised immediately as an expense irrespective of the stage of completion”“Gross Amount due from Customer = Revenue recognised to date − Progress billings (i.e., work certified + payment due)”“as per AS 7 (Construction Contracts), revenue and costs are recognised by reference to the stage of completion using the cost-to-cost method”

3Common trap

Don't fall for this

The killer mistake here is using the original ₹35,000 contract price instead of the escalated ₹37,800 — students read 'fixed contract price' and stop, missing the escalation clause entirely; that one slip flips a loss question into a profit question and blows 3–4 marks. Secondary trap: adding unused materials (₹1,40,000) into cost incurred instead of stripping them out — the question plants them explicitly to catch you.

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Q.1 05 marks medium Accounting Standards - Prior Period Items and Extraordinary ⚡ Try this Q →
TQ Cycles Ltd. is in the manufacturing of bicycles, a labour intensive manufacturing sector. In April 2022, the Government enhanced the minimum wages payable to workers with retrospective effect from the 1st January, 2022. Due to this legislative change, the additional wages for the period from January 2022 to March 2022 amounted to ₹ 30 lakhs. The management asked the Finance manager to charge ₹ 30 lakhs as prior period item while finalizing financial statements for the year 2022-23. Further, the Finance manager is of the view that this amount being abnormal should be disclosed as extraordinary item in the Profit and loss account for the financial year 2021-22. Discuss with reference to applicable Accounting Standards.
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Q.3 15 marks very hard Consolidation of Financial Statements ⚡ Try this Q →
While Ltd. acquired 2,250 shares of Black Ltd. on 1st October, 2020. The summarized balance sheets of both the companies as on 31st March, 2021 are given below: Equity and Liabilities: Shareholder's fund: Share capital (Equity shares of ₹ 100 each fully paid up), Reserves and Surplus, General Reserve, Profit and loss account Current Liabilities: Trade payables, Due to White Ltd. Assets: Non-current assets: Property, Plant and Equipment Investments: Shares in Black Ltd. (2,250 shares) Current assets: Inventories, Due from Black Ltd., Cash and Cash equivalents Other Information: (i) During the year, Black Limited fabricated a machine, which is sold to White Ltd. for ₹ 39,000, the transaction being completed on 30th March, 2021. (ii) Cash in transit from Black Ltd. to White Ltd. was ₹ 6,000 on 31st March, 2021. (iii) Profits during the year 2020-2021 were earned evenly. (iv) The balances of Reserves and Profit and Loss account as on 1st April, 2020 were as follows: White Ltd. - Reserves ₹ 30,000, Profit and loss ₹ 15,000 Profit; Black Ltd. - Reserves ₹ 30,000, Profit and loss ₹ 10,000 Loss. You are required to prepare consolidated Balance Sheet of the group as on 31st March, 2021 as per the requirement of Schedule III of the Companies Act, 2013.
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Q.4 20 marks very hard Revenue Recognition, Profit/Loss Calculation ⚡ Try this Q →
From the above information, you are required to: (i) Compute the contract revenue to be recognized for the year ended 31st March, 2022 and (ii) Calculate the Profit / Loss for the year ended 31st March, 2022 and additional provision for loss to be made, if any, for the year ended 31st March, 2022.
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Q.4(a) 15 marks very hard Partnership - Dissolution, Fraud Detection, Balance Sheet ⚡ Try this Q →
Ajay, Vijay and Sanjay have been in partnership for a number of years, sharing profits and losses in the ratio 7:7:4 as a wholesale stationery trading business under the name "AVS Traders". On 31st March, 2021, it was found that some frauds were committed by Sanjay during the year 2020-2021. So, it was decided to dissolve the partnership business on 31st March, 2021 when their Balance sheet stood as under: [Balance sheet with Capital accounts: Ajay ₹1,80,000, Vijay ₹1,80,000, Sanjay overdraw; General Reserve ₹36,000; Trade Creditors ₹80,000; Bills payables ₹30,000; Assets: Building ₹1,90,000, Inventory ₹1,30,000, Investments ₹50,000, Trade Debtors ₹70,000, Cash & Bank ₹26,000, Sanjay's Capital (overdrawn) ₹40,000]. Additional Information: (1) Following frauds were committed by Sanjay: Investments costing ₹8,000 were sold by Sanjay at ₹11,000 and the funds were transferred to his personal account. This sale was omitted from firm's books. (2) A cheque for ₹7,000 received from trade debtors was not recorded in the books and was misappropriated by Sanjay.
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Q.5 00 marks hard Amalgamation, Journal Entries, Balance Sheet Preparation ⚡ Try this Q →
B Ltd. is to declare and pay ₹ 1 per equity share as dividend, before the following amalgamation takes place with Z Ltd. Z Ltd. was incorporated to take over the business of both A Ltd. and B Ltd. (a) The authorized share capital of Z Ltd. is ₹ 60 lakhs divided into 6 lakhs equity shares of ₹ 10 each. (b) As per Registered Valuer the value of equity shares of A Ltd. is ₹ 18 per share and of B Ltd. is ₹ 12 per share respectively and agreed by respective shareholders of the companies. (c) 10% Debentures of A Ltd. to be issued 12% Debentures of Z Ltd. at par in consideration of their holdings. (d) A contingent liability of A Ltd. of ₹ 2,00,000 is to be treated as actual liability. (e) Liquidation expenses including Registered Valuer fees of A Ltd. ₹ 50,000 and B Ltd. ₹ 30,000 respectively to be borne by Z Ltd. (f) The shareholders of A Ltd. and B Ltd. is to be paid by issuing sufficient number of fully paid up equity shares of ₹ 10 each at a premium of ₹ 10 per share. Assuming amalgamation in the nature of purchase, you are required to pass the necessary journal entries (narrations not required) in the books of Z Ltd. and Prepare Balance Sheet of Z Ltd. immediately after amalgamation of both the companies.
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Q.6(a) 05 marks medium Segment Reporting - AS-17 Profitability Test ⚡ Try this Q →
XYZ Ltd. has 5 business segments. Profit / Loss of each of the segments for the year ended 31st March, 2022 has been provided below. You are required to identify from the following whether reportable or not reportable segments, on the basis of "profitability test" as per AS-17. | Segment | Profit (Loss) ₹ in lakhs | |---|---| | A | 225 | | B | 25 | | C | (175) | | D | (20) | | E | (105) |
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Q.6(c) 05 marks medium Operating Leases Disclosure - AS-19 ⚡ Try this Q →
What are the disclosures requirements for operating leases by the lessee as per AS-19 ?
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Q.6(d) 05 marks medium Liquidation - Final Statement of Account ⚡ Try this Q →
The position of Bad Luck Limited on its liquidation on 31st March, 2022 is as follow: Issued and paid up capital: 90,000, 10% Preference Shares of ₹ 100 each, fully paid 90,000 Equity Shares of ₹ 100 each, fully paid up 30,000 Equity Shares of ₹ 50 each, ₹ 40 paid up 10,000 Equity Shares of ₹ 10 each, ₹ 4 paid up Calls in arrears are ₹ 3,00,000 and calls received in advance ₹ 2,55,000. Preference dividends are in arrears for two years. Amount left with the liquidator after discharging of all liabilities is ₹ 1,25,15,000. Articles of Association of the company provide for payment of preference dividend arrears in priority to return of equity capital. You are required to prepare the Liquidator's Final Statement of Account.
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Q.8(b)(i) 05 marks medium Banking Regulation - Non-performing assets ⚡ Try this Q →
Write a short note on Non-performing assets of a banking company.
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Q.8(b)(ii) 00 marks hard Banking Regulation - NPA Classification ⚡ Try this Q →
Case: Account A: Sanctioned limit ₹4,500 lakhs, Drawing power ₹4,200 lakhs, Amount outstanding continuously from 01.01.2021 to 31.03.2021 ₹3,600 lakhs, Total Interest debited for the period ₹288 lakhs, Total credits for the period ₹120 lakhs. Account B: Sanctioned limit ₹3,200 lakhs, Drawing power ₹2,500 lakhs, Amount outstanding continuously from 01.01.2021 to 31.03.2021 ₹2,000 lakhs, Total Interest debited for the period ₹315 lakhs, Total credits for the period ₹380 lakhs.
Dee Bank provides you the following information relating to their two cash credit accounts. State with reason whether the above cash credit accounts are NPA or not?
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Q.10 10 marks hard Partnership Dissolution - Realisation Account ⚡ Try this Q →
A partnership was being dissolved. The following assets and liabilities were realised as follows: (ii) A true creditor agreed to take over investments of the book value of ₹ 9,600 at ₹ 13,000. The rest of the trade creditors were settled at a discount of 10%. (iii) Other assets were realised as follows: Inventory ₹ 1,20,000; Building 110% of book value; Investments The rest of the investments were sold at a profit of ₹ 7,000; Trade Debtors The rest of the trade debtors were realised at a discount of 10%. (iv) The Bills payable were settled at a discount of ₹ 500. (v) The expenses of dissolution amounted to ₹ 8,060. (vi) It was found out, that realisation from Sanjay's private assets would be ₹ 7,000. You are required to prepare: (1) Realisation Account (2) Cash & Bank Account (3) Partner's Capital Account
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Q.11 10 marks very hard Capital Structure - Share Buy-back ⚡ Try this Q →
Quick Ltd. has the following capital structure as on 31st March, 2021: Share Capital (Equity Shares of ₹ 10 each, fully paid) ₹ 462 Crores; Reserves and Surplus - General Reserve ₹ 336 Crores, Securities Premium Account ₹ 126 Crores, Profit and Loss Account ₹ 126 Crores, Statutory Reserve ₹ 180 Crores, Capital Redemption Reserve ₹ 87 Crores, Plant Revaluation Reserve ₹ 33 Crores (Total Reserves ₹ 888 Crores); Loan Funds - Secured ₹ 2,200 Crores, Unsecured ₹ 320 Crores (Total ₹ 2,520 Crores). On the recommendations of the Board of Directors, on 16th September, 2021, the shareholders of the company have approved a proposal to buy-back of equity shares. The prevailing market value of the company's share is ₹ 20 per share and in order to induce the existing shareholders to offer their shares for buy-back, it was decided to offer a price of 50% over market value. The company had sufficient balance in its bank account for the buy-back of shares.
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Q.12 10 marks hard Share Buyback and Capital Funds (Banking Regulation Act) ⚡ Try this Q →
You are required to compute the maximum number of shares that can be bought back in the light of the above information and also under a situation where the loan funds of the company were either ₹ 1,680 Crores or ₹ 2,100 Crores. Assuming that the entire buy-back is completed by 31st December, 2021, Pass the necessary accounting entries (narrations not required) in the books of the company in each situation.
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Q.13 00 marks easy Capital Adequacy and Basel Norms ⚡ Try this Q →
You are required to: (i) Segregate the capital funds into Tier I and Tier II capitals, and (ii) Find out the risk-adjusted asset and risk weighted assets ratio.
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Q.16(c) 00 marks easy Employee Share Purchase Plan / Share Based Payments ⚡ Try this Q →
On 1st April 2021, a company offered 100 shares to each of its 5,000 employees at ₹ 50 per share. The employees are given 3 years to accept the offer. The shares issued under the plan shall be subject to lock-in on transfer for three years from the grant date. The market price of shares of the company on the grant date is ₹ 60 per share. Due to post-vesting restrictions on transfer, the fair value of shares issued under the plan is estimated at ₹ 56 per share and fair value per option worked out to be ₹ 6. On 31st March, 2022, 4,000 employees accepted the offer and paid ₹ 50 per share purchased. Nominal value of each share is ₹ 10. You are required to pass journal entries (with narration) as would appear in the books of the company up to 31st March, 2022.
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