|Total No. of Questions— 6]||[Total No. of Printed Pages—7|
|Time Allowed : 3 Hours||Maximum Marks : 100|
|Answers to questions are to be given only in English except in the cases of candidates who have opted for Hindi medium. If a candidate who has not opted for Hindi medium, answers in Hindi, his answers in Hindi will not be valued.|
|Answer all Questions|
|Working notes should form part of the answer.|
Wherever applicable, suitable assumptions should be made by the candidate.
|1.|| On 31st March, 2004 Bee Ltd. became the holding company of Cee Ltd. and Dee Ltd. by acquiring 450 lakhs fully paid shares in Cee Ltd. for Rs. 6,750 lakhs and Rs. 240 lakhs fully paid shares in Dee Ltd. for Rs. 2,160 lakhs. On that date, Cee Ltd. showed a balance of Rs. 2,550 lakhs in General Reserve and a credit balance of Rs. 900 lakhs in Profit and Loss Account. On the same date, Dee Ltd. showed a debit balance of Rs. 360 lakhs in Profit and Loss Account while the Preliminary Expenses Account showed a balance of Rs. 30 lakhs. |
After one year, on 31st March, 2005 the Balance Sheets of three companies stood as follows :
The following points relating to the above mentioned Balance Sheets are to be noted :
You are required to prepare a consolidated Balance Sheet of Bee Ltd. and its subsidiaries Cee. Ltd. and Dee Ltd. as at 31st March, 2005.
|2.||(a)|| On the basis of the following Profit and Loss Account of Zed Limited and the supplementary information provided thereafter, prepare Gross Value Added statement of the company for the year ended 31st March, 2005. Also prepare another statement showing reconcidation of Gross Value Added with Profit before Taxation. |
Profit and Loss Account of Zed Limited for the year ended 31st March, 2005
|(b)|| The Institute for Global Management Research maintains a combined Development Fund respect of which the following information is available for the year ended 31st March, 2005. |
The USD grant has been received into a bank account in USA on 29.3.05 and is expected to be utilised there from for purchases to be made abroad. The rate of exchange on 31.3.05 is 1 USD = Rs. 44. You are required to prepare
— A Statement showing changes in the Development Fund for the year, and
— Balance Sheet of the Development Fund as at 31.3.2005.
|3.|| The following abridged Balance Sheet as at 31st March, 2005 pertains to Glorious Ltd. |
You are required to calculate the following for each one of three categories of equity shares appearing in the above mentioned Balance Sheet :
|4.||(a)|| Venus Ltd. has an asset, which is carried in the Balance sheet on 31–3–2005 at Rs. 500 lakhs. As at that date the value in use is Rs. 400 lakhs and the Net Selling price Rs. 375 lakhs. |
From the above data :
|(b)||Himalya Ltd. in the past three years spent Rs. 75,00,000 to develop a Drug to treat Cancer, which was charged to Profit and Loss Account since they did not meet AS–8 criteria for capitalisation. In the current year approval of the concerned Govt. Authority has been received. The Company wishes to capitalise Rs. 75,00,000 and disclose it as a prior period item. Is it correct? Give reason for you views.||5||(0)|
|(c)||Bottom Ltd. entered into a sale deed for its immovable property before the end of the year. But registration was done with registrar subsequent to Balance Sheet date. But before funalisation, is it possible to recovnise the sale and the gain at the Balance Sheet date? Give your view with reasons.||5||(0)|
|5.||(a)||In view of the provisions of Accounting Standard 25 on interior. Financial Reporting. On what basis will you calculate, for an interim period, the prevision in respect of defined benefit schemes like pension, gratuity etc. for the employees?||5||(0)|
|(b)||Briefly describe the significance of Environmental accounting.||5||(0)|
|(c)||A Company has its share capital divided into shares of Rs. 10 each. On 1st April, 2004 it granted 10,000 employees stock options at Rs. 40, when the market price was Rs. 130. The options were to be exercised between 16th December, 2004 and 15th March, 2005. The employees excerised their options for 9,500 shares only; the remaining options lapsed. The company closes its books on 31st March every year. |
Show Journal Entries.
|6.||(a)|| While closing its books of account on 31st March, 2005 a Non–banking Finance Company has its advances classified as follows : |
Calculate the amount of provisions, which must be made against the Advances.
|(b)||In May 2004 Speed Ltd. took a bank loan to be used specifically for the construction of a new factory building. The construction was completed in January, 2005 and the building was put to its use immediately thereafter. Interest on the actual amount used for construction of the building till its completion was Rs. 18 lakh, whereas the total interest payable to the bank on the loan for the period till 31st March, 2005 amounted to 25 lakh. |
Can Rs. 25 lakh be treated as part of the cost of factory building and thus be capitalised on the plea that the loan was specifically taken for the construction of factory building?
|(c)||Distinguish between "Timing differences" and "Permanent differences" referred to in AS–22 on accounting for Taxes, giving 2 examples of each.||(0)|