|Total No. of Questions— 6]||[Total No. of Printed Pages—6|
|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|
|Wherever appropriate suitable assumptions should be made by the candidate.|
|Working notes should form part of the answer.|
|1.|| From the following Balance Sheet and information, prepare Cash Flow Statement of Ryan Ltd. for the year ended 31st March, 2003: |
|2.|| Ram, Rahim and Robert are partners of the firm 'RR Traders' for the past 5 years. The partners decided to dissolve the firm consequent to insolvency of partner Robert in October, 2002. The Balance Sheet of the firm as on 31.10.2002 is furnished below. They share profit and losses equally : |
The Partners Ram and Rahim decided to form a new firm 'RR Enterprises' and takeover all the assets and liabilities of the firm at values given below:
|3.|| Ram commenced business on 1.7.1997 with a capital of Rs. 2,00,000. On 31st March, 2003 an adjudication order for insolvency was made against him. Following are the other details available relating to his business as on 31.3.2003 : |
He maintained books upto 31.3.2000 and profit upto 31.3.2000 was Rs. 1,40,000.He did not maintain books from 1.4.2000 onwards. He has been drawing Rs. 4,000 per month and goods worth Rs. 1,500 per month uniformly from April, 2000 onwards.
Prepare statement of affairs and deficiency account.
|4.||(a)|| Show adjustment Journal entry in the books of Head Office at the end of April,2003 for incorporation of inter–branch transacitons assuming that only Head Office maintains different branch accounts in its books. |
All working should form part of the answer.
|(b)||A acquired on 1st January,2003 a machine under a Hire–Purchase agreement which provides for 5 half–yearly installments of Rs. 6,000 each, the first installment being due on 1st July, 2003. Assuming that the applicable rate of interest is 10% per annum, calculate the cash value of the machine. All working should form part of the answer.||8||(0)|
|5.|| Emergent Ltd. was incorporated on 1st April, 2002 to take over the running business of Mr. A. |
The purchase consideration was satisfied by allotment of :
The company issued a Prospectus for issuing 50,000 equity shares of Rs. 10 each, at a premium of Rs. 2 per share and 20,000 10% Redeemable Preference shares of Rs. 10 each, at par. The entire amount in respect of the issue was received by 30th June, 2002 except final call of Rs. 3 per share on 2,500 shares issued to Mr. X, a director. Underwriting commission @ 2.5% on nominal value of equity shares and @ 3% on preference shares were paid to a merchant banker.
The preliminary expenses were estimated at Rs. 75,000 in the prospectus but the actual expenses incurred was as under :
The Company purchased a plot of land for Rs. 1,00,000. Further, it advanced Rs. 2,50,000 for construction of office building and Rs. 3,50,000 to a supplier, being 35% of contract price for supply of machinery. A part of the investments taken over from Mr. A was sold for Rs. 80,000 (Rs. 5,000 in excess of their book value).
Prepare a Receipts and Payments Account and other relevent financial information to be included in the Statutory Report pursuant to Section 165 of the Companies Act, 1956 in respect of Emergent Ltd. made up to 30th June, 2002.
|6.||Attempt any four of the following questions:||4x4=16|
|(a)||X Co.Ltd. charged depreciation on its asset on SLM basis. For the year ended 31.3.2003 it changed to WDV basis. The impact of the change when computed from the date of the asset coming to use amounts to Rs. 20 lakhs being additional charge. |
Decide how it must be disclosed in Profit and Loss Account. Also, discuss, when such changes in method of depreciation can be adopted by an enterprise as per AS–6.
|(b)||Decide when research and development cost of a project can be defered to future periods as per AS–8.||(0)|
|(c)|| You are an Accountant preparing accounts of A Ltd. as on 31.3.2003. After year end of the following events have taken place in April, 2003 : |
Describe, how above will be dealt with in the account of the company for the year ended on 31.3.2003.
|(d)||How the Government Grants related to specific fixed assets should be presented in the Balance Sheet as per AS–12 ?||(0)|
|(e)||Briefly describe the disclosure requirements for Amalgamation including additional disclosure, if any, for different methods of amalgamation as per AS–14.||(0)|
|(f)||Mention the prescribed accounting treatment in respect of Gratuity benefits payable to Employees as per AS–15.||(0)|