|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|
|Wherever appropriate suitable assumptions should be made by the candidate.|
|Working notes should form part of the answer.|
|1.||(a)|| Sameera Corporation sells Computers on Hire–purchase basis at cost plus 25%. Terms of sales are 5,000/– as Down payment and 10 monthly installments of Rs. 2,500/– for each Computer. From the following particulars, prepare Hire–purchase Trading A/c for the year 2002–03 : |
As on 1st April, 2002, last installment on 20 Computers were Outstanding as these were not due upto the end of the Previous year. During 2002–03, the Firm sold 120 Computers. As on 31st March, 2003 the position of installments outstandig were as under :
Two Computers on which 8 Instalments were due and one Instalment not yet due on 31.03.2003, had to be repossessed. Repossessed stock is valued at 50% of cost. All other Instalments have been received.
|(b)|| Rajatapeeta Bank Ltd. had extended the following credit lines to a Small Scale Industry, which had not paid any Interest since March, 1997 : |
Compute necessary Provisions to be made for the year ended 31st March, 2003.
|2.|| Riu, Inu and Sinu were running Partnership business sharing Profits and Losses in 2 : 2 : 1 ratio. Their Balance sheet as on 31st March, 2003 stood as follows : |
On 01.04.2003, they agreed to form a New company RIS (P) Ltd. with Inu and Sinu each taking up 200 shares of Rs. 10 each, which shall take over the firm as a going concern including Goodwill, but excluding Cash & Bank Balaces. The following are also agreed upon :
Yor are required to prepare Realisation Account, Cash and Bank Account, RIS (P) Limited Account and Capital Account of Partners.
|3.||Mr. Shankar of Mumbai finding himself unable to meet his creditors, has to prepare a Statement of Affairs, for which the following particulars are available on the date of his adjudication as Insolvent as on 31.03.2003 : |
Leasehold property Rs. 2,00,000, estimated to realise, Rs. 1,90,000.
Plant & Machinery Rs. 80,000, estimated to realise Rs. 60,000.
Stock in Trade Rs. 40,000, estimated to realise Rs. 28,000
Book debts : Good Rs. 1,20,000, Doubtful Rs. 10,000, estimated to realise 50%, Bad Rs. 28,000, Bills in Hand Rs. 7,500.
Life Policy for Rs. 50,000, whose Surrender value is Rs. 10,000 held by the insurance company against a loan of Rs. 4,000.
Household Furniture Rs. 7,200, Household Debts Rs. 5,800.
Bills Discounted Rs. 12,000, Rs. 4,000 likely to be dishonored.
Bank Overdraft secured by Personal Guarantee of Shankar's Brother, and Second Mortgage on Leasehold Rs. 1,00,000.
Unsecured Creditors Rs. 3,00,000. Loan from Naresh Rs. 5,000 secured by a Second charge on Life Policy. Ground Rent on Household for three months accrued Rs. 750.
He could not pay his office clerks (two persons) salaries for six months, Rs. 3,000 and also Rates & Taxes amounting to Rs. 3,000 due to Government.
Prepare Statement of Affairs of Mr. Shankar as on 31.03.2003.
|4.|| ABC Ltd. gives you the following informations. You are required to prepare Cash Flow Statement by using indirect methods as per AS-3 for the year ended 31.03.2004 : |
|5.|| Following are the Balance Sheet of companies as at 31.12.2003 : |
D Ltd. took over V Ltd. on the basis of the respective shares value, adjusting wherever necessary, the book values of assets and liabilities on the basis of the following information :
The above scheme has been duly adopted. Pass necessary Journals Entries in the books of D Ltd. and prepare Balance Sheet of D Ltd., after taking over the business of V Ltd. Fractional share to be settled in cash, rest in shares of D Ltd. Calculation shall be made to the nearest multiple of a rupee.
|6.||Attempt any four of the following :||4x4=16|
|(a)||X Limited received a grant of Rs. 2 cores from the Central Government for the purpose of a special Machinery during 1998–99. The cost of Machinery was Rs. 20 cores and had a useful life of 9 years. During 2002–03, the grant has become refundable due to non–fulfillment of certain conditions attached to it. Assuming the entire grant was deducted from the cost of Machinery in the year of acquisition. State with reasons, the accounting treatment to be followed in the year 2002–03.||(0)|
|(b)|| The company deals in three products, A, B and C, which are neither similar nor interchangeable.At the time of closing of its account for the year 2002-03. The Historical Cost and net realisable value of the items of closing stock are determined as follows :|
What will be the value of Closing Stock ?
|(c)|| During the current year 2002-03, X Limited made the following expenditure relating to its plant building :|
What amount should be capitalized ?
|(d)|| A plant was depreciated under two different methods as under : |
What should be the amount of resultant surplus/deficiency, if the company decides to switch over from W.D.V. method to SLM method for first four years ? Also state, how will you treat the same in Accounts.
|(e)||Write a short note on Firm underwriting and Partial underwriting along with firm underwriting.||(0)|
|(f)||Briefly explain the methods of accounting for amalgamation as per Accounting Standard–14.||(0)|