|Total No. of Questions — 6]||[Total No. of Printed Pages—4|
|Time Allowed : 3 Hours||Maximum Marks : 100|
|Answer all Questions|
|Wherever appropriate suitable assumptions should be made by the candidate.|
|Working notes should form part of the answer.|
|1.|| The following are the summarized Balance Sheet of Star Ltd. as on 31st March, 2008 and 2009: |
The Profit and Loss account for the year ended 31st March, 2009 disclosed:
The following information are also available:
You are required to prepare a cash flow statement as per AS 3 (Revised), using indirect method.
|2.||(a)|| A, B and C run a business sharing profits and losses in proportion of 2:2:1. On 1st January, 2008 their respective capitals were Rs.96,000, Rs.90,000 and Rs.84,000. |
On 30th June, 2008 the following was the position:
The drawings of the partners respectively were Rs.12,000, Rs.9,000 and Rs.6,000 during the half–year. Each partner is entitled to an interest at the rate of 5% p.a. on capital. Interest on drawings was calculated as Rs.600 for A, Rs.450 in case of B and Rs.300 in case of C.
You are required to prepare:
|(b)|| The following is the Balance Sheet of X Ltd. as on 31st March, 2009: |
On the above date, the company adopted the following scheme of reconstruction:
Give journal entries incorporating the above scheme of reconstruction and prepare the reconstructed Balance Sheet.
|3||(a)|| Neo Ltd., with headquarters at Mumbai, maintains a branch at Goa . Goods are invoiced at cost plus 25%. In respect of Goa branch, the following information pertaining to the year ended 31st March, 2009 are made available to you: |
Adopting the Stock and debtors system, you are required to prepare the following Ledger accounts, as appearing in the books of the Head Office:
|(b)|| P, Q and R are partners sharing profits and losses as to 2:2:1. Their Balance Sheet as on 31st March, 2009 is as follows: |
They decided to dissolve the business. The following are the amounts realized:
Creditors allowed a discount of 5% and realization expenses amounted to Rs.1,500.
There was an unrecorded asset of Rs.6,000 which was taken over by Q at Rs.4,800. A bill for Rs.4,200 due for sales tax was received during the course of realization and this was also paid.
You are required to prepare:
|4||(a)|| ‘X’ Ltd., issued 1,00,000 equity shares of Rs.10 each at par. The entire issue was underwritten as follows: |
The total applications including firm underwriting were for 80,000 shares.
|(b)|| ‘A’ Ltd is to be liquidated. Their summarised Balance Sheet as at 30th September, 2008 appears as under: |
On investigation, it is found that the contingent liabilities are certain to devolve and that the assets are likely to be realised as follows:
Taking the above into account, prepare the statement of affairs.
|5||(a)|| The following facts have been taken out from the records of Dee Bank Ltd. as on 31st March, 2009: |
An analysis of the bills discounted is as follows:
You are required to:—
|(b)|| On 31st March, 2009 the books of Zee Insurance Company Limited, contained the following particulars in respect of fire insurance: |
On 31st March, 2009 provide Rs.5,60,000 as unexpired risk reserve and Rs.75,000 as Additional reserve.
You are required to prepare the Fire Insurance Revenue account as per the regulations of IRDA, for the year ended 31st March, 2009.
|6.||Answer any four of the following:|
|(a)||A Company entered into an agreement to sell its immovable property to another company for Rs.35 lakhs. The property was shown in the Balance Sheet at Rs.7 lakhs. The agreement to sell was concluded on 15th February, 2009 and sale deed was registered on 30th April, 2009. |
You are required to state, with reasons, how this event would be dealt with in the financial statements for the year ended 31st March, 2009.
|(b)|| ‘A’ and ‘B’ are partners sharing Profits and Losses in the ratio of 3:1. Their capitals were Rs.3,00,000 and Rs.2,00,000 respectively. As from 1st April, 2009, it was agreed to change the profit sharing ratio to 3:2. According to the partnership deed, goodwill should be valued at two years’ purchase of the average of three years’ profits. The profits of the previous three years ending 31st March were: |
2007–Rs.1,50,000; 2008–Rs.2,00,000 and 2009–Rs.2,50,000. Pass the necessary journal entry to give effect to the above arrangement in the capital accounts of the partners.
|(c)||Explain the structure of Government Accounts in India.||5||(0)|
|(d)||(i)||Explain the disclosure requirement for fixed assets as per AS 10.||3||(0)|
|(ii)||During the year 2008–09, P Limited incurred the following expenses on machinery: |
Rs.2.50 lacs as routine repairs and Rs.75,000 on partial replacement of a part. Rs.7 lacs on replacement of part of a machinery which will improve the efficiency of the machine. Which amount should be capitalized as per AS 10?
|(e)||Explain the use of accounting information in Agricultural Farm.||5||(0)|
|(f)||Goods of Rs.5,00,000 were destroyed due to flood in September, 2006. A claim was lodged with insurance company, but no entry was passed in the books for insurance claim. |
In March, 2009, the claim was passed and the company received a payment of Rs.3,50,000 against the claim. Explain the treatment of such receipt in final accounts for the year ended 31st March, 2009.