|Time Allowed : 3 Hours||Full Marks : 100|
|The figures in the margin on the right side indicate full marks.|
|Answer Question No. 1 which is compulsory and any five from the rest.|
|1.||(a)||Define prior period item as per AS 5 (Revised).||2x10||(0)|
|(b)||Mention any four areas in which different accounting policies may be adopted by different enterprises.||(0)|
|(c)||State whether the following statements are true or false:|
|(i)||The form of Revenue Accounting is common for all types of Insurance business.||(0)|
|(ii)||Under Double Accounting system, Depreciation is not credited to the Asset Account, but is shown as an accumulated fund in general Balance Sheet.||(0)|
|(d)||Distinguish between Double Entry system and Double Accounting system.||(0)|
|(e)||Which accounting assumptions are fundamental as per AS–1?||(0)|
|(f)||State whether the following statements are correct or incorrect:|
|(i)||In a construction contract, if less than 1/4 of work is completed than 25% of profits can be credited to Profit and Loss account.||(0)|
|(ii)||The benchmark treatment of research and development costs is to treat as expenditure in the year in which it is incurred.||(0)|
|(g)||As per AS 18 when parties are considered ‘Related’ ?||(0)|
|(h)|| Indicate the correct answer: |
Fixed assets purchased on hire purchase terms are recorded at –
|(i)||State which are the information regarding depreciation should be disclosed in the financial statements according to AS–6 ?||(0)|
|(j)||Fill up the blanks:|
|(i)||International Accounting Standard Committee was formed in ________________.||(0)|
|(ii)||Super profits are _______________ over normal profits.||(0)|
|2.||(a)|| On 31st March, 2010, the Balance Sheet of Menon Ltd. was as follows: |
The net profits of the Company after deducting all working charges and providing for depreciation and taxation were as under:
On 31st March, 2010, buildings were valued at Rs.2,50,000 and plant and machinery at Rs.1,50,000
In view of the nature of the business, it is considered that 10% is a reasonable return on tangible capital.
Prepare a valuation of the Company’s share after taking into account the revised values of fixed assets and your own valuation of goodwill based on five year’s purchase of the super profits based on the average profits for the last five years.
|(b)||What will be the treatment of the following in the Final Accounts of a Company for the year ended 31st March, 2010: |
|3.|| Ramesh Limited was incorporated for taking over the business of S.K. from 1st April, 2010. The following is the Balance Sheet of S.K. as on 31.03.10. |
The Company takes over the business with fixed assets and loans on the following terms:
The Company realised Rs.80,000 from sundry debtors as the agent of the vendor in full settlement and discharged all the trade creditors by paying Rs.68,000 for a commission of 3% on the amount collected and 2% on the amount paid.
The creditors accepted 10% preference shares of Rs.100 each in discharge of the loan.
After realisation of the debts and discharge of the liabilities, the total amount due to the vendor was settled by payment of Rs.5,440 in cash and the balance in the shape of fully paid equity shares of Rs.10/- each.
Show purchase consideration and pass journal entries in the books of the Company. Also give the Balance Sheet of the Company after taking over the business of S.K.
|4.|| The premises of a Company were partially destroyed by fire on 1st September, 2009 and as a result, the business was practically disorganised up to 28th February, 2010. The Company is insured under a loss of profits policy for Rs.3,30,000 having an indemnity period of 6 months. The following information are provided by the Company: |
Due to substantial increase in trade, before and up to the time of the fire, it was agreed that an adjustment of 10 per cent should be made in respect of the upward trend in turnover. The Company incurred additional expenses amounting to Rs.18,600 immediately after the fire and but for this expenditure, the turnover during the period of dislocation would have been only Rs.1,10,000. There was also a saving during the indemnity period of Rs.5,400 in insured standing charges as a result of the fire.
You are required to calculate the amount of claim under the loss of profits policy.
|5.||(a)|| From the following information, find out amount of provision to be shown in the Profit and Loss Account of Laxmi Bank: |
|(b)|| Following is the Balance Sheet of Light Co. Ltd., as on 31.3.2010: |
The Company bought back 15000 shares at Rs.40 each. The transaction in respect of buy–back was financed by sale of 2/3rd of non–trade investment for Rs.5.90 lakhs.
Show important accounting entries in the books of the Company to record buy–back and also show the Balance Sheet after buy–back.
|6.||(a)||Distinguish between Receipts and Payments Accounts and Income and Expenditure Account.||4+12||(0)|
|(b)|| From the following Receipts and Payments Accounts of Sunrise Club as at 31.12.2009 and other related information, you are required to prepare an Income and Expenditure Account for the year ended 31.12.2009 and a Balance Sheet as at that date: |
|7.|| Vidyut Electric Supply Company earned a clear profit of Rs.1,70,20,400 after payment of Rs.4,08,000 as interest on its debentures @ 10 per cent per annum for the year ended 31st March, 2010. The following further data are available: |
Prepare necessary statement to show disposal of profits by assuming the bank rate is 6.5 per cent.
|8.||Write short notes (any four) of the following:||4x4|
|(a)||Statutory Liquidity Ratio;||(0)|
|(b)||Valuation Balance Sheet;||(0)|
|(c)||Income and Expenditure classification of Central Government;||(0)|
|(d)||Demand for Grant in Government finance;||(0)|
|(e)||Profit on incomplete contract;||(0)|
|(f)||Normal rate of return.||(0)|