|Total No. of Questions — 6]||[Total No. of Printed Pages — 4|
|Time Allowed : 3 Hours||Maximum Marks : 100|
|Answer all Questions|
|Wherever applicable, appropriate suitable assumptions should be made by the candidate.|
|Working notes should form part of the answer.|
|1.||(i)|| Calculate the amount of Insurance claim to be lodged, based on the following information: |
|(ii)||Arjun Ltd. issued 10,000 (Nos.) of 12% debentures of Rs.100 each in April, 2007. Interest is payable on 30th September and 31st March every year. The company purchased 2,000 debentures at Rs.104 per debenture on cum-interest basis on 1.7.2008. The own debentures were cancelled on 30.9.2009. Show Journal entries that are required to be passed for purchase of own debentures, interest on own debentures and for cancellation of those debentures.||(0)|
|(iii)|| Find out the profit of Mr. A from the following information: |
|(iv)||Mr. X purchased a machine on hire purchase system. He made cash payment of Rs.30,000 and the balance was payable in 5 annual installments of Rs.60,000 each. The cash price of the machine is Rs.3,00,000. Assume that the purchase was made on 1st April and the annual installments are payable on 31st March of every year. Calculate the amount of interest for each year.||(0)|
|(v)||A trader purchased goods for Rs.1,70,000. The opening stock of inventory prior to the said purchase was Rs.30,000. His sales was Rs.2,10,000. Find out the closing stock of inventory if the Gross profit margin is 25% on cost.||(0)|
|(vi)|| Find out the income to be recognised in the case of X Bank Ltd. for the year ended 31st March, 2009: |
|(vii)||An earthquake destroyed a major warehouse of ACO Ltd. on 20.5.2009. The accounting year of the company ended on 31.3.2009. The accounts were approved on 30.6.2009. The loss from earthquake is estimated at Rs.30 lakhs. State with reasons, whether the loss due to earthquake is an adjusting or non–adjusting event and how the fact of loss is to be disclosed by the company?||(0)|
|(viii)|| X Co. Ltd. having share capital of Rs.50 lakhs divided into equity shares of Rs.10 each was taken over by Y Co. Ltd. X Co. Ltd. has General Reserve of Rs.10,00,000 and Profit and Loss account Cr. Rs.5,00,000. Y Co. Ltd. issued 11 equity shares of Rs.10 each for every 10 shares of X Co. Ltd. |
How the Journal entry would be passed in the books of Y Co. Ltd. for the shares issued under the ‘pooling of interest method’ of amalgamation.
|(ix)||ABC Ltd. developed a know–how by incurring expenditure of Rs.20 lakhs. The know–how was used by the company from 1.4.2002. The useful life of the asset is 10 years from the year of commencement of its use. The company has not amortised the asset till 31.3.2009. Pass Journal entry to give effect to the value of know–how as per Accounting Standard–26 for the year ended 31.3.2009.||(0)|
|(x)||P, N and T are equal partners. The decided to change their profit sharing ratio into 5:4:3. They raised the goodwill in the books to the extent of Rs.2,40,000 and it is to be written off immediately. Show Journal entries with narration to be passed for raising the goodwill and for its subsequent write off.||(0)|
|2.|| Balance Sheet of Raman Ltd. is given below: |
The following information is furnished:
You are required to prepare Cash Flow Statement in accordance with the Accounting Standard 3.
|3.|| XYZ & Co. is a partnership firm consisting of Mr. X, Mr. Y and Mr. Z who share profits and losses in the ratio of 2:2:1 and ABC Ltd. is a company doing similar business. |
Following is the Balance Sheet of the firm and that of the company as at 31.3.2009:
It was decided that the firm XYZ & Co. be dissolved and all the assets (except cash in hand and cash at bank) and all the liabilities of the firm be taken over by ABC Ltd. by issuing 50,000 shares of Rs.10 each at a premium of Rs.2 per share.
Partners of XYZ & Co. agreed to divide the shares issued by ABC Ltd. in the profit sharing ratio and bring necessary cash for settlement of their capital.
The creditors of XYZ & Co. includes Rs.1,00,000 payable to ABC Ltd. An unrecorded liability of Rs.25,000 of XYZ & Co. must also be taken over by ABC Ltd.
|4.|| The Balance Sheet of Neptune Ltd as on 31.3.2009 is given below: |
The Court approved a scheme of re–organisation to take effect on 1.4.2009 and the terms are given below:
Show the Journal entries (with narration) to be passed for giving effect to the above transactions and draw Balance Sheet of the company after effecting the scheme.
|5.||(a)|| Pawan & Co. of Delhi has a branch at Jaipur. Goods are invoiced to the branch at cost plus 25%. The branch is instructed to deposit the receipts everyday in the head office account with the bank. All the expenses are paid through cheque by the head office except petty cash expenses which are paid by the Branch. |
From the following information, you are required to prepare Branch Account in the books of Head office:
Depreciation to be provided on branch furniture & fixtures @ 10% p.a. on WDV basis.
|(b)|| TM Ltd. went in for voluntary liquidation on 31st March, 2009. |
The Balance Sheet of the company as at 31.3.2009 is given below:
The preference dividends are in arrear for the years 2007–08 and 2008–09.
The company’s Articles provide that on liquidation, out of surplus assets remaining after payment of liquidation costs and outside liabilities, it shall be applied firstly towards arrears of preference dividend, secondly to preference shareholders with a premium thereon at Rs.10 per share and finally any residue shall be paid to the equity shareholders.
The Liquidator realised the assets as below:
Creditors were paid less discount of 5%. Debentureholders were paid alongwith accrued interest upto 30.6.2009.
Liquidators remuneration is 2% of the assets realised and cost of liquidation was Rs.7,640.
Prepare the Liquidator’s Statement of Account.
|6.||(a)|| From the following information furnished by X & Co., prepare Total Debtors Account. |
|(b)||What are the disadvantages of Enterprise Resource Planning (ERP)?||(0)|
|(c)|| Harish has the following bills due on different dates. It was agreed to settle the total amount due by a single cheque payment. Find the date of the cheque. |
|(d)||X Co. Ltd. has its share capital divided into equity shares of Rs.10 each. On 1.10.2008 it granted 20,000 employees’ stock option at Rs.50 per share, when the market price was Rs.120 per share. The options were to be exercised between 10th December, 2008 and 31st March, 2009. The employees exercised their options for 16,000 shares only and the remaining options lapsed. The company closes its books on 31st March every year. |
Show Journal entries (with narration) as would appear in the books of the company upto 31st March, 2009.