Roll No………………… | |
Total No. of Questions— 6] | [Total No. of Printed Pages—7 |
Time Allowed : 3 Hours | Maximum Marks : 100 |
DM | |
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. | |
Marks |
1. | Following is the Balance Sheet as at March 31, 2005 : | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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( 2 )
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On 1-4-2005, Max Ltd. adopted the following scheme of reconstruction : | ||||||||||||||
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On 2-4-2005 a scheme of absorption was adopted. Max Ltd. would take over Mini Ltd. The purchase consideration was fixed as below : | ||||||||||||||
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2. | Ram, Rahim and Robert are partners, sharing Profits and Losses in the ratio of 5:3:2 | 16 | ||||||||||||
It was decided that Robert would retire on 31-3-2005 and in his place Richard would be admitted as a partner with new profit sharing ratio between Ram, Rahim and Richard at 3:2:1 |
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( 3 )
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Balance Sheet of Ram, Rahim and Robert as at 31-3-2005 : | |||||||||||||||||||||||||||||||
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Retirement of Robert and admission of Richard is on the following terms : | |||||||||||||||||||||||||||||||
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( 4 )
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3. | M/s. Shah & Co. commenced business on 1.4.2004 with Head Office at Mumbai and a Branch at Chennai. Purchases were made exclusively by the Head Office, where the goods were processed before sale. There was no loss or wastage in processing. | 16 | |||||||||||||||||||||
Only the processed goods received from Head Office were handled by the Branch. The goods were sent to branch at processed cost plus 10%. |
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All sales, whether by Head Office or by the Branch, were at uniform gross profit of 25% on their respective cost. |
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Following is the Trial Balance as on 31.3.2005. | |||||||||||||||||||||||
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Following further information is provided :
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( 5 )
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4. | From the following furnished by Shri Ramji, prepare Trading and Profit and Loss account for the year ended 31.3.2005. Also draft his Balance Sheet as at 31.3.2005: | 16 | ||||
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Details of the year's transactions are as follows :
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( 6 )
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5. | Scorpio Ltd. came out with an issue of 45,00,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share. The promoters took 20% of the issue and the balance was offered to the public. The issue was equally underwritten by A & Co; B & Co. and C & Co. | 16 | ||||||
Each underwriter took firm underwriting of 1,00,000 shares each. Subscriptions for 31,00,000 equity shares were received with marked forms for the underwriters as given below : |
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The underwriters are eligible for a commission of 5% on face value of shares. The entire amount towards shares subscription has to be paid alongwith application.
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6. | Answer any four of the following : | 4x4=16 | ||||||
(a) | Under what circumstances can an enterprise change its amounting policy? | |||||||
(b) | ABC Ltd. could not recover Rs. 10 lakhs from a debtor. The company is aware that the debtor is in great financial difficulty. The accounts of the company were finalised for the year ended 31.3.2005 by making a provision @ 20% of the amount due from the said debtor. |
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The debtor became bankrupt in April, 2005 and nothing is recoverable from him. |
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Do you advise the company to provide for the entire loss of Rs. 10 lakhs in the books of account for the year ended 31st March, 2005? |
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(c) | X Co. Ltd. signed an agreement with its employees union for revision of wages in June, 2004. The wage revision is with retrospective effect from 1.4.2000. The arrear wages upto 31.3.2004 amounts to Rs. 80 lakhs. Arrear wages for the period from 1.4.2004 to 30.6.2004 (being the date of agreement) amounts to Rs. 7 lakhs.
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(d) | An intangible asset appears in Balance Sheet of A Co. Ltd. at Rs. 16 lakhs as on 31.3.2004. The asset was acquired for Rs. 40 lakhs in April, 1991. The Company has been amortising the asset value on straight line basis. The policy is to amortise for 20 years. |
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Do you advise the Company to amortise the entire asset value in the books of the company as on 31.3.2004? |
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(e) | Ram Co. (P) Ltd. furnishes you the following information for the year ended 31.3.2005 : |
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The Company wants to change its method of claiming depreciation from straight line method to written down value method. | ||||
Decide, how the depreciation should be disclosed in the Financial Statement for the year ended 31.3.2005. | ||||
(f) | How refund of revenue grant received from the Government is disclosed in the Financial Statements? |
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