Advanced Accounting - November 2018

(a) From the following information given by Sampark Ltd., Calculate Basis EPS and Diluted EPS as per AS 20 : Net Profit for the current year No. of Equity Shares Outstanding 2,50,00,000 50,00,000 50,000 No. of 12% convertible debentures of `100 each Each debenture is convertible into 8 Equity Shares Interest expense for the current year Tax saving relating to interest expense (30%) 6,00,000 1,80,000 (b) On 1st April, 2018, Tina Ltd. take over the business of Rina Ltd. and…

Lucky Ltd. grants 100 stock options to each of its 1,500 employees on 1-4-2014 for ` 40, depending upon the employees at the time of vesting of options. Options would be exercisable within a year it is vested. The market price of the share is ` 70 each. These options will vest at the end of year 1 if the earning of Lucky Ltd. is 15%, or it will vest at the end of the year 2 if the average…

(a) Virat Ltd. furnishes the following summarized Balance Sheet as at 31 st March, 2018: Particulars Equity and Liabilities : (1) Shareholders Funds: Share Capital 10,000, 12% Pref. Shares of ` 100 each fully paid up 10,00,000 PAPER – 5 : ADVANCED ACCOUNTING 9 1,00,000 Equity shares of ` 10 each fully paid up 10,00,000 50,000 Equity shares of ` 10 each, ` 8 paid up 4,00,000 24,00,000 (b) Reserve and Surplus Profit & Loss A/c. (Dr. Balance) (3,50,000) (2)…

31st March, 2018 the books of Nutan Insurance Company Limited contained the following particulars in respect of marine insurance business: Direct Business Re-insurance Received Receivable - 1.4.2017 35,50,000 2,14,500 3,75,000 18,700 Receivable - 31.3.2018 1,80,000 15,500 3,00,500 Premium: 14 INTERMEDIATE (NEW) EXAMINATION: NOVEMBER, 2018 Payable - 1.4.2017 10,400 Payable - 31.3.2018 15,200 Claims: Payable - 1.4.2017 25,10,000 42,500 2,70,800 15,000 Payable - 31.3.2018 45,800 17,500 Received 2,17,000 Receivable - 1.4.2017 Receivable - 31.3.2018 18,500 19,200 Commission: 75,800 Received 11,600 12,400…

Profit and Loss Accounts of A Ltd. and its subsidiary B Ltd. for the year ended 31st March, 2018 are given below : ` in Lakhs Incomes A Ltd. B Ltd. Sales and other income Increase in Inventory 7,500 1,500 1,500 300 Total 9,000 1, PAPER – 5 : ADVANCED ACCOUNTING 19 Expenses Raw material consumed 1,200 300 Wages and Salaries 1,200 225 Production expenses Administrative expenses 300 300 150 150 Selling and distribution expenses 300 75 Interest 150 75…