Advanced Accounting - May 2019

AP Ltd., a construction contractor, undertakes the construction of commercial complex for Kay Ltd. AP Ltd. submitted separate proposals for each of 3 units of commercial complex. A single agreement is entered into between the two parties. The agreement lays down the value of each of the 3 units, i.e. ` 50 Lakh ` 60 Lakh and ` 75 Lakh respectively. Agreement also lays down the completion time for each unit. Comment, with reference to AS- 7, whether AP Ltd.…

(a) Following is the summarized Balance Sheet of Super Ltd. as on 31st March, 2018. Liabilities In ` Share Capital Equity Shares of ` 10 each fully paid up 17,00,000 Reserves & Surplus Revenue Reserve Securities Premium Profit & Loss Account Infrastructure Development Reserve 23,50,000 2,50,000 2,00,000 1,50,000 Secured Loan 9% Debentures Unsecured Loan Current Maturities of Long term borrowings Assets Fixed Assets Tangible Assets Current Assets Current Assets 22,50,000 8,50,000 15,50,000 93,00,000 58,50,000 34,50,000 93,00,000 Super Limited wants to…

(a) The following are the summarized Balance Sheet of VT Ltd. and MG Ltd. as on 31 st March, 2018: Particulars VT Ltd. (` ) MG Ltd. (` ) Equity and Liabilities Equity Shares of ` 10 each 12,00,000 6,00,000 10% Pref. Shares of ` 100 each Reserve and Surplus 12% Debentures Trade Payables Total 4,00,000 6,00,000 4,00,000 5,00,000 31,00,000 2,00,000 4,00,000 3,00,000 3,00,000 18,00,000 Assets Fixed Assets Investment Inventory Trade Receivables Cash at Bank 14,00,000 1,60,000 4,80,000 8,40,000 2,20,000…

The following is an extract of Trial Balance of SM Bank, an overseas bank as on 31st March, 2018. Dr. ` Bill Discounted 15,16,800 Cr. ` 16 INTERMEDIATE (NEW) EXAMINATION: MAY, 2019 Discount Received 1,26,859 Rebate on Bills discounted not due on 31 st March, 17 26,592 An analysis of bill discounted is as follows : Amount in ` Due Date Rate of Discount 1,46,200 4th May, 2018 15 2,30,400 12th May, 2018 15 4,35,900 28th May, 2018 15 4,36,200…

H Ltd. acquire 70% of equity share of S Ltd. as on 1st January, 2011 at a cost of ` 5,00,000 when S Ltd. had an equity share capital of ` 5,00,000 and reserves and surplus of ` 40,000. Both the companies follow calendar year as the accounting year. In the four consecutive years, S Ltd. performed badly and suffered losses of ` 1,25,000, ` 2,00,000, ` 2,50,000 and ` 60,000 respectively. Thereafter in 2015, S Ltd. experienced turnaround and…