Advanced Accounting - November 2019

(a) A Ltd. provides after sales warranty for two years to its customers. Based experience, the company has the following policy for making provision for warranties on the invoice amount, on the remaining balance warranty period. Less than 1 year: 2% provision More than 1 year: 3% provision The company has raised invoices as under : Invoice Date Amount (`) 11th Feb, 2017 60,000 25th Dec, 2017 40,000 04th Oct, 2018 1,35,000 Calculate the provision to be made for warranty…

(a) X Ltd. furnishes the following summarized Balance Sheet as at 31-03-2018. Liabilities (in `) (in `) Share Capital Equity Share Capital of ` 20 each fully paid up 50,00,000 10,000, 10% Preference Shares of ` 100 each fully paid 10,00, 60,00,000 PAPER – 5 : ADVANCED ACCOUNTING 5 Reserves & Surplus Capital Reserve 1,00,000 Security Premium 12,00,000 Revenue Reserve 5,00,000 Profit and Loss 20,00,000 Dividend Equalization Fund 5,50,000 43,50,000 Non-Current Liabilities 12% Debenture 12,50,000 Current Liabilities and Provisions 5,50,000…

(a) Following is the summarized Balance Sheet of Fortunate Ltd. as on 31st March, 2019. Particulars Amount (`) Liabilities Authorized and Issued Share Capital (a) 15,000 8% Preference shares of ` 50 each 7,50,000 (b) 18,750 Equity shares of ` 50 each 9,37,500 Profit and Loss Account (5,63,750) 7,16,250 Trade Payables 2,58,750 Other Liabilities 43,750 Total Assets 21,42,500 Building at cost less depreciation 5,00,000 Plant at cost less depreciation 3,35,000 Trademarks and goodwill at cost Inventory 3,97,500 5,00,000 Trade Receivables…

(a) From the following information, you are required to prepare Profit and Loss Account of Simple Bank for the year ended as on 31 st March, 2019: 2017-18 (` in '000) 2018-19 (` in '000) 71,35 Interest and Discount 1,02,25 5,70 Income from investment 5,60 7,75 Interest on Balances with RBI 8,85 36,10 Commission, Exchange and Brokerage 35,60 60 Profit on sale of investments 6,10 30,60 Interest on Deposits 41,10 6,35 Interest to RBI 7,35 36,35 Payment to and provision…

(a) Consider the following summarized Balance Sheets of subsidiary MNT Ltd. Liabilities Share Capital 2017-18 2018-19 Amount in Amount in PAPER – 5 : ADVANCED ACCOUNTING 21 7,50,000 7,50,000 2,14,000 72,000 5,05,000 2,07,000 Trade Payables 2,90,000 2,46,000 Bank Overdraft Provision for Taxation 2,62,000 1,70,000 4,30,000 15,88,000 23,08,000 Fixed Assets (Cost) 9,20,000 9,20,000 Less: Accumulated Depreciation (1,70,000) 7,50,000 (2,82,500) 6,37,500 5,30,000 Inventory Trade Receivable 4,12,300 2,95,000 6,90,000 3,43,000 Prepaid expenses 78,000 65,000 Cash at Bank 52,700 42,500 15,88,000 23,08,000 Issued and…