Advanced Accounting - November 2020

(a) Rajendra undertook a contract ` 20,00,000 on an arrangement that 80% of the value of work done, as certified by the architect of the contractee should be paid immediately and that the remaining 20% be retained until the Contract was completed. In Year 1, the amounts expended were ` 8,60,000, the work was certified for ` 8,00,000 and 80% of this was paid as agreed. It was estimated that future expenditure to complete the Contract would be ` 10,00,000.…

Shares of ` 10 each in S Ltd. as on 1 st October, 2019. The Balance Sheets of the two companies as on 31st March, 2020 were as under: Particulars H Ltd. (` ) S Ltd. (` ) Equities and Liabilities: Equity Share Capital: Shares of ` 10 each General Reserve (1st April, 2019) Profit & Loss Account Preliminary Expenses (1 st April, 2019) 20,00,000 9,60,000 2,28,800 8,00,000 4,20,000 3,28,000 (20,000) Bank Overdraft 3,00,000 - PAPER – 5 : ADVANCED…

Ltd. and Low Ltd. were amalgamated on and from, 1st April, 2020. A new company Little Ltd. was formed to take over the business of the existing Companies. The summarized Balance sheets of High Ltd. and Low Ltd. as on 31st March, 2020 are as under: 10 INTERMEDIATE (NEW) EXAMINATION: NOVEMBER, 2020 (` in Lakhs) Liabilities Ltd. Ltd. Ltd. 1000 Low Assets Ltd. Property, Plant and Equipment: 850 Land & Building 670 385 320 175 Plant & Machinery 475 355…

(a) Mohan and Sohan were carrying business in partnership, sharing profit and losses equally. The Balance Sheet of the firm as on 31st March, 2019 stood as under: Liabilities Partners’ Capital Accounts: - Mohan 1,68,000 -Sohan 1,56,000 Bank Overdraft Trade Payables ` Assets Leasehold Premises Plant & Machinery 3,24,000 Inventories 42,000 Trade Receivables 72,000 Joint Life Policy Profit & Loss Account Partners' Current Accounts: -Mohan 12,000 -Sohan 7,200 4,38, ` 40,800 1,80,000 72,000 84,000 10,800 31,200 19,200 4,38,000 16 INTERMEDIATE…

Sun Ltd. grants 100 stock options to each of its 1200 employees on 01.04.2016 for ` 30, 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 ` 60 each. These options will vest at the end of the year 1 if the earning of Sun Ltd. is 16% or i t will vest at the end of year 2 if the…