Advanced Accounting - December 2021

(a) As per the provision of AS 4, you are required to state with reason whether the following transactions are adjusting event or non-adjusting event for the year ended 31.03.2021 in the books of NEW Ltd. (accounts of the company were approved by board of directors on 10.07.2021): 1. Equity Dividend for the year 2020-21 was declared at the rate of 7% on 15.05.2021. 2. On 05.03.2021, ` 53,000 cash was collected from a customer but not deposited by the…

Can preference shares be also issued with differential rights? Explain in brief. (ii) Explain the conditions under Companies (Shares Capital and Debentures) Rules 2014, to deal with equity shares with differential rights. (5 Marks) (b) Dark Ltd. and Fair Ltd. were amalgamated on and from 1 st April, 2021. A new company Bright Ltd. was formed to take over the business of the existing companies. The balance Sheets of Dark Ltd. and Fair Ltd. as at 31 st March, 2021…

(a) Moon Ltd. and its subsidiary Star Ltd. provided the following information for the year ended 31st March, 2021: Particulars Equity Share Capital Finished Goods Inventory as on 01.04.2020 Finished Goods Inventory as on 31.03.2021 Dividend Income Other non-operating Income Raw material consumed Selling and Distribution Expenses Production Expenses Loss on sale of investments Sales and other operating income Wages and Salaries General and Administrative Expenses Royalty paid Depreciation Interest expense Moon Ltd (`) 20,000,000 4,200,000 8,575,000 1,680,000 350,000 13,930,000…

TJM & Sons is a partnership firm consisting of T, J and M who share profits and loses in the ratio of 2:2:1 and JEK Limited is another company doing similar business . The firm (TJM & Sons) and the company (JEK Ltd) provide you the following ledger balances as on 31.03.2021: TJM Sons (`) JEK Ltd. (` ) Plant & Machinery Furniture & Fixtures 7,50,000 75,000 24,00,000 3,37,500 Inventories Trade receivables 3,00,000 3,00,000 12,75,000 12,37,500 15,000 60,000 6,00,000 1,50,000…

(a) Mohan Ltd. furnishes the following summarised Balance Sheet on 31 st March 2021. (` in Lakhs) Amount Equity and Liabilities: Shareholders’ fund Share Capital Equity Shares of ` 10 each fully paid up 6% Redeemable Preference shares of ` 50 each fully Paid up 780 240 Reserves and Surplus Capital Reserves 58 General Reserve Securities Premium 625 52 Profit & Loss Revaluation Reserve 148 34 Infrastructure Development Reserve 20 INTERMEDIATE (NEW) EXAMINATION: DECEMBER, 2021 Non-current liabilities 7% Debentures 268…