Advanced Accounting - January 2021

(a) A Company acquired for its internal use a software on 01.03.2020 from U.K. for £ 1,50,000. The exchange rate on the date was as ` 100 per £. The seller allowed trade discount @ 2.5%. The other expenditures were: (i) Import Duty 10% (ii) Additional Import Duty 5% (iii) Entry Tax 2% (Recoverable later from tax department). (iv) Installation expenses ` 1,50,000. (v) Professional fees for clearance from customs ` 50,000. Compute the cost of software to be Capitalized…

Ltd. and Glory Ltd., are two companies engaged in the same business of chemicals. To mitigate competition, a new company Glorious Ltd, is to be formed to which the assets and liabilities of the existing companies, with certain exception, are to be transferred. The summarized Balance Sheet of Galaxy Ltd. and Glory Ltd. as at 31st March, 2020 are as follows: (I) Galaxy Ltd. Glory Ltd. 8,40,000 4,55,000 General Reserve 4,48,000 40,000 Profit & Loss A/c 1,12,000 72,000 3,30,000 4,20,000…

(a) Ananya Enterprises is a partnership firm is which A, B and C are three partners sharing profits and losses in the ratio of 5 : 3 : 2. The Balance Sheet of the firm as on 31st October, 2019 is as below: Liabilities ` Assets Capital: A 95,00,000 Land & Buildings 45,00,000 B 75,00,000 Plant & Machinery 65,00,000 C 30,00,000 Furniture & Fixtures 18,00,000 11,00,000 Stock Sundry Debtors 13,50,000 7,50,000 7,00,000 Loan A 25,00,000 Sundry Creditors 10 INTERMEDIATE (NEW)…

31st March, 2020 the summarised Balance Sheets of H Ltd. and its subsidiary S Ltd. stood as follows: H Ltd. S Ltd. Issued and subscribed Equity shares of ` 10 each 13,40,000 2,40,000 Reserves and Surplus 4,80,000 1,80,000 Profit & Loss Account 2,40,000 60,000 Secured Loans 12% Debentures 1,00,000 Current Liabilities Trade Payables 2,00,000 1,22,000 Bank Overdraft Bills Payable 1,00,000 60,000 14,800 25,20,000 6,16,800 Shareholders' Fund Total Assets Non-Current Assets (a) Property, Plant & Equipment Machinery Furniture (b) Investments 7,20,000…

(a) A commercial bank has the following capital funds and assets. Segregate the capital funds into Tier I and Tier II capitals. Find out the risk-adjusted asset and risk weighted assets ratio: Capital Funds: (` in lakhs) Equity Share Capital 29,00 Perpetual Non-cumulative Preference Shares 8,00 Perpetual Cumulative Preference Shares (fully paid up) 5,50 Statutory Reserve 13,50 Capital Reserve (of which ` 13.5 lakhs were due to revaluation of assets and the balance due to sale of assets) 45 Securities…