Advanced Accounting - May 2022

TQ Cycles Ltd. is in the manufacturing of bicycles, a labour intensive manufacturing sector. In April 2022, the Government enhanced the minimum wages payable to workers with retrospective effect from the 1 st January,2022. Due to this legislative change, the additional wages for the period from January 2022 to March 2022 amounted to ` 30 lakhs. The management asked the Finance manager to charge ` 30 lakhs as prior period item while finalizing financial statements for the year 2022-23. Further…

The summarized Balance Sheet of A Ltd. and B Ltd. as at 31 st March,2022 are as under: Equity shares of `10 each, fully paid up Securities Premium Account General Reserve Profit and Loss Account Retirement Gratuity Fund Account 10% Debentures Unsecured Loan (including loan from A Ltd.) Trade Payables Land and Buildings Plant and Machinery A Ltd. (in `) B Ltd. (in `) 30,00,000 4,00,000 6,20,000 3,60,000 1,00,000 20,00,000 6,00,000 1,00,000 71,80,000 28,00,000 20,00,000 24,00,000 5,00,000 3,20,000 8,20,000 3,40,000…

White Ltd. acquired 2,250 shares of Black Ltd. on 1 st October,.2020. The summarized balance sheets of both the companies as on 31 st March, 2021 are given below: (I) White Ltd. ( `) Black Ltd. ( `) 6,50,000 3,00,000 60,000 1,50,000 30,000 90,000 1,15,000 75,000 30,000 9,75,000 5,25,000 5,80,000 3,51,000 Equity and Liabilities (1) Shareholder's fund Share capital (Equity shares of ` 100 each fully paid up) Reserves and Surplus General Reserve Profit and loss account (2) Current Liabilities…

Ajay, Vijay and Sanjay have been in partnership for a number of years, sharing profits and losses in the ratio 7:7: 4 as a wholesale stationer running business under the name "AVS Traders". On 31 st March,2021, it was found that some frauds were committed by Sanjay during the year 2020-2021. So, it was decided to dissolve the partnership business on 31st March,2021 when their Balance sheet stood as under: 16 INTERMEDIATE EXAMINATION: MAY, 2022 Balance Sheet as at 31…

(a) Quick Ltd. has the following capital structure as on 31 st March,2021: ` in Crores (1) (2) (3) Share Capital: (Equity Shares of ` 10 each, fully paid) Reserves and Surplus: General Reserve Securities Premium Account Profit and Loss Account Statutory Reserve Capital Redemption Reserve Plant Revaluation Reserve Loan Funds: Secured Unsecured 462 336 126 126 180 87 33 888 2,200 320 2,520 On the recommendations of the Board of Directors, on 16 th September, 2021, the shareholders of…