Advanced Accounting - November 2022

Accountant of Shiva Limited had sought your opinion with relevant reasons, whether the following transactions will be treated as change in Accounting Policies or change in Accounting Estimates for the year ended 31 st March, 2021. Please advise him in the following situations in accordance with the provisions of AS 5: (i) Provision for doubtful debts was created @3% till 31 st March, 2020. From the Financial year 2020-2021, the rate of provision has been changed to 4%. (ii) During…

The following is the Balance Sheet of Purple Limited as at 31 st March, 2022: Particulars I. Notes Amount in ` 1 2 15,00,000 (3,00,000) Equity and Liabilities (1) Shareholders’ Funds (a) Share Capital (b) Reserves & Surplus (2) Current Liabilities (a) Trade Payables 2,20,000 (b) Short Term Borrowings – Bank Overdraft Total 2,00,000 16,20,000 6 INTERMEDIATE EXAMINATION: NOVEMBER, 2022 II. Assets (1) Non-Current Assets (a) Property, Plant and Equipment 3 10,20,000 (b) Intangible Assets 4 1,20,600 (2) Current Assets…

Ltd. and S Ltd. provide the following information as at 31 st March,2022: Property, Plant and Equipment Investments (14,000 Equity Shares of S Ltd.) Current Assets Share capital (Fully paid equity shares of ` 10 each) Profit and loss account Trade Payables H Ltd.` S Ltd.` 2,00,000 2,52,000 1,48,000 3,00,000 1,00,000 2,00,000 2,60,000 1,40,000 2,00,000 80,000 1,20,000 Additional information: H Ltd. acquired the shares of S Ltd. on 1 stJuly, 2021 and Balance of profit and loss account of S…

M, N and O were in partnership sharing profits and losses in the ratio of 3:2: 1. There was no provision in the agreement for interest on capitals or drawings. M died on 31st March, 2021 and on that date, the partners' balances were as under: Capital Account: M- ` 75,000 (Cr); N- ` 50,000 (Cr); O- ` 25,000 (Cr) Current Account: M- ` 50,000 (Cr); N- ` 37,500 (Cr); O- ` 12,500 (Dr) By the partnership agreement, the sum…

(a) Following information of RJS Bank Limited for the year ended 31 st March, 2022 are as under: Particulars ` in ‘000 Total interest earned and received on term loans Interest earned on term loans classified as NPA Interest received on term loans classified as NPA Total interest earned on cash credits and overdrafts Interest earned but not received on cash credits and overdrafts treated as NPA Interest on Deposits Commission, exchange and brokerage Profit on sale of Investments 6375.00…