Advanced Accounting - April Mtp 2023 MTP

Calculation of profit/ loss for the year ended 31 st March, 2023 Total estimated cost of construction (1,250 + 250 + 1,750) Less: Total contract price Total foreseeable loss to be recognized as expense (` in crores) 3,250 (2,400) 850 According to AS 7 (Revised 2002) “Construction Contracts”, when it is probable that total contract costs will exceed total contract revenue, the expected loss should be recognized as an expense immediately. (ii) Contract work-in-progress i.e. cost incurred to date Work…

2. (a) Realization Account Particulars ` Particulars To Building 1,90,000 By Trade creditors 80,000 To Stock 1,30,000 By Bills payable 30,000 To Investment 50,000 By Cash To Debtors 70,000 Building 2,09,000 To Cash-creditors paid (W.N.1) To Cash-expenses 63,650 8,000 Stock Investments (W.N.2) 1,20,000 40,000 To Cash-bills payable (30,000-500) 29,500 Debtors (W.N. 3) 56,700 4,25,700 To Partners’ Capital A/cs P Q 4,183 4,183 R 2,789 By R – (Receipt from Debtors unrecorded) 7,000 By R - Receipt from Investments unrecorded 11,000…

Amount received from sale of investments Book value Less: Misappropriated by R 50,000 (8,000) 42,000 (9,000) 33,000 7,000 40,000 Less: Taken over by a creditor Add: Profit on sale of investments Cash received from sale of remaining investment

Balance of capital as on 31 st March, 2023 40,000 7,000 11,000 58,000 (2,789) (8,889) (7,000) 39,322 Debtors-misappropriation Investment-misappropriation Less: Realization Profit General reserve Contribution from private assets Net deficiency of capital This deficiency of ` 39,322 in R’s capital account will be shared by other partners P, Q and S in their capital ratio of 15 : 15 : 6.by Accordingly, P’s share of deficiency = [39,322 x (15/36)] = ` 16,384 Q’s share of deficiency = [39,322 x…

(1) Computation of Amount of Debentures and Shares to be issued: Neptune (i) Average Net Profit ` (4,49,576-2,500+3,77,924)/3 = 2,75,000 ` (2,73,900+,3,42,100+3,59,000)/3 = 3,25,000 (ii) Equity Shares Issued (a) Ratio of distribution Neptune 275 325 (b) Number 27,500 Neptune 32,500 60,000 (c) Amount 27,500 shares of ` 5 each Neptune 1,37,500 32,500 shares of ` 5 each (iii) (iv) 1,62,500 Capital Employed (after revaluation of assets) Fixed Assets 7,10,000 3,90,000 Current Assets 2,99,500 1,57,750 Less: Current Liabilities 10,09,500 -5,97,000 5,47,750…

(a) The amount of rebate on bills discounted as on 31 st March, 2022 the period which has not been expired upto that day will be calculated as follows: Discount on `5,60,000 for 62 days @ 10% 9,512 Discount on `17,44,000 for 69 days @ 10% 32,969 Discount on `11,28,000 for 82 days @ 10% 25,341 Discount on `16,24,000 for 92 days @ 10% 40,934 Discount on `12,00,000 for 96 days @ 10% Total 31,562 1,40,318 Note: The due date…