Advanced Accounting - May 2024

2023, Green Limited started the construction of an Office Building (qualified asset). The land under the building is regarded as a separate asset and is not a part of qualifying asset. For the purpose of construction of building, the company raised a specific loan of ` 14 lakhs from a Bank at an interest rate of 12% per annum. An interest income of ` 15,000 was earned on this loan while it was held in anticipation of payments. The company's…

Following is the summarized Balance Sheets of Z Limited as on 31 st March, 2024: Particulars EQUITY AND LIABILITIES: Share Capital Equity shares of ` 100 each 8% Preference shares of ` 100 each 10% Debentures of ` 100 each Trade Payables 60,00,000 21,00,000 18,00,000 16,80,000 Total 1,15,80,000 ASSETS: Goodwill 81,000 6 ADVANCED ACCOUNTING Property, Plant and Equipment Trade Receivables Inventories Cash at Bank Own Debentures (Nominal value of ` 6 lakhs) Profit and Loss A/c Total 72,00,000 13,75,000 9,80,000…

(a) Constructions Limited is engaged in the business of constructing Flyovers and Railway over bridges. It obtained a contract from Railway Authorities to construct a railway over bridge for ` 400 crores. The construction of the railway over bridge is expected to be completed in 4 years. At the outset of the contract, it was estimated that the total costs to be incurred will be ` 370 crores but by the end of year 1, this estimate stands revised to…

Limited and Diligent Limited are carrying their business independently for last two years. Following financial information in respect of both the companies as at 31 st March, 2024 has been given to you: 13 INTERMEDIATE EXAMINATION: MAY 2024 Particulars Intelligent Limited Diligent Limited Equity Shares Capital of ` 100 each 12,00,000 10,00,000 8% Preference shares of ` 100 each Trade Payables 3,00,000 12,00,000 2,00,000 4,00,000 Retirement Gratuity Fund (Long Term) 3,00,000 2,00,000 Profit and Loss Account Opening balance 4,50,000 2,50,000…

Sheets of Art Limited and Craft Limited as on 31 March 2024 are as below: Particulars I. Art Limited Craft Limited Equity and Liabilities a. b. Shareholder’s Fund i. Share Capital 1 6,50,000 4,00,000 ii. Reserve & Surplus 2 3,12,000 2,48,000 3 1,45,000 70,000 92,000 11,77,000 7,40,000 4 4,21,000 3,60,000 5 4,32,000 6 1,66,000 1,33,500 2,05,000 1,68,300 24,500 6,700 11,77,000 7,40,000 Art Limited Craft Limited Current Liabilities i. ii. II. Trade Payables Short term borrowings Assets a. Non-current Assets i.…

(a) Colour Limited leased a Machine to Red Limited on 1 April, 2021 on the following: Cost of the machine Lease term ` 18,00,000 Fair market value of the machine Unguaranteed residual value as on 31.3.2024 ` 18,00,000 ` 2,00,000 Internal rate of return 3 Years 12% Other information: The expected useful life of the machine is 5 years. The machine will revert to Colour Limited on termination of the lease. The lease payment is to be made at the…