Advanced Accounting - January 2025

(a) XYZ Limited has provided you the following information as on 31st March,2024: Particulars Net profit (After Tax) ` 31,20,000 No. of shares outstanding as on 31-3-2024 of ` 10 each 8,00,000 Average fair value of one equity share during the year 2023-24 ` 25 Weighted average on. Of shares under option during the year 2023-24 80,000 Exercise price for shares under option during the year 2023-24 ` 20 12% Debentures of ` 100 each ` 30,00,000 (Each debenture is…

Sustain Limited is incurring losses due to adverse market conditions. It decided to reorganize is capital structure. The summarized Balance Sheet of the company as on 31st March, 2024 is as follows: Particulars Notes Equity and Liabilities 1. Shareholders’ Fund (a) Share Capital (b) Reserves and Surplus 1 10,00,000 2 (2,50,000) 21 2. INTERMEDIATE EXAMINATION: JANUARY 2025 Non-current liabilities Long term borrowing 3. 3 4,50,000 Current liabilities (a) Trade Payables 1,30,000 (b) Short term borrowings – Bank Overdraft 65,000 (c)…

(a) An Engineering goods company provides ‘after sales warranty’ for 2 years to its customers. Based on the past experience, the company has been following policy for making provision for warranties on the Invoice amount on the remaining balance warranty period: Invoice less than 1 year : 2.5% provision Invoice more than 1 year : 4.5% provision The Company has raised Invoices as under: Invoice Date 20th February, 2021 42,000 17 July, 2022 25,000 27th January, 2022 47,000 1st March…

Following are the summarized Balance Sheet of Light Limited and Bright Limited as at 31st March,2024: Particulars Notes Light Limited Bright Limited (` in Lakhs) (` in Lakhs) Equity and Liabilities Shareholders’ Funds (a) Share Capital 1 50.00 40.00 31 INTERMEDIATE EXAMINATION: JANUARY 2025 (b) Reserves and Surplus 2 27.00 24.00 1.50 3.40 2.00 81.90 66.00 68.70 50.25 (a) Inventories 5.75 7.10 (b) Trade Receivables 4.30 5.80 (c) Cash and Cash equivalents 3.15 2.85 81.90 66.00 Non- Current Liabilities Long…

The summarized Balance Sheets of Super Limited and Clear Limited as on 31st March,2024 is as below: Particulars Super Limited Clear Limited Equity and Liabilities Shareholders’ Funds (a) Share Capital 1 95,00,000 50,00,000 (b) Reserves and Surplus 2 25,75,000 12,25,000 3 5,00,000 2,00,000 (a) Short term borrowings 4,50,000 (b) Trade Payables 3,65,000 2,45,000 1,33,90,000 66,70,000 Non-Current Liabilities (a) Long term borrowings Current Liabilities Total Assets Non-current assets (a) Property, Plant Equipment 4 77,00,000 54,00,000 (b) Non-Current Investment 5 41,50,000 (a)…

(a) The following information is provided for the year ended 31st March, 2024: (i) AX Limited holds 70% shares of BX Limited (ii) BX Limited holds 30% shares of CX Limited (iii) DX Limited holds 40% shares of in CX Limited (iv) DX Limited holds 49% shares in EX Limited You are required to: (i) Identity the related parties for the reporting entities – AX Limited, CX Limited and EX Limited. (ii) If DX Limited would have sold its investment…