Advanced Accounting - September 2025

(a) Amber Limited purchases a building at a cost of ` 20,00,000 on 1st April 2021 its useful life is four years and an expected scrap value is zero. Depreciation is allowed @ 50% in 1st year and rest balance in 2nd year for Tax purpose. Straight-line method is considered for accounting purpose. Amber Limited profit before depreciation and taxes are as follow: Profit (in `) 2022-2023 2023-2024 22,00,000 25,00,000 2021-2022 2024-2025 18,00,000 30,00,000 The corporate tax rate is 30%…

31st March 2025, the following balances are extracted from the books of Chia Limited: Particulars ` in Lakhs 40,000 Equity Shares of ` 100 each 40.00 Money received against share warrants 2.70 General Reserves 6.90 Capital Reserves (` 20,000 is Revaluation Reserve) 12.50 Profit and Loss account 3.50 Securities Premium 0.75 Deferred tax liabilities (Net) 0.56 10% Debentures (secured) 5.00 Loan from SSA Finance Corporation 10.00 Other Long Term Loans (unsecured) 4.25 Short-term borrowings 6.95 Trade Payables 5.69 Other current…

(a) The following are the summarised Balance Sheets of Magenta Limited: Particulars 31st March, 2024 (` in Lakhs) 31st March, 2025 (` in Lakhs) 15.00 20.00 7.50 5.00 Profit & Loss A/c 1.50 2.40 General Reserve 4.10 6.00 Outstanding Expenses 1.00 0.80 Trade Payables 2.75 4.15 Provision for Tax 2.00 2.50 Total 33.85 40.85 Goodwill 5.75 4.50 Equity Share Capital 12% Redeemable Shares Preference 18 ADVANCED ACCOUNTING Land & Building 10.00 9.00 Plant & Machinery 4.00 9.50 Inventories 4.85 4.35…

The following are the summarized Balance Sheet of Blue Limited and Yellow Limited as at 31st March 2025: Blue Limited (` in Lakhs) Yellow Limited (` in Lakhs) Equity Shares of ` 100 each 40.000 28.000 10% Debentures of ` 100 each 15.000 8% Debentures of ` 100 each 8.000 General Reserves 1.500 0.670 Retirement Gratuity Fund (Long term) 3.450 1.300 Trade Payables 7.400 4.250 Other current liabilities 1.240 0.880 Short -term provisions 0.710 0.320 Total 69.300 43.420 Goodwill 8.750…

The following are the summarized Balance Sheets of Seva Limited and its subsidiary Meva Limited as at 31st March 2025: Particulars Seva Limited (` in Lakh) Meva Limited (` in Lakh) Equity Shares of ` 10 each, fully paid up 6,000 4,000 General Reserve 1,500 1,200 Profit and Loss Account 2,000 1,500 10% Debentures of ` 10 each 1,180 820 Trade Payable 1,500 1,080 Total 12,180 8,600 Land and Building 4,000 4,150 Plant & Machinery 1,460 1,650 Non-current investments 3,000…

Sneha an employee of Omre Limited went on maternity leave with pay for 9 months on 1st January 2024 up to 30th September 2024. Her monthly pay was ` 1,50,000. While preparing the financial statements for the year ended 31st March 2024, the salary of Sneha for 3 months (1 January 2024 to 31st March 2024) was not provided due to omission. When Sneha joined on 1st October 2024 the whole salary for 9 months (1st January 2024 to 30th…