Financial Reporting - May 2019

1. (a) Following are the financial statements of JSP Limited : 16 Balance Sheet Particulars Note | Asat March, 2018 (% In lakh) EQUITY AND LIABILITIES Shareholders’ Funds : Share Capital (Share of % 10 each) 2,000 Reserves and Surplus 1 2,500 Non-Current Liabilities : Long-Term Borrowings 2 4,860 Deferred Tax Liabilities 3 100 Current Liabilities : Trade Payables 400 Short Term Provisions 310 Other Current Liabilities |e! 250 TOTAL 10,420 ABF2 P.T.O. [ASSETS 7a) Non-Current Assets : Fixed Assets…

2. Term Loan from bank for & 4,860 lakh also includes interest accrued and due of % 860 lakh as on the reporting date. Reserves for foreseeable loss is created against a service contract due within 3 months. You are required to: (i) Identify and report the errors and misstatements in the above extract, wherever applicable. (ii) Prepare the corrected Balance Sheet and Statement of Profit and * Loss. Mike Ltd. has undertaken following various transactions in the financial year…

Sheets of PN Ltd. and SR Ltd. as on 31% March, 15 2018 were given as below: (Amount in %) Particulars PN Ltd. | SR Ltd. Assets Land & building 4,68,000} — 5,61,600) Plant & Machinery 7,48,800) 4,21,200 Investment in SR ltd. 12,48,000| - Inventories 3,74,400| —1,13,600 Trade Receivables 1,86,500} —1,24,800) Cash & Cash equivalents 45,200 24,900 Total Assets} 30,70,900| 12,46,100 Be Re all Equity & Liabilities Equity Share Capital (Shares of % 100 each] 15,60,000/ 6,24,000! fully paid) Other…

(a) Orange Ltd. contracts to renovate a five star hotel including the installation of new elevators on 01.10.2017. Orange Ltd. estimates the transaction price of € 480 lakh. The expected cost of elevators is € 144 lakh and expected other costs is ₹ 240 lakh. Orange Ltd. purchases elevators and they are delivered to the site six months before they will be installed. Orange Ltd. uses an input method based on cost to Measure progress towards completion. The entity has…

Shiv Ltd. purchased 70% stake in Shyam Ltd. for % 21,22,400 on 12 01.04.2016. On the date of the acquisition, Shyam Ltd.’s assets & liabilities were % 54,88,000 and % 4,48,000 respectively. The net assets position of Shyam Ltd. as on 31.03.2017 & 30.09.2017 were ₹78,40,000 and @ 1,10,60,000 respectively, the increase resulting from profits earned during the period. On 01.10.2017, Shiv Ltd. retained 30% stake in Shyam Ltd, and sold balance for % 50,00,000. Discuss the nature of the…