Financial Reporting - November 2022

(a) Given below are the balance sheets of a group of companies comprising X Ltd., Y Ltd. and Z Ltd. as on 31s" March, 2022: (7in Lakhs) XLtd.| Y Ltd. Z Ltd. Assets Non-current Assets Property, plant and equipment 1,120 1,260 1,050 Investment: 112 lakh shares in Y Ltd. 1,190 84 lakh shares in Z Ltd. 980 Current assets Inventories 770 245 175 Financial assets: Trade receivables 910 350 770 Bills receivables 252 - 105 Cash in hand and at…

2021, Mohan Ltd. has sold goods to Hari Ltd. at a consideration of ? 7,50,000. The receipt of this is receivable in three equal instalments of % 2,50,000 each over a two-year period (receipts on 1% April, 2021; 318! March 2022 and 318 March 2023). The company is offering a discount of 5% (i.e. % 37,500), if payment is made in full at the time of sale. The sale agreement reflects an implicit interest rate of 5.358% p.a. The total…

(a) Violet Limited is a beverages manufacturing company having various plants across India. There is Machinery A in the Surat plant which is used for the purpose of bottling. There is one more machinery which is Machinery B clubbed with Machinery A. Machinery A can individually have an output and also be sold independently in the open market. produce output as well. The company considers this group of assets as a Cash Generating Unit and an Inventory amounting to 1.65…

2021 "Fortunate Bank" has provided a loan of # 25,00,000 to Mohan Limited for 4 years at 10% p.a. and the loan has been guaranteed by Surya Limited, which is a holding company for Mohan Limited. Interest payments are made at the end of each year and the principal is repaid at the end of the loan term. If Surya Limited had not issued a guarantee, ‘Fortunate Bank' would have charged Mohan Limited an interest rate of 14% p.a. Surya…

(a) A herd of 15, 4 year old cows valued at ₹500 thousands per cow were held in 'M Dairy Farm’ as at 1° April 2021. The following transactions took place on 1% October, 2021: (A) One cow aged 4.5 years was purchased for ₹520 thousands. (B) One calf was born. No cow was sold or disposed off during the year. The per cow/calf fair value less cost to sell was as follows: 7 in thousands 4 year old cow…

(a) Orange Ltd. is going to prepare its annual financial statements for the year ending 318! March, 2022, in the process it discovered that a provision for constructive obligation for payment of bonus to selected employees in the corporate office (material in amount) which was required to be recognized in the annual financial statements for the year ended 31s! March, 2020 was not recognized due to oversight of facts. The bonus was paid during the financial year ended 31°' March…