Financial Reporting - Sep 2025 RTP

What will the initial cost of PPE appearing in the books of HIJ Ltd.? (a) ` 40,50,00,000 (b) ` 40,00,00,000 (c) ` 20,25,00,000 (d) ` 20,00,00,000 Calculate the depreciation charge for the year ended 31st March 20X2 to be charged by G Ltd. in its books? (a) ` 50,62,500 (b) ` 1,01,25,000 (c) ` 1,00,00,000 (d) ` 50,00,000 Case Scenario II FA Ltd. is a company which manufactures aircraft parts and engines and sells them to large multinational companies like…

What accounting treatment should be done in FA Ltd.’s books for the year ending 31st March 20X3, as the customer has taken legal action against the Company on the loss of profits that has arisen as a result of the problems with the system?

Nothing needs to be provided for claim instituted by the customer as the Company is suitably covered against any possible losses. (b) Provision of ` 1.6 lakhs should be recognised with a corresponding charge to profit or loss. (c) Provision of ` 0.4 lakhs as per best possible outcome should be recognised with a corresponding charge to profit or loss. (d) Contingent Liability would be disclosed in the 31st March 20X3 financial statements. Charge to profit or loss if any…

A Ltd. owns 100% of a subsidiary B Ltd. It disposes of 60% of its interest in the subsidiary for ` 360 million and loses control of the subsidiary. It will de-consolidate the subsidiary and account for the remaining 40% interest as an associate using the equity method of accounting. At the disposal date, the fair value of the retained investment in B Ltd. is determined to be ` 240 million. The carrying value of the identifiable net assets of…

A Ltd. has a wholly owned subsidiary B Ltd. A Ltd. sells subsidiary B Ltd. to C Ltd. a listed entity, for shares in C Ltd. and ends up owning 75% of C Ltd.'s shares. The net assets of B Ltd. prior to the disposal are ` 10,00,000 (fair value ` 13,00,000) and goodwill previously capitalised and not impaired is ` 6,00,000; the carrying value of B Ltd. in A Ltd.'s books is ` 15,00,000. At the date A Ltd.…

A Ltd. purchased goods for resale from Europe for € 1,00,000 when the exchange rate was € 1 = ` 105. This balance is still unpaid at 31st March, 20X3 when the exchange rate is € 1 = ` 100.

A Ltd. sold the goods to an American client for $ 1,50,000 when the exchange rate was $1 = ` 85. This amount was settled when the exchange rate was $1 = ` 87.

A Ltd. also borrowed € 1,00,000 under a long-term loan agreement when the exchange rate was € 1 = ` 105 and immediately converted it to ` 1,05,00,000. Recommend how cash flows arising from above transactions would be reported in the statement of cash flows under indirect method. 12 SEPTEMBER 2025 EXAMINATION REVISION TEST PAPER Ind AS 116 : Leases 19. Wealth Ltd. has entered into lease agreement with a lessor for a period of 5 years at the annual…