Advanced Accounting - May Mtp 2020 MTP

1. (a) State whether the following statements are 'True' or ‘False’. Also give reason for your answer. (i) Certain fundamental accounting assumptions underline the preparation and presentation of financial statements. They are usually not specifically stated because their acceptance and use are assumed. (ii) If fundamental accounting assumptions are not followed in presentation and preparation of financial statements, a specific disclosure is not required. (iii) All significant accounting policies adopted in the preparation and presentation of financial statements should not…

2020, SR Ltd. provides the following ledger balances after preparing its Profit &Loss Account for the year ended 31 March, 2020. Particulars Amount (Rs.) Debit Credit Equity Share Capital, fully paid shares of Rs. 50 each 80,00,000 Calls in arrear 15,000 Land 25,00,000 Buildings 30,00,000 Plant & Machinery 24,00,000 Furniture &Fixture 13,00,000 Securities Premium 15,00,000 General Reserve 9,41,000 Profit & Loss Account 5,80,000 Loan from Public Finance Corporation (Secured by Hypothecation 26,30,000 of Land) Other Long Term Loans 22,50,000 Short…

3. (a) From the following information, prepare Trading and Profit & Loss Account for the year ended 31.03.2020 and the Balance Sheet as at 31.03.2020 of M/s Prasad & Co., a proprietorship firm. Assets & Liabilities As on 01.04.2019 As on 31.03.2020 Creditors 20,000 15,000 Outstanding Expenses 600 800 Fixed Assets 12,000 13,000 Stock 10,000 12,000 Cash in hand 7,500 2,000 Cash at Bank 2,500 10,000 Debtors 2 18,000 Details of the year’s transactions are as follows: (1) | Discounts…

Vijay had 30,000 Equity shares in X Ltd. (the company) at a book value of Rs. 4,50,000 (Face Value Rs. 10 per share). On 22"¢ June, 2019, he purchased another 5000 shares of the same company for Rs. 80,000. The Directors of X Ltd. announced a bonus of equity shares in the ratio of one share for seven shares held on 10th August, 2019. On 31st August, 2019 the Company made a right issue in the ratio of three shares…

Jerry Ltd. for the year ended 31sMarch, 2020, in accordance with AS-3 (Revised) from the following Summary Cash Account: Summary Cash Account Rs. in ‘000 Rs. in'000 Balance as on 01.04.2019 210 Receipts from Customers 16,596 Sale of Investments (Cost Rs. 90,000) 102 Issue of Shares 1,800 Sale of Fixed Assets 768 19,476 Payment to Suppliers 12,204 Purchase of Investments 78 Purchase of Fixed Assets 1,380 : Wages & Salaries 414 Selling & Administration Expenses 690 Payment of Income Tax…

(a) Rau Ltd. purchased a plant for US$ 1,00,000 on 01s February 2020, payable after three months. Company entered into a forward contract for three months @ Rs. 49.15 per dollar. Exchange rate per dollar on 01s Feb. was Rs. 48.85. How will you recognize the profit or loss on forward contract in the books of Rau Ltd.? Omega Ltd., has a normal wastage of 4% in the production process. During the year 2019-20, the Company used 12,000 MT of…

1. (a) State whether the following statements are 'True' or ‘False’. Also give reason for your answer. (i) Certain fundamental accounting assumptions underline the preparation and presentation of financial statements. They are usually not specifically stated because their acceptance and use are assumed. (ii) If fundamental accounting assumptions are not followed in presentation and preparation of financial statements, a specific disclosure is not required. (iii) All significant accounting policies adopted in the preparation and presentation of financial statements should not…

2020, SR Ltd. provides the following ledger balances after preparing its Profit &Loss Account for the year ended 31 March, 2020. Particulars Amount (Rs.) Debit Credit Equity Share Capital, fully paid shares of Rs. 50 each 80,00,000 Calls in arrear 15,000 Land 25,00,000 Buildings 30,00,000 Plant & Machinery 24,00,000 Furniture &Fixture 13,00,000 Securities Premium 15,00,000 General Reserve 9,41,000 Profit & Loss Account 5,80,000 Loan from Public Finance Corporation (Secured by Hypothecation 26,30,000 of Land) Other Long Term Loans 22,50,000 Short…