Advanced Accounting - September 2026

1. In respect of the asset purchased from an American Company, what will be the amount of profit or loss on forward contract to be recognised by Earth Ltd. for the year 2025-26 ? 2 (A) Loss of % 4,50,000 () Profit of ₹ 4,50,000 (C) Loss of % 9,00,000 @) Profit of % 3,00,000 4)

2. What will be the book value of the machinery after the refund of the government grant on 1* April, 2026 ? : 2 (A) % 140.00 lakhs (B) % 194.50 lakhs (C) % 144.50 lakhs (D) % 180.63 lakhs

3. In respect of plan assets of Earth Ltd., what will be the actual returns on plan assets as on 315 March, 2026 ? 2 (A) ₹1,00,000 (B) ₹3,50,000 (C) ₹5,00,000 (@) ₹6,50,000

4. Compute the amount to be transferred to provision for warranties A/c from profit and loss account on 31 March, 2026, if opening balance of provision for warranties as on 1‘ April, 2025 is % 9,000. (A) ₹7,500 (B) ₹9,000 (C) % 13,500 (D) % 4,500 6)

5. Dee Ltd. offers its employees a sabbatical leave policy. Employees who complete 5 years of continuous service are entitled to 3 months of paid sabbatical leave. The leave can be availed once every 5 years. 2 As per AS-15, sabbatical leave will be treated as a (A) Short-term employee benefits (B) / Long-term employee benefits (C) Post employment benefits (D) Terminal benefits Case Scenario-Il : : Starline Ltd. is engaged in manufacturing of steel bars and also in construction…

6. In accordance with AS 16, what amount of borrowing cost can be capitalized as a part of the cost of automated steel plant ? (A) ₹6,00,000 (B) ₹5,00,000 (C) ₹4,60,000 @) ₹5,60,000 q) / 7. What should be the carrying amount of the short-term investment in Zenex | Ltd. in the books of Starline Ltd. as on 31% March, 2026 ? 2 | (A) ₹13,00,000 i (B) ₹14,15,000 (C). & 14,00,000 (D) =% 15,15,000

How should Starline Limited handle the Customer Lawsuit and the Environmental Clean-up in its financial statements ? 20 (A) Recognize a provision for the lawsuit based on the customer’s claim of % 8,00,000; Recognize a provision of % 2,50,000 for the environmental clean-up. (B) Disclose the lawsuit as a Contingent Liability in the Notes to Accounts, ' Recognize a provision of = 2,50,000 for the environmental clean-up in | the Balance Sheet. a (C) Disclose both the lawsuit and the…

The Starline Ltd. seeks your advice regarding the amount at which the semifinished flat should be valued. What will be the value of semi-finished flats as at 31% March, 2026 under the provisions of AS 2 (Revised) “Valuation of ( | Inventories” ? (A) ₹1,59,00,000 7 (B) ₹1,32,00,000 (C) ₹1,20,75,000 (D) ₹1,47,75,000 (8) As per Accounting Standard Framework, Income : (A) Decreases in economic benefits during the accounting period in the form of inflow, or enhancement of assets or decreases…