Contents % ' ! 0
z
Chapter-wise Marks Distribution
I-7
z
Previous Exams Trend Analysis (May 2018 Onwards) (New Syllabus)
I-9
z
Chapter-wise comparison with study material
I-13
0 / 3 % R O F G N I T N U O C C !
Chapter 1
1.1
S T H G I R L A I T N E R E F F I D H T I W S E R A H S Y T I U Q E K C A B Y U "
Chapter 2
2.1
N O I T A M A G L A M !
Chapter 3
3.1
N O I T C U R T S N O C E R L A N R E T N )
Chapter 4
4.1
N O I T A D I U Q I ,
Chapter 5
5.1
G N I K N A "
Chapter 6
6.1
# & " .
Chapter 7
7.1
S T N E M E T A T S L A I C N A N I F D E T A D I L O S N O #
Chapter 8
8.1
S D R A D N A T 3 G N I T N U O C C !
Chapter 9
9.1
I-5
3 4 . % 4 . / #
I-6
% ' ! 0
Solved Paper
P.1 Solved Paper
P.27 Solved Paper
P.41 S R E W S N ! E N I L E D I U ' S U B A L L Y 3 W E . Y L U *
S R E W S N ! E N I L E D I U ' S U B A L L Y 3 W E . R E B M E C E $ S R E W S N ! E N I L E D I U ' S U B A L L Y 3 W E . Y A -
P.105 Solved Paper
P.80 Solved Paper
S R E W S N ! E N I L E D I U ' S U B A L L Y 3 W E . N A *
P.94 Solved Paper
P.56 Solved Paper
10.1
S R S S R R E E E W W W S S S N N N ! ! ! E E E N N N I I I L L L E E E D I D D I I U U U ' ' ' S S S U U U B B B A L A A L L L Y L L Y Y 3 3 3 W W W E E E . . . V S Y V P A O O I - . . H S R E N T R A 0 Chapter 10
9
ACCOUNTING STANDARDS
CHAPTER AS 4 CONTINGENCIES AND EVENTS OCCURRING AFTER BALANCE SHEET DATE ADJUSTMENT EVENTS (BASED ON PARA NOS. 3, 8.1 AND 8.2) Q.1. A company entered into an agreement to sell its immovable property to another company for 35 lakhs. The property was shown in the Balance Sheet at ` 7 lakhs. The agreement to sell was concluded on 15th February, 2008 and sale deed was registered on 30th April, 2008. The financial statements for the year 2007-08 were approved by the board on 12th May, 2008. You are required to state, how this transaction would be dealt with in the financial statements for the year ended 31st March, 2008. (Nov. 2009) (2 Marks) Ans. : According to para 13 of AS 4 “Contingencies and Events Occurring After the Balance Sheet Date”, assets and liabilities should be adjusted for events occurring after the balance sheet date that provide additional evidence to assist the estimation of amounts relating to conditions existing at the balance sheet date. EE HH T T R EE R Y T OF R F AA E U BGR NB TI E U R OR& U H CT DC EO I R R TN A N O CE VD SE E A T WNC AE F YYF T LA R R E S PAA E OL W RC PSL L IE ES S L IO B AHT V4T OT N E T EA MN UMD MO ET IC EE FC R E O AGH AS FT EO L E A U C S S KBN EL A EOT S O A A BAB D CE TE EH E H VT ET OFH E BO S R AE EO F ERCE HUNB A S T L O A E NC L BI )
Analysis:
L A N O I TE I D T DA AD T SE E E DH I S V OE RC PN A YL L A P MB E IH S T T A G N I LT I S R I PX !E S HN T O I T I ND ON DO EC EE DH T EO L A T S G EI N HT T A L FE O R NN OO I I T T A A R M T S R I G O F EN 2I E H T N I Y R A S S E C E N S I Y T R E P O RH PC ER L A B AVT OS M MD IE FD O N EE L A R S A RE OY F E SH T T E R S S O A F S OT T N TE N EM E MT TA S T US J L D A AC I SN UA HN 4l
Conclusion:
9.1
3 $ 2 ! $ . ! 4 3 ' . ) 4 . 5 / # # !
9.2
Q.2. While preparing its final accounts for the year ended 31st March 2010, a company made a provision for bad debts @ 4% of its total debtors (as per trend follows from the previous years). In the first week of March 2010, a debtor for ` 3,00,000 had suffered heavy loss due to an earthquake; the loss was not covered by any insurance policy. In April, 2010 the debtor became a bankrupt. Can the company provide for the full loss arising out of insolvency of the debtor in the final accounts for the year ended 31st March, 2010? (Nov. 2010) (5 Marks) Ans. : As per para 8 of AS 4 ‘Contingencies and Events Occurring After the Balance Sheet Date’, adjustment to assets and liabilities are required for events occurring after the balance sheet date that provide additional information materially affecting the determination of the amounts relating to conditions existing at the Balance Sheet date. T KE EE EH WS TE S C R N lA L EA HB T NE I H ETY KRC E AT I L UF O QA P H E T C R N A A E R OLU T IS ERN UPI D!Y NN SI S TA OP L Y YUB VRD AKE ENR HAE V DBO EEC R M E T AO F F C N UE SB O L S EA HS D N A A W S S R O O L F E RHH OC4 R T A B E-T E DF A !O D
Analysis:
`
S ET DN AU MO C EC BA L DA L N U Ol HE SH T N I R O T B E D GA NF I T O N Y UC ON ME AV L SO T S B N EI DE DH ATH O BT C R RE A OU F D NG T ON S I S I I S V I ORD RAE PS SD N LO L E U L FE R A EHE T R Y R OE F E V E H R OT E C R HO O 4T F
Conclusion:
`
Q.3. MEC Limited could not recover an amount of ` 8 lakhs from a debtor. The company is aware that the debtor is in great financial difficulty. The accounts of the company for the year ended 31-3-2011 were finalized by making a provision @ 25% of the amount due from that debtor. In May 2011, the debtor became bankrupt and nothing is recoverable from him. Do you advise the company to provide for the entire loss of ` 8 lakhs in books of account for the year ended 31-3-2011? (Nov. 2011) (4 Marks) Ans. : As per para 8 of AS 4, ‘Contingencies and Events Occurring After the Balance Sheet Date’, adjustments to assets and liabilities are required for events occurring after the balance sheet date if such event provides/relates to additional information to the conditions existing at the balance sheet date and is also materially affecting the valuation of assets and liabilities on the balance sheet date. L TREA A OHI ET R R BTE G ENT ADOA GM EN NH I S I TT YTI S DFI P AOX U EYER C R NK L T A P ON I SUT A RIA KDBY WN NGN RA N A OI O" P CM T M E B S OO HC ET T DN C EUOEE HOTBH T CNRT COOO T NA I B T T OF A E I S OM T DS S O GR E AL UNO F I A F QS ONOE T EL I B C HC L E L T FAF L I N NO F W OE I I NEI T E S EMD HH I VT K DTA I EAOL G S NHNL OTA ! T I A T F Y E A YLT O N T ML A OD T RU N S OCI TU F l E O N F I I EM H ED SA HL A T L I YEA RC T ACO N E AT PN-L A SNNA S !lI BA
Analysis:
`
3 $ 2 ! $ . ! 4 3 ' . ) 4 . 5 / # # !
9.3
`
E H T N I S H K A L
F O T N U O M A E R I H T C N ER EA HT T S R O F ED DE I D V ON RE PR A DE L U Y OE HH ST SR I O YF NT AN PU MO C OC CA EF HO T S SK UO HO 4B
Conclusion:
Q.4. Cashier of A-One Limited embezzled cash amounting to ` 6,00,000 during March, 2012. However same comes to the notice of Company management during April, 2012 only financial statements of the company are not yet approved by the Board of Directors of the company. With the help of provisions of AS 4 “Contingencies and Events Occurring after the Balance Sheet Date” decide, whether the embezzlement of cash should be adjusted in the books of account for the year ending March, 2012? What will be your reply, if embezzlement of cash comes to the notice of company management only after approval of financial statements by the Boar Directors of the company? (May 2012) (4 Marks) Ans. : As per para no. 13 of AS 4, assets and liabilities should be adjusted for events occurring after the balance sheet date that provide additional evidence to assist the estimation of amounts relating to conditions existing at the balance sheet date. ELG CAN N I NO T AI A L TE L A I BDR T EDN HAU T NO RAM E SA T I F A H TS DIA T EU C T E BH C E T T SF E T O DN SEN O A M I E WET A T T A A N T I D S T ME L R A I E E T C H E S ND A E NEC H N RlT A E FGA L I O NB H I SLT A CE CAE V H FT EOF R AT HP T YA YPL LG BAAN EII T TRRI S E F O T X E F A E HE T BMS E NN O OI HT EI T T TI HAAD GDMN UTRO OEOC E F HH O N 4S T I
Analysis:
`
LN A O I I C T NN I AG NO lC EE HR T R O NF I S T N E MH TC S R UA J D AT S Y R A S D S E E CD EN NE ER HA E T EY E KH AT MR O OF T Y YN R A A P S G MN S E OT I CC N EE NH U O ST I FM TO I A S S T EN S R O OEL F ME E R EH T E T A HT F 4S O
Conclusion:
`
Q.5. In its Final Accounts for the year ended 31st March, 2014, Z Ltd. made a provision of 3% of its total debtors. On 10th March, 2014, a debtor of ` 5 lakhs suffered a heavy loss and became insolvent in April 2014. The loss was not insured. State giving reasons, if the company may provide for the full loss in its accounts for the year ended 31st March, 2014. (May 2014) (5 Marks) Ans. : According to para 8.2 of Accounting Standard 4 “Contingencies and Events Occurring after the Balance Sheet Date”, adjustments to assets and liabilities are required for events occurring after the balance sheet date that provide additional information materially affecting the determination of the amounts relating to conditions existing at the balance sheet date.
3 $ 2 ! $ . ! 4 3 ' . ) 4 . 5 / # # !
9.4
TE R E HO ET T HE B SR E EOD CFE NEH ABT L F A EO BC Y NC RA E N RE T F UV A S L NO TI N S E EH N VT I L E O H SYT NBF I D EO ER E ME S AVU COA ECC BTE O RN H T O T S SA B S EO W DL S EYS HVL O A T ES HH I H GD T UE D OR N HE T FA F E UT ES S A A DD CA T EHE VEE OH H S BT AE E C EYN H A E T T L A A ND B )
Analysis:
S H K A L G N I T N U O M A S T B E D DH AC BR RA OF NS T O I S I V D OE RD PN LE L U R FA EE KY AE MH TT S R UO MF S YT NN AU PO C MC OA CL EA HN T l SS UT HI N 4I
Conclusion:
`
Q.6. While preparing its final accounts for the year ended 31st March, 2016, a company made provision for bad debts @ 5% of its total debtors. In the last week of February, 2016, a debtor for ` 20 lakhs had suffered heavy loss due to an earthquake; the loss was not covered by any insurance policy. In April, 2016 the debtor became a bankrupt. Can the company provide for the full loss arising out of insolvency of the debtor in the final accounts for the year ended 31st March, 2016? Comment with reference to relevant Accounting Standard. (Nov. 2016) (5 Marks) Ans. : As per AS 4 ‘Contingencies and Events Occurring After the Balance Sheet Date’, adjustment to assets and liabilities are required for events occurring after the balance sheet date that provide additional information materially affecting the determination of the amounts relating to conditions existing at the Balance Sheet date. LR KHEA ETMN E EIA V OE WWC I T NE W I TO S BDO I A T ( L ED EAHAE HMTNT T RA A A OH NF D Y I T T N L EI E TN E KS C OH AI A UHFSS E Q4EIC H H N E E T 4 T R C A A L A N D Y A EA NT B RA OU EE T H ET ESPH N M UI SNT O DY ON SBCEG S E ECN ODH N V IE L E A T S YRTL VEOAIG AVTBXN EON EI T HC ENS W H O U TO I T DO J T I EN NRD D R A E E SKT NN F Y A F O F UWDACA S A EI S H E HS C R T L I R HA OO T WS TB D AI LE E T WR D A SPL F N!E O RO RYI N N Y T I OR O C A F A I T TT CP RUI P A L OR U U T MR BPR B M E K K R E& ON I NF DF A SAN T !O BIB I
Analysis:
`
S OT T N EU DO AC C MA EA L BN Dl L U E OH HT SN I R O T B E D A F GO NY I T C N N UE OL V MO S AN SI T E B EHH DTC R DOA ATE BU T RDS OG F NND I S OI E I R S D I A V N S OS E RO R PL A LEE L Y H U FTE H SRT UER V HO O 4C F
Conclusion:
`
L A N O I T I D D A S R O T B E D LX A T O T S T I F O N OE I D S I A V OM RE PB L L EA DH AS M Y D A E R L A S A G HN YI NT AN PU MO OM CA N EO HI T S EV I CO NR I 3 P `
NON-ADJUSTING EVENTS (BASED ON PARA NOS. 3, 8.1, 8.3 AND 8.4) Q.7. A company deals in petroleum products. The sale price of petrol is fixed by the government. After the Balance Sheet date, but before the finalization of the company’s accounts, the government unexpectedly increased the price
3 $ 2 ! $ . ! 4 3 ' . ) 4 . 5 / # # !
9.5
retrospectively. Can the company account for additional revenue at the close of the year? Discuss in line with provisions of AS 4. (RTP) Ans. : LNTA O NT RAE T T SMN E E PATS SE FDU O EJR EDDP R A CA N I N O R G I PEAT I SD ERE L ERN A BI O S NTUC Q O I A E ENR T N S N AHE A C ECI S R E H E C R T WP NA I E D ER DT T EE T A T EDO C EH N PSTS X EE EEEO NCHD UN3I T A E ELCE A HB N C T A N L EA I H S 3T"E RET !E THAE FF T D O ARTT A EE T T ED ANFH A T E R E 3E A PMG H N E N I CS ORR N E R T E AC GVUL N NOCAA G C I O"L D A RETEB OHN H CTE T E CYV TH !BE A T
Analysis:
R E P O R P H T I W R A E Y T N E U Q E S B U S E H T N I Y L N O D E Z I N G O C E R E B D L U O H S E US NR E EU VS EO R L C ES HI 4D
Conclusion:
Q.8. With reference to AS 4 “Contingencies and Events Occurring after the Balance Sheet Date”, state whether the following events will be treated as contingencies, adjusting events or non-adjusting events occurring after balance sheet date in case of a company which follows April to March as its financial year. (i) A major fire has damaged the assets in a factory on 5th April, 5 days after the year end. However, the assets are fully insured and the books have not been approved by the Directors. (ii) A suit against the company’s advertisement was filed by a party on 10th April, 10 days after the year end claiming damages of ` 20 lakhs. (RTP) Ans. : According to AS 4 on ‘Contingencies and Events Occurring after the Balance Sheet Date’, adjustments to assets and liabilities are required for events occurring after the balance sheet date that provide additional information materially affecting the determination of the amounts relating to conditions existing at the balance sheet date. However, adjustments to assets and liabilities are not appropriate for events occurring after the balance sheet date, if such events do not relate to conditions existing at the balance sheet date. “Contingencies” used in the Standard is restricted to conditions or situations at the balance sheet date, the financial effect of which is to be determined by future events which may or may not occur. Y L L A T O T S I S S O L E H T O S L A D N A E T A D T E E H S E C N A L A B E H T R E T F A D E R R U C C O SD A E HR EU R S I N & I
(i) Analysis:
G N I T S U J D A N O N S I T N E V E E H T D N A L A I R E T A M M I S E M O C E B T N E V E E H T EE R R OU F T E A R E N HN 4I
Conclusion:
3 $ 2 ! $ . ! 4 3 ' . ) 4 . 5 / # # !
9.6
T S E EY HN SA EPS CMH N K O AC A L L A E BH ET T HS T F NO TI A AT GGN NAU I T DO S EM I L X ElA R SSO NAF OWL I I T TR I I D P NU! OSH ET CS OA T DCN ENO T E C VY I I T R G R T S A E E HP R T A SN I YIY C B NRT EEN GVE NEM W I E T OS N I T O(R C E E ET V HA D 4DA
(ii) Analysis:
`
E C N E H D N A Y C N E G N I T N O C A F O N O I T I N l E D E H T O T N I TT l N E TV O NE SG E N I OT DS U TJ I D EA R ON F O E N R E A HS 4I
Conclusion:
Q.9. A Company follows April to March as its financial year. The Company recognizes cheques dated 31st March or before, received from customers after balance sheet date, but before approval of financial statement by debiting ‘Cheques in hand account’ and crediting ‘Debtors account’. The ‘cheques in hand’ is shown in the Balance Sheet as an item of cash and cash equivalents. All cheques in hand are presented to bank in the month of April and are also realised in the same month in normal course after deposit in the bank. State with reasons, whether the collection of cheques bearing date 31st March or before, but received after Balance Sheet date is an adjusting event and how this fact is to be disclosed by the company? (May 2010) (2 Marks) Ans. : T DE EE VH I E S CE EC R N SA E L UA QB EE HH CT EN HO T G EN R I T OS F I E X BE RN OO I HI T CD R N A O -C TY S N A T EN T E A S DE ER HP T E R RT A EO BN SOH E C UDR QHA EC HRT CAS E- HT S T F E I I NRE E ET T VF A %A D
Analysis:
T N E V E G N I T S U J D A N A T O N S I E T A D T E E H S E C N A L A B R E T F A S E U Q E H C F O N O I T C E L L O C E H T S U H 4
Conclusion:
Q.10. With reference to AS 4 “Contingencies and Events Occurring after the Balance Sheet Date”, identify whether the following events will be treated as contingencies, adjusting events or non-adjusting events occurring after balance sheet date in case of a company which follows April to March as its financial year. (i) A major fire has damaged the assets in a factory on 5th April, 5 days after the year end. However, the assets are fully insured and the books have not been approved by the Directors. (ii) A suit against the company’s advertisement was filed by a party on 10th April, 10 days after the year end claiming damages of ` 20 lakhs. (RTP) Ans. : According to AS 4 on ‘Contingencies and Events Occurring after the Balance Sheet Date’, adjustments to assets and liabilities are required for events occurring after the balance sheet date that provide additional information materially affecting the determination of the amounts relating to conditions existing at
3 $ 2 ! $ . ! 4 3 ' . ) 4 . 5 / # # !
9.7
the balance sheet date. However, adjustments to assets and liabilities are not appropriate for events occurring after the balance sheet date, if such events do not relate to conditions existing at the balance sheet date. “Contingencies” used in the Standard is restricted to conditions or situations at the balance sheet date, the financial effect of which is to be determined by future events which may or may not occur. Y L L A T O T S I S S O L E H T O S L A D N A E T A D T E E H S E C N A L A B E H T R E T F A D E R R U C C O SD A E HR EU R S I N & I
(i) Analysis:
G N I T S U J D A N O N S I T N E V E E H T D N A L A I R E T A M M I S E M O C E B T N E V E E H T EE R R OU F T E A R E N HN 4I
Conclusion:
T S E EY HN SA EPS CMH N K O AC A L L A E BH ET T HS T F NO TI A AT GGN NAU I T DO S EM I L X ElA R SSO NAF OWL I I T TR I I D P NU! OSH ET CS OA T DCN ENO T E C VY I I T R G R T S A E E HP R T A SN I YIY C B NRT EEN GVE NEM W I E T OS N I T O(R C E E ET V HA D 4DA
(ii) Analysis:
`
E C N E H D N A Y C N E G N I T N O C A F O N O I T I N l E D E H T O T N I TT l N TE O V NE SG E N I OT DS U TJ I D EA R ON F O E N R E A HS 4I
Conclusion:
EVENTS AFTER APPROVAL OF FINANCIAL STATEMENTS (BASED ON PARA NO. 3)
Q.11. A Limited Company dosed its accounting year on 30.6.2017 and the accounts for that period were considered and approved by the board of directors on 20th August, 2017. The company was engaged in laying pipe line for an oil company deep beneath the earth. While doing the boring work on 1.9.2017 it had met a rocky surface for which it was estimated that there would be an extra cost to the tune of 80 lakhs. You are required to state with reasons, how the event would be dealt with in the financial statements for the year ended 30.6.2017. Ans. : AS 4 Revised on Contingencies and Events Occurring after the Balance Sheet Date defines ‘events occurring after the balance sheet date’ as ‘significant events, both favourable and unfavourable, that occur between the balance sheet date and the date on which financial statements are approved by the Board of Directors in the case of a company’. E M A C E B T S O C P U H S U P O T D E T S C T EN PU XO EC C SA A WE H HT CF I O H L WA V EO CR NP EP DA I C F NO I E ET HA T D EE S H A CT R EE VT OF BA T AN EE HD T I V NE )
Analysis:
R E V E W O ( E T A D TY E T EI HR SO EH CT NU A! L G A N BI V EO HR T P RP E T ! F F A O GT NR I O R R UP CE C2 OE H TT N EN VI ED @ E NN AO TT I O N NE SM I TE I EB R Y OA F E M R E S I HH 4T
Conclusion:
3 $ 2 ! $ . ! 4 3 ' . ) 4 . 5 / # # !
9.8
Q.12. During the year 2015-16, R Ltd. was sued by a competitor for ` 15 lakhs for infringement of a trademark. Based on the advice of the company’s legal counsel, R Ltd. provided for a sum of ` 10 lakhs in its financial statements for the year ended 31st March, 2016. On 18th May, 2016, the Court decided in favour of the party alleging infringement of the trademark and ordered R Ltd. to pay the aggrieved party a sum of ` 14 lakhs. The financial statements were prepared by the company’s management on 30th April, 2016, and approved by the board on 30th May 2016. Ans. : As per AS 4 Revised , adjustments to assets and liabilities are required for events occurring after the balance sheet date that provide additional information materially affecting the determination of the amounts relating to conditions existing at the balance sheet date. FEYE O T R DL O TAA F N NE EME B MOPD S EL EE GA HR N TR S I FU A R O F C WT N C I N O RNET OOM I N S F IYE RV AV OO T RPE I T P N R E OA PEF H S MT I O T I CH C E I S AH U Y YA W BRAC -E DO EFHB U T TS S N T S EN A VE NE W O M TGE D R N R T T UT I A ,AO T S E S UL 2Y#J EDI A EEH AC CHT NTF N NA I G S NOAN I NSl ER OAE S U I A S EH CDI T T NKCUF T EREI O TL VADS M E I A N G EHO V EDTC O HAI R TL T R P LP T YI NA BWA )
Analysis:
T C E m E R O T R O ST HT I KE AP L M O C YS T BI DO RT A M WE PH UT NY OB I S D I I V OA RP PE EB O HT T T TR S UU J O D A# E DH L T U OY HB SD E D E T R ,C E 2D ED R R OA F W E A R E E HH 4T
Conclusion:
`
MIX QUESTIONS Q.13. Neel Limited has its corporate office in Mumbai and sells its products to stockists all over India. On 31st March, 2013, the company wants to recognize receipt of cheques bearing date 31st March, 2013 or before, as “Cheques in Hand” by reducing “Trade Receivables”. The “Cheques in Hand” is shown in the Balance Sheet as an item of cash and cash equivalents. All cheques are presented to the bank in the month of April 2013 and are also realized in the same month in normal course after deposit in the bank. State with reasons, whether each of the following is an adjusting event and how this fact is to be disclosed by the company, with reference to the relevant accounting standard. (i) Cheques collected by the marketing personnel of the company from the stockists on or before 31st March, 2013. (ii) Cheques sent by the stockists through courier on or before 31st March, 2013. (May 2013) (4 Marks) Ans. : R N E AMV OO SC I G YEN NHI ATD PFN MOA OS( CEY E EYN O HL A T P P FMM O O LEC E E NRE H NAT L OE F SN R O E NS POE SV GR I T NEA I PT T E GN KN E RI S TE A R MEP K RE EA R HME T YER BHA T E DSR O EAF T T C E N EE R L E L VH O CET GD SN N E IA UT QSY U EJ N HD A #AP
(i) Analysis:
-
3 $ 2 ! $ . ! 4 3 ' . ) 4 . 5 / # # !
E EGDC E HI N RS T R TA!AU SE E S O E KR I E C GR L U R L AQ B A A HMEA M V C RI HR E S ECO C H I R T D EAN 2 Y SB -E E H E E T T D H YE S D CA N OT I R L R C A P 4E E@ ML L R EO TMO F OE GCSR L S NE I BR F I T RP UEE E KQR O! REOINF S F H A T OO E N MCB H UDT E O EN R ER T OCA HO O T C M F D N A E OR O T E SSH E YS T TH E S NI UT I 4 A K K N Q PC CT EI O OI S K H MT T CN K S S O A EB ECCES O H HT ET EE T SH HH YETMTT BHF H O N O T RGI SF F L E U D E TO UON E N T QYN EHN ET I O TE L HI SMNE S T CB E R S AE VR FI UE O P LPJ GETS NCETS E N E I N T HUU A3 S Q OE L UA J ECH " C D CA C AEN H NHAOC T L ATA U S R SE E S " I T TE R L F O E O NAH.F NGT Y ONNEN SIIHA R T R N R NP E UWI M PC OEO R GCH UC N/S I E S SH T E O T E L T KNBC RELS Y L I V I A B D M%WA D E EDD HW HNNT A T O AIL YSHWL E BI O NS F T SCI N Y N E S C EI UEE L L QGUA O ENQ VP I I HT EU CNH G N FOCQI O #@ET @ HHN N CS U O3 UAO I T 3#C ! C DC ER L A E E N L T O P AE A CS$ H HT EA ST CTTAU E N # NE E O @ EV HS B (E 3A A Y FG N BEOI R TPNS T N O I S I EI X T S C E T E EI N L R L O A O I T D #D I N N A HO EHCC R C R ORAY A F N E TA B-S T T N RS E O S H RE E CET R R F P R A EH OAR -F D C TR EE O TB VN A S I R E O CST EES ENR O T D O A D E B R E EE L I L HR I I T UW T E RO H SC A A ECER D BHUAT Q GE E -E SU E TH UOHS QRC S EHE E HTH C R T S E CT N TT A ES F L HIAAA H K T S T B C E FO D I E U T EQ H NS T EEME VH UHN %T SCO
TO DHRN TL N G S E UUUVEO S O J OE O S D H ER HR AST PS E NE OEI ATN-RR E A P TR TD V O O E NTE NT E D 3 N SEE I !SE H E V E SE I OE TE RD A E H DCCP T E E N F R TA STO E ELEAA Y HAREDNR O T SBAR I E A T EEYOE S I E H F CT S HSE E HB NR SOC T P AE L H E E R L T A C N CO A F I BA I N S R HHACI D N L E T EWCA A T R R V F B N N A O I A I l E P R SC D-E E G E EOTT 2 N F UR S I I QER AT S E C ER S R P E HA E O F T CTEDUF E C H A QAE FH T T O EER A NTNDHGI OSI CN$ E E R I FAE BO TUO HH C EQFY CT L LEDANLN H O E A O I M I T I C#N T R E C E ET R UEE T N U HE L OML A T S C O O SVCACML S E A UG C YS EEN HN EH I HAD 4I BT T
TL E EGS R N A OR I S F NE R E OH U BC DT TC EF U OOTO C T N E DNF O EEF I I V T R EEA R S R A T CNAI S A W S G Y L A L E L E R WA 2 S YEO E L T T C T R A T E SN D PI T OSEE RIME PHEH 4 E ES R L T G B E N A C AU N VO TA OC U L MCBA MAEB T E IFA H FOD T S O T E EKE O R L E OH O A F BS S E EEEB H S CE T A NI CFA NOL EEA VRB U I G SE H H EOTC L R HC R E T EF A T NT HA )
(i) Analysis:
9.9
-
Conclusion:
(ii) Analysis:
-
Conclusion:
-
Q.14. State with reasons, how the following events would be dealt with in the financial statements of Pradeep Ltd. for the year ended 31st March, 2013:
(i) An agreement to sell a land for ` 30 lakh to another company was entered into on 1st March, 2013. The value of land is shown at ` 20 lakh in the Balance Sheet as on 31st March, 2012. However, the Sale Deed was registered on15th April, 2013. (ii) The negotiation with another company for acquisition of its business was started on 2nd February, 2013. Pradeep Ltd. invested ` 40 lakh on 12th April, 2013. (Nov. 2013) (4 Marks)
Ans. :
3 $ 2 ! $ . ! 4 3 ' . ) 4 . 5 / # # !
9.10
G N I T A L E R N O I T A M R O F N I E L T A NA OD I T T E I E D DH AS SE E C DN I A V L OA RB PE YH L T P T MA IG S N I T S I X LE I S R PN O !I T HI T D N O NC OE DH ET EO DT N A N l E H T H C NR I YA R A S T S S E C ED NE SD I DN NE R AA L FE O Y EE L H A T S R RO OF F SD T T E , S S P A E OE T D TA N R E0 MF TO S UT S J D N AE EM R E T OA F T E S R E L A HI 4C
Conclusion:
-
T SNS EI HS O T I T E I RI TDD E I E N L T I F OD B A N C A GIEE R NLHA D T I R NDE R Y UANE CSAH T CE NT OS O R SIO T TA A N F E NT S O I VT N M ET E R NNE M AET E M E T STDA I S E T S YUH L NJT A ADTI PACC E N MOF A F ONA N CRT l E OE RV NH E E ST HW E T N O OI NODD A(TE N T E FT EA O T VS A ES NDE OTH T I E N T I ETU S HS I U SAO Q DM CEEAH ACR C E I N HR AUT EL Q A HA FEO 4BR
(ii) Analysis:
RR SD E N OA HT T CS O NEN R O AI I F$A T O FU NOL ODA I V T R I E A S I R OE U Q"P CEO AH R ETP HFE T OK NTA I R OM PO ET RT S EN LH I E R PTM !NE I T ND A I T SES HSL O A KL I AC C L SN IA DN El FBF O O D L TU S N R EOE MHS TSU S S Y E E L N N VA B O NP A I I S N I EME C HOO E 4C TD
Conclusion:
`
Q.15. With reference to AS 4 “Contingencies and events occurring after the balance sheet date”, state whether the following events will be treated as contingencies, adjusting events or non-adjusting events occurring after balance sheet date in case of a company which follows April to March as its financial year. (i) A major fire has damaged the assets in a factory on 5th April, 5 days after the year end. However, the assets are fully insured and the books have not been approved by the Directors. (ii) A suit against the company’s advertisement was filed by a party on 10th April, 10 days after the year end claiming damages of ` 20 lakhs. (iii) It sends a proposal to purchase an immovable property for ` 30 lakhs in March. The book value of the property is ` 20 lakhs as on year end date. However, the deed was registered as on 15th April. (iv) The terms and conditions for acquisition of business of another company have been decided by March end. But the financial resources were arranged in April and amount invested was ` 40 lakhs. (v) Theft of cash of ` 2 lakhs by the cashier on 31st March but was detected the next day after the financial statements have been approved by the Directors. (May 2016) (5 Marks) Ans. : Y L L A T O T S I S S O L E H T O S L A D N A E T A D T E E H S E C N A L A B E H T R E T F A D E R R U C C O SD A E HR EU R S I N & I
(i) Analysis:
3 $ 2 ! $ . ! 4 3 ' . ) 4 . 5 / # # !
N I G N I T S U J D A N O N S I T N E V E E H T D N A L A I R E T A M M I S E M O C E B T N E V E E H T E R SU UT HA 4N
T S E EY HN SA EPS CMH N K O AC A L L A E BH ET T HS T F NO TI A AT GGN NAU I T DO S EM I L X ElA R SSO NAF OWL I I T TR I I D P NU! OSH ET CS OA T DCN ENO T E C VY I I T R G R T S A E E HP R T A SN I YIY C B NRT EEN GVE NEM W I E T OS N I T O(R C E E ET V HA D 4DA A S I E C N E H D N A Y C N E G N I T N O C A F O N O I T I N l E D E H T O T N I T TN l E TV O E NG SN E I T OS DU J TD I SA UN HO 4N
T N E S S A W Y T R E P O R P E L B A V O M T MN IU FO O C C LA A EF DO RS OK F O LO A B S OE PH OT RF PO E ER S U A S CO L NC EE VH I T G E ER HO T F E NB ) (iii) Analysis:
9.11 Conclusion:
(ii) Analysis:
Conclusion:
`
T EE EE R H G S AE OC NN A DL NA AB TE N H ET S E SR A O WF E LB A S OE PI OH RC PR EA HT YF L O N OH T SN A TO N M E VE EH GT N NI I T D S E UT J C D E AF NF OE NS AA W ST I E SN I T EA H 4MD Conclusion:
-
S I MS OS CE N RI E S HU T B O NF AOE FNA T O OD I SI T S T SE E I E NU I SQH UCS E BAC FHN O CA L NRA OAB I T E I F S H I O T U R QDE CNT AEF FEA O HG N STI NYR OBR I U T DC I EC D NDO I OC T CE N DDE NNV AEE EG MB N R I T D E S AU T J EHD HYA T N SAN !PA (iv) Analysis and conclusion:
-
L EA HI T C SN T A C N El F F E A H TT N EN VI ED H E C E HTR A T T A ES CS NT T I NS S DU EO R MN I O U A QED EH E R D STN F I SOE E R NA I T OE I I L T I Y I B D L AN A I I L C DON NCA E AH N ST l T E DE S NH S AT A R ONO T OF I TT S N A T EN N MI E TMM S RE UE T J TA D E T !DS
FD O N NA OT I Y N T T EI C R VO EE T E H GT DN U ET I! R OSG U F J N E D I BA V D O ENR VOP ONP R ! PAE PSH AET NMF EOO ECT BER B O ET P VI E A R H E S H T T N N E I M D E E T R FI A O T U S RQ LE E A IR I H C S NSI AAE NCR lEU H S ETO HYC L T BS ET I CF D NE O I HN 3 T (v) Analysis and conclusion:
`
DIVIDENDS (BASED ON PARA NO. 8.5)
Q.16. The Board of Directors of M/s. New Graphics Ltd. in its Board Meeting held on 18th April, 2017, considered and approved the Audited Financial results along with Auditors Report for the Financial Year ended 31st March, 2017 and recommended a dividend of ` 2 per equity share (on 2 crore fully paid up equity shares of 10 each) for the year ended 31st March, 2017 and if approved by the members at the forthcoming Annual General Meeting of the company on 18th June, 2017, the same will be paid to all the eligible shareholders.
Discuss on the accounting treatment and presentation of the said proposed dividend in the annual accounts of the company for the year ended 31st March, 2017 as per the applicable Accounting Standard and other Statutory Requirements. (May 2017) (5 Marks)
3 $ 2 ! $ . ! 4 3 ' . ) 4 . 5 / # # !
9.12
Ans. :
LED A S E I US C O NAL ACC NEI S lBD FEE T O A R LD A A V S OTD REN PEE H PS D AE I V EC I R ND OA F H LC E BAU TBS E U E BHC T ET N T E A A DY( T TI E LE EI M HBT I A SI TS EL CAAT N HN ASTE A T L A A M D BE ST E T Z EI S A HN I T X T S GE RO L E A NI C T F O E C A I R N T DTA A EOI GN R NL l A BO E L OT C R EA S D YE R S ST OT DNT O NEUN T EMA E DET H I ST T V A I ON T $S NI Analysis:
D E S O P O R P H C U S T 3N E E DM AE MA T ET BS L OA T I C DN EA R I N U Ql EO R T TS O E NT SO I SN DE NH ET N DI I V D I E D S DO EC L S OS PI OD RE PB RO OT F E NR OA I S S I D V ON RE D PI V OI .D
ERE D A H HE T T ,TY F SN O E I C HG I R H N OTI PF O T AD T E R E 'ESN T I WNAL T U A EO R R E .C E PN YCTE BAI ' DETL A EBH A D T T U NOTN ENC N A! ML LF MAEE OHHH CSTT F E O N R I L S EA E VV I R T O OLC R RI RE P C PP P !SA E R HR R T E F IT O F D A NN DS EO IR D AE G I D PL V N E I I O R T D B A H E L EE EL E HM YI R T A EWH YDHDS T L R N G A R A S NO R O I E "F D B S R K S OT M O CI E CN O !I B M Conclusion:
`
GOING CONCERN (BASED ON PARA NO. 8.6)
Q.17. An earthquake destroyed a major warehouse of P Ltd. on 30.4.2014. The accounting year of the company ended on 31.3.2014. The accounts were approved on 30.6.2014. The loss from earthquake is estimated at ` 25 lakhs. State with reasons, whether the loss due to earthquake is an adjusting or nonadjusting event and how the fact of loss is to be disclosed by the company. (RTP) Ans. :
Para 8.3 of AS 4 “Contingencies and Events Occurring after the Balance Sheet Date”, states that adjustments to assets and liabilities are not appropriate for events occurring after the balance sheet date, if such events do not relate to conditions existing at the balance sheet date.
EO CT NT AO L N A S BI EE HK T A NU OQ H TT S I R X A EE TO O T NE DU I D D ED KE AR R UU QC HC T O R A S ES O OL T R EEA URE O DF Y E ER L S A UEC I OHN H4A E N R l A W E T H F O N N I O D I E T E C S I UIN E RT T G A S O D E C D E T E R EE HH E 4S B
Analysis:
EYNEN HAOHO T T I I T GMT C R P NEM E U I T P T R A U T C S EDSSE ! S F T F A D E A S R E G T SH O NN E J I EA GST NEN MM ACUE D HNOT E CAC AS L T CS LA U A A UBALC L A SEA I S UH T C A N NT NH U EAE R MNK E DT lA A F RA D U A E D NH Q NEUT H S F I T AR FR T FO P A S RONE EE E E HT OH T NST I T FEUA O ERN EH A O H I TPT T S REE FE AO R R PU D A I Q E PMS E HH OUNT O T T T A CNN GR I NT I O I ST NN D E RB RV OUDEI CSECG CRENN AONOO C I REAGT E C A E N VNA T M I EE O R C T WS GO I I D OX F FN NO (E I I
D E T C A P M I S I N R E C N O C G N I O G F O N O I T P M U S S A G N I T N U O C C A L A T N E M A D N U F E R O F E R E H 4
Conclusion:
S H K A L R A E FY O L SA S I OC L N DA EN T l A E MH IT T R S O E F NS R AO T HC T I E WI R R$ E E HH T T E F GO OT T R EO KP AE U2 QE HH T T R A N EI D FE O S TL O C C AS F I ED HE T B D EL CU NO EH (S
`
3 $ 2 ! $ . ! 4 3 ' . ) 4 . 5 / # # !
9.13
Q.18. The accounting year of Dee Limited ended on 31st March, 2018 but the accounts were approved on 30th April, 2018. On 15th April, 2018 a fire occurred in the factory and office premises. The loss by fire is of such a magnitude that it was not possible to expect the enterprise Dee Limited to start operation again. State with reasons, whether the loss due to fire is an adjusting or non- adjusting event and how the fact of loss is to be disclosed by the company in the context of the provisions of AS 4 (Revised). (Nov. 2018) (5 Marks)
Ans. :
As per AS 4 Revised “Contingencies and Events occurring after the Balance Sheet Date”, an event occurring after the balance sheet date should be an adjusting event even if it does not reflect any condition existing on the balance sheet date, if the event is such as to indicate that the fundamental accounting assumption of going concern is no longer appropriate. TS EN D S S CO T O, I NT L I I EE3 RH D E E N T 4$DO F I L A C EA E Y HVN S TTA I R TO P C F NO R ES E P T T L XIU N N EFEO S I E NOOT R ATTP N A E FE MT L O B O SMAUN S E E NS T S S O A I I A SNE T MS A R Rl EE EL R ARC PI T N ECONO CNNOS S lA CO S N F IGL l O NE TI I FT DO OH NL AGT AA HE YVTH R OET OR D T P E U C P T I AA I F N N EEGI HRAAR O G T E MA F T NE F I A S DBHNA D T EU O CI E R T R U B R A R U SR U C FEC C O P CN O SOOO E I G T N E R lHERRI R A C l T S ERlTE S I HAYO X HE 4-BT T
Analysis:
DF EO R Y A PA EW R PY EB BY N OA T DP EM EO NC SE T H N UT OY CB CS AE R EU R I S T O N L EC SR EI HD E T D EN TT N EAU VUS EQA E S GD T NA N I T HE S UTM I J E WT D A AST I S NS L AA A SBC I I ENN O R A lIN T A l OD T S IT EU I UI QN DL I SAE S T ONO ,ON
Conclusion:
LN I R I PA G !A HS T N O I T NA R OE SP E O S I T R MA ET R S PO ET CE S lI F R O P R DE NT AN E YE R H OT T C R AO F F EL E HB T I S NS I O DP EM R I R UE CD CA OM ES R A lH RH OC J A I -H hW
Draft Notes to Account:
v S I S A B N O I T A D I U Q I L N O D E R A P E R P N E E B E V A H S T N E M E T A T S L A I C N A N l E H T E R O F E R E H 4
Advanced Accounting (Advanced Accounts) |CRACKER AUTHOR PUBLISHER DATE OF PUBLICATION EDITION ISBN NO NO. OF PAGES BINDING TYPE
: : : : : : :
Parveen Sharma, Kapileshwar Bhalla TAXMANN June 2022 5th Edition 9789356222632 720 PAPERBACK
Rs. : 725
| USD : 43
Description This book is prepared exclusively for the Intermediate Level of Chartered Accountancy Examination requirement. It covers the questions & detailed answers strictly as per the new syllabus of ICAI. The Present Publication is the 5th Edition & updated till 30th April 2022 for CA-Inter | New Syllabus | Nov. 2022/May 2023 exams. This book is authored by CA Parveen Sharma & CA Kapileshwar Bhalla, with the following noteworthy features: · Strictly as per Revised Syllabus of ICAI · Coverage of this book includes: o Past Exam Questions
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