Beruflich Dokumente
Kultur Dokumente
325
Roll No
: 1 :
1.
(a)
State the provisions relating to calculation of net profit for determining managerial
remuneration under section 198 of the Companies Act, 2013.
(b)
How will you deal with internally generated intangible assets in the books of account ?
(c)
Mention the expenses which should not be included in 'preliminary expenses'. Can
preliminary expenses be written-off against capital profit ?
(d)
(e)
How is revenue recognised in the statement of profit and loss of an enterprise as per
Accounting Standard (AS) 9 ? Explain in brief.
(5 marks each)
Attempt all parts of either Q.No. 2 or Q.No. 2A
2.
(a)
State the order of preference in which, the amount received from assets not specifically
pledged and amount contributed by the contributories, are distributed by the liquidator.
(b)
How are pre-acquisition losses of subsidiary companies shared and accounted for ?
(c)
S Ltd. issued 10,000, 12% debentures of `100 each at a discount of 5%. These debentures
are redeemable at a premium of 10% after 5 years.
You are required to show
(i)
(ii)
(d)
(e)
Explain in brief the Accounting Standard (AS) 18 pertaining to related party transactions.
(3 marks each)
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: 2 :
OR (Alternate question to Q.No. 2)
2A.
(i) Sun Ltd. issued 1,00,000 equity shares. The whole of the issue was underwritten as
follows :
Marigold
35%
Lotus
25%
Tulip
30%
Lily
10%
Applications for 80,000 shares were received in all; out of which applications for
20,000 shares had the stamp of Marigold; 15,000 that of Lotus; 22,000 that of Tulip
and 8,000 of Lily. The remaining 15,000 applications did not bear any stamp. Determine
the liability of each underwriter.
(ii) What do you mean by profit or loss prior to incorporation ? How is the profit or loss
prior to incorporation treated in the books of a company ?
(iii) What do you understand by 'corporate restructuring' ? Why is corporate structuring carried
out ?
(5 marks each)
3.
(a)
Moon Ltd. has gone into liquidation on 30th May, 2013. The details of members
who have ceased to be member within one year ('B' contributories) along with the debts
that could not be paid out of realisation of assets and contribution from present members
('A' contributories) are given below. Shares are of `10 each and `7 are paid-up.
Shareholders
No. of shares
transferred
Date of transfer
Proportionate
unpaid debts (`)
10,000
30.04.2012
30,000
12,000
15.06.2012
50,000
15,000
18.10.2012
92,000
8,000
24.12.2012
1,05,000
5,000
12.02.2013
1,10,000
Contd ........
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: 3 :
(b)
Calculate the managerial remuneration from the following particulars of Zen Ltd. The
company has only one Managing Director :
`
Net profit
20,00,000
Net profit is calculated after considering the following :
Depreciation
4,00,000
Preliminary expenses
1,00,000
Provision for tax
31,00,000
Director's fee
80,000
Bonus
1,50,000
Profit on sale of fixed assets
(original cost `2,00,000; WDV `1,10,000)
1,55,000
Provision for doubtful debts
90,000
Scientific research expenditure
(for setting-up new laboratory)
2,00,000
Managing Director's remuneration paid
3,00,000
Other information :
Depreciation allowable is `3,50,000.
Bonus liability as per the Payment of Bonus Act, 1965 is `1,80,000.
Looking at the past records of debtors, provision for doubtful debts is not required.
Rate of managerial remuneration is 5%.
(5 marks)
(c)
Thin Ltd. was registered with an authorised capital of 10,00,000 equity shares of `10
each and it acquired the running business of Ganesh at an agreed price of `25,00,000.
The balance sheet of Ganesh on the date of acquisition was as under :
`
I
EQUITY AND LIABILITIES
(1) Shareholders' funds
(a) Share capital
20,00,000
(b) Reserves and surplus
General reserve
2,00,000
(2) Non-current and current liabilities
(a) Current liabilities
Trade payables
5,00,000
Bills payable
3,00,000
TOTAL
30,00,000
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: 4 :
`
II
ASSETS
(1)
Non-current assets
(a) Fixed Assets
Freehold premises
10,00,000
8,00,000
Current assets
(a) Inventories
2,00,000
2,75,000
less : provisions
25,000
2,50,000
(c) Bank
7,50,000
TOTAL
30,00,000
The consideration was to be discharged by the issue of 2,00,000 equity shares of `10
each as fully paid-up and the balance in cash.
Journalise the transactions in the books of Thin Ltd. Also prepare the opening balance
sheet of the company.
(5 marks)
4.
(a)
Note No.
I
Shareholders' funds
(a)
75,000
1
27,000
Current liabilities
(a)
Trade payables
36,250
11,250
(c)
22,500
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1,72,000
Contd ........
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: 5 :
II
Note No.
97,500
4,500
ASSETS
(1) Non-current assets
(a) Fixed assets
(b) Preliminary expenses
(2) Current assets
(a) Stock
(b) Trade receivables
(c) Cash at bank
TOTAL
Note No. 1 :
Reserves and surplus
General reserve
Surplus
Note No. 2 :
Fixed assets
Land and building
Plant and machinery
Trade marks
18,000
33,000
19,000
1,72,000
`
15,000
12,000
27,000
42,000
48,000
7,500
97,500
The plant is worth `45,000 and land and building `90,000. Out of the total debtors,
`3,000 are bad.
The profits of the company have been as follows :
`
31.03.2012
30,000
31.03.2013
33,750
31.03.2014
39,750
It is the company's practice to transfer 25% of profits to general reserve. Similar type
of companies earn at 10% of the value of their shares. Goodwill is `60,000. Ignore
taxation.
Ascertain the value of shares of the company using
(i) Intrinsic value method; and
(ii)
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(7 marks)
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325
: 6 :
(b)
The balance sheets of H Ltd. and its subsidiary S Ltd. as on 31st March, 2014 are given
below :
H Ltd.
(`)
I
S Ltd.
(`)
(`)
(`)
15,00,000
3,00,000
6,00,000
Surplus
3,00,000
2,25,000
9,00,000
75,000
3,00,000
4,50,000
1,50,000
28,50,000
7,50,000
II ASSETS
(1) Non-current assets
(a) Fixed assets
(i) Machinery
9,00,000
2,70,000
(ii) Furniture
1,50,000
51,000
13,20,000
23,70,000
4,29,000
7,50,000
4,80,000
28,50,000
7,50,000
Balance in general reserve and statement of profit and loss (Cr.) of S Ltd. stood
at `75,000 and `45,000 respectively on the date of acquisition of its 80% shares
by H Ltd.
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Contd ........
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: 7 :
(ii)
Machinery (book value `3,00,000) and furniture (book value `60,000) of S Ltd.
were revalued at `4,50,000 and `45,000 respectively for the purpose of fixing
the price of its shares. Book value of other assets remaining unchanged. These
values are to be considered for consolidation purpose.
From the above balance sheets and additional information, prepare a consolidated balance
sheet as at that date.
(8 marks)
PART B
5.
(a)
(b)
(c)
What are the qualifications and disqualifications prescribed under the Companies
Act, 2013 for appointment of auditors ?
Discuss the provisions relating to rotation of auditors under the Companies Act, 2013.
What are the services which cannot be rendered by a statutory auditor of a company
under section 144 of the Companies Act, 2013 ?
(5 marks each)
Attempt all parts of either Q.No. 6 or Q.No. 6A
6.
(a)
(b)
(c)
Audit working papers are of great need to auditors in discharge of their duties. In what
way is it helpful to them ? Discuss.
What is 'internal check' ? Distinguish between 'internal check' and 'internal audit'.
What are the objectives of review of management information system ?
(5 marks each)
OR (Alternate question to Q.No. 6)
6A.
(i) What points should be considered by the auditor while verifying the fixed assets of a
company ?
(ii) Discuss the procedure of issuing auditing standards.
(iii) Explain the role of CAG in the functioning of financial committees of the Parliament.
(5 marks each)
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2/2014/CAAP (N/S)
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