Private company limited by shares

Advice to BPLT Ltd about the treatment of the following in the final statement of accounts for the y

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Need Answer Sheet of this Question paper Contact us at answersheethelp@gmail.com M: 7019944355 ACCOUNTS CASE STUDIES Q1) Advice to BPLT Ltd about the treatment of the following in the final statement of accounts for the year ended on 31st March 2002. A claim lodged with the railways in March 1999 for loss of goods of Rs 2,00,000 had been passed for payment in March 2002 for Rs 1,50,000. No entry was passed in the books of company, when the claim was lodged. Q2) Y. Co Ltd used certain resources of X Co Ltd. In return X Co. Ltd receives Rs 10 lakhs and Rs 15 lakhs as interest and royalties, respectively from Y Co Ltd during the year 2001-2002 you are required to state whether and on what basis their revenue can be recognized by X Co Ltd? Q3) On December 1, 2001 Royal Co. purchased Rs 4,00,000 worth of land for a factory site. Royal razed an old building on the property and sold the material its salvaged from the demolition. Royal incurred additional costs and realised salvage proceeds during December 2001 as follows : Demolition of old building Rs. 50,000 Legal fees for purchase contract and Rs. 10,000 recording ownership Title guarantee insurance Rs. 12,000 Proceeds from Sale of Salvaged Materials Rs. 8,000 In its December 31, 2001 Balance Sheet Royal Co. should report a balance in the land account. Q4) The information of cash flow generated by two companies X Ltd and Y Ltd. Belonging to same industry is as follows? F. Y. 2004-2005 Cash Flow Statement X Ltd. Y Ltd Rs. Rs. Opening Balance 18,000 20,000 Cash Flow from Operating activities Receipts from Sale of goods 5,000 30,000 Sale of fixed assets 20,000 3,000 Cash Flow from financing activities 20,000 2,000 amount borrowed Company X claims that its cash generating ability is better than that of Y Ltd. Do you agree? Comment on the cash generating ability of both companies? Q5) SSS Ltd. Acquired the fixed assets of Rs 500 lakhs on which it received the grant of 10%. What will be the cost of the fixed assets as per AS-12 and its presentation in the Balance Sheet? Q6) On 01/04/2001 Shekhar had 25,000 equity shares of DNA Ltd at a book value of Rs 15 per share (Face value of Rs 10) on 20/06/2001 he purchased another 5000 shares of the company at Rs 16 per share. The director of DNA Ltd announced a bonus and right issue. No dividend was payable on those issues. The terms of the issue were follows? Bonus Basis 1:6 (dated 16.08.2001), Rights basis 3:7 (dated 31.08.2001), Price Rs 15 per share. Due date for payment (30.09.2001) shareholders can transfer their rights in full or in part. Accordingly, Shekhar sold 33% of his entitlement to Sundar for consideration of Rs 2 per share. Dividends for the year ended 31.03.2001 at the rate of 20% were declared by DNA Ltd and received by Shekhar on 31.10.2001. On 15.11.2001 Shekhar sold 25000 equity shares at premium of Rs 5 per share. You are required to prepare in the books of Shekhar : a) Investment account b) Profit & Loss Account. For your exercise, assume that books are closed on 31.12.2001 and market price of shares on that date is Rs 13 per share.