Advance Accounting Exam Paper
PAPER – 1 : ADVANCED ACCOUNTING Answer all questions. Working notes should form part of the answer. Question 1 The following information has been extracted from the Books of ‘X’ Limited group (as at 31 st December, 2006):
X Ltd. Rs. Share capital (Fully paid equity shares of Rs.10 each) Profit and Loss Account Dividend received: From Y Ltd. in 2005 From Y Ltd. in 2006 From Z Ltd. in 2006 Current Liabilities 40,000 11,70,000 60,000 60,000 36,000 Y Ltd. Rs. Z Ltd. Rs. Fixed Assets Less Depreciation Investment at Cost Current Assets 4,20,000 6,30,000 1,20,000 3,76,000 4,00,000 60,000 5,22,000 --40,000 X Ltd. Rs. Y Ltd. Rs. Z Ltd. Rs.
8,00,000 2,10,000
6,00,000 1,90,000
4,00,000 1,28,000
10,000 8,36,000
34,000 5,62,000 11,70,000 8,36,000 5,62,000
All the companies pay dividends of 12 percent of paid-up share capital in March following the end of the accounting year. The receiving companies account for the dividends in their books when they are received. ‘X’ Limited acquired 50,000 equity shares of Y Ltd. on 31 st December, 2004. ’Y’ Limited acquired 30,000 equity shares of Z Ltd. on 31 st December, 2005. The detailed information of Profit and Loss Accounts is as follows: X Ltd. Rs. Balance of Profit and Loss Account on 31 st December, 2004 after dividends of 12% in respect of calendar year 2004, but excluding dividends received 86,000 Y Ltd. Rs. 78,000 Z Ltd. Rs. 60,000
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FINAL EXAMINATION : MAY, 2007
calendar year 2004, but excluding dividends received Net profit earned in 2005 Less – Dividends of 12% (paid in 2006) Net profit earned in 2006 (Before taking into account proposed dividends of 12% in respect of calendar year 2006)
86,000 1,20,000 2,06,000 96,000 1,10,000 1,00,000
78,000 84,000 1,62,000 72,000 90,000 1,00,000
60,000 56,000 1,16,000 48,000 68,000 60,000
2,10,000 1,90,000 1,28,000 Taking into account the transactions from 2004 to 2006 and ignoring taxation, you are required to prepare: (i) The Consolidated Balance
X Ltd. Rs. Share capital (Fully paid equity shares of Rs.10 each) Profit and Loss Account Dividend received: From Y Ltd. in 2005 From Y Ltd. in 2006 From Z Ltd. in 2006 Current Liabilities 40,000 11,70,000 60,000 60,000 36,000 Y Ltd. Rs. Z Ltd. Rs. Fixed Assets Less Depreciation Investment at Cost Current Assets 4,20,000 6,30,000 1,20,000 3,76,000 4,00,000 60,000 5,22,000 --40,000 X Ltd. Rs. Y Ltd. Rs. Z Ltd. Rs.
8,00,000 2,10,000
6,00,000 1,90,000
4,00,000 1,28,000
10,000 8,36,000
34,000 5,62,000 11,70,000 8,36,000 5,62,000
All the companies pay dividends of 12 percent of paid-up share capital in March following the end of the accounting year. The receiving companies account for the dividends in their books when they are received. ‘X’ Limited acquired 50,000 equity shares of Y Ltd. on 31 st December, 2004. ’Y’ Limited acquired 30,000 equity shares of Z Ltd. on 31 st December, 2005. The detailed information of Profit and Loss Accounts is as follows: X Ltd. Rs. Balance of Profit and Loss Account on 31 st December, 2004 after dividends of 12% in respect of calendar year 2004, but excluding dividends received 86,000 Y Ltd. Rs. 78,000 Z Ltd. Rs. 60,000
4
FINAL EXAMINATION : MAY, 2007
calendar year 2004, but excluding dividends received Net profit earned in 2005 Less – Dividends of 12% (paid in 2006) Net profit earned in 2006 (Before taking into account proposed dividends of 12% in respect of calendar year 2006)
86,000 1,20,000 2,06,000 96,000 1,10,000 1,00,000
78,000 84,000 1,62,000 72,000 90,000 1,00,000
60,000 56,000 1,16,000 48,000 68,000 60,000
2,10,000 1,90,000 1,28,000 Taking into account the transactions from 2004 to 2006 and ignoring taxation, you are required to prepare: (i) The Consolidated Balance