24_7985final_adv_account_sn_2004_gr1.pdf - PAPER \u2013 1 ADVANCED ACCOUNTING Answer all questions Working notes should form part of the answer Wherever

24_7985final_adv_account_sn_2004_gr1.pdf - PAPER – 1...

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PAPER – 1 : ADVANCED ACCOUNTING Answer all questions. Working notes should form part of the answer. Wherever necessary, suitable assumptions may be made by the candidate. Question 1 The following are the summarised Balance Sheets of PD Co. Ltd. and SD Co. Ltd. as on 31.3.2004. Liabilities PD Co. Ltd. SD Co. Ltd. Rs. Rs. Share Capital: Authorised 70,00,000 30,00,000 Issued and Subscribed Capital Equity shares of Rs. 10 each fully paid 50,00,000 20,00,000 Capital Reserve 5,00,000 3,10,000 Revenue Reserve 8,50,000 75,000 Profit and Loss Account 4,00,000 2,80,000 Sundry Creditors 2,50,000 2,25,000 Bills Payable 1,00,000 10,000 71,00,000 29,00,000 Assets PD Co. Ltd. SD Co. Ltd. Rs. Rs. Land and Buildings 20,00,000 15,20,000 Plant and Machinery 20,00,000 8,00,000 Furniture 5,00,000 1,60,000 Investments 16,10,000 - Stock 3,40,000 1,00,000 Sundry Debtors 3,60,000 2,00,000 Bills Receivable 50,000 40,000 Bank 2,40,000 80,000 71,00,000 29,00,000
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FINAL EXAMINATION : NOVEMBER, 2004 4 PD Ltd. acquired 80% shares of SD Ltd. on 30.09.2003 at a cost of Rs. 18,10,000. On 1.10.2003 SD Ltd. declared and paid dividend on Equity Shares. PD Ltd. appropriately adjusted its share of dividend in Investment Account. On 1.4.2003, the Capital Reserve and Profit and Loss Account stood in the books of SD Ltd. at Rs. 50,000 and Rs. 2,75,000 respectively. Land and Buildings standing in the books of SD Ltd. at Rs. 16,00,000 on 1.4.2003, revalued at Rs.20,00,000 on 1.10.1993. Furniture, which stood in the books at Rs. 2,00,000 on 1.4.2003 revalued at Rs.1,50,000 on 1.10.2003. In both the cases the effects have not yet been given in the books. SD Ltd. bought an item of machinery from PD Ltd. on hire-purchase basis. The following are the balances in respect of this machinery in the books on 31.03.2004: Rs. Instalment due 20,000 Instalment not due 8,000 Hire-purchase stock reserve 1,600 The above items stood included under appropriate heads in Balance Sheet. Prepare a Consolidated Balance Sheet of PD Ltd. and its subsidiary SD Ltd. as at 31.03.2004, complying with the requirements of AS-21. (16 marks) Answer Consolidated Balance Sheet of PD Co. Ltd. with its subsidiary SD Co. Ltd. as on 31st March, 2004 Liabilities Rs. Rs. Assets Rs. Rs. Share Capital: Fixed Assets: Authorised 70,00,000 Land and buildings Issued and subscribed PD Ltd. 20,00,000 Equity shares of Rs. 10 each, fully paid up 50,00,000 SD Ltd. (W.N. 2) Plant and machinery 19,50,000 39,50,000 Minority interest (W.N. 5) 6,14,000 PD Ltd. 20,00,000 Reserves and surplus: Capital reserve (W.N. 8) 12,18,000 SD Ltd. 8,00,000 28,00,000 Revenue reserve (W.N. 9) 8,80,000 Less : Unrealised profit Profit and loss account 4,92,400 on hire purchase (W.N. 10) Current liabilities and provisions: transaction Furniture PD Ltd. 5,600 5,00,000 27,94,400 Current liabilities SD Ltd. (W.N. 2) 1,35,000 6,35,000
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PAPER – 1 : ADVANCED ACCOUNTING 5 Sundry creditors PD Ltd. 2,50,000 Current assets, loans and advances: SD Ltd. 2,25,000 Current assets 4,75,000 Stock Less : Mutual hire purchase indebtedness Bills payable 28,000 4,47,000 PD Ltd. SD Ltd. 3,40,000 1,00,000 4,40,000 PD Ltd. SD Ltd. 1,00,000 10,000 1,10,000 Less : Hire purchase instalment not due 8,000 4,32,000 Sundry debtors PD Ltd. 3,60,000 SD Ltd. 2,00,000 5,60,000 Less : Hire purchase Instalment due 20,000 5,40,000 Loans and advances: Bills receivable PD Ltd. 50,000 SD Ltd. 40,000 90,000 Cash and Bank Balances: Bank PD Ltd. 2,40,000 ________ SD Ltd. 80,000 3,20,000 87,61,400 87,61,400 Working Notes: 1. Analysis of reserves and profits of SD Co. Ltd. as on 31.03.2004.
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