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4. Accounting

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1. XYZ Ltd exported goods for $1000 in Janurary 2016(exchange rate Rs. 50). The amount was received in June 2016 (exchange rate Rs. 52). Company closes its books of accounts on 31st March. The exchange rate on 31st March was Rs. 51. Foreign exchange gain /loss on Balance sheet date will be: 

 
 
 
 

2. XYZ Ltd purchased machinery for Rs. 300 lakhs on 30.06.2016 . Transport charges were 1% on the quoted price and installation charge come to 2% ont the quoted price. A loan of Rs. 100 lakhs was taken from the bank on which interest at 12% p.a was to be paid. Machinery was ready to use on 01.09.2016, however it was actually put to use only on 01.11.2016. Cost of Machine to be capitalised as per AS 10 will be:

 
 
 
 

3. XYZ Bank Limited acquires 76 percent of the Share Capital of Y Ltd on conversion of loans given by the bank to company. The conversion resulted on account of default by the company to comply with the loan covenants. XYZ Bank ltd intends to dispose of the investments as soon as possible to recover its debt. As per AS-21 whether the XYZ Bank limited is :

 
 
 
 

4. XYZ Pvt Ltd had a paid up capital of Rs. 20 Crores divided into equity shares of Rs. 10 each as on 31.03.2015. During the financial year   2015-16 company issued bonus shares in the ratio of 1:1. The Net profits after tax for the years 2014-15 and 2015-16 are Rs. 10 Crores and Rs. 15 Crores respectively. The EPS for two years will be

 
 
 
 

5. XYZ Ltd purchased a Machinery for re sale from China for $10,000. It has entered into currency option contract for purchase of foreign exchange to pay for Machinery and paid a premium of Rs. 17000/-. Machinery has to be classified  in Cash Flow Statement as

 
 
 
 

6. XYZ Ltd received an actuarial valuation for the first time for its pension scheme which revealed a surplus of Rs. 6 lakhs. It wants to spread the same over the next two years by reducing the annual contribution of Rs. 2 Lakhs instead of Rs. 5 Lakhs. The average remaining life of employees is estimated to be 6 years. Answer in consonance with AS 15

 
 
 
 

7. XYZ Pvt Ltd is engaged in the business of newspaper and radio broadcasting. It operates through different brand names. During the FY 2015-16 it incurred substantial amount on external trade, business communication and branding expenses by participation in various corporate social responsibility initiatives. The Company expects to benefits by this expenditure by attracting new customers over a period of time and accordingly it has capitalized the same under brand development expenses as intangible asset and intends to amortize the same over the period in which it expects to benefit to flow. As per AS 26 same

 
 
 
 

8. Rahul Ltd  prepared Interim Financial reporting and shows net profit of Rs. 6,00,000 after incorporating the following .

 

 

 
 
 
 

9. XYZ Ltd purcahsed goods at cost of Rs. 40 Lakhs. 75% of the stocks were sold. The expected sales value is Rs. 11 Lakhs and commission at 10% on sale is payable to the agent. Closing Stock for year ended 31.03.2016 will be:

 
 
 
 

10. XYZ Ltd sold goods to Y Limited worth Rs 25 Lakhs during F.Y 2015-16. Mr Rahul Managing Director And CEO of XYZ Ltd owns aprx 100 percent capital of Y Limited. Sales were made at normal course of business and at arm’s length prices. In reference to AS-18 whether:

 
 
 
 

11. XYZ Ltd purchases an oil well for $100 million. It estimates that the well contains 250 million barrels of oil. The oil well has no salvage value. If the company extacts and sells 10,000 barrels of oil during the first year. Calculate and determine with reference to IFRS, how much depletion expense should be recorded. 

 
 
 
 

Question 1 of 11

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