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PART - I
Case Scenario 1:

CNC
Jay Ltd. submits the following data extracted from the Final Accounts as on
31 March, 2023:

Equity Share Capital 5,00,000

50,000 Equity shares of 10 each
Profit & Loss (Dr. balance) (50,000)
9% Debentures 2,00,000
Loan from Bank
Advance given to suppliers of goods
CNC 3,00,000
45,000
Provision for tax 14,000
Plant & Machinery 4,50,000
Furniture & Fixtures 85,000
Investment in Star Ltd. 1,25,000
10,000 equity shares of? 10 each
Sundry Debtors 70,000
Cash & Bank Balance 65,500
CNC
Additional information given by Jay Ltd. :
On 31% March, 2023 Jay Ltd. de nstruct the company for which
necessary resolution was passed. Ac s decided that :
(a) 9% Debentures to be setled i g them 15,000 Equity shares of
710 each.
(b) Equity shareholders will giv their capital in exchange for
allotment of new 11% Debentu 00
(c) Balance of Profit & Loss to be written off.
(d) Equity shares issued for 1,00,000.
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In addition to above, following information was also presented by Jay Ltd. on
1 April, 2023 :
(a) CNO
Interest is received on advances given to suppliers of goods 3,000.
(b) Taxation liab ettled at R14,000.
(c) A debtor of is insolvent, only 40% of his dues are recovered from his
estate.

(d) Dividend is received on Investment in Star Ltd. 1 per equity share invested.
(e) Part of Plant and Machinery is sold at a loss of 3,000 (book value 15,000)

Based on the information given in above Case Scenario, answer the

Question No. 1-4:
CNC following

1. The Balance o Share Capital after internal reconstruction is : 2

(A) ?4,50,00u

(B) ?6,50,000

(C) 5,50,000

(D) 7,50,000
CNC
2 The amount of w from operating activity is: 2
(A) 5,000
(B) 2,000
(C) ?12,000
(D) 15,000
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The amount of Cash Flow from investing Activity is :
3

(A) 25,000
CNC 2

(B) 28,000
(C) ?15,000

(D) 22,000

4 What is the amount of closing Cash and Cash equivalents as on 1 April, 2023 ?

(A) ? 92,500
CNC 2

(B) ?1,92,500
(C) ? 1,27,000

(D) ? 1,98,500

5. "Fixed Asset held for sale"" will be classified in the Balance Sheet as per

Schedule III of the Companies Act as: CNC 2

(A) Current Asset

(B) Deferred Tax Assets

(C) Non-Current Asset

(D) Long term Investments

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Case Scenario -2:

Mr. Vikram took a loan of ? 6,00,000 carrying interest @10% p.a. on 1 August,
2023 to purchase raw material. He purchased 4000 units of raw material @* 125
per unit. Replacement cost of raw material as on 31 " March, 2024 is * 100 per unit.
Labour charges and variable overheads incurred are 10 CNG 000 to produce 1000
units of finished goods.
1000 units of Finished goods are produced with raw n (for every unit of
finished goods produced, 2 units of raw material are requ et realizable value
of finished good is 300 per unit. All the finished goous produced are lying in
stock as on 31" March, 2024.
There is no opening stock of raw material and finished goods.
Mr. Vikram used 1500 units of raw material to construct an Asset (Qualifying
Asset). Labour and other overhead charges incurred on construction of asset are
? 90,000. Mr. Vikram also paid 15,000 to install the asset at Factory premises.
Mr. Vikram used Balance of loan proceeds of ? 1,00,000 to invest in Equity Shares
CNC
of P. Ltd. He purchased 9,000 Equity shares (Face Value 10 each) for ? 1,00,000
on 25th March, 2024.
The P. Ltd declared and paid dividend @ 20 % on 30 for previous year
2023-24,

Based on the information given in above Case Scenario, answer the following
Question No. 6 -9 :
6. CNC
What is the carrying amount of investment as on 31* March, 2024 as per
AS 13 and suggest the treatment of dividend receive Ltd. ? 2
(A) Carrying amount of Investment as on 31 Ma is 90,000 and
the dividend is credited to Profit & Loss A/c.
(B) Carrying amount of Investment as on 31 Ma is 72,000 and
the dividend is deducted from the nominal valu ment.
(C) Carrying amount of Investment as on 31* March, 2024 is 1,00,000 and
the dividend is credited to Profit & Loss A/c.
(D) Carrying amount of Investment as on 31t March, 2024 is 82,000 and
the dividend is deducted from the cost of investment.

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What would be the value of closing stock of Raw MaterialX and Finished
Goods as on 31 March 2024? 2
(A) Closing Stock of Raw Material X 50.000 and closing stock of Finished
Goods 3,00,000
(B) Closing Stock of Raw Material X 50.000 and closing stock of Finished
Goods 3,50,000 CNG
(C) Closing Stock of erial X 62,500 and closing stock of Finished
Goods 3,50,000
(D) Closing Stock of erial X ? 62,500 and closing stock of Finished
Goods 3,00,000

Cost of Self Constructed Asset as per AS 10 will be ? 2

(A) ? 2,77,500 CNC

(B) ?2,92,500
(C) ?3,05,000
(D) 2,90,000

.
As per AS 16 what will be the amount of interest to be capitalized and amount
of interest to be charged to Profit & Loss A/c ? 2

(A) ? 12,500interest to be capitalised and ? 20,833 interest to be charged to

Profit & Loss A/c.
CNO
(B) ? 12,500 interest tocbe capitalised and ? 27,500 interest to be charged to
Profit & Loss A/c

(C) ? 19,167 interest italised and 20,833 interest to be charged to

Profit & Loss A/c

(D) Whole of? 40,000 interest to be charged to Profit & Loss A/c.

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Case Scenario -3:

Kumar on 1" Feburary, 2024 but at

Kay Ltd. sold goods of
22,00,000
these goods
to CNC
Mr.
wacn
Ravi
deliueredon 10th April 2024.
the request of the buyer, to
roval basis on 1 January, 2024
Kay Ltd. also sold ? 2,00,000 goo months after which they were
s 3
Sheetal Enterprises. The period of and approval for 50% of
considered sold. Buyer sent disappro % of goods
goods till 31 MMarch, 2024.
has commenced legal action against Kay Ltd. for supply of faulty
Mr. Ravi Kumar advised that it is not remote
damages. The lawyers of Kay Ltd. have
goods to claim
that resources may be required to settle the claim. Legal cost to be incurred
yet the claim
ifrespective of the outcome of the case is 45,000. Settlement amount if
is required to be paid 5,00,000. CNC suffered a heavy loss due to an
Sheetal Enterprises, a trade receivableofKay Ltd.
earthquake that occurred on 30th Ma 24. The loss was not covered by any
insurance policy. In April, 2024, Shee Z prises became bankrupt. The Balance
due from Sheetal Enterprises as on 31 ,2024 is? 75,000.

Kay Ltd. makes provision for doubtful debts @ 5%.

Based on the information given in above Case Scenario, answer the following
Question No. 10 12:
CNC
10. What is the amount to be recogn evenue as per AS 9 in the books of
Kay Ltd. as on 31t March, 2024 1 2
(A) ? 1,50,000
(B) 7 23,50,000
(C) ? 23,00,000
(D) ?1,00,000

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11. What will be the treatment of leoal cost
and claim for legal action commenced
Dy Mr. Kavi Kumar in the Books of Kay Ltd. as on 31t
March, 2024 as per
AS 29 ?
2

(A) Create aProvision for

5,00,000
(B) Create a Provision for CNC
5,45,000
(C) Create a Provision for 45,000 a disclosure of contingent
liability of R5,00,000
(D) Make a disclosure of contingent liability of ? 5,45,000

CNC
12. What is the treatment of insolvency of SI erprises in the Books of Kay
Ltd, as on 31 March, 2024 as per AS 4

(A) An Adjusting Event, provision of 3,750 should be made in the Final

Accounts for the year ended 31" March, 2024.

(B) An Adjusting Event, full provision of 75,000 should be made in the

Final Accounts for the year ended h, 2024.
DNO
(C) A Non-adjusting event, no provis uired to be made as Sheetal

Enterprises became bankrupt in April, 2024.

(D) ANon- adjusting event, only disclosure is required in the Final Accounts
for the year ended 31t March, 2024.
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in R Ltd.
13. PLd. has 60% voting right in Q Ltd. O Ltd. has 20% voting right
Listed
Also, P Ltd. directly enjoys voting right of 14% inR Ltd. R Ltd. is a
Company and regularly supplies goods to P Ltd. The Management of R Ltd.
has not disclosed its relationship with P L preparing Financial
CNC
Statements of P Ltd., which entities would you as related parties with
2
reference to AS-18?
(A) RLtd.

(B) QLtd.
(C) QLtd. and R Ltd.
D) Neither of QLtd. or RLtd.
CNC
14. A Mechinery was given on 3 years lease by of the machinery for
equal annual lease rentals to yield 20% profit margu UI cost of the machinery,
which is 3,00,000. Economic life of the machinery is 5 years, and estimated
output from the machinery in 5 years is as follows : 2

Year I 50,000 units Year II 60,000 units

Year III 40,000 units Year Iv 65,000 units

Year V 85,000 units.

CNC
Compute Annual Lease Rent.

(A) 60,000
(B) 730,000
(C) ? 50,000
(D) 736,000
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15. A Ld hat 1.s0,000 shares af commonspk anmng nF AT
Adeitonal S0,000 shares were issei gr ENuember 23 m STs
were bought back on 1 FebTar 2004 Clcuiae e weg EVT
2
Aumber atf shares qutstanding ar e vear endei cn 31Mrct 2 S
(A) 1,65500 shares
B) 134S00 shares CNG
(C) 1,76,167 shares
D) 1,23,833 shares

CNG

CNC

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