IPCC Gr. II (Solution of May - 2015) · PDF fileIPCC Gr. II (Solution of May - 2015) Paper ......
Transcript of IPCC Gr. II (Solution of May - 2015) · PDF fileIPCC Gr. II (Solution of May - 2015) Paper ......
SolvedScanner Appendix
IPCC Gr. II(Solution of May - 2015)
Paper - 5 : Advanced Accounting
Chapter - 2: Accounting Standards2015 - May [1] {C} (a), (b), (c), (d)(a) C As per AS - 9, Revenue Recognition, the reimbursements can be
recognized only when it is virtually certain that the reimbursementwill be received when the enterprise settles the obligation and alsothe potential loss to an enterprise may be reduced or avoidedbecause a contingent liability is matched by a related counter-claimor claim against a third party. In such cases, the amount of provision is determined after taking intoaccount the probable recovery under the claim if no significantuncertainty as to its measurability or collectability exists.
C In this case, the provision for salary to employees ` 1,250 lakhs willbe ultimately collected from the client; as per the terms of thecontract. So, the liability of ̀ 1,250 lakhs is matched by the counter -claim from the client. Therefore, the provision for salary ofemployees should be made after reducing the claim to be madefrom the client. It appears that the whole amount of ` 1,250 lakhs isrecoverable from client and there is no significant uncertainty aboutthe collection. Hence, the net charge to profit & loss account shouldbe Nil.
C Here, the opinion of the Accountant regarding non-recognition ofincome of ` 1,250 lakhs is not as per AS - 29 and AS -9. However,the concept of prudence will not be followed if ` 1,250 lakhs issimultaneously recognised as income. ` 1,250 lakhs is not therevenue at present but only reimbursement of claim. However, the
1
Solved Scanner Appendix IPCC Gr. II Paper - 5 2
accountant is correct to the extent that non-recognition of ` 1,250lakhs as income will result in the under-statement of profit.
(b) 1. As per AS-26, the amount charged and recognised are as follows:(i) The expenditure to be charged to Profit & Loss A/c for year
ended 31st March, 2013:C ` 32 lakhs will be recognised as an Expense because the
recognition criteria were not met until 1st December, 2012. This expenditure will not form part of the cost of theproduction process recognised in the Balance Sheet.
(ii) The carrying amount of the asset as on 31st March, 2013:C The production process will be recognised (i.e. carrying
amount) as an intangible asset at a cost of ` 28 lakhs (i.e.expenditure incurred since the date the recognition criteriawere met, i.e. total during 2012-13 ` 60 lakhs -Expensesincurred upto 1st December, 2012 ` 32 lakhs).
(iii) The expenditure to be charged to Profit & Loss A/c for yearended 31st March, 2014:C Book Value on 31/03/14 `
Carrying Amount on 31/03/13 + Exp. in 2013-14 = 28+90 lakhs
= 118 lakhsLess: Recoverable Amount = (82 lakhs)Impairment loss to be charged to Profit & Loss A/c = ` 36 lakhs
(iv) The Carrying Amount of asset as on 31st March, 2014: C The production process will be shown at book value ` 118
lakhs or, recoverable amount ` 82 lakhs, whichever is less,hence carrying amount is ` 82 lakhs.
Solved Scanner Appendix IPCC Gr. II Paper - 5 3
(c)1. Calculation for Average Accumulated Expenses:
(i) ` 3,00,000 × 12/12 ` 3,00,000
(ii) ` 3,50,000 × 9/12 ` 2,62,500
(iii) ` 5,50,000 × 6/12 ` 2,75,000
(iv) ` 1,50,000 × 1/12 ` 12,500
` 8,50,000
C Out of above, ` 3,00,000 is from specific loan and balance` 5,50,000 is from non-specific loans.
2. Calculation for Average Interest Rate:(i) Total interest Exp. = (` 6,00,000 × 11%) + (` 11,00,000 × 13%)
= 66,000 + 1,43,000 = 2,09,000(ii) Total loan amount = ` 17,00,000
(iii) Average rate =
= = 12.29%
3. Calculation for amount to be capitalised:
Particulars Amount (`)
Cost of Building (3,00,000 + 3,50,000 + 5,50,000 +1,50,000)
13,50,000
Add: Interest Cost to be capitalised = specific borrowings (` 3,00,000 × 12%)
36,000
Non specific borrowings (` 5,50,000 × 12.29%) 67,595
Total amount to be capitalised for building 14,53,595
4. Journal Entry
Date Particulars Dr. (`) Cr. (`)
31/12/2014 Building A/c Dr. 14,53,595
To Bank A/c 14,53,595
(i.e. cost of building & borrowing costcapitalised)
Solved Scanner Appendix IPCC Gr. II Paper - 5 4
(d)(i) Calculation for Basic EPS:
Basic EPS =
=
Basic EPS = ` 2.5(ii) Calculation for Diluted EPS:
Diluted EPS =
=
=
Diluted EPS = ` 2.35
2015 - May [7] (b), (d)(b) Y As per AS-12, Accounting for government grants, the grant or
subsidy received from government is recognised only when thereis reasonable assurance that the enterprise will comply withconditions attached to them and the grants will be received.
Y Here, the company has been set up in backward area and eligibleto receive the capital subsidy and it has received the subsidy sothat ` 50 lakhs shall be recognised in books of the company.
Y ` 50 lakhs shall be recognised as Capital Reserve and to be writtenoff over a period of time as expenditure incurred.
(d) Situation when a lease would be classified as finance lease:(i) When there is transfer of ownership in finance lease of the asset to
the lessee by the end of the lease term.
(ii) When option to purchase the asset is available to the lessee, at a
Solved Scanner Appendix IPCC Gr. II Paper - 5 5
price which is sufficiently lower than the fair value at the date theoption becomes excercisable such that, at the inception of the lease,it is reasonably certain that the option will be excercised.
(iii) When lease term is for the major part of the economic life of theasset even if title is not transferred.
(iv) When present value of minimum lease payment at the inception ofthe lease amounts to atleast substantially all of fair value of leasedasset (i.e. PV of MLP = Fair value approx.)
Chapter - 5: Amalgamation and Reconstruction2015 - May [4]
(i) Calculation for basis on which shares in M/s AB Ltd. will beissued: (PC):
Particulars A Ltd. B Ltd.
Assets
Freehold Property 3,00,000 2,40,000
Plant & Machinery 1,00,000 40,000
Motor vehicle 30,000 20,000
Trade receivables 2,00,000 80,000
Inventory 2,30,000 1,80,000
Cash at Bank 80,000 40,000
Goodwill 1,40,000 40,000
Liability
Trade Payables (2,10,000) (1,30,000)
6% debentures - (1,26,000)
Net Assets 8,70,000 3,84,000
÷ Nominal value per share (` 10) 10 10
87000 shares 38400 shares
PC 8,70,000 3,84,000
(ii) Balance Sheet of M/s AB Ltd. as on 01-04-2014
Solved Scanner Appendix IPCC Gr. II Paper - 5 6
Particulars L.F. Amt. (`) Amt. (`)
Equity & liabilities
1. Shareholder’s fund
(a) Share Capital 1 12,54,000
(b) Reserves & Surplus 2 6,000 12,60,000
2. Non Current liabilities
(a) Long term borrowings 3 1,20,000
3. Current liabilities
(a) Trade Payables 3,40,000
17,20,000
Assets
1. Non Current Assets
(a) Fixed Assets
(i) Tangible fixed Asset 7,30,000
(ii) Intangible fixed Asset 1,80,000 9,10,000
(b) Non Current investments
2. Current Assets
(a) Trade receivables 2,80,000
(b) Inventories 4,10,000
(c) Cash & Cash Equivalents 1,20,000 8,10,000
17,20,000
Solved Scanner Appendix IPCC Gr. II Paper - 5 7
Notes:
Particulars Amt. (`) Amt. (`)
1. Share Capital:
Equity Share Capital
(i) Authorised, issued, paid up capital1,25,400 shares @ ` 10 each (out ofabove all shares are issued forconsideration other than cash) 12,54,000
2. Reserves & Surplus
Premium on redemption 6,000
3. Long term borrowings 6% debentures 1,26,000
(iii) In the books of AB Ltd.Journal Entries
Particulars L.F. Dr. (`) Cr. (`)
1. Business Purchase A/c Dr. 12,54,000
To liquidators of A Ltd. 8,70,000
To liquidators of B Ltd. 3,84,000
(Being PC due for companies)
2. Property A/c Dr. 5,40,000
Plant & Machinery Dr. 1,40,000
Motor vehicle A/c Dr. 50,000
Trade receivable A/c Dr. 2,80,000
Inventory A/c Dr. 4,10,000
Cash at Bank Dr. 1,20,000
Goodwill A/c Dr. 1,80,000
To Trade Payables 3,40,000
To 6% debentures 1,20,000
To Business purchase 12,54,000
To Premium on debentures 6,000
(Being incorporation of assets &liabilities are done)
Solved Scanner Appendix IPCC Gr. II Paper - 5 8
3. Liquidators of A Ltd. Dr. 8,70,000
Liquidators of B Ltd. Dr. 3,84,000
To Equity share Capital 12,54,000
(Being Amt. of PC discharged)
4. 6% debentures A/c Dr. 1,20,000
Premium on debentures Dr. 6,000
To 6% debentures 1,26,000
(Being debentures are issued atpremium).
Chapter - 6: Redemption of Debentures2015 - May [3] (a)Adequacy of DRR:
(i) All India Financial institutions regulated by RBI and BankingCompanies:• DRR is not required for debentures issued by all India Financial
institutions as regulated by RBI & Banking Companies.(ii) For other Financial institutions within the meaning given in the
Companies Act.C DRR is created of 25% of the value of debentures issued through
public issue and no DRR is required in case of privately placeddebentures.
(iii) For debentures issued by NBFCS registered with RBI:C DRR is created of 25% of the value of debentures issued through
public issue and no DRR is required in case of privately placeddebentures.
(iv) For debentures issued by other companies includingmanufacturing and infrastructure companies:C DRR is created of 25% of the value of debentures issued through
public issue and DRR is 25% is also required in case of privatelyplaced debentures by listed companies.
Solved Scanner Appendix IPCC Gr. II Paper - 5 9
2015 - May [3] (b)Debenture Redemption Reserve A/c
Date Particulars Amt. (`) Date Particulars Amt. (`)
31/3/15 By Investment 50,000 1/1/14 By Bal. b/d 70,00,000
31/3/15 By Bal. c/d 72,65,000 31/3/14 By own deb. 3,15,000
73,15,000 73,15,000
Own Debentures A/c
Date Particulars Amt. (`) Date Particulars Amt. (`)
1/1/14 By Bal. b/d 27,00,000 31/3/15 By DRR A/c 40,00,000
1/2/14 By Bank 4,90,000
1/6/14 By Bank 4,95,000
31/3/14 By DRR 3,15,000
40,00,000 40,00,000
Working Note:1. Debenture A/c
Particulars Amt. (`) Particulars Amt. (`)
To Invest in own deb. 40,00,000 By Bal. b/d 80,00,000
To Bank 40,00,000
80,00,000 80,00,000
2. Interest on Own Deb. A/c
Particulars Amt. (`) Particulars Amt. (`)
To Bank 4,583 By Interest 55,000
To Bank 29,917 By Interest 55,000
To Profit & Loss A/c 75,500
1,10,000 1,10,000
Solved Scanner Appendix IPCC Gr. II Paper - 5 10
3. 13.5% Debenture A/c
Particulars Amt. (`) Particulars Amt. (`)
To Bal. b/d 29,00,000 By C/B 28,50,000
By DRR 50,000
29,00,000 29,00,000
4. Purchase on 1/2/14Cum interest (5,000 × 98) = 4,90,000Less: Interest = (4,583)
(Cost) 4,85,4175. Purchase on 1/6/14
ex-interest (5,000 × 99) = 4,95,000Interest (5,000 × 100 × 11% × 5/12) = 22,917
= 5,17,917
Chapter - 7: Liquidation of Companies2015 - May [7] (c)Calculation for Liquidators’s Remuneration:
`
(i) 2% of asset realised= 45,00,000 × 2% = 90,000
(ii) 3% of amount distributed to preferential Creditors= 1,25,000 ×3% = 3,750
(iii) 3% of amount distributed to unsecured Creditors= 27,31,250 ×31/103 = 79,551
Total Liquidators Remuneration = 1,73,301
Working Note:Amount distributed to unsecured Creditors =
45,00,000 - 50,000 - 15,00,000- 1,25,000 - 90,000 - 3,750 = 27,31,250
Solved Scanner Appendix IPCC Gr. II Paper - 5 11
Chapter - 8: Financial Statements of Banking Companies2015 - May [5] (a)
(i) Bills for Collection (Asset) A/c
Particulars Amt. (`) Particulars Amt. (`)
To Bal b/d (1/4/14) 10,15,000 By Bills for Collection(liability) A/c 64,50,000
To Bills for Collection(liability) A/c 89,75,000
By Bills for collection(liability) A/c 11,25,000
By Bal c/d (31/3/15) 24,15,000
99,90,000 99,90,000
Bills for Collection (liability) A/c
Particulars Amt. (`) Particulars Amt. (`)
To Bills for Collection(Asset) A/c
64,50,000 By Bal b/d (1/4/14) 10,15,000
To Bills for Collection(Asset) A/c 11,25,000
By Bills for Collection(Asset) A/c 89,75,000
To Bal C/d (31/3/15) 24,15,000
99,90,000 99,90,000
(ii) Acceptances, Endorsements & other Obligations A/c
Particulars Amt. (`) Particulars Amt. (`)
To Constitutes Liab. foracceptances/guaranteesetc. (paid off clients)
To Constitutes liability foracceptances/guaranteesetc. (27,50,000-15,00,000)
To Constitutes liability foracceptances/guaranteesetc. (Honoured by Bank)
To Constitutes liability foracceptances/guaranteesetc. (paid off by clients)
15,00,000
12,50,000
44,50,000
15,00,000
By Bal b/dBy Constitution’s
liabilities foracceptances &guarantees’setc.Bank honouredClient paid offFaild to paywhich Bankhad to pay notsatisfied upto31-03-15
27,50,000
44,50,00015,00,000
4,00,000
4,00,000
Solved Scanner Appendix IPCC Gr. II Paper - 5 12
To Constitutes liability foracceptances/guaranteesetc. (Honoured by Bank onparties failures)
To Bal c/d (Acceptances notyet satisfied 7 contingent)
4,00,0004,00,000
95,00,000
95,00,000
(iii) ! This loan is classified as secured loan under the balance sheet. Asloan of ̀ 50,00,000 was advanced @ 14%. But interest or principle yetnot paid. But security is given for such loan as equity share capital. Sothat it is recognised as secured loan under the balance sheet.
! It is recorded at market value as on date of year end which is ` 85 so,it is recorded at ` 85 × 1,00,000 = ` 85,00,000
(iv) Rebate on Bills Discounted A/c
Date Particulars Amt. (`) Date Particulars Amt. (`)01-04-14 To Interest &
discount45,000 01-04-14 By Bal b/d 45,000
31-03-15 To Bal c/d 24,000 31-03-15 By Interest &discount 24,000
69,000 69,000
Interest & Discount A/cDate Particulars Amt. (`) Date Particulars Amt. (`)
31-03-15 To Rebate onbills discounted 24,000
01-04-13 By Rebateon billsdiscounted 45,000
31-03-15 To P&L A/c(Income)
98,21,000 31-03-15 By Cash &Sundries
98,00,000
98,45,000 98,45,000
Solved Scanner Appendix IPCC Gr. II Paper - 5 13
2015 - May [5] (b)In the books of Ms’ XY Bank Ltd.
Calculation for Provision made in book (` in lakhs)
Particulars Amt. (`)
Doubtful assets 2,000
Less: Value of security (800)
Unsecured Portion 1,200
Less: DICGC Cover (200)
Unsecured Portion 1,000
Provision to be made:
For unsecured portion at 100% 1,000
For secured portion at 100%
(doubtful for more than 3 years 800
Total provision to be made 1,800
Chapter - 9: Financial Statements of Insurance Companies2015 - May [7] (a)Difference between Life Insurance & other form of Insurance:
Life Insurance Other Insurance
1. Meaning It is a contract underwhich, in consideration ofpremiums paid by theinsured, the insureragrees to pay a fixed sumof money either on deathof insured or on the lapseof a specified period.
It is a contract of indemnityunder which, in return forpremiums paid by theinsured, the insurerundertakes to reimbursethe insured for anyloss/liability incurred onhappening on an uncertainevent.
2. Risk covered It covers the life risk ofthe insured.
It covers all risks otherthan life risk of theinsured.
Solved Scanner Appendix IPCC Gr. II Paper - 5 14
3. Sum Assured Human life may beinsured of any amountdepending upon thepremium the insured isable to pay.
The sum assured or thepolicy value is limited tothe amount of loss actuallysuffered or the liabilityincurred.
4. Receipt ofPolicy value
In the event of death ofthe Policyholder, thenominee of the assuredwould get the policy valueand if the policy providesfor payment of policyvalue at maturity or ininstalments, the insuredwill receive in such amanner.
If the insured sustains lossdue to reasons specified inthe policy, he would getthe compensation i.e. thepolicy value.
5. Bonus The Policyholders areentitled to receive bonuson the premium paid bythem calculated onactuarial basis.
General insurance doesnot provide for any bonusto Policyholders.
6. Tenure There are long termcontracts and run over anumber o f years .Premium may be paid inlumpsum or during thetenor of policy.
G e n e r a l i n s u r a n c econtracts are only for oneyear and are renewableyear after year.
7. Assurance Life insurance is actuallylife assurance, since theinsured/ his nominee getsan assured sum.
These are policies ofinsurance only, not ofassurance.
Chapter - 11: Departmental Accounts2015 - May [6] (b)
Departmental Trading A/c
Particulars Finished L Shoes Total Particulars Finished L Shoes Total
To Opening 30,20,000 4,30,000 34,50,000 By Sales 1,80,00,000 45,20,000 2,25,20,000
To Purchases 1,50,00,000 2,60,000 1,52,60,000 By Transfer 30,00,000 - 30,00,000
To Tra. Fromfinished
- 30,00,000 30,00,000 By ClosingStock 12,20,000 5,00,000 17,20,000
To Mfg. Exp. - 5,00,000 5,00,000
To GP. 42,00,000 8,30,000 50,30,000
2,22,20,000 50,20,000 2,72,40,000 2,22,20,000 50,20,000 2,72,40,000
Departmental P&L A/c
Particulars Finished L Shoes Total Particulars Finished L Shoes Total
To Selling Exp. 1,50,000 60,000 2,10,000 By GP 42,00,000 8,30,000 50,30,000
To Rent &Warehouse
5,00,000 3,00,000 8,00,000
To NP 35,50,000 4,70,000 40,20,000
42,00,000 8,30,000 50,30,000 42,00,000 8,30,000 50,30,000
General P&L A/c
15
Solved Scanner Appendix IPCC Gr. II Paper - 5 16
Particulars Amt. (`) Particulars Amt. (`)
To General Exp. 8,50,000 By Profit b/d 40,20,000
To Stock Reserve (WN) 26,625
To NP 31,43,375
40,20,000 40,20,000
Working Note:Calculation for stock Reserve:
Particulars Last Year This Year
Rate of GP 15% × 100 = 20%
Element of finishedleather stock inReadymade shoes
75% of 4,30,000 = 3,22,500 75% of 5,00,000 = 3,75,000
Stock Reserverequired to bemaintained
3,22,500 ×15% = 48,375 3,75,000 × 20% = 75,000
Stock Reserve for this year = 75,000 - 48,375 = ` 26,625
Chapter - 12:Branch Accounts & Foreign Branches2015 - May [6] (a)
Trading A/c
Particulars HO Branch Particulars HO Branch
To Opening Stock 1,25,000 - By Sales 23,79,600 7,30,000
To Purchases 21,50,000 - By GSTB 7,38,000 -
To GSTB (goodsreceived)
- 7,38,000 By ClosingStock
5,43,000 73,800
To G.P. 13,85,600 65,800
36,60,600 8,03,800 36,60,600 8,03,800
P&L A/c
Solved Scanner Appendix IPCC Gr. II Paper - 5 17
Particulars HO Branch Particulars HO Branch
To Office Exp. 50,000 4,500 By GP 13,85,600 65,800
To Selling Exp. 32,000 3,300
To StaffSalaries
45,000 8,000
To NP 12,58,600 50,000
13,85,600 65,800 13,85,600 65,800
General P&L A/c
Particulars Amt. (`) Particulars Amt. (`)
To Stock Reserve
(73,800 × )
32,800 By HO ProfitBy Branch Profit
12,58,60050,000
To NP 12,75,800
13,08,600 13,08,600
Working Note:1. Calculation for Closing Stock at Branch & HO:
`
Goods received from HO 7,38,000
Less: Sales Converted into wholesale price (73,800 × )(6,64,200)
Closing Stock at Branch 73,800
Closing Stock at HO:Closing Stock = Opening Stock + Purchase - GSTB -
Cost of Goods Sold by HO
= 1,25,000 + 21,50,000 - (7,38,000 × ) -
(23,79,600 × )
= 1,25,000 + 21,50,000 - 4,10,000 - 13,22,000Closing Stock = ` 5,43,000
Solved Scanner Appendix IPCC Gr. II Paper - 5 18
2. Calculation for loading Margin:
Cost of Goods to HO 100
Add: Loading by HO to Branch 80
Wholesale price 180
Selling price at branch 200
Chapter - 13:Dissolution of Partnership Firms2015 - May [2]
Partner’s Current A/c (1/4/2013)
Particulars X Y Z Particulars X Y Z
To Bal. b/d - - 10,000 By Bal. b/d 40,000 30,000 -
To goodwill(w/off : 2 : 1)
- 60,000 30,000 By goodwill (3 : 2 : 1)
45,000 30,000 15,000
To F.A.(w/off 2 : 1)
- 40,000 20,000 By F.A.(3:2:1)
30,000 20,000 10,000
To X’s capital 1,21,000 - - By J.L.P. (52,000- 40,000)
6,000 4,000 2,000
By Bal. c/d - 16,000 33,000
1,21,000 1,00,000 60,000 1,21,000 1,00,000 60,000
Partners’s Current A/c (1/4/2013 to 31/3/2014)
Particulars Y Z Particulars Y Z
To Bal. b/d 16,000 33,000 By Profit & LossAppro. (W.N.1)
29,136 14,568
To drawings 15,000 8,000 By Bal. c/d 1,864 26,432
31,000 41,000 31,000 41,000
Solved Scanner Appendix IPCC Gr. II Paper - 5 19
Partners’s Current A/c (1/4/2014 to 30/6/2014)
Particulars Y Z Particulars Y Z
To Bal. b/d 1,864 26,432 By Realisation(W.N.3)
30,681 15,340
To Y’s capital 28,817 - By Z’s capital - 11,092
30,681 26,432 30,681 26,432
Partners’s Capital A/c
Particulars X Y Z Particulars X Y Z
To X’sexecutors A/c
1,81,000 - - By Bal. b/d 60,000 40,000 20,000
To Bal. c/d - 40,000 20,000 By X’s current 1,21,000 - -
1,81,000 40,000 20,000 1,81,000 40,000 20,000
To Bal. c/d - 40,000 20,000 By Bal. b/d - 40,000 20,000
40,000 20,000 - 40,000 20,000
To Z’s current - - 11,092 By Bal. b/d - 40,000 20,000
To Bank(Settlement)
- 68,817 8,908 By Y’s current - 28,817 -
68,817 20,000 - 68,817 20,000
X’s Executives A/c
Date Particulars Amt. (`) Date Particulars Amt. (`)
1/4/2013 To Bank A/c 30,000 1/4/2013 By X’s Capital A/c 1,81,000
1/4/2013 To Bal. c/d 1,51,000
1,81,000 1,81,000
30/9/2013 To Bank A/c 30,000 1/4/2013 By Bal. b/d 1,51,000
30/9/2013 To Bal. c/d 1,25,530 30/9/2013 By Interest A/c 4,530
1,55,530 1,55,530
31/3/2014 To Bank 30,000 1/10/2013 By Bal. b/d 1,25,530
31/3/2014 To Bal. c/d 99,296 31/3/2014 By Interest A/c 3,766
1,29,296 1,29,296
1/4/2014 By Bal. b/d 99,296
30/6/2014 To Bank 1,02,275 30/6/2014 By Interest 2,979
1,02,275 1,02,275
Solved Scanner Appendix IPCC Gr. II Paper - 5 20
Working Notes:1. Calculation for Net Profit year ended 31/3/2014:
Particulars Amount (`)
Profit before charging interest on balance due to X’sexecutors 52,000
Less: Interest Payable to X’s executors =
(a) From 1/4/2013 to 30/9/2013 (1,51,000 × 6% × ½) (4,530)
(b) From 1/10/2013 to 31/3/2014 (1,25,530 × 6% × ½) (3,766)
Balance of Profit Shared by B & C (2 : 1) 43,704
2. Statement of Affairs on 30/6/2014(Net Asset Takeover by company)
Liability Amt. (`) Asset Amt. (`)
Capital Assets (bal. figure) 1,31,000
Y 40,000
Z 20,000 Current A/c
X’s executors A/c 99,296 B 1,864
C 26,432
1,59,296 1,59,296
3. Realisation A/c
Particulars Amt. (`) Particulars Amt. (`)
To Assets 1,31,000 By Purchase
To Interest (X’s exe.) (99,296 × 6% × ½) 2,979 Consideration 1,80,000
To Capital A/c
Y = 30,681
Z = 15,340 46,021
1,80,000 1,80,000
Solved Scanner Appendix IPCC Gr. II Paper - 5 21
4. Bank A/c
Particulars Amt. (`) Particulars Amt. (`)
To Realisation A/c (P.C.) 1,80,000 By X’s executor A/c 1,02,275
By Y’s capital A/c 68,817
By Z’s capital A/c 8,908
1,80,000 1,80,000
2015 - May [7] (e)Circumstances when an LLP can be wound up by the tribunal:6 The partnership shall be dissolved if there is unlawful object of the firm.6 The partnership firm shall be dissolved when all the partners becomes
insolvent.6 The partnership firm also dissolved by order of court.6 If there is any criminal law or case on the firm, the firm shall be
dissolved.6 If partnership is under loss on continuous basis than firm shall be
dissolved by the tribunal.6 If partnership violates any rule of partnership Act than court may give
order for dissolution.
Shuchita Prakashan (P) Ltd.25/19, L.I.C. Colony, Tagore Town,
Allahabad - 211002Visit us : www.shuchita.com
�
Solved Scanner Appendix IPCC Gr. II Paper - 5 22
FOR NOTES
Solved Scanner Appendix IPCC Gr. II Paper - 5 23
FOR NOTES
Solved Scanner Appendix IPCC Gr. II Paper - 5 24
FOR NOTES