Financial Accounting and Analysis

(b) The following are the extracts from the Trial Balance of a firm

                                                     TRIAL BALANCE

                                               As on 31. December, 2016 D

Additional Information:

(i) After preparing the Trial Balance, it is learnt that a debtor Suresh has become insolvent and, therefore, the entire amount of Rs. 3,000 due from him was irrecoverable.

(ii) Create 10% provision for bad and doubtful debts

You are required to pass the y adjusting entries and show the items as those will appear in the firm's Balance Sheet 

A firm purchased a plant for Rs 10,000 on 11.2013 It was charging depreciation at 10% pa, according to the fixed installment method At the end of 2016, the firm decided to change the method of depreciation from the Installment Method to the Diminishing Balance Method w... 1.1.2014. The rate of depreciation was to be at 12% p.a You are required to prepare the plant Account for the all these years ending 314 December, 2016 and also show how the depreciation item would appear in the Profit and Loss Account of the year 2016 

What is meant by the term, Generally Accepted Accounting Principles?Explain the meaning and significance of any two of the following

(a) The Going Concern Principle     (b) Convention of Consistency

(c)  Matching Principle                     (d)Substance Over Ferm

b) Prepare a two columnar cash Book from the following transactions cl Shri Naresh Gupta

(b) On 1 January, 2015, Neha Ltd issued 2.500 10% debentures of Rs.100 each at Rs. 95. Holders of these debentures have an option to convert their holding into 14% preference shares of Rs. 100 each at a premium of Rs. 25 per share at any time within three years On 31st December, 2015, holders of 500 debentures notified their intention to exercise the opinion Show the journal entries in relation to the issue and conversion of debentures in the books of the company

Q1  (a) Explain the role of Accounting as an Information System.

Write short notes on any three of the following-

a) Green Accounting

b) Human Resource Accounting

c) Social Responsibility Accounting.

d) Security Exchange Board of India

e) Price-level Accounting 

A Lid. has a share capital of 5,000 equity shares of Rs. 100 each, having a market value of Rs. 150 per share. the company wants to raise additional funds of Rs. 1,20,000 and offers to the existing shareholders the right to apply for a new share at Rs. 120 for every five shares held. You are required to calculate the value of a right.

Explain the provisions of the companies Act, 2013, regarding creation of Debentures Redemption Reserve.

X Ltd. issued a prospectus offering 2,00,000 equity shares of Rs. 10 each on the following terms:

On Application                                                        Rs. 1 per share

On allotment including premium of Rs. 2)           Rs. 3 per share

On first call three months after allotment)           Rs. 4 per share

On second call three months after allotment)     Rs. 4 per share

Subscriptions were received for 3.17,000 shares on 23 made on 30 April was as under:

                                                                                                                                                                            Share allotted

Allotments in full (two applicants paid in fall on allotment in respect 4,000 share each)                          38,000

Allotment of 2/3 of shares applied for                                                                                                              1,60,000

Allotments of 1/4 of shares applied for                                                                                                             2,000

Cash amounting to Rs. 31,000/- (being application money's received with applications for 31.000 shares por which no allotment was made) was returned to applicants forthwith. The amount due were received on due dates except with the final call on 100 shares. These shares were forfeited on 15 November and reissued to A on the 16" on payment of Rs. 9 per share. The company adopted table Fas its articles. You are required to give the necessary journal entries without narratives) and also show how the transactions would appear in the Company's Balance Sheet. Assume that interest on calls in advance was paid by the company on 30 October in cash.

State the basic principles governing depreciation as per AS 10: "Property, Plant & Equipment

 Explain the purpose of providing for depreciation. Should depreciation be charged on replacement cost?

The following are the balances of Johori Albhushan Bhandari Co. Ltd. as on 31st March, 2017:

Additional Information:

a) Depreciation Plant by 15%

b) Half year's Deberture Interes: due.

c) Credit 5% Provision on Debtors for Douborul Debts.

d) Provide for Income Tax 5096

e) Stock on 31 march 2017 was Rs. 9,50.000.

f) A claim o! Rs. 25,000 for worlornen's compensation is being disputed by the company.

Prepare Final Accounts of the company as per Schedule III to the companies Act, 2013. 

The following are the extracts from the Trial Balance of a firm.

Additional Information:

 Furniture of Rs. 5,000/- was purchased on 1 July, 2017. Charge depreciation @ 10% p.a. ii) Plant of Rs. 10,000/- was acquired on 1 July, 2017. charge depreciation @20%. Pass the necessary journal entries and show how the items will appear in the Firm's Final Accounts.

Explain any two accounting concepts.

Differentiate between a Trial Balance and Balance Sheet.

Explain the progress made in India for convergence of accounting standards with IFRS.

b) Differentiate between Book-keeping and Accounting.

a) Differentiate between Book-keeping and Accounting

(a) Briefly state the functions of Stock Exchange

A holds 100 shares of Rs 10 each on which he has paid he per share as application money

3 holds 200 shares of Rs 10 on which be has paid Re 1 on application and Rs. 2 on allotment

C holds 300 shares of Rs 10 on which he has paid Re 1 on application, Rs. 2 on allotment and Rs.3 for the first call 

They all fail to pay their ears and the second call of Rs 2 er bare and the Directors, therefore, forfeited the shares. The shares of C were then reissued at Rs. 7 bares as fully paid-up.

Give the necessary journal entries to record the above transactions. 

h) Write a brief note on each any two of the foliowing-

i)  Social Responsibility Accounting

ii) Human Resource Accounting 

iii) Green Accounting 

(a) Explain the utility of Price-level Accounting

(e) Distinguish between a Trial Balance and a Balance Sheet.

(a) Explain the laprest System of Pety Cash

b) "Accounting is an aid to Management" Comment