CA IPCC Accounts Mock Test Paper May 2016

8/18/2019 CA IPCC Accounts Mock Test Paper May 2016

1/6

1

Shree Guru Kripa’s Institute of Management

ACCOUNTING – GROUP – I

Reg. No……………………..

Total Number of Printed Pages: 6

Time Allowed: 3Hrs

Date: 28.03.2016 Maximum Marks: 100

Question 1 is compulsory (4 × 5 = 20 Marks). Answer any 5 from the remaining 6 (16 × 5 = 80 Marks)

1. (a)Heramba Ltd gives you the following information for the year ended 31st March 20X2:

Particulars `

Sales for the year ` 48,00,000 (The Company sold goods for Cash only). 48,00,000

Cost of Goods Sold 75% of Sales

Closing Inventory was higher than Opening Inventory by 50,000

Trade Creditors on 31.03.20X2 exceed the outstanding on 31.03.20X1 by 1,00,000

Tax paid during the year. 1,50,000

Amounts paid to Trade Creditors during the year 35,50,000

Administrative and Selling Expenses Paid 3,60,000

Cost of new Machinery acquired in December 20X1 6,00,000

Dividend paid during the year 1,20,000

Cash in hand and at Bank on 31.03.20X2 70,000Cash in hand and at Bank on 01.04.20X1 50,000

Prepare Cash Flow Statement for the year ended 31.03.20X2. (5 Marks)

1. (b) Nidhi Ltd purchased Raw Materials at a basic price of ` 10,000 on which Excise Duty of ` 1,500is paid. Cost of Inventory (of Raw Materials at this stage would be ` 11,500). The material is

thereafter processed. For this purpose, Conversion Costs (Labour and Direct Overheads, and other

Fixed Production Overheads) amounting to ` 1,800 are incurred. Excise Duty Liability on FinishedGoods amounting ` 1,700 is being paid by the Company. The Company is entitled for a CENVAT

credit of ` 1,500. Compute the value of Inventory. (5 Marks)

1. (c)An item of Machinery was purchased on 1st April 2012 for ` 2,00,000. The WDV Depreciation

Rate applicable to the Machinery was 15%. The WDV of the Machinery on 31st March 2014 was `

1,44,500. On that date, the Enterprise decided to the change the method of depreciation from WDV

to SLM, and write off the Book Value ` 1,44,500, over the remaining useful life of the machinery,i.e. 5 years. Out of the total useful life of 7 years, 2 years have already elapsed.

Comment on whether the above accounting treatment is correct. If not, give the correct accounting

treatment, with reasons (5 Marks)


2/6

Shree

1. (d) An a

been rec

cash. Th

an additcomplete

12,50,00

2. (a) The

informa

To Bal

To Ent

To Ent

To Su

To Su

To Su

To Re

To Int

To SecTo Pri

To Ad

To Au

To Fir

To De

Equip

To De

To Sur

Additio1. Cl

2. Sp

3. Fu

You are

2. (b) Outli

uru Kripa’s

mount of `

ived to dat

cost of wo

onal amoud in all res

. Compute

Receipts

ion of a Sp

Recei

Rec

ance b/d

rance Fees

rance Fees

scription 2

scription 2

scription 2

t Received

rest Receiv

Tot

Inco

Expend

retary Salar ting and St

ertising

it Fees

Insurance

reciation o

ent

reciation o

plus

Tot

al Informat b Grounds

rts Equipm

niture & Fi

required to

e the consi

Institute of

9,90,000 w

e to the val

rk done but

t of ` 60ects in ano

a conservati

nd Payme

rts Club fo

pts and Pay

eipts

012–2013

013–2014

12–2013

13–2014

14–2015

d

l

e and Expe

iture

tionery

Sports

Furniture

l

ion: The As Pavilion `

ent ` 2,50,0

tures ` 40,

prepare the

erations fo

Manageme

as incurred

e of ` 12,

not certifie

,000 (incluther two m

ve estimate

ts Accoun

the year en

ents Acco

42,

10,

1,00,

6,

1,50,

4,

24,

6,

3,42,

diture Acc

15,22,

16,

5,

10,

90,

5,

1,38,

3,01,

sets and Lia 4,40,000,

0,

00,

Balance Sh

selection o

t

2

on a contra

0,000 agai

amounted

ing Provisnths. The a

of the profi

t, Income

ded 31.03.2

nt for the

`

00 By Se

00 By Pri

00 By Ad

00 By Fir

00 By 1201.10.

00 By Fu

00 By Ba

00

00

unt for the

`

00 By En00 By Su

00 By Re

00 By Int

00

00

00

00

00

bilities as o4. Su

5. Su

an

6.

Cr

et of the Cl

Pre–Packa

ct work up

st which `

o ` 22,500.

ion for Cogreed Cont

to be taken

and Expen

014 were as

ear ending

Pa

retary Sala

ting & Sta

vertising

e Insurance

Investme013)

niture

ance c/d

ear ending

In

rance Feesscription

t

rest on Inv

31.03.201scription i

scription

ditors for P

b as on 31.

ged Accoun

Accounts

o 31st Marc

10,80,000

It is estima

ntingenciesact Price o

to the P&L

iture Acco

follows –

n 31.03.20

ments

y

ionery

ts (Purchas

otal

on 31.03.20

ome

stments

otal

include –Arrear ` 8,

eceived in

rinting & St

03.2013.

ting Softwa

roup – I –

h. Certifica

as been rec

ed that by s

the workthe work i

A/c as per(5

unt and a

(12

4

ed on

14

000,

dvance ` 2

ationery ` 5

e. (4

A IPCC

es have

eived in

pending

can bes `

S – 7.Marks)

ditional

Marks)

`

10,000

26,000

16,000

12,000

,00,000

20,000

58,000

,42,000

`

,05,000,56,000

28,000

12,000

,01,000

000

,000.

Marks)


3/6

Shree

3. E, F and

2013, the

Capital

–

–

–

Current

On 31st

terms we

(a) Buil

creat

(b)

GooProfi

the b

(c) Fres

(d)

Out

bala

paid

One moshare in

also agre

It was al price on

requeste

Partner’s

4. (a)Anant

existing

relating tuntil 31

st

You are

apportio

DepreciaMarch (e

Stock i

Purchas

Carriag

Travell

Office

uru Kripa’s

G were Part

Balance S

apital and

Accounts:

Liabilities:

utstanding

Tot

arch 2013

re as follow

ing is appr

d on Debto

will is valut for the ye

oks of acc

Capital be

f sum pay

ce be trans

ff by 31st

th after E’srofit/Losse

ed to forego

o agreed ththe date of

to pass

Capital Ac

u formed a

usiness as

o transfer oMarch of t

required to

ing the peri

tion and Tand of the ye

Trade as at

es and Sale

Outwards

rs’ Commis

alaries and

Institute of

ners sharing

eet of the F

iabilities

5

4

2

reditors

Expenses

l

E decided

s –

ciated by

rs.

d at two yer ended 31

unt.

ntroduced

ble to Reti

erred to his

arch 2014.

retirement,s. E agreed

one month’

at H will briE’s retire

ecessary Jo

ounts.

Private Li

from 1st

Ap

the businese next year.

prepare Tra

ods before

xation. Thear).

1st

April (O

sion

Expenses

Manageme

Profits and

rm stood as

,000

,000

,000 1,18

33

1

1,53

o retire, an

0%, Furnit

ar’s purchat March 20

y F and G t

ring Partne

Loan Acco

F and G athat the bal

s interest o

ng in his shent. No Go

urnal Entri

ited Comp

il, but the

s were ente

ding and P

nd after in

following

Particular

pening Stoc

t

3

Losses in t

follows –

`

Non–

Curre

000

500

700

200

F and G

re be depr

se of profit3 was ` 25,

o the extent

E, a sum

nt bearing i

reed to adance in his

his loan.

are of Goododwill Acc

s to give

ny under th

ompany w

ed in the b

ofit and L

orporation

rial Balan

k)

e ratio of 5:

Propertie

Current Ass

F

nt Assets:

D

C

ecided to c

eciated by

for the late000. No Go

of ` 10,000

of ` 45,00

nterest at 1

it E’s sonLoan A/c b

will througount is to b

effect to a

e name of

s not incor

oks, which

ss Account

nd a Balan

e was extr

Accounts

3:2 respecti

s and Asset

ets: Buildin

rniture

Stock

btors

sh at Bank

otal

ntinue as e

0% and a

st accountiodwill acco

and ` 35,00

be paid i

% per annu

H as a Parte converted

book adjuse raised in

ove transa

nanthu (P)

orated until

were carrie

for the yea

e Sheet as

cted from t

roup – I –

vely. On 31

(16

qual Partne

rovision o

g year. Thnt is to be

0 respective

mediately

m. The loa

er with oninto H’s C

tment, valuthe books.

ctions, and

td, to take

1st July. N

on withou

r ended 31s

n that date.

e books as(12

Debit

4,300

18,900

330

750

2,100

A IPCC

st March

Marks)

`

55,000

25,000

42,000

20,000

11,200

,53,200

s. Other

5% be

Firm’saised in

ly.

and the

is to be

e–fourth pital. E

d at theYou are

prepare

over his

entries

a break

tMarch,

Ignore

on 31st Marks)

Credit

27,800


4/6

Shree

Rent an

Ananth

Directo

Fixed ACurrent

Current

Prelimi

You are

•

Stoc

• Purc

` 10

• The

doub

• Assu

4. (b) Calc

Effective

Profit f

Paid up

Reserve

SecuritiLong T

Invest

Prelimi

Remun

5. The Bala

1,00,00

paid up

4,000, 8

each ful6% D

F

A

Sundry

Directo

uru Kripa’s

d Rates

’s Capital

s’ Fee

ssetsLiabilities

Assets (oth

ary Expens

lso given t

as at 31st

ase Consid

ach.

ross Profi

e the mont

e that Car

late the Ma

Capital of

r the year (

Capital

s & Surplus

es Premiumrm Loans

ents

ary Expens

ration paid

ce Sheet o

Lia

Equity Sh

% Preferen

ly paidebentures(seehold Pro

d: Arrear I

Creditors

’s Loan

Institute of

ccount as a

r than Stoc

es

e following

arch (end o

ration was

Margin is

ly sales for

iage Outwa

ximum Re

atarajan Lt

alculated a

es nor writt

to the Mana

Malini Ltd

ilities

res of ` 10

e Shares of

cured byerty)

terest

otal

Manageme

Particular

t 1st April (

–in–Trade)

Total

informatio

f the year) i

agreed at `

constant an

the remaini

ds and Tra

uneration

d, a Non–In

Particul

per Sec.19

n off

ging Direct

as on 31st

ach fully

` 100

4,00,000

24,000

t

4

pening Bal

:

` 4,400.

0,000, to b

d the mont

g months o

ellers’ Co

ayable to t

vestment C

ars

)

r during th

arch is give

`

10,00,00

4,00,00

4,24,00

1,01,00

3,00,00

22,25,00

ance)

e settled by

ly sales in

f the year.

mission var

e Managin

mpany, fro

year

n below:

Freehold

Plant and

Trade In

Sundry

Stock–in

Deferred

Profit an

Accounts

issue of 3,0

April, Febr

y in direct p

Director fo

the infor

Assets

Property

Machinery

estments (a

ebtors

Trade

Advertisem

Loss Acco

Total

roup – I –

Debit

1,200

1,800

13,400

11,200

520

54,500

00 Equity S

ary and M

roportion to

r the year,

ation given

(4

(` i

(16

cost)

ent Exp

nt

A IPCC

Credit

23,000

3,700

54,500

hares of

arch are

Sales.

ased on

below:

Marks)

n 000’s)

3,000

18,000

7,200

1,2006,000

3,600

3,000

600

Marks)

`

5,50,000

2,00,000

2,00,000

4,50,000

3,00,000

50,000

4,75,000

22,25,000


5/6

Shree

The Boa

the cons

1. Prefe

2. Pref.

` 2 e

3.

Debe

pay

4. Arre

5. Rem

6. Inves

7. 75%

8. 40%writt

9. ComPena

Show thSheet of

6. (a) CCL

increase boost up

Expense

Fixed E

Teleph

Determi

6. (b)Marut

Date

01.05.2

15.06.2

10.07.2

14.10.2

31.10.2

01.01.2

15.01.2

uru Kripa’s

d of Direct

nt of respec

rence Share

Dividend ich to be all

ntureholder

ent of their

r Debentur

ining Free

tment sold

f Directors

of Sundryn off.

any’s Contty of Contr

Journal Ehe Compan

wants to ta

by 20%. Tthe Sales.

will remai

xpenses:

Rent

Trav

Post

ne

Dire

Audi

e the amou

has made

13 Purch

payab

13 Purch

throug13 Purch

a Bro

13 Alpha

13 Sold 8

14 Recei

14 Beeta

` 5 pe balanc

Institute of

rs of the C

tive Stakeh

s are to be

arrear for 3otted.

agreed to

holding. Ba

Interest to

old Propert

ut for ` 2,5

oan to be w

ebtors, 80

ractual Coct Value.

ntries for gy after effec

e up a Los

e Companhe average

the same.

Salaries

, Rates and

elling Expe

ge, Telegra

tor’s Fees

t Fees

t to be take

ollowing tra

ses 24,000

e on 30th

S

ses 1,50,00

h a Broker,sed 60,000

er, who cha

Limited ma

0,000 Share

ed 15% Int

Limited ma

Share. Mae rights in t

Manageme

mpany deci

lders:

ritten down

years to be

ake one Fr

ance Debe

e paid in c

to be valu

,000.

aived and fo

of Stock

mitments a

ving effectting the sch

s of Profit

will availdaily Over

he followi

`

axes

ses

,

for the Cu

nsactions d

12% Bond

ptember a

0 Equity Sh

who chargeEquity Shar

rged Broke

de a Bonus

s in Alpha

rim Divide

e a Rights

uti exercisee market at

t

5

ded upon t

to ` 80 eac

waived by

ehold Prop

tures to re

sh.

d at ` 4,00,

the balance

and 100%

ounting to

to the Inteeme.

olicy. Tur

Overdraftraft Balanc

g details ar

3,30,000

` 30,000

` 50,000

` 60,000

` 10,000

` 20,000

rrent Year.

ring the fin

Part

of ` 100 e

d 31st Mar

ares of ` 10

d Brokeragees of ` 10 e

age at 2%.

ssue of two

imited for

d on Equit

ssue of one

d his option

` 2.25 per

e following

and Equit

/3rd

and fo

rty at its B

ain as liabil

00.

, Equity Sha

of Deferred

` 6,00,000

rnal Recon

over during

acilities fr e will be ar

available f

Total Varia

iscellaneo

et Profit

ancial year

culars

ach at ` 84

h every ye

each in Alp

at 2%.ch in Beeta

Shares for

22 each.

Shares of

Equity Sha

for 40% ofhare.

Accounts

Scheme of

Shares to `

balance 1/

ook Value

ity of the C

es of ` 2 eac

Advertise

have been s

truction an

the current

m its Banound ` 3 L

om previou

le Expense

us Income

013–2014:

cum interes

r.

a Limited

Limited fo

every three

lpha Limit

e for every

his entitlem

roup – I –

econstruct

2 each.rd

, Equity S

f ` 3,00,00

mpany.

to be allott

ent Expens

ettled by pa

draw the

year is exp

at 15% inkh. All oth

s year – (4

` 2

`

(12

. Interest is

or ` 25 eac

` 44 each t

hares held.

ed.

four Shares

nts and sol

A IPCC

ion with

hares of

in part

d.

es to be

ing 5%

Balance

ected to

erest toer Fixed

Marks)

,00,000

70,000

,20,000

Marks)

rough

held at

the


6/6

Shree

Date

01.03.2

15.03.2

Prepare

Shares o

7. Answer

(a) A Lt

follo

• Dow

• 1st I

after

The Cas

each Inst

(b) From

Debt

Sales (i

7,000)

Collecti

Discou

Bad De

Cheque

(c) Arju

with

Date

`

Interest

Interest

(d) Viruis ret

Viru balan

(e) Mrid

Lakh

durinof cu

uru Kripa’s

14 Sold 1

14 Recei

Intere

eparate Inv

Beeta Limi

ny Four o

purchases

ing manne

Payment

stallment a

3 years.

Price of t

allment.

the followi

rs Account

Particul

cluded Cas

ons from D

t Allowed

ts Written

Received

and Balra

rawn the fo

15th

5

n Drawings

n Drawings

aksh Ltd isained and

aksh Ltd ace 10% is a

Ltd has p

s is still pay

g the currerent Financ

Institute of

5,000 12%

ed 18% Int

t on 12% B

estment Ac

ted in the b

t of the fo

a Plant on

r –

20,000.

fter 1 year

e Plant is `

g informati

.

rs

h Sales of `

btors (Cash

ff

m are Part

llowing su

January

,000

is charged

to be charg

engaged inaid after o

ccounts forcounted as

rchased Pl

able to the

t Financialial Year. Is

Manageme

onds at ` e

rim Divide

onds was d

ount for 12

oks of Mar

lowing:

ire Purcha

`40,000, 2n

86,000. Ca

on for the

`

68,000

) 57,000

2,000

1,500

10,000

ers in a F

s during the

10th

Februa

4,000

t 10% per

ed on 30th

J

manufactur e year, if t

only 90%sale in the

nt and Ma

uppliers fo

Year. Thehis correct?

t

6

Part

x–interest.

d on Equit

ly received

% Bonds,

ti for the y

se Basis fo

Installme

culate – (a)

onth of Ma

Cheques

Return In

Bad Debt

Provision

Balance

01.03.201

rm and sh

half year e

ry 5th

8,

nnum. Find

ne.

ng and supere is sati

of Invoiceear of recei

hinery 3 y

the same.

ompany tr

culars

Shares of

on due date

quity Shar

ar ended o

` 1,00,00

t after 2 y

Total Inter

ch, furnish

Parti

ishonoured

ard

Written O

for Doubtfu

utstanding

2(Receivabl

re Profits

ding 30th

J

April

000

out the Av

ly of gearfactory per

Values ast of payme

ars back fo

he Supplie

ated it as I

Accounts

eeta Limit

s.

s of Alpha

31st March

and makes

ars ` 20,0

est, and (b)

d by Harini

ulars

f – now rec

l Debts

n

es)

and Losses

ne –

20th

May

10,000

rage Due D

oxes to IAormance o

ale at the tt. Commen

r ` 45 Lak

waived of

come and

roup – I –

d.

Limited an

2014.

(

the payme

0, Last Ins

Interest inc

& Co, prep

vered

equally. A

18th

9,

ate and co

td but 10 the parts s

ime of supt

s. A balanc

the balance

redited to

A IPCC

Equity

×4=16)

t in the

allment

luded in

re Total

`

2,000

700

500

1,200

20,000

jun has

June

00

pute the

thereofupplied.

ly, and

e of ` 5

amount

&L A/c

CA IPCC Accounts Mock Test Paper May 2016

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Transcript of CA IPCC Accounts Mock Test Paper May 2016