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Discussion > Accounts > Others >

Solved paper IPCC accounts May 2011

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coaching to ca cs classes.b.com pass/hons stock market course NCFM module capital/derivetive


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Posted On 05 May 2011 at 09:45 Report Abuse

      This paper is solved by Mr. Prashant Bhardwaj M.com ,MBA finance ,M.Phil  
Accountancy teacher in Delhi for IPCC AND CA-CPT CONTACT NO. 981066111   
              TEACHING CENTRES – LAXMI NAGAR, PITAMPURA, BRAHMPURI     
                           
                           
  SOLUTION FOR ACCOUNTANCY PAPER FOR IPCC GROUP -I CA EXAM MAY 2011  
                           
                  photo.JPG
 
       
answer 1-a                          
  CALCULATION OF PURCHASE CONSIDERATION :                
  9% PSC OF BXE LTD :                    
                8000 SHARES @  100 each eee       8,00,000          
  ESC OF BXE Ltd:                      
         15000 shares @ ` 140 each         21,00,000        
  Cash                        
   For psc 8000*10 = 80,000                    
   For Esc 15,000*20=3,00,000         3,80,000               Prashant Bhardwaj    
  Purchase consideration          32,80,000    M.com, MBA -Finance,M.Phil  
                     Teaching Experience 10 years  
answer 1 b-                           
  step 1.                        
  calculation of Stock before fire:                    
  stock as on 31St dec 2010                                                               95,600             
  add:      purchases    1,70,000                  
    less   :machinery 30,000         1,40,000        
                   2,35,600        
  Add: Wages       50,000              
    less installation      3,000     47,000        
                  2,82,600        
  less: cost of sales :                    
    Sales        2,75,000              
    less:  not approved sales                  
      49,500*2/3     16,500              
            2,58,500              
    less: Profit on sales 20%   51,700     2,06,800        
      cost of stock before fire       75,800        
  step 2                        
    calculation of loss of stock                   
    cost of stock            75,800        
    less: salvage value         12,300        
      loss by fire           63,500        
  step 3 Application of average clause:                  
                           
      Claim to be lodged=   loss suffered*insurance policy/insurance should be taken      
        =  63500*60000/75800            
        = 50263.85   Ans            
 
                         
  REGISTRATION IS ON FOR THE NEW BATCHES OF ACCOUNTANCY IPCC FOR NOV 2011              
  CONTACT 981066111   FEES ONLY `4,000 FOR SINGLE PAPER             
  CLASSES START FROM    1 JUNE 2011 AT ALL CENTRES              
  COURSE COMPLETE    31-Aug-11                  
  REVISION BATCH START  1-Sep-11                  
  BATCHES TIMINGS                      
    1 MORNING   7:30AM -10:30 AM THRICE A WEEK   MWF        
    2 MORNING   10 AM TO 1 PM     TTS        
    3 NOON   12:30 TO 3:00 PM      MWF        
  FFE CAN BE SUBMITTED AT CENTRES                    
    NO FEE IS CHARGED IF NUMBERS BELOW 50%                
                           
                           
Answer 1 C                          
  case 1                        
  if Goodwill is valued at 5 years of super profit                
  Capital employed=3,00,000+2,00,00 = 5,00,000              
  normal profit = 5,00,000*20% = 1,00,000              
  Super profit = Avg profit - Normal profit  1,36,000-1,00,000 = 36,000        
  Goodwill of the firm   = 36000*5=1,80,000              
  case2                        
  if goodwill is calculate at capitalised method                
  capitalised value of the firm avg profit*100/20 = 6,80,000            
  Goodwill of the firm = 6,80,000-6,00,000 = 80,000            
  case3                        
  if goodwill is calculate avg profit method                  
  goodwil = 1,36,000*3 = 4,08,000                
Answer 1D                          
  DR     investment   a/c           CR      
  date      NO. ` DATE     NO. `      
  2010         2010              
  1-Apr b/d   50,000 7,50,000 5-Nov BANK   - 20,000      
  20-Jun bank   10,000 1,60,000 2011MAR31 C/D     9,50,000      
  1-Aug bonus share 10,000 -                
  5-Nov bank   20,000 40,000                
  5-Nov p&l a/c (profit) - 20,000                
        90,000 9,70,000         9,70,000      
                           
  NOTE:                        
  As per AS -13 ,para 13 if righ are not subscribed and sold in the market , sale proceed is treated as income.                  
                           
Answer 2                          
  WN1                        
  calculation of p/s ratio and sacrificing ratio:                  
  Amit 's sacrificing share 3/5*1/3 = 1/5 share            
  Amit 's new share   3/5-1/5 = 2/5 share            
  Sumit sacrificing share  2/5*1/4 = 2/20 share            
  Sumit new share    2/5-2/20 = 6/20 share            
  Sacrifing ratio   2:01                  
  new ratio      4:03:03                  
          Revaluation a/c              
                           
  stock       60,000   land & building     1,00,000    
  prov for dd     5,000   investment       5,000    
  profit t/f                        
  amit   24,000                    
  sumit   16,000   40,000                
          1,05,000           1,05,000    
                           
          Partner's capital a/c              
        Amit Sumit Punit       Amit Sumit Punit  
  cash     60,000 30,000   balance b/d     1,76,000 2,54,000    
   balance c/d   4,00,000 3,00,000 3,00,000 G.reserve     18,000 12,000    
                                                                                                                                                   Rev a/c     24,000 16,000    
              punit's loan a/c   - - 3,00,000  
              Premium a/c     60,000 30,000    
              cash(b.f.)     1,82,000 18,000    
        4,60,000 330,000 3,00,000       4,60,000 3,30,000 3,00,000  
              balance b/d     4lac 3lac 3lac  
                           
          B/s of New Firm              
  EPF         10,000 L/B         4,20,000  
  Creditors         50,000 Investment         55,000  
  capital a/c         Debtors     3,00,000      
  Amit     4,00,000     Less prov     15,000   2,85,000  
  sumit     3,00,000     Stock         50,000  
  Punit     3,00,000   10,00,000 Bank         2,50,000  
                           
            10,60,000           1,060,000  
                           
                           
           This paper is solved by Mr. Prashant Bhardwaj M.com ,MBA finance.M.Phil   
  Accountancy teacher in Delhi for IPCC AND CA-CPT CONTACT NO. 981066111   
                TEACHING CENTRES – LAXMI NAGAR, PITAMPURA, BRAHMPURI  photo.JPG
 
       
Answer 3                          
  In the books of Mars Ltd                    
  WN1                        
  Purchase consideration:                    
  L/b           10,80,000            
  Stock           7,70,000            
  B/R           30,000            
              18,80,000            
  This amount is settled by:                       Prashant Bhardwaj      
  10%PSCof Jupiter ltd 4100*100     4,10,000    M.com, MBA -Finance,M.Phil    
  ESC of jupiter ltd(b.f)       14,70,000    Teaching Experience 10 years    
      Purchase consideration   18,80,000            
  No. Of shares are issued :                     
  PSC   4100 SHARES OF `100 EACH                
  ESC   1,83,750 SHARES OF ` 10 EACH `8 PAID UP.            
        Realisation a/c              
  L/B       7,64,000 PROV FOR DD     8,000      
  Stock       7,75,000 B/P       40,000      
  Debtors       1,60,000 CREDITORS     2,26,000      
  B/R       30,000 PROV FOR TAX     2,20,000      
  Bank a/c:         JUPITORS LTD     18,80,000      
  B/P   38,000     BANK(DEBTORS)     1,50,000      
  tax       2,22,000                    
  Exp (8000-5000) 3,000   2,63,000                
  bank(credtiors from wn)   2,16,000                
  Profit t/f to ESH     3,16,000                
          25,24,000         2,524,000      
                           
                           
        BANK A/C                
  BALANCE B/D   3,29,000 REALISATION A/C       2,63,000      
  REALISATION A/C   1,50,000 REALISATION A/C(B.F FOR CREDITORS)   2,16,000      
        4,79,000           4,79,000      
                           
        ESH A/C                
  PSC OF JUPITORS LTD 4,10,000 ESC         10,00,000      
  ESC OF JUPITOTS LTD 14,70,000 CAPITAL RESERVE       42,000      
          CONTIGENCY RESERVE     2,70,000      
          P/L A/C         2,52,000      
          REALISATIION       3,16,000      
        18,80,000           18,80,000      
                           
                           
   This paper is solved by Mr. Prashant Bhardwaj M.com ,MBA finance,M.Phil   
Accountancy teacher in Delhi for IPCC AND CA-CPT CONTACT NO. 981066111   
              TEACHING CENTRES – LAXMI NAGAR, PITAMPURA, BRAHMPURI     
                           
                           
  SOLUTION FOR ACCOUNTANCY PAPER FOR IPCC GROUP -I CA EXAM MAY 2011  
Answer 4                          
        CFS AS PER AS3- REVISED          
  PARTICULARS                 AMOUNT    
  (a) CASH FLOW FROM OPERATING ACTIVITIES:                
  PBT               1,35,000        
  ADD: NON CASH CHARGES                    
    DEP             75,000        
                  2,10,000        
  ADD: STOCK            20,000          
  LESS:                        
    CREDITORS         (1,00,000)        
    DEBTORS         -20,000 (1,00,000)        
    OPERATING PROFIT AFTER WORKING CAPITAL CHANGE   1,10,000        
  LESS: TAX PAID             -45,000        
    CASH FLOW FROM OPERATING ACTIVITIES         65,000    
  (B) CASH FLOW FROM INVESTING ACTIVITIES:                
    PURCHASE MACHINERY FOR CASH     (1,25,000)        
    SALE OF INVESTMENT       60,000          
    CASH USED IN INVESTING ACTIVITIES           -65,000    
  (C) CASH FLOW FROM FINANCING ACTIVITIES:                
    ISSUE OF ESC FOR CASH         1,50,000        
    BANK LOAN PAID           (1,00,000)        
    CASH FLOW FROM FINANCING ACTIVITIES         50,000    
                           
  A+B+C  INCREASE IN CASH AND CASH EQIVALENTS         50,000    
                           
  ADD: OPENING CASH AND CASH EQIVALENTS                
    CASH         2,00,000            
    BANK         3,00,000       5,00,000    
        CLOSING CASH AND CASH EQIVALENTS       5,50,000    
                           
                           
                           
ANS 5                          
                           
  NOTE TO CA INSTITUTE:                    
  INFO ABOUT SUBSCRIPTION GIVEN IN THIS QUESTION HAS A PRINTING MISTAKE.          
  AS PER ADDITIONAL INFO NO. 1 WE ARE INFORMED THAT IN THE BEGINING OF YEAR SUBSCRIPTION WAS OUTSTANDING ` 5,000  
  BUT AS PER RECIEPT & PAYMENT A/C FOR THE CY ,SUBSCRIPTION RECEVIED FOR LAST YEAR IS `2,11,000. WHICH NEVER CAN BE     
  POSSIBLE.                      
  SO WE ARE ASSUMING IT AS A PRINTING ERROR.                
  PLEASE NOTE (ASSUMPTION FOR SIMPLYFICATION THE QNS)            
  WE ARE ASSUMING                       
  `2,11,000 IS RECEVIED FOR CY I.E 2010-11                  
  `4,500 IS RECEVIED FOR PY I.E 2009-10                  
  `7,500 IS RECEVIED FOR NY I.E 2011-12.                
                           
  WN1                        
        B/S AS ON 1 APRIL 2010              
  SUNDRY EXP O/S   7,000 BANK   1,02,500            
  CAPITAL FUND(B.F)   31,05,500 SUBSCRIPTION O/S 5,000            
          STATIONERY 5,000            
          BUILDING   10,00,000            
          INVESTMENT 20,00,000            
        31,12,500     31,12,500            
                           
      INCOME & EXPENDITURE A/C FOR THE YEAR ENDED 31 MARCH 2011           
  telephone exp 10,000   Subscriptttion (450*500) 2,25,000          
  add:o/s exp 3,500 13,500 Profit on sports fund   1,55,000          
          Income from Investment 1,00,000            
  Sundry exp 92,500   add:Accrued interest           3,750 1,03,750          
  less : paid for py 7,000 85,500                  
  stationery consumed:                    
  purchase   40,000                    
  add;opening stock 5,000                    
  lessclosing stock -9000 36,000                  
  depreciation   50,000                  
  salary     2,08,000                  
  rent     60,000                  
  Surplus(b.f)   30,750                  
        4,83,750       4,83,750          
                           
        B/S AS ON 31 MARCH 2011            
  Sub rec in advance   7,500 cash in bank     45,000        
  telephone bill o/s   3,500 Sub o/s                
  capital fund   31,36,250 for 2009-10 500            
  add: surplus     for 2010-11 14,000   14,500        
          stationery       9,000        
          building less dep     9,50,000        
          investment     21,25,000        
          accrued int on investment   3,750        
        31,47,250         3,147,250        
                           
                           
ans 6                          
  WN1                        
  SALES FOR 2009-10=5,00,000                    
  SALES FOR 2010-11=5,00,000*120/100=6,00,000                
  CASH SALES  6,00,000*20/100=1,20,000                
  CREDIT SALES 6,00,000*80/100=4,80,000                
  WN2                        
    DEBTORS A/C                    
  B/D   1,00,000 BANK(B.F) 4,60,000              
  SALES   4,80,000 C/D   1,20,000              
      5,80,000     5,80,000              
  WN3                        
    CREDITORS A/C                    
  BANK   3,00,000 B/D   82,000              
  BALANCE C/D 1,46,000 PURCHASE(B.F) 3,64,000              
      4,46,000     4,46,000              
                           
  WN3                        
        CASH BOOK                
                           
  DATE      CASH BANK DATE     CASH  BANK      
    B/D   28,000 38,000                
    SALES   1,20,000 -   SALARY   24,000        
    CASH(CONTRA) - 80,000   OFFICE EXP   14,400        
    DEBTORS - 4,60,000   DRAWINGS   6,000        
              CREDITORS     3,00,000      
              RENT     16,000      
              BANK   80,000        
              C/D   23,600 2,62,000      
        1,48,000 5,78,000       1,48,000 5,78,000      
    B/D   23,600 2,62,000                
                           
                           
        TRADING A/C OF MR. A              
        FOR THE YEAR ENDING 2010-2011            
    OPENING STOCK   2,80,000 SALES     6,00,000        
    PURCHASES   3,64,000 CLOSING STOCK   1,60,000        
    GROSS PROFIT   1,16,000                
          7,60,000       7,60,000        
    DEPRECIATION   4,000 GROSS PROFIT   1,16,000        
    SALARY     24,000                
    OFFICE EXP   14,400                
    RENT     16,000                
    NET PROFIT(B.F)   57,600                
          1,16,000       1,16,000        
                           
          B/S OF MR A              
          AS ON 31-3-2011              
    CREDITORS   1,46,000 FURNITURE   36,000        
    CAPITAL   4,04,000   STOCK     1,60,000        
    ADD NET PROFIT 57,600   DEBTORS   1,20,000        
    LESS DRAWINGS 6,000 4,55,600 CASH     23,600        
            BANK     2,62,000        
          6,01,600       6,01,600        
                           
                           
 
                         
  REGISTRATION IS ON FOR THE NEW BATCHES OF ACCOUNTANCY IPCC FOR NOV 2011              
  CONTACT 981066111   FEES ONLY `4,000 FOR SINGLE PAPER             
  CLASSES START FROM    1 JUNE 2011 AT ALL CENTRES              
  COURSE COMPLETE    31-Aug-11                  
  REVISION BATCH START  1-Sep-11                  
  BATCHES TIMINGS                      
    1 MORNING   7:30AM -10:30 AM THRICE A WEEK   MWF        
    2 MORNING   10 AM TO 1 PM     TTS        
    3 NOON   12:30 TO 3:00 PM      MWF        
  FFE CAN BE SUBMITTED AT CENTRES                    
    NO FEE IS CHARGED IF NUMBERS BELOW 50%                
                           
                           
   This paper is solved by Mr. Prashant Bhardwaj M.com ,MBA finance,M.Phil   
Accountancy teacher in Delhi for IPCC AND CA-CPT CONTACT NO. 981066111   
              TEACHING CENTRES – LAXMI NAGAR, PITAMPURA, BRAHMPURI     
                           
                           
  SOLUTION FOR ACCOUNTANCY PAPER FOR IPCC GROUP -I CA EXAM MAY 2011  
                           
ANS 7A   DATE  AMOUNT   DATE FROM BASE PRODUCT            
      5000   0   -            
      4000   26   104000            
      8000   80   640000            
      10000   125   1250000            
      9000   154   1386000            
      36000       3380000            
                           
                           
    ADD= BASE DATE +3380000/36000                
      15 JAN+ 93.88 DAY SAPPROX 94 DAYS              
      19-Apr-10                    
                           
  INTERST ON DRWINGS= 36000*10/100*63/365                
      621 ROUND OFF                
                           
ANS 7B                          
  AS PER AS-2                       
  VALUATION OF INVENTORY IS VALUED AT LOWER OF MP AND CP              
  THEREFORE VALUATION OF INVENTORY                  
  P   475000                    
  Q   980000                    
  R   289000                    
  S   425000                    
  T   160000                    
      2329000                    
                           
ANS 7 C                          
  STEP 1                         
  CALCULATION OF GAINING RATIO OF X;Z = 13:11                
  STEP 2:                        
  SACRIFICING RATIO OF X;Z = 2:1                   
                           
1_ JOURNAL ENTRIES;                      
  X.......................DR 39000                    
  Z.......................DR 33000                    
                       TO Y   72000                  
                           
2_ CASH ................DR 64800                    
            TO PREMIUM   64800                  
                           
3_ PREMIUM           DR 64800                    
    TO X   43200                  
    TO Z   21600                  
                           
ANS 7 D                          
  IT IS PURE THERORITICAL QUS I AM EXPECTING YOU WILL MANAGE IT.            
                           
ANS 7 E                          
   IN GENERAL LEDGER                    
      TOTAL DEBTORS A/C                  
  B/D     77,500 CASH   3800            
  SALES     70000 B/R-ACCEPTED 26000            
          DISCOUNT 1000            
  B/R-DISHON   8500 SALES RETURN 2550            
  CASH(NOTING CHARGES) 250 C/D   88700            
        156250     156250            
  B/D     88700                  
                           
  NOTE:                        
  INT IS ALWAYS CREDITED IF DEBTORS ARE NOT PAYING ON TIME SO IT IS ASSUMED THAT THE GIVEN INTEREST IS       
  FOR CREDTIORS A/C.                    
  APPROCH 2;                      
  IF INTEREST IS DEBITED IN DEBTORS A/C THEN THE CORRECT STATEMENT SHOULD BE PRINTED AS;        
    DEBTORS ARE DEBITED WITH THE AMOUNT OF INTEREST FOR DELEY IN PAYMENY. IN THAT CASE       
    CLOSING DEBTORS BALANCE WOULD BE `87450              
                           
                           
  THANKS                        
    PRASHANT BHARDWAJ                  
    TEACHING SUBJECT .                  
      ACCOUNTANCY  CA-IPCC ,CS-EXEC,CA -CPT.            
   This paper is solved by Mr. Prashant Bhardwaj M.com ,MBA finance,M.Phil   
Accountancy teacher in Delhi for IPCC AND CA-CPT CONTACT NO. 981066111   
              TEACHING CENTRES – LAXMI NAGAR, PITAMPURA, BRAHMPURI     
                           
                           
                           
  IF THIS DOCUMENT CONTAINS ANY MISPRINT THEN PLEASE INFORM ME AT MY MAIL.NO          
      INFO @ EXAMONLINE.ORG                
  FOR NOTES CONTACT ME AT WWW.EXAMONLINE.ORG                
  FOR VIDEO OF ANY TOPIC INFORM ME I WILL UPLOAD ON U TUBE FOR YOU.            
                           
          THANKS.                
                           
                           
                           
 
                         
  REGISTRATION IS ON FOR THE NEW BATCHES OF ACCOUNTANCY IPCC FOR NOV 2011              
  CONTACT 981066111   FEES ONLY `4,000 FOR SINGLE PAPER             
  CLASSES START FROM    1 JUNE 2011 AT ALL CENTRES              
  COURSE COMPLETE    31-Aug-11                  
  REVISION BATCH START  1-Sep-11                  
  BATCHES TIMINGS                      
    1 MORNING   7:30AM -10:30 AM THRICE A WEEK   MWF        
    2 MORNING   10 AM TO 1 PM     TTS        
    3 NOON   12:30 TO 3:00 PM      MWF        
  FFE CAN BE SUBMITTED AT CENTRES                    
    NO FEE IS CHARGED IF NUMBERS BELOW 50%                
                           
                           


Attached File : 33 ipcc accounts may 2011 soved copy.pdf downloaded 1648 times

Total thanks : 4 times

Online classes for CA CS CMA



Renuka
Article'd assistant


[ Scorecard : 29]
Posted On 05 May 2011 at 18:37

hmm, outstanding!1 i have one doubt in insurance claims, why you have reduced the sales by the stock leing with the consigner ?





vipin bansal
india


[ Scorecard : 48]
Posted On 06 May 2011 at 09:04

your most of the answers are wrong




manan Kapadia
student


[ Scorecard : 24]
Posted On 06 May 2011 at 10:35

the goodwill answer for capitalisation method is wrong. it should be 180000.

and in single entry the cash was stolen, so even that answer is wrong.

and even the insurance answer is wrong



Total thanks : 1 times



Vicky
processor


[ Scorecard : 28]
Posted On 06 May 2011 at 10:40

My some answers are match with ur.

So u may be right in some questions & some are really done wrong

Let's see in August




gaurav gupta
ca


[ Scorecard : 24]
Posted On 10 May 2011 at 10:46

your most of the answer are wrong ...............i have a doubt that you are a teacher ?????????




Aditya
STUDENT


[ Scorecard : 22]
Posted On 10 May 2011 at 14:13

sir, the only mistake that i could see in your solutions was in question number6. you have taken the amount of cash to balance-sheet, but that is not the case, question says accountant absconded the cash, that means we have to charge it to P&L the balance amount of rs.23600. and rest are all perfectly correct. hoping to get 65+ in this paper. Inshaallah with the blessing of u and other teachers.




Aditya
STUDENT


[ Scorecard : 22]
Posted On 10 May 2011 at 14:16

all those who have attempted question of NPO i.e. q5 will get full marks in case, if the icai finds that the students have given a good try to solve the question. keep hoping !! 

in other case, evn if u have attempted it. u'll get half marks for attempting nd rest will depend on your working notes and accounts.




prashant bhardwaj
coaching to ca cs classes.b.com pass/hons stock market course NCFM module capital/derivetive


[ Scorecard : 358]
Posted On 10 May 2011 at 18:24

Aditya ,

yes you are right that cash balance as mentioned in the question shuld be t/f to p/l a/c as it was loss.

all others are perfect.

as it was loaded in the early morning at 3:00 am , it happened hope you did't mind .

 

thanks .




prashant bhardwaj
coaching to ca cs classes.b.com pass/hons stock market course NCFM module capital/derivetive


[ Scorecard : 358]
Posted On 10 May 2011 at 19:00

ipcc may 2011 accounts solution updated version



Attached File : 72482 26 ipcc may 2011accounts soved copy.pdf downloaded 1087 times

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