Analysis and answers of nov 2011 accounts ipcc

IPCC 4450 views 36 replies

A good paper... I found tougher than may 2011 especially question 1 ipcc

 

My analysis and answers ( reverse order)

Ans 7 - (b) AS 9- Revenue cannot be recognized in 2010-11

           (c) Simple question on disclosures of AS 14

           (d) AS 7 Profit = 160, expected loss = Rs 20

          (e) AS 6 Depreciation , change acceptable

 

Ans 6 (a) Bonus issue Securities premium can be used upto Rs 30,000

               Capital Reserve can be used Rs 90,000 ( 60,000 being NOT realized in cash as exchange of machine is for              other than cash)

Assumption- AUTHORIZED CAPITAL TO BE INCREASED BY 40,000

 

Extract of R & S

Capital Reserve= 60,000

Securities Premium= 20,000

Pand L 60,000

 

Ans 6 (b) Good question on ADD .Date at which savings of 150- 18 july  ( ADD- 3 August)

 

Ans 5 (a) INSURANCE CLAIM - LOSS OF STOCK POLICY- NORMAL AND ABNORMAL LOSSES

             closing stock 92,500 ( 90,000 normal and 2500 abnormal)

             CLAIM = Rs 47027

             special points- Drawing by partner is given at sales price- to be converted to cost

                                      Goods with consignee is to be reduced from clsoing stock as these are lying in                                   CONSIGNEES  GODOWN

(b) simple points- business requirements, reputation of vendor etc...

 

Ans 4 (a) cash flow statement-OA 190, FA (50)  IA (65)

           (b) Time ratio= 4:5                                 Sales ratio I was confused between 1:2 and 2:5 What you guyz say????????

              General exp 6320 and 7900         rent 400 and 950              director 2000 and 5000     incorporation exp  - and 1500

 

Ans 3 I left it in choice

 

Ans 2 Capital Reserve 2,98,000 Balance sheet 11,26,000

 

Ans 1  i cant predict please tell what you got

Replies (36)

its 2:5 ,u can check it out in revision test paper.

sales ratio is 2:5.

the similar ques I read in some book...........

Yup. I did it fully correct. 7280 and 24650. What about ans 1

ans1: effective capital is between 1 to 5 crores hence maximum permissabl 'managerial remuneration'  is 100000 Rs. but now the question is will the maximum limit of 5% & 10 % for managing director's ,apply on this 1 lakh !! ?? weired question..i dint do it too. My fck*** institute had a misprint in their books which said "minimum remuneration as 100000", so i did it wrong. i checked it tonight in ICAI module but even that doesnt specify whether on this 1 lakh 5% will apply or not.

does any1 have idea..i was not able to complete reconstruction question, i made reconstruction account and balance sheet which are perfect but i was not able to write journal entries, time died on me. do they give markst for steps too? partial marking..damn i need it :(

Originally posted by : akshat

ans1: effective capital is between 1 to 5 crores hence maximum permissabl 'managerial remuneration'  is 100000 Rs. but now the question is will the maximum limit of 5% & 10 % for managing director's ,apply on this 1 lakh !! ?? weired question..i dint do it too. My fck*** institute had a misprint in their books which said "minimum remuneration as 100000", so i did it wrong. i checked it tonight in ICAI module but even that doesnt specify whether on this 1 lakh 5% will apply or not.

THese provisions wwerre applicable incase the company had insufficient profits
but the question states a profit of 3000...

the managing director shall be paid renumeration 5%of (3000+600)


 

Originally posted by : akshat

ans1: effective capital is between 1 to 5 crores hence maximum permissabl 'managerial remuneration'  is 100000 Rs. but now the question is will the maximum limit of 5% & 10 % for managing director's ,apply on this 1 lakh !! ?? weired question..i dint do it too. My fck*** institute had a misprint in their books which said "minimum remuneration as 100000", so i did it wrong. i checked it tonight in ICAI module but even that doesnt specify whether on this 1 lakh 5% will apply or not.

what i did was wrote 1,00,000 p.m but at the same time i wrote it being a profit making co. will get 5% of 3000 ( not 3600 paigaam)

Hey are der step marks for incomplete or partially correct answers??

reg ADD should'nt we round off the values to the nexy day.... 

so ADD will be 4th Aug and the reqd. date will be 19 July...

Originally posted by : Paigaam




Originally posted by : akshat






ans1: effective capital is between 1 to 5 crores hence maximum permissabl 'managerial remuneration'  is 100000but now the question is will the maximum limit of 5% & 10 % for managing director's ,apply on this 1 lakh !! ?? weired question..i dint do it too. My fck*** institute had a misprint in their books which said "minimum remuneration as 100000", so i did it wrong. i checked it tonight in ICAI module but even that doesnt specify whether on this 1 lakh 5% will apply or not.







THese provisions wwerre applicable incase the company had insufficient profits
but the question states a profit of 3000...

the managing director shall be paid renumeration 5%of (3000+600)


 

@ paigaam: it is profit as per sec 349,350 351 i.e before any remuneration so 600 wont be added for 5 % calculation. secondly, if questions aksk us to calculate as per effective capital we have to do it as per effective capital basis...ye saale apne mayi baap hain ,as far as exams are concerned they are above law, & anyways there is no parameter to judge "sufficiency of profit"..3000000 may be insufficient for a businees having around 2.5 crores of effective capital

@ rahul: u did right. u sailed in two boats at a time , u played safe u will get atleast 3 marks. (minimum remuneration for u for insufficient answer)

 

Originally posted by : Vamsee Krishna

reg ADD should'nt we round off the values to the nexy day.... 

so ADD will be 4th Aug and the reqd. date will be 19 July...

no we wont round up it to 4th july as fraction is .25 , logically it is lesser then half so it is rounded off to lesser part

There are step markings ,without that the passing percentage would be even lower than what it is at present.

Dear All,

I have upload solutions/suggested answer of PCC- Accounts Paper Nov 2011 on 13-11-2011 and it is with moderator for approval. Meanwhile if anyone wants the solutions mail me at mittalcaatul @ gmail.com.  

 

hey can anybody tell .. the question that was asked in the question paper on sale or returnable basis was from which chapter ??


CCI Pro

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