Analysis and answers of nov 2011 accounts ipcc

Rahul (Chartered Accountnat CS)   (1580 Points)

02 November 2011  

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