Ans 1 (a) Amount to be capitalized = Rs. 4,80,000
Amount to be charged to P and L A/c= 7,20,000
(b) Dont know
(c) Amount to be transfered to capital reserve = 60,000
(d) 1 Head office exp to Head ofice A/c
2 Deprectiatio Dr to head ofice a.c
3 Head Office to salaries
4 Head Office to Debtor
Ans 2 Realisation loss = Rs. 1,00,300
In applying Garnar murray P and Q will be liable to contribute deficiency. S having debit balance wil not bring anything
Entry for garner murray
P Dr 12,636
Q Dr 8,424
To R 21,060
Ans 3 I left it in choice
Ans 4 Capital bse = Rs 4,77,80,000 Reasonable Return = 62,39,600
Ans 5 a Opening stock reserve = 59850 Closing stock reserve = 80,640 GP rate of current year = 16% Final Profit = 27,73,710 ( approx)
b rebate = 37591 current year income = 6,33,819
Ans 6 a P NIL Q 4500 R 4320 S 3188 T 2000
ans 6 b Premium = 16,72,800 claim 12,00,000 tax may be deducted here or may be deducted in p and l ( i gave note and transfered to p and l) Profit = 115050
Ans 7 a Whole 8 lacs can be written off provided that the accounts are not approved till may 2011 ( AS 4)
c Employees Compensation Expenses to be charged to P and l = Rs. 4,32,000
d theory
e Reliability, relevence, etc
Guyz Please correct me if i am wrong
CAclubindia
