Answers of advanced accounting nov 2011

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 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 = 16,78,200 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