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Brief Answer Questions:
[10 × 2 = 20]Define NFRS.
What is intangible asset?
What do you mean matching concept of accounting?
Write about accrual basis of accounting.
Explain about different types of cheque.
The following transaction are given:
a. Goods costing Rs 60,000 was sold at 10% profit.
b. Rent received Rs 52,000 including advance rent of Rs 4,000
Required: Accounting equation
The following particulars are provided to you:
Profit for the year Rs 20,000
Loss on revaluation Rs 12,000
Gain from cash flow hedges Rs 28,000
Gain on sale of investment Rs 22,000
Required: Statement of Other Comprehensive Income as per NFRS
ABC Company purchased a machine at a cost of Rs 1,000,000 on 1st Baisakh 2077. Installation cost was Rs 50,000. The estimated life of the machine was Rs 5 years with salvage value of Rs 50,000. On 30th Ashwin 2078 machine was sold for Rs 650,000.
Required: Amount of profit or loss from the sales of machine
KK Company purchased a car at the cost of Rs 2,020,000 on 1st Shrawan 2077. The estimated life of the car is 100,000 KMs with salvage value of Rs 20,000. During 2077 and 2078, the car was run for 16,000 KM and 24,000 KM respectively.
Required: Depreciation for the year 2077 and 2078
The following are the information given to you:
➢ Transportation cost on machine purchased
➢ Servicing charge for bike
White wash of old building
➢ Utilities paid
Required: The revenue and capital items
Short Answer Questions:(Attempt any SIX Questions)
[6 × 5 = 30]"Accounting information is needed for decisions", discuss.
Differentiate between accounting and accountancy.
What is trail balance? Why it is prepared?
Following are the information of assets of a Company:
| Particulars | 2077 | 2078 |
| Equipment | 100,000 | 150,000 |
| Building | 300,000 | 400,000 |
| Investment | 90,000 | 270,000 |
| Goodwill | 60,000 | 45,000 |
| Cash and bank | 70,000 | 35,000 |
| Stock | 50,000 | 40,000 |
| Account Receivable | 30,000 | 60,000 |
Required: Comparative (Horizontal) Analysis
The bank statement of a company showed a balance of Rs 42,000 on 30th Shrawan 2079. However the company balance showed a different balance of Rs 38,000. On the investigation, the following differences were noticed:
➢ Outstanding cheque Rs 10,000 /?
➢ Deposit in transit Rs 13,000 /?
➢ A customer's cheque of Rs 4,000 was return with the bank statement marked NSF.
➢ Collection of notes receivable for Rs 4,000 and interest on investment Rs 3,000
➢ Bank charge Rs 2,000 for the service provided by the bank
➢ A cheque of Rs 10,000 was paid by the bank. However, the company recorded Rs 16,000 in its statement.
Required: Bank reconciliation statement
The following information is provided to you:
Sales Rs 800,000
Material consumed Rs 200,000
Carriage Rs 20,000
Office expenses Rs 50,000
Wages and salaries Rs 70,000
Interest paid Rs 20,000
Dividend received Rs 30,000
Depreciation Rs 40,000
Income tax paid Rs 30,000
Required: (a) Value added statement and
(b) Net profit for the year
Required:
a. Profit and loss statement for the year ending 31st December 2022 as per NFRS.
b. Statement of financial position as on 31st December 2022 as per NFRS.
Long Answer Questions:(Attempt any THREE Questions)
[3 × 10 = 30]The SS Company's Statement of Profit and Loss account and Statement of Financial Position for two years have been given below:
| Statement of Profit and Loss for the year 2022 | |
| Particulars | Amount (Rs.) |
| Revenue from operation | 1,000,000 |
| Less: Cost of sales | (650,000) |
| Gross margin | 350,000 |
| Add Other income (including dividend received Rs 21,000) | 50,000 |
| Total | 400,000 |
| Less: Distribution expenses | (80,000) |
| Less: Administrative expenses (including depreciation of Rs 75,000 and bad debts of Rs 10,000) | (225,000) |
| Operating Profit | 95,000 |
| Less: Finance cost | (20,000) |
| Net profit before tax | 75,000 |
| Less: Provision for tax | (18,750) |
| Net profit after tax | 56,250 |
| Less: Dividend paid | (10,000) |
| Retained Earnings | 46,250 |
| Statement of Financial Position of a company for 2021 and 2022 | ||
| Assets | 2021 | 2022 |
| Non-Current Assets: | ||
| Property, plant and equipment | 400,000 | 500,000 |
| Goodwill | 30,000 | 40,000 |
| Investments | 170,000 | 210,000 |
| Total Non-Current Assets | 600,000 | 750,000 |
| Current Assets: | ||
| Inventories/Stock | 40,000 | 50,000 |
| Cash and cash equivalents | 50,000 | 60,000 |
| Account receivables | 50,000 | 70,000 |
| Trade and Other receivables | 30,000 | 40,000 |
| Total Current Assets | 170,000 | 220,000 |
| Fictitious Assets | ||
| Total Assets (Total Non-current and Current Assets) | 770,000 | 970,000 |
| Equity: | ||
| Share capital @Rs 100 each | 400,000 | 500,000 |
| Reserve/Retained earnings | 50,000 | 96,250 |
| Non-controlling interests | ||
| Total Equity | 450,000 | 596,250 |
| Liabilities | ||
| Non-Current Liabilities: | ||
| Loans and borrowings | 100,000 | 200,000 |
| Total Non-Current Liabilities | 100,000 | 200,000 |
| Current Liabilities: | ||
| Trade and other payable | 180,000 | 155,000 |
| Income tax liabilities | 18,750 | |
| Provisions | 40,000 | |
| Total Current-Liabilities | 220,000 | 173,750 |
| Total Liabilities (Total Non-current and Current) | 320,000 | 373,750 |
| Total Equity and Total Liabilities | 770,000 | 970,000 |
Required: Statement of Cash Flow under NFRS
Comprehensive Answer/ Case / Situation Analysis Questions:
[20]The GG Company's Statement of Profit and Loss account and Statement of Financial Position for two years have been given below:
| Statement of Profit and Loss for the year 2022 | |
| Particulars | Amount (Rs) |
| Revenue from operation (including credit sales of Rs 650,000) | 1,200,000 |
| Less: Cost of sales | (700,000) |
| Gross margin | 500,000 |
| Add Other income | 70,000 |
| Total | 570,000 |
| Less: Distribution expenses | (160,000) |
| Less: Administrative expenses | (220,000) |
| Operating Profit | 190,200 |
| Less: Finance cost | (30,000) |
| Net profit before tax | 160,000 |
| Less: Provision for tax | (40,000) |
| Net profit after tax | |
| Statement of Financial Position of a company for 2021 and 2022 | ||
| Assets | 2021 | 2022 |
| Non-Current Assets: | ||
| Property, plant and equipment | 500,000 | 600,000 |
| Intangible Assets | 80,000 | 40,000 |
| Investments | 70,000 | 100,000 |
| Total Non-Current Assets | 600,000 | 740,000 |
| Current Assets: | ||
| Inventories/Stock | 40,000 | |
| Cash and cash equivalents | 30,000 | 50,000 |
| Account receivables | 40,000 | 70,000 |
| Trade and Other receivables | 60,000 | 30,000 |
| Total Current Assets | 170,000 | 190,000 |
| Fictitious Assets | ||
| Total Assets (Total Non-current and Current Assets) | 770,000 | 930,000 |
| Equity: | ||
| Share capital @Rs 100 each | 400,000 | 450,000 |
| Reserve/Net Profit | 100,000 | 220,000 |
| Non-controlling interests | ||
| Total Equity | 500,000 | 670,000 |
| Liabilities | ||
| Non-Current Liabilities: | ||
| 10% Loans and borrowings | 150,000 | 200,000 |
| Total Non-Current Liabilities | 150,000 | 200,000 |
| Current Liabilities: | ||
| Trade and other payable | 100,000 | 20,000 |
| Income tax liabilities | 40,000 | |
| Provisions | 20,000 | |
| Total Current-Liabilities | 120,000 | 60,000 |
| Total Liabilities (Total Non-current and Current) | 270,000 | 260,000 |
| Total Equity and Total Liabilities | 770,000 | 930,000 |
Required for 2022:
a. Current ratio (2:1)
b. Acid test ratio (1:1)
c. Debt to total capital ratio (less than 40%)
d. Stock turnover ratio (at least 8 times)
e. Total assets turnover ratio (more than 1 time)
f. Net profit margin (at least 12%)
g. Return on equity (at least 7%)
h. Return on assets (at least 5%)
i. Average sales period (45 days or less than 45 days)
j. Account receivable turnover ratio (at least 8 times)
k. Comment on the results