Q2 50M solve Company balance sheet preparation, cost-volume-profit analysis, accounting standards
From the following Trial Balance and other additional information furnished by AGN Ltd., prepare the Balance Sheet as at 31st March, 2025 as required by Schedule-III Division-I of the Companies Act, 2013 and show the Notes to Accounts below the Balance Sheet:
Trial Balance
| Particulars | Debit (₹) | Credit (₹) |
|-------------|-----------|------------|
| Equity Capital (Face Value of ₹ 100) | | 20,00,000 |
| Calls-in-Arrears | 2,000 | |
| General Reserve | | 4,60,000 |
| Loan from SBI (Long-term) | | 3,00,000 |
| Land | 4,00,000 | |
| Building | 8,00,000 | |
| Plant & Machinery | 11,00,000 | |
| Furniture | 1,20,000 | |
| Raw Materials | 1,00,000 | |
| Finished Goods | 4,00,000 | |
| Trade Receivables | 3,80,000 | |
| Advances (Short-term) | 90,000 | |
| Provision for Taxation | | 1,38,000 |
| Dividend Payable | | 1,20,000 |
| Profit & Loss A/c | | 1,80,000 |
| Loans (Unsecured) | | 2,50,000 |
| Trade Payables | | 4,00,000 |
| Cash at Bank | 3,86,000 | |
| Cash in Hand | 70,000 | |
| | 38,48,000 | 38,48,000 |
Additional Information:
(i) 6000 Equity Shares were issued for consideration other than cash
(ii) Loan from SBI includes ₹ 8,000 for interest accrued but not due. The loan is secured by hypothecation of building
(iii) The cost of assets:
| | ₹ |
|-------------|-------------|
| Building | 9,60,000 |
| Plant & Machinery | 14,00,000 |
| Furniture | 1,80,000 |
(iv) Trade Receivables of ₹ 1,80,000 are due for 8 months
(10+10=20 marks)
(b) It is observed that at a monthly sale of ₹ 1,20,000, a firm suffers an operating loss of ₹ 30,000. The management apprehends that any increase in sale will further rise the loss. However, the Accountant of the firm analyzed the situation based on cost, volume and profit, and showed that the firm may earn ₹ 30,000 operating profit by doubling the sale.
Based on the above information, you are required to measure—
(i) P/V ratio;
(ii) monthly fixed costs;
(iii) BEP;
(iv) MOS for profit of ₹ 40,000;
(v) profit for monthly sale of ₹ 3,00,000. (5+3+3+2+2=15 marks)
(c) (i) Explain in brief the principles of inventory valuation based on AS 2.
(ii) Describe in brief the permissible methods of depreciation based on the relevant Accounting Standard. (6+9=15 marks)
हिंदी में पढ़ें
ए० जी० एन० लिमिटेड द्वारा प्रस्तुत निम्नलिखित तलपट और अन्य अतिरिक्त सूचनाओं से, कम्पनी अधिनियम, 2013 की अनुसूची-III डिविजन-I द्वारा अपेक्षित 31 मार्च, 2025 तक तुलन-पत्र तैयार कीजिए तथा तुलन-पत्र के नीचे खातों के लिए नोट्स दिखाइए :
तलपट
| विवरण | ऋण (₹) | जमा (₹) |
|--------|---------|---------|
| इक्विटी पूँजी (अंकित मूल्य ₹ 100) | | 20,00,000 |
| बकाया याचनाएँ | 2,000 | |
| सामान्य संचय | | 4,60,000 |
| एस० बी० आई० से ऋण (दीर्घकालीन) | | 3,00,000 |
| भूमि | 4,00,000 | |
| भवन | 8,00,000 | |
| संयंत्र एवं मशीनरी | 11,00,000 | |
| फर्नीचर | 1,20,000 | |
| कच्ची सामग्रियाँ | 1,00,000 | |
| तैयार माल | 4,00,000 | |
| व्यापारिक प्राप्तियाँ | 3,80,000 | |
| अग्रिम देय (अल्पकालीन) | 90,000 | |
| कर प्रावधान | | 1,38,000 |
| देय लाभांश | | 1,20,000 |
| लाभ-हानि खाता | | 1,80,000 |
| ऋण (असुरक्षित) | | 2,50,000 |
| व्यापारिक देय | | 4,00,000 |
| बैंक में नकदी | 3,86,000 | |
| नकदी (हाथ में) | 70,000 | |
| | 38,48,000 | 38,48,000 |
अतिरिक्त सूचनाएँ :
(i) नकदी के अलावा अन्य प्रतिफल के लिए 6000 इक्विटी शेयर जारी किए गए
(ii) एस० बी० आई० से ऋण में ₹ 8,000 का ब्याज शामिल है, जो कि देय नहीं है। यह ऋण भवन द्वारा सुरक्षित है
(iii) सम्पत्तियों की लागत :
| | ₹ |
|---|---|
| भवन | 9,60,000 |
| संयंत्र एवं मशीनरी | 14,00,000 |
| फर्नीचर | 1,80,000 |
(iv) ₹ 1,80,000 की व्यापारिक प्राप्तियाँ 8 महीने से देय हैं
(10+10=20 अंक)
(b) यह देखा गया है कि ₹ 1,20,000 की मासिक बिक्री पर एक फर्म को ₹ 30,000 का परिचालन घाटा होता है। प्रबंधन को यह आशंका है कि बिक्री में कोई भी वृद्धि नुकसान को और बढ़ा देगी। हालांकि फर्म के लेखाकार ने लागत, मात्रा और लाभ के आधार पर स्थिति का विश्लेषण किया और दर्शाया कि बिक्री को दो गुना करके परिचालन लाभ ₹ 30,000 हो सकता है।
उपर्युक्त जानकारी के आधार पर, आपको मूल्यांकन करना है—
(i) लाभ-मात्रा अनुपात;
(ii) मासिक स्थायी लागत;
(iii) सम-विच्छेद बिंदु (बी० ई० पी०);
(iv) ₹ 40,000 के लाभ के लिए मार्जिन ऑफ सेफ्टी (एम० ओ० एस०);
(v) ₹ 3,00,000 की मासिक बिक्री के लिए लाभ। (5+3+3+2+2=15 अंक)
(c) (i) ए० एस० 2 पर आधारित माल-सूची (इन्वेंटरी) मूल्यांकन के सिद्धांतों को संक्षेप में समझाइए।
(ii) प्रासंगिक लेखांकन मानक के आधार पर मूल्यह्रास की स्वीकार्य विधियों का संक्षेप में वर्णन कीजिए। (6+9=15 अंक)
Answer approach & key points
The directive 'solve' demands precise numerical working with clear presentation. Allocate approximately 40% time to part (a) Balance Sheet preparation (20 marks), 30% to CVP calculations in part (b) (15 marks), and 30% to theoretical explanations in part (c) (15 marks). Begin with structured working notes for (a), show all CVP formulas and derivations for (b), and use AS 2 and AS 10/Ind AS 16 citations for (c). Conclude with brief synthesis on how accounting standards ensure financial statement reliability.
- Part (a): Correct classification under Schedule III Division I—Equity Share Capital with ₹6,00,000 shares issued for non-cash consideration disclosed in notes; Calls-in-Arrears deducted from subscribed capital; SBI loan split between Non-current Borrowings (₹2,92,000) and Other Current Liabilities (₹8,000 interest accrued); Accumulated Depreciation computed and deducted from respective assets (Building ₹1,60,000; P&M ₹3,00,000; Furniture ₹60,000); Trade Receivables bifurcated into Current (₹2,00,000) and Non-current/Other (₹1,80,000) based on 8-month overdue criterion
- Part (a): Complete Notes to Accounts covering: Share Capital details with reconciliation; Reserves & Surplus movement; Secured loan nature disclosure; Tangible Assets schedule with gross block, depreciation, net block; Trade Receivables ageing; Other Current Assets classification
- Part (b): Derivation of P/V ratio using simultaneous equations or contribution approach—establishing that when sales double from ₹1,20,000 to ₹2,40,000, loss of ₹30,000 converts to profit of ₹30,000, implying contribution of ₹60,000 on additional ₹1,20,000 sales, yielding P/V ratio of 50%
- Part (b): Computation of monthly fixed costs (₹90,000), BEP sales (₹1,80,000), MOS for ₹40,000 profit (₹2,60,000 sales or ₹80,000 in value/MOS ratio 33.33%), and profit at ₹3,00,000 sales (₹60,000)
- Part (c)(i): AS 2 principles—valuation at lower of cost and net realisable value; cost includes purchase cost, conversion cost, and other costs to bring to present location/condition; exclusion of abnormal costs; FIFO or Weighted Average as cost formulas; consistency requirement
- Part (c)(ii): AS 6/AS 10/Ind AS 16 permissible depreciation methods—Straight Line, Written Down Value, Units of Production; component accounting for significant parts; depreciation charge even if market value exceeds carrying amount; systematic allocation over useful life; residual value and review of useful life
- Integration: Demonstration of how Schedule III, Companies Act 2013 provisions, and Accounting Standards interconnect in financial reporting framework
Q3 50M explain Income Tax and Corporate Accounting
(a) Explain in brief the deductions that are expressly allowed in computing the income from business under the Income-tax Act, 1961. 15
(b) Harish sold jewellery on 15th June, 2023 for ₹ 10,10,000 (cost of jewellery to Harish on 25th May, 2002 was ₹ 94,500 and brokerage paid on the sale of jewellery was ₹ 10,000). On 15th December, 2023, he purchased a residential house for ₹ 5,00,000. On 15th June, 2023, he did not own any residential house. The cost inflation index for 2002-03 was 105 and for 2023-24, it was 348.
Compute the amount of capital gains chargeable to tax for the Assessment Year 2024-25.
(i) Assuming that Harish sells the new residential house before 15th December, 2026, what will be the taxable capital gains and for which year?
(ii) Assuming that Harish purchases any other residential house before 15th June, 2025 or constructs any other residential house before 15th June, 2026, what will be the taxable capital gains and for which year? 9+3+3=15
(c) Sky Ltd. invited application for issuing 200000 Equity Shares of ₹ 10 each at a premium of ₹ 2 per share, payable as follows:
₹ 6 per share (including premium) on application and allotment
Balance on the first and final call
Applications for 600000 Equity Shares were received. Applications for 300000 shares were rejected and money refunded. Shares were allotted on pro rata basis to the remaining applicants. The first and final call was made and all the amount was received except on 2000 shares, which were forfeited and reissued at ₹ 7 per share.
Pass necessary Journal Entries in the books of Sky Ltd. 20
हिंदी में पढ़ें
(a) आयकर अधिनियम, 1961 के अंतर्गत व्यवसाय से आय की गणना में स्पष्ट रूप से स्वीकृत कटौतियों को संक्षेप में समझाइए। 15
(b) हरीश 15 जून, 2023 को ₹ 10,10,000 में आभूषण बेच देता है (हरीश के लिए इन आभूषणों की लागत 25 मई, 2002 को ₹ 94,500 थी तथा उसने इनके विक्रय पर ₹ 10,000 दलाली के चुकाए)। 15 दिसंबर, 2023 को उसने ₹ 5,00,000 का एक रिहायशी मकान खरीदा। 15 जून, 2023 को उसके पास कोई रिहायशी मकान नहीं था। वर्ष 2002-03 में लागत स्फीति सूचकांक 105 था तथा वर्ष 2023-24 में यह 348 था।
कर निर्धारण वर्ष 2024-25 के लिए करयोग्य पूंजी लाभ ज्ञात कीजिए।
(i) यदि मान लिया जाए कि हरीश नया रिहायशी मकान 15 दिसंबर, 2026 से पहले बेच देता है, तो बताइए कि करयोग्य पूँजी लाभ क्या होगा और किस वर्ष का होगा।
(ii) यदि मान लिया जाए कि हरीश एक अन्य रिहायशी मकान 15 जून, 2025 से पूर्व क्रय कर ले अथवा 15 जून, 2026 से पूर्व एक अन्य रिहायशी मकान बनवा ले, तो बताइए कि करयोग्य पूँजी लाभ क्या होगा और किस वर्ष का होगा। 9+3+3=15
(c) स्काई लिमिटेड ने ₹ 2 प्रति शेयर के प्रीमियम पर ₹ 10 प्रति शेयर के 200000 इक्विटी शेयर जारी करने के लिए आवेदन आमंत्रित किए, जिनका भुगतान इस प्रकार किया जाना था:
आवेदन एवं आवंटन पर ₹ 6 प्रति शेयर (प्रीमियम सहित)
शेष राशि प्रथम एवं अंतिम याचना (कॉल) पर
600000 इक्विटी शेयरों के लिए आवेदन प्राप्त हुए। 300000 शेयरों के लिए आवेदन अस्वीकार कर दिए गए एवं रुपये वापस कर दिए गए। शेष आवेदकों को अनुपातिक आधार पर शेयर आवंटित किए गए। पहली और अंतिम कॉल की गयी और 2000 शेयरों को छोड़कर सभी राशि प्राप्त हुई, जिन्हें जब्त कर लिया गया और ₹ 7 प्रति शेयर पर फिर से जारी किया गया।
स्काई लिमिटेड की पुस्तकों में आवश्यक जर्नल प्रविष्टियाँ कीजिए। 20
Answer approach & key points
The directive 'explain' requires clear exposition with reasoning for part (a), while parts (b) and (c) demand computational precision. Allocate approximately 30% time to part (a) covering Section 30-36 deductions, 30% to part (b) with indexed cost calculations and exemption reversals under Sections 54F and 54, and 40% to part (c) for detailed journal entries including pro-rata allotment, forfeiture and reissue mechanics. Structure with clear headings for each sub-part, show all workings for computations, and conclude with tax liability summary for (b) and balance sheet impact for (c).
- Part (a): Express deductions under Sections 30-36 including rent, repairs, insurance, depreciation (Section 32), scientific research (Section 35), and pre-commencement expenses (Section 35D) with brief description of each
- Part (b): Computation of indexed cost of acquisition (₹94,500 × 348/105 = ₹3,13,200), brokerage adjustment, LTCG before exemption (₹10,10,000 - ₹10,000 - ₹3,13,200 = ₹6,86,800), and Section 54F exemption proportion (₹5,00,000/₹10,00,000 × ₹6,86,800 = ₹3,43,400)
- Part (b)(i): Reversal of Section 54F exemption if new house sold before 3 years (15.12.2026), taxable LTCG of ₹3,43,400 in AY 2027-28 with cost of new house reduced by exempted amount
- Part (b)(ii): Reversal under Section 54F(3) if another residential house purchased/constructed before specified dates, entire exemption of ₹3,43,400 becomes taxable in AY 2025-26 or AY 2026-27 respectively
- Part (c): Journal entries for application money received (₹36,00,000), refund to rejected applicants (₹18,00,000), pro-rata allotment to 300,000 shares (2:3 ratio), allotment money adjustment, first call, forfeiture of 2,000 shares, and reissue at ₹7 with ₹4,000 transferred to capital reserve