solved scanner appendix - sauda.comsauda.com/companion/pdf/cma/cma inter/appendix/new...solved...
TRANSCRIPT
SolvedScanner Appendix
CMA Inter Gr. I (New Syllabus)(Solution of December - 2015)
Paper - 5: Financial Accounting
Chapter - 1 : Accounting Process2015 - Dec [2] (a)(i) Suspense A/c Dr.
To discount receivedTo discount allowed
(Being wrong debit to discount allowedcommission of recording discount received,now rectified)
1,4521,320
132
(ii) Krishan A/c Dr.Suspense A/c Dr.
To Kishan(Being wrong posting to Krishan’s A/c nowrectified)
20180
200
(iii) Sales A/c Dr.Purchase A/c Dr.
To N. KumarTo M. Kumar
50500
50050
(iv) Sales A/c Dr.P. Dass A/c Dr.
To MachineryTo C. Dass
60600
60060
1
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 2
2015 - Dec [5] (a)The accounting entry passed by the accountant of the company is incorrectas it does not depict the original transactions sales should be shown at thegross amount and thereafter, entry of sales return should be passed.The goods returned cost 14,000 on which discount was availed which needs to be reversed. Discount =
= 2,240The correct entries should be:Narmada Ltd. Dr.Discount allowed Dr.
To SalesSales return Dr.
To Narmada Ltd.To Discount
Bank Dr.To Narmada Ltd.
84,00016,000
14,000
70,000
1,00,000
11,7602,240
70,000Balance of ` 2,240 is due from Narmada Ltd.
Chapter - 2 : Accounting Standards2015 - Dec [1] (a), (f)(a) Employer contribution = fair value of asset (end of year) - fair value of
assets (beginning of year)- Actual return + benefit payments.= 15,00,000 - 11,00,000 - 2,20,000 + 2,00,000 = 3,80,000
(f) As per As-9, dividends from investment is shares are not recognised inP/L until a right to receive payment in established.In the Present case, the dividend proposed on 10.4.2015, but thescheme was declared on 10.8.2015, thus it is quite clear that right toreceive payment is established on 10.8.2015. So income be recognisedfor the year ended 31.3.2015, the treatment accorded by Sea Ltd. isincorrect.
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 3
2015 - Dec [2] (c)Items Cost NRV Value per As - 2A 1,00,000 + 20,000
= 120,0001,50,000 - 10,000
= 1,40,000 1,20,000B 50,000 + 5,000
= 55,00050,000 - 5,000
= 45,000 45,000C 1,20,000 + 30,000
= 1,50,0001,80,000 - 20,000
= 1,60,000 1,50,0003,15,000
Value of stock as per As-2 is ` 3,15,000
Chapter - 3 : Reconciliation Statement2015 - Dec [2] (b)Statement showing balance of Volga Ltd.Goods sold on creditAdd:Less: Goods returned by customerPayment received in cashPayment received by cheques(9,80,000 - 1,45,000)Bills receivable issued(4,25,000 - 68,000)Discount allowedCredit note raised againstthe customerActual balanceAdd: goods returned & credit noteraised but not recordedbalance in books
25,00,000
2,10,0002,50,0008,35,000
3,57,000
21,000
10,5008,16,500
2,10,00010,26,500
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 4
Chapter - 4 : Accounting for Depreciation2015 - Dec [1] (b) Cost of Machinery.
Purchase price 5,50,000+ Installation charges 30,000+ Freight & cartage 5,000+ Insurance 10,000
5,95,000Depreciation =
=
= 1,09,800
Chapter - 6 : Preparation of Financial Statements of Not-for-ProfitOrganizations
2015 - Dec [3] (a)Green City Club Receipts & Payments A/c for the year ended 31.3.2015.
Receipts Amount Payments AmountTo bal b/d(balancing figure)To subscription (W. N. - 2)To entrance feesTo contribution forannual dinnerTo profit an annualsports
45,000
13,90,000
2,00,000
1,60,000
20,000
By salaries 4,80,000+ o/s at beg. 40,000- o/s at end 30,000By rentBy printing & stationeryBy travelling exp.By annual dinner exp.By secretary’s honorariumBy general expensesBy interest & bank chargesBy audit feesBy sports equipmentBy books & periodicals By bal c/d
4,90,0001,20,000
30,00060,000
1,40,0001,20,000
60,00018,00015,00035,00030,000
6,97,000
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 5
18,15,000 18,15,000
Balance sheet as on 31.3.2015Liabilities Amount Assets Amount
capital 11,80,000+ surplus 5,77,000o/s salaryo/s Audit fees.Bank loanSubscription received inadv.
17,57,00030,00020,000
1,00,000
140,000
20,47,000
freehold landsport equipmentcash at banko/s subscription
10,00,0002,70,0006,97,000
80,000
2,047,000
Working Notes:(1) Balance sheet as on 31.3.2014
Liabilities Amount Assets Amountcapital(b/f)Bank loanSalaries outstandingo/s Audit fees Subs. received in advance
11,80,0001,00,000
40,00015,00090,000
14,25,000
freehold landsports equipment o/s subscriptioncash at bank
10,00,0002,60,0001,20,000
45,000
14,25,000
(2) Calculation of Subscription received:
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 6
Subscription as per Income & expenditure A/cAdd: subscription received in adv. 31.3.2015Add: o/s subscription as on 31.3.2014Less: subscription received in adv. 31.3.2014Less: o/s subscription as on 31.3.2015
13,00,0001,40,0001,20,000
90,000 80,00013,90,000
Sports equipment
To bal. b/dTo bank(b/f)
2,60,00035,000
2,95,000
By depreciationBy bal. c/d
25,0002,70,000 2,95,000
Chapter - 8 : Partnership Accounts2015 - Dec [3] (c)
Revaluation A/c
FurnitureTo A 18,000
B 13,500C 13,500
15,000
45,00060,000
By Land & building 60,000
60,000
Partner’s capital accounts
To C’s heirTo bal c/d 3,90,000
3,90,000
3,90,000
3,90,000
1,93,500–
3,93,500
By bal b/dBy revaluation profit By bank
3,00,000
18,00072,000
3,90,000
1,50,000
13,5002,26,500
3,90,000
1,80,000
13,500
1,93,500
Partner’s current accounts
7
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 8
To G/WToDrawings To C’sheir
99,900
48,000
1,47,900
99,90072,000
1,71,900
–72,00034,290
1,06,2
90
By intt.on cap.By P/LBy G/WBy bal.c/d
15,000
49,800
79,920
3,1801,47,
900
7,50037,35
059,94
0
67,110
1,71,900
9,00037,35
059,94
0
1,06,2
90
To balb/dTo intt.C’sTo bal.c/d
3,1804,55574,01
581,75
0
67,1109,112
76,222
By intt.on cap.By P/LBy bal.c/d
15,000
66,750
81,750
7,50066,75
01,97276,22
2
--
-
C’s Heir A/cTo bal. c/d 2,41,457 By C’s cap.
By C’s current A/cBy intt.
1,93,50034,290
13,6672,41,457 2,41,457
Balance sheet as on 31.3.15Liabilities Amount Assets Amount
Capital A/cA 3,90,000B 3,90,000CreditorsC’s heir
7,80,00090,000
2,41,457
Land & buildingFurnitureStockDebtorsBank
3,00,00030,000
3,75,00060,000
4,18,500
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 9
A’s current A/c 74,01511,85,472
B’s current A/c 1,97211,85,472
Working NotesG/WAverage profits for 3 years
2011-122012-132013-142014-15
Less: Intt. onCapital @ 8%Less: Remuneration(75,000 × 3)
====
3,36,000/2 3,78,000 3,60,0003,12,000/2
= 3,54,000
62,400
G/W = 66,600 × 3 = 1,99,800
Chapter - 9 : Royalty Accounts2015 - Dec [1] (d) Royalty = 3,00,000 × 10%
= 30,000Minimum rent = 2,00,000Short workings = 1,70,000Payment to Landlord for 14 -15 = 2,00,000.
Chapter - 10 : Hire Purchase and Installment Purchase Accounts2015 - Dec [3] (b)
Shop stock A/cTo Goods repossessed To Purchases (b/f)
95,00071,65,000
By HP stockBy bal c/d
72,60,000
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 10
72,60,000 72,60,000
HP stock A/cTo Shop stockTo HP adj.
72,60,00023,10,00095,70,000
By HP debtorsBy bal. c/d
25,57,60070,12,40095,70,000
HP debtors A/cTo HP stock(balancing figure)
25,57,600
25,57,600
By cash By repossessed goodsBy bal. c/d
22,58,0001,31,600
1,68,000 25,57,600
Repossessed goods A/cTo Hp debtorTo HP adj.To HP adj.
51,80010,00033,200
95,000
By shop stock 95,000
95,000
Stock reserve A/cTo bal. c/d 16,92,721 By HP adj. 16,92,721
HP adj. A/cTo stock reserve To P/L
16,92,7216,60,479
By repossessed goodsBy repossessed goodsBy HP stock
10,00033,200
23,10,00023,53,200 23,53,200
Hire purchase price = Down payment + InstalmentLCD = 8,100 + 5,400 × 10
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 11
= 62,100Cash price = 56,700Refrigerator = 4,000 + 2,000 × 12
= 28,000Cash price = 24,000
Chapter - 11 : Branch Accounts2015 - Dec [1] (c)Opening stock (IP)+ Goods received by branchLess: sales - cash sales
credit sales (1,00,000 - 20%) Less: stock lost by fire
- 20%
Closing stock
12,000 1,38,000
3,000
21,000
46,000 80,000
Chapter - 13 : Self-Balancing Ledger and Sectional Balancing Ledgers2015 - Dec [1] (e)
Debtor’s ledger adj. A/c(In general ledger)To General ledger adj A/c(In debtor’s ledger A-M
General ledger adj. A/c(In debtors ledger N-Z)To Debtors ledger adj. A/c(In general ledger)
5,300
5,300
5,300
5,300
2015 - Dec [4] (a) In the books of Mr. PARDIWALA
Sales Ledger adjustment A/c in the General LedgerParticulars Amount Particulars Amount
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 12
To balance b/dTo General ledgeradj A/c (in sales Ledger)-sales (23,000 - 4,000)- B/R dishonoured- sundry charges
12,400
19,000300
20
31,720
By General ledgeradj A/c (in sales leger) - Cash received- B/R received- Returns inward- Bad debts- Transfer from bought ledgerBy balance c/d
18,5004,000
40050
150
8,62031,720
(b) In the books of M/S VIVAIN & CO.Total creditors A/c is General ledger
Particulars Amount Particulars Amount
To General ledgeradj A/c
- B/P accepted- Cash paid- Purchase returns- Discount received- Transfer from debtors ledger- B/R endorsedTo bal. c/d
62,0001,37,000
11,0006,000
7,00016,000
1,56,0003,95,000
By balance b/dBy General ledger adj A/c
- Purchases- B/P dishonoured- Endorsed B/R
dishonoured
1,25,000
2,67,000
3,000
3,95,000
(c) (i) Meena’s A/c
To MeenuDr. 8,700
8,700(ii) Suspense A/c
To P/L adjustment A/cDr. 1,000
1,000(iii) M/S BPO Ltd.
To P/L adjustment A/cDr. 15,600
15,600
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 13
Chapter - 14 : Accounting for Service Sectors2015 - Dec [5] (b), (c)(b) Amount of foreseeable loss:
Total cost of construction (1400 + 400 +700) = 2,500 Less: Total contract price 2,000 Total foreseeable loss to be recognised as expenses 500 As per As- 7, when it is probable that total contract costs will exceedtotal contract revenue, the expected loss should be recognised as anexpense immediately.Contract work-in-progress:Work certified 1,400Work not certified 400
1,800Proportion of total contract value recognised as revenue.% of work =
= 72%= 2,000 × 72%= 1,440
Amount due from customers.Contract cash + recognised profits – recognised losses – progresspayments received + progress payments to be received.
= 1,800 + 0 - 500 - 1,000 + 200 = 500 lakhs.
This will be shown as liability in B/s.
Relevant disclosures:(` in lakhs)
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 14
Contract revenueContract expensesRecognised profits less loss RetentionsGross amount due from customers
1,4401,800(500)
200500
(c) The minutes of usage (MOU) is the total duration of minutes for whicha customer uses a telecommunication network during a given month. Inthe nascent days of mobile telecommunication in India, airlines rateswere very high and a customer had to pay for incoming calls as well.During those days, the MOU ranged from 110 to 150 minutes permonths, as customers were wary of making calls.However with falling rates, the MOU has steadily reduced. As onSeptember 2005, the blended MOU was in the range of 367 minutessignifying a multi fold increase in network utilisation.The MOU is also analyzed between prepaid and postpaid services andfurther drilled down between incoming and outgoing. In the currentbilling system, a customers does not pay for incoming calls. However,incoming calls being in revenue for a telecom operator in the form of IUCcharges paid by other service providers for terminating calls.
Chapter - 15 : Bills of Exchange2015 - Dec [1] (g)
In the books of Kuntal1.4.15
1.4.15
4.7.15
B/R Dr.To Aloke
Chinu Dr.To B/R
Aloke Dr.To Chinu
5,000
5,000
5,000
5,000
5,000
5,000
2015 - Dec [6] (b)In the books of Gouru
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 15
1.4.15
4.4.15
4.4.15
4.7.15
4.7.15
7.9.15
7.9.15
B/R Dr.To Gyani
Bank A/c Dr.Discount A/c Dr.
To B/RGyani Dr.
To bankTo discount
Gyani Dr.To B/P
Discount A/c Dr.Bank A/c Dr.
To GyaniB/P Dr.
To GyaniGyani A/c Dr.
To bankTo deficience
2,00,000
1,92,500 7,500
1,00,000
1,20,000
50019,500
1,20,000
1,20,000
2,00,000
2,00,000
96,250 3,750
1,20,000
20,000
1,20,000
48,00072,000
In the books of Gyani
1.4.15
4.4.15
4.7.15
4.7.15
4.7.15
7.9.15
Gouru Dr.To B/P
Bank A/c Dr.Discount A/c Dr.
To GouruB/R Dr.
To GouruBank Dr.Discount Dr.
To B/RGouru Dr.
To bankTo discount
Gouru Dr.
2,00,000
96,250 3,750
1,20,000
1,17,0003,000
20,000
1,20 ,000
2,00,000
1,00,000
1,20,000
1,20,000
19,500500
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 16
7.9.15
7.9.15
To bankB/P Dr.
To bankBank Dr.Bad debts Dr.
To Gouru
2,00,000
48,00072,000
1,20,000
2,00,000
1,20,000
In the books of GouruGyanies A/c
To bankTo discountTo B/PTo bankTo deficiency
96,2503,750
1,20,00048,000
72,0003,40,000
By B/RBy discountBy bankBy B/P
2,00,000500
19,5001,20,000
3,40,000
16
Chapter - 17 : Joint Venture2015 - Dec [6] (c)
Memorandum joint venture A/cParticulars Amount Amount Particulars Amount Amount
To Mitrik : Cost of sharesTo Jiban: Stamp charges
AdvertisingCar expensesPrinting charges
To Mitrik : Rent Solicitor’s chargesTo Profit on ventures:To JibanTo Mitrik
1,65,0001,35,0001,54,0001,88,0001,30,000 80,000
12,32,000 6,16,000
12,00,000
6,42,000
2,10,000
18,48,00039,00,000
By Jiban: commissionBy Mitrik :commissionBy Mitrik: saleBy Jiban: sale
90,000 60,00012,50,00025,00,000
39,00,000
In the books of JibanJoint venture with Mitrik A/c
To bank (expenses)
To share of profitTo bank (remittance)
6,42,000
12,32,000 7,16,000
25,90,000
By bank (commission )By bank (sales)
90,00025,00,000
25,90,000
17
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 18
Chapter - 20 : Investment Accounts2015 - Dec [6] (a)
Investment A/c Equity Shares in Pivotals Ltd.
Date Particulars
No.of
shares
Div
Amount
Date Particulars No.of
shares
Div
Amount
1.4.141.9.142.11.1410.11.14
To bal.b/dTo bankTo bonusshareTo bank(rightshares)
20,0005,0005,0005,000
35,000
----
3,20,000
70,000-
75,000
4,65,000
31.12.141.2.1
4
31.3.14
31.3.14
By bankBy bank (saleat 13 per share)By P/L losson saleBy bal. c/dBy P/L
20,000
15,000
35,000
7,500
2,60,000
1,429
1,95,000
1,071
4,65,000
Shares has been assumed ex- rightProceed from sale of right
5000 × 1.5 = 7500Investment are valued at cost or NRV whichever is lows.
Chapter - 21 : Insurance Claims2015 - Dec [1] (h)Claim to be lodged =
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 19
Salvaged stock ×
= 90,000 ×
= 45,000
Chapter - 22 : Accounts of Banking Companies2015 - Dec [1] (i)
Rebate on bills discounted.Due date Days after Discount Amount
90,00060,000
18.6.1513.615
110105
8%9%
2,1701,5533,723
2015 - Dec [7] (b)Rebate on bills discounted
Due date Days after31.3.15
Discountrate
Amount
2,50,000 1,50,000 2,00,000 3,00,000
8.6.1513.6.1528.6.1523.6.15
69748984
10%9%9%8%
4,7262,7404,389
5,52317,378
Rebate on bills discounted A/c Dr.To discount on bills A/c
Bills A/c Dr.To discount A/cTo client A/c
Discount on bills A/c Dr.To Rebate on bills discounted A/c
Discount on bills A/c
44,320
9,00,000
17,378
7,15,526
44,320
2,11,4166,88,584
17,378
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 20
To P/L A/c 7,15,526
Chapter - 23 : Accounts of Electricity Companies2015 - Dec [7] (c) (i), (ii)
(i) Computation of Depreciation:Particulars 1st year
2012-132nd year
2013-143rd year2014-15
Opening capital cost (A)Additional capital cost (B)Closing capital cost
(A+B) (c)Average capital cost(A+C/2)weighted average rate ofdepreciationAnnualised depreciationAdvance againstdepreciationTotal Depreciation
10,00,000 70,00010,70,000
10,35,000
5.20%53,820
6,180 60,000
10,70,000 20,00010,90,000
10,80,000
5.20%56,160
13,840 70,000
10,90,000 15,000
11,05,000
10,97,500
5.20% 57,070
12,930
70,000Computation of advance against depreciation:
2012-13 2013-14 2014-15Repayment of loan (A)Depreciation (B)Difference (A-B) (C)cumulative payment of loan (D)cumulative Dep(E)Difference (D-E) (F)Advance against depreciation(Min of c & f)
60,00053,820 6,18060,00053,820 6,180
6,180
70,00056,160
13,8401,30,0001,09,980 20,020
13,840
70,000 57,070 12,9302,00,000
1,67,050 32,950
12,930
(ii) An immediate shift to the optimized Depreciated Replacement cost(ODRC) method is not recommended due to-
Solved Scanner Appendix CMA Inter Gr. I Paper 5 (New Syllabus) 21
– Problems in producing a detailed asset register.– Absence of norms for standard lives of assets.– Absence of construction cost estimates.– Lack of data on future load growth.
Chapter - 24 : Accounts of Insurance Companies2015 - Dec [1] (j)Balance of funds as on 31.3.2015 = 42,08,400Add:
Premium o/s = 8,110Less: 42,16,510
claims o/s 22,050claims covered under re-insurance 12,000 10,050Balance of life assurance fund 42,06,460
2015 - Dec [7] (a)Heaven Fire Insurance Co. Ltd
Revenue A/c for the year ending 31st march, 2015.
Particulars Sed. No `
Premium received (Net)change in provision for unexpired
Income from Investments riskTotal (A)
claim incurredcommission Management expenses
Total (B)operating loss (A-B)
1
2
1,110 361,146
479 250
150 879
267
Schedule - 1 Premium Earned