The Institute of Chartered Financial Analysts of India University 2011 C.A Chartered Accountant Chartered Accountancy -Pcc - Mock Test Series 1 - Question Paper

(1) The accounts of the Branch fixed assets are maintained in the Head Office
books.
(2) Write off Depreciation on Furniture at five per cent per annum for full year.
(3) A remittance of Rs. 20,000 from the Branch to the Head Office is in transit.
(4) The Branch values its closing stock at Rs. 1,20,000.
6. The trial balance of Complex Ltd. as at 31st March, 2007 indicates the subsequent
items:
Dr. Cr.
Rs. Rs.
Advance payment of income tax 2,20,000 ?
Provision for income tax for the year ended
31.3.2006
? 1,20,000
The subsequent further informations are provided :
(i) Advance payment of income tax includes Rs. 1,40,000 for 2005-2006.
(ii) true tax liability for 2005-2006 amounts to Rs. 1,52,000 and no effect for
the identical has so far been provided in accounts.
(iii) Provision for income tax has to be made for 2006-07 for Rs. 1,60,000.
You are needed to prepare (a) provision for income tax account, (b) advance
payment of income tax account, (c) liabilities for taxation account and also show,
how the relevant items will appear in the profit and loss account and balance
sheet of the Company.
7. A company problems 1,000 14% Debentures of Rs.1,000 every at a premium of 20%.
Sixty per cent of the problem was underwritten by M/s Bulls & Bears for a
commission @ 1.5% of the problem price of debentures underwritten. Applications
were received for 800 debentures which were accepted and payment of these was
received in full. provide journal entries
8. Electric Supply Ltd. rebuilt and re-equipped 1 of their Mains at a Cash Cost of
Rs. 40,00,000. The old Mains thus superseded cost Rs. 15,00,000. The capacity
of the new Main is double that of the old Main. Rs. 70,000 was realised from
sale of old materials. 4 old motors valued at Rs. 2,00,000 salvaged from the
old Main were used in the reconstruction. The cost of Labour and Materials is
respectively 30% and 25% higher now than when the old Main was built. The
proportion of Labour to Materials in the Main then and now is two : 3.
Show the Journal entries for recording the above transactions, if accounts are
maintained under Double Account System.
9. ans the subsequent (Give adequate working notes in support of your answer):
(a) Alpha Ltd. purchased marketable securities of the face value of Rs. 10,000 at

Earning:   Approval pending.