CA – INTER: ADVANCED ACCOUNTING

(LIST OF IMPORTANT QUESTIONS FOR MAY – 2024 ATTEMPT)

Chapter Name List of Important Questions (Number) Total Questions
Company Final 1, 15, (2 more questions given below) 4
Accounts
Internal Reconstruction 21, 27, 24, 28 4
Buy – Back of Securities 14, 16, 17 3
Branch Accounting 10, 11, 15, 20, 28, 31, 34, 39, 43 9
Cash Flow Statement 4, 8, 13, 21, 22, 35, 38, 41 8
(AS – 3)
Consolidated Financial 11, 13, 20, 23, 28, 30, 39 7
Statement (AS – 21)
Amalgamation 4, 10, 21, 22, 30, 33 6
AS – 1 Read all Questions Once -
AS – 2 10, 12, 14, 43, 54, 56 6
AS – 4 Read all Questions Once -
AS – 5 Read all Questions Once -
AS – 7 6, 8, 12, 16, 17, 21 6
AS – 9 Read all Questions Once -
AS – 10 3, 13, 28, 31, 32 5
AS – 11 6, 14, 16, 17 4
AS – 12 5, 10, 12, 16, 20 5
AS – 13 12, 15, 23, 24, 27, 35, 38 7
AS – 15 Attempt all questions 7
AS – 16 23, 24, 26, 27 4
AS – 17 4, 9, 16, 24 4
AS – 18 Read all Questions Once -
AS – 19 8, 9, 11, 23, 31, 34 6
AS – 20 5, 7, 12, 15, 22, 26 6
AS – 22 2, 8, 11, 17, 20, 24 6
AS – 23 Attempt all questions 4
AS – 24 Read all Questions Once -
 AS – 25 Attempt all questions 8
AS – 26 6, 8, 10, 16, 17, 20 6
AS – 27 Attempt all questions 6
AS – 28 Attempt all questions 10
AS – 29 Read all Questions Once -
Total Number of Questions 137
This is a list of important question which covers almost each concept of every chapter. Although, it is
recommended to do all questions of the given book and then re-attempt these questions for thorough revision.
Q1. On 31st March, 20X1, SR Ltd. provides the following ledger balances after preparing its Profit & Loss Account
for the year ended 31st March, 20X1.
Dr Cr
Equity Share Capital, fully paid up of ₹50 each 80,00,000
Calls in arrears 15,000
Land 25,00,000
Building 30,00,000
Plant and Machinery 24,00,000
Furniture & Fixture 13,00,000
Securities Premium 15,00,000
General Reserve 9,41,000
Profit & Loss Account 5,80,000
Loan from Public Finance Corporation (Secured by Hypothecation of Land) 26,30,000
Other Long term Loans 22,50,000
Short term borrowings 4,60,000
Inventories: Finished Goods 45,00,000
Raw Materials 13,00,000
Trade Receivables 17,50,000
Advances: Short Term 3,75,000
Trade Payables 8,13,000
Provision for Tax 3,80,000
Unpaid Dividend 70,000
Cash in Hand 70,000
Balances with Banks 4,14,000
1,76,24,000 1,76,24,000
The following additional information was also provided in respect of the above balances:
1. 50,000 fully paid equity shares were allotted as consideration for land.
2. The cost of assets were: Building ₹ 32,00,000; Plant and Machinery ₹ 30,00,000; Furniture and Fixture ₹
16,50,000
3. Trade Receivables for ₹ 4,86,000 due for more than 6 months.
4. Balances with banks include ₹ 56,000, the Naya bank, which is not a scheduled bank.
5. Loan from Public Finance Corporation repayable after 3 years.
6. The balance of ₹ 26,30,000 in the loan account with Public Finance Corporation is inclusive of ₹1,34,000 for
interest accrued but not due. The loan is secured by hypothecation of land.
7. Other long term loans (unsecured) includes: Loan taken from Nixes Bank ₹13,80,000 (Amount repayable within
one year ₹4,80,000); Loan taken from Directors ₹8,50,000
8. Bills Receivable for ₹1,60,000 maturing on 15th June, 20X1 has been discounted.
9. Short term borrowings includes: Loan from Naya bank ₹1,16,000 (Secured); Loan from directors ₹48,000
10. Transfer of ₹35,000 to general reserve has been proposed by the Board of directors out of the profits for the year.
11. Inventory of finished goods includes loose tools costing ₹5 lakhs (which do not meet definition of property, plant
& equipment as per AS 10)
You are required to prepare the Balance Sheet of the Company as on March 31st 20X1 as required under Part - I of
Schedule III of the Companies Act, 2013.
SOLUTION: SR Ltd Balance Sheet as at 31st March 20X1
Particulars Note No Amount in ₹
Equity and Liabilities
I Shareholders' Funds
a. Share Capital 1 79,85,000
b. Reserves and Surplus 2 30,21,000
II. Non-Current Liabilities
a. Long Term Borrowings 3 42,66,000
III. Current Liabilities
a. Short Term Borrowings 4 9,40,000
b. Trade Payables 8,13,000
c. Other Current Liabilities 5 2,04,000
d. Short Term Provisions 6 3,80,000
Total 1,76,09,000
Assets
I. Non-Current Assets
a. Property, Plant and Equipment 7 92,00,000
II. Current Assets
a. Inventories 8 58,00,000
b. Trade Receivables 9 17,50,000
c. Cash and Cash equivalents 10 4,84,000
d. Short Term Loans & Advances 3,75,000
Total 1,76,09,000
Notes to Accounts
(Amount ₹)
1 Share Capital
Equity Share Capital: Issued & Subscribed Capital
1,60,000 equity shares of ₹50 each (out of which 50,000 shares have
been issued for consideration other than cash) 80,00,000
Less: Calls in arrears (15,000) 79,85,000

2 Reserves & Surplus

General Reserve 9,41,000
Add: Transferred from profit & Loss account 35,000 9,76,000
Securities Premium 15,00,000
Surplus (Profit & Loss a/c) 5,80,000
Less: Transferred to General Reserve (35,000) 5,45,000
Total 30,21,000
3 Long-Term Borrowings
Secured: Term Loans
Loan from Public Finance Corporation [repayable after 3years
(₹26,30,000 - ₹1,34,000 for interest accrued but not due)] (secured by
hypothecation of land) 24,96,000
Unsecured:
Bank Loan (Nixes Bank) 9,00,000
Loan from Directors 8,50,000
Others 20,000 17,70,000
42,66,000
4 Short Term Borrowings
Loan from Naya bank (Secured) 1,16,000
Loan from Nexis Bank (Payable within one year) 4,80,000
Loan from Directors 48,000
Others 2,96,000 9,40,000

5 Other Current Liabilities

Unpaid Dividend 70,000
Interest accrued but not due on borrowings 1,34,000 2,04,000

6 Short Term Provisions

Provision for Tax 3,80,000
 7 Property, Plant and Equipment
Land 25,00,000
Building 32,00,000
Less: Depreciation (2,00,000) 30,00,000
Plant and Machinery 30,00,000
Less: Depreciation (6,00,000) 24,00,000
Furniture & Fittings 16,50,000
Less: Depreciation (3,50,000) 13,00,000
Total 92,00,000
8 Inventories
Raw Material 13,00,000
Finished Goods 40,00,000
Loose Tools 5,00,000 58,00,000
9 Trade Receivables
Outstanding for a period exceeding 6 months 4,86,000
Others 12,64,000 17,50,000
10 Cash & Cash Equivalents
Balances with Banks
With Scheduled Bank 3,58,000
With other banks 56,000 4,14,000
Cash in Hand 70,000
4,84,000

Q2. The following is the Trial Balance of Delta Limited as on 31.3.20X2: (Figures in ₹ '000)
Debit Credit
Land at cost 800 Equity Capital (Shares of ₹ 10 each) 500
Plant & Machinery at cost 824 10% Debentures 300
Trade Receivables 120 General Reserve 150
Inventories (31.3.X2) 96 Profit & Loss A/c 75
Bank 28 Securities Premium 40
Adjusted Purchases 400 Sales 1,200
Factory Expenses 80 Trade Payables 30
Administration Expenses 45 Provision for Depreciation 150
Selling Expenses 25 Suspense Account 10
Debenture Interest 30
Calls in arrears 5
 Cash in Hand 2
2455 2455

Additional Information:
1) The authorised share capital of the company is 80,000 shares of ₹10 each
2) The company on the advice of independent valuer wish to revalue the land at ₹9,60,000.
3) Equity share capital includes shares of ₹50,000 issued for consideration other than cash.
4) Suspense account of ₹10,000 represent cash received for the sale of some of the machinery on 1.4.20X1. The
cost of the machinery was ₹24,000 and the accumulated depreciation thereon being ₹20,000. The balance of
Plant & Machinery given in trial balance is before adjustment of sale of machinery.
5) Depreciation is to be provided on plant and machinery at 10% on cost.
6) Balance at bank includes ₹5,000 with ABC Bank Ltd., which is not a Scheduled Bank.
7) Make provision for income tax @30%.
8) Trade receivables of ₹50,000 are due for more than six months.
You are required to prepare Delta Limited's Balance Sheet as on 31.3.20X2 and Statement of Profit and Loss with
notes to accounts for the year ended 31.3.20X2 as per Schedule III. Ignore previous years' figures & taxation.
SOLUTION: Delta Ltd Balance Sheet as at 31st March 20X2
Particulars Note No ₹’000
Equity and Liabilities
I Shareholders' Funds
a. Share Capital 1 495.00
b. Reserves and Surplus 2 807.20
II. Non-Current Liabilities
a. Long Term Borrowings 3 300.00
III. Current Liabilities
a. Trade Payables 30.00
b. Short Term Provisions 4 163.80
Total 1,796.00
Assets
I. Non-Current Assets
a. Property, Plant and Equipment 5 1,550.00
II. Current Assets
a. Inventories 96.00
b. Trade Receivables 6 120.00
c. Cash and Cash equivalents 7 30.00
Total 1,796.00
Statement of Profit and Loss for the year ended 31st March 2021
 Particulars Note No ₹’000
I. Revenue from operations 1,200.00
II. Other Income 8 6.00
III. Total Income (I + II) 1,206.00
IV. Expenses:
Purchases (adjusted) 400.00
Finance Costs 9 30.00
Depreciation and Amortization 80.00
Other Expenses 10 150.00
Total Expenses 660.00
V. Profit/(Loss) for the period 546.00
Less: Taxes Paid @ 30% 163.80
Profit for the period 382.20
Notes to Accounts
(₹’000)
1 Share Capital
Equity Share Capital: Authorised
80,000 equity shares of ₹10 each 800.00
Equity Share Capital: Issued & Subscribed Capital
50,000 equity shares of ₹10 each (out of which 5,000 shares have been
issued for consideration other than cash) 500.00
Less: Calls in arrears (5.00) 495.00

2 Reserves & Surplus

General Reserve 150.00
Revaluation Reserve (₹960 – ₹800) 160.00
Securities Premium 40.00
Surplus (Profit & Loss a/c): Opening Balance 75.00
Add: Profit for the period 382.20 457.20
Total 807.20
3 Long-Term Borrowings
10% Debentures 300.00

4 Short Term Provisions

Provision for Tax 163.80

5 Property, Plant and Equipment

 Land
Opening Balance 800.00
Add: Revaluation Adjustment 160.00 960.00
Plant and Machinery
Opening Balance 824.00
Less: Disposed off (24.00)
800.00
Less: Depreciation (₹150 – 20 + 80) (210.00) 590.00
1,550.00
6 Trade Receivables
Outstanding for a period exceeding 6 months 50.00
Others Debts 70.00 120.00
7 Cash & Cash Equivalents
Balances with Banks
With Scheduled Bank 23.00
With other banks 5.00 28.00
Cash in Hand 2.00
30.00
8 Other Income
Profit on sale of Machinery (Sales Value – Book Value) (10 – 4) 6.00
9 Finance Costs
Debenture Interest 30.00
10 Other Expenses:
Factory Expenses 80.00
Selling Expenses 25.00
Administrative Expenses 45.00 150.00