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PAPER 1: ACCOUNTING
PART I: ANNOUNCEMENTS STATING APPLICABILITY & NON-APPLICABILITY
FOR MAY, 2016 EXAMINATION
A.

Applicable for May, 2016 examination

Companies Act, 2013
Relevant Sections of the Companies Act, 2013 notified up to 31st October, 2015 will be
applicable for May, 2016 Examination.

B.

Not applicable for May, 2016 examination

Ind ASs issued by the Ministry of Corporate Affairs are not applicable for the students
appearing in May, 2016 Examination.
PART II: QUESTIONS AND ANSWERS
QUESTIONS

Financial Statements of Companies

1.

Ring Ltd. was registered with a nominal capital of ` 10,00,000 divided into shares of
` 100 each. The following Trial Balance is extracted from the books on 31st March, 2015:
Particulars

Particulars

Buildings

5,80,000 Sales

Machinery

2,00,000 Outstanding Expenses

4,000

Closing Stock
Loose Tools

1,80,000 Provision for Doubtful Debts

46,000 (1-4-2014)

6,000

Purchases (Adjusted)
Salaries

4,20,000 Equity Share Capital

1,20,000 General Reserve

Directors Fees
Rent

20,000 Profit and Loss A/c

52,000 (1-4-2014)

Depreciation
Bad Debts

40,000 Creditors
12,000 Provision for depreciation:

Investment
Interest accrued on investment
Debenture Interest
Advance Tax
Sundry expenses

2,40,000
4,000

On Building 1,00,000
On Machinery 1,10,000

56,000 14% Debentures

1,20,000 Interest on Debentures
36,000 accrued but not due

10,40,000

4,00,000
80,000
50,000
1,84,000

2,10,000
4,00,000
28,000

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