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INTERMEDIATE (IPC) EXAMINATION: MAY, 2016

various claims/petitions in a Special Court. XYZ has accepted Inter-Corporate

Deposits (ICDs) and, it is making its best efforts to settle the dues. There were
claims at varied rates of interest, from lenders, from the due date of ICDs to the
date of repayment. The company has provided interest, as per the terms of the
contract till the due date and a note for non-provision of interest on the due date to
date of repayment was affected in the financial statements. On account of
uncertainties existing regarding the determination of the amount and in the absence
of any specific legal obligation at present as per the terms of contracts, the
company considers that these claims are in the nature of "claims against the
company not acknowledged as debt, and the same has been disclosed by way of a
note in the accounts instead of making a provision in the profit and loss accounts.
State whether the treatment done by the Company is correct or not.
AS 2 Valuation of Inventories
18. (a) On the basis of information given below, find the value of inventory (by periodic
inventory method) as per AS 2, to be considered while preparing the Balance Sheet
as on 31st March, 2015 on weighted Average Basis.
Details of Purchases:
Date of purchase

Unit (Nos.)

Purchase cost per unit (`)

01-03-2015

20

108

08-03-2015

15

107

17-03-2015

30

109

25-03-2015

15

107

Details of issue of Inventory:

Date of Issue

Unit (Nos.)

03-03-2015

10

12-03-2015

20

18-03-2015

10

24-03-2015

20

Net realizable value of inventory as on 31 st March, 2015 is ` 107.75 per unit. What
will be the value of Inventory as per AS 2?
AS 3 Cash flow Statements
(b) Classify the following activities as (i) Operating Activities, (ii) Investing Activities,
(iii) Financing Activities (iv) Cash Equivalents.
a.

Purchase of Machinery.

b.

Proceeds from issuance of equity share capital

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