Symbiosis Law School, Pune

Subject: Project-Corporate Accounting

(SEM II) Batch: 2017-22 BBA.LLB
Internal Backlog
Date: 16-01-19 Total Marks- 25

Instructions:
 Assignment has to be handwritten/ typed.
 The Last date for submission is 15th February, 2019.
 All questions carry equal marks.
 All Questions are compulsory.
 Submit the backlog Assignment to Class coordinator on or before last date during
10.00am to 3.00pm.
 Students Name, Class, Div. & Roll No., Mobile No. Should be there on the first page of
assignment.
Questions:
Q1) Diamond Engineering Co. Ltd, Mumbai was incorporated with an authorized share capital
of Rs. 10, 00,000 divided into 10,000 equity shares of Rs. 100 each. The following is the trial
balance as on 31-3-2017
Trial Balance as on 31-3-2017
Particulars Debit Rs. Credit Rs.
Plant & Machinery 5,60,000
Land and Building 5,62,400
Share Capital called up 8,00,000
Loose Tools 60,000
Furniture 14,000
Cash in hand 8,400
10% Government Bonds (Face value Rs. 50,000) 49,000
Bills receivables 54,720
Goodwill 1,62,000
Motor Vehicles 11,000
Sundry Debtors 82,000
Interim Dividend paid 17,000
Calls in arrears 50,000
Purchases 9,37,000
Advertisement 10,000
Audit fees 4,160
Carriage Inwards 15,800
Wages 50,000
Discount allowed 5,800
Insurance 16,600
 Stock (1.4.2016) 1,90,000
General Expenses 2,640
Salaries 20,000
Bad-debts 2,000
Share Premium 4,000
Sundry Creditors 58,400
Bills Payable 20,000
General reserve 1,50,000
Sinking Fund 20,000
Deposits 20,000
Profit and Loss Appropriation A/c (1.4.2016) 60,000
Share Transfer fees 5,200
Sales 12,60,000
Rent received 43,200
15% debentures 3,00,000
Bank overdraft 1,40,000
Discount 3,720
28,84,520 28,84,520

You are required to prepare Statement of Profit and Loss for the year ended 31stMarch, 2017 and
Balance Sheet as on that date in the prescribed form under the Companies Act,
The following adjustments have also to be made:
1. The stock on 31-3-2017 was valued at Rs. 1,90,000
2. Provide depreciation on plant and machinery at 5% and Furniture at 10% per annum.
3. Outstanding wages Rs. 4,000.
4. Insurance prepaid amounted to Rs. 1,500.
5. Interest on debentures and from Government Bonds is due and accrued for the year.
6. Provision for taxation to be made at 50% on net profit.
7. The directors propose the following appropriations of profit :
a) To declare a tax free dividend of 10% on paid up capital.
b) To transfer a sum of Rs. 5,000 to General Reserve.

Q2) What do you understand by “International Financial Reporting Standards” (IFRS)

What is the need for IFRS? What are its goals & Objectives?

You are required to read IFRS standard 1 in detail & answer the following questions:
a) What are the objective & scope of Standard 1?
b) What is the purpose of preparing accounting Statements?
c) Going Concern
d) Accrual basis of Accounting
e) Materiality & aggregation
f) Offsetting
g) Change in Accounting policy, retrospective statement or reclassification
h) Definition of current assets
i) Definition of current liabilities
j) Disclosure of accounting policies