52 MCQs and 8 long questions. Little tough for me.
Long questions are below.
A customer was considered doubtful at the Balance Sheet date. A provision for such customer was made @ 50%. After the Balance Sheet date, customer was declared as insolvent based on his financial position on year end.
Required:
According to IAS, which items shall be disclosed on the face of the Income Statement as allocations to profit or loss for the period?
What are the major classifications of expenses in which the expenses have been distributed for presentation in Income Statement?
Suppose a company has a:
Required:
List down the items that should be included in Cash flows from operating activities?
If:
Calculate the total amount of expenses with respect to their nature.
If:
ABC Limited acquired “Material X” in place of “Material Y” from XYZ Limited.
Then:
a) A ltd. Co. acquired the asset on lease; fair value of the asset is Rs. 50,000. The company has no intention to buy it at the end of lease term. The present value of minimum lease payments is Rs. 46,000
b) B ltd. Co. acquired the asset on lease; the asset is of such a special nature that no other company uses such type of asset without major modifications.
Long questions are below.
A customer was considered doubtful at the Balance Sheet date. A provision for such customer was made @ 50%. After the Balance Sheet date, customer was declared as insolvent based on his financial position on year end.
Required:
- Identify the type of event
According to IAS, which items shall be disclosed on the face of the Income Statement as allocations to profit or loss for the period?
What are the major classifications of expenses in which the expenses have been distributed for presentation in Income Statement?
Suppose a company has a:
- Partially completed inventory item at the year end.
- Expected selling price of the item when completed is Rs. 2,600.
- A further cost of Rs. 500 is required to complete the item
- Expected selling cost of the item is Rs. 100
Required:
- What will be the carrying value of the inventory item if the cost incurred to date is Rs. 1,500?
List down the items that should be included in Cash flows from operating activities?
If:
- Depreciation expenses Rs. 1,000
- Purchases of materials Rs. 2,000
- Amortization costs Rs. 3,000
- Employees benefits costs Rs. 4,000
- Transport costs Rs. 5,000
- Cost of sales Rs. 6,000
- Distribution costs Rs. 7,000
Calculate the total amount of expenses with respect to their nature.
If:
ABC Limited acquired “Material X” in place of “Material Y” from XYZ Limited.
| Particulars | Rs. |
| Fair value of “Material X” | 50,000 |
| Fair value of “Material Y” | 60,000 |
| Cash paid by XYZ Limited | 10,000 |
Then:
Pass Journal Entries in the books of both the parties.
Identify the type of lease. Also give reason: a) A ltd. Co. acquired the asset on lease; fair value of the asset is Rs. 50,000. The company has no intention to buy it at the end of lease term. The present value of minimum lease payments is Rs. 46,000
b) B ltd. Co. acquired the asset on lease; the asset is of such a special nature that no other company uses such type of asset without major modifications.
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