Badrinath held various amounts of 10% Government of India bonds throughout the year and purchased or sold bonds on a few occasions, with the final market price being Rs. 97. The question asks to prepare the 10% Government of India bonds ledger for Badrinath for the year ended March 31, 2020 using the bond transactions provided.
Badrinath held various amounts of 10% Government of India bonds throughout the year and purchased or sold bonds on a few occasions, with the final market price being Rs. 97. The question asks to prepare the 10% Government of India bonds ledger for Badrinath for the year ended March 31, 2020 using the bond transactions provided.
Badrinath held various amounts of 10% Government of India bonds throughout the year and purchased or sold bonds on a few occasions, with the final market price being Rs. 97. The question asks to prepare the 10% Government of India bonds ledger for Badrinath for the year ended March 31, 2020 using the bond transactions provided.
Badrinath held various amounts of 10% Government of India bonds throughout the year and purchased or sold bonds on a few occasions, with the final market price being Rs. 97. The question asks to prepare the 10% Government of India bonds ledger for Badrinath for the year ended March 31, 2020 using the bond transactions provided.
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Question 1. solution 1.
Badrinath held on 1st April, 2019, Rs. 100,000 of 10% Government of India Bonds (face value Rs.100) at Rs. 94,000. Interest is received on 30 th June and 31st December each year.
On 30th September, 2019, the company purchased a further 500 bonds at Rs.97.50 cum interest paying brokerage @2%. On 31st October, 2018, 450 bonds were sold at Rs. 94 ex interest paying brokerage @ 2%. On 28th February, 2020, 300 bonds were sold at 98 cum interest paying brokerage @2%. Market price of the 10% Government of India Bonds was Rs. 97.
Prepare 10% Government of India Bonds in the books of Badrinath for the year ended 31st March, 2020. Question 2. The under mentioned balances form of the All People’s Life Insurance Co. Ltd., as on 31 st March,2012:- Particulars
Life Assurance Fund at the beginning of the year
Claims by death Claims by maturity Premiums Expenses of Management Salaries Commission Interests, Dividends, Rents Provision for tax Surrenders Annuities Interim Bonus Bonus paid in cash Claims admitted but not paid at the end of the year Annuities due but not paid Equity Share Capital Government Securities Sundry Fixed Assets
Prepare Revenue Account after taking into account the following:-
(a) Claims (by death) covered under reinsurance ceded at the end of the year Rs.10,000 thousand (b) Further claims (by death) intimated Rs. 8,000 thousand at the end of the year. (c) Salaries payable Rs. 140 thousand. (d) Premiums outstanding Rs. 7,400 thousand. solution 2.
Amount Rs’000 1,470,562 76,980 56,420 210,572 10,490 10,000 37,253 52,461 3,060 21,860 29,420 2,430 11,950 10,034 2,380 1,400,000 2,490,890 419,110 Question 3. Following is the Trial balance of Kalyan Bank Ltd as on 31 st March, 2020
Debit (Rs.) Issued and Subscribed Share Capital(Equity shares of Rs. 100 each) Investment in Government of India Securities 730,000 State Government Bonds 120,500 Borrowings from Reserve Bank of India Bank Premises 165,000 Money at call and short notice with other institutions in India 175,000 Commission and brokerage Savings Account Reserve Fund(01-04-2019) P&L A/c(01-04-2019) Interest & Discount Loans, Cash Credits and Overdrafts 950,000 Bills discounted 1,050,000 Interest on deposits and borrowings 121,250 Current Account (from Bank) Profit on sale of Gold Interim Dividend paid 18,750 Audit fees 3,000 Investment in Subsidiary in India 42,500 Provident Fund Contribution 37,000 Loss on sale of Investment 31,500 Income tax paid 25,000 Bills for collection 4,500 Salaries 201,750 Cash in hand 175,000 Balances with Other Banks in Current Account in India 432,000 Accumulated depreciation on bank premises(01-04-2019) 4,282,750
Additional information is as below:
(a) Out of total Advances 70% are secured while Rs. 25,000 is guaranteed by the directors.
(b) Bank Premises include Premises worth Rs. 25,000 purchased on 1 st September, 2019. Provide depreciation @ 15%p.a. as per written down value method. (c) The bills discounted shall mature on 20 th May,2019 (including 3 days grace) and rate of discount is 10% p.a. (d) Provision for taxation should be 35% of net profit.
You are required to prepare Profit and Loss Account for the year ended 31st March, 2020 and Balance Sheet as at that date. Als solution 3.
Credit (Rs.) 375,000
550,000
123,500 887,500 200,000 112,500 425,000
1,500,000 89,750
4,500
15,000 4,282,750
0 and Balance Sheet as at that date. Also prepare schedules forming part of final accounts. Question 4. The following figures have been extracted from the books of HariOm General Insurance Company Ltd. in respect of their Fire Business for 2019-20.
Particulars Direct Re insurance
Business I. Premium Received 8,700,000 1,240,000 Receivable – opening balance 496,000 54,000 Receivable – closing balance 672,000 68,000 Paid 720,000 Payable – opening balance 32,000 Payable – Closing balance 62,000 II. Claims Paid 4,500,000 400,000 Payable – opening balance 332,000 73,000 Payable – closing balance 416,000 93,000 Received 420,000 Receivable opening balance 32,000 Receivable closing balance 46,000 III.Commission Paid 640,000 on Reinsurance accepted 20% on Reinsurance ceded 21%
Prepare Revenue Account for the year ending 31st March, 2020 after taking into account the following further information:
IV. Other Expenses
Management Expenses: Rs. 446,000 Legal expenses: Rs 2,86,000 (inclusive of Rs. 80,000 in connection with settlement of claims) Salaries: Rs. 678,000
V. Income Interest, Dividend and Rent (Gross): Rs. 186,000 (TDS 19,000)
VI. Balance of Fund on 1stApril, 2019 was 29, 70,000 including additional Reserve of 2, 70,000. Additional reserve has to be maintained at 5% of the net premium of the year. solution 4.
