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    Test 10 SS

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    amnagul770
    Test solutions for CA students.

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    Test 10 SS

    Uploaded by

    amnagul770
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    Test solutions for CA students.

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Test solutions for CA students.

    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    0 views3 pages

    Test 10 SS

    Uploaded by

    amnagul770
    Test solutions for CA students.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    FINANCIAL ACCOUNTING AND REPORTING I

    Test-11 Solution

    ANS 1
    This is restricted contribution for repayment of debt. However, since the loan relates neither to
    expenses of future periods nor to capital assets, the contribution shall be recognized as revenue in the
    current period.

    ANS 2
    Statement of income and expenditure for the year ended 30 June 2015
    Income Rupees
    Entrance fee [63,000 + 3,000] 66,000
    Donations 38,000
    Investment income (interest) [16,000 – 11,000 last year] 5,000
    Subscription W4 194,000
    Gain on furniture exchange [6,700 – 6,000] 700
    303,700
    Expenditure
    Travelling expenses 1,500
    Printing and stationery 1,000
    General charges 2,500
    Periodicals 500
    Rent W1 25,000
    Salaries W2 50,000
    Loss on furniture disposal [500 – 2,880] 2,380
    Depreciation on furniture W3 7,820
    Depreciation on equipment [20,000 x 15%] 3,000
    (93,700)
    Surplus 210,000
    (5)
    Statement of financial position as at 30 June 2015
    Non-current assets Rupees
    Furniture W3 30,000
    Sports equipment [20,000 – 3,000 + 12,000] 29,000
    Investments [100,000 + 200,000] 300,000
    359,000
    Current assets
    Subscription fee receivable 8,000
    Entrance fee receivable 3,000
    Bank 30,500
    41,500
    400,500

    General fund
    Opening balance 172,500
    Surplus 210,000
    382,500

    Non-current liabilities: Deferred contribution 12,000

    Current liabilities
    Salaries payable 4,000
    Rent payable 2,000
    6,000
    400,500
    (5)
    W#1
    Rent payable
    Rupees Rupees
    Bank 34,000 b/d 11,000
    c/d 2,000 I&E (balancing) 25,000
    36,000 36,000
    (1.5)
    W#2
    Salaries
    Rupees Rupees
    Bank 63,500 b/d 17,500
    c/d 4,000 I&E (balancing) 50,000
    67,500 67,500
    (1)
    W#3
    Furniture (NBV)
    Rupees Rupees
    b/d 40,000 Disposal 2,880*
    Exchange 6,700 Disposal (exchange) 6,000
    Depreciation 7,820
    c/d 30,000
    46,700 46,700

    *Rs. 4,000 x 80% x 90% = Rs. 2,880


    (1.5)
    NBV Depreciation
    Rupees Rupees
    Disposal (exchange) 6,000 x 20% x 0/12 -
    Disposal (other) 3,200 x 20% x 6/12 320
    Other remaining 30,800 x 20% x 12/12 6,160
    Total opening assets 40,000
    Additions (exchange) 6,700 x 20% x 12/12 1,340
    7,820
    (2.5)
    W#4
    Subscription
    Rupees Rupees
    b/d 15,000 Bank 201,000
    I&E 194,000 c/d 8,000
    209,000 209,000
    (1.5)

    ANS 3
    (a)
    Increase in asset (cash) Rs. 50,000 but no decrease in asset (RA was already written off) resulting in Net
    increase in equity is Income.

    (b)
    Increase in asset (Right to receive) Rs. 60,000 and no increase in liability (services already provided) and
    resulting net increase in equity Rs. 60,000, recognized as Income.

    (c)
    Increase in asset (Cash) Rs.30,000 and also an increase in liability (obligation to deliver) Rs. 30,000 and
    there is no income as no increase in Liability.
    (2 marks for each Discussion)
    ANS 4
    MCQ’s

    (i) C
    (ii) B
    (iii) B
    (1 Mark for each MCQ)

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