1. What are the three fundamental accounting assumptions recognised by Accounting Standard Explain with the help of suitable examples.

2. Calculate inventory value at the end of the period using LIFO and FIFO methods on the basis of following data:

Date Purchase Date Sales
01-03-15 400 units at RS 30 07-03-15 130 units at RS 35
10-03-15 200 units at RS 40 16-03-15 350 units at RS 45
14-03-15 900 units at RS 50 26-03-15 600 units at RS 60

Assume beginning inventory was zero.

3. ABC Co. acquired an asset on 01st April 2011 at a cost of Rs 2,50,000, which has a salvage value of Rs 30,000. The useful life of the asset is 4 years. Give the amount of depreciation and book value of the asset for the years 2011-12, 2012-13, 2013-14 and 2014-15. Use:

SLM method

Sum-of-the-years'-digits method and

Double declining balance depreciation method.

4. Rajdeep Enterprises has furnished its financial statement as under: Amt. in Rs

Rs 2015 Rs 2014
Assets:
Cash 1,50,000 1,00,000
Accounts Receivable 2,50,000 2,00,000
Inventory 7,40,000 8,00,000
Fixed Assets 10,30,000 6,50,000
Liabilities:
Accounts Payable 4,70,000 4,50,000
Dividends Payable 10,000 15,000
Mortgage 5,35,000 5,85,000
Loan 3,05,000 0
Common Stock 5,00,000 4,00,000
Retained Earning 3,50,000 3,00,000

Calculate the following:

The cash flow from operations using indirect
method.

Cash Flow from investing

Cash Flow from financing

Total Cash Flow

5. Compute Diluted Earnings Per Share:

Net profit for the current year 1,00,00,000
No. of equity shares outstanding 50,00,000
Basic earnings per share 2
No. of 12% convertible debentures of 100 each 1,00,000
Each debenture is convertible into 10 equity shares
Interest expense for the current year 12,00,000
Tax relating to interest expense 3,60,000

What is a lease?

Who are the parties to a lease?

What are the types of lease?

7. From the following information, prepare a summarised Balance Sheet as at 31st March, 2015.

Working Capital Rs 2,40,000
Bank overdraft Rs 40,000
Fixed Assets to Proprietary ratio 0.75
Reserves and Surplus Rs 1,60,000
Current ratio 2.5
Liquid ratio 1.5

8. "The most relevant concept of income in this broad social responsibility concept of the enterprise is the value added concept." Elucidate the value added statement reporting to many interested group.

9. The Capital Structure of Define Ltd. is as under:

• 80,00,000, Equity Shares of Rs 10 each Rs 800 lakhs.

• 1,00,000, 12% Preference Shares of Rs 250 each Rs 250 lakhs.

• 1,00,000, 10% Debentures of Rs 500 each Rs 500 lakhs.

• Terms Loan from Bank 10% Rs 450 lakhs. The Company's Statement of Profit and Loss for the year showed PAT of Rs 100 lakhs, after appropriating Equity Dividend 20%.

The Company is in the 40% tax bracket. Treasury Bonds carry 6.5% interest and beta factor for the Company may be taken as 1.5. The long run market rate of return may be taken as 16.5%. Calculate Economic Value Added.