1. JOSEPH’S COLLEGE OF COMMERCE (Autonomous)

END SEMESTER EXAMINATION –MARCH/APRIL 2015

M.Com –IV Semester

P113401: FINANCIAL REPORTING AND OPERATIONAL COMPLIANCE

Duration: 3  Hours                                                                                           Max. Marks:100

 

SECTION – A

1. Answer any SEVEN questions. Each question carries 5 marks.             (7×5=35)

                                                                                     

1. Name the Accounting Standard for the following

 

a.   Exchange Difference :
b.  Amortisation :
c.   Borrowing Cost:
d.  Investments :
e.   Related Parties:

 

2. Briefly explain the applicability and disclosure requirements of AS-2 ‘Valuation of Inventories’

 

3. List the contents of Annual Report and briefly explain the matters stated in Directors’ Report.

 

4. Explain Input Tax, Output Tax and Net Tax. What is the due date for filing monthly VAT returns for a dealer claiming input tax credit against output tax?

 

5. Briefly explain the importance of IEC and Objectives of EXIM policy.

 

6. Mention any five features of LLP.

 

7. Distinguish between LLP and Company.

 

8. List the forms to be filed for obtaining Name Approval and Company Incorporation under Companies Act, 2013.

 

9. Briefly explain the concept of Negative List and Reverse Charge Mechanism under Service Tax Law.

 

 

 

 

 

 

10. Write in a sentence about the following:

 

a. FCTRS
b.  DIN
c. Maximum Retail Price
d. AS -22
e. Designated Partner

 

Section – B

 

1. Answer any THREE questions. Each carries 15 marks. (3×15=45)

 

11. Who are the users of financial statements? Explain their information needs.

 

12. Explain the following accounting standards in not more than five sentences.
    1. Accounting Standard (AS) 4 – Contingencies and Events Occurring After the Balance Sheet Date
    2. Accounting Standard (AS) 26 – Intangible Assets
    3. Accounting Standard (AS) 28 – Impairment of Assets

 

13. Explain briefly the modes of valuation of goods under Central Excise Act, 1944.

 

14. Calculate the income tax and deferred tax from the following data:

 

1. Profit of the company before tax –  30,65,740/-
2. Depreciation as per Companies Act, 1956 – Rs.10,09,345/-

iii.   Depreciation as per Income Tax Act, 1961  – 9,43,435/-

1. Rate of income tax – 30%

 

1. Explain briefly the need for making provision for Deferred Tax in the financial statements.

 

1. What is Declared Service under Service Tax Law? Give 3 examples of Declared Service.

 

15. Best Exports Pvt., Ltd., an Indian company are exporters of software development services and during the financial year has invoiced the following amounts in various currencies. Arrive at the Net Foreign Exchange Gain/Loss from the details provided below and also specify the following :

 

• where will the company reflect the exchange gain or loss in the financial statements.
• Specify what will be the impact on Networth on account of exchange gain or loss.
• Name the accounting standard which you are applying in arriving at the exchange gain or loss.

 

Sl.No.	Invoice No.	Date of Invoice	Amount	Exchange rate on the date of Invoice	Exchange rate on the date of realisation
1.	2001	12/08/2013	USD 15,000	63.50	62.25
2.	2015	15/01/2014	GBP 25,000	90.26	95.00
3.	2042	10/02/2014	SGD 10,000	55.30	52.21

 

1. Briefly explain the applicability of Employees’ Provident Funds Act, 1952 and also provide the contribution to be made by employer and employee under the act.

 

1. Explain the disclosure requirement under Accounting Standard (AS) 20 – Earnings Per Share

 

Section – C

 

• Answer the following compulsory

                                                                                                                                   

16. You are required to prepare financial statements under Revised Schedule VI (including Notes forming part of accounts) from the following trial balance of RBN Trading Ltd. for the year ended 31st March, 2014.

 

RBN Trading Ltd.

Trial Balance as at 31st March, 2014

Particulars	Debit (Rs.)	Credit (Rs.)
Equity Share Capital (Shares of Rs.10 each) Authorised Capital – Rs.5,00,000/-		1,00,000
Cash Credit Loan		1,76,000
Trade Payables		2,45,900
Sales of Goods		14,55,000
Sale of Services		32,250
Opening Stock of Goods	78,000
Profit & Loss appropriation		3,25,850
Furniture & Fixtures	25,000
Plant and Machinery	1,55,000
Advertisement	5,000
Purchase of Goods	16,30,000
Rentals	12,500
Cash	29,700
Bank Balance	26,500
Interest on Cash Credit	15,700
Salaries and Wages	1,90,000
Debtors – Trade Receivable	1,28,700
Direct Expenses	10,300
Consumables	9,200
Travelling and Conveyance	19,400
Total	23,35,000	23,35,000

 

Additional Information :

– Closing stock of goods as on 31st March, 2014 – Rs. 6,82,500

– Rate of Depreciation

Particulars	As per Companies Act	As per Income Tax Act
Furniture & Fixtures	15%	10%
Plant and Machinery	25%	15%

• 15% of debtors are bad, 5 % of debtors are doubtful and 10% are receivable after 2 years from the end of 31^st March, 2014.
• Rate of Income tax – 30%
• 20% of Trade Payables are payable after one year from the end of 31^st March 2014.

 

Also provide relevant Accounting Policies in Notes forming part of accounts.

 

 

 

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