Financial Reporting And Operational Compliance

St. Joseph’s College of Commerce (Autonomous)

End Semester Examinations –  April 2014

M.Com – IV Semester

FINANCIAL REPORTING AND OPERATIONAL COMPLIANCE

 

Time: 3 Hrs                                                                                                         Max. Marks: 100

Section – A

 

 

1. Answer any 7 out of 10 questions. Each question carries 5 marks. (7×5=35)

 

1.  Match the following & write a brief note on AS-18.

 

Accounting Standard No.	Particulars
a.   Accounting Standard (AS) 6	Revenue Recognition
b.   Accounting Standard (AS) 1	Depreciation Accounting
c.   Accounting Standard (AS) 18	Disclosure of Accounting Policies
d.  Accounting Standard (AS) 26	Related Party Disclosures
e.Accounting Standard (AS) 9	Intangible Assets

 

2. Name the Fundamental Accounting Assumptions and briefly explain.

 

3. List the contents of Annual Report and briefly explain.

 

4. When does a dealer required to register under Karnataka Value Added Tax Act, 2003? What is the due date for filing monthly VAT returns for a dealer claiming input tax credit against output tax?

 

5. Match the following & write a brief note on Negative list.

 

Sl.No	Column – A	Column – B
1	Form 100	Tax on Profession, Trades, Callings and Employment
2	Negative List	Monthly VAT Return
3	Maximum Retail Price	Service Tax
4	Profession Tax	Foreign Exchange Management Act, 1999
5	Foreign Direct Investment	Valuation of Excisable Goods

 

 

 

6. Match the following & write a brief note on regulatory conditions for the appointment of Statutory Auditor.

 

Sl.No	Column – A	Column – B
1	eForm 8	Appointment of Statutory Auditor
2	eForm 17	Change or in the designation of Director – Resignation, Retirement and Death
3	eForm 32	Filing of yearly Annual Return
4	eForm 23B	Satisfaction of Charge
5	eForm 20B	Charge Creation

 

 

7. Distinguish between LLP and Company.

 

8. Briefly explain the applicability of Employees’ Provident Funds Act, 1952 and Employee State Insurance Act, 1948 and also provide the contribution to be made by employer and employee under relevant acts.

 

9. Briefly explain the concept of Negative List under Service Tax Law. What is the current rate of service tax notified by Central Government?

 

10. Match the following & write a note on Deferred Tax.

 

Sl.No	Column – A	Column – B
1	Financial Charges	AS – 11
2	Deferred Tax	AS – 20
3	Foreign Exchange Fluctuation	Borrowing Cost
4	Lower of cost or net realizable value	Accounting for Taxes on Income
5	Diluted Earnings Per Share	AS – 2

 

 

Section – B

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

 

 

11. Explain the concept of capital and capital maintenance.
12. Explain the objectives of financial statements.

 

12. Explain any 7 accounting standards in not more than five sentences.

 

13. What is manufacturing under Central Excise Act, 1944. Briefly explain
14. Who are the users of financial statements and explain their information needs?

 

14. Info IT Exports Pvt., Ltd., a company in India 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.	1001	12/05/2012	USD 15,000	53.50	54.25
2.	1014	14/06/2012	GBP 25,000	71.26	73.00
3.	1036	10/03/2013	EURO 10,000	66.30	63.11

 

1. Compute Basic Earnings per Share (Basic EPS) and Diluted Earnings per Share (Diluted EPS)

 

Net profit for the current year Rs. 1,00,00,000

Equity Share Capital : 5,00,000 Equity Shares of Rs.10/- each

Share Application Money Pending Allotment – 50,000 equity shares of Rs.10/- each

 

1. In not more than 5 sentences explain the need for Foreign Currency Translation in the books of account.

 

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

 

1. Profit of the company before tax –  40,88,605
2. Depreciation as per Companies Act, 1956 – Rs.12,63,746/-

iii.   Depreciation as per Income Tax Act, 1961  – 13,46,238/-

1. Rate of income tax – 30%

 

1. Briefly explain limitation of accounting.

 

1. What is reverse charge mechanism under Service Tax Law. Briefly explain

 

 

 

Section – C

 

III)Answer the following compulsory question.

                                                                                                                                  (1 x 20= 20)     

16.You are required to prepare financial statements under Revised Schedule VI (including Notes forming part of accounts) from the following trial balance of Suhas Company Ltd. for the year ended 31st March, 2013.

 

Suhas Company Ltd.

Trial Balance as at 31st March, 2013

Particulars	Debit (Rs.)	Credit (Rs.)
Equity Share Capital (Shares of Rs.10 each) Authorised Capital – Rs.10,00,000/-		1,00,000
Term Loan		85,000
Trade Payables		18,100
Sales of Goods		4,10,900
Opening Stock of Goods	78,000
Profit & Loss appropriation		16,000
Furniture & Fixtures	50,000
Plant and Machinery	1,25,000
Advertisement	2,000
Purchase of Goods	2,31,900
Rentals	2,500
Cash	800
Bank Balance	1500
Interest on Bank Term Loan	5,500
Salaries and Wages	90,000
Debtors – Trade Receivable	28,700
Direct Expenses	2,300
Consumables	8,400
Travelling and Conveyance	3,400
Total	6,30,000	6,30,000

Additional Information :

– Closing stock of goods as on 31st March, 2013 – Rs. 82,300

 

– Rate of Depreciation

Particulars	As per Companies Act	As per Income Tax Act
Furniture & Fixtures	20%	10%
Plant and Machinery	20%	15%

• 10% of debtors are doubtful and management decided to make provision in the books.
• Rate of Income tax – 30%
• 50% of Trade Payables are payable after one year from the end of 31^st March 2013.

 

 

 

 

 

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.

 

 

 

REG NO:

1. JOSEPH’S COLLEGE OF COMMERCE (Autonomous)

end semester examination – march/april 2016

M.COM – IV SEMESTER

P113401: FINANCIAL REPORTING AND OPERATIONAL COMPLIANCE

Duration: 3 Hours                                                                                           Max. Marks: 100

 

SECTION – A

 

1. Answer any 7 of 10 questions. Each question carries 5 marks. (7X5=35)     

                                                                                                                                        

1. Name the Accounting Standard?:

 

Particulars	Accounting Standard
a.   Depreciation
b.  Impairment of Assets
c.   Borrowing Cost
d.  Investments
e.   Inventories

 

Write a note on Borrowing Cost in not more than 3 sentences

 

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

 

3. Briefly explain the applicability and disclosure requirements of AS-18 ‘Related Party Disclosures’

 

4. When does a dealer required to register under Karnataka Value Added Tax Act, 2003? What is the due date for filing monthly VAT returns for a dealer claiming input tax credit against output tax?

 

5. 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.

 

6. Match the following:

 

Sl.No	Column – A	Column – B
1	Form 100	Tax on Profession, Trades, Callings and Employment
2	Negative List	Monthly VAT Return
3	Maximum Retail Price	Service Tax
4	Profession Tax	Foreign Exchange Management Act, 1999
5	Foreign Direct Investment	Valuation of Excisable Goods

 

 

7. List the transactions to which AS -10 Fixed Assets are not applicable.

 

8. What are the steps involved in Company Incorporation under Companies Act, 2013.

 

9. In not more than 5 sentences explain the need for Foreign Currency Translation in the books of account.

 

10. What are the qualitative characteristics of Financial Statements?

 

 

SECTION – B

1. Answer any THREE questions. Each question carries 15 marks. (3X15=45)

 

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

 

12. 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?

 

1. Briefly explain the applicability of Employees’ State Insurance Act, 1948 and also provide the contribution to be made by employer and employee under the act.

 

1. Explain the significance of Form FCGPR and FCTRS under FEMA regulations.

 

13. What are the entry routes for investments in India under Foreign Exchange Management Act, 1999? Briefly Explain.

 

1. Who are the users of financial statements and briefly explain their information needs?

 

14. Briefly explain limitation of accounting.

 

1944. What is manufacturing under Central Excise Act, 1944. Briefly explain

 

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

 

15. Distinguish between LLP, Company and Partnership.

 

1. Briefly explain the meaning of ‘Partner’ and ‘Designated Partner’ in a LLP

 

 

 

SECTION – C

• Answer the following Compulsory (1×20=20)

16.                        

You are required to prepare financial statements under Revised Schedule VI (including Notes forming part of accounts) from the following trial balance of Jai Trading Ltd. for the year ended 31st March, 2016.

Jai Trading Ltd -Trial Balance as at 31st March, 2016

Particulars	Debit (Rs.)	Credit (Rs.)
Authorised Capital – Rs.2,00,000/- (Shares of Rs.10 each) Equity Share Capital (Shares of Rs.10 each)		1,00,000
Cash Credit Loan		5,26,150
Trade Payables		1,75,850
Sales of Goods		16,95,400
Sale of Services		45,800
Opening Stock of Goods	55,800
Profit & Loss appropriation		2,68,400
Furniture & Fixtures	50,000
Plant and Machinery	2,00,000
Advertisement	5,000
Purchase of Goods	15,65,000
Rentals	6,000
Cash	44,340
Bank Balance	31,200
Interest on Cash Credit	3,65,700
Salaries and Wages	2,01,200
Debtors – Trade Receivable	1,84,500
Direct Expenses	75,120
Travelling and Conveyance	27,740
Total	28,11,600	28,11,600

Additional Information :

– Closing stock of goods as on 31st March, 2016 – Rs. 7,51,500

– Rate of Depreciation

Particulars	As per Companies Act based on useful life of assets	As per Income Tax Act
Furniture & Fixtures	15%	10%
Plant and Machinery	25%	15%

• 10% of debtors are bad, 5 % of debtors are doubtful and Rs.50,000/- is outstanding from the 15^th August, 2015.
• Rate of Income tax – 30%
• 25% of Trade Payables are payable after one year from the end of 31^st March 2016.

 

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

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