Solved PYQs 5-7 of 360: IAS (CSE) Mains Commerce Accountancy | PYQ 2024

Ltd. Furnishes the following Balance Sheet as at 31^st March, 2024:

The company passed a resolution to buy back 20% of its equity capital@Rs 15 per share. For this purpose, it sold its investment of Rs 60 lakhs for ₹50 lakhs.

You are required to pass necessary journal entries in the books of A Ltd. And prepare Balance Sheet after buyback of shares.

During the month of May 2024, total 2000 units were introduced into Process-I. The normal loss was estimated at 5% on input. At the end of the month, 1400 units had been produced and transferred to the next process, 460 units were incomplete and 140 units had been scrapped. It was estimated that incomplete units had reached a stage in production as follows:

1. Material 75% completed

2. Labour 50% completed

3. Overheads 50% completed

The cost of 2000 units introduced was ₹5,800. Direct material introduced during the process amounted to ₹1,440. Production Overheads incurred were ₹1,670 and Direct Labour was ₹3,340. Each unit scrapped was realized at ₹1 each unit. The units scrapped have passed through the process, so were 100% completed as regards material, labour and overheads.

You are requested to prepare the following statements:

(i) Statement of Equivalent Production;

(ii) Statement of Cost and Evaluation;

(iii) Process-I Account; and

(iv) Abnormal Loss Account.

Mrs. Y (59 years) receives ₹790000 as basic pay and as ₹118000 bonus during the previous year 2023 — 24. Besides, she gets ₹52,000 as Dearness Allowance (forming part of salary) and 4 percent commission on turnover achieved by her. During the year, turnover achieved by her

is ₹90 lakh. The employer contributes ₹224240 towards provident fund. The amount of interest credited to provident fund on 30 November, 2023 at the rate of 10 percent comes to ₹40,000. She also gets child education allowance of ₹450 per month (for daughter) and ₹80 month (for son). Cost of education is approximately Rs 180000 for two children (Out of which Rs 110000 is tuition fees paid by Mrs. Y).

The employer company provides 1800 cc car to her for official and private purpose and incurs the entire expenditure on running and maintenance of the car. Personal use Of the car as per book is

approximately 65 percent. With effect from 1 November, 2023, she gets a driver to whom the company pays ₹6,000 month. Her income from house property is Rs 165000. During the year she makes the following contributions and investments:

(i) Own contribution towards provident fund ₹336360.

(ii) Insurance premium on own life ₹9,000(sum assured Rs 80000 policy taken in December 2018).

(iii) Contribution towards NSC VIII issue Rs 11,000.

(iv) Insurance premium on the life Of major son (not dependent on her) ₹4,000(sum assured Rs 100000)

(v) Insurance premium on the life of her mother (age 80 years) dependent on her ₹2,000.

(vi) Repayment of loan taken to purchase house property ₹21,000.

Determine the taxable income Of Mrs. Y for the assessment year 2024 — 25 under regular tax regime. Also calculate Gross Qualifying amount under Section 80 C.