INTERMEDIATE COURSE: GROUP - 1 PAPER – 1 : ADVANCED ACCOUNTING
Mr. Deepak Goel, a Chartered Accountant with 10 years of experience was earlier working with a big Indian practicing firm. Recently he left his job and started his own consultancy firm. He has received certain AS based projects wherein his opinion and guidance on applicability of AS has been sought for on following issues:
- Narayan Ltd. requires to calculate the tax expense for each quarter, assuming that there is no difference between the estimated taxable income and the estimated accounting income:
|
₹ |
| Estimated Gross Annual Income |
33,00,000 |
| (inclusive of Estimated Capital Gains of ₹ 8,00,000) |
|
|
Estimated Income of
Quarter I
|
7,00,000 |
| Quarter II |
8,00,000 |
| Quarter III (including estimated Capital Gain of ₹ 8,00,000) |
12,00,000 |
| Quarter IV |
6,00,000 |
Tax Rates:
| On Capital Gains |
12% |
| On Other Income: First ₹ 5,00,000 |
30% |
| Balance Income· |
40% |
- SEAS Ltd. has a subsidiary, ADI Ltd., which is in the business of construction having turnover of ₹ 200 crores. SEAS Ltd. and ADI Ltd. hold 9% and 23% respectively in an associate company, ASOC Ltd. Both SEAS Ltd. and ADI Ltd. prepare consolidated financial statements as per Accounting Standards notified under the Companies (Accounting Standards) Rules, 2021.
- In the financial year 20X1-20X2, X Ltd. incurred the following expenditure in acquiring property.
The expenditure incurred on various dates is given below:
On 1st April, 20X1 - Purchase cost of the property ₹ 1,80,00,000.
On 1st April, 20X1 – Non-refundable transfer taxes ₹ 20,00,000 (not included in the purchase cost).
On 2nd April, 20X1- Legal cost related to property acquisition ₹ 5,00,000.
On 6th April, 20X1- Advertisement campaign to attract tenants ₹ 3,00,000.
On 8th April, 20X1 - Opening ceremony function for starting business ₹ 1,50,000.
Throughout 20X1-20X2, incurred ₹ 1,00,000 towards day-to-day repair maintenance and other administrative expenses.
