GOKHALE EDUCATION SOCIETY’S
BYK (SINNAR) COLLEGE OF COMMERCE
T.Y. [Link] [SEM V]
ASSIGNMENT 1
SUBJECT: Advanced Accounting I
Subject Code: 361
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Q.1] What is AS -3? Explain the following terms with reference to AS -3
a) Operating Activities
b) Investing Activities
c) Financial Activities
Q.2] Define the following terms as per AS-12
a› Government
b› Government grants. Explain in brief the types of government grant.
P.T.O.
Q.3 The following is the Balance Sheet of Ayudeeps Ltd. Chennai as on 3lst
March, 2025
Balance Sheet as on 31st March, 2025
Liabilities ₹ Assets ₹
Share Capital Goodwill 20,000
• 25,000 Preference 2,50,000 Leasehold Premises 1,07,000
Shares of ₹ 10 each Plant and Machinery 60,000
• 25,000 Equity 2,50,000 Patent 1,73,900
Shares of ₹ 10 each Preliminary Expenses 2,000
Sundry Creditors 40,000 Stock 34,000
Bank Overdraft 36,000 Sundry Debtors 56,000
Cash 100
Profit and Loss 1,23,000
Total 5,76,000 5,76,000
The company proved unsuccessful and resolutions were passed to carry out the
following scheme of reduction of capital -
a) Preference Shares be reduced to fully paid shares of ₹ 5 each.
b) Equity Shares be reduced to fully paid shares of ₹ 2.50 each
c) Sundry Creditors total claims be reduced by 20%
d) Goodwill Account, Patents, Preliminary Expenses, and Profit and Loss
Account to be completely written off.
e) Leasehold Premises to be written off by ₹ 27,000.
f) Stock to be written-off by ₹ 14,000.
g) ₹ 6000 is to be reserved for doubtful debts.
h) Plant and Machinery to be written off by 20%
Pass the necessary journal entries, prepare the Capital Reduction Account and the
revised Balance Sheet as on 31st March 2025.
