Advanced Financial Accounting Solved Question Paper 2019 (November)
Commerce (Speciality)
Course: 301: Advance Financial Accounting)
Full Marks: 80
Pass Marks: 32
The figures in the margin indicate full marks for the questions.
1. (a) Fill in the blanks: 1x4=4
1) As per the Finance Act, 2005, banks are
allowed to issue preference
shares.
2) Life insurance business is carried on by
Life Insurance Corporation of India since 1956.
3) The general insurance business was taken
over by the Central Government with effect from 1972
4) Purchase
price is not the real price of investment.
(b) State whether the following statements are True or
False: 1x4=4
1) Banks in India are under the general
supervision of the Central Government. False,
RBI
2) Life insurance is more appropriate to be
called life assurance. True
3) Commission on re-insurance ceded is an
income. True
4) Only FIFO method is used to calculate
cost of closing balance of investment.
False
2.
Write short notes on any four of the following:
4x4=16
a) Slip
System of Posting.
Ans: The bank has to ensure that customers (depositors) ledger
accounts are up-to-date so that when a cheque is presented to the bank for
payment, the bank can immediately decide whether to honour or dishonour the
cheque. Thus transactions in the bank are immediately recorded.
For this purpose, slip system of ledger posting is
adopted. Under this system entry are made in the (personal) accounts of
customers in the ledger directly from various slips rather than from subsidiary
books or journals and then a Day Book is written up. Subsequently, entries in
the accounts of the customers are tallied with the Day Book. In this way the
posting in the ledger accounts and writing of the day-book can be carried out
simultaneously without any loss of time. A slip is also called voucher. In
general, the types of slips used in bank book-keeping are: pay-in-slips,
cheques or withdrawals forms. In these
slips are filled by the customers there is much saving of time and labour of
the employees of the bank.
b) Insurance
Regulatory and Development Authority.
c) Life
Assurance Fund.
Ans: Life Fund, also known as Life Assurance Fund is concerned with
Life Insurance (Assurance) business. It is an item that appears on the
liability side of the company's Balance Sheet. For insurance business, claim is
an expenditure while premium is an income. As we all know, the difference
between income (premium received) and expenditure (claims paid) should be the
profit. In case of life insurance business this approach would pose a problem.
The income premium, is collected periodically
(monthly, quarterly, annually) on policies that mature over a long period of
time. The expenditure claim, has to be paid either on the maturity of the
policy or on the death of the policy holder. Claim as an expenditure is
definite while premium as an income is uncertain. The expected amount of
premium on a policy will be received only if the policy holder is alive up to
the maturity of the policy.
Therefore life insurance companies treat the difference
between income and expenditure as a surplus and not profits.
This surplus from the revenue account is transferred to
the Life Fund, where it gets accumulated. Life fund is shown in
schedule – 6 of the balance sheet under the head “Reserves and Surplus”.
Net Liability is
useful to compute the profits of a life insurance business. It is the estimated
liability on all the policies that are in force. The Net Liability is valued by
an actuary. Hence it is called Net Liability as per actuarial valuation.
The difference between Life Fund and Net
Liability is the profits. Once in every two/three year’s life
insurance companies calculate profits and distribute it among policy holders
and shareholders in the ratio of 19:1 or in any other suitable ratio.
d) Marine
Insurance.
Ans: Marine
insurance is a type of general insurance which covers the loss or damage of
ships, cargo, terminals, and any transport or cargo by which property is
transferred, acquired, or held between the points of origin and final
destination. This insurance mainly covers the risk which are associated with
the goods transported through water mode of transported. Marine insurance plays
an important role in domestic trade as well as in international trade. Most
contracts of sale require that the goods must be covered, either by the seller
or the buyer, against loss or damage.
e) Cum-interest
and Ex-Interest Quotations.
Ans: The term ‘Cum’ and ‘Ex’ are Latin words. ‘Cum’ means with and
‘Ex’ means without. The term ‘Cum-interest’ and ‘Ex-interest’ relate to
debentures and bonds. Cum-interest can be expanded as inclusive of interest and
Ex-interest can be expanded as exclusive of interest. Cum
interest is the amount of interest accrued in the duration between the last
interest date and the settlement date or transaction date. The cum-interest
price includes not only the cost but also includes the interest accrued upto
the date of purchase, and when interest becomes due it would be the right of
the buyer to claim interest. Conversely, the quotation, Ex-interest, covers
only the cost of the debentures and the buyer is liable to pay additional
amount as interest accrued upto the date of purchase of debentures.
3.
(a) Discuss the following items which are related to a banking
company: 3½ x 4=14
1) Rebate
on Bills Discounted.
Ans: Discounting of bills means making the payment of the bill before the
maturity date of the bill. While making payment of the bill, the bank deducts
discount for the unexpired period for the amount of the bill discounted. Such
discount is called rebate on bills discounted. It is treated as interest
received in advance. In profit and loss account, closing balance of rebate on
bills discounted is deducted and opening balance of rebate on bills discounted
is added with the interest and discount for the year. Closing balance of rebate
on bills discounted is shown as liability in balance sheet under the heading
‘other liabilities’. At the commencement of next year, a reverse entry is
passed for the unexpired discount of the previous year expiring this year and
treated as income.
Rebate on bills discounted is calculated with the help
of following formula = (Total annual discount x no. of days after the close of
the year)/365.
Accounting
treatment of Rebate on Bill Discounted
a) At the end of current accounting period:
Discount on Bills A/c Dr.
To Rebate on Bills discounted A/c
b) At the beginning of next accounting period:
Rebate on Bills discounted A/c Dr.
To Discount on Bills A/c
c) Transferring balance of interest and discount
to Profit and loss Account:
Discount on Bills A/c Dr.
To Profit and Loss A/c
2) Non-performing
Assets.
Ans: Non-performing Assets (NPA): NPA
indicates Non-Performing asset, it means assets of a bank which ceases to
generate income for the bank. Non-performing assets means a credit facility in
respect of which interest/or principal repayment installment is in arrears for
more than 90 days. A non-performing asset (NPA) shall be a loan or an advance
where;
a)
Interest
and/ or installment of principal remain overdue for a period of more than 90
days in respect of a term loan,
b)
The
account remains ‘out of order’ for a period of more than 90 days, in respect of
an Overdraft/Cash Credit (OD/CC),
c)
The
bill remains overdue for a period of more than 90 days in the case of bills
purchased and discounted,
d)
Interest
and/or installment of principal remains overdue for two harvest seasons but for
a period not exceeding two half years in the case of an advance granted for
agricultural purposes, and
e)
Any
amount to be received remains overdue for a period of more than 90 days in
respect of other accounts.
3) Statutory
Reserve.
Ans: Ans: According to Sec 17 of the Banking Regulation Act, 1949 it is
obligatory for a banking company operating in India to create a reserve fund
and transfer at least 20% of its annual profits as disclosed by its profit and
loss account prepared under Sec. 29 and before any appropriations. But this
provision is not applicable to banking companies whose reserves together with
the amount in the share premium account is not less than the paid-up capital of
the banking company.
Where a banking company appropriates any sum or sums from the
reserve fund or the share premium account, it shall, within twenty-one days
from the date of such appropriation, report the fact to the Reserve Bank,
explaining the circumstances relating to such appropriation.
4) Statutory
Liquidity Ratio.
Ans: Statutory liquidity ratio (SLR): Statutory liquidity ratio refers
to the amount that the commercial banks require to maintain in the form of gold
or government approved securities before providing credit to the customers.
Statutory Liquidity Ratio is determined and maintained by the Reserve
Bank of India in order to control the expansion of bank credit. It is
determined as % of total demand and time liabilities. Time Liabilities refer to
the liabilities, which the commercial banks are liable to pay to the customers
after a certain period mutually agreed upon and demand liabilities are such
deposits of the customers which are payable on demand. The maximum limit of SLR
is 40% and minimum limit of SLR is 15% In India. Present SLR is 18%.
If any Indian
bank fails to maintain the required level of Statutory Liquidity Ratio, then it
becomes liable to pay penalty to Reserve Bank of India. The defaulter bank pays
penal interest at the rate of 3% per annum above the Bank Rate, on the
shortfall amount for that particular day. But, according to the circular,
released by the Department of Banking Operations and Development, Reserve Bank
of India; if the defaulter bank continues to default on the next working day,
then the rate of penal interest can be increased to 5% per annum above the Bank
Rate.
The main objectives for maintaining the SLR
ratio are the following:
1) To
control the expansion of bank credit. By changing the level of SLR, the Reserve
Bank of India can increase or decrease bank credit expansion.
2) To
ensure the solvency of commercial banks.
3) To
compel the commercial banks to invest in government securities like government
bonds.
Or
(b)
Following figures are extracted from the books of J. K. Bank Ltd. as on
31.03.2019:
|
Particulars |
Rs. (‘000) |
|
Interest
and discount received Interest
paid on deposits Share
Capital Commission
and exchange Rent
received Profit
on sale of Investment Salaries
paid to employees Rent
paid Stationery Postal
expenses Audit
fees Depreciation
on Bank’s properties Director’s
fees Preliminary
expenses |
4,060 2,404 1,000 180 60 190 210 108 48 40 8 25 34 10 |
Further
Information:
1)
A customer to whom a sum of Rs. 5,
00,000 has been advanced has become insolvent and 40% recovered from his
estate.
2)
Provision for bad and doubtful debts necessary
Rs. 1, 00,000.
3)
Rebate on bills discounted as on
31.03.2018 Rs. 10,000.
1)
Rebate on bills discounted as on
31.03.2019 Rs. 15,000.
4)
Provide Rs. 7, 00,000 for income tax.
5)
The directors desire to declare 10%
dividend.
Prepare Profit & Loss A/c of J. K. Bank Ltd. in accordance with law. 14
Also Read: Advanced Financial Accounting Past Exam Question Papers
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4. (a) What is life insurance? What
are the statutory and subsidiary books maintained by a Life Insurance Company?
2+6+6=14
Ans: Life
Insurance is defined as a contract between the policy holder and the insurance
company, where the life insurance company pays a specific sum to the insured
individual or his family upon the maturity of the term for which the life is
insured or on the death of the insured. That is why life insurance is called a
contract of guaranteed. The life insurance sum is paid in exchange for a
specific amount of premium.
Books maintained by All Insurance Companies
Under the Insurance Act, 1938 it is obligatory on the
part of all insurance companies including the general insurance companies to
maintain the following books which may be called ‘statutory books’.
1.
The registrar of policies: This
book contains the following particulars in respect of each policy issued:
a)
The name and address of the
policyholders.
b)
The date when the policy was affected.
c)
A record of any assignment of
the policy.
2.
The registrar of claims: This
book should contain the following particulars in respect of each claim:
a)
The date of claim.
b)
The name and address of the
claimant.
c)
The date on which the claim was
discharged.
d)
In the case of a claim which is
rejected, the date of rejection and the ground for rejection.
3.
The register of licensed
insurance agents: This book should contain the following particulars in respect
of each agent:
a)
Name and address of every
insurance agent appointed.
b)
The date of appointment.
c)
The date on which appointment
ceased, if any.
In addition to the statutory books mentioned above,
insurance companies also maintain the following subsidiary books for recording
the transactions:
a)
Proposal register.
b)
New premium cash book.
c)
Renewal premium cash book.
d)
Agency and branch cash book.
e)
Petty cash book.
f)
Claims cash book.
g)
General cash book.
h)
Agency credit journal.
i)
Agency debit journal.
j)
Lapsed and cancelled policies
book.
k)
Chief journal.
l)
Commission book.
m)
Agency ledger.
n)
Policy loan ledger.
o)
General loan ledger.
p)
Investment ledger.
Or
(b)
Best Life Insurance Co. Ltd. had a paid-up capital of Rs. 10, 00,000 divided into
1, 00,000 shares of Rs. 10 each. Its net liability on all contracts in force as
on 31st March, 2019 was Rs. 96, 00,000 and on 31st March,
2018, this liability was Rs. 84, 00,000. The company has paid an interim bonus
of Rs. 2,60,000 and 20% of the surplus is to be allocated to shareholders, 20%
to reserves and balance being carried forward. Following figures are extracted
from the books of the company for the year ended 31st March,
2019:
|
Particulars |
Rs. |
|
Premium
less re-insurance premium Interest,
dividend and rent Fees Income
tax Management
expenses Annuities
paid Commission Surrenders Surplus
on revaluation of reversions Re-insurance
irrecoverable Claims
less re-insurance claims Consideration
for annuities granted |
57,20,000 28,00,000 16,000 4,40,000 7,00,000 50,000 2,20,000 3,20,000 20,000 16,000 34,00,000 1,60,000 |
Prepare
Revenue A/c of Best Life Insurance Co. Ltd. for the year ended 31st March,
2019. 14
5. (a) What do you mean by ‘Reserve
for Unexpired Risk’? How and why is it created in General Insurance? Also
distinguish between General Insurance and Life Insurance.
2+4+4+4=14
Ans:
Reserve for
unexpired risk and its significance at the time of calculating profits
Insurance Company, close their accounts on 31st
March but not all risks under different policies expire on that date. Many
policies extend into the following accounting year during which the risk
continues. Therefore, on the closing date there is an unexpired liability under
various policies which may occur during the remaining term of the policy beyond
the year and therefore, a provision for unexpired risks is made. This reserve
is based on the Net Premium income earned by the insurance company during the
year.
The effort involved in calculating unexpired portion
of premium under each policy is very time consuming. Therefore, a simple
formula to derive a percentage of premium income to be allocated to reserve for
unexpired risks is adopted.
According to the requirements of the Insurance Act, it
is sufficient if the provision is made for unexpired risks at 50 per cent for
Fire, Marine Cargo and Miscellaneous business except for Marine Hull which has
to be 100 per cent. It may be mentioned that the insurance companies are
governed by the provisions of Section 44 of the Income-tax Act, 1961. In this
regard, Rule 5 of the First Schedule to the Income-tax Rules – computation of
Profit & Loss of General Insurance Business – provides for creation of a
reserve for unexpired risks as prescribed under Rule 6E of the said Rules.
According to this Rule, the insurance companies are allowed a deduction of 50
per cent of net premium income in respect of Fire and Miscellaneous Business
and 100 per cent of the net premium income relating to Marine Insurance
business. In view of this the reserves are created at the rates allowed under
the Income-tax Act.
Additional
reserve for unexpired risk
Ø In a particular year the management may feel that the percentage of
premium recommended by the General Insurance Council is not sufficient to meet
the unexpired risks. In such a situation they may provide additional reserve.
Such additional reserve for unexpired risk will also be debited to the revenue
account.
Ø The balance will be shown in the balance sheet as in the case of
normal reserve for unexpired risk, and will be transferred to the credit of
next year’s revenue account.
Treatment of
reserves for unexpired risk: Reserve for unexpired
risk is adjusted with premium earned in schedule – 1 of the Revenue account of
a general insurance company. Difference in opening and closing balance of
reserve for unexpired risk is calculated and increase in reserves during the
year is deducted with premium earned or vice-versa. In balance sheet, reserve for unexpired risk
is shown in schedule – 14 under the head provisions.
Difference between Life
insurance and General Insurance
|
Basis of difference |
Life Insurance |
General Insurance |
|
Subject Matter |
The subject matter of
insurance is human life. |
The subject matter is any
physical property, assets, ship or cargo etc. |
|
Element |
Life Insurance has the
elements of protection and investment or both. |
General insurance has only
the element of protection and not the element of investment. |
|
Insurable Interest |
Insurable Interest must be
present at the time of affecting the policy. |
Insurable interest on the
subject matter must be present both at the time of effecting policy as well
as when the claim falls due. |
|
Duration |
Life Insurance policy usually
exceeds a year and is taken for longer period ranging from 5 to 30 years or
whole life. |
General insurance policy
usually does not exceed a year. |
Or
(b)
Prepare a Revenue A/c in respect of Fire Business from the following details
for the year ended 31st March, 2019: 14
|
Particulars |
Rs. |
|
Reserve for
unexpired risk on 01.04.2018 @ 50% Additional
Reserve as on 01.04.2018 Estimated
liabilities for claims: Intimated
on 01.04.2018 31.03.2019 Claims
paid Legal
expenses Medical
expenses Re-insurance,
recoveries of claims Bad
debts Premium
recovered Premium
on re-insurance accepted Premium
on re-insurance ceded Commission
on re-insurance accepted Commission
on direct business Commission
on re-insurance ceded Expenses
of management Interest,
dividend and rent Profit
on sale of investments |
1,80,000 36,000 31,000 42,000 3,65,000 6,000 4,000 32,000 800 4,86,000 32,000 43,000 1,600 48,600 2,150 90,000 24,000 3,000 |
Create
Reserve on 31st March, 2019 on the same extent as on 1st April,
2018.
6. (a) (1) What is Investment A/c? Discuss about the features and purposes
of Investment A/c. 2+4+4=10
Ans: Investment Accounts: The accounts of investments
are kept in the same way as the accounts of any other asset. A separate
investment account should be opened for each kind of security and on the head
of the account particulars regarding the nature of the security, dates when
interest or dividend is due, the date of redemption etc. should be stated. When
the number of investments carried is large, a separate investment Ledger is
employed for recording all investment accounts.
Features of
Investment accounts:
1. It is a real account.
2. Investment account is divided into three columns.
First column shows nominal value of investment, second column show interest and
dividend and third column shows cost of investment or sale proceeds of
investment.
3. It is prepared for each share, bond and debenture
separately.
4. It is prepared on cost basis.
5. Balance of Investments are valued at cost or market
price whichever is lower in case of short term investments and at cost in case
of long term investments.
Purpose of
maintaining an investment ledger is as follows:
1.
It helps in keeping a record of
each investment separately.
2.
It helps to ascertain the value
of securities at the end of the account period.
3.
It is helpful in collection of
interest and dividend as and when they become due.
4.
It is helpful in ascertaining
the amount of accrued income at the end of the accounting period.
5.
It facilitates the
determination of the profit or loss on sale of any security.
(2) Distinguish between Cum-interest and Ex-interest in Investment
A/c. 4
Ans: Cum-interest and Ex-interest
price: The term ‘Cum’ and ‘Ex’ are Latin words.
‘Cum’ means with and ‘Ex’ means without. The term ‘Cum-interest’ and
‘Ex-interest’ relate to debentures and bonds. Cum-interest can be expanded as
inclusive of interest and Ex-interest can be expanded as exclusive of interest.
Cum interest is the amount of interest accrued in the duration
between the last interest date and the settlement date or transaction date. The
cum-interest price includes not only the cost but also includes the interest
accrued upto the date of purchase, and when interest becomes due it would be
the right of the buyer to claim interest. Conversely, the quotation,
Ex-interest, covers only the cost of the debentures and the buyer is liable to
pay additional amount as interest accrued upto the date of purchase of
debentures.
Difference between Cum-interest and Ex-interest
|
Basis |
Cum-interest |
Ex-interest |
|
Meaning |
It means the
price of debentures with interest |
It means
price of debentures without interest. |
|
Right to
interest |
The buyer
gets the right to received interest paid after the sale. |
The seller
retains the right to receive interest accrued during his holding. |
|
Price |
The price is
higher than what would have to be paid otherwise. |
The price is
lower than what would have to be paid otherwise. |
|
Accrued
interest |
In case of
cum-interest nothing is payable for interest accrued. |
In case of
ex-interest, accrued interest is payable. |
Or
(b) Mr.
Babu bhai furnishes the following details relating to his holding in 6%
Government Bonds:
|
Opening
Balance (On
01.04.2018) 01.06.2018 01.10.2018 01.01.2019 01.02.2019 |
: 1,200
bonds of Rs. 100 each at a cost of Rs. 1, 18,000. : 200
bonds purchased ex-interest at Rs. 98. : Sold
400 bonds ex-interest out of the original holding at Rs. 100. :
Purchased 100 bonds at Rs. 98 cum-interest. : Sold
400 bonds ex-interest at Rs. 99 out of the original holdings. |
Interests
are calculated as on 30th June and 31st December.
Mr. Babu Bhai closes his books on every 31st March. Show the
Investment A/c as it would appear in his books. Working note should be a part
of your answer. 14
(Old Course)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
1. (a)
Fill in the
blanks: 1x4=4
1)
Non-banking assets are shown in
Schedule _________ of a bank Balance Sheet.
2)
In case of marine insurance, the
provision against unexpired risk is maintained at _________% of net premium.
3)
The Presidency Towns Insolvency Act,
_________ applies to the persons residing in the Presidency Towns of Mumbai,
Kolkata and Chennai.
4)
Investment A/c is a _________ A/c.
(b) Write
True or
False: 1x4=4
1)
A bank can open a branch only at the
permission of the Reserve Bank of India.
2)
Valuation Balance Sheet is prepared to
know surplus or deficiency of the life insurance business.
3)
Preferential creditors are shown under
List C of the Statement of Affairs.
4)
By the term inflation, we mean a rise
in the value of money and a fall in general price level.
2. Write
short notes on any four of the following:
4x4=16
a)
Rebate on Bills Discounted.
b)
Life Insurance Corporation Act, 1956.
c)
Deficiency A/c.
d)
Objectives of Investment Accounting.
e)
Mid-period Conversion.
3. (a)
Explain in relation to Bank Accounting:
3x4=12
1)
Cash credit and overdraft.
2)
Cash reserve ratio.
3)
Core banking.
4)
Non-performing assets.
Or
(b)
Prepare the Profit & Loss A/c with necessary schedule of Trinity Bank Ltd.
for the year ended 31st March, 2019: 12
|
Particulars |
Rs.
(‘000) |
|
Interest
on loans Interest
on deposits Commission,
exchange and brokerage Discount
on bills discounted (gross) Payment
to employees Interest
on cash credit Rent and
rates Interest
on overdrafts Directors’
fees Auditors’
fees Postal
expenses Printing
and stationery Sundry
expenses |
2,590 3,850 82 1,950 540 2,230 180 1,540 30 12 14 29 17 |
Other
Information:
|
Particulars |
Rs.
(‘000) |
|
(1)
Rebate on bills discounted (2) Bad
debts (3)
Provision for Income Tax |
490 400 1,000 |
4.
(a) (1) What are the different types of insurance contracts? Explain them in
brief.
(2) How is
profit or surplus ascertained and distributed by a life insurance
company? 7+4=11
Or
(b) From
the following information, prepare a Revenue A/c of North-East Life Insurance
Company for the year ended 31st March,
2019: 11
|
Particulars |
Rs.
(‘000) |
|
Life
assurance fund as on 1st April, 2018 Premiums Interest,
dividends and rents Consideration
for annuities granted Fines
for revival of lapsed policies Claims
paid Bad
debts Expenses
of management Commission Bonus in
reduction of premiums Annuities
paid Surrenders Surplus
on revaluation of reversions purchased Income
tax paid Bonus in
cash |
7,50,000 3,72,000 2,26,000 12,500 200 42,500 400 35,000 16,000 500 18,500 25,500 1,500 32,000 18,000 |
5. (a)
What is Statement of Affairs? How is it prepared? Distinguish between a
Statement of Affairs and a Deficiency Account.
2+5+4=11
Or
(b) Mr.
Ramesh Kumar filed a petition of insolvency on 30th June, 2018.
His books showed the following balances:
|
Particulars |
Rs. |
Rs. |
|
Cash in
Hand Fixture
and Fittings (estimated to produce Rs. 1,200) Stock-in-Trade (estimated
to produce Rs. 18,000) Sundry
Creditors: Trade
Creditors Bills
Payable Sundry
Debtors: Good Doubtful
(estimated at 50%) Bad Bank
Overdraft Capital |
150 3,750 27,000 15,000 30,000 30,000 |
30,000 33,000 18,000 24,900 |
|
|
1,05,900 |
1,05,900 |
Other
Information:
1)
Liability on bills discounted
amounting to Rs. 7,500 (expected to rank Rs. 1,500)
2)
His household furniture, etc. was
valued at Rs. 3,750. He owned a house valued at Rs. 11,250, having a mortgage
on it of Rs. 9,000 at 4% p.a. Interest thereon was paid up to the preceding 31st December.
3)
Preferential creditors amounted to Rs.
525 (include in Sundry Creditors) and Rs. 225 for rates on the house.
Prepare a Statement
of Affairs and Deficiency A/c. 7+4=11
6. (a)
What are the special features of Investment Accounts? How are stock exchange
transactions (sale and purchase of securities) recorded in books?
6+5=11
Or
(b)
Jaipur Investment Ltd. holds 1,000, 15% debentures of Rs. 100 each in Udaipur
Industries Ltd. as on 1st April, 2018, at a cost of Rs.
1,05,000. Interest is payable on 30th June and 31st December
each year. On 1st May, 2018, 500 debentures are purchased
cum-interest at Rs. 53,500. On 1st November, 2018, 600
debentures are sold ex-interest at Rs. 57,300. On 30th November,
2018, 400 debentures are purchased ex-interest at Rs. 38,400. On 31st December,
2018, 400 debentures are sold cum-interest for Rs. 55,000. Prepare Investment
A/c valuing holding on 31st March, 2019 at cost (applying FIFO
method). 11
7. Out of
Syllabus
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