(a) You are required to comment on the following cases as per the provisions of Accounting Standard-1 ‘Disclosure of Accounting Policies': (1) Bee Limited has not complied with AS-2 "Valuation of inventories" and the same is disclosed in the Notes on Accounts. Management is of the view that the financial statements give a true and fair view as non-compliance with AS-2 is disclosed. (2) Cee Limited sold its Office Building for ₹10,00,000 on 1st March, 2023. The buyer has paid the full amount and taken possession of the building. The book value of the Office Building is ₹4,00,000. On 31st 2023, documentation and legal formalities are pending. The company has not recorded the disposal and the amount received is shown as an advance. (3) Dee Limited has prepared its accounts on cash basis and the same is not disclosed. (4) Jee Limited disclosed significant accounting policies adopted in the preparation of financial statements, in the Directors' Report.

(b) Olivia bought a Home Theatre System on Instalment basis from Liam on 01/10/2022 on the following terms: (i) ₹40,000 to be paid immediately: (ii) 6 half yearly instalments of ₹50,000 each to be paid commencing from 01/04/2023. (iii) Interest is charged at 8% p.a. at half yearly intervals. You are required to calculate the cash price of the Home Theatre System and the interest paid with each instalment. (Round off figures to nearest rupee)

(c) On 1st April, 2018 Improvis Limited issued ₹75,000, 9% Debentures of ₹100 each at a premium of 5%. The Debentures are redeemable at 10% premium on 31.03.2023, Investment as required by law was made in Fixed Deposit of Bank on 30.04.2022 earning interest @8% p.a. You are required to pass Journal Entries for the year 2022-2023 related to Investment and Redemption of the Debentures

(d) Mille started a business on 01.04.2022 with a capital of ₹15,00,000. She purchased 1,500 units of stock at ₹1,000 each. She sold the entire stock for ₹1,500 each unit till 31.03.2023. You are required to calculate the maximum amount which can be withdrawn by Mille in order to keep her capital intact, if Financial Capital is maintained at: (i) Historical Cost (ii) Current Purchasing Power (opening index at 100 and closing index at 125) (iii) Physical Capital Maintenance (Price per unit at the end of year is ₹1,350)

(e) Storek Limited has a subscribed capital of ₹21,00,000 in Equity Share Capital consisting of 1,50,000 shares of ₹10 each fully paid and 1,00,000 shares of ₹10 each, called up capital ₹6 per share. On 01.04.2023 the company decides to convert the partly paid-up shares into fully paid-up shares by way of bonus issue and holders of fully paid-up shares are also allotted fully paid-up bonus share in the same ratio. The following figures appear in trial balance of Storek Limited as on 31.03.2023: (₹) Capital Redemption Reserve 80,000 Capital Reserve 1,00,000 Securities Premium 2,20,000 General Reserve 12,50,000 Surplus (credit balance in Profit & Loss Account) 2,40,000 Securities Premium Account includes a premium of ₹75,000 for shares issued to vendors pursuant to a scheme of absorption. It was decided that there should be minimum reduction in free reserves. You are required to pass necessary Journal Entries.