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CMA Intermediate · Corporate Accounting and Auditing · Statement of Profit and Loss and Balance Sheet (Schedule III of Companies Act, 2013)

At 31 March, a company's records show: Land Rs 40 lakh; Buildings Rs 60 lakh; Accumulated depreciation on buildings Rs 15 lakh; Capital work-in-progress Rs 12 lakh; Goodwill Rs 8 lakh; Intangible assets under development Rs 5 lakh; Advances for capital goods Rs 4 lakh. What is the total shown under the sub-heading 'Property, Plant and Equipment' (including capital work-in-progress), excluding intangible items and long-term loans and advances?

The total is Rs 97 lakh: land 40 plus buildings net of depreciation 45 (60 less 15) plus capital work-in-progress 12. Goodwill and intangibles under development are intangible assets, and capital advances are long-term loans and advances, so they are excluded from this total.

  1. ARs 97 lakhCorrect
  2. BRs 85 lakh
  3. CRs 101 lakh
  4. DRs 92 lakh

Explanation

Net buildings = 60 - 15 = 45. Land 40 + net buildings 45 + capital work-in-progress 12 = 97 lakh. Rs 85 lakh omits capital work-in-progress. Rs 101 lakh wrongly adds capital advances of 4 lakh, which are other non-current assets. Rs 92 lakh adds intangibles under development 5 and omits 12-based mix incorrectly.

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