CA Inter Jan 25 Exams | Advanced Accounting MCQ Solutions | CA Suraj Lakhotia (AIR 1,4,2)

Summary

In this video, the speaker reviews an examination paper, discussing its difficulty level and providing solutions to key questions. The paper is described as lengthy but of average difficulty, with topics such as EPS, internal reconstruction, cash flow, and consolidation being highlighted. The speaker offers insights into MCQs, including contract costing, accounting standards, and cash flow activities. He provides solutions for calculations and advises students to quickly check their marks and focus on preparing for the next exam, Corporate Law. The overall tone is casual, encouraging and focused on saving time for further studies.

Takeaways

• 😀 The paper had an average difficulty level but was lengthy, requiring more time to complete.
• 😀 Key areas discussed during revision sessions were emphasized in the exam questions, which should have helped students solve the problems.
• 😀 EPS (Earnings Per Share) question was standard, with some possible confusion regarding dilution calculations.
• 😀 The theory question on future refunds and internal reconstruction introduced new concepts that were lengthy and required more time.
• 😀 The cash flow question was crucial for students who were well-versed in cash flow calculations, providing an opportunity to score well.
• 😀 The amalgamation and consolidation questions were relatively easy, with consolidation being particularly straightforward.
• 😀 The contract costing MCQ required calculating the profit or loss on contracts, with key considerations on depreciation and future costs.
• 😀 Accounting Standard 16 tested the concept of not capitalizing interest on investments that are not qualifying assets.
• 😀 A complex case study involving government grants, impairment, and machine exchange was included, with steps to calculate impairment losses and depreciation.
• 😀 The deferred tax calculation involved identifying permanent differences (e.g., donations) and calculating deferred tax assets and liabilities accurately.
• 😀 Students should not spend too much time revisiting the review and should quickly transition to preparing for the next paper, corporate law.

Q & A

What is the general difficulty level of the exam discussed in the script?

The exam was of average difficulty but was noted to be lengthy, which has been a recurring trend in recent years.

What major topic areas were covered in the exam based on the speaker's review?

The exam covered topics such as EPS, internal reconstruction, cash flow, amalgamation, consolidation, accounting standards, and contract costing.

What was the significance of the cash flow question in the exam?

The cash flow question was a significant relief for students familiar with the subject, as it was straightforward and helped boost their scores. It included calculations for operating, financing, and investing activities.

What did the speaker suggest about the internal reconstruction question?

The internal reconstruction question was considered to be lengthy and required many adjustments, which likely took a considerable amount of time to complete.

What was the main challenge in the contract costing MCQ question?

The contract costing question involved calculating profit or loss on a contract without specifying whether it was for the current year or overall, making it a bit tricky. Students also needed to account for depreciation, unused material, and future costs.

How did the speaker describe the amalgamation and consolidation questions?

The speaker described the amalgamation question as straightforward and the consolidation question as an easy one, possibly the easiest of all the questions in the exam.

What concept was discussed in the theory question related to Accounting Standard 16?

The theory question on Accounting Standard 16 focused on the concept that interest cannot be capitalized on investments in non-qualifying assets, such as equity shares.

How were the questions related to deferred tax assets (DTA) and liabilities (DTL) handled?

The questions on DTA and DTL were direct and involved calculating values based on permanent differences and reversals, such as the reversal of deferred tax assets due to impairment.

What was the issue with the question involving the exchange of a machine?

The machine exchange question was somewhat unclear, particularly regarding the handling of the machine's exchange value and depreciation. The speaker speculated that it involved a machine valued at 21 lakhs being exchanged for 20 lakhs, resulting in a loss of 1 lakh.

What advice did the speaker give to the students after completing the exam review?

The speaker advised students to avoid wasting time on the current paper and instead focus on preparing for the next exam, Corporate Law.