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The following are suggested answers of commerce and accountancy Paper-I of 250 Marks. Exam 2017: Paper -I  1(a)  Topic : Accountancy Marks: 10 Provisions of Indian accounting standards regarding Foreign Exchange transactions:  Indian Standard 21 The effects of changes in foreign exchange rate deals with provisions regarding foreign exchange transactions. An entity may carry on foreign activities in two ways. It may have transactions in foreign currencies or it may have foreign operations. In addition, an entity may present its financial statements in a foreign currency. The objective of the Standard is to prescribe how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into a presentation currency. Para 23 deals with reporting requirements at the end of subsequent reporting period and at the end of each reporting period: foreign currency monetary items shall be tra

1.(a) SA - 710 (i) If previous audit report has modification and the matter which gave rise to such modification is not resolved by management in current year, then modify current year report and also disclose both figures of previous period and current period. (ii) However, if provision is made, then auditor need not to refer earlier year's modification. 1.(b) SA - 501 Auditor shall obtain Sufficient and appropriate audit evidence (SAAE) regarding existence and condition of inventory by attending physical verificaiton (i) Evaluate management procedure (ii) Observe the performance of physical count (iii) Inspect the inventory (iv) Test count Impracticable to attend (i) Perform alternate audit procedure (ii) Inspect documents regarding inventory movement (iii) Modify report if SAAE not obtained 1.(c) SA - 402 (i) Nature of service provided by SO (ii) Materiality of  transaction processed (iii) Degree of interaction between Client and SO (iv) Nature of relatio

Following are amendments for corporate and allied laws including IBC 2016 for both old and new course for November 2018. IBC 2016 -  https://drive.google.com/open?id=1k-J9HvugB2C-08TXVUudM9TSk16pNvxu Corporate Laws - Under Progress Allied Laws - Under Progress More updates if any will be shared separately. Love Ajmer Din

Finally, prepared a suggested answers for all the questions except Q2 and Q4, just go through it and let me know if you have different opinion or point to solve it. 1(a) Provision to be made for warranty under AS29  Amount At 31st March 2017 = 80,000 X 2% + 50,000 X 3%           3,100 At 31st March 2018 = 50,000 X 2% + 180000 X 3%           6,400 Amount to be debited to SPL for 31st March 2018 Balance of provision required as on 31st March 2018           6,400 Less opening balance         (3,100) Amount debited to SPL           3,300 No provision for 80,000 for 31St March 2018 because  warranty has lapsed 1(b)  Amount Rs. (i) interest for the period 2017-18 = $20 X 4% X Rs. 65                 52.00 (ii) increase in liability towards principal amount = $20 X (65-61)                 80.0