Pendora Ltd. has given the following details in respect of employee benefit pension plan: Particulars Amount ₹ The fair value of plan assets as on…

CA Intermediate · Advanced Accounting · PYQS · September 2024
Pendora Ltd. has given the following details in respect of employee benefit pension plan: Particulars Amount ₹ The fair value of plan assets as on 01-04-2023 5,00,000 The benefits paid out on 30-11-2023 63,000 Inward contributions received on 30-09-2023 1,42,000 The fair value of plan assets as on 31-03-2024 7,50,000 On 01.04.2023, the company made following estimates, based on its market studies and prevailing prices : Particulars % Interest and dividend income (after tax) payable by fund 10.50 Realised gains on plan assets (after tax) 2.00 Fund administrative costs -2.00 Expected rate of annual return 10.50 (Interest is compounded annually) You are required to find the expected and actual returns on plan assets as on 31.03.2024 as per AS 15.

Suggested Answer and Working Notes:

Computation of Expected and Actual Returns on Plan Assets Particulars ₹ Return on 5,00,000 held for 12 months at 10.50% 52,500 Return on 1,42,000 for 6 months at 10.50% 7,455 Loss of interest on benefits paid for 4 months on 63,000 for 4 months @ 10.50% (2,205) Expected return on plan assets for 2023-2024 57,750 Fair value of plan assets as on 31st March 2024 7,50,000 Less: Fair value of plan assets as on 1 April, 2023 5,00,000 Contributions received on 30.9.2023 1,42,000 (6,42,000) 1,08,000 Add: Benefits paid on 30th Nov 2023 63,000 Actual return on plan assets 1,71,000

Topics: AS 15

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