ABC Ltd. maintains its accounts and prepares its annual financial statements in accordance with Indian Accounting Standards (Ind AS). It is a…

ABC Ltd. maintains its accounts and prepares its annual financial statements in accordance with Indian Accounting Standards (Ind AS). It is a diversified global business group with operations spanning multiple sectors. The finance team while working on finalizing the books for the year ending 31st March, 20X3, encountered challenges with the following transactions: (i) ABC Ltd. manufactures automobile parts. It has shown a net profit of 20,00,000 for the third quarter of 20X2-20X3. Following adjustments are made while computing the net profit: (1) Bad debts of 1,00,000 incurred during the quarter. 50% of the bad debts have been deferred to the next quarter. (2) ₹ 5,00,000 expenditure on account of administrative expenses pertaining to the third quarter is deferred on the argument that the fourth quarter will have more sales; therefore, fourth quarter should be debited by higher expenditure. The expenditures are uniform throughout all quarters. (ii) ABC Ltd. enters into a contract to build a power plant for a customer. The entity will be responsible for the overall management of the project including services to be provided like engineering, site clearance, foundation, procurement, construction of the structure, piping and wiring, installation of equipment and finishing. (iii) In financial year 20X1-20X2, ABC Ltd. incurred the following expenditure in acquiring property consisting of 6 identical houses each with separate legal title including the land on which it is built. The expenditure incurred on various dates is given below: On 1st April, 20X2 - Purchase cost of the property - 1,80,00,000On 1st April, 20X2 - Non-refundable transfer taxes - 20,00,000 (not included in the purchase cost)On 2nd April, 20X2- Legal cost related to property acquisition - 5,00,000On 6th April, 20X2- Advertisement campaign to attract tenants - 3,00,000On 8th April, 20X2- Opening ceremony function for starting business - 1,50,000 Throughout 20X2-20X3, incurred - 1,00,000 towards day-to-day repair maintenance and other administrative expenses. ABC Ltd. uses one of the six houses for office and accommodation of its few staffs. The other five houses are rented to various independent third parties. Analyze the transactions mentioned above and choose the most appropriate option in the below questions 1 to 6 in line with relevant Ind AS: