CA Final Paper-6 IBS May'26 | MCQ Solutions | Tell your Score in Comments

Added: 2026-05-15

[00:00:00]Shri Radha Ramano Vijayate. So today we are doing CA final IBS 26 paper MCQ sessions. And let me clarify one thing to you in advance that whatever answers I am going to tell you for MCQs, I will tell them with reasons only.

[00:00:14]So please do not come and comment just after seeing the answer saying, Ma'am, it should have been like this, it should have been like that. I will explain to you with a lot of logic why that is the answer. Why have I given this answer?

[00:00:27]So please don't be too hasty in commenting. Ok? I am starting. The first question is that you have to calculate the amount of custom duty and IGST here for import of machinery from Germany. So see, how will you answer this, look here they have said that you have to increase the price by 3% from whatever the pre-agreed price was.

[00:00:47]So the price of each machine is Rs 15,000.

[00:00:50]In this you will increase it by 3%, multiply it by two machines. So it will become two here, if you multiply Pay 2 by that then you will get Euro 3900. Then what will you do in it? First of all you have to say what is this?

[00:01:03]Your freight is being handled by A V Ship. So we will directly take the actual amount of freight.

[00:01:06]5000 Euros and your insurance charges are 400. You will consider this.

[00:01:11]And apart from this, see, you have paid commission to your local agent. It is in rupees. This will be your add-on. Then, after coming from the port, the rate of taking it to the factory is not included. So I have crossed this out. Then the exchange rate you take here will be 109 and your custom duty rate here will be 10%. Ok? So on this basis your usable value will come out to be Rs 418000, accordingly 10% BCD, then its 10% SWS and IGST, I will calculate 18%, so when I calculate the total of all these BCD, SWS and IGST, then it will come out to be Rs 175756.

[00:01:51]So on this basis your C option gets corrected.

[00:01:53]Then you are asked which statements correctly explain how you see and no one should respond to issues which have arisen during the balance confirmation process according to the terms. Ok?

[00:02:05]So look what will you do? Firstly, you will investigate the confirmations which you get from email addresses not on record. Isn't it? Then you will reconcile its balance and apart from this you will also perform alternative procedures here. This point of yours is correct and we have to tell you only the correct ones. So your first point is correct. The second is saying that you will give some cam etc., you don't have to do this. Your third point is also wrong because it says that the ROMM here is low whereas the risk here is high. And your fourth point is again correct, what will you do? You will report any unresolved issues to TCWG and you may also have to issue qualified opinions etc. So your option B gets corrected here, that is your first and fourth statement gets corrected.

[00:02:50]Deen 1.3 What has happened to you in this? What are you saying to NABARD? The amount has been withdrawn from the T Development account.

[00:03:01]Ok? And in this we have to tell how much your ah tax implication should be basically? So please understand this carefully once because it is possible that many students may have made mistakes in it.

[00:03:13]So look, you have withdrawn a total of Rs 5 crore here.

[00:03:18]Look at this, you have used Rs 2.5 crore for machinery and equipment, you have done the right thing. The plate and installation is also fine. Then this Rs 1.9 crore for solar panels is also fine. But you cannot do this for furniture etc. but you can do it for computers.

[00:03:35]So 25 crores out of 5 crores is correct but this remaining 25 crores is incorrect. Apart from this, if you see the total expenditure you have incurred, it is only Rs 4.95 crore. Whereas how much did you withdraw? 50 million. Meaning how much is left unutilized? 5 crores. So in this way your 30 crores is 0.05 + 0.25 crores. What will happen to you?

[00:04:00]Must be taxable. You should have income.

[00:04:02]But remember how much taxable we have to pay in case of T etc.?

[00:04:08]Only 40% has to be taxable, right? Because agriculture accounts for 60%. So what will you get here with Rs 12 crore?

[00:04:17]Business income will be generated. It will actually be taxable.

[00:04:20]Ok? You can take 40% of Rs 0.3 crore or 60%. It's the same thing. Ok? So many children might have ticked option A here. Whereas the option should be de-corrected here. And you will also get capital gains. Look, the land was yours worth Rs 3 crore and you had acquired it for Rs 1.5 crore. So here your LTCG of Rs 1.5 crore will be released. Now look at this, it has given some additional information.

[00:04:45]Some people might be confused about what you did in the beginning?

[00:04:50]If you buy something from your AT Development Account, you cannot sell it or dispose it off for eight years. But here you have done it. But in this you will probably assume that what happened was that when you initially bought it, you might have misused it in some way, so at that very time it would have become taxable for you, Rs 1.5 crore. So now again we will not need to make it a part of some business income.

[00:05:17]Ok?

[00:05:21]So your option here will be D correct here. It is possible that many people might have tried A but A is not the correct option.

[00:05:29]So option D is correct. After that 1.4 now I know I am finding something a little wrong in this also.

[00:05:34]This is the question of IDT. In that it is asked that how much ITC should your reversal be? So some things are very clear but there is one capital goods implication which I think is confusing. Look, firstly, whatever ITC you have taken related to CSR, you will have to reverse it. That is very fair. So look here, it is giving 90 and 3.6 for your tablets etc. Its ITC should be your reverse.

[00:05:56]You have made a claim. So you will have to reverse this.

[00:05:58]So take 4.5 and see, a reversal will be formed here. Apart from this, you have been informed above that there has been a fire in the factory. So what caused that? Some of your stock got damaged on which you had taken ITC of Rs 9.6 lakh. So what will you have to do with this? Will have to reverse.

[00:06:17]Ok? So how much is 9.6 le + 4.5 le? 14.1 Lt. Ok? This should be a reversal. Then they have given another information regarding capital goods that what has happened to them also?

[00:06:37]What happened to them as well? These are also being reversed. Ah sorry, these too, I mean the fire has destroyed these too. Right? You bought this for Rs 1.77 crore in February 22 and where do we stand today?

[00:06:50]Standing in August 25. Ok? Now, whenever there is disposal of machinery etc., what we do is that we take off the quarter and part dues at ITC - 5% and compare it with the tax on transaction value whichever is higher. So if we consider that then none of the options are matching because your answer will be 796500 something.

[00:07:10]Ok? So if I add this to the 14.1 lakhs, then no option is being created. So it is possible that they may have put this presumption here that what do you do in normal cases? Do you reverse ITC? Meaning you reduce the balance of your electronic credit ledger. But when you have capital goods, then you do not reduce ITC in their case.

[00:07:30]You increase your output tax liability.

[00:07:33]Ok? So it is possible that they may have completely ignored capital goods here.

[00:07:36]So according to me, I am giving you D as the answer here because it is not matching with any other option and in this first option, they have considered the entire initial ITC on capital goods here, brother, that is absolutely wrong. Ok? So according to me, the closest match with the reasoning is that they might not have considered the output tax liability as a part of the reversal here. So on that basis there should be D option.

[00:08:11]But there may be more in this, you people may have taken some more assumptions. So it remains to be seen whether ICI finally takes admission in this. Then 1.5 Look, this is a question of law.

[00:08:22]He has asked which statement is correct here. So look, the first statement is that the offer price for acquisition of shares determines the registered value. Ok? Based on the. Then if you look at its front part, you will not find it anywhere in your ICISM.

[00:08:40]There is a direct reference to Rule 27 and that Rule 27 will tell you exactly what valuation is done in the case of unlisted companies.

[00:08:47]Ok? So it is possible that some people may have doubts here, but on the basis of the options you had, you would know that this would have been right for you.

[00:08:57]Ok? So this first point of yours is ideally correct. Then if you look at the second point, will everyone get that much payment on the basis of the additional consideration part which you have negotiated? No, this does not happen. The additional consideration that has been talked about giving to 10 shareholders is decided on pro data basis. So this gets distributed. So this third point is correct and not the second point. And your fourth point is also absolutely correct that you will have to keep it in a separate bank account. Do it in 60 days and you will still have to keep it for a year. So this point of yours is also correct. So if you see that even if someone has a doubt whether it should be first or not, then you will see that second and fourth are also not your options because second is wrong. First A and C, these also cannot be your options because what is happening to you here? Your third is wrong and the second is wrong here. So ultimately what option do we have? Option D.

[00:09:56]One second he asked correct, yes he asked which ones are correct? I guess I said something wrong, let me repeat it once.

[00:10:13]So look, your second point here is just wrong. Isn't it?

[00:10:17]So this cannot be your answer on that basis.

[00:10:19]This cannot be the answer. And we have to judge between A and D, then on the basis of this it becomes clear that A is your correct one. Ok? So even if you do not have this information on the basis of the book, you still have to be correct because it is known from the option itself. And our fourth option is also correct here, both the one and the third one are correct. So ideally your option D is coming out correct here ultimately. Ok?

[00:10:46]After that look at the second case study.

[00:10:50]Ok? So in this you have a very simple question of FM's business valuation.

[00:10:55]What do we have to say here? The value of business has to be calculated and told. So look, he had given you something worth Rs 98 here.

[00:11:03]What will you do with that? You will reduce the 20%.

[00:11:05]Then at what rate will you capitalize it, at the rate of 14%. And this student has also done it using the same method. He has done it right.

[00:11:11]So ideally your answer will be 560 crores. Ok?

[00:11:16]After that in 2.2 you have to tell which statement is incorrect. So only one statement is incorrect that what you cannot do is that you cannot file an appeal against this ruling. He has told this wrong here. So what happens to you here in Option C? It gets corrected.

[00:11:31]After that, which statement is correct here. We have to tell this. And it is regarding sponsorship element. So if you look at the sponsorship case.

[00:11:41]So in the case of sponsorship, see when does RCM come? What should your supplier be when? Other than the body corporate that is being satisfied here, the condition is this club and who should be the recipient?

[00:11:52]What is this heritage of yours? There is a company. It has been clearly mentioned in the beginning that it is Heritage Organic Limited. Ok? So one of the body corporate and partnership firm should be the recipient. Whatever condition is being satisfied here. So what will come here? RCM will come. And what will the heritage in RCM do?

[00:12:06]GST will be paid on this. And how did you know who Heritage is here? is the recipient.

[00:12:10]Why? Because the company has paid the amount. So the pair is the recipient, that's why. Ok? So Heritage will pay GST here under reverse charge. Option A is correct. Then there is the expected total variable cost. Here we have to calculate. This is a question of costing.

[00:12:27]So look, let me explain it to you.

[00:12:29]Firstly, look here it is mentioned that the material is available at Rs 6200. The cost of direct material has been paid. Isn't it? How many units are there? There are 5000 units. So your material amount here will be 310 lakhs.

[00:12:41]Ok? After that you have to withdraw the two costs given here on the basis of your hours.

[00:12:46]Firstly, labour cost has been given and secondly, variable overheads have been given. But this is given on R basis. So here you will have to apply the concept of learning curve. He has said that the batch of 10 is 1000 units, you are making batches of 10, right?

[00:13:00]So in his case, the learning curve will persist there.

[00:13:04]And what will happen after that? The remaining 40 will also be decided on the basis of the 10th one that you have. The same number of hours will be consumed in the remaining 40 batches.

[00:13:11]So see how you will calculate the average hours for 10 batches that your labour hours are going to be 250 for 100 units. So if you need 10 batches here, how much will 10 raised to the power be?

[00:13:27]10 Rise to the Power When is learning given here? -1520, if I take the same here then on its basis it will come to 176.25, then if we take out its nine batches, for that also we have been given the value 716, if you multiply it by 250 then it will come to 179, okay so what will be the difference between these two, 17 ah sorry, then what will we do with them, so the average hours have come, how much are they taking for nine batches and how much are they taking for 10 batches. Then we will find out how many hours will it take for total 10 batches? Multiply it by 10.

[00:14:05]Multiply by 9 for nine batches.

[00:14:06]Then whatever difference will come, your time will come for the 10th batch. That is 151.5.

[00:14:13]We will multiply this by 40. There are total 40 batches which are going to be there from 11th to 50th, for them the time will be same as that of 10th batch.

[00:14:20]So this will come to you at Rs 660 and for 10 batches we have already charged Rs 1762.5.

[00:14:29]So your total hours will come to 782.5, you will multiply this by the variable cost i.e. 240 + 160 by the cost of 400 hours, then this will also be converted into variable cost of 31.29 lakhs and we had already calculated the amount of material as 310 lakhs, so here it will come to 341.29 lakhs.

[00:14:52]Correct? So option C will be correct for you here.

[00:14:55]Then based on the provisions of non- valued activities. Ah, here we have to make the most correct classification that the voter spirits are waiting, which means you have to wait for the next process because you do not have sufficient inspectors. Right? So this is your non-valued activity in waiting.

[00:15:11]So option C will be correct here.

[00:15:13]Answer this in the question. Then we have 3.1 We have to tell which are the incorrect options out of this? So the first point has been given here, see basically what happened was that all your three directors got disqualified, so what happens in that case, what can the promoter do for you, he can appoint the Press Director, okay, so he said that Harihar Singh who is the promoter cannot proceed with the appointment, this point of yours is wrong, then in the next point he said that he can appoint the Press Director, this is correct, then in the third point he is saying that you will have to take anyone's consent etc. for this, nothing like this happens. So this is a point of consensus between the two points. So both of these, third and fourth also become incorrect for you.

[00:15:58]So only seconds is correct. First, third and fourth. Your first, third and fourth are incorrect. Option C will be correct here. After that, in 3.2 3.2 I told you that this is also a question of again law. The question on remuneration is what do you want to do? Access of the Limit Direct MD What are you trying to give? You want to give remuneration. So what do you have to do in this case?

[00:16:26]SR has to be passed. Firstly, you and whoever you have defaulted on, you have to take prior approval from them. It is not required from the Central Government.

[00:16:36]What have you done with any banks or NCDs etc.? It is set to default. Prior approval is required from them. So option A is correct. B is incorrect because here we are talking about ordinary resolution. And here if you look at C and D, the Central Government is coming, which does not happen. In point 3.3 you are asked to indicate the incorrect statement.

[00:16:53]So look, this is a question regarding Udens. You have to generate only one uding for the whole year. No matter how much communication you do, nothing happens the same way.

[00:17:04]If you are giving different certificates etc., doing different audits, giving reports, then you need separate udents for them.

[00:17:10]Then separate documents are to be generated for Statutory Audit Report and Letter to TCW. You do n't need any Udine for the TCWG letter. Yes, it is required for start audit report. So this will also become incorrect for you. Then your third point is absolutely correct that you will need it for different things. But it is not required for letters. So option C is correct. Meaning the third option is correct here. And in the fourth it is said that you will generate a single UN for all the client documents because UN is generated client wise and not document wise, so this is also wrong, we have to see document wise somewhere or the other, so if you see here, the third is correct, rest first, second and fourth are incorrect, then first, second and fourth option C will be correct here, then it is 3.4, we have to tell the customs procedure here for import of goods, so see, first of all you will file IGM, import manifest is filed, after that entry is done inward. Ok?

[00:18:03]So first of all this happens, first and then second entry inwards. Then what happens after that? Your goods are unloaded. Then what do you do? You file the bill of entry.

[00:18:14]Then what happens to the goods? Assessment takes place.

[00:18:16]And finally you pay the duty.

[00:18:18]So what happens here in option D? Yours gets corrected. The value is 3.5, foreign exchange gain and loss has to be calculated here. You have purchased machinery. So look, machinery is a non-monetary asset.

[00:18:32]But the payables that are being created for you due to this will remain monetary assets. So you will see that at 84 you had an initial exchange rate of 84. Isn't it?

[00:18:43]Then this exchange rate increased to 86 on 31st March.

[00:18:45]So what do you have to do with $2 x, ah ₹2? But you will have to pay extra dollars. So $2 is $100,000 dollars at $2, so how much is $100,000 dollars at $2? You will lose an amount of $2 lakh.

[00:19:02]Right? And then what is happening? Final settlement is taking place at 86.5.

[00:19:07]Meaning it has increased by five more than 86. This means you have suffered another loss of ₹0000 at the time of actual payment. Ok? So your loss for both the financial years will be Rs 2 and Rs 50,000 respectively. So option A is correct.

[00:19:23]After that, the fourth case study is the first forward rate agreement, your settlement amount is being paid. We have to calculate it here and tell us. Ok? So this means a very simple, this flower based question of yours. Where have you got this information? Yes, look, this information is given here. Ok? So look, first you will find the difference between 8.1 and 7.8, multiply it by 3/12 and by multiplying it, your ultimate amount will become Rs 100 crore.

[00:19:54]And what will you take in Divide?

[00:19:57]You can solve this by doing 1 + 8.1 * 3/12. So your answer will ultimately be option A 73514.

[00:20:05]Ok? After that, if you have to get the amalgamation scheme approved here, then do you know what it feels like?

[00:20:13]Firstly, majority is required and in the value, what do the people who have 3/4th of the value of shares want? You need votes. And on what basis do we count this?

[00:20:27]We calculate the majority and 3/4 on the basis of those who are present and voting. So if you look at the data here, 650 shareholders have voted in favor and what did the 100 shareholders do?

[00:20:37]Voted against. Apart from this, there were total 800 present but what did only 750 of them do? Only 750 actually remained present and voted. So we will calculate the majority on the basis of 750.

[00:20:48]Which means majority at 50% becomes majority at more than 50%.

[00:20:53]So more than 375 means minimum 376 people were required here. Plus, if we talk about value, that is, on the basis of shares, then we will consider 28 LA + 4 LA.

[00:21:06]No matter how many total shares there were, it does n't matter how many were present. Whoever is voting also makes a difference. So what did 32 lakh people do here? People with 32 lakh shares have voted. We will take out 3/4 of it which is 24 lax. Ok?

[00:21:25]And actually, if you see, how many people were actually in favor, brother? We needed 376.

[00:21:33]650 have already been done here. Meaning this is also too much. And 24 lax was needed here. 28 lax have been done so this is also too much. This means the criteria has been satisfied. So here your option C which is more than 375 and more than 24 lakh gets corrected. Given 4.3 In this question, ICI may take some more assumptions. But look what is happening here? You have issued a qualified opinion on your complete FS.

[00:22:03]And what do you want to do?

[00:22:08]You have also been appointed to audit some single elements etc. here.

[00:22:11]Ok? So now if you want to give an unmodified opinion on it, can you do that? So look, when you give adverse opinion and disclaimer of opinion, then what you have to check is that it is not a major portion and along with it reports are not being issued. You have to see this. But here it is written qualified opinion and not adverse and disclaimer. So look, the first two options are such that you cannot express them at all.

[00:22:35]This point is absolutely wrong. Then he said that you can express it but it should not be published along with it.

[00:22:43]This is also not ideally correct.

[00:22:47]So if there can be options then it can either be C or D. C So if you treat it like the one with the same adverse and disclaimer etc., if you treat it like them then C can give it.

[00:22:58]But if we go by the strict wording then we can consider option D as correct here. However, there is a slight wording problem in this also that they said that you can issue it unmodified.

[00:23:08]Ok? But he said that as it is a separate engagement. So this reasoning part is a bit inappropriate, meaning they have not given the reasoning correctly. The exact reason is not correct.

[00:23:21]Still, if seen, you can consider option D as correct here. Ok? Then if I talk about 4.4. So what is happening here? There is a case in NCLT etc. that in the amalgamation scheme, VHIL acquired more than 90% of the shares of the company BALL and BHIL further acquired the shares of the descending shareholders after dismissal of their application by NCLT and there still remains descending shareholders who continue to hold, so what action will they have to take now, if you see what NCLT does, it rejects the application of the descending shareholders, then after that it becomes your responsibility that you will have to acquire the shares of all the descending shareholders.

[00:24:01]Ok? So what do you have to do with all the remaining shares? You are bound to acquire all the remaining shares. Ok?

[00:24:10]So what will happen to you here in Option B? It will be correct. The contribution is 4.5. So what are you trying to do here? You are planning to audit the summary financial statements. Isn't it? So your main financial statements are till June 1st.

[00:24:23]So, your report will not be considering any summary financial statements after June 1st, even in your report you will not be considering events after June 1st.

[00:24:32]You have to specify this.

[00:24:33]Plus there was a qualified opinion here. So you have a qualified opinion.

[00:24:36]This also has to be told. So what will happen here in Option B? Yours will be corrected.

[00:24:40]Then we have the last case study.

[00:24:48]So the first thing we have to do is tell the correct attribute based on the Kano model. So look, the basic thing is that you have to do efficient baggage handling. Ok? The performance element is how you'll know you're getting good performance when you're doing seamless transfers. This is this would be something that performance will do your show.

[00:25:07]After that, indifferently, obviously you are putting your logos etc. on magazines or covers. It doesn't matter to anyone.

[00:25:15]Ok? And what a delight it will be if brother you provide good Wi-Fi speed.

[00:25:19]Delighter is something that if it does not happen then no one will feel disappointed. But if this happens then yes people will be happy. So accordingly, if I look at yours, then second, fourth, first and third. Option B What happens to you here? It gets corrected on this basis. Then you have to tell that here you have to calculate the NPV on the basis of bonds etc. and tell it. Ok? So here the answer will be option A.

[00:25:47]Ok? 10.82 crore Simply. After that, which statement is incorrect here in respect of deduction of tax at source from salary. So if you look here also, what is your second option?

[00:26:02]Yours is correct. Everything else here is wrong.

[00:26:06]Ok? This is also wrong. This is also wrong. This is also wrong. So first, second third and fourth are incorrect. So what happens to you here in Option C? It gets corrected. Then which of the following statement is fully correct as per the relevant provisions of CGST Act? So here if you look at the meals that you provide onboard along with air transportation, what is that? Your composite is part of the supply. And in this, air transportation is your principal supply.

[00:26:30]And here you also become eligible for ITC. And what do you do with your PSF and UDF? What do you do as an agent of an airport operator? Let's collect. So that is why it is excluded from your taxable value. So what will you do with just Rs 16.4 crore? You will pay GST here.

[00:26:49]Ok? So option C is correct here. Everything else is wrong. So this is one more remaining last MCQ that which of these statements is correct. So look, you cannot keep the fees of independent directors and women directors less than that of normal directors.

[00:27:06]You can keep more. So look, the first option is that brother, it can never happen that you increase the joining fee, so nothing like this can happen, this option of yours is correct or incorrect because there is no such concept of equal joining fee necessary, then after that it can be accepted for a woman director, no, it can be accepted for an independent also, so your option B will also be incorrect and the last one is whether you will have to get it approved in the general meeting, no, it does not happen like that, what do you have to do, you can increase it easily. You have to pass board resolutions and so on.

[00:27:44]Ok? So this work gets done through him only.

[00:27:47]And this is falling within the overall maximum limit anyway. The permitted limit is Rs 1 lakh. So here you can definitely increase it.

[00:27:56]60,000 and 70,000 for the rest Option C gets corrected here. So all the MCQs have been completed here. Now tell me how many marks are you getting out of 40? Ok. So that's all for this video. Radhe Krishna.