Accountancy: 2018:CBSE:[Delhi]:Set -3
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Q1
Distinguish between 'Dissolution of partnership' and 'Dissolution of partnership firm' on the basis of settlement of assets and liabilities.
Marks:1View AnswerAnswer:
Basis
Dissolution of Partnership
Dissolution of firm
Settlement of Assets and Liabilities
Assets and Liabilities are revalued and new balance sheet is drawn
Assets are sold off and Liabilities are paid off
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Q2
Is 'Reserve Capital' a part of 'Unsubscribed Capital' or 'Uncalled Capital'?
Marks:1View AnswerAnswer:
Reserve Capital is a part of “Uncalled Capital”.
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Q3
Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amounts and purchased a building for ₹2 crores. After a year, they sold it for ₹3 crores and shared the profits equally. Are they doing the business in partnership? Give reason in support of your answer.
Marks:1View AnswerAnswer:
No, Ritesh and Hitesh are only co-owners of the property and are not in partnership. Partnership requires the partners to conduct a business on a regular basis and share the profits from the same.
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Q4
Amit and Beena were partners in a firm sharing profits and losses in the ratio of 3:1. Chaman was admitted as a new partner for 1/6thshare in the profits. Chaman acquired 2/5thof his share from Amit.
How much share did Chaman acquire from Beena?
Marks:1View AnswerAnswer:
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Q5
Give the meaning of 'Debentures issued as Collateral Security'.
Marks:1View AnswerAnswer:
Issue of debentures as a collateral security means issue of debentures as an additional security, i.e., in addition to principal security. This type of additional security only can be realised when the principal security fail to cover amount of the loan.
For example, A company takes a loan of ₹1,00,000 from bank and gave a security but bank demand another security. In this condition company can issue debentures as a secondary security to bank, it will be known as Issue of debentures as a collateral security.
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Q6
Neetu, Meetu and Teetu were partners in a firm. On 1 January, 2018, Meetu retired. On Meetu's retirement the goodwill of the firm was valued at ₹4,20,000.
Pass necessary journal entry for the treatment of goodwill on Meetu's retirement.
Marks:1View AnswerAnswer:
Journal (January 2018)
Date
Particulars
Dr. (₹)
Cr. (₹)
Jan 1
Neetu’s Capital A/c
Dr.
70,000
Teetu’s Capital A/c
Dr.
70,000
To Meetu’s Capital A/c
1,40,000
(Being goodwill adjusted in the ratio 1:1)
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Q7
NK Ltd., a truck manufacturing company, is registered with an authorised capital of ₹1,00,00,000 divided into equity shares of ₹100 each. The subscribed and paid up capital of the company is ₹50,00,000. The company decided to open technical schools in the Jhalawar district of Rajasthan to train the especially abled children of the area. It is planning to provide them employment in its various production units and industries in the neighborhood area.
To meet the capital expenditure requirements of the project, the company offered 20,000 shares to the public for subscription. The shares were fully subscribed and paid.
Present the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the Companies Act, 2013.
Also identify any two values that the company wants to communicate.
Marks:3View AnswerAnswer:
Balance Sheet of NK Ltd. (Extract)
as at
Particulars
Note. No.
Current Year Figures
₹
Previous Year Figures
₹
I. Equity and Liabilities
1. Shareholder’s Funds
a) Share Capital
(1)
70,00,000
50,00,000
Total
70,00,000
50,00,000
Notes To Accounts:
Note. No.
Particulars
₹
1
Share Capital
Authorised Share Capital
1,00,000 Equity Shares of ₹100 each
1,00,00,000
Issued Share Capital
70,000 Equity Shares of ₹100 each
70,00,000
Subscribed and Fully Paid up Capital
70,000 Equity Shares of ₹100 each, fully-called up
70,00,000
Values involved are:
1) Concern for the differently abled children
2) Employment generation
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Q8
What is meant by a ‘Share’? Give any two differences between 'Preference Shares' and 'Equity Shares'.
Marks:3View AnswerAnswer:
Total capital of the company is divided into units of small denominations. Each such unit is called ‘Share’.
Basis of difference
Preference Shares
Equity Shares
Rate of Dividend
Preference Shares are paid dividend at a fixed rate.
The rate of dividend on equity shares is not fixed. It may vary from year to year depending upon the availability of profits.
Voting Rights
Preference Shareholder do not have any voting rights.
Equity Shareholder enjoy voting rights.
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Q9
Jayant, Kartik and Leena were partners in a firm sharing profits and losses in the ratio of 5:2:3. Kartik died and
Jayant and Leena decided to continue the business. Their gaining ratio was 2:3.
Calculate the new profit sharing ratio of Jayant and Leela.
Marks:3View AnswerAnswer:
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Q10
Complete the following journal entries left blank in the books of VK Ltd.:
VK Ltd. Journal
Date
Particulars
L.F.
Dr. (₹)
Cr. (₹)
2018
………….
Dr.
…………
Feb 01
………….
………..
(Purchased own 500, 9% debentures of ₹100 each at ₹97 each for immediate cancellation)
Feb 01
………….
Dr.
………….
…………
…………
………..
………..
(Cancelled own debentures)
………..
………….
Dr.
…………
………….
……….
(……………………….)
Marks:3View AnswerAnswer:
Books of VK Ltd.
Journal
Date
Particulars
L.F.
Dr. ₹
Cr. ₹
2018
Feb 1
Own Debentures A/c
Dr.
48,500
To Cash/Bank A/c
48,500
(Purchased own 500, 9% debentures of ₹100 each at ₹97 each for immediate cancellation)
Feb 1
9% Debentures A/c
Dr.
50,000
To Own Debentures A/c
48,500
To Gain on Cancellation of own debentures A/c
1,500
(Cancelled own debentures)
Mar 31
Gain on cancellation of own debentures
Dr.
1,500
To Capital Reserve
1,500
(Gain on cancellation transferred to Capital Reserve)
