Accountancy : Company Accounts and Analysis of Financial Statements 2011 CBSE [ All India ] Set II
To Access the full content, Please Purchase
-
Q1
Give the average period in months for charging interest on drawings for the same amount withdrawn at the beginning of each quarter.
Marks:1View AnswerAnswer:
7.5 months
-
Q2
What is the basis for preparing Receipt and Payment Account?
Marks:1View AnswerAnswer:
Cash basis
-
Q3
State the meaning of sacrificing ratio.
Marks:1View AnswerAnswer:
The ratio in which some partners sacrifice their ratio in favour of other partner is called sacrificing ratio.
-
Q4
Give the meaning of ‘Issue of Debentures as a collateral security’.
Marks:1View AnswerAnswer:
‘Issue of Debentures as a collateral security’ refers to issue of debentures as a secondary security along with principal security for raising loan.
-
Q5
How does the nature of business affect the value of goodwill of a firm?
Marks:1View AnswerAnswer:
The firm producing products, having stable demand will be able to earn more profits and more goodwill.
-
Q6
Goodluck Ltd. purchased machinery costing Rs. 10,00,000 from Fair Deals Ltd. The company paid the price by issue of Equity shares of Rs. 10 each at a premium of 25%.
Pass necessary journal entries for the above transactions in the books of Goodluck Ltd.Marks:3View AnswerAnswer:
Journal of Goodluck Ltd.
Date
Particulars
Dr.
Cr.
Machinery Dr.
10,00,000
To Fair Deals Ltd.
10,00,000
(Being machinery purchased)
Fair Deals Ltd. Dr.
10,00,000
To Equity Share Capital A/c
8,00,000
To Securities Premium A/c
2,00,000
(Being the issue of 80,000 fully paid equity shares at a premium of 25%)
Working Note:
Number of Equity Shares to be issued=Purchase Price/Issue Price of Share
=10,00,000/12.5
=80,000 shares -
Q7
X Ltd. redeemed 1,000 6% Debentures of Rs. 100 each by converting them into Equity shares of Rs. 100 each. The 6% Debentures were redeemable at a premium of 5% for which the Equity shares were issued at a premium of 25%. Pass the necessary journal entries for the redemption of the above mentioned Debentures in the books of X Ltd.
Marks:3View AnswerAnswer:
Journal of X Ltd.
Date
Particulars
Dr.
Cr.
6% Debentures A/c Dr.
1,00,000
Premium on Redemption
of Deb. A/c Dr.
5,000
To Debenture holders A/c
1,05,000
(Being debentures due for redemption)
Debentures holders A/c Dr.
1,05,000
To Equity Share Capital A/c
84,000
To Securities Premium A/c
21,000
(Being equity shares issued at a premium of 25% in conversion of Debentures)
Working Note: Number of Equity Shares to be issued
= Amount Payable/Issue Price of Share
=1,05,000/125=840 shares -
Q8
From the following information of a club, show the amounts of Prize awarded & Prize fund in the Financial Statements of the club for the year ended on 31st March 2009 and 31st March 2010:
Details
Rs.
Prize Fund as on 1.4.2009
20,000
Prize Fund donations received during the year 2009-2010
40,000
Prizes awarded during the year 2009-2010
69,000
Marks:3View AnswerAnswer:
Balance Sheet (As on 31st March 2009)
Liabilities
Amount
Assets
Amount
Prize Fund
20,000
Balance Sheet (As on 31st March 2010)
Liabilities
Amount
Assets
Amount
Prize Fund
20,000
Nil
Add: Donation for fund
40,000
60,000
Less: Prize awarded
60,000
Income & Expenditure Account
Dr. (for the year ended 31st March,2010) Cr.
Expenditure
Amount
Income
Amount
To Prize Awarded (69,000-60,000)
9,000
-
Q9
A and B entered into partnership on 1st April 2009 without any partnership deed. They introduced capitals of Rs. 5,00,000 and Rs. 3,00,000 respectively. On 31st October 2009, A advanced Rs. 2,00,000 by way of loan to the firm without any agreement as to interest.
The Profit and Loss Account for the year ended 31.3.2010 showed a profit of Rs. 4,30,000 but the partners could not agree upon the amount of interest on loan to be charged and basis of division of profits. Pass a journal entry for the distribution of the profits between the partners and prepare the Capital A/c of both the partners and Loan A/c of ‘A’.Marks:4View AnswerAnswer:
Dr. Profit and Loss Appropriation A/c Cr.
Particulars
Amount
Particulars
Amount
To A’s Capital
2,12,500
By Net Profit (4,30,000-5000)
4,25,000
To B’s Capital
2,12,500
4,25,000
4,25,000
Dr. Partners Capital A/c Cr.
Journal Entry
Date
Particulars
Dr.
Cr.
31.3.
10
Profit & Loss Appropriation A/c Dr.
4,25,000
To A’s Capital A/c
2,12,500
To B’s Capital A/c
2,12,500
(Being profit distributed among the partners)
Dr. A’s Loan A/c Cr.
Date
Particulars
Amount
Date
Particulars
Amount
31.3.
10
To Balance c/d
2,05,000
31.10.
10
By Bank A/c
2,00,000
31.3.
10
By Int. on
Loan
5,000
2,05,000
2,05,000
-
Q10
Pass the necessary journal entries for the issue and redemption of debentures in the following cases:
(i) 15,000, 9% Debentures of Rs. 250 each issued at 5% premium, repayable at 15% premium.
(ii) 2,00,000, 12% Debentures of Rs. 10 each issued at 8% premium, repayable at par.Marks:4View AnswerAnswer:
(i) Journal
S. N.
Particulars
Dr.
Cr.
1
Bank A/c Dr.
39,37,500
To 9% Debentures App. &
Allot. A/c
39,37,500
(Being application money received)
2
9% Debenture App. & Allot. Dr.
39,37,500
Loss on Issue of Deb. A/c Dr.
5,62,500
To 9% Debentures A/c
37,50,000
To Securities Premium A/c
1,87,500
To Premium on Redemption
of Debenture A/c
5,62,500
(Being application money transferred)
3
9% Debentures A/c Dr.
37,50,000
Prem. On Red. Of Deb. A/c Dr.
5,62,500
To Debenture holders A/c
43,12,500
(Being deb. Due for redemption)
4
Debenture holders A/c Dr.
43,12,500
To Bank A/c
43,12,500
(Being amount paid to debenture holders)
(ii) Journal
1
Bank A/c Dr.
21,60,000
To Deb. App. & Allot A/c
21,60,000
(Being application money received)
2
Deb. App. & Allot. A/c Dr.
21,60,000
To 12% Debentures A/c
20,00,000
To Securities Premium A/c
1,60,000
(Being application money received including premium)
3
12% Debentures A/c Dr.
20,00,000
To Debentureholders A/c
20,00,000
(Being debentures due for redemption)
4
Debentureholders A/c Dr.
20,00,000
To Bank A/c
20,00,000
(Being amount paid to debenture holders)
