Accountancy : Company Accounts and Analysis of Financial Statements 2011 CBSE [ Delhi ] Set III
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Q1
What is the basis for preparing an Income and Expenditure Account in the case of Not-for-Profit Organizations?
Marks:1View AnswerAnswer:
Accrual basis of Accounting is followed while preparing Income & Expenditure A/c.
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Q2
Distinguish between Fixed and Fluctuating Capital Accounts.
Marks:1View AnswerAnswer:
Fixed capital account always shows a Cr. Balance while Fluctuating Capital account may have Dr. or Cr. Balance.
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Q3
State the two main rights that a newly admitted partner acquires in the firm.
Marks:1View AnswerAnswer:
A newly admitted partner acquires the following two rights:
(i) Right to share in future profits of the firm.
(ii) Right to share in assets of the firm. -
Q4
How does the market situation affect the value of goodwill of a firm?
Marks:1View AnswerAnswer:
The monopoly condition or limited competition enables the concern to earn high profits which leads to higher value of goodwill.
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Q5
Pass the necessary Journal entry when 10,000 debentures of Rs. 100 each are issued as collateral security against a Bank Loan of Rs. 8,00,000.
Marks:1View AnswerAnswer:
Date
Particulars
Dr.
Cr.
Debenture Suspense A/c Dr.
10,00,000
To Debentures A/c
10,00,000
(Being 10,000 Debentures of Rs. 100 each, issued as Collateral Security against Bank loan of Rs. 8,00,000)
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Q6
Y Ltd. Purchased furniture costing Rs. 1,35,000 from A.B. Ltd. The payment was made by issue of Equity Shares of Rs. 10 each at a discount of Rs. 1 per share. Pass necessary Journal entries in the books of Y Ltd.
Marks:3View AnswerAnswer:
In the books of Y Ltd.
S.N.
Particulars
Dr.
Cr.
1
Furniture A/c Dr.
1,35,000
To A B Ltd.
1,35,000
(Being furniture purchased from AB Ltd.)
2
A B Ltd. Dr.
1,35,000
Discount on issue of shares
A/c Dr.
15,000
To Share Capital A/c
1,50,000
Working Note:
Number of shares to be issued
= Purchase Price/Issue price of a share
= 1,35,000/9=15,000 -
Q7
From the following information of a club show the amounts of match expenses and match fund in the Financial Statements of the Club for the years ended on 31st March, 2009 and 31st March 2010.
Details
Amount
Rs.
Match expenses (paid during the year
17,000
2009-2010)
Match Fund (as on 31-3-2009)
7,000
Donation for Match Fund (Received
2,000
during the year 2009-2010)
Proceeds from the sale of match tickets
(Received during the year 2009-2010)
4,000
Marks:3View AnswerAnswer:
An Extract of Balance Sheet
as at 31st March 2009
Liabilities
Amount
Assets
Amount
Match Fund
7,000
An Extract of Balance Sheet
as at 31st March 2010
Liabilities
Amount
Assets
Amount
Match Fund
7,000
Add: Donations
For Match Fund
2,000
Add: Receipts
From match
Tickets
4,000
13,000
Less: Match
Expenses
13,000
Nil
Income and Expenditure A/c
For the year ended 31-3-2010
Dr. Cr.
Expenditure
Amount
Income
Amount
To Match Expenses
4,000
(17000-13000)
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Q8
Shyam Ltd. converted 450, 10% Debentures of Rs. 100 each into Equity Shares of Rs. 100 each. The 10% Debentures were redeemable at 10% premium and the Equity Shares were issued at 25% premium. Pass necessary Journal entries for the redemption of above mentioned debentures in the books of Shyam Ltd.
Marks:3View AnswerAnswer:
In the books of Shyam Ltd.
S.N.
Particulars
Dr.
Cr.
1
10% Debentures A/c Dr.
45,000
Premium on Redemption Of
Debentures A/c Dr.
4,500
To Debenture holders A/c
49,500
(Being amount due to
debenture holders)
2
Debenture holders A/c Dr.
49,500
To Share Capital A/c
39,600
To Securities Premium A/c
9,900
(Being obligation discharged by
issuing shares)
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Q9
Pass the necessary Journal entries for the issue and redemption of Debentures in the following cases:
(i) 10,000, 10% Debentures of Rs. 120 each issued at 5% premium, repayable at par.
(ii) 20,000, 9% Debentures of Rs. 200 each issued at 20% premium, repayable at 30% premium.Marks:4View AnswerAnswer:
(i) At the time of issue:
S.N.
Particulars
Dr.
Cr.
1
Bank A/c Dr.
12,60,000
To Debenture Application &
Allotment A/c
12,60,000
(Being application money received)
2
Debentures App & Allot A/c Dr.
12,60,000
To 10% Debentures A/c
12,00,000
To Securities Premium A/c
60,000
(Application money transferred)
At the time of redemption:
S.N.
Particulars
Dr.
Cr.
1
10% Debentures A/c Dr.
12,00,000
To Debenture holders A/c
12,00,000
(Being amount due on redemption)
2
Debenture holders A/c Dr.
12,00,000
To Bank A/c
12,00,000
(Being amount paid )
(ii) At the time of issue:
S.N.
Particulars
Dr.
Cr.
1
Bank A/c Dr.
48,00,000
To Debenture Application &
Allotment A/c
48,00,000
(Being application money received)
2
Debentures App & Allot A/c Dr.
48,00,000
Loss on Issue of Debentures A/c Dr.
12,00,000
To 9% Debentures A/c
40,00,000
To Securities Premium A/c
8,00,000
To Premium on Red. Of Deb.
12,00,000
(Application money transferred)
At the time of redemption:
S.N.
Particulars
Dr.
Cr.
1
9% Debentures A/c Dr.
40,00,000
Premium on Red. Of Debentures Dr.
12,00,000
To Debenture holders A/c
52,00,000
(Being amount due on redemption)
2
Debenture holders A/c Dr.
52,00,000
To Bank A/c
52,00,000
(Being amount paid )
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Q10
A and B are partners in a firm sharing profits and losses in the ratio of 3:2. The following was the Balance Sheet of the firm as on 31-3-2010.
Liabilities
Amount
Rs.
Assets
Amount
Rs.
Capitals: A
B
60,000
20,000
Sundry Assets
80,000
80,000
80,000
The profits Rs. 30,000 for the year ended 31-3-2010 were divided between the partners without allowing interest on capital @ 12% p.a. and salary to A @ Rs. 1,000 per month. During the year, A withdrew Rs. 10,000 and B Rs. 20,000.
Pass the necessary adjustment journal entry and show your working clearly.Marks:4View AnswerAnswer:
Date
Particulars
Dr.
Cr.
B’s Capital A/c Dr.
6,240
To A’c Capital A/c
6,240
(Being adjustment entry passed)
Working Notes:
Statement Showing Past Adjustments
Particulars
A
B
Firm
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Profits wrongly distributed now reverted
18,000
12,000
30,000
Int. on Capital
7,200
2,400
9,600
Salary
12,000
12,000
Profit
5,040
3,360
8,400
Total
18,000
24,240
12,000
5,760
30,000
30,000
Net Effect
6,240
6,240
