Test Accounts

Q 1. The Balance sheet of WYX Ltd. as at 31st December, 2008 inter alia includes the following : Rs. 75000, 8% Preference shares of Rs. 100 each Rs. 70 paid up 52,50,000 150000 Equity shares of Rs. 100 each fully paid up 1,50,00,000 Securities premium 7,50,000 Capital redemption reserve 30,00,000 General reserve 75,00,000 Under the terms of their issue, the preference shares are redeemable on March 31, 2009 at a premium of 5%. In order to finance the redemption, the company makes a right issue of 75000 equity shares of Rs. 100 each at Rs. 20 being payable on application, Rs. 35 (including premium) on allotment and the balance on January 1, 2010 The issue was fully subscribed and allotment made on March 1, 2009. The monies due on allotment were received by March 30, 2009. The preference shares were redeemed after fulfilling the necessary conditions of Section 80 of the Companies Act, 1956. The company decided to make the minimum utilization of general reserve. You are asked to pass the necessary journal entries and show the relevant extracts from the Balance Sheet as on March 31, 2009 with the corresponding figures as on 31st December, 2008. Note : Party paid up Preference Share cannot be redeemed. Hence, the company share call the amount due from the Preference Shares

Q 2 . ABC Limited recently made a public issue in respect of which the following information is available : (a) No. of partly convertible debentures issued 4,00,000; face value and issue price Rs.100 per debenture. (b) Convertible portion per debenture 60%, date of conversion on expiry of 6 months from the date of closing of issue. (c) Date of closure of subscription lists 1.5.2009, date of allotment 1.6.2009, rate of interest on debenture 15% payable from the date of allotment, value of equity share for the purpose of conversion Rs. 60 (Face Value Rs. 10). (d) Underwriting Commission 2.5 %. (e) No. of debentures applied for 300000 (f) Interest payable on debentures half-yearly on 30th September and 31st March. Write relevant journal entries for all transactions arising out of the above during the year ended 31st March, 2010 (including cash and bank entries).

Q. 3. The Trial balance of CDX Ltd. as at 31st March, 2010 shows the following items : Dr. Cr. Rs. Rs. Advance payment of income-tax 550000 ² Provision for income-tax for the year ended 31.3.2009 ² 300000 The following further information are given : (i) Advance payment of income-tax includes Rs. 350000 for 2008-09. (ii) Actual tax liability for 2008-09 amounts to Rs. 380000 and no effect for the same has so far been given in accounts. (iii) Provision for income-tax has to be made for 2009-10 Rs. 400000 You are required to prepare (a) provision for income-tax account, (b) advance payment of incometax

20. .2010. (c) liabilities for taxation account and also show.000 Liquid Ratio 2.account.PER SHARE WITH 20% SECURITY PREMIUM. ONE OF THE SHAREHOLDER MR RAJU WHO HOLD 1. OUT OF FORFEITED SHARES . prepare a Balance Sheet as on 31.3. PASS NECESSARY JOURNAL ENTRIES AND ALSO PREPAER BALANCE SHEET AFTER ISSUE.P Ratio 25 % Cost of Sales/Closing Stock 13. (ii) Loose tools. EXCESS APPLICATIONS ARE REFUNDED BACK.9 Reserve & Surplus/Share Capital 0. Q. (ix) Interest accrued but not due on loans (x) Immovable properties. AFTER SUFFICIENT REMINDERS . BOARD DECIDED TO FORFEIT HIS SHARES . (v) Public deposit (vi) Discount on issue of shares. 5 . (viii) Share premium account.000 ON APPLICATION RS 3 PER SHARE ON ALLOTEMENT RS 2+ PREMIUM PER SHARE ON SHARE FIRST CALL RS 3 PER SHARE ON 2ND & FINAL CALL RS BAL AMT ALL SHARE APPLICATIONS SCRUTINISED . (iii) Future installments payable under hire.25 Average Debt Collection period 3months G. (vii) Proposed dividend. (iv) Unclaimed dividends. BB LTD ISSUED 1. .5 times Net Working Capital Rs. From the following information relating to ST Ltd. APPLICATION RECEIVED FROM PUBLIC = 1.purchase agreements. Current Ratio 3 Fixed Assets/Shareholders¶ Networth 0.25 Q 6 .00. 4 . State the respective heads of the following items in Balance Sheet of a Company : (i) Uncalled liability on share partly paid. 600.000 SHARES FAILED TO PAY 2ND & FINAL CALL MONEY. 600 SHARES ARE REISSUED @ RS 6 PER SHARE. how the relevant items will appear in the profit and loss account and balance sheet of the Company Q.000 EQUITY SHARES FACE VALUE RS 10/.

SOLD INVESTMENT FOR RS 50.000 14.Q 7 .000 WHOSE BOOK VALUE RS 45.000 14% PREF SHARES (FACE VALUE RS 10/-) WITH PREMIUM RS 2 PER SHARE. 2.000 8. 2010. Q 8 . ISSUE 15% DEBENTURE NOMINAL VBALUE RS 20. ascertaining the profit made by the department during the year ended 31st March.000 7.000 9. 2010: Goods out on hire-purchase (at hire-purchase price) 2.000/.78. 5. The following additional information is provided to you : RS On 1st April. has a hire-purchase department which fixes hire-purchase price by adding 40% to the cost of the goods. 2009 : Goods out on hire-purchase (at hire-purchase price) Instalments due Transactions during the year : Hire-purchase price of goods sold Instalments received Value of goods repossessed due to defaults (hire-purchase instalments unpaid Rs.10.12.& RS 75. 4. SECURITY PREMIUM RS 15.80. 3.000/ISSUE 1.000 EQUITY SHARES BUYBACK @ RS. FOR THAT PURPOSE COMPANY : 1. 12 PER SHARE (FACE VALUE RS 10/-). A LTD RESOLVED THAT 10.600) On 31st March. .800 3.000/GENERAL ESERVE & PROFIT AND LOSS A/C BAL RS 40.000/-. Modern Ltd.000/PASS NECESSARY JOURNAL ENTRIES IN THE BOOKS OF A LTD.000 You are required to prepare Hire-purchase Trading Account.

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