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COMPANY ACCOUNTS

Ch :9
Pg :9.8 Pg :9.8 Pg :9.8 Pg :9.49 to 9.62 Pg :9.50 Pg :9.50 Pg :9.51 Q.10 Q.11

Company Accounts
Important MCQ,s as per ICAI Book with Hints to Solve the same Unit :1 Q.1 Hint : Shareholders Equity = Total Assets - Other given Liabilities. Q.2 Unit :2 Q.4 hint: (30 x 5,000) x5% x1.5/12 Q.5 to Q.9 Q.10 to Q.23 Amount received on application= Total Application Received x Amt. per Share on Application 3,00,000 x 20 =60,00,000 . Application money adjusted against allotment= Total shareholders to whom shares were alloted pro-rata- Total Shares Issued)x Application per Share (2,40,000 -2,00,000 )x20 = 8,00,000 . Amt. refunded to Shareholders = (Total Application Received -Total shareholders to whom shares were alloted pro-rata)x Application per Share = (3,00,000-2,40,000) x 20 =12,00,000 . Total Amt. paid by E = (Total Shares Alloted x Total shareholders to whom shares were alloted pro-rata)x Application money per Share x Total Shares Issued . 4,000 x 2,40,000 x 20 / 2,00,000 =96,000 . Total Amt. paid by F = (Total Shares Alloted )x(Application money per Share+Allotment Money per Share ) 6,000 x (20+50) = 4,20,000 . Total Amt. paid by G = (Total Shares Re-issued x(Face Value-Discount) 8,0000 x (10-1) = 7,20,000 .

Q.12

Q.13

Q.14

Q.15

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COMPANY ACCOUNTS

Q.16 Amt. transferred to Share forfeiture account at the time of Forfeiting E's Shares = (Total Shares Alloted x Total shareholders to whom shares were alloted pro-rata)x Application money per Share x Total Shares Issued . 4,000 x 2,40,000 x 20 / 2,00,000 =96,000 . Q.17 Amt. transferred to Share forfeiture account at the time of Forfeiting F's Shares = Shares Forfeited x ( Application money received per share+Allotment money received per Share excluding Premium ). 6,000 x (20+30) = 3,00,000 . Q.18 Net balance in Share Capital Account = (Total Shares Iuued-Total Shares Forfeited-Total Shares Re-issued) x Face value per Share (2,00,000-4,000-6,000+8,000 ) x 100 = 1,98,00,000 . Q.19 Net balance in Security Premium Account = (Total Shares Issued-Total Shares alloted to "E" on which Premium not received ) x Premium per Share (2,00,000-4,000) x20 = 39,20,000 . Q.20 Net balance in Shares Forfeiture Account = (Total Shares of "F" Forfeited- Shares Re-issued to "G" ) X Total amt. received per Share (6,000-4,000 ) x (20+30) = 1,00,000 . Q.21 Net balance in Capital Reserve Account = (Total Amt. received from "E"+Total amt. received from "F" on Shares Re-issued + Total amt. received from "G" )-(Face Value of Shares Re-issued. 96000+2,00,000+7,20,000-8,00,000 = 2,16,000 . Q.22 Net balance in Bank Account = (Total Shares Issued-Total Shares Forfeited) x 120) + Amt received from " E", "F" & "G" . (2,00000-10,000) X 120) + 96000+420000+720000 = 24036000 . Q.23 Balance Sheet Total = Total Assets = Total Liabilities = Balance Total = Total Bank Balance = 24036000 .

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COMPANY ACCOUNTS

Q.34, Q.39 , Q.40 , Q.44 , Q.45 , Q.46, Q.62, Q.70 ,Q.75,Q.83 Q.55 The amount of divedend payable =? Proposed dividend rate ( Called-Up Equity Share Capital-Calls in Arrear) 15%(5,00,000-40,000)=69,000.

Pg :9.90 to 9.93 Unit :3 Q.4 Value of Preference Shares to be Re-deemed: (8,00,000)+(10% of 8,00,000) Add Minimum Cash Balance Required Total Cash Balance Required less Sales proceeds of Investments less Opening Cash balance Cash required to be raised by issue of fresh Equity Shares No. of Equity Shares to be issued Total amt. required to be raised/ value of Equity Shares including premium . No. of Equity Shares to be issued =3,30,000 / 12 = 27,500 Shares Premium on issue of fresh Equity Shares= No. of Equity Shares to be issued x Premium per Share . 27,5,00 x 2 = 55,000 Q.5 Amt to be transferred to C.R.R Face Value of Preference Shares to be redeemed less Face Value of Fresh issue of Equity Shares Transfer to C.R.R Q.8, Q.10, Q.14, Q.16, Q.18

8,80,000 50,000 9,30,000 4,00,000 2,00,000 3,30,000

Rs. 55,000

(27,500 x 10)

8,00,000 2,75,000 5,25,000

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COMPANY ACCOUNTS

Q.12 Bank balance as on Sept 30, 2005 = ? Bank balance as on Aug 3, 2005 Add Receipt from issue of 7% Debentures (12,000 x 97.5) Add Receipt from issue of 8% Preference Shares (25,000 x 100) Total Bank balance available less Proceeds for redemption of 6% Preference Shares (30,000 x 105) less One months dividends on Pref Shares to be redeemed( (30,000 x 100 x 6% /12) Bank balance as on Sept 30, 2005 Q.13 Balance Outstanding to the Credit of Share Premium a/c No. of Fresh Shares issued (1,98,084/21) Premium on Fresh Shares issued (9432 Shares x Rs. 1 per Share ) less Premium on redemption of 12% Preference Shares to be Written off (2,00,000 x 4% ) Balance Outstanding to the Credit of Share Premium a/c 9432 Shares 9432 8,000 1,432 29,25,000 11,70,000 25,00,000 65,95,000 31,50,000 15,000 34,30,000

Pg :9.118 to 9.121 Unit :4 Q.2, Q.5, Q.7, Q.14 ,Q.19 ,Q.24 Additional MCQ's Q.1) X Ltd. issued Rs.1,00,000 12% debentures at a discount of 6% on 1 January, 2001,
st

repayable by five equal annual drawings of Rs.20,000 each on 31st Dec. every year. The amount of discount to be written of each year assuming that the company closes its accounts on calendar year basis is ---

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COMPANY ACCOUNTS

Options

1) Rs. 1200 each Year 2) Rs. 2,000, Rs. 1,600, Rs. 1,200, Rs. 800 Rs. 400 . 3) Rs. 1000 each Year 4) None of these Total Discount to Written Off = 1,00,000 x 6% = Year Debenture Ratio of Amt. of discount to Outstanding benefit be written off derived (Weights) 1 100000 5 Years 2000 2 80000 4 Years 1600 3 60000 3 Years 1200 4 40000 2 Years 800 5 20000 1 Years 400 15 6000 Ans Option ( 2 ) Rs. 6,000

Solution :

6,0000 x 5 / 15 6,0000 x 4 / 15 6,0000 x 3 / 15 6,0000 x 2 / 15 6,0000 x 1 / 15

Q.2) On 1.4.2001, X Ltd. issued Rs.1,00,000 15% Debentures of Rs.100 each at 94% redeemable as follows :

Year end
2 3 4 5

Nominal value of Total Debentures to redeemed
10% 20% 30% 40%

The amount of discount to be written off each year assuming that the company closes its accounts on financial year basis is (a) Rs.2,400, Rs.1,800, Rs.1,200, Rs.600 (b) Rs.1,500, Rs.1,500, Rs.1,350, Rs.1,050, Rs.600 (c) Rs.1,200 each year (d) None of these

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COMPANY ACCOUNTS

Solution : Year

1 2 3 4 5

Total Discount to Written Off = 1,00,000 x 6% = Debenture Ratio of Amt. of discount to Outstanding benefit be written off derived (Weights) 100000 10 1500 100000 10 1500 90000 9 1350 70000 7 1050 40000 4 600 40 Ans Option ( b ) 6000

Rs. 6,000

6,0000 x 10 / 40 6,0000 x 10 / 40 6,0000 x 9 / 40 6,0000 x 7 / 40 6,0000 x 4 / 40

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