1.

Name the account which shows the classified summary of transactions of a Cash Book in a not-for-profit organisation. (1) 2. List two items that may appear on the Credit side of a partner.s fixed capital account.(1) 3. Give two circumstances in which sacrificing ratio may be applied. (1) 4. Name any two factors affecting goodwill of a partnership firm. (1) 5. What is the nature of Interest on Debentures? (1) 6. State the exceptions to the creation of Debenture Redemption Reserve as per SEBI Guidelines. (3)

7. Akash Ltd. issued 1,00,000 shares of Rs. 10 each, payable as follows : Rs. 2 on application payable on 1st March, 2006; Rs. 3 on allotment payable on 1st May, 2006; Rs. 2 on first call payable on 1st August, 2006 and Rs. 3 on second and final call payable on 1st December, 2006. All these shares were subscribed for and amounts duly received. Akriti, who had 8,000 shares, paid the amount of both the calls alongwith allotment. Suniti, who had 4,000 shares, paid the amount of second and final call with the first call. Calculate the amount of interest on calls-in-advance payable to Akriti and Suniti. The Company adopts Table A. (3)

8. X, Y and Z are partners sharing profits and losses in the ratio of 3:2:1. After the final accounts have been prepared, it was discovered that interest on drawings @ 5% had not been taken into consideration. The drawings of the Partners were : X Rs. 15,000; Y Rs. 12,600; Z Rs. 12,000.Give the necessary adjusting journal entry. (4)

purchase of the average of five years. 20 called up) held by Asha. for non payment of allotment money of Rs. 70. The profits and losses of the preceding five years are: Profits : 2001 . 10 per share (including Rs. profits. 2003 . 6 per share. Give journal entries for forfeiture and reissue of shares. 20 per share at paid up value. (4) . Loss : 2005 . (4) 10. 60. 2002 Rs.000.Rs. 2004 .000 . From 1st January. 1.000. Give the necessary journal entry to record the above change. P.2006.Rs. they decide to share profits and losses in equal proportion. 1. 300 shares were reissued to X at Rs.Rs. the goodwill should be valued at three years. Out of these.50. forfeited 400 shares of Rs. 25 each (Rs. 1.000. Raja Ltd.70. The partnership deed provides that in the event of any change in profit sharing ratio.9.90. Q and R are partners sharing profits and losses in the ratio of 5:3:2.000 . 5 per share premium) and the first call of Rs.Rs.

to apply the balance of application money towards amount due on allotment.50 per share (due two months after allotment) On Second and Final Call Rs. 5.00.00.000 shares and make a pro-rata allotment of the 20.00 per share. 3 The directors totally reject applications for 2. 5. 2006.50 per share On First Call Rs.00 per share (due two months after First Call) Applications were received for 4. 25 each payable as under: On Application Rs. and to refund the amount remaining thereafter. Record journal entries in the books of the company to record these share capital transactions under each of the following circumstances: 1 The directors decide to allot 1. 7.000 shares on Jan. 2 The directors decide to make a pro-rata allotment of 25 per cent of the shares applied for to every applicant. On Allotment Rs.000 equity shares of Rs.000 shares to remaining applicants the excess of application money is to be adjusted towards allotment and calls to be made.000 shares in full to selected applicants and the applications for the remaining 3.11.00. 2006 and allotment was made on Feb 01.000 shares. accept full applications for 80.00. 7.00.000 shares were rejected outright. . 1. Janta Papers Limited invited applications for 1.

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Show the necessary journal entries . 13. 100 each at par.30 per share. (a) Alpha Ltd. 150 shares were re-issued at Rs.90. 2007.000 12% Debentures of Rs.60 per share to Mohit. The director of Poly Plastic Limited resolved that 200 equity shares of Rs. redeemable at par.000 12% Debentures of Rs 100 each at a premium of 5%.100 each be forfeited for non-payment of the IInd and final call of Rs. Out of these. Record the necessary entries at the time of redemption of debentures.12. . redeemable at a premium of 5%. 1.000 8% Debentures of Rs. has 5.000 on that date. (b) What journal entries should be made for the issue of debentures in the following cases: (i) X Limited issued 30. Assume that Debenture Redemption Reserve has a balance of Rs. 100 each due for redemption on March 31. (ii) Y Limited issued 50.

(4) .00. Rate of Gross Profit on cost 1/4.s Stock Turnover is 5 times. Current Liabilities Rs. Stock at the end is Rs. 20.000.000. Acid Test Ratio 0.40.75. Sales are Rs. 8. A company. 2. Calculate Current Ratio.000 more than that at the beginning.14.

(b) A Piece of machinery costing Rs. 5. 50. Prepare Cash Flow Statement. as on 31st December.000 depreciation has been charged to Plant and Machinery during the year 2007.12. 2007 were as follows Additional Information :(a) Rs.15. The Balance Sheets of Kewal Ltd.. .000 (book value Rs.000) was sold at 60% profit on book value. 2006 and 31st December.

(ii) Utilise remaining Rs.16. Shubh Limited has the following balances appearing in its Balance Sheet : The company decided to redeem its 9% Debentures at a premium of 10%. 12.00. (i) Utilise Rs. (3) sol. . 10.000 to provide for premium on redemption of 9% Debentures.00.. You are required to suggest the ways in which the company can utilise the securities premium amount.000 to write off underwriting commission.

(vii) Realisation expenses amounted to Rs. According to the management it should be maintained at 1:1. Interest received by a finance company is classified under which kind of activity while preparing a cash flow statement ? (1) sol Operating Activity 20. X Ltd. 1.000 proved bad (iii) Other assets realised .17. Following is the Balance Sheet of X and Y.000. 2. What are the two choices to do so? (1) Sol . 3.000 was paid only Rs.000 and the auctioneer’s commission amounted to Rs.000 (being 20% less that the book value). outflow or no flow of cash. increase equity and reduce Debt. Balance stock realised 50%. who share profits and losses in the ratio of 4:1. 30. 5. 2009 : The firm was dissolved on the above date and the following arrangements were decided upon : (i) X agreed to pay off his brother’s Loan (ii) Debtors of Rs.. No Flow 1 19. (vi) Y took over part of stock at Rs 4. has a Debt Equity Ratio at 3 : 1. as at 31st March.Investments 20% less. State whether cash deposited in bank will result in inflow.e.(1) sol.000. (v) Buildings were auctioned for Rs.000. 1 18. 5. Prepare : i) Realisation A/c ii) Partners’ Capital accounts iii) Bank A/c . The two choices to maintain Debt equity at 1:1 from 3:1 are : (i) To increase equity or (ii) To reduce Debt (iii) Both i. and goodwill at 60% (iv) One of the creditors for Rs.

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= 100 (ii) A current a/c 1200 B current a/c 1500 To p/l adj. (i) prepaid ins. (ii) Accrued int. 2700 . To O/ S salary = 5300 To p/l adj.Sol 21 Entry :- (i) P/A adj. = 2500 To P/L adj.

000 shares of Rs. and to refund the amount remaining thereafter. Rs. 100 each due for redemption on March 31. From 1st January.s Stock Turnover is 5 times.000.000 .000 equity shares of Rs. 2006 and Rs. Name any two factors affecting goodwill of a partnership firm. Sales are Rs.00 per share.00.Rs. 2006 and allotment was made on Feb 01.Rs. 20 called up) held by Asha. 20 per share at paid up value.2006. redeemable at par.000 shares.60 per share to Mohit. 7.70. Stock at the end is Rs. 100 each at par. 3 on allotment payable on 1st May. P. 2 on application payable on 1st March. Suniti. A company. Q and R are partners sharing profits and losses in the ratio of 5:3:2. 2006. The director of Poly Plastic Limited resolved that 200 equity shares of Rs. 1. X. 8. 2006. Give journal entries for forfeiture and reissue of shares.000 shares and make a pro-rata allotment of the 20. (1) 2. 2003 . 20. 15. What is the nature of Interest on Debentures? (1) 6. The profits and losses of the preceding five years are: Profits : 2001 .50 per share (due two months after allotment) On Second and Final Call Rs. 5. Z Rs. paid the amount of both the calls alongwith allotment. 12. 1. Rate of Gross Profit on cost 1/4. (4) 9. The partnership deed provides that in the event of any change in profit sharing ratio. to apply the balance of application money towards amount due on allotment. 2007. (4) . (4) 10.000. Current Liabilities Rs. (1) 5.00. who had 8. (4) 11.000 shares were rejected outright. 2004 .30 per share. Assume that Debenture Redemption Reserve has a balance of Rs. Y Rs.Time : 3 hrs. it was discovered that interest on drawings @ 5% had not been taken into consideration. Out of these.000 on that date. Y and Z are partners sharing profits and losses in the ratio of 3:2:1. Loss : 2005 . Show the necessary journal entries . 2 on first call payable on 1st August. Acid Test Ratio 0. Name the account which shows the classified summary of transactions of a Cash Book in a not-forprofit organisation. of Rs. (3) 8.600. 150 shares were re-issued at Rs.000 shares. Calculate Current Ratio. 1. accept full applications for 80. payable as follows : Rs. 2. 2006.75. 13. 60.000 12% Deb. 14. has 5.s fixed capital account. The drawings of the Partners were : X Rs. Record journal entries in the books of the company to record these share capital transactions under each of the following circumstances: 1 The directors decide to allot 1. (a) Alpha Ltd.Rs. On Allotment Rs. of Rs 100 each at a premium of 5%. State the exceptions to the creation of Debenture Redemption Reserve as per SEBI Guidelines. 300 shares were reissued to X at Rs. 10 per share (including Rs.000 .000 8% Debentures of Rs.50.000 shares on Jan.00 per share (due two months after First Call) Applications were received for 4.000. Record the necessary entries at the time of redemption of debentures.000. 12. Give the necessary journal entry to record the above change. 25 each (Rs. issued 1. Give two circumstances in which sacrificing ratio may be applied.00. 3 on second and final call payable on 1st December. Out of these. for non payment of allotment money of Rs.000 12% Deb.000.(1) 3. 70.000 shares in full to selected applicants and the applications for the remaining 3.Rs.90. All these shares were subscribed for and amounts duly received. 12. forfeited 400 shares of Rs. paid the amount of second and final call with the first call. who had 4.000.Give the necessary adjusting journal entry. 25 each payable as under: On Application Rs.000. profits.000 shares.000 more than that at the beginning. 2 The directors decide to make a pro-rata allotment of 25 per cent of the shares applied for to every applicant. 5. Janta Papers Limited invited applications for 1. they decide to share profits and losses in equal proportion.50 per share On First Call Rs. (3) 7. Akash Ltd. the goodwill should be valued at three years. redeemable at a premium of 5%. 1. 6 per share. List two items that may appear on the Credit side of a partner. Raja Ltd. Akriti. 1. Calculate the amount of interest on calls-in-advance payable to Akriti and Suniti. After the final accounts have been prepared. Rs. 5 per share premium) and the first call of Rs. purchase of the average of five years. 2006. (ii) Y Limited issued 50.00.00.100 each be forfeited for non-payment of the IInd and final call of Rs.40. (b) What journal entries should be made for the issue of debentures in the following cases: (i) X Limited issued 30. The Company adopts Table A. 10 each. 2002 Rs. 7.90.00.00.000 shares to remaining applicants the excess of application money is to be adjusted towards allotment and calls to be made. 1. (1) 4. 3 The directors totally reject applications for 2.

000 depreciation has been charged to Plant and Machinery during the year 2007. What are the two choices to do so? (1) 18. 2007 were as follows Additional Information :(a) Rs.000. Immediately after distributing Rs. 5. as at 31st March. The Balance Sheets of Kewal Ltd. (b) A Piece of machinery costing Rs.. (vi) Y took over part of stock at Rs 4.000 (being 20% less that the book value). Prepare : i) Realisation A/c ii) Partners’ Capital accounts iii) Bank A/c 21.000 proved bad (iii) Other assets realised . State whether cash deposited in bank will result in inflow. 2. has a Debt Equity Ratio at 3 : 1. According to the management it should be maintained at 1:1. 100000 and Rs. Shubh Limited has the following balances appearing in its Balance Sheet : The company decided to redeem its 9% Debentures at a premium of 10%. A and B are partners in a firm sharing profit and losses in the ratio of 4 : 5.Investments 20% less. 50. 36000 profits for the year ended 31st December.(1) 19. You are required to suggest the ways in which the company can utilise the securities premium amount. 5. Make journal entries relevant to adjustment.000) was sold at 60% profit on book value. It was discovered that in arriving at the profits for 1997. Their fixed capitals are Rs. 3.000 and the auctioneer’s commission amounted to Rs. 5. 1. . 2009 : The firm was dissolved on the above date and the following arrangements were decided upon : (i) X agreed to pay off his brother’s Loan (ii) Debtors of Rs. 1997. outflow or no flow of cash. 100.12.15. 16. who share profits and losses in the ratio of 4:1.. 50000 respectively. Following is the Balance Sheet of X and Y. 5300. Balance stock realised 50%. 2006 and 31st Dec. Prepare Cash Flow Statement.000 was paid only Rs. X Ltd. and goodwill at 60% (iv) One of the creditors for Rs.000. Interest received by a finance company is classified under which kind of activity while preparing a cash flow statement ? (1) 20. 30. the following items were ignored : (iii) Outstanding salary Rs. 2500 and (iii) Prepaid insurance Rs. (v) Buildings were auctioned for Rs.000 (book value Rs. (3) 17. as on 31st December. (ii )Accrued interest on investment Rs.000. (vii) Realisation expenses amounted to Rs..

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