Brain Train Academy

Topic:- Admission & Issue of Share

Max Marks 45 Duration 100 minutes
Q1.Find New Profit-sharing Ratio:(3 Marks)
(i) A and B are partners sharing profits and losses in the ratio of 3 : 2. They admit C for 1/5th share in the
profit. C acquires 1/5th of his share from A and 4/5th share from B.
(ii) X, Y and Z are partners in the ratio of 3 : 2 : 1. W joins the firm as a new partner for 1/6th share in profits. Z would
retain his original share.

Q2.Ram, Mohan and Sohan sharing profits and losses in the ratio of 4 : 3: 2, admitted Rohan as a partner for 1/5th
share in the firm w.e.f. 1st April, 2022. An extract of their Balance Sheet as at 31st March, 2022 is:

Liabilities Amount Assets Amount

Workmen Compensation fund 90,000
Pass the Journal entries for Workmen Compensation Reserve on the admission of Rohan in following alternative
cases:

Case 1. If workmen compensation claim is Rs 45,000.

Case 2. If workmen compensation claim is Rs 99,000.

Q3. SSS Ltd. forfeited 1,000 Equity Shares of Rs 100 each for the non-payment of first call Rs 20 per share and second and final
call of Rs 25 per share. State: ( 3 Marks )

(i)Can these shares be reissued?

(ii) If yes, state the minimum amount at which these shares can be reissued.

(iii) If these shares were reissued at Rs 50 per share fully paid-up, what will be the amount of Capital Reserve?

Q4.Ajay and Vijay are partners in a firm profit sharing ratio 3:2.They admitted Sanjay into partnership with 1/4th share
in profits. Sanjay brings Rs 30,000 for capital and require amount of premium in cash. The goodwill of the firm is
valued at Rs 20,000. The new profit sharing ratio is 2:2:1. Ajay and Vijay withdraw their share of Goodwill. Pass
Journal Entries.

Q5. Akash Ltd. is registered with an authorised capital of Rs 8,00,00,000 divided into equity shares of Rs 10 each.
Subscribed and fully paid-up share capital of the company was Rs 4,00,00,000. For providing employment to the local
youth and for the development of the rural areas of the Jammu and Kashmir State, the company decided to set up a
food processing unit in Anantnag district. The company also decided to open skill development centres in Ladakh,
Srinagar and Punch. To meet its new financial requirements, the company decided to issue 1,00,000 equity shares of
Rs 10 each . The issue of equity shares and was fully subscribed. A shareholder holding 1,000 shares failed to pay
the final call of Rs 2 per share.

Present the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the Companies
Act, 2013. ( 4 Marks )

Q6DN Ltd. issued 50,000 shares of Rs10 each payable as Rs 2 per share on application, Rs 3 on allotment and Rs 5
on first and final call. Applications were received for 70,000 shares. It was decided that:

(a) to refuse allotment to the applicants for 10,000 shares,

(b) to allot 20,000 shares to Mohan who had applied for similar number, and

(c) to allot the remaining shares on pro rata basis.

Mohan failed to pay the allotment money and Sohan who belonged to Category 'C and was allotted 3,000 shares paid
the call money with allotment.

Contact :- 8375994540
Address:- Wz 112 ,Apna Bazaar Naraina Village, Near Doctor Water (Mata Mandir)
Calculate the amount received on allotment. ( 4 Marks )

Q7. Z Ltd. purchased machinery from K Ltd. Z Ltd. paid K Ltd. as follows: ( 4 Marks )

(i) By issuing 5,000 equity shares of Rs 10 each at a premium of 30%.

(ii) By issuing 1,000, 8% preference share of Rs 100 each at a discount of 10%.

(iii) Balance by giving a promissory note of Rs 48,000 payable after two months.

Pass necessary Journal entries for the purchase of machinery and payment to K Ltd. in the books of Z Ltd.

Q8. On 31st March 2019 the balance sheet of A and B who were sharing profits in the ratio of 3:2 was as follows: ( 6 Marks )

Liabilities Amount Assets Amount

Crediors 30,000 Bank 20,000
Investment Fluctuation Fund 12,000 Debtors 85,000
General Reserve 25,000 Stock 1,30,000
Provision for Bad debts 5,000 Investment 60,000
A Capital A/c 1,60,000 Furniture 77,000
B Capital A/c 1,40,000
Total 3,67,000 Total 3,67,000
On 1st April, 2019, they decided to admit C as a new partner for 1/5th share in the profits on the following terms:

(i) C brought Rs 1,00,000 as his capital and Rs 50,000 as his share of premium for goodwill.

(ii) Outstanding salaries of € 2,000 be provided for.

(iii) The market value of investments was Rs 50,000.

(iv) A debtor whose dues of Rs 18,000 were written off as bad debts paid Rs 12,000 in full settlement.

Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm.

Q9.Show the forfeiture and reissue entries under of the following cases: ( 8 Marks )

(i) XY Ltd. Forfeited 300 Shares of Rs 10 each ,Rs 8 called up held by Mr Gulshan for non payment of Rs 3 per
share . These shares were reissued to Mr Khan for Rs 10 per share as fully paid up.
(ii) CB Ltd. Forfeited 400 Shares of Rs 10 each ,fully called up held by Mr Sumit for non payment of Rs 4 per share .
These shares were reissued to Mr Kabir for Rs 12 per share as fully paid up.
(iii) Day Night Ltd. Forfeited 250 Shares of Rs 10 each ,Fully called up held by Mr Motu for non payment of Rs 3 per
share . These shares were reissued to Mr Patlu for Rs 8 per share as fully paid up.

Q10. Himalaya Company Limited issued for public subscription 1,20,000 equity shares of 7 10 each at a premium for ™ 2 per
share payable as under:

On Application Rs 3 per share

On Allotment (including premium) Rs 5 per share

On First call Rs 2 per share

On Second and Final call Rs 2 per share

Applications were received for 1,60,000 shares. Allotment was made on pro rata basis. Excess money on application were
adjusted against the amount due on allotment.

Rohan to whom 4,800 shares were allotted, failed to pay for the two calls. These shares were subsequently forfeited after the
second call was made. All the shares forfeited were reissued to Teena as fully paid at Rs7 per share.

Record Journal entries.

Contact :- 8375994540
Address:- Wz 112 ,Apna Bazaar Naraina Village, Near Doctor Water (Mata Mandir)