State the provisions of the Companies Act, 2013 for the creation of 'Debenture Redemption Reserve'
As per Section 71 (4) of the Companies Act, 2013 and Companies (Share Capital and Debentures) Rules, 2014, every company issuing Debentures is required to create Debenture Redemption Reserve of at least an amount equal to 25% of the value of debentures issued at the time of redemption of debentures.
Vikas, Vishal and Vaibhav were partners in a firm sharing profits in the ratio of 2:2:1. The firm closes its books 31st March every year. On 31-12-2015 Vaibhav died. On that date his Capital account showed a credit balance of ₹ 3,80,000 and Goodwill of the firm was valued at ₹ 1,20,000. There was a debit balance of ₹ 50,000 in the profit and loss account. Vaibhav's share of profit in the year of his death was to be calculated on the basis of the average profit of last five years. The average profit of last five years was ₹ 75,000. Pass necessary journal entries in the books of the firm on Vaibhav's death.
A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. They admitted D as a new partner for 1/8th share in the profits, which he acquired 1/16th from B and 1/16th from C. Calculate the new profits sharing ratio of A,B, C and D.
Profit Sharing Ratio of A, B and C = 3:2:1
State any three circumstances other than (i) admission of a new partner; (ii) retirement of a partner and (iii) death of a partner, when need for valuation of goodwill of a firm may arise.
Valuation of goodwill also arises in the following cases:
(i) When the partnership firm is sold to some other concern on going concern basis.
(ii) When two firms amalgamate that is merger or acquisition of two businesses.
(iii) When the existing partners in the firm jointly agree to change the profit sharing ratio between them.
P and Q were partners in a firm sharing profits in the ratio of 5:3. On 1-4-2014 they admitted R as a new partner for 1/8th share in the profits with a guaranteed profit of ` 75,000. The new profit sharing ratio between P and Q will remain the same but they agreed to bear any deficiency on account of guarantee to R in the ratio 3:2. The profit of the firm for the year ended 31-3-2015 was ₹ 4,00,000.
Prepare Profit and Loss Appropriation Account of P, Q and R for the year ended 31-3-2015.
Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm on the basis of 'Economic Relationship'.
On the basis of Economic Relationship, the difference is given below:
In Dissolution of Partnership, Economic relationship continues and changes between the partners while in Dissolution of Firm, Economic Relationship ends amongst all the partners.
On 1-1-2016 the first call of `Rs 3 per share became due on 1,00,000 equity shares issued by Kamini Ltd. Karan a holder of 500 shares did not pay the first call money. Arjun a shareholder holding 1000 shares paid the second and final call of Rs 5 per share along with the first call. Pass the necessary journal entry for the amount received by opening 'Calls-in-arrears' and 'Calls-in-advance' account in the books of the company.
What is the maximum number of partners that a partnership firm can have? Name the Act that provides for the maximum number of partners in a partnership firm.
A partnership firm can have minimum two and maximum 50 partners as per the new Companies Act, 2013 and vide Rule 10 of the companies (Miscellaneous) Rules, 2014.
KTR Ltd., issued 365, 9% Debentures of ₹ 1,000 each on 4-3-2016. Pass necessary journal entries for the issue of debentures in the following situations:
(a) When debentures were issued at par redeemable at a premium of 10%.
(b) When debentures were issued at 6% discount redeemable at 5% premium.
Nusrat and Sonu were partners in a firm sharing profits in the ratio of 3:2. During the year ended 31-3-2015 Nusrat had withdrawn Rs 15,000. Interest on her drawings amounted to Rs 300. Pass necessary journal entry for charging interest on drawing assuming that the capitals of the partners were fixed.