Z. Ltd forfeited 1,000 equity shares of ₹ 10 each for the non-payment of the first call of ₹ 2 per share. The final call of ₹ 3 per share was yet to be made.
Calculate the maximum amount of discount at which these shares can be reissued.
The maximum amount of discount at which the shares can be re-issued is (3+2 = 5 x 1000 = 5000) ₹ 5,000 (i.e. the credit balance in Share Forfeiture Account)
P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were ₹ 2,00,000 and ₹ 3,00,000 respectively. The partnership deed provided for interest on capital @ 12% per annum. For the year ended 31st March, 2016, the profits of the firm were distributed without providing interest on capital. Pass necessary adjustment entry to rectify the error.
A and B were partners in a firm sharing profits and losses in the ratio of 5:3. They admitted C as a new partner. The new profit sharing ratio between A, B and C was 3 : 2 : 3. A surrendered th of his share in favour of C. Calculate B's sacrifice.
B's Sacrifice = Old Share - New Share
B's Sacrifice =
B's Sacrifice =
Ganesh Ltd. is registered with an authorised capital of ₹10,00,00,000 divided into equity shares of ₹ 10 each. Subscribed and fully paid up capital of the company was ₹ 6,00,00,000. For providing employment to the local youth for the development of the tribal areas of Arunachal Pradesh the company decided to Set up a hydro power plants there. The company also decided to Open skill development centres in Itnaagar, pasighat and Tawang. To meet its new financial requirements, the company decided to issue 1,00,000 equity shares of ₹ 10 each and 1,00,000, 9% debentures of ₹ 100 each. The debentures were redeemable after five years at par. The issue of shares and debentures was fully subscribed. A shareholder holding 2,000 shares failed to pay the final call of ₹ 2 per share.
Show the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the companies Act, 2013; also identify any two values that the company wishes to propagate.
Distinguish between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on the basis of credit balance.
Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3: 5. Their fixed capitals were ₹4,00,000 and ₹6,00,000 respectively. On 1.1.2016, Tina was admitted as a new partner for share in the profits. Tina acquired her share of profit from Neha. Tina brought ₹ 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tina's admission and the new profit sharing ratio of Madhu, Neha and Tina. Also, pass necessary journal entry for the treatment of goodwill on Tina's admission considering that Tina did not bring her share of goodwill premium in cash.
Kavi, Ravi, Kumar and Guru were partners in a firm sharing profits in the ratio of 3:2:2:1. On 1.2.2017, Guru retired and the new profit sharing ratio decided between Kavi, Ravi and Kumar was 3:1:1. On Guru’s retirement the goodwill of the firm was valued at ₹ 3,60,000.
Showing your working notes clearly, pass necessary journal entry in the books of the firm for the treatment of goodwill on Guru’s retirement.
Ashok, Babu and Chetan were partners in a firm sharing profits in the ratio of 4:3:3. The firm closes its books on 31st March every year. On 31st December, 2016 Ashok died. The partnership deed provided that on the death of a partner his executors will be entitled for the following:
(i) Balance in his capital account. On 1.4.2016, there was a balance of ₹ 90,000 in Ashok’s Capital Account.
(ii) Interest on Capital @12% per annum
(iii) His share in the profits of the firm in the year of his death will be calculated on the basis of rate of net profit on sales of the previous year, which was 25%. The sales of the firm till 31st December, 2016 were ₹ 4,00,000.
(iv) His share in the goodwill of the firm. The goodwill of the firm on Ashok’s death was valued at 4,50,000.
The partnership deed also provided for the following deduction from the amount payable to the executor of the decreased partner:
(i) His drawings in the year of his death, Ashok’s drawings till 31.12.2016 were ₹ 15,000.
(ii) Interest on drawings @12 % per annum which was calculated on ₹ 1,500.
The accountant of the firm prepared Ashok's Capital Account as prepared by the firm accountant is given below
You are required to complete Ashoka's Capital Account.
Durga and Naresh were partners in a firm. They wanted to admit five more members in the firm. List any two categories of individuals other than minors who cannot be admitted by them.
The following persons other than Minor, cannot be admitted to a Partnership
(a) Persons disqualified by any law
(b) Persons of Unsound mind
X Ltd invited applications for issuing 500, 12 % debentures of ₹ 100 each at a discount of 5%. These debentures were redeemable after these years at par. Applications for 600 debentures were received. Pro-rata allotment was made to all the applications.
Pass necessary journal entries for the issue of debentures assuming that the whole amount was payable with application.