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Financial Statements of a Company — Accountancy STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceAccountancyFinancial Statements of a Company1 Mark
Question
Assertion :
While preparing Notes to Accounts on Share Capital, Calls-in-Arrears is shown by way of deduction from the Subscribed Capital (Subscribed but not fully paid-up).
Reason (R) :
As per the Companies Act, 2013, Part I of me Schedule III, Calls in Arrears is the other current asset of the company.
Choose the Correct Option from the following:
✓

Answer

Only Assertion is correct.

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Assertion (A) :
When partners Capitals are fixed, Asset taken over by the partner will be shown in the debit side of his capita account instead of his current account.
Reason (R) :
Fixed Tangible Asset taken over by the partner will be considered as withdrawal of capital, in the absence of any other information.
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Assertion (A): Forfeited shares may be reissued by the company at a discount also.
Reason (R): Amount of discount on reissue of forfeited shares cannot exceed the amount forfeited on reissued shares.
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Assertion (A) :
At the time of admission of a new partner, if partners have decided not to distribute the General Reserve (given in balance sheet), instead of crediting the amount of General Reserve to the partners directly, an adjustment entry is to be recorded.
Reason (R) :
Adjustment entry is recorded to determine the amount of compensation to be paid to the sacrificing partners.
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Assertion [A] :
A company has postponed paying suppliers, so that the period-end cash balance appears higher in the books of the company. This is an example of window dressing.
Reason [R] :
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Assertion [A] :
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Reason (R) :
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Assertion
At the time of admission of a new partner: 
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Reason (R): 
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Assertion (A): Issued Share Capital & Subscribed Share Capital are always different.
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Assertion (A): A company may forfeit the shares for non-payment of calls amount depend upon the Articles of Association of the company.
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Assertion (A) :
A new partner can be admitted, if it is agreed in the partnership deed but in the absence of partnership deed, a new partner can be admitted only if all the partners agree to admit that partner.
Reason (R) :
Section 31 of the Indian Partnership Act, 1932 will be applicable.
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Assertion (A):
If a company receives subscription less than 90% of the shares offered for subscription, in such a case, company cannot issue shares and amount received on application will be refunded to the applicants.
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As per the Companies Act, 2013, to issue shares to the public, a company must receive 90% or above subscription of the shares offered for subscription.
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