6 Marks Question

Question 16 Marks

Balance Sheet (Extract)
Of XYZEE ltd as at 31.03.2024 (as per schedule -III of Companies Act 2013)
	Note no.	31.03.2023	31.03.2024
I- Equity & Liabilities

1. Shareholders Funds
a). Share Capital	1	44,90,000	54,90,000
b). Reserves and Surplus	2	2,00,000	3,60,000

Note no.1 (For year ending 31.03.2023)
Share Capital
1). Authorised Share Capital
8,00,000 Equity Shares of Rs. 10 each		80,00,000

2). Issued Share Capital
4,50,000 Equity Shares of Rs. 10 each		45,00,000

3). Called Up Share Capital
a). Called Up and Fully paid
Rs.10 per share on 4,45,000 Equity Shares	44,50,000

b). Called Up and not Fully paid
Rs. 10 per share on 5,000 Equity shares	50,000
Less not paid: Rs. 2 per share on 5,000 Equity shares	-10,000	44,90,000

Note no.1 (For year ending 31.03.2024)
Share Capital
1). Authorised Share Capital
8,00,000 Equity Shares of Rs. 10 each		80,00,000

2). Issued Share Capital
5,50,000 Equity Shares of Rs. 10 each		55,00,000
(Out of these 40,000 shares were issued to the vendors as consideration for Capital asset purchased)
3). Called Up Share Capital
a). Called Up and Fully paid
Rs.10 per share on 5,45,000 Equity Shares	54,50,000

b). Called Up and not Fully paid
Rs. 10 per share on 5,000 Equity shares	50,000
Less not paid: Rs. 2 per share on 5,000 Equity shares	-10,000	54,90,000

Note no. 2- Reserves and Surplus
	31.03.2023	31.03.2024
Capital Reserve	Nil	40,000
Securities Premium	2,00,000	3,20,000

During the year the company took over the business of Quipa Ltd. with Assets of Rs. 12,00,000/- and Liabilities of Rs.7,30,000. Purchase consideration was paid in cash and by issue of equity shares at par. The entire transaction resulted in Capital reserve of Rs. 40,000.
Q.1. What is the total face value of Shares issued for Cash by the Company during the year 2023-24.
(A) Rs. 10,00,000$\quad$$\quad$(B) Rs. 6,00,000$\quad$$\quad$
(C) Rs. 9,50,000$\quad$$\quad$(D) Rs. 11,20,000
Q.2. Shares issued for cash during the year were issued at _________. (assuming they were issued together)?
(A) Rs. 10$\quad$$\quad$(B) Rs. 8
(C) Rs. 12$\quad$$\quad$(D) Rs. 11.20
Q.3. On April 1, 2024, the company forfeited all the defaulting shares. What amount will appear in the Share Forfeiture account at the time of forfeiture?
(A) Rs.40,000$\quad$$\quad$(B) Rs. 50,000
(C) Rs. 10,000$\quad$$\quad$(D) Rs. 60,000
Q.4. What will be the number of Issued shares, as on April 1,2024, after the forfeiture of these shares?
(A) 5,45,000 shares.$\quad$$\quad$(B) 5,50,000 shares.
(C) 4,45,000 shares.$\quad$$\quad$(D) 5,05,000 shares.
Q.5. If 2,000 of the forfeited shares were issued at Rs. 14 per share, what will be the amount of securities premium and Capital reserve respectively as on April 1, 2024?
(A) Rs, 3,20,000, Rs.40,000$\quad$$\quad$(B) Rs.3,28,000, Rs.56,000
(C) Rs.3,28,000, Rs.80,000$\quad$$\quad$(D) Rs.3,20,000, Rs.80,000
Q.6. What will be the amount in the "Called up and Fully paid" subhead after the reissue of these 2000 shares?
(A) Rs.54,50,000$\quad$$\quad$(B) Rs.55,00,000
(C) Rs.54,70,000$\quad$$\quad$(D) Rs.54,80,000

Answer

1. - A
2. - C
3. - A
4. - B
5. - B
6. - C

View full question & answer→

Question 26 Marks

Sunny and Bobby were partners in a firm sharing profits and losses in the ratio of 3:2, their balance sheet as at 31st March, 2012:

The firm was dissolved on 31st March, 2012. The assets were realized and the liabilities were paid as under:
(a) Sunny promised to pay off Mrs. Sunny's Loan
(b) Bobby took away stock at 20% discount and 80% of the investments at 10% discount.
(c) Dharam, a debtor of Rs. 60,000 had to pay the amount due 2 months after the date of dissolution. He was allowed a discount of 9% p.a. for making. immediate payment.
(d) Creditors were paid Rs.1,75,000 in full settlement of their claim.
(e) 90% of Other fixed assets realised Rs. 1,98,000 and remaining were realised at discount of 15%.
(f) Balance of investments were sold at 75% value and Fixed Deposits were realised at110%.
(g) There was an old furniture which has been written off completely from the books, Bobby took away the same for Rs. 41,000 against his loan and balance to him was given in cash.
(h) Realisation expenses Rs. 20,000 were paid by Sunny and Bobby equally on behalf of the firm.
You are required to prepare Realisation A/c

View full question & answer→

Question 36 Marks

Varun and Vivek were partners in a firm sharing profits in the ratio of 3:2. The balance in their capital and current accounts as on 1^st April, 2022 were as under:

Particulars	Varun(₹)	Vivek(₹)
Capital accounts	3,00,000 (Cr.)	2,00,000 (Cr.)
Current accounts	1,00,000 (Cr.)	28,000 (Dr)

The partnership deed provided that Varun was to be paid a salary of ₹ 5,000 p.m. whereas Vivek was to get a commission of ₹ 30,000 for the year. Interest on capital was to be allowed @ 8% p.a. whereas interest on drawings was to be charged @ 6% p.a. The drawings of Varun were ₹ 3,000 at the beginning of each quarter while Vivek withdrew ₹ 30,000 on 1^st September, 2022. The net profit of the firm for the year, 2022-23, before making the above adjustments was ₹ 1,20,000.
Prepare Profit and Loss Appropriation Account and Partners' Capital and Current Accounts.

Answer

Profit & Loss appropriation A/c Of Varun and Vivek For the year ended on March 31, 2023
Dr			Cr
Particulars	Amount	Particulars	Amount
To Partners Current A/c		By Profit & Loss A/c - Net Profit	1,20,000
Varun	78,508	By Interest on Drawings
Vivek	42,992	Varun	450
		Vivek	1,050
	1,21,500		1,21,500

• As divisible profits are insufficient, so available profits are distributed in ratio of appropriations i.e 42:23

Partner's capital A/c
Dr				Cr
Particulars	Varun	Vivek	Particulars	Varun	Vivek
To Balance c/d	3,00,000	2,00,000	By Balance b/d	3,00,000	2,00,000
	3,00,000	2,00,000		3,00,000	2,00,000

Partner's Current A/c
Dr				Cr
Particulars	Varun	Vivek	Particulars	Varun	Vivek
To Balance b/d		28,000	By Balance b/d	1,00,000
To Drawings	12,000	30,000	By Profit and Loss Appropriation A/c	78,508	42,992
To Interest on Drawings	450	1,050	By Balance c/d		16,058
To Balance c/d	1,66,058
	1,78,508	59,050		1,78,508	59,050

View full question & answer→

Question 46 Marks

Meghna, Mehak and Mandeep were partners in a firm whose Balance Sheet as on 31st March, 2023 was as under:

Balance Sheet
*Liabilities*	Amount	*Assets*	Amount
Creditors	28,000	Cash	27,000
General Reserve	7,500	Debtors	20,000
Capitals:		Stock	28,000
Meghna 20,000		Furniture	5,000
Mehak 14,500
Mandeep 10,000	44,500
	80,000		80,000

Mehak retired on this date under following terms:
(i) To reduce stock and furniture by 5% and 10% respectively.
(ii) To provide for doubtful debts at 10% on debtors.
(iii) Goodwill was valued at '12,000.
(iv) Creditors of Rs.8,000 were settled at Rs.7,100.
(v) Mehak should be paid off and the entire sum payable to Mehak shall be brought in by Meghna and Mandeep in such a way that their capitals should be in their new profit-sharing ratio and a balance of Rs.25,000 is maintained in the cash account.
Prepare Revaluation Account and partners' capital accounts of the new firm.

View full question & answer→

Question 56 Marks

a) Pass the necessary journal entries for 'Issue of Debenture' for the following:
i. Arman Ltd. issued 750, 12% Debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 5%.
ii. Sohan Ltd. issued 800, 9% Debentures of ₹ 100 each at a premium of 20 per debenture redeemable at a premium of ₹ 10 per Debenture.
b) X Ltd. obtained a loan of ₹ 4,00,000 from IDBI Bank. The company issued 5,000 9%.
Debentures of ₹100 each as a collateral security for the same. Show how these items will be presented in the Balance Sheet of the company.

Answer

Journal
Date	Particulars			Debit	Credit
A (i)	Bank A/c		Dr	67,500
		To Debenture Application and allotment A/c			67,500
	(Being applications received)
	Debenture Application and allotment A/c		Dr	67,500
	Loss on issue of Debntures A/c		Dr	11,250
		To 12% Debentures A/c			75,000
		To Premium redemption of debentures A/c			3,750
	(Being Debentures issued at discount redeemable at premium)
A(ii)	Bank A/c		Dr	96,000
		To Debenture Application and allotment A/c			96,000
	(Being applications received)
	Debenture Application and allotment A/c		Dr	96,000
	Loss on issue of Debentures A/c		Dr	8,000
		To 12% Debentures A/c			80,000
		To Securities Premium A/c			16,000
		To Premium on Redemption A/c			8,000
	(Being Debentures issued at discount redeemable at premium)

B) Balance sheet Extract of X Ltd

	Particulars	Note no.	Rs
1.	Equity & Liabilities
	Non current liabilities
	Long term borrowings	1	4,00,000

Notes to accounts

1.	Long term borrowings
	Loan from IDBI
	(Secured by issue of 5000, 9% debentures of Rs.100 each as collateral security)	4,00,000

View full question & answer→

Question 66 Marks

K.N. Ltd. invited applications for issuing 6,00,000 equity shares of ₹ 10 each at a premium of ₹ 3 per share. The amount was payable as follows: On Application and Allotment - ₹ 3 per share; On First Call -₹ 4 per share; On Second and Final Call - Balance (including premium). The issue was oversubscribed by 1,50,000 shares. Applications for 50,000 shares were rejected and the application money was refunded. Shares were allotted to the remaining applicants as follows:
Category I: Those who had applied for 4,00,000 shares were allotted 3,00,000 shares on pro - rata basis.
Category II: The remaining applicants were allotted the remaining shares.
Excess application money received with applications was adjusted towards sums due on first call. Rakesh to whom 6,000 shares were allotted (out of Category 1) failed to pay the first call money. His shares were forfeited. The forfeited shares were re-issued at ₹13 per share fully paid up after the second call. Pass necessary journal entries for the above transactions in the books of K.N. Ltd.

Answer

Journal
Date	Particulars			Debit	Debit
	Bank A		Dr	22,50,000
		To Share Application and allotment A/c			22,50,000
	(Being Application and allotment money received)
	Share Application and allotment A/c		Dr	22,50,000
		To Equity Share Capital A/c			18,00,000
		To Share First call A/c			3,00,000
		To Bank A/c			1,50,000
	(Being application and allotment money adjusted and excess refunded)
	Share 1st Call A/c		Dr	24,00,000
		To Equity Share Capital A/c			24,00,000
	(Being call money due)
	Bank A/c		Dr	20,82,000
	Calls In arrears A/c		Dr	18,000
		To Share 1st Call A/c			21,00,000
	(Being call money received except on 6,000 shares)
	Share Capital A/c		Dr	42,000
		To Shares Forfeited A/c			24,000
		To Calls in arrears			18,000
	(Being 6000 shares forfeited)
	Share 2nd Call A/c		Dr	35,64,000
		To Share Capital A/c			17,82,000
		To Securities Premium A/c			17,82,000
	(Being 2nd Call money due)
	Bank A/c		Dr	35,64,000
		To Share 2nd Call A/c			35,64,000
	(Being 2nd Call money received)
	Bank A/c		Dr	78,000
		To Share Capital A/c			60,000
		To Securities Premium A/c			18,000
	(Being forfeited shares reissued)
	Shares Forfeited A/c		Dr	24,000
		To Capital Reserve A/c			24,000
	(Being balance transferred to capital reserve)

View full question & answer→

Accountancy 6 Marks Question

Test yourself on this topic