(i) To refuse allotment to applicants for 1,200 debentures. |
(ii) To give full allotment to applicants for 400 debentures. |
(iii) To allot the remaining debentures on pro-rata basis among other applicants. |
(iv) To utilise excess application money in part payment of allotment money. |
(i) The company issued 10,000 shares to its promoters as the remuneration of the services rendered by them at par. |
(ii) Company also issued shares at 10% premium to Mr. Rajesh for the purchase of assets of Rs. 3,30,000 from him. |
(i) | Income from subscription shown in income and expenditure account = Rs. 78,000 |
(ii) | Subscription received in advance as on 31st March, 2018 = Rs. 12,000 |
(iii) | Subscription received in advance as on 31st March, 2017 = Rs. 18,000 |
(iv) | Subscription outstanding as on 31st March, 2018 = Rs. 24,000 |
(v) | Subscription outstanding as on 31st March, 2017 = Rs. 12,000 |
(i) Transfer 10% of distributable profits to reserve fund. |
(ii) Interest on capitals @ 6% p.a. |
(iii) Interest on drawings @ 6% p.a. Drawings being X Rs. 40,000 and Y Rs. 30,000. The partners decided to provide clean drinking water and build toilets in a nearby school. |
Liabilities | Amt (Rs.) | Assets | Amt (Rs.) | |
Creditors | 10,200 | Cash in Hand | 680 | |
General Reserve | 10,880 | Cash at Bank | 17,000 | |
Capital A/cs | Furniture | 30,600 | ||
Mahesh | 34,000 | Stock | 13,600 | |
Mukesh | 17,000 | Debtors | 20,400 | |
Raju | 17,000 | 68,000 | Bills Receivable | 6,800 |
89,080 | 89,080 |
(i) The capital to his credit at the date of last balance sheet. |
(ii) Interest on capital @ 10% p.a. |
(iii) Share of goodwill on the basis of three years' purchase of the average profits of last three years. |
(iv) Share of profit in the year of death, till the date of his death, on the basis of last year's profit. |
Particulars | Amt (Rs.) | Particulars | Amt (Rs.) | |
To Sundry Assets A/c | 60,000 | By Sundry Liabilities A/c | ||
To Bank A/c (Trade creditors) | 14,250 | Trade Creditors | 15,000 | |
To Bank A/c (Loan from Mr.s Y) | 4,750 | Loan from Mr.s Y | 5,000 | 20,000 |
To Bank A/c (Expenses) | 500 | By Bank A/c (Sundry assets realised) | 55,000 | |
By ...... | .... | |||
79,500 | 79,500 |
Particulars | Y (Rs.) | Z (Rs.) | Particulars | Y (Rs.) | Z (Rs.) |
To Balance b/d | .... | 5,000 | By Balance b/d | 50,000 | ..... |
To Profit and loss A/c (Loss) | 3,000 | 1,000 | By Bank A/c (Cash brought in) | ...... | 7,125 |
To Realisation A/c | .... | ..... | |||
To Bank A/c | .... | ..... | |||
50,000 | 7,125 | 50,000 | 7,125 |
Particulars | Amt (Rs.) | Particulars | Amt (Rs.) |
To Balance b/d | 1,000 | By...... | .... |
To Realisation A/c (Assets realised) | 55,000 | By....... | .... |
To Z's Capital A/c (Cash brought in) | 7,125 | By....... | .... |
By Y's Capital A/c (Final payment) | 43,625 | ||
63,125 | 63,125 |
Receipts | Amt (Rs.) | Payments | Amt (Rs.) | |
To Balance b/d | 8,100 | By Printing | 1,350 | |
To Interest | By Advertisements | 2,538 | ||
2017 | 1,800 | |||
2018 | 2,700 | 4,500 | By Staff Salary | 23,400 |
To Tution Fees | By Furniture Purchased | 12,060 | ||
2018 | 18,000 | |||
2019 | 1,800 | 19,800 | By Rent | 9,360 |
To Entrance Fees 2018 | 7,560 | By Miscellaneous Expenses | 1,980 | |
To Subscription | By Balance c/d | 24,732 | ||
2017 | 5,400 | |||
2018 | 20,700 | |||
2019 | 7,020 | 33,120 | ||
To Miscellaneous Income | 2,340 | |||
75,420 | 75,420 |
Expenditure | Amt (Rs.) | Income | Amt (Rs.) |
To Printing | 1,440 | By Tution Fees | 19,800 |
To Advertisements | 2,700 | By Subscription | 20,700 |
To Rent | 10,800 | By Miscellaneous Income | 2,340 |
To Staff Salary | 21,600 | By Interest | 2,880 |
To Miscellaneous Expenses | 1,980 | ||
To Surplus | 7,200 | ||
45,720 | 45,720 |
Investments | Rs. 72,000 |
Furniture | Rs. 18,000 |
Books | Rs. 9,000 |
Liabilities | Amt (Rs.) | Assets | Amt (Rs.) | ||
Creditors | 1,50,000 | Cash at Bank | 1,20,000 | ||
Bills Payable | 80,000 | Debtors | 2,00,000 | ||
Outstanding Rent | 20,000 | (-) Provision for Doubtful Debts | (20,000) | 1,80,000 | |
Capital A/cs | Stock | 50,000 | |||
Vishvesh | 3,00,000 | Plant and Machinery | 3,40,000 | ||
Yogesh | 1,50,000 | 4,50,000 | Prepaid Expenses | 10,000 | |
7,00,000 | 7,00,000 |
(i) Nishant will bring in Rs. 2,00,000 as capital and the necessary amount for goodwill. |
(ii) The new profit sharing ratio among Vishvesh, Yogesh and Nishant will be 5 : 3 : 2. |
(iii) The amount of goodwill is to be based on Nishaot's share in profits and capital contributed by him. |
(iv) Stock to be depreciated by 10%. |
(v) A provision for doubtful debts is to be only Rs. 5,000. |
(vi) Plant and machinery are to be depreciated by 5%. |
Liabilities | Amt (Rs.) | Assets | Amt (Rs.) | ||
Creditors | 15,600 | Cash | 16,000 | ||
Reserve | 6,000 | Debtors | 20,000 | ||
Capital A/cs | (-) Provision for Doubtful Debts | (400) | 19,600 | ||
A | 90,000 | Stock | 18,000 | ||
B | 60,000 | Machinery | 48,000 | ||
C | 30,000 | 1,80,000 | Buildings | 1,00,000 | |
2,01,600 | 2,01,600 |
(i) Buildings to be appreciated by 10%. |
(ii) Provision for doubtful debts to be increased to 5% of debtors. |
(iii) Machinery to be depreciated by 15%. |
(iv) Goodwill of the firm be valued at Rs. 36,000 and be adjusted into the capital accounts of A and C who will share profits in future in the ratio of 3 : 1. |
(v) A provision to be made for outstanding repairs bill of Rs. 3,000. |
(vi) Included in the value of creditors is Rs. 1,800 for an outstanding legal claim, which is not likely to arise. |
(vii) Out to the insurance premium paid Rs. 2,000 is for the next year. The amount was debited to profit and loss account. |
(viii) The partners decide to fix the capital of the new firm as Rs. 1,20,000 in the profit sharing ratio. |
(ix) B to be paid Rs. 9,000 in cash and balance to be transferred to his loan account. |
(i) On application Rs. 2 |
(ii) On allotment Rs. 5 (including premium) |
(iii) Balance on the first and final call. |
(i) 15,000 equity shares of Rs. 10 per share were issued at par. |
(ii) 12% preference shares of Rs. 1,00,000 were redeemed at a premium of 10% |
(i) Contingent liabilities and commitments |
(ii) Fixed deposits from the public |
(iii) Advance recoverable in cash |
(iv) Forfeited shares account |
(i) Declaration of final dividend. |
(ii) Issue of new shares for cash. |
(iii) Conversion of debentures into equity shares |
(iv) Redemption of debentures for cash. |
Particulars | 31st March, 2016 Amt (Rs.) | 31st March, 2017 Amt (Rs.) | |
I. | Income | ||
Revenue from Operations (Net sales) | 40,00,000 | 40,00,000 | |
Other Income | 40,000 | 44,000 | |
Total | 40,40,000 | 40,44,000 | |
II. | Expenses | ||
Purchases of Stock-in-trade | 26,00,000 | 28,00,000 | |
Changes in Inventories of Stock-in-trade | 2,00,000 | 1,92,000 | |
Employees Benefit Expenses | 3,20,000 | 3,92,000 | |
Other Expenses | 4,70,000 | 3,60,000 | |
Total | 35,90,000 | 37,44,000 | |
III. | Profit (I - II) | 4,50,000 | 3,00,000 |
Additional Information | ||
31st March, 2016 | 31st March, 2017 | |
Other Expenses Include | Amt (Rs.) | Amt (Rs.) |
Provision for Tax | 4,50,000 | 3,00,000 |
Particulars | 31st March, 2017 (Rs.) | 31st March, 2018 (Rs.) | Particulars | 31st March, 2017 (Rs.) | 31st March, 2018 (Rs.) |
Capital | 1,50,000 | 1,60,000 | Cash | 4,000 | 5,000 |
Bank Loan | 20,000 | 10,000 | Debtors | 35,000 | 40,000 |
Mr. Rajesh's Loan | 5,000 | 20,000 | Stock | 20,000 | 25,000 |
Creditors | 30,000 | 42,000 | Land | 25,000 | 36,000 |
Depreciation Provision | 10,000 | 15,000 | Building | 50,000 | 55,000 |
Machinery | 81,000 | 86,000 | |||
2,15,000 | 2,47,000 | 2,15,000 | 2,47,000 |
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