New Horizon School
Assignment No.-10
(2017-18)
Sub:- Accountancy
Class -XII
TOPIC : ACCOUNTING FOR SHARE CAPITAL
Q1) X Ltd. Was formed with a capital of Rs.10,00,000 divided into shares of Rs.10 each. It offered 90% shares. 40% amount was payable on application, 20% on allotment and balance on final call. The applicants paid Rs.3,60,000 on application and Rs.1,69,000 on allotment. Final call had not been made as yet. Calculate the following from the above mentioned details: a) Authorised capital b) Issued capital c) Called up capital d) Paid up capital e) Calls in arrears
Q2) Krishna Ltd. Issued 25,000 shares to the public payable as Rs.4 on application, Rs.2 on allotment and Rs.4 on first and final call. Applications for Rs.50,000 shares were received on which the allotment was made as under:
Applicants of 10,000 shares: 10,000 shares
Applicants of 25,000 shares: 15,000 shares
Applicants of 15,000 shares: Nil
Calculate the excess application money to be adjusted towards allotment and pass the necessary journal entries assuming that the amounts due were received.
Q3) Heights Ltd. Offered 20,000 shares of Rs.10 each, payable as Rs.3 on application, Rs.5 on allotment and balance on call. Applications were received for 35,000 shares and pro rata allotment was made to the applicants of 30,000 shares. All the shareholders paid the amount due on allotment except Hari, who was allotted 5,000 shares. Calculate the allotment money not paid by Hari and total amount received by the Co. on allotment.
Q4) Meena Ltd. Issued 60,000 shares of Rs.10 each at a premium of Rs.2 per share payable as Rs.3 on application, Rs.5 (including premium) on allotment and the balance on first and final call. Applications were received for 1,02,000 shares. The Directors resolved to allot as follows:
A- Applicants of 60,000 shares: 30,000 shares
B- Applicants of 40,000 shares: 30,000 shares
C- Applicants of 2,000 shares: Nil Nikhil, who had applied for 1,000 shares in category A and Vish who was allotted 600 shares in category B failed to pay the allotment money. Calculate the amount received on allotment.
Q5) Starplus ltd. Offered for public subscription 1,50,000 shares of the value of Rs.100 each at a discount of 10% payable per share as follows: On application: Rs.20
On allotment: Rs.30 On first & final call: Rs.40 The Co. received applications for 3,00,000 shares. The allotment was done as under:
a) Applicants of 30,000 shares were allotted 10,000 shares b) Applicants of 1,40,000 shares were allotted 80,000 shares c) Remaining applicants were allotted 60,000 shares .
After adjusting excesss money in allotment, the money was returned. Harit, a shareholder who had applied for 7,000 shares of group ( b) failed to pay allotment and call money. Roshan, another shareholder who was allotted 6,000 shares paid the call money along with the allotment. Roshan also belonged to group (b).
Pass necessary journal entries to record the above transactions in the books of the Co.
Q6) A Co. issued 5,000 shares of Rs.10 each at a premium of Rs.2. The amount is payable as: On application: Rs.4 On allotment: Rs.5 (including premium) On first & final call: Rs.3 Hari was allotted 100 shares. Give journal entry relating to forfeiture of shares in the following cases: a) If Hari failed to pay the allotment money and his shares were forfeited before the call. b) If Hari failed to pay the allotment money and on his subsequent failure to pay the call, his shares were forfeited. c) If Hari failed to pay the first and final call and his shares were forfeited.
Q7) X Ltd. Forfeited 200 shares of Rs.10 each issued at a premium of Rs.2 per share(payable at the time of allotment) On which first call of Rs.3 per share was not received. The second and final call of Rs.2 per share was not yet called by the Co. Pass the necessary journal entries regarding forfeiture and reissue of shares in each of the following cases: a) If 80 of these shares were reissued at Rs.8 paid up for Rs.6 per share b) If 80 of these shares were reissued for Rs.7 per share, fully called up. c) If 80 of these shares were reissued at Rs.8 paid up for Rs.9 per share d) If 80 of these shares were reissued for Rs.9 per share, fully called up e) If 80 of these shares were reissued for Rs.11 per share
Q8) Shiva Ltd. Invited applications for issuing 2,00,000 equity shares of Rs.100 each at a premium of Rs.60 per share. The amount was payable as follows: On application: Rs.30 (including Rs.10 premium) On allotment: Rs.70 ( including Rs.50 premium) On first & final call: Balance Applications for 1,90,000 shares were received. Shares were allotted to all the applicants and the Co. received all money due on allotment except Jain who had been allotted 1,000 shares and his shares were immediately forfeited.
Afterwards, first & final call was made. Gupta did not pay the first & final call on his 2,000 shares. His shares were also forfeited. 50% of the forfeited shares of both Jain & Gupta were reissued for Rs.90 per share fully paid up. Pass the necessary journal entries in the books of Shiva Ltd.
Q9) On 1st April, 2012, Khanna Ltd. Was formed with an authorized capital of Rs.20,00,000 divided into 2,00,000 equity shares of Rs.10 each. The Co. issued prospectus inviting applications for 1,80,000 equity shares. The Co. received applications for 1,70,000 equity shares. During the first year, Rs.8 per share were called. Shikha holding 2,000 shares and Poonam holding 4,000 shares did not pay the first call of Rs.2 per share. Poonam’s shares were forfeited after the first call and later on 3,000 of the forfeited shares were reissued at Rs.6 per share, Rs.8 called up. Show the following:
a) ‘share capital’ in the Balance Sheet of the Co. as per revised schedule VI Part I of the Companies Act,1956
b) Also prepare ‘Notes to Accounts’
Q10) X Ltd. has its share capital divided into shares of Rs.10 each. On 1st April, 2014, it granted 10,000 employees’ stock options at Rs.40, when the market price was Rs.130. The options were to be exercised between 15th March, 2015 and 31st March, 2015. The employees’ exercised their options for 9,000 shares only; the remaining options lapsed. The Co. closes its books on 31st March every year.
New Horizon School
Assignment No.-9
(2017-18)
Sub:- Accountancy
Class -XII
TOPIC – DISSOLUTION OF A FIRM
1. Distinguish between Dissolution of a firm and Dissolution of a Partnership.
2. Differentiate between Revaluation A/c and Realisation A/c.
3. Discuss the provisions of sec 48 of Indian Partnership Act, 1932, which deals with settlement of accounts at the time of dissolution of firm.
4. A and B are partners in a firm sharing profits in the ratio of 3:2. Mrs. A has given a loan of Rs.20,000 to the firm and the firm also has taken a loan of Rs.10,000 from B. The firm was dissolved and its assets were realized for Rs.25,000. State the order of payment of Mrs. A’s loan and B’s loan with reason, if there were no other creditors of the firm.
5. Journalise the following transactions:
a. Realisation expenses paid by partners, Ankit and Pulkit are Rs.3,600 and Rs.2,400 respectively. However, these expenses are borne by the firm.
b. Harish, a partner was allowed a commission of Rs.6,000 to carry out dissolution work of the firm. Actual expenses paid by him amounted to Rs.9,000
c. Kamal, a partner is to bear all expenses of realization for which he is allowed a commission of Rs.6,000. Actual realization expenses were Rs.5,000 and were paid by the firm.
d. A debtor whose debt of Rs.9,300 was written off as bad in the books paid Rs.7,500 in full settlement.
e. A creditor of Rs. 4,000 omitted from books was also paid.
f. 50% of the creditors were paid Rs.4,000 less in full settlement and the remaining creditors were paid full amount. (Book values of creditors given in Balance Sheet just before dissolution= Rs.1,00,000
g. Creditors agreed to take over debtors in full settlement of their claim. (Book values given in Balance Sheet just before dissolution: Creditors = Rs.1,00,000; Debtors= Rs.90,000)
h. Half of the creditors accepted an unrecorded machinery and cash of Rs.3,000 in full settlement of their claims. Remaining creditors were paid out at a discount of 10%. (Book value of creditors given in Balance Sheet just before dissolution= Rs.1,00,000)
i. Creditors accepted Plant & Machinery valued at Rs.1,50,000 and paid cash to the firm Rs.40,000. (Book values of creditors given in Balance Sheet just before dissolution= Rs. 1,10,000
j. There were total debtors of Rs.76,000. A provision of bad and doubtful debts also stood in the books at Rs.6,000. Rs.12,000 debtors proved bad and rest paid the amount due.
k. Loan to Rohit, a partner was adjusted through his capital Account, Rs.15,000
6. The book value of assets (other than cash and bank) transferred to realization account is Rs.1,00,000. 50% of the assets are taken over by a partner, Atul, at a discount of 20%. 40% of the remaining assets are sold at a profit of 30% on cost. 5% of the balance being obsolete, realized nothing and remaining assets are handed over to a creditor, in full settlement of his claim. Pass the journal entries for the realization of the assets.
7. A, B and C are partners sharing profits and losses in the ratio of 2 : 1 : 1. They decided to dissolve their firm on 1st April, 2015. Complete the Realisation Account, Partners’ Capital Accounts and Bank Account from the information given below:
REALISATION ACCOUNT
Particulars / / Particulars /To Sundry Assets (Transfer):
Goodwill 30,000
Land and Building 80,000
Plant and Machinery 56,000
Motor Car 54,000
Debtors ---
To Bank A/c (Creditors)
To Bank A/c (Expenses) / 2,68,000
---
2,000 / By Creditors
By Bank A/c – Assets Realised:
Goodwill 20,000
Land and Building 1,00,000
Plant and Machinery 50,000
Motor Car 28,000
Debtors ---
By Loss on Realisation t/f to:
A’s Capital A/c ---
B’s Capital A/c ---
C’s Capital A/c --- / 50,000
---
---
3,20,000 / 3,20,000
PARTNER’S CAPITAL ACCOUNTS
Particulars / A/ B
/ C
/ Particulars / A
/ B
/ C
To Realisation A/c
-Loss
To Bank A/c
(Final Payment) / ---
--- / ---
--- / ---
--- / By Balance b/d
(Bal. Fig.) / --- / --- / ---
--- / --- / --- / --- / --- / ---
BANK ACCOUNT
Particulars / / Particulars /To Balance b/d
To --- / 2,000 / By ---
By ---
By A’s Capital A/c - Final Payment
By B’s Capital A/c - Final Payment
By C’s Capital A/c - Final Payment / ---
---
56,000
68,000
48,000
--- / ---
8. X, Y and Z were partners sharing profits in the ratio of 2:2:1. The Balance Sheet on 31st March, 2010, when they dissolved the firm was as follows:
It was agreed that :
Liabilities / Amount / Assets / AmountBank Loan / 11,500 / Other Sundry Assets / 1,17,000
Sundry Creditors / 16,000 / Furniture / 11,000
Profit and Loss A/c / 20,000 / Closing Stock / 17,800
Contingency Reserve / 5,000 / Debtors 1,24,200
Less:provision1,200 / 1,23,000
Capitals: / Cash / 13,200
X 1,27,500 / Advertisement Suspense / 20,000
Y 1,10,000 / Preliminary Expenses / 5,000
Z 17,000 / 2,54,500
3,07,000 / 3,07,000
(i) X to take over furniture at Rs.8,000 and debtors amounting to Rs.1,20,000 at
Rs.1,17,200 and the creditors of Rs.16,000 were to be paid by him at this figure.
(ii) Y is to take over all stock for Rs.17,000 and some sundry assets at Rs.72,000
(being 10% less than the book value)
(iii) Z to take over remaining sundry assets at 80% of the book value and assume the
responsibility of discharge of loan together with accrued interest of Rs.2,300.
(iv) The expenses of realization were Rs.2,700. The remaining debtors were sold to a
debt collecting agency at 50% of the value.
Prepare Realisation Account in the books of the firm.
New Horizon School
Assignment No.-8
(2017-18)
Sub:- Accountancy
Class -XII
TOPIC – RETIREMENT OF A PARTNER
1. Does the retirement of a partner mean reconstitution of a firm?
2. X, Y and Z are partners sharing profits and losses in the ratio of 3:2:1. Y retires and gifted ½ of his share in favour of X and Sells remaining share toX and Z in the ratio of 1:2. Find out gaining ratio and new ratio.
3. Arjun, Bhim and Nakul are partners sharing profits and losses in the ratio of 14:5:6 respectively. Bhim retires and surrenders His 5/25th share in favour of Arjun. The goodwill of the firm is valued at 2 years purchase of super profits based on average profits of last three years. The profits of the last three years are Rs.50,000; Rs.55,000; and Rs.60,000 respectively. The normal profits for the similar firm are Rs.30,000. Goodwill already appears in the books of the firm at Rs.75,000. The profit for the first year after Bhim’s retirement was Rs.1,00,000. Pass the necessary journal entries.
4. Naresh, David and Aslam are partners sharing profits in the ratio of 5:3:7. Naresh gave a notice to retire from the firm. David and Aslam decided to share future profit in the ratio of 2:3. The adjusted capital accounts of David and Aslam show a balance of Rs.33,000 and Rs.70,500 respectively. The total amount to be paid to Naresh is Rs.90,500. This amount is to be paid by David and Aslam in such a way that their capitals become proportionate to their new profit sharing ratio. Pass the necessary journal entries.
5. A,B and C were in partnership sharing profits and losses in the ratio of 4:3:1. It is provided under the partnership deed that, on the death of any partner, firm’s goodwill is to be valued on the basis of such partner’s share of 2 years’ profits calculated on the average of 4 completed years’ profit immediately preceding the year of death less 20%. B died on 1st March 2013.