Accountancy: 2014: CBSE: [All India]: Set – I

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  • Q1

    Give the meaning of 'Reconstitution of a partnership firm'.

    Marks:1
    Answer:

    'Reconstitution of a partnership firm’ refers to any change in the existing partnership agreement. In this case, the old or existing partnership deed terminates and a new partnership deed comes into existence.

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  • Q2

    D Ltd. invited applications for issuing 10,00,000 equity shares of INR10 each. The public applied for 8,55,000 shares. Can the company proceed for the allotment of shares? Give reason in support of your answer.

    Marks:1
    Answer:

    No, the shares cannot be allotted because subscribed shares are less than 90% (minimum subscription) of issued Capital of 10,00,000 shares. Atleast 9,00,000 shares should be subscribed, before the company can allot shares.

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  • Q3

    X, Y and Z were partners sharing profits in the ratio of 1 2  :  3 10  and  1 5 MathType@MTEF@5@5@+= feaahqart1ev3aaatCvAUfKttLearuGu1bxzLbIrVjxyKLwyUbqedm vETj2BSbWexLMBbXgBcf2CPn2qVrwzqf2zLnharyWqVvNCPvMCG4uz 3bqegqvATv2CG4uz3bIuV1wyUbqee0evGueE0jxyaibaieYtf9irVe eu0dXdh9vqqj=hEeeu0xXdbba9frFj0=OqFfea0dXdd9vqaq=JfrVk FHe9pgea0dXdar=Jb9hs0dXdbPYxe9vr0=vr0=vqpWqaaeaabiGaci aacaqabeaadaabauaaaOqaamaalaaabaGaeeymaedabaGaeeOmaida aiabbccaGiabbQda6iabbccaGmaalaaabaGaee4mamdabaGaeeymae JaeeimaadaaiabbccaGiabbggaHjabb6gaUjabbsgaKjabbccaGmaa laaabaGaeeymaedabaGaeeynaudaaaaa@4C8D@ ; . X retired from the firm. Calculate the gaining ratio of the remaining partners.

    Marks:1
    Answer:

    Profit sharing ratio of X, Y and Z is = 1 2 : 3 10 : 1 5 On simplifying, the ratio will be 5:3:2 As X retires thus new ratio of Y and Z will be 3:2 Gaining ratio = New ratio - Old ratio Y's gain         =  3 5 - 3 10 = 3 5 Z's gain         =  2 5 - 2 10 = 2 5 Thus Gaining Ratio of Y and Z is = 3:2 MathType@MTEF@5@5@+= feaahqart1ev3aaatCvAUfKttLearuGu1bxzLbIrVjxyKLwyUbqedm vETj2BSbWexLMBbXgBcf2CPn2qVrwzqf2zLnharyWqVvNCPvMCG4uz 3bqegqvATv2CG4uz3bIuV1wyUbqee0evGueE0jxyaibaieYtf9irVe eu0dXdh9vqqj=hEeeu0xXdbba9frFj0=OqFfea0dXdd9vqaq=JfrVk FHe9pgea0dXdar=Jb9hs0dXdbPYxe9vr0=vr0=vqpWqaaeaabiGaci aacaqabeaadaabauaaaOabaeqabaGaeeiuaaLaeeOCaiNaee4Ba8Ma eeOzayMaeeyAaKMaeeiDaqNaeeiiaaIaee4CamNaeeiAaGMaeeyyae MaeeOCaiNaeeyAaKMaeeOBa4Maee4zaCMaeeiiaaIaeeOCaiNaeeyy aeMaeeiDaqNaeeyAaKMaee4Ba8MaeeiiaaIaee4Ba8MaeeOzayMaee iiaaIaeeiwaGLaeeilaWIaeeiiaaIaeeywaKLaeeiiaaIaeeyyaeMa eeOBa4MaeeizaqMaeeiiaaIaeeOwaOLaeeiiaaIaeeyAaKMaee4Cam NaeeiiaaIaeeypa0ZaaSaaaeaacqqGXaqmaeaacqqGYaGmaaGaeeOo aOZaaSaaaeaacqqGZaWmaeaacqqGXaqmcqqGWaamaaGaeeOoaOZaaS aaaeaacqqGXaqmaeaacqqG1aqnaaaabaGaee4ta8KaeeOBa4Maeeii aaIaee4CamNaeeyAaKMaeeyBa0MaeeiCaaNaeeiBaWMaeeyAaKMaee OzayMaeeyEaKNaeeyAaKMaeeOBa4Maee4zaCMaeeilaWIaeeiiaaIa eeiDaqNaeeiAaGMaeeyzauMaeeiiaaIaeeOCaiNaeeyyaeMaeeiDaq NaeeyAaKMaee4Ba8MaeeiiaaIaee4DaCNaeeyAaKMaeeiBaWMaeeiB aWMaeeiiaaIaeeOyaiMaeeyzauMaeeiiaaIaeeynauJaeeOoaOJaee 4mamJaeeOoaOJaeeOmaidabaGaeeyqaeKaee4CamNaeeiiaaIaeeiw aGLaeeiiaaIaeeOCaiNaeeyzauMaeeiDaqNaeeyAaKMaeeOCaiNaee yzauMaee4CamNaeeiiaaIaeeiDaqNaeeiAaGMaeeyDauNaee4CamNa eeiiaaIaeeOBa4MaeeyzauMaee4DaCNaeeiiaaIaeeOCaiNaeeyyae MaeeiDaqNaeeyAaKMaee4Ba8MaeeiiaaIaee4Ba8MaeeOzayMaeeii aaIaeeywaKLaeeiiaaIaeeyyaeMaeeOBa4MaeeizaqMaeeiiaaIaee OwaOLaeeiiaaIaee4DaCNaeeyAaKMaeeiBaWMaeeiBaWMaeeiiaaIa eeOyaiMaeeyzauMaeeiiaaIaee4mamJaeeOoaOJaeeOmaiJaeeOla4 IaeeiiaacabaGaee4raCKaeeyyaeMaeeyAaKMaeeOBa4MaeeyAaKMa eeOBa4Maee4zaCMaeeiiaaIaeeOCaiNaeeyyaeMaeeiDaqNaeeyAaK Maee4Ba8MaeeiiaaIaeeypa0JaeeiiaaIaeeOta4KaeeyzauMaee4D aCNaeeiiaaIaeeOCaiNaeeyyaeMaeeiDaqNaeeyAaKMaee4Ba8Maee iiaaIaeeyla0IaeeiiaaIaee4ta8KaeeiBaWMaeeizaqMaeeiiaaIa eeOCaiNaeeyyaeMaeeiDaqNaeeyAaKMaee4Ba8gabaGaeeywaKLaee 4jaCIaee4CamNaeeiiaaIaee4zaCMaeeyyaeMaeeyAaKMaeeOBa4Ma eeiiaaIaeeiiaaIaeeiiaaIaeeiiaaIaeeiiaaIaeeiiaaIaeeiiaa IaeeiiaaIaeeiiaaIaeeypa0JaeeiiaaYaaSaaaeaacqqGZaWmaeaa cqqG1aqnaaGaaGPaVlaaykW7cqqGTaqlcaaMc8UaaGPaVpaalaaaba Gaee4mamdabaGaeeymaeJaeeimaadaaiaaykW7caaMc8Uaeeypa0Ja aGPaVpaalaaabaGaee4mamdabaGaeeynaudaaaqaaiabbQfaAjabbE caNiabbohaZjabbccaGiabbEgaNjabbggaHjabbMgaPjabb6gaUjab bccaGiabbccaGiabbccaGiabbccaGiabbccaGiabbccaGiabbccaGi abbccaGiabbccaGiabb2da9iabbccaGmaalaaabaGaeeOmaidabaGa eeynaudaaiaaykW7caaMc8Uaeeyla0IaaGPaVlaaykW7daWcaaqaai abbkdaYaqaaiabbgdaXiabbcdaWaaacaaMc8UaaGPaVlabb2da9iaa ykW7daWcaaqaaiabbkdaYaqaaiabbwda1aaaaeaacqqGubavcqqGOb aAcqqG1bqDcqqGZbWCcqqGGaaicqqGhbWrcqqGHbqycqqGPbqAcqqG UbGBcqqGPbqAcqqGUbGBcqqGNbWzcqqGGaaicqqGsbGucqqGHbqycq qG0baDcqqGPbqAcqqGVbWBcqqGGaaicqqGVbWBcqqGMbGzcqqGGaai cqqGzbqwcqqGGaaicqqGHbqycqqGUbGBcqqGKbazcqqGGaaicqqGAb GwcqqGGaaicqqGPbqAcqqGZbWCcqqGGaaicqqG9aqpcqqGGaaicqqG ZaWmcqqG6aGocqqGYaGmaaaa@8576@

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  • Q4

    State the rights acquired by a newly admitted partner.

    Marks:1
    Answer:

    The new partner, on his/her admission, acquires following two main rights:
    (i) Right to share the future profits of the firm.
    (ii) Right to share the assets of the firm.

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  • Q5

    Distinguish between 'Dissolution of partnership' and 'Dissolution of partnership firm' on the basis of Court's intervention.

    Marks:1
    Answer:

    Dissolution of partnership is always voluntarily carried out by the partners, while dissolution of firm can be carried out either voluntarily by the partners or compulsorily by order of court.

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  • Q6

    A Ltd. forfeited 100 equity shares of 10 each issued at a premium of 20% for the non-payment of final call of
    5 including premium.

    State the maximum amount of discount at which these shares can be re-issued.

    Marks:1
    Answer:

    Maximum amount of discount that can be allowed at the time of reissue is the amount received from the original shareholder before forfeiture of shares i.e. 7.

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  • Q7

    What is meant by issue of debentures as collateral security?

    Marks:1
    Answer:

    Whenever a company takes loan from bank or any financial institution it may issue its debentures as secondary security which is in addition to the principal security. Such an issue of debentures is known as issue of debentures as collateral security.

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  • Q8

    Hemant and Nishant were partners in a firm sharing profits in the ratio of 3 : 2.

    Their capitals were 1,60,000 and 1,00,000 respectively.

    They admitted Somesh on 1st April, 2013 as a new partner for 1/5 share in the future profits. Somesh brought 1,20,000 as his capital.

    Calculate the value of goodwill of the firm and record necessary journal entries for the above transactions on Somesh's admission.

    Marks:3
    Answer:

    Somesh is admitted into partnership for 1/5th share in future profits. He contributes 1,20,000 for her share of capital.

    Taking Somesh’s capital as the base, we can calculate the firm’s capital.

    Firm’s capital = New partners’ capital x reciprocal of new partner’s share i.e., = 1,20,000×5 = 6,00,000

    However, the total capital as at that date is 3,80,000 (i.e. 1,60,000 + 1,00,000 + 1,20,000).

    Thus, Hidden Goodwill = (6,00,000 – 3,80,000) = 2,20,000

    Somesh’s share in goodwill = 1/5th of 2,20,000 = 44,000

     

    Journal

    Date

    Particulars

    L.F.

    Dr.

    Cr.

     

    Cash A/c

    Dr.

     

    1,20,000

     

     

    To Somesh’s Capital A/c

     

     

     

    1,20,000

     

    (Capital bought in by Somesh reorded)

     

     

     

     

     

     

     

     

     

     

     

    Somesh’s Capital A/c

    Dr.

     

    44,000

     

     

    To Hemant’s Capital A/c

     

     

     

    26,400

     

    To Nishant’s Capital A/c

     

     

     

    17,600

     

    (Somesh’s share of goodwill is adjusted through capital accounts)

     

     

     

     

                 

     

    Note: it is assumed that the old partners are sacrificing in their old profit share because no additional information is given in the question.

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  • Q9

    Tata Ltd. issued 5,000, 10% Debentures of 100 each on 1stApril, 2012. The issue was fully subscribed. According to the terms of issue, interest on debentures is payable half-yearly on 30th September and 31st March and tax deducted at source is 10%.

    Pass the necessary journal entries related to the debenture interest for the half-yearly ending on 31st March, 2013 and transfer of interest on debentures to Statement of Profit and Loss.

    Marks:3
    Answer:

     

    Tata Ltd.

    Journal Entries

    Date

    Particulars

    L.F.

    Dr.

    Cr.

    2012 Sep. 30

    Debenture Interest A/c

    Dr.

     

    25,000

     

     

    To Income Tax Payable A/c

     

     

    2,500

     

    To Debentureholders' A/c

     

     

    22,500

     

    (Amount of interest due and TDS deducted for 6 months)

     

     

     

     

     

     

     

     

    Sep. 30

    Debentureholders' A/c

    Dr.

     

    22,500

     

     

    To Bank A/c

     

     

    22,500

     

    (Amount of interest for 6 months paid to debentureholders)

     

     

     

    Sep. 30

    Income Tax Payable A/c

    Dr.

     

    2,500

     

     

    To Bank A/c

     

     

    2,500

     

    (Amount of tax on interest paid)

     

     

     

    2012 Mar. 31

    Debenture Interest A/c

    Dr.

     

    25,000

     

     

    To Income Tax Payable

     

     

    2,500

     

    To Debentureholders' A/c

     

     

    22,500

     

    (Amount of interest due and TDS deducted for 6 months)

     

     

     

    Mar.31

    Debentureholders' A/c

    Dr.

     

    22,500

     

     

    To Bank A/c

     

     

    22,500

     

    (Amount of Interest paid to debentureholders)

     

     

     

    March.31

    Income Tax Payable A/c

    Dr.

     

    2,500

     

     

    To Bank A/c

     

     

    2,500

     

    (Amount of tax on interest paid)

     

     

     

     

    Statement of Profit & Loss

    Dr.

     

    50,000

     

     

    To Interest on Debentures A/c

     

     

    50,000

     

    (Interest or debentures transferred to Statement of Profit and Loss)

     

     

     

    View Answer
  • Q10

    Pass necessary journal entries in the following cases :

    (i) Sunrise Ltd. converted 500, 9% debentures of 100 each issued at a discount of 10% into equity shares of 100 each issued at a premium of 25%.

    (ii) Britannia Ltd. redeemed 3,000, 12% debentures of
    100 each which were issued at a discount of 10 per debenture by converting them into equity shares of 100 each 90 paid up.

    Marks:3
    Answer:

    (i)

    Sunrise Ltd.

    Journal

    Date

    Particulars

    L.F.

    Dr.

    Cr.

     

    9% Debenture A/c

    Dr.

     

    50,000

     

     

    To Debentureholders

     

     

    45,000

     

    To Discount on Issue of Debentures A/c

     

     

    5,000

     

    (Amount due to 500 debentureholders at the time of conversion)

     

     

     

     

     

     

     

     

     

    Debentureholders’ A/c

    Dr.

     

    45,000

     

     

    To Equity Share Capital A/c

     

     

    36,000

     

    To Securities Premium Reserve A/c

     

     

    9,000

     

    (360 equity shares of 100 each issued at premium of 25)

     

     

     

     

    Working Note:

    Calculation of number of shares to be issued:

    Net amount payable/Issue price of share

    = 45,000 / 125 = 360 shares

     

    (ii)

    Britannia Ltd.

    Journal

    Date

    Particulars

    L.F.

    Dr.

    Cr.

     

    12% Debentures A/c

    Dr.

     

    3,00,000

     

     

    To Debentureholders’ A/c

     

     

    2,70,000

     

    To Discount on Issue of Debentures A/c

       

    30,000

     

    (Amount due to 3,000 debentureholders at the time of conversion)

     

     

     

     

     

     

     

     

     

    Debentureholders’ A/c

    Dr.

     

    2,70,000

     

     

    Discount on Issue of Shares A/c

    Dr.

     

    30,000

     

     

    To Equity Share Capital A/c

     

     

    3,00,000

     

    (3,000 equity shares of 100 each issued at 90 each paid)

     

     

     

                 

    Working Note:

    Calculation of number of shares to be issued:

    Net amount payable/Issue price of share

    = 2,70,000 / 90 = 3,000 shares

    View Answer