Accountancy: 2016: CBSE: [Delhi]: Set – II

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  • Q1

    A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. They admitted D as a new partner for 1/8th share in the profits, which he acquired 1/16th from B and 1/16th from C.

    Calculate the new profit sharing ratio of A, B, C and D.

    Marks:1
    Answer:

    D's Share = 1 8 (1/16fromB&C)  A's share (retained) =  3 6 New share = B =  2 6 - 1 16 = 13 48 C =  1 6 - 1 16 = 5 48 Hence new profit sharing ratio of A, B, C and D 3 6 : 13 48 : 5 48 : 1 8 = 24:13:5:6 MathType@MTEF@5@5@+= feaahqart1ev3aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbwvMCKf MBHbqeduuDJXwAKbYu51MyVXgaruWqVvNCPvMCG4uz3bqefqvATv2C G4uz3bIuV1wyUbqeeuuDJXwAKbsr4rNCHbGeaGqiVv0Je9sqqrpepC 0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yq aqpepae9pg0FirpepeKkFr0xfr=xfr=xb9adbaqaaeaacaGaaiaabe qaamaaeaqbaaGceiqabiaaamaaymqaaiaabseacaqGNaGaae4Caiaa bccacaqGtbGaaeiAaiaabggacaqGYbGaaeyzaiaabccacaqG9aWaaS aaaeaacaqGXaaabaGaaeioaaaacaaMc8UaaGPaVlaabIcacaqGXaGa ae4laiaabgdacaqG2aGaaGPaVlaaykW7caqGMbGaaeOCaiaab+gaca qGTbGaaGPaVlaaykW7caqGcbGaaGPaVlaabAcacaaMb8Uaae4qaiaa bMcaaeaacaqGGaGaaeyqaiaabEcacaqGZbGaaeiiaiaabohacaqGOb GaaeyyaiaabkhacaqGLbGaaeiiaiaabIcacaqGYbGaaeyzaiaabsha caqGHbGaaeyAaiaab6gacaqGLbGaaeizaiaabMcacaqGGaGaaeypai aabccadaWcaaqaaiaabodaaeaacaqG2aaaaaqaaiaab6eacaqGLbGa ae4DaiaabccacaqGZbGaaeiAaiaabggacaqGYbGaaeyzaiaabccaca qG9aaabaGaaeOqaiaabccacaqG9aGaaeiiamaalaaabaGaaeOmaaqa aiaabAdaaaGaaeylamaalaaabaGaaeymaaqaaiaabgdacaqG2aaaai aab2dadaWcaaqaaiaabgdacaqGZaaabaGaaeinaiaabIdaaaaabaGa ae4qaiaabccacaqG9aGaaeiiamaalaaabaGaaeymaaqaaiaabAdaaa GaaeylamaalaaabaGaaeymaaqaaiaabgdacaqG2aaaaiaab2dadaWc aaqaaiaabwdaaeaacaqG0aGaaeioaaaaaeaacaqGibGaaeyzaiaab6 gacaqGJbGaaeyzaiaabccacaqGUbGaaeyzaiaabEhacaqGGaGaaeiC aiaabkhacaqGVbGaaeOzaiaabMgacaqG0bGaaeiiaiaabohacaqGOb GaaeyyaiaabkhacaqGPbGaaeOBaiaabEgacaqGGaGaaeOCaiaabgga caqG0bGaaeyAaiaab+gacaqGGaGaae4BaiaabAgacaqGGaGaaeyqai aabYcacaqGGaGaaeOqaiaabYcacaqGGaGaae4qaiaabccacaqGHbGa aeOBaiaabsgacaqGGaGaaeiraaqaaiaab2dacaqGGaWaaSaaaeaaca qGZaaabaGaaeOnaaaacaqG6aWaaSaaaeaacaqGXaGaae4maaqaaiaa bsdacaqG4aaaaiaabQdadaWcaaqaaiaabwdaaeaacaqG0aGaaeioaa aacaqG6aWaaSaaaeaacaqGXaaabaGaaeioaaaaaeaacaqG9aGaaeii aiaabkdacaqG0aGaaeOoaiaabgdacaqGZaGaaeOoaiaabwdacaqG6a GaaeOnaaaaaa@CCED@

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  • Q2

    Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of Partnership Firm’ on the basis of ‘Economic Relationship’.

    Marks:1
    Answer:

    Basis

    Dissolution of partnership

    Dissolution of partnership firm

    Economic relationship

    Economic relationship continues among the partners.

    Economic relationship comes to an end among the partners.

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  • Q3

    State the provisions of the Companies Act, 2013 for the creation of ‘Debenture Redemption Reserve’.

    Marks:1
    Answer:

    As per Section 71(4) of the Companies Act 2013, every company issuing debentures is required to create Debenture Redemption Reserve of an amount that is atleast equal to 25% of the total nominal value of debentures that are redeemed by it.

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  • Q4

    What is the maximum number of partners that a partnership firm can have? Name the Act that provides for the maximum number of partners in a partnership firm.

    Marks:1
    Answer:

    The maximum number of partners the partnership firm can have is 50. The limit has been given as per the Rule (10) or the Companies (Misc.) Rules Act 2014.

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  • Q5

    Nusrat and Sonu were partners in a firm sharing profits in the ratio of 3:2. During the ended 31/03/2015. Nusrat had withdrawn ₹15,000. Interest on her drawings amounted to ₹300.

    Pass necessary journal entry for charging interest on drawing assuming that the capitals of the partners were fixed.

    Marks:1
    Answer:

    Journal Entries

    Particulars

     

    Nusrat’s Current A/c

    Dr.

     

    300

     

     To Interest on Drawings A/c

     

     

    300

    (Interest on drawings charged to Nusrat’s current account)

     

     

     

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  • Q6

    On 01/01/2016 the first call of ₹3 per share became due on 1,00,000 equity shares issued by Kamini Ltd. Karan a holder of 500 shares did not pay the first call money. Arjun a shareholder holding 1000 shares paid the second and final call of ₹5 per share along with the first call.

    Pass the necessary journal entries for the amount received by opening ‘Calls-in-arrears’ and ‘Calls-in-advance’ account in the books of the company.

    Marks:1
    Answer:

    Journal Entries

    Date

    Particulars

     

    2016

    Share First Call A/c

    Dr.

     

    3,00,000

     

    Jan 1

    To Share Capital A/c

     

     

    3,00,000

     

    (First call money due on 1,00,000 shares @ ₹3 )

     

     

     

     

    Bank A/c

    Dr.

     

    3,03,500

     

     

    Calls-in-arrears

    Dr.

     

    1,500

     

     

    To Share first call A/c

     

     

    3,00,000

     

    To Calls in advance A/c

     

     

    5,000

     

    (Amount received on first call except 500 shares and final call received in advance on 1000 shares)

     

     

     

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  • Q7

    VKR Ltd. issued 975, 9% debentures of ₹500 each on 04/03/2016. Pass necessary journal entries for the issue of debentures under the following situations.

    a. When debentures were issued at a premium of 10% redeemable at a premium of 6%.

    b. When debentures were issued at a par redeemable at 9% premium.

    Marks:3
    Answer:

    Journal Entries

     

    Particulars

     

     

    (a)

    Bank A/c

    Dr.

     

    5,36,250

     

     

    To 9% debenture appl. and allot. a/c

     

     

    5,36,250

     

    (Debenture application money received on 975 debentures @ ₹550)

     

     

     

     

    9% debenture appl. and allot. a/c

    Dr.

     

    5,36,250

     

     

    Loss on issue of debentures a/c

    Dr.

     

    29,250

     

     

    To 9% Debenture a/c

     

     

    4,87,500

     

    To premium on redemption of deb. a/c

     

     

    29,250

     

    To securities premium a/c

     

     

    48,750

     

    (Debenture issued at premium and repayable at premium)

     

     

     

     

     

    Particulars

     

     

    (b)

    Bank A/c

    Dr.

     

    4,87,500

     

     

    To 9% debenture appl. and allot. a/c

     

     

    4,87,500

     

    (Debenture application money received on 975 debentures @ ₹500)

     

     

     

     

    9% debenture appl. and allot. a/c

    Dr.

     

    4,87,500

     

     

    Loss on issue of debentures a/c

    Dr.

     

    43,875

     

     

    To 9% Debenture a/c

     

     

    4,87,500

     

    To premium on redemption of deb. a/c

     

     

    43,875

     

    (Debenture issued at par and repayable at premium)

     

     

     

     

    View Answer
  • Q8

    State any three circumstances other than (i) admission of a new partner, (ii) retirement of a partner and (iii) death of a partner, when need for valuation of goodwill of a firm may arise.

    Marks:3
    Answer:

    The other situations in which valuation of goodwill arises are as follows:

    1) Change in the profit sharing ratio among the existing partners.

    2) Dissolution of a firm involving sale of business as a going concern.

    3) Amalgamation of two firms i.e. merger or acquisition of two businesses

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  • Q9

    Samachar India Ltd. took over the assets of ₹14,00,000 and liabilities of ₹4,00,000 from News Ltd. for a purchase consideration of ₹9,19,000. Samachar India Ltd. issued a promissory note of ₹17,000 payable after 60 days in favour of News Ltd. and the balance amount was paid by issue of equity shares of ₹100 each at a premium of ₹25 per share.

    Pass necessary Journal entries for the above transactions in the books of Samachar India Ltd.

    Marks:3
    Answer:

    Journal Entries

     

    Particulars

     

     

     

    Sundry Assets A/c

    Dr.

     

    14,00,000

     

     

    To Sundry liabilities A/c

     

     

    4,00,000

     

    To News Ltd.

     

     

    9,19,000

     

    To Capital reserve a/c

     

     

    81,000

     

    (Purchase of assets and liabilities of News Ltd.)

     

     

     

     

    News Ltd.

    Dr.

     

    9,19,000

     

     

    To Share Capital a/c

     

     

    7,21,600

     

    To Securities Premium a/c

     

     

    1,80,400

     

    To Bills Payable a/c

     

     

    17,000

     

    (Issued 7,216 equity shares of ₹100 each at a premium of 25% and bills payable)

     

     

     

    View Answer
  • Q10

    To provide employment to the youth and to develop the Naxal affected backward areas of Chattisgarh X Ltd. decided to set-up a power plant. For raising funds the company decided to issue 7,50,000 equity shares of ₹10 each at a premium of 50%. The whole amount was payable on application. Applications for 20,00,000 shares were received.

    Applications for 50,000 shares were rejected and shares were allotted to the remaining applicants on pro-rata basis.

    Pass necessary journal entries for the above transactions in the books of the company and identify any two values which X Ltd. wants to propagate.

    Marks:3
    Answer:

    Journal Entries

    Particulars

     

    Bank A/c

    Dr.

     

    3,00,00,000

     

     To Share Application and Allotment A/c

     

     

    3,00,00,000

    (Application money received on 20,00,000 shares @ ₹10 per share at a premium of 50%)

     

     

     

    Share Application and Allotment A/c

    Dr.

     

    3,00,00,000

     

    To Share Capital A/c

     

     

    75,00,000

     To Securities Premium A/c

     

     

    37,50,000

     To Bank A/c

     

     

    1,87,50,000

    (Application money transferred to share capital and money for excess application refunded)

     

     

     

    The following two values are shown by X Ltd.

    1) Providing employment in the backward areas.

    2) Value of equality by allotting shares on pro rata basis.

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