1)
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What is
meant by ‘Reserve Capital’?
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1
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2)
|
What do you mean by ‘Honorarium’ in
case of Not-For-Profit Organisation?
|
1
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3)
|
Will
interest paid to a partner on loan be debited to Profit &
Loss A/c or Profit & Loss Appropriation A/c? Give
reasons.
|
1
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4)
|
How does the
factor ‘location’ affect the
goodwill of a firm?
|
1
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5)
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What is
meant by ‘Reconstitution of
firm’?
|
1
|
6)
|
The Income &
Expenditure A/c of Raj Club shows subscriptions for 2010
as Rs.70,000. Additional information:
|
|
a) Subscriptions for 2009 unpaid on 01/01/2010 was Rs.4,000, Rs.3,600 of which was received in 2010.
b) Balance of subscription paid in advance on 01/01/2010 was Rs.1,700. c) Balance of subscription paid in advance on 31/12/2010 was Rs.900.
d) Balance of subscription for 2010 unpaid on 31/12/2010 was Rs.3,500.
Determine the amount of subscription received in cash during the year 2010. 3
7) Sunanda Ltd. issued 4,000
11 % Debentures of Rs100 each
. Pass necessary journal entries for
issue of
Debentures in
the
following cases : 3
a) When debentures are issued at
par and redeemable at 5 % premium.
b) When debentures are
issued at 5 % premium and
redeemable at par.
c) When debentures are issued
at 5 % premium and
redeemable at 8 % premium.
8) State the provisions of Section 79 of the Company’s
Act, 1956 regarding the issue of shares at discount. 3
9) Calculate the interest
on drawings of Sunil @10% per annum for the year ended 31/03/11, in each of these cases: 4
Case I – If he withdraws Rs.4,000 at the beginning of each month.
Case II- If he
withdraws Rs.,5,000 at
the
end of each quarter.
10) X,Y and Z
are
sharing in 2:2:1. Y dies on March
1st,2011 and his share is taken over by X
and Y in the ratio of 3:2.
Profits up to December 31st, 2010 is Rs.50,000. Total goodwill of the firm on the date of his death is Rs.40,000. Journalise in the books of the firm. 4
11)
ABC Ltd. issued 20,000 shares of Rs.10 each at a premium
of Rs.3 which were payable as follows: On Application - Rs.4 (including Re. 1 premium)
On Allotment - Rs.5 (including Re.
2 premium) Balance on 1st & Final call.
Subodh, a holder of 500 shares, failed to pay the allotment money and call money. His shares were forfeited and
reissued only 300 shares @
Rs.8 per share. Journalise for forfeiture and reissue of shares only in the firm’s books. 4
12) (a) PQR
Ltd. issued 30,000, 11%Debentures of Rs.100 each. The Board of Directors decided to purchase 60% of those debentures from
the market at a price of Rs.94 each, for
investment purpose. The expenses on purchase amounted to Rs.200. On the same day, they decided to sell
these debentures @ Rs.102 each.
Journalise for purchase and sale of these debentures.
(b) XYZ Ltd. redeemed its 1,800,11% Debentures of Rs.100 each by converting them into 12% Preference Shares
of Rs.100 each to be issued at a premium of 20%.
Pass the journal entries. 6
13) From
the
following Receipts and Payments A/c of a club and from
the
information supplied, prepare
an Income
& Expenditure A/c for the year ended 31/12/10 and the Balance Sheet
as on that date:
Receipts
|
Amt.(Rs.)
|
Payments
|
Amt.(Rs.)
|
To Balance
B/d
To Subscriptions:
2001
2002
2003
To Sale of old furniture
(costing Rs.50)
To Rent received
To Profit from
Entertainment
To Sale of newspaper
|
250
250
1,000
200
60
740
400
100
|
By Balance B/d
By Salaries
By Electric Charges
By Books
By Match Expenses
By Furniture (01/04/2010) By Balance C/d
|
300
1,200
200
100
400
50
250
500
|
|
3,000
|
|
3,000
|
Additional information:
a) The club had 50 members,
each paying annual subscriptions of Rs.25. Subscriptions outstanding on 31/12/09
were Rs.300.
b) On 31/12/10,
Salaries outstanding amounted to Rs.600.
c) On 31/12/09, the club owned Land &
Building valued at
Rs.10,000,
Furniture Rs.600 and Books Rs.500.
There was a Match Fund in the club on 31/12/2009 in which there was a balance of Rs.300.
d) Depreciate Furniture @
10%
p.a. 6
14) Following is
the Balance Sheet of
P, Q & R who were sharing Profits
& Losses in the ratio of 3:2:
Liabilities
|
Amt. (Rs.)
|
Assets
|
Amt. (Rs.)
|
Bank Balance
Creditors
Mrs. P’s
Loan
Capital Accounts
P Q R
|
12,000
70,000
25,800
1,20,000
95,000
5,000
|
Debtors 20,000
Less :
Provision 1,200
Stock
3,000 Shares in ‘A’
Ltd. Motor Car
Plant
Advertisement Suspense
A/c
|
18,800
40,000
30,000
75,000
80,000
84,000
|
|
3,27,800
|
|
3,27,800
|
The firm was
dissolved on that date and the following arrangement were
made:
a) Assets
realized as follows: Debtors
Rs.15,000; Plant at 30%
discount.
b) Stock was valued at Rs.36,000 and this was
taken over by P & Q equally.
c) Market value of
the shares of A Ltd. is Rs.15
per share. Half
the
shares were sold in the
market and the balance half were
taken over by P & Q in their Profit sharing ratio.
d) A Creditor for
Rs.50,000 took over Motor Car
in
full settlement of
his claim and the balance of creditors were paid at a discount of 2%.
e) Expenses of realisation amounted to Rs.6,000. P agreed to discharge his
wife’s Loan.
Show the
necessary Ledger Accounts. 6
15) Given below
is the
Balance Sheet of A & B, who are carrying on partnership business as on December 31,
2010 A &
B share profit &
losses in the ratio of
3:2.
Liabilities
|
Amt.(Rs.)
|
Assets
|
Amt.( Rs.)
|
Bills Payable
Creditors
Outstanding Expenses
Capitals A 2,00,000
B 1,50,000
|
6,000
30,000
14,000
3,50,000
|
Cash
Sundry Debtors
Stock Plant
Buildings Goodwill
|
28,750
80,000
30,000
1,00,000
1,50,000
11,250
|
4,00,000
|
4,00,000
|
On that date, they
agreed to admit C as a partner on the following terms
: (a) C will get 1/4th Share in
Profits. C brings proportionate capital.
(b) New Profit Sharing ratio shall be
3 : 3 : 2.
(c) Goodwill shall be valued on 2 ½ years’ purchase of the past 4 years’ average profits, which were Rs.17,000;
Rs.14,000; Rs.15,000
& Rs.20,000 respectively.
(d) Plant is
to be appreciated to Rs.1,20,000 and value of buildings is
to
be appreciated by
Rs.20,000. (e) Stock was found overvalued by Rs.5,000.
(f) Creditors were
unrecorded to the extent of Rs.1,000.
Prepare Revaluation Account, Partner’s Capital Accounts and Balance Sheet of the new firm.