List of top Accountancy Questions

On 1st April 2022, Zubian Ltd. issued \rupee10,00,000, 7\% Debentures of \rupee100 each at a premium of 6\%, redeemable at a premium of 4\% after five years. The company had a balance of \rupee30,000 in Securities Premium Account. (a) Pass necessary journal entries for the issue of debentures and for writing off 'Loss on Issue of Debentures' utilising the Securities Premium Account at the end of the first year itself. (b) Prepare 'Loss on Issue of Debentures Account' for the year ended 31st March, 2023. \vspace{0.5cm}

Qumtan Ltd. invited applications for issuing 1,00,000 equity shares of \rupee10 each at a premium of \rupee6 per share. The amount was payable as follows: On Application and Allotment: \rupee8 per share (including premium \rupee3). On First and Final Call: Balance (including premium). Applications for 1,60,000 shares were received. Applications for 10,000 shares were rejected, and pro-rata allotment was made to the remaining applicants. Excess money received on application was returned. Dheeraj, who was allotted 200 shares, failed to pay the first and final call money. His shares were forfeited. All the forfeited shares were reissued at \rupee5 per share fully paid up. \vspace{0.5cm}

Printkit Limited invited applications for issue of 80,000 equity shares of \rupee10 each. The amount was payable as follows: On Application: \rupee3 per share On Allotment: \rupee2 per share On First and Final Call: Balance Applications for 1,50,000 shares were received. Applications for 10,000 shares were rejected, and pro-rata allotment was made to the remaining applicants as follows: - Category A: Applicants for 80,000 shares were allotted 40,000 shares. - Category B: Applicants for 60,000 shares were allotted 40,000 shares. Excess money received on application was adjusted toward the amount due on allotment and first and final call. All the amounts due on allotment and first and final call were duly received. \vspace{0.5cm}

Shubhi and Revanshi were partners in a firm sharing profits and losses in the ratio of \(3 : 2\). Their Balance Sheet as at 31st March 2023 was as follows: \[ \begin{array}{|l|r|l|r|} \hline Liabilities & Amount (\rupee) & Assets & Amount (\rupee)
\hline \text{Capitals:} & & \text{Fixed Assets} & 90,000
\quad \text{Shubhi} & 60,000 & \text{Stock} & 38,000
\quad \text{Revanshi} & 32,000 & \text{Debtors} & 30,000
\text{General Reserve} & 30,000 & \text{Cash} & 52,000
\text{Bank Loan} & 18,000 & &
\text{Creditors} & 70,000 & &
\hline Total & 2,10,000 & Total & 2,10,000
\hline \end{array} \] \vspace{0.5cm} Adjustments: Pari brings \rupee50,000 as her capital and \rupee50,000 as her share of premium for goodwill for \( \frac{1}{4} \) share in the profits of the firm. Fixed assets were depreciated by 30\%. Stock was revalued at \rupee45,000. Bank loan was paid off. Capitals of Shubhi and Revanshi were adjusted based on Pari’s capital, with actual cash being paid or brought in. \vspace{0.5cm}

Rishi, Shashi, and Trishi were partners in a firm sharing profits and losses in proportion of \( \frac{1}{2}, \frac{1}{6}, \frac{1}{3} \) respectively. Their Balance Sheet as at 31st March, 2023 was as follows: \[ \begin{array}{|l|r|l|r|} \hline Liabilities & Amount (\rupee) & Assets & Amount (\rupee)
\hline \text{Capitals:} & & \text{Fixed Assets} & 80,000
\quad \text{Rishi} & 36,000 & \text{Stock} & 20,000
\quad \text{Shashi} & 30,000 & \text{Debtors} & 30,000
\quad \text{Trishi} & 20,000 & \text{Cash} & 40,000
\text{General Reserve} & 30,000 & &
\text{Creditors} & 54,000 & &
\hline Total & 1,70,000 & Total & 1,70,000
\hline \end{array} \] \vspace{0.5cm} Adjustments: Fixed assets were valued at \rupee56,000. Stock was taken over by Shashi at \rupee26,000. Goodwill of the firm was valued at \rupee18,000 on Shashi’s retirement. The balance in Shashi’s Capital Account was transferred to her loan account. \vspace{0.5cm}

Pearl and Ruby were partners in a firm with a combined capital of \rupee2,50,000. The normal rate of return was 10\%. The profits of the last four years were as follows: \[ \text{2019–2020: \rupee35,000, 2020–2021: \rupee25,000, 2021–2022: \rupee32,000, 2022–2023: \rupee33,000}. \] The closing stock for the year 2022–2023 was overvalued by \rupee5,000. Calculate goodwill of the firm based on three years’ purchase of the last four years’ average super profit.

Xeno Ltd. issued 25,000 equity shares of \rupee10 each. The amount was payable as follows: \begin{itemize On Application – \rupee4 per share On Allotment – \rupee5 per share On First and Final Call – Balance All the shares offered were applied for and allotted. All the money due on allotment was received except on 1,500 shares. These shares were forfeited immediately after allotment. First and final call was not yet made. At the time of forfeiture, Share Capital Account will be debited by: }

Assertion (A): Irredeemable debentures are also known as perpetual debentures. Reason (R): The company does not give any undertaking for the repayment of money borrowed by issuing such debentures. They are repayable on the winding up of the company or on the expiry of a long period. Choose the correct option from the following:

Alex, Benn, and Cole were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. They admitted Dona as a new partner for $\frac{1{5}$ share in the future profits. Dona agreed to contribute proportionate capital. On the date of admission, capitals of Alex, Benn, and Cole after all adjustments were \rupee1,20,000; \rupee80,000; and \rupee1,00,000, respectively. The amount of capital brought in by Dona will be:}

Assertion (A): Each partner is a principal as well as an agent for all the other partners. Reason (R): As per the definition of the Partnership Act, partnership business may be carried on by all the partners or any of them acting for all. Choose the correct option from the following:

Atul, Beena, and Sita were partners in a firm sharing profits and losses in the ratio of 8 : 7 : 5. Damini was admitted as a new partner for $\frac{1{5}$ share in the profits, which she acquired entirely from Atul. The new profit-sharing ratio after Damini’s admission will be:}

Abhay, Boris, and Chetan were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Boris was guaranteed a profit of \rupee95,000. Any deficiency on account of this was to be borne by Abhay and Chetan equally. The firm earned a profit of \rupee2,00,000 for the year ended 31\textsuperscript{st March, 2023. The amount given by Abhay to Boris as guaranteed amount will be:}