List of top Accountancy Questions

JK Ltd. forfeited 6,000 equity shares of ₹10 each issued at a premium of ₹2 per share for the non-payment of first call of ₹2 per share. The second and final call of ₹2 per share had not yet been made. The forfeited shares were reissued at a discount of ₹3 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of the company. Also prepare ‘Share Forfeiture Account’.

Chandni, Bhanu and Garima were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. The firm closes its books on 31st March every year. On 1st October, 2024, Chandni died. On that date her capital account showed a credit balance of ₹3,00,000. On the date of Chandni’s death, the firm had a general reserve of ₹60,000. The partnership deed provided that on the death of a partner, her representatives will be entitled to the following:
(i) Balance in the capital account and interest on the same @ 10% p.a.
(ii) Her share in the goodwill of the firm. The goodwill of the firm on Chandni’s death was valued at ₹1,20,000
(iii) Her share in the profits of the firm to be calculated on the basis of the previous year’s profit. The profit of the firm for the year ended 31st March, 2024 was ₹4,50,000.
Prepare Chandni’s Capital Account to be presented to her executors.

Jeevan and Kavi were partners in a firm with capitals of ₹12,00,000 and ₹15,00,000 respectively. Annual salary of the partners was ₹2,00,000 each. The market rate of interest was 10%. During the previous three years the profits were ₹8,00,000, ₹9,00,000 and ₹7,00,000. The goodwill of the firm is to be valued at 2 years’ purchase of the last 3 years’ average super profits.
Calculate the goodwill of the firm.

Pass necessary journal entries in the books of RR Ltd. for issue of debentures in the following cases:
(i) Issued 9,000, 9% debentures of ₹100 each at a discount of 10%, redeemable at a premium of 5% after 5 years.
(ii) Issued 5,000, 11% debentures of ₹100 each at a premium of 10%, redeemable at a premium of 5% after 5 years.

Sandhya Ltd. took over the assets of ₹50,00,000 and liabilities of ₹7,00,000 of Guman Ltd. for purchase consideration of ₹40,00,000. The payment of purchase consideration was made by issue of 9% debentures of ₹100 each at a premium of 25% to Guman Ltd.
Pass necessary journal entries for the above transactions in the books of Sandhya Ltd.

On 1st April, 2023, Jain and Gupta started a partnership firm with fixed capitals of ₹15,00,000 and ₹12,00,000 respectively. They decided to share profits and losses in the ratio of 3 : 2. On 1st July, 2023, Jain withdrew ₹1,00,000 from his capital and Gupta introduced further capital of ₹2,00,000. Partnership deed provided for interest on capital @ 10% p.a.
During the year Jain withdrew ₹50,000 and Gupta withdrew ₹60,000 for their personal use. Interest on drawings was to be charged @ 18% p.a.
After preparing Profit and Loss Appropriation Account for the year ended 31st March, 2024, ₹72,000 and ₹48,000 were credited respectively to the current accounts of Jain and Gupta as their share of divisible profit.
Prepare Current Accounts of Jain and Gupta.

Aman, Raj and Suresh were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 8. Suresh was guaranteed a minimum profit of ₹5,00,000 per year. Any deficiency on this account was to be borne by Aman and Raj equally. The net profit of the firm for the year ended 31st March, 2024 was ₹8,00,000.
Prepare Profit and Loss Appropriation Account of Aman, Raj and Suresh for the year ended 31st March, 2024.

Jay and Vijay were partners in a firm sharing profits and losses in the ratio of 7 : 3. Their respective fixed capitals were ₹9,00,000 and ₹7,00,000. The partnership deed provided for interest on capital @ 8% per annum. After preparing the accounts for the year ended 31\textsuperscript{st March, 2024, it was discovered that interest on capital was allowed @ 9% per annum. Showing your workings clearly, pass the necessary journal entry to rectify the error.}

Sharma, Verma and Khan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. The firm closes its books on 31st March every year. On 31st December, 2024 Khan died. Khan’s share in the profits of the firm till the date of his death was to be calculated on the basis of the profit of the previous year. During the year ended 31st March, 2024 the firm earned a profit of ₹6,00,000. The treatment for Khan’s share in the profits of the firm till the date of his death will be:

Giri and Shyam were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their capitals were ₹1,60,000 and ₹1,00,000 respectively. Hema was admitted for $\dfrac{1}{5}$ share in the profits of the firm. Hema brought ₹1,50,000 as her capital. The goodwill of the firm on Hema’s admission was:

Uma and Veena were partners in a firm sharing profits and losses in the ratio of 4 : 5. On 1st April, 2024 they decided to admit Usha as a new partner for $\dfrac{1}{4}$ share in the profits of the firm. On Usha’s admission it was decided that the goodwill of the firm will be valued equal to the previous year’s profit. The profit for the year ended 31st March, 2024 was ₹5,76,000. However, to arrive at this profit, both the opening stock and closing stock were overvalued by ₹50,000. The goodwill of the firm will be:

Sona, Mona and Raghav were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. Raghav retired. The balance in Raghav’s capital account after making the necessary adjustments on account of reserves and revaluation of assets and liabilities was ₹2,20,000. Sona and Mona agreed to pay him ₹4,00,000 in full settlement of his claim. Raghav’s share of goodwill in the firm was:

Java Ltd. forfeited 600 equity shares of ₹100 each ₹80 called up for the non-payment of first call of ₹20 per share. These shares were reissued at ₹90 per share fully paid up. The amount transferred to ‘Capital Reserve’ will be:

The following account is debited for allowing interest on partners’ capital:

Daman, Mohit and Paras were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. Daman retires. Mohit and Paras decided to share future profits and losses in the ratio of 5 : 3. The gaining ratio of Mohit and Paras will be:

Ashok and Avinash were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2023, their capitals were ₹10,00,000 and ₹15,00,000 respectively. After the accounts for the year ending 31st March, 2024 were prepared, it was discovered that interest on capital at the rate of 10% per annum, as provided for in the partnership deed, was not credited to the partners’ capital accounts before distribution of profits. Had the interest on capital been duly provided, the firm’s divisible profit would have:

In the event of dissolution of a partnership firm, the order of payment of losses including deficiencies of capital shall be:

Debentures which can be transferred by way of delivery and the company does not keep any record of the debentureholders are called:

Mohan, a partner, withdrew ₹80,000 from the business for his personal use during the year ended 31st March, 2024. Interest on drawings was to be charged @ 12% per annum. Interest on Mohan’s drawings will be:

Murthy and Madhavan were partners in a firm sharing profits and losses in the ratio of 3 : 1. They admitted Shriniwas as a new partner in the firm. On admission of Shriniwas, there existed a balance of ₹8,00,000 in debtors account and a balance of ₹50,000 in provision for bad debts account. Debtors of ₹60,000 proved bad and hence were written off. It was decided to maintain a provision for bad debts at 10% of the debtors. The revaluation account will be debited by \_\_\_\_\_ on the reconstitution of the firm.

Shyamla Ltd. purchased machinery of ₹9,50,000 from Rohini Ltd. The payment was made by issue of 9% debentures of ₹100 each at a discount of 5% redeemable at a premium of 10% after four years. The number of debentures issued in favour of Rohini Ltd. will be:

Rajesh Ltd. forfeited 300 equity shares of ₹100 each, ₹70 called up for the non-payment of first call of ₹20 per share. Out of these shares, 100 shares were reissued @ ₹100 per share, ₹70 paid up. How much balance will remain in the share forfeiture account after reissue of 100 shares?

Manas Ltd. forfeited 600 shares of ₹10 each for the non-payment of first call of ₹2 per share. The final call of ₹3 per share was not yet called. In the journal entry for forfeiture of shares, ‘Share Forfeiture Account’ will be:

When applications for more shares of a company are received than the number of shares offered to the public for subscription, it is known as:

A portion of the uncalled capital reserved by a company to be called only in the event of winding up of the company, is called: