List of top Accountancy Questions on Reading Comprehension

Read the following case study, answer the question:
Raja Pvt Ltd. has been operating in the field of Oils and Food items for last $10$ years. Established in South India, has started its operations in some parts of Gujarat as well. Looking at growing demand and production the company wants to raise its Capital through an IPO to expand its operations in North India as well. The company was started in the year $2009$ with only $3$ members and now had $5$ members and $20,000$ employees. It was decided to convert the company into Public Ltd. Company. The Memorandum of Association of the company provides for$₹$ $60,00,000$ of Capital out of which the company issues ₹ 40,00,000 of share capital (40,000 equity shares of ₹100 each). The shares were issued at a premium of ₹ 20 but the company was able to get subscription of only 38,000 shares. Amount is paybale as follows ₹10 on application, ₹50 on allotment and Two calls of ₹ 20 each. Premium amount is to be received on allotment. The company was able to receive all money on all the shares except on 200 shares on Ist call and 300 share final call was not received. The company forfeited the shares of those who did not pay 1st call.

Read the following case study and answer the question: Naina and Nayantara are Partners in a firm, sharing profits in ratio 3: 2. They decided to dissolve their firm on 31, March 2021 when their Balance-Sheet was as follows:

Liabilities Amt.	Amt. (₹)	Assets	Amt. (₹)
Capital:		Machinery	80,000
Naina 1,00,000		Investment	50,000
Nayantara 80,000	1,80,000	Stock	22,000
Creditors	60,000	Debtors	1,03,000
Bills payable	20,000	Cash at Bank	5000
	2,60,000		2,60,000

The Assets and liabilities were disposed off as follows: 
(a) Machinery was given to creditors in full settlement of their amount and stock was given to Bills Payable in full settlement. 
(b) Investment were taken over by Nayantara at book value. 
(c) Debtors of book value  ₹50,000 taken over by Naina at 10% less and remaining debtors realised ₹ 51,000. 
(d) Realisation expenses amounted to  ₹5,000.

Read the following case study and answer Q 41-45.
Surya Ltd issued 10,000 equity shares of ₹ 50 each at a premium of 10%. The company received application for 13,000 shares. The amount was payable as on application 30% on allotment 30% plus Premium; on 1st call 10% and Balance on final call. Allotment was made pro-rata for all applicants. Excess application money received is to be adjusted on allotment. Company received all money called expect from Manan, an applicant, of 390 shares. Manan Paid only application money. His shares were forfeited and 70% of the forfeited shares were reissued as fully paid for ₹ 40 each.

Read the following information provided by a school and attempt Question 46-50
The Trial Balance of a school as on 31.3.2017 is

Debit Balance	Amount (₹)	Credit Balance	Amount (₹)
Building	6,25,000	Admission fees	12,500
Furniture	50,000	Tuition fees received	5,00,000
Library books	1,50,000	Creditors for supplies	15,000
Investment @ 12% (14.16)	5,00,000	Rent for the school hall	10,000
Salaries	5,00,000	Miscellaneous receipes	30,000
Stationery	40,000	Legacies (general)	3,50,000
General expenses	18,000	General fund	10,00,000
Sports expenses	15,000	Donation for library books	62,500
Cash at bank	1,00,000	Sale of old furniture	20,000
Cash in hand	2,000
	20,00,000		20,00,000

Additional Information :
The book value of the furniture sold was ₹ 50,000 on April 1, 2016 was sold for ₹ 20,000.

From the trial balance and other information provided by school for the year ended 31st March 2017.Answer the question.

Debit Balance	Amount (₹)	Credit Balance	Amount (₹)
Building	6,25,000	Admissions fees	12,500
Furniture	1,00,000	Tuition fees received	5,00,000
Library Books	1,50,000	Creditors for supplies	15,000
Investment @12%	5,00,000	Rent for the school hall	10,000
Salaries	5,00,000	Miscellaneous receipts	30,000
Stationery	40,000	Government grant	3,50,000
General expenses	18,000	General fund	10,00,000
Sports expenses	15,000	Donation for library books	62,500
Cash at bank	50,000	Sale of old furniture	20,000
Cash in hand	2,000
	20,00,000		20,00,000

Additional Information:
i. Tuition fee yet to be received for the year are ₹25,000.
ii. Salaries yet to be paid amount to ₹30,000.
iii. Furniture costing 40,000 was purchased on October 1,2016.
iv. The book value of the furniture sold was ₹50,000 on April 1, 2016
v. Depreciation is to be charged @ 10%p.a. on furniture, 15% p.a. on Library books, and 5% p.a. on building.

Eicher Ltd. issued 50,000 shares of 10 each at a premium of 15 per share payable as follows:
On application     ₹3 per share
 On allotment       ₹5 (including 3 Premium)
 On First Call         ₹5 (including 2 Premium)
On Final Call          Balance amount
Application were received for 72,000 shares. Directors allotted 50,000 shares to the applicants applying for 65,000 shares, the remaining applications being refused. Money overpaid on application was utilised towards sum due on allotment. All the money was duly received with the exception of first call from Rahul, who applied for 2,600 shares. Due to nonpayment of I^st call his share were forfeited immediately. Later on these share were re-issued at minimum issue price. 
  On the basis of following case study, answer the question.