Arts (English Medium) Class 12 - CBSE Question Bank Solutions for Accountancy

As per Companies Act 2013, Securities Premium Balance can be utilised for which of the following purpose?

Health2Wealth Ltd. had share capital of ₹ 80,00,000 divided in shares of ₹ 100 each and 20,000, 8% Debentures of ₹ 100 each as part of capital employed. The company need additional funds of ₹ 55,00,000 for which they decided to issue debentures in such a way that they got required funds after issuing debentures of the same class as earlier, at 10% premium. These debentures were to be redeemed at 20% premium after 4 years. These debentures were issued on 01 October, 2021.

You are required to

1. Pass entries for issue of Debentures.
2. Prepare Loss on Issue of Debentures Account assuming there was existing balance of Securities Premium Account of ₹ 2,80,000.
3. Pass entries for Interest on debentures on March 31, 2022 assuming interest is payable on 30 September and 31 March every year.

Pass journal entries relating to issue of debentures for the following transactions:

1. Issued 8,000, 10% debentures of ₹ 100 each at a discount of 10%, redeemable at 5% premium.
2. Issued 4,000, 12% debentures of ₹ 100 each at 10% premium, redeemable at 6% premium.
3. Issued ₹ 1,00,000, 9% debentures of ₹ 100 each at par redeemable at par.
4. Issued ₹ 5,00,000, 9% debentures of ₹ 100 each at 10% premium redeemable at par.
5. Issued ₹ 6,000, 9% debentures of ₹ 100 each at a discount of 10% redeemable at par.

From the following Balance Sheet of Rohit Ltd., prepare a Common Size Balance Sheet:

Explain the meaning of the term 'Relational database'.

Pass necessary journal entries for the issue of debentures in the following cases:

1. Issued 50,000, 9% debentures of ₹ 100 each at par redeemable at par.
2. Issued 10,000, 8% debentures of ₹ 100 each at 7% premium redeemable at par.
3. Issued 750, 8% debentures of ₹ 100 each at 10% discount redeemable at par.
4. Issued 1,000, 9% debentures of ₹ 100 each at 5% premium redeemable at 8% premium.
5. Issued 500, 9% debentures of ₹ 100 each at 10% discount redeemable at 10% premium.

From the following information, prepare a 'Common Size Statement of Profit and Loss' of K K Ltd. for the year ended 31.3.2021 and 31.3.2022:

From the following information, prepare a 'Common Size Statement of Profit and Loss' of GG Ltd. for the year ended 31.3.2021 and 31.3.2022:

Read the following hypothetical situation and answer the following question on its basis:

How much amount of net profit will be transferred to the Profit and Loss Appropriation A/c?

Pass necessary journal entries for the issue of debentures in the following cases :

1. Issued ₹ 75,00,000, 9% debentures of ₹100 each at a premium of 10% redeemable at a premium of 5% after 3 years.
2. Issued 8,000, 9% debentures of ₹100 each at a discount of 6% redeemable at a premium of 3% after 5 years.
3. Issued 90,000, 9% debentures of ₹100 each at par, redeemable at par after 4 years.

Pass necessary journal entries for the issue of debentures in the following cases :

1. Issued ₹ 7,00,000, 9% debentures of ₹ 100 each at a premium of 20% redeemable at a premium of 10% after 6 years.
2. Issued 10,000, 12% debentures of ₹ 100 each at 10% discount redeemable at a premium of 5% after 5 years.
3. Issued 75,000, 12% debentures of ₹ 100 each at par, redeemable at premium of 10% after three years.

Pass necessary journal entries for the issue of debentures in the following cases:

1. Issued 5,000, 9% debentures of ₹ 100 each at a discount of 10% redeemable at a premium of 5% after 5 years.
2. Issued 30,000, 12% debentures of ₹ 100 each at a premium of 5% and redeemable at par after 5 years.
3. Issued 8,750, 12% debentures of ₹100 each at par, redeemable at par after 5 years.

Which of the following statement is incorrect with respect to debentures?

'Vimal Ltd. purchased assets a worth ₹ 5,00,000 and took over liabilities of ₹ 1,00,000 of Kapil Ltd. for a purchase consideration of ₹ 4,50,000. Vimal Ltd. paid one third of the amount of cheque and balance was settled by issuing 11% debentures of 100 each at a premium of 20%.

Pass necessary journal entries in the books of Vimal Ltd. for the above transactions. 

Chiranjeevi Limited issued 2,000, 10% debentures of ₹ 100 each. Pass the necessary Journal entries for the issue of debentures in the following cases:

1. When debentures were issued at 10% premium, redeemable at 5% premium.
2. When debentures were issued at 5% discount, redeemable at 10% premium.
3. When debentures were issued at par, redeemable at a premium of 10%

On 1^st April 2022, Galaxy ltd. had a balance of ₹8,00,000 in Securities Premium account. During the year company issued 20,000 Equity shares of ₹10 each as bonus shares and used the balance amount to write off Loss on issue of Debenture on account of issue of 2,00,000, 9% Debentures of ₹100 each at a discount of 10% redeemable @ 5% Premium. The amount to be charged to Statement of P & L for the year for Loss on issue of Debentures would be:

Alexa Ltd. purchased building from Siri Ltd for ₹ 8,00,000. The consideration was paid by issue of 6% debentures of ₹ 100 each at a discount of 20%. The 6% Debentures account is credited with ______.

On July 01, 2022, Panther Ltd. issued 20,000, 9% Debentures of ₹ 100 each at 8% premium and redeemable at a premium of 15% in four equal instalments starting from the end of the third year. The balance in Securities Premium on the date of issue of debentures was ₹ 80,000. Interest on debentures was to be paid on March 31 every year.

Pass Journal entries for the financial year 2022-23.  Also prepare Loss on Issue of Debentures account.

From the information extracted from the statement of Profit & Loss of Zee Ltd for the year ended 31^st March 2022 and 31^st March 2023, prepare a common size statement of profit & loss:

Read the following hypothetical situation and answer the following question on its basis:

What will the amount of interest on drawings of the partners?