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

Compute Working Capital Turnover Ratio using the following information.

The current assets of X Ltd. are ₹ 2,00,000 and its current liabilities are ₹ 1,50,000. If its working capital turnover ratio is 6 times, its revenue from operations will be ______.

BG. Ltd. issued 2,000, 12% debentures of Rs.100 each on 1st April 2012. The issue was fully subscribed. According to the terms of issue, interest on the debentures is payable half-yearly on 30th September and 31st March and the tax deducted at source is 10%. Pass necessary journal entries related to the debenture interest for the half-yearly ending 31st March, 2013 and transfer of interest on debentures of the year to the Statement of Profit & Loss.

Mrs Shehal and Mrs Meenal are equal partners in a business. Their balance sheet is as follows.

They agreed to admit Mr Komal on 1st April 2013 on the following terms:

(1) Komal should bring Rs. 50,000 towards her capital for one fourth (1/4th) Share in future profit.

(2) Goodwill to be raised in the books of the firm for Rs. 40,000.

(3) R.D.D. to be maintained at 5% on debtors.

(4) Premises to be valued at Rs. 30,000 and equipment to be written off fully.

(5) Creditors allowed a discount of Rs. 1,000 and they were paid off immediately.

Prepare Profit and Loss Adjustment Account, Partner's Capital Accounts and Balance Sheet of the new firm.

Why does a firm revaluate its assets and reassess its liabilities on retirement or death of a partner?

G. Ltd., a listed company, issued 75,00,000, 6% Debentures of Rs 50 each at par, payable Rs 15 on application and Rs 35 on allotment, redeemable at par after 7 years from the date of issue of the debenture. Record necessary entries in the books of the Company.

Y. Ltd. issued 2,000, 6% Debentures of Rs 100 each payable as follows: Rs 25 on application; Rs 50 on allotment and Rs 25 on the First and Final call. Record necessary entries in the books of the company.

A. Ltd. issued 10,000, 10% Debentures of Rs 100 each at a premium of 5% payable as follows:

Rs 10 on Application;

Rs 20 along with premium on allotment and balance on First and Final call. The debentures were fully subscribed, and all money was duly received. Record necessary Journal entries. Also, show how the amount will appear in the balance sheet.

A. Ltd. issued 90,00,000, 9% Debenture of Rs 50 each at a discount of 8%, redeemable at par any time after 9 years. Record necessary entries in the books of A. Ltd. for the issue of debentures.

A. Ltd. issued 4,000, 9% Debentures of Rs 100 each on the following terms:

Rs. 20 on Application;

Rs. 20 on Allotment;

Rs. 30 on First call; and

Rs. 30 on Final call.

The public applied for 4,800 Debentures. Applications for 3,600 Debentures were accepted in full. Applications for 800 Debentures were allotted 400 Debentures, and applications for 400 Debentures were rejected. All money called and duly received. Record necessary journal entries.

T. Ltd. offered 2,00,000, 8% debenture of Rs 500 each on June 30, 2014 at a premium of 10% payable as Rs 200 on application (including premium) and balance on allotment, redeemable at par after 8 years. But application are received for 3,00,000 debentures and the allotment is made on pro-rata basis. All the money due on application and allotment is received. Record necessary entries regarding issue of debentures.

X. Ltd. invites applications for the issue of 10,000, 14% debentures of Rs. 100 each payable as to Rs. 20 on application, Rs. 60 on allotment and the balance on call. The company receives applications for 13,500 debentures, out of which applications for 8,000 debentures are allotted in full, applications for 5,000 debentures were alloted only 40% of received application, and the remaining applications were rejected. The surplus money on partially allotted applications is utilised towards allotment. All the sums due are duly received. Record necessary journal entries regarding the issue of debentures.

R. Ltd. offered 20,00,000, 10% Debentures of Rs. 200 each at a discount of 7% redeemable at a premium of 8% after 9 years. Record necessary entries in the books of R. Ltd.

M. Ltd. took over assets of Rs. 9,00,00,000 and liabilities of Rs. 70,00,000 of S. Ltd. and issued 8% Debentures of Rs. 100 each. Record necessary entries in the books of M. Ltd.

X. Ltd. issued 15,000, 10% debentures of Rs. 100 each. Give journal entries and the Balance Sheet in each of the following cases:

(i) The debentures are issued at a premium of 10%;

(ii) The debentures are issued at a discount of 5%;

(iii) The debentures are issued as collateral security to the bank against a loan of Rs. 12,00,000; and

(iv) The debentures are issued to a supplier of machinery costing Rs. 13,50,000.

If it is agreed that the capital of all the partners be proportionate to the new profit sharing ratio, how will you work out the new capital of each partner? Give examples and state how necessary adjustments will be made.

______ means any offer of securities to a select group of persons by a company other than by way of the public offer.

Gaining Ratio = ____________

On reconstitution of a partnership firm, recording of an unrecorded liability will result in ______.

At the time of admission of a partner, what will be the effect of the following information?

Balance in Workmen compensation reserve ₹40,000. Claim for workmen compensation ₹45,000.