ISC (Commerce) इयत्ता १२ - CISCE Important Questions for Accounts

Alfa and Beta are partners in a firm. Their Balance Sheet as at 31st March, 2024, is given below:

On 1st April, 2024, they admit Beta’s son Gama, as a partner on the following terms:

1. Gama to have `1/4` share of profits, half of which is to be gifted to him by his father and the remaining half to be purchased from Alfa.
2. Gama to bring in ₹ 60,000 as his capital but would be unable to bring in cash his share of goodwill.
3. Goodwill of the firm to be valued at ₹ 40,000.
4. 50% of the investment to be taken over by Alfa and Beta in their profit-sharing ratio.
5. The liability on account of Workmen’s Compensation Claim to be ₹ 30,000.

You are required to:

1. Calculate the new profit-sharing ratio of all the partners.
2. Prepare the Partners’ Capital Accounts.

Answer briefly of the following question :

What is the minimum price at which a company can reissue its forfeited shares which were originally issued
at par?

Saturn Ltd. was registered with an authorized capital of ` 12,00,000. "divided into" ` 1,20,000 :equity shares of ` 10
"each. It issued "40,000" equity shares to the public at a premium of" ` 5 "per share, payable as follows": [12]
"On application" ` 6
"On allotment" ` 9 (including premium of  5)
All the shares were applied for and allotted. One shareholder holding 500 shares did not pay the allotment money
and his shares were forfeited. Out of the forfeited shares, the company reissued 400 shares at 7 per share fully
called up.
You are required to:
(a) Pass journal entries in the books of the company.
(b) Prepare :
(i) Securities Premium Reserve Account,
(ii) Share Capital Account.

The following balances have been extracted from the books of Vanity Ltd. as at 31st March, 2017:

                   Trial Balance as at 31st March, 2017

ABC Ltd. offered 60,000 shares of ₹ 10 each to the public. The public applied for 1,00,000 shares. The company made pro-rata allotment in the ratio of 3 : 2 and the remaining applications were rejected and money refunded to the applicants.

On how many shares did the company refund the application money?

Sunrise Ltd. was formed on 1^st November, 2021, with a capital of ₹ 20,00,000 divided into Equity shares of ₹ 20 each. It offered 95% shares to the public which were all subscribed for.
60% amount was payable on application;
30% on allotment;
And the balance on final call
The applicants paid ₹ 11,40,000 on application and ₹ 5,40,000 on allotment.
Final call was not made by the company till the Balance Sheet date.

You are required to prepare:

1. An extract of the Balance Sheet showing Share Capital.
2. Notes to Accounts.

NH Ltd, with an authorized capital of ₹ 10,00,000 divided into 1,00,000 Equity shares of ₹10 each, issued 50,000 shares to the public at a premium of ₹ 2 per share, payable as follows:

₹ 5 on Application (including premium)

₹ 3 on Allotment

₹ 4 on First and Final Call.

The subscription was at par and the share money was received in full with the exception of the allotment money on 4,000 shares held by shareholder Ravi and the call money on 6,000 shares (including Ravi's shares).

The above 6,000 shares were forfeited by the company and 5,000 of these (including the shares which had been allotted to Ravi) were reissued at ₹ 8 per share as fully paid-up.

You are required to pass journal entries to record the above transactions in the books of the company.

MV Ltd. was registered with a capital of ₹ 2,00,000 divided into 10,000 Equity shares of ₹ 20 each payable as follows:

The company offered 5,000 shares to the public for subscription. It received applications for 6,700 shares.

From amongst the applicants:

1. Vimal, who had applied for 1,500 shares, paid ₹ 7,500 on application, but was allotted only 800 shares.
2. Abhay, who had applied for 2,000 shares, paid the full amount of ₹ 40,000 with his application, but was allotted only 1,000 shares.
3. Nitin, who had applied for and allotted 500 shares, did not pay the allotment and call money when due.
4. The remaining applicants paid as and when due.

The surplus money paid by both Vimal and Abhay was used towards allotment and call and any surplus beyond the call was refunded.

The company forfeited Nitin's shares after the final call.

You are required to pass journal entries to record the above transactions in the books of the company.

Tulip Ltd. allotted 45,000 Equity shares of ₹ 10 each to the public. The first and final call of ₹ 2 per share was not received on 1,000 shares, which were forfeited by the company. Later, 600 of the forfeited shares were reissued at ₹ 7 fully paid-up. What is the Subscribed Capital of the company?

Roxy Ltd. issued Equity shares of 10 each payable as:

₹ 4 on Application and Allotment; ₹ 2 on First Call; ₹ 4 on Second and Final Call.
Following is an extract of the Journal of Roxy Ltd.

You are required to complete the journal entries by filling up the missing information represented by '??', including the number of shares and narration, if any.

Savi Ltd. forfeited 50 shares of ₹ 100 each issued at a premium of 10%, on which allotment money of ₹ 30 per share (including premium) and first and final call of ₹ 40 per share were not received.

What is the minimum amount per share at which the company can reissue these shares?

An extract of the Balance Sheet of Nova Ltd. shows:

During the year 2022-23, the company raised its share capital by issuing bonus shares to the shareholders at the beginning of the year in the ratio of 1 : 5 (one bonus share was issued for every five equity shares). The balance shares were issued for cash to the public.

How many shares were issued for cash by the company?

Assertion: A company can reissue a forfeited share at an amount which is less than the amount not received on it.

Reason: A company can write off the net loss made on the reissue of a forfeited share from its capital reserve.

Which one of the following is correct?

Hero Ltd. was registered with a capital of ₹ 5,00,000 divided into 20,000 shares of ₹ 25 each, payable as:

The company offered to the public for subscription 10,000 shares. It received applications for 11,100 shares.

From amongst the applicants:

1. Vimal, who had applied for 1,200 shares, paid ₹ 6,000 on application. but was allotted only 600 shares.
2. Mohan applied for 1,000 shares, paid the full amount of ₹ 25,000 with his application but was allotted only 500 shares.
3. Vineet, who had applied for 1,500 shares, paid his application and allotment money in order but did not pay the call money.
4. The remaining applicants paid as and when due.

The surplus money paid by both Vimal and Mohan was used towards allotment and call and any surplus beyond the call was refunded. The company forfeited Vineet’s shares and later re-issued 500 of the forfeited shares @ ₹ 20 per share fully paid up.

You are required to pass journal entries in the books of Hero Ltd.

Stem Ltd. came up with an IPO inviting the public to subscribe to its Equity shares of ₹ 10 each. The issue was over-subscribed. The company allotted 80,000 shares to all the applicants making a pro-rata allotment in the ratio of 3 : 2. The face value of the share was payable in three instalments.

Based on the information given above and the following extract of ledger accounts and Cash Book (Bank Column), answer the questions that follow:

1. What are the number of shares applied for by the public?
2. What is the amount payable per share with application?
3. What is the amount payable per share with first and final call?
4. Stem Ltd. did not receive the allotment money and call money due from the shareholder Rehan, who had applied for 3,000 shares. What is the amount received by Stem Ltd. with allotment?
5. Stem Ltd. forfeited Rehan’s shares after the final call. It reissued 1,500 forfeited shares fully called up @ ₹ 13 per share
   Give the journal entries passed by the company for:
   1. Forfeiture of these shares
   2. Reissue of the forfeited shares

Answer briefly of the following question :

State any two reasons for a company to purchase its own debentures from the open market.

On 1st April, 2013, Rayon Ltd. issued 2,000, 9% Debentures of 100 each at a discount of 10%, redeemable
at par on 31st March, 2017. The issue was fully subscribed. To meet the provisions of the Companies Act,
2013, the Board of Directors decided to transfer  30,000 to Debenture Redemption Reserve on 31st March,
2014, and the balance on 31st March, 2015. On 1st April, 2016, the company made the required investment in
government securities.

The investments were encashed and the debentures were redeemed on the due date.
It is the policy of the company to write off capital losses in the year in which they occur.
You are required to pass journal entries for issue and redemption of debentures (ignore interest on
debentures).

On 1^st April, 2016, Krayon Ltd. issued 8,000. 12% Debentures of Rs. 100 each, redeemable at par after 5 years.
The issue was fully subscribed.
According to the terms of issue, interest on debentures is payable annually on 31st March. Tax deducted at
source is 20%.
You are required to pass journal entries for the year 2016-17, regarding issue of debentures and interest on
debentures.

On 1^st April, 2012, Neptune Finance Company (a listed NBFC) issued 4,000, 9 % Debentures of ₹ 100 each to be redeemed at a premium of 5% on 31^st March, 2021.

You are required to pass necessary journal entries for the issue and redemption of debentures.

Suhas Ltd. issued 1,000, 7% Debentures of ₹ 100 each to be redeemed after three years at a premium of 5%. The face value of the debentures was payable as:

₹ 20 on Application

₹ 30 on Allotment (on 1st May, 2020)

₹ 30 on First call (on 1st October, 2020)

₹ 20 on Final call (on 1st January, 2021)

All the debentures were applied and allotted.

Ali, to whom 20 debentures were allotted, paid the allotment money and the two calls on 31st March, 2021. The Articles of Association of the company provided for interest on calls-in-arrear to be charged @ 10% per annum, which Ali paid on 31st March, 2021.

You are required to pass journal entries in the books of Suhas Ltd. to record:

• The adjustment and receipt of interest on calls in arrears
• The entry to close the interest on calls in arrears account