Read the passage given below and answer the questions: K Ltd. invited applications on 3,000 Equity Shares of ₹100 each at a premium of ₹20. For application ₹50, on allotment ₹50, and on final call ₹20. Application also includes premium amount. Total applications received 4,000 and allotted on pro-rata basis and excess amount adjusted towards allotment. One shareholder holding 600 shares did not pay allotment money but paid it with the final call that was made after 2 months of allotment. Final call amount received in full.
Calculate the amount adjusted in share allotment account.
₹50,000
Total application money received = 4,000 shares × ₹50 = ₹2,00,000.
Shares allotted = 3,000, so application money required = 3,000 × ₹50 = ₹1,50,000.
Excess application money = ₹2,00,000 - ₹1,50,000 = ₹50,000 (adjusted towards allotment).
Important Questions from Accounting for Share Capital
Nawab, Shanaya, and Hritik are partners sharing profits and losses in the ratio of 5 : 3 : 2. The partnership deed provides for charging interest on drawings @10% p.a. The drawings of Nawab, Shanaya, and Hritik were ₹20,000, ₹15,000, and ₹10,000, respectively. After final accounts have been prepared, it was discovered that interest on drawings had not been charged. The adjusting entry will be:
Mr. Kunal withdrew ₹10,000 per month at the end of each month from a firm for his personal use during the year ending March 31, 2022. What will be the interest on drawings if charged @8% p.a.?
What are the accounting aspects that are involved at the time of retirement or death of a partner?
(A) Ascertainment of profit or loss up to the date of retirement or death of partner.
(B) Realisation of assets and liabilities that are shown in the books of Accounts only.
(C) Adjustment of capital.
(D) Calculation of new profit sharing ratio and gaining ratio.
(E) Treatment of Goodwill
Choose the correct answer from the options given below:
On retirement of a partner, the retiring partner’s capital account will be credited with:
Which of the following are shown in Revaluation A/c?
(A) Unrecorded Asset
(B) Workmen Compensation Reserve
(C) Decrease in fixed Asset
(D) Increase in Inventory
(E) Drawings of partner
Choose the correct answer from the options given below:
