1. COMPANY ACCOUNTS
Ch :9 Company Accounts
Important MCQ,s as per ICAI Book with Hints to Solve the same
Pg :9.8 Unit :1
Pg :9.8 Q.1 Hint :
Shareholders Equity = Total Assets - Other given Liabilities.
Pg :9.8 Q.2
Pg :9.49 to 9.62 Unit :2
Pg :9.50 Q.4 hint: (30 x 5,000) x5% x1.5/12
Pg :9.50 Q.5 to Q.9
Pg :9.51 Q.10 to Q.23
Q.10 Amount received on application= Total Application Received x Amt. per Share on Application
3,00,000 x 20 =60,00,000 .
Q.11 Application money adjusted against allotment=
Total shareholders to whom shares were alloted pro-rata- Total Shares Issued)x Application per Share
(2,40,000 -2,00,000 )x20 = 8,00,000 .
Q.12 Amt. refunded to Shareholders =
(Total Application Received -Total shareholders to whom shares were alloted pro-rata)x Application
per Share = (3,00,000-2,40,000) x 20 =12,00,000 .
Q.13 Total Amt. paid by E =
(Total Shares Alloted x Total shareholders to whom shares were alloted pro-rata)x
Application money per Share x Total Shares Issued .
4,000 x 2,40,000 x 20 / 2,00,000 =96,000 .
Q.14 Total Amt. paid by F =
(Total Shares Alloted )x(Application money per Share+Allotment Money per Share )
6,000 x (20+50) = 4,20,000 .
Q.15 Total Amt. paid by G =
(Total Shares Re-issued x(Face Value-Discount)
8,0000 x (10-1) = 7,20,000 .
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2. COMPANY ACCOUNTS
Q.16 Amt. transferred to Share forfeiture account at the time of Forfeiting E's Shares =
(Total Shares Alloted x Total shareholders to whom shares were alloted pro-rata)x
Application money per Share x Total Shares Issued .
4,000 x 2,40,000 x 20 / 2,00,000 =96,000 .
Q.17 Amt. transferred to Share forfeiture account at the time of Forfeiting F's Shares =
Shares Forfeited x ( Application money received per share+Allotment money received per Share
excluding Premium ).
6,000 x (20+30) = 3,00,000 .
Q.18 Net balance in Share Capital Account =
(Total Shares Iuued-Total Shares Forfeited-Total Shares Re-issued) x Face value per Share
(2,00,000-4,000-6,000+8,000 ) x 100 = 1,98,00,000 .
Q.19 Net balance in Security Premium Account =
(Total Shares Issued-Total Shares alloted to "E" on which Premium not received ) x Premium per Share
(2,00,000-4,000) x20 = 39,20,000 .
Q.20 Net balance in Shares Forfeiture Account =
(Total Shares of "F" Forfeited- Shares Re-issued to "G" ) X Total amt. received per Share
(6,000-4,000 ) x (20+30) = 1,00,000 .
Q.21 Net balance in Capital Reserve Account =
(Total Amt. received from "E"+Total amt. received from "F" on Shares Re-issued + Total amt. received
from "G" )-(Face Value of Shares Re-issued.
96000+2,00,000+7,20,000-8,00,000 = 2,16,000 .
Q.22 Net balance in Bank Account =
(Total Shares Issued-Total Shares Forfeited) x 120) + Amt received from " E", "F" & "G" .
(2,00000-10,000) X 120) + 96000+420000+720000 = 24036000 .
Q.23 Balance Sheet Total =
Total Assets = Total Liabilities = Balance Total = Total Bank Balance = 24036000 .
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3. COMPANY ACCOUNTS
Q.34, Q.39 , Q.40 , Q.44 , Q.45 , Q.46, Q.62, Q.70 ,Q.75,Q.83
Q.55 The amount of divedend payable =?
Proposed dividend rate ( Called-Up Equity Share Capital-Calls in Arrear)
15%(5,00,000-40,000)=69,000.
Pg :9.90 to 9.93 Unit :3
Q.4 Value of Preference Shares to be Re-deemed:
(8,00,000)+(10% of 8,00,000) 8,80,000
Add Minimum Cash Balance Required 50,000
Total Cash Balance Required 9,30,000
less Sales proceeds of Investments 4,00,000
less Opening Cash balance 2,00,000
Cash required to be raised by issue of fresh Equity Shares 3,30,000
No. of Equity Shares to be issued
Total amt. required to be raised/ value of Equity Shares including premium .
No. of Equity Shares to be issued =3,30,000 / 12 = 27,500 Shares
Premium on issue of fresh Equity Shares=
No. of Equity Shares to be issued x Premium per Share .
27,5,00 x 2 = 55,000 Rs. 55,000
Q.5 Amt to be transferred to C.R.R
Face Value of Preference Shares to be redeemed 8,00,000
less Face Value of Fresh issue of Equity Shares (27,500 x 10) 2,75,000
Transfer to C.R.R 5,25,000
Q.8, Q.10, Q.14, Q.16, Q.18
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4. COMPANY ACCOUNTS
Q.12 Bank balance as on Sept 30, 2005 = ?
Bank balance as on Aug 3, 2005 29,25,000
Add Receipt from issue of 7% Debentures (12,000 x 97.5) 11,70,000
Add Receipt from issue of 8% Preference Shares (25,000 x 100) 25,00,000
Total Bank balance available 65,95,000
less Proceeds for redemption of 6% Preference Shares (30,000 x 105) 31,50,000
less One months dividends on Pref Shares to be redeemed(
(30,000 x 100 x 6% /12) 15,000
Bank balance as on Sept 30, 2005 34,30,000
Q.13 Balance Outstanding to the Credit of Share Premium a/c
No. of Fresh Shares issued (1,98,084/21) 9432 Shares
Premium on Fresh Shares issued (9432 Shares x Rs. 1 per Share ) 9432
less Premium on redemption of 12% Preference Shares to be
Written off (2,00,000 x 4% ) 8,000
Balance Outstanding to the Credit of Share Premium a/c 1,432
Pg :9.118 to 9.121 Unit :4
Q.2, Q.5, Q.7, Q.14 ,Q.19 ,Q.24
Additional MCQ's
st
Q.1) X Ltd. issued Rs.1,00,000 12% debentures at a discount of 6% on 1 January, 2001,
repayable by five equal annual drawings of Rs.20,000 each on 31st Dec. every year. The
amount of discount to be written of each year assuming that the company closes its
accounts on calendar year basis is ---
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5. COMPANY ACCOUNTS
Options 1) Rs. 1200 each Year
2) Rs. 2,000, Rs. 1,600, Rs. 1,200, Rs. 800 Rs. 400 .
3) Rs. 1000 each Year
4) None of these
Solution : Total Discount to Written Off = 1,00,000 x 6% = Rs. 6,000
Year Debenture Ratio of Amt. of discount to
Outstanding benefit be written off
derived
(Weights)
1 100000 5 Years 2000 6,0000 x 5 / 15
2 80000 4 Years 1600 6,0000 x 4 / 15
3 60000 3 Years 1200 6,0000 x 3 / 15
4 40000 2 Years 800 6,0000 x 2 / 15
5 20000 1 Years 400 6,0000 x 1 / 15
15 6000
Ans Option ( 2 )
Q.2) On 1.4.2001, X Ltd. issued Rs.1,00,000 15% Debentures of Rs.100 each at 94% redeemable as follows :
Year end Nominal value of Total Debentures to redeemed
2 10%
3 20%
4 30%
5 40%
The amount of discount to be written off each year assuming that the company closes its
accounts on financial year basis is
(a) Rs.2,400, Rs.1,800, Rs.1,200, Rs.600
(b) Rs.1,500, Rs.1,500, Rs.1,350, Rs.1,050, Rs.600
(c) Rs.1,200 each year
(d) None of these
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6. COMPANY ACCOUNTS
Solution : Total Discount to Written Off = 1,00,000 x 6% = Rs. 6,000
Year Debenture Ratio of Amt. of discount to
Outstanding benefit be written off
derived
(Weights)
1 100000 10 1500 6,0000 x 10 / 40
2 100000 10 1500 6,0000 x 10 / 40
3 90000 9 1350 6,0000 x 9 / 40
4 70000 7 1050 6,0000 x 7 / 40
5 40000 4 600 6,0000 x 4 / 40
40 6000
Ans Option ( b )
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