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Ipsita Chakravarty
Subject: Accountancy
, asked on 5/10/17
10. (a) A, B and C are sharing profits in the ratio Of 3 : 2 : 1. C dies on 30th June, 2016. Accounts are closed on 31 st March every year. Sales for the year ending 3 1 st March, 2016 amounted to Rs. 90,00,000. Sales from 1st April 2016 to 30th June 2016 amounted to Rs. 36,00,000 The profit for the year ending 31st March, 2016 amounted to Rs. 4500000
Calculate the deceased partner's share in the current year's profits.
(b) There is no earning member in C's family and hence it is agreed to take C's daughter
into partnership with 1/10th share of profits. You are required to identify the virtues involved in making such decision.
Answer
1
Ipsita Chakravarty
Subject: Accountancy
, asked on 5/10/17
Question no 8
Q.8. A Company had Rs. 10,00,000, 12% Debentures outstanding as on 1st April, 2015. During the year company took a loan of Rs. 2,00,000 from the State Bank of India for which the Company placed with the bank debentures for Rs. 2,50,000 as Collateral Security. Pass journal entries, if any. Also show how the Debentures and Bank Loan will appear in the Company's Balance Sheet.
Answer
2
Ipsita Chakravarty
Subject: Accountancy
, asked on 5/10/17
Question 9
Q9. Sindhu Ltd. redeemed is entire outstanding 8% Debentures of Rs.100 each at a premium of 5% on 31
st
December, 2015.
Fill in missing figures in the following journal entries :
Answer
1
Vibhav
Subject: Accountancy
, asked on 4/10/17
If the Debentures are redemable on 1 April 2014 then when should the company create DRI???
Also what if the debentures are redemable on
1. 15 April 2014
2. 30 April 2014
Answer
1
Vibhav
Subject: Accountancy
, asked on 4/10/17
If the profits available for dividend distribution are insufficient to create Debenture Redemption Reserve (DRR) completely from Profits or If the company incurrs losses then How is DRR created?????
Answer
1
Vibhav
Subject: Accountancy
, asked on 28/9/17
Issue of Debentures as Secondary Collateral Security against loan is a contingent liability which only becomes active if the company fails to repay the loan
Then why is it recorded in the books of accounts as normally Contingent liabilities are not recorded rather they are shown by the way of foot note????
What is the reason/logic behind recording them???
Answer
1
Vibhav
Subject: Accountancy
, asked on 27/9/17
What is the nature of Debenture Suspense A/C as per modern and traditional classification and why????
Also why is it shown as deduction from % debentures in Balance Sheet???
Answer
1
Vibhav
Subject: Accountancy
, asked on 26/9/17
What is the advantage of issuing Debentures as Secondary Collateral Security against a loan????
I am basically issuinga debt instrument against a bank loan or changing the form of liability,
What advantage does it give to the Bank?????
If I take a Bank Loan and give Debentures as security, what benefit does it give the bank???
If the company is insolvent/bankrupt then the company is in no position to pay the principal as well as interest on Debentures.
Is this just a theory thing which has no relevance in real life???
Or are debentureholders paid before bank loan at the time of liquidation and the bank hence gets preference/priority in terms of when to get the payment
(Order of Repayment at the time of Liquidation in company accounts)
Please explain
Answer
1
Vibhav
Subject: Accountancy
, asked on 26/9/17
TDS is paid by the company on interest on Debentures given by it at a fixed rate.
It is basically an income tax paid by the company on behalf of debenture holders.
However different debenture holders have different levels of incomes and they fall in different brackets of income tax
Isnt it unfair that a debenture holder with income of ₹20,00,00,000 p.a. Gets taxed at the same rate as compared to a debenture holder whose p.a. Income is ₹20,000?????
And that too income tax
Answer
1
Vibhav
Subject: Accountancy
, asked on 20/9/17
How to close the account of GK Sons which now shows a debit balance of RS 29
Answer
2
Vibhav
Subject: Accountancy
, asked on 20/9/17
Kindly explain the treatment done in this question and why is amount due on fractional debentures calculated on the market value and not on paid up value?
also can fractional debentures be issued?
why is amount due on whole number shares calculated on paid up value and not on market value as is the case in fractional shares? also how to close the account of GK Sons as now their account has a debit balance of Rs 29?
Answer
2
Nishtha Srivastava
Subject: Accountancy
, asked on 20/9/17
Q no. 27. Luxury Cosmetics Ltd. issued 30,00,000, 9 % debentures of Rs. 500 each at a discount of 4 %, redeemable at a premium of 5 % after 4 years payable as : Rs. 200 on application and balance on allotment. Record necessary entries for issue of debentures.
Answer
2
Kartik Arora
Subject: Accountancy
, asked on 14/9/17
Solve it.
Answer
1
Nandu
Subject: Accountancy
, asked on 7/9/17
Writtig of discount ques in the study material are insufficient
Answer
1
Nandu
Subject: Accountancy
, asked on 5/9/17
Is there any other way to solve questions of writting of discount rather than taking ratios. In study material u have not solved the questions by ratio while in ncert sol u have done it by ratio
Answer
1
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What are you looking for?
10. (a) A, B and C are sharing profits in the ratio Of 3 : 2 : 1. C dies on 30th June, 2016. Accounts are closed on 31 st March every year. Sales for the year ending 3 1 st March, 2016 amounted to Rs. 90,00,000. Sales from 1st April 2016 to 30th June 2016 amounted to Rs. 36,00,000 The profit for the year ending 31st March, 2016 amounted to Rs. 4500000
Calculate the deceased partner's share in the current year's profits.
(b) There is no earning member in C's family and hence it is agreed to take C's daughter
into partnership with 1/10th share of profits. You are required to identify the virtues involved in making such decision.
Q.8. A Company had Rs. 10,00,000, 12% Debentures outstanding as on 1st April, 2015. During the year company took a loan of Rs. 2,00,000 from the State Bank of India for which the Company placed with the bank debentures for Rs. 2,50,000 as Collateral Security. Pass journal entries, if any. Also show how the Debentures and Bank Loan will appear in the Company's Balance Sheet.
Q9. Sindhu Ltd. redeemed is entire outstanding 8% Debentures of Rs.100 each at a premium of 5% on 31st December, 2015.
Fill in missing figures in the following journal entries :
Also what if the debentures are redemable on
1. 15 April 2014
2. 30 April 2014
Then why is it recorded in the books of accounts as normally Contingent liabilities are not recorded rather they are shown by the way of foot note????
What is the reason/logic behind recording them???
Also why is it shown as deduction from % debentures in Balance Sheet???
I am basically issuinga debt instrument against a bank loan or changing the form of liability,
What advantage does it give to the Bank?????
If I take a Bank Loan and give Debentures as security, what benefit does it give the bank???
If the company is insolvent/bankrupt then the company is in no position to pay the principal as well as interest on Debentures.
Is this just a theory thing which has no relevance in real life???
Or are debentureholders paid before bank loan at the time of liquidation and the bank hence gets preference/priority in terms of when to get the payment
(Order of Repayment at the time of Liquidation in company accounts)
Please explain
It is basically an income tax paid by the company on behalf of debenture holders.
However different debenture holders have different levels of incomes and they fall in different brackets of income tax
Isnt it unfair that a debenture holder with income of ₹20,00,00,000 p.a. Gets taxed at the same rate as compared to a debenture holder whose p.a. Income is ₹20,000?????
And that too income tax
also can fractional debentures be issued?
why is amount due on whole number shares calculated on paid up value and not on market value as is the case in fractional shares? also how to close the account of GK Sons as now their account has a debit balance of Rs 29?