(All India 2019) Answer: Applications were received for 97,000 shares. Answer : Some accounting systems are called double accounting systems because under this system there are two aspects of every transaction, i.e., every transaction has dual effect. (All India (C) 2014) It implies that information must be factual and verifiable. 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Accounting provides permanent records for all business transactions and provides reliable information to various parties. Journalise the following transactions, post to the ledger: WebSubfields of Accounting. On first call -13 On second and final call 4 The number of long-term unemployed (those jobless for 27 weeks or more) was little changed at 1.2 million in November. Question 23. Yes. (i) To applicants for 90,000 shares 40,000 shares Assets help in identifying the benefits of a business, to some extent. 50,000Cost of goods sold = Rs. Pass necessary journal entries for the above transactions in the books of BMY Ltd. (All India 2015) Answer: Z Ltd purchased furniture costing 2,20,000 from CD Ltd. What is meant by calls-in-arrears? It is affected by window dressing which means manipulation of accounts so that financial statements describe a more favourable position than the actual position. 6,00,000.Solution 1 Trading Account for the year ended March 31,2017. Answer: This publication was updated on April 11, 2022, to address the SECs March 30, 2022, proposed rule on special-purpose acquisition companies, which is discussed in further detail below. On application and allotment 14 per share (including premium of? On first call 3 per shares Income- Income means profit earned during an accounting period from any source. Dividend: A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders. They also issued around Rs.5,00,000 in preference share, and redeemed around Rs. (Delhi 2014 Modified) Give a specimen of journal showing at least five entries. From the foltowing Particulars of Bharat Gas Limited, calculate cash flows from investing activities. (All India 2010) (c) Bank account, Question 103. Accounting information should be prepared and presented in such a way that is able to depict a clear view of business enterprise. Question 5. Pass necessary journal entries for the above transactions in the books of EF Ltd by opening callS-in-arrears account. 15,60,000 40% = Rs. 15,000 during the year. Samyesh, holding 2,000 shares did not pay the final call. On allotment 4 per share (All India 2019) Our revision notes for CBSE NCERT books for Class 11 Accountancy provide simple and comprehensible study material as per the syllabus. Answer : The fundamental steps in the accounting process are diagrammatically presented below. (b) If the net profits made during the year are Rs. On 3,000 shares 3 per share From the following Information, calculate cash flow from investing and financing activities The re-issued shares included all the forfeited shares of Ashok. Thus, if Rs. Point of Knowledge:-Direct expenses are those expenses incurred up to the point of taking them to the place of business for sales of products. Auditing of Financial Statements. (b) public offer 100 55). (All India 2017) Are debits or credits listed first in journal entries? An accountant of a company can make a complete record of transactions in the accounts book. Out of the forfeited shares, 1,500 shares were re-issued at 8 per share fully paid-up. (c) Expenses paid in advance at the end of the year arethe profit made during the year (added to/deducted from). During this period, only skeletal services shall be maintained and all major / important activities including payment of global pre bid EMD and other online payments for auctions shall remain suspended. It also includes classifying, summarizing, analysing and also communicating the results to users. Question 11: Give two examples of each of Fixed Assets and Current Assets. Calculate the amount received on allotment. Refer to Q. no. Your accounting method includes not only your overall method of accounting, but also the accounting treatment you use for any material item. Question 19: From the following balances prepare Final Accounts as at 31st March 2017:-. (a) Share application account Cash Flow from Financing Activities Financing activities are the activities which result in change in the size and composition of the owners capital (including preference share capital) and borrowings (including debentures) of the enterprise from other sources. (Delhi 2015) 60,000, Computation of Cost of Goods Sold:-Cost of goods sold = Opening Stock + Purchases + Direct Expenses Closing StockCost of goods sold = Rs. with that of previous years and helps businessmen to make decisions. Real gross domestic product (GDP) increased at an annual rate of 2.9 percent in the third quarter of 2022, in contrast to a decrease of 0.6 percent in the second quarter. Answer: Question 88. 3. Pass necessary journal entries for the above transactions in the hooks of K Ltd. (All India 2016) (m) Bobby withdrew Rs 20,000 from the business. Answer: Answer: Question 83. Give any one purpose for which the amount received as securities premium reserve may be utilised. Source document in accounting is important because of the below given reasons. Therefore, share first and final call received = 2,21,625 (2,25,000 3,375). 46 on page 336 and 337. Answer: Answer: Question 79. : It is the amount used in order to produce and sell goods and services. Securities premium reserve can be utilised in writing-off preliminary expenses of the company. The cash accounting method is the simplest method. The future is on the ballot. Answer : A transaction should be recorded first in a journal because journal provides complete details of a transaction in one entry. Credits are indented. Cash basis of accounting has low accuracy. Drawing: Any cash or goods withdrawn by the owner for personal use made out of business funds are known as drawings. On first and final call 2 per share (d) None of these Income also means excess of revenue over its cost during an accounting period. The directors forfeited those shares on which less than 6 per share were received. Ans. (b) Redeemable preference shares And free from errors. The re-issued shares included all the shares of Ram. Classification refers to the grouping of all the transactions of same nature at one place. 1. Can the company proceed for the allotment of shares? CBSE Class 12 Accountancy Prepare an extract of balance sheet of Suhas Ltd as per Revised Schedule III, Part I of the Companies Act, 2013 disclosing the above information. The basic concepts of accounting are introduced in the syllabus of Class 11. Providing for the premium payable on the redemption of redeemable preference shares or debentures of the company. (iv) Outstanding expenses increased by Rs. Final call was not made. Dividend: A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders. Mohit traders; post them to the Ledger from the following transactions: Under cash basis of accounting financial statements cannot be audited (All India 2011) Later on, these shares were re-issued for 4,000 as fully paid-up. Reserve capital is a part of uncalled capital. Give journal entries of M/s. Afterwards final call was made, Ganesh, who had applied for 2,700 shares failed to pay the final call. Pass necessary journal entries for the above transactions in the books of Jeevan Dhara Ltd. (Delhi 2015) 0 Rs. 18 (CBSE 2018) (All India 2015) Q1. The long-term unemployed accounted for 20.6 percent of all unemployed persons. Similarly, short term marketable securities which can be readily converted into cash are treated as cash equivalents. Journalise the following transaction in the books of Sanjana and post them into the ledger: Securities premium can also be utilised for three other purposes besides (i) issuing fully paid bonus shares and (ii) buy-back of shares. (c) debited with premium amount Assets- These include all properties or legal rights owned by a firm for its operations, such as cash in hand, plant and machinery, bank, land, building, etc. (All India 2016) Question 12: What do you mean by Contingent Liabilities? The accountancy syllabus in class 11 is carefully tailored to educate the students with basic concepts and theories of accountancy. Journal is also known as book of original entry, because with the help of source document, transactions are originally recorded in books. Sundram to whom 7,000 shares were allotted failed to pay the allotment money. (b) Fill in the blank spaces in the journal entries given below Half of the forfeited shares were re-issued @ 8 per share fully paid-up. Applications for 20% shares were rejected and the money refunded. Record the journal entries for forfeiture and re-issue of shares in the following cases ABC Ltd received application money on its issued share capital, which account is debited while recording this transaction? The amount was payable as follows (c) Both (a) and (b) Similarly, drawings from capital and net loss reduce the capital, and so, capital is debited. (All India 2019: Compartment 2018) Accountancy is one of the core subjects in the commerce curriculum. With the help of an example, briefly explain the alternatives available for allotment of shares in case of over subscription. Inventory in beginning and end has no effect. It is done by deducting the express operating profit from the gross profit. It was decided that excess amount received on applications will be adjusted towards sums due on allotment and surplus if any, will be refunded. The long-term unemployed accounted for 20.6 percent of all unemployed persons. in the order of occurrence with the help of source documents. Question 1. Current Assets Current Assets are the holdings entered in an entitys balance sheets that are presented either as cash or as a materialistic asset that can be transformed into cash. The first and final call was made. The way of recording in a journal is quite different from normal recording. WebAn accounting method is a set of rules used to determine when and how income and expenses are reported on your tax return. 39 on page 328 and 329. Classifying: After recording the transactions they are classified. (iii) Excess applications partly rejected and partly adjusted towards further calls. This site is owned and operated by Big Blue Interactive, LLC. Excess money received with applications was adjusted towards sum due on allotment. (b) 12% (a) Amount forfeited on re-issued shares = 12,000 x \(\frac{1,500}{2,000}\) = 9,000 Capital Reserve = 10300. 6,50,000 + Rs. Question 6. Q4 . 57,200 for the year ended 31st March, 2017. The resulting figure arrived is the closing balance of cash and cash equivalents. The amount was payable as follows 50,000 as depreciation was Rs. issue price and face value are same. (All India 2013) Answer Rs. Gopal, a shareholder holding 200 shares, did not pay the allotment money and Madhav, a holder of 400 shares, paid his entire share money along with the allotment money. 4,200 of these shares were re-issued for 100 per share as fully paid-up. Prepare accounting equation on the basis of the following: The very elementary concepts of accounting are introduced in the first chapter of Class 11 Accountancy. Go through these Class 12 Accountancy Chapter 6 Accounting for Share Capital Class 12 Important Questions and Answers Solutions & Previous Year Questions to This publication was updated on April 11, 2022, to address the SECs March 30, 2022, proposed rule on special-purpose acquisition companies, which is discussed in further detail below. Journalise the following transactions in the books of Himanshu: This site is owned and operated by Big Blue Interactive, LLC. Webpjcas18 11/25/2022 6:32 pm : 1548: 86: pjcas18 12/8/2022 6:01 pm - - - - - - - - - - - - Page: 1: Part of the USA Today Sports Media Group BigBlueInteractive SM provides news, analysis, and discussion on the New York Football Giants. His shares were forfeited. All calls were made. Relevance: Accounting information must be relevant to the objectives of enterprise. The forfeited shares of Deepak and Raju were re-issued at 11 per share fully paid up. Enter the following Transactions in the Journal of Mudit : Working Notes: Question 70. Question 50. Prepare a Trading and Profit and Loss Account for the year ended on 31-3-2016 and the Balance Sheet as at that date. The amount was payable as follows Prepare cash flow statement from the following information On first call share 4 per share Having the chance to connect with my mentor helped me map out a business plan and a timeline for my business startup projection.". Step 4 Sum up the total of all the three steps and ascertain net increase or decrease. The balance left in the share forfeited account after the re-issue is transferred to the capital reserve account. Q9. Gopal, who applied for 600 shares, paid his entire share money with application. Question 2. What is the difference between bookkeeping and accounting? NCERT Solutions for Class 11 Computer Science (Python) A cash flow statement helps in determining the various causes for change in the cash balances during an accounting period. Hence, rent is debited. Applications for 1,80,000 shares were received. The cash accounting method is the simplest method. On final call 8 per share (including premium of 5) The amount per share was payable as follows Salaries of employees will be considered as operating activity related to the expenditure. Applications for 1,50,000 shares were received and allotment was made to all the applicants on pro-rata basis. You can refer to the revision notes of this chapter on Vedantu, for a better understanding of all the concepts. Solution 11: Example of Fixed Assets:-1.) Share capital = 5,74,000. WebDK Goel Accountancy Solutions for Class 11 and 12. Question 4. On 750 shares 2 per share Cash purchase of goods worth Rs 400, supported by cash memo WebHow the EU budget works: where the money comes from and how it is spent, the EU as a borrower on the capital markets, spending and revenue by programme and by country, and the EU's focus on performance-based budgeting. (All India (C) 2016) Interest received on debentures held as investment Rs.60,000 Dividend received on shares held as investment Rs.10,000 Foltowing is the Balance Sheet of Computer India Ltd 10,000 and Rs.20,000 respectively, then the cash from operating activities will be equal to Rs..(Rs. Applications for 70,000 shares were received. Students can easily understand the concepts given in the first chapter of class 11 accounting by reading the notes from the Vedantu website or from the Vedantu app at free of cost. (All India 2011) Nikhil Ltd purchased a running business from Sonia Ltd for a sum of 22,00,000 by issuing 20,000 fully paid equity shares of 100 each at a premium of 10%. Sundram Ltd purchased furniture for 3,00,000 from Ravindram Ltd, 1,00,000 were paid by drawing a promissory note in favour of Ravindram Ltd. Particulars- Details of business transactions like, name of the parties involved and the name of related accounts, are recorded. It is mandatory to create capital reserve in case of Cash flows are classified and presented into operating activities (either using the 'direct' or 'indirect' method), investing activities or financing activities, with the latter two categories generally presented on a gross basis. Another shareholder holding 200 shares failed to pay the allotment money. X Ltd invited applications for issuing 5,00,000 equity shares of 10 each at par. Amount due at the time of first and final call (45,000 500) x 5 = 2,22,500 Cash A/c Dr. Solution 8: An asset that is more readily convertible into cash such as cash in hand is first written according to this process and then proceeds those assets that are relatively less readily convertible so that the least liquid asset such as goodwill is last seen. They can be redeemed as provided by the articles and terms of issue. Janta Ltd had an authorised capital of 2,00,000 equity shares of 10 each. (c) Irredeemable preference shares Working Note:-Balance Sheet is prepared with a view to measure true financial position of a business at a particular point of time. (iii) Financing Activities :These are the activities that result in changes in the size and composition of the owners capital and borrowings of the enterprise. The three examples of revenue are as follows: 2. Guidance notes indicate that an investment normally meets the definition of a cash equivalent when it has a maturity of three months or less from the date of acquisition. You choose an accounting method when you file your first tax return. 5,40,000Gross Profit = Rs. Interest on investment was received on March 31, 2011. The issue was over-subscribed three times. (a) AoA The expenses connected to a companys regular functions are termed operational profits. DK Goel Solutions Class 11 Chapter 21 solutions are free and will help you to prepare for Class 11 Accountancy. (ii) Forfeited shares can re-issued at any rate of discount. Question 4: Calculate Gross Profit on the basis of the following information: Solution 4:Computation of Gross Profit:-Gross Profit = Net Sales COGS (Cost of goods sold)Gross Profit = Rs. When forfeited shares are re-issued at premium, then premium account is 15,00,000Closing Stock = Rs. What is meant by a share? Revision Notes for Class 11 Accountancy offered by Vedantu is a step-by-step coverage of all the topics of Class 11 Accountancy Chapter 1. (i) Cash Flow from Operating Activities :These are the principal revenue producing activities of the enterprise and other activities. NCERT Solutions For Class 11 Financial Accounting Recording of Transactions-I Short Answer Type Questions Q1. The accounting information of an entity must be also compared to its own information taken out over the years; this will help the management to know their progression and the entitys trend can also be determined. Applications for 1,00,000 shares were received. There are 2 accounting methods: Cash and accrual. A balance sheet compiles the financial transactions of a company arranged in chronological order in accordance with dates. The objective of IAS 7 is to require the presentation of information about the historical changes in cash and cash equivalents of an entity by means of a statement of cash flows, which classifies cash flows during the period according to operating, investing, and financing activities. Show the effect of the following transaction on the accounting equation: (ii) Prepaid expenses increase by Rs. They are considered as an evidence of transactions and can be presented in the court of law. 1,80,000 and some investments were sold at a profit of Rs.20,000. On Application 3 per share (including premium 1) Originally developed as instruments for the corporate debt markets, after 2002 CDOs became vehicles for refinancing mortgage-backed securities (MBS). Why are some accounting systems called double accounting systems? On application and allotment : 20 per share Answer: What are the characteristics of accounting Class 11? On second and final call Balance amount Depreciation charged on plant amount to Rs. The payment was to be made by issuing of 9% preference share of 100 each at a premium of 10 per share. Satyam, the holder of 500 shares failed to pay the first and final call. The issue price was payable as under 9. Download our revision notes for all subjects now and start your exam preparations! (Delhi 2017) On allotment 3 per share (including premium 1) The forfeited shares were re-issued at 90 per share as fully paid-up. (ii) Excels application fully adjusted towards allotment and calls. Accounting involves the process of recording financial transactions of a business, analysing them, summarising the financial statements, to create a consolidated report. Example-Advertisement. Answer: (+) Calls-in-advance (750 x 3) = 2,250 Question 3. All the money was duly received. Differentiate between source documents and vouchers. WebJudicial Watch, Inc. is a conservative, non-partisan educational foundation, which promotes transparency, accountability and integrity in government, politics and the law. Financial Accounting: The main purpose of this branch is to record the business transactions in a systematic manner, to ascertain profit or loss and to present the financial position of the business with the help of a balance sheet. (ii) Based on secondary data. Answer: Also prepare notes to accounts, (comportment 2018) Rohit has the following transactions: 4. Read below DK Goel Solutions Class 11 Chapter 21 Financial Statements. 6. Answer: Question 48. After that the following entries were left incomplete by him. (d) 900 Beauti tradeRs Also post them in the ledger. The journal entry is: Question 5. Web(See table A-11.) On application and allotment 9 per share (including premium) Answer: Question 66. WebAccounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations. Sandesh Ltd took over the assets of 7,00,000 and liabilities of 2,00,000 from Sanchar Ltd for a purchase consideration of 4,59,500, 8,500 were paid by accepting a draft in favour of Sanchar Ltd payable after three months and the balance was paid by issue of equity shares of 10 each at a premium of 10% in favour of Sanchar Ltd. Pass necessary journal entries for the above transactions in the books of KS Ltd. (Delhi 2016) Students can extensively benefit from these one-on-one classes, as they receive personalised coaching. On first and final call 10 (including 5 premium) preferred shares acquired within three months of their specified redemption date). The amount was payable as follows (a) 750 Deposits into bank worth Rs 500, supported by pay-in slips. 50,000 and the bills receivables have decreased by Rs. It may be in the form of a cash memo, invoice or receipt. Working Note: Under US GAAP, this category incorporates the cash received from customers, paid to suppliers, paid for operating costs, paid for income taxes, received from interest or dividends, and paid for periodic interest costs. Ans. Q8. Present the share capital in the balance sheet of the company as per Schedule III, Part I of the Companies Act, 2013. Additional Informations What is the purpose of posting J.F numbers that are entered in the journal at the time entries are posted to the accounts? Cash Discount: When discount is allowed to customers for making prompt payment.It is always recorded in books of accounts. 30,000 during the year. Value of Closing Stock was Rs. Trial balance. Formally, a string is a finite, ordered sequence of characters such as letters, digits or spaces. On allotment 1 per share These words serve as exceptions. The amount was payable as follows Forfeited Shares Amount = 20000 Present the share capital in the balance sheet of the company as per the provisions of Schedule III of the Companies Act, 2013. 3,60,000 Rs. Prepare the Accounting Equation to show the effect of the above transactions on the assets, liabilities and capital. Answer: Capital has credit balance, if capital increases, then it is credited. The cash accounting method is the simplest method. 2. Cash and cash equivalents comprise cash on hand and demand deposits, together with short-term, highly liquid investments that are readily convertible to a known amount of cash, and that are subject to an insignificant risk of changes in value. This transaction affects two accounts with the same amount simultaneously. 4. 9,36,000, Computation of Gross Profit:-Gross Profit = 40% of SalesGross Profit = Rs. Accounting, which has been called the "language of business", measures the results of an organization's economic activities and conveys this All entities that prepare financial statements in conformity with IFRSs are required to present a statement of cash flows. His shares were forfeited. What is meant by capital reserve? Additional Information Interest paid on debenture ? (b) Balance sheet 6,24,000. On application 15 per share (including 12 premium) On first call : 5 per share (including 1 premium) Part of capital of a company which is called-up only on winding up is called reserve capital. Out of the forfeited shares 4,000 shares were re-issued @ 50 per share fully paid-up. Web11 comments. Answer: Q6. Answer: On 1st January, 2016 the first call of 3 per share became due on 1,00,000 equity shares issued by Kamini Ltd. Karan, a holder of 500 shares did not pay the first call money. 16,000; Carriage Inwards Rs. 50,000Direct Expenses = Rs. Here are the Proforma of cash flow statement from both the methods. The law temporarily raised the estate tax exemption for single filers to $11.2 million from $5.6 million in 2018, indexed for inflation. (i) X Ltd forfeited 200 shares of 100 each, 70 called-up, on which the shareholders had paid application and allotment money of 50 per share. Answer : Q16. Give its two examples. This amount is to be paid within 30 days. 25% on Sales, Solution 10:Gross Profit = 25% on salesWe know,25% = 1/41/4th on sales = 1/3th on Cost, Computation of Gross Profit:-Gross Profit = Rs. VXN Ltd invited applications for issuing 50,000 equity shares of 10 each at a premium of 8 per share. Working Notes: In this example, we are going to show these items separately From the foltowing Batance Sheet of Tiger Super Steel Ltd, prepare Cash flow statement. (All India 2017) Web"Working with my mentor provided and continues to provide me with an outsider outlook on my business who can always show me the objectives and be a sounding board to problem solve. Answer: Question 58. Answer: (b) Purchased land and a small office building. Can securities premium reserve be used as working capital? NCERT Solutions For Class 11 Financial Accounting Recording of Transactions-I Short Answer Type Questions Q1. On Allotment 4 per share (including premium 1) (All India 2019) It should give relevant and true information about accounts. In this case, the maximum amount of discount at which shares can be re-issued is (1,000 x 5) = 5,000. The company issued 1,00,000 shares for public subscription. And expenditure related operating activity would be payments to staff, reporters, photographers, etc. Compute the cash flow from operating activities by the indirect approach. When money comes in, revenue is Kumars shares were forfeited immediately after allotment. Pass necessary journal entries in the books of Nikhil Ltd for the above transactions. The official source for NFL news, video highlights, fantasy football, game-day coverage, schedules, stats, scores and more. Capital Reserve = 13,200, Question 91. (Delhi 2019) Question 13: Calculate operating profit from the following: Solution 13: Computation of Operating Profit:-Operating Profit = Net Profit Non-Operating Income + Non-Operating ExpensesOperating Profit = 5,00,000 30,000 + 77,100 = Rs 5,47,100, Non-Operating Income = Dividend Received + Rent ReceivedNon-Operating Income = 6,000 + 24,000 = 30,000, Non-Operating Expenses = Loss on Sale of Furniture + Loss by Fire + Interest on Loan + DonationNon-Operating Expenses = 12,000 + 50,000 + 10,000 + 5,100 = Rs 77,100, Question 14: A merchant has earned a Net Profit of Rs. The items in the inventory of a business, or the property such as buildings owned by the business, or the liquid cash that facilitates the business to thrive- all can be categorised as assets of the business. NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12, CBSE NotesCBSE Notes AccountancyNCERT Solutions Accountancy, 1. Pass the necessary journal entries in the books of A Ltd. Open calls-in-arrears account and calls-in-advance account wherever required. The issue was fully subscribed and the shares were allotted fully to all the applicants. Indirect Method :Following is the indirect method formula which is used to calculate cash flow from operating activities. (iii) If these shares were re-issued at 50 per share fully paid up, what will be the amount of capital reserve? Answer: (All India (C) 2014) We have given theseAccountancy Class 12 Important Questions and Answers Chapter 6 Accounting for Share Capital to solve different types of questions in the exam. Working Note Machine costing Rs. Cash flows from investing activities are those involving non-current capital assets used in the firms operations, such as Property, Plant, Equipment (PP&E) and intangible assets. Answer: Question 64. There are two methods viz Direct Method and Indirect Method for the preparation of cash flow statement. The issue was fully subscribed and the company allotted shares to all the applicants. (c) asset Solution 7:Net Sales = Rs. Prepare a format of cash flow from operating activities under direct method and indirect method. WebA collateralized debt obligation (CDO) is a type of structured asset-backed security (ABS). On allotment 25 per share Jeevan holding 800 shares failed to pay the allotment money and his shares were immediately forfeited. Denspar Ltd invited applications for issuing 2,00,000 equity shares of 10 each at a premium of 20 per share. Solve as Q no. All the forfeited shares were re-issued at 9 per share fully paid-up. (All India 2019) 60,000; Closing Stock Rs. Question 3. What amount will be received at the time of allotment? Answer: L.F.- Page number of ledger account when entry is posted. Give the meaning of forfeiture of shares. Question 38. Afterwards the first and final call was made. When money comes in, revenue is On Application 2 per share Why is the evidence provided by source Why is the evidence provided by source Equity investments are normally excluded, unless they are in substance a cash equivalent (e.g. From the following information, prepare cash flow statement for Yogeta Ltd. During this period, only skeletal services shall be maintained and all major / important activities including payment of global pre bid EMD and other online payments for auctions shall remain suspended. (-) Amount utilised at the time of re-issue = 235 Having the chance to connect with my mentor helped me map out a business plan and a timeline for my business startup projection.". Question 6. Web11 comments. Pass necessary journal entries for the above transactions in the books of L Ltd. (Delhi (C) 2014) How the various activities are classified (as per AS-3 revised) while preparing cash flow statement? Answer A cash flow statement shows inflow and outflow of cash and cash equivalents from various activities of a company during a specific period. DF Ltd invited applications for issuing 50,000 shares of 10 each at a premium of 2 per share. Debit Amount- Amount of debit account is written. Answer : Q17. Closing Stock was valued at Rs. Pass necessary journal entries to record the above transactions in the books of Bhagwati Ltd. (All India 2014) Gupta who had applied for 1,200 shares failed to pay the final call. WebCorporate finance is the area of finance that deals with the sources of funding, the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources. On allotment: 13 per share (including 10 premium) Question 13. KS Ltd invited applications for issuing 1,60,000 equity shares of 10 each at a premium of 6 per share. (a) Number of shares re-issued (Paid-up value per share Re-issue price per share), Question 111. Preference shares are paid dividend at a fixed rate. Sargam Ltd invited applications for issuing 80,000 equity shares of 100 each at a premium. The amount per share was payable as follows Cash Flow Statement Cash flow statement is a statement showing the changes in financial position of a business concern during different intervals of time in terms of cash and cash equivalents. Answer: Capital Reserve = 7,000, Question 99. The number of long-term unemployed (those jobless for 27 weeks or more) was little changed at 1.2 million in November. What is meant by over subscription of shares? Answer: All calls were made. More Resources for CBSE Class 12 On first and final call : Balance Answer : J.F. Current liabilities: It refers to those which are to be paid in the near future. On Allotment 2 per shares Share Application and Allotment received on 1,500 shares of 9 each (i) Purchased furniture for 2,50,000 from M/s Furniture Mart. Prepare Journal from the transactions given below : Question 8. 3. When forfeited shares are re-issued at a discount, the discount cannot exceed the amount forfeited on re-issued shares. All calls were made and were duly received except the final call of? 15,000. (Delhi 2019: All India (C) 2016) Afterwards 4,000 shares were re-issued @ 8 per share fully paid-up. Answer: Give the meaning of called-up capital. Part of capital of a company which is called-up only on winding up is called reserve capital. It refers to the amount that debtor has not paid even after repeated reminders and has no intention of paying in the future. Answer: It means such capital as the company issues from time-to-time for subscription. The Accounting Notes from the chapter allow students to grasp difficult concepts such as recording financial and economic events, analysis of events to understand its classification, etc. Ans. (100 7) = 700. 8,00,000Gross Profit is 40% on Sales, Solution 6 (A):Net Sales = Rs. [IAS 7.10]. 34 on page 285. 4,80,000, Question 6 (B): Calculate gross profit and cost of goods sold from the following information:Net Sales Rs. Answer: Question 73. (Delhi 2010) And the expenditure related operating activity would be payment for raw material (iron, coal), salaries to staff, etc. Just scroll down and read through the answers provided below, Students can refer below for solutions for all questions given in your DK Goel Accountancy Textbook for Class 11 in Chapter 21, Short Answer Questions for DK Goel Solutions Class 11 Chapter 21. Question 19. It refers to those which are to be paid in the near future. Answer: Question 71. Pass necessary journal entries for the above transactions in the book of XL Ltd. Open calls in-arrears and calls-in-advance account whenever required. All the forfeited shares were re-issued at 9 per share fully paid-up. (iv) Historical cash flow information is often used as an indicator of the amount, timing and certainty of future cash flows. (v) Operating expenses inctuded depreciation of Rs. Capital Reserve = 2,500. (v) Used for assessment of cash flow from various activities, viz operating, investing and financing activities. Answer: NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12, NCERT Solutions CBSE Sample Papers AccountancyClass 12 Accountancy, Question 1. (ii) If yes state the minimum amount at which these shares can be re-issued? (a) pubic issue Directors decided to forfeit those shares on which allotment and call money was due. 32 on page 317-320. (d) None of these On first call Balance of the calledup amount It is a record of all business transactions relating to a particular person or item. The payment of 12,00,000 was made by issue of fully paid equity shares of 10 each and balance by a bank draft. Payment worth Rs 1,200 through bank, supported by cheques Present the share capital in the balance sheet of the company as per Schedule III of the Companies Act, 2013. 3,00,000 in long term debt. BMY Ltd invited applications for issuing 1,00,000 equity shares of 10 each at a premium of 10 per share. Second and final call was made afterwards and was duly received. These include both the equity investments of stockholders (owners) and the loans from bondholders and other creditors. Applications for 4,00,000 shares were received. Gain: It is a monetary benefit resulting from events or transactions which are incidental to business like profit on sale of fixed assets. 5,40,000, Computation of Net Purchases:-Net Purchases = Purchases Purchases ReturnNet Purchases = Rs. (All India (C) 2016) The Class 11 Accountancy Chapter 1 Revision Notes are prepared by professional teachers in easy language. Step 3 The third step is to ascertain the cash flows from financing activities. Cash, client, office supplies, motor car, building, land, long term payables, capital, withdrawals, salary, expense and utilities expense. The re-issued shares included all the forfeited shares of Jeevan. Pass necessary journal entries for the above transactions in the books of X Ltd. Open calls-in-advance account and calls-in-arrears account wherever necessary. On first call 4 per share (including 2 premium). Cash Equivalents Cash equivalents are short-term highly liquid investments that are j readily convertible into known amount of cash and which are subjected to an insignificant risk of change in value. Vipin Traders are given below. Businesses that are corporations or have gross revenue over $5 million per year are required to use the accrual method, according to the IRS. Capital reserve = 940. With our Class 11 Accountancy Notes PDF download, students can study at their convenience. First Call Money Received = 19,92,000 What is the name given to the part of capital of a company which is called-up only on winding up? Question 8. Our offered Introduction to Accounting PDF is structured and written by experts with many years of experience in teaching. Question 10. Loss: The excess of expenses over related revenue is known as loss. 5,00,000 into a special decommissioning fund. WebAn accounting method is a set of rules used to determine when and how income and expenses are reported on your tax return. Vibhuti, who was alloted 6,000 shares out of the group applying for 4,00,000 shares did not pay the allotment money and his shares were forfeited immediately. It will further help them to exercise such knowledge in further chapters in Accounts Class 11. Net profit for the year after charging Rs. On application 3 per share (i) Cash flow from operating activities. (i) Hotel (ii) Film production house All textbook questions are available online from where students can download a PDf file. Solve as Q. no. The journal entry is: Answer: 9,000, Computation of Net Purchases:-Net Purchases = Purchases Purchases ReturnNet Purchases = Rs. A plot of land had been purchased for investment purposes and was let out for commercial use and rent received Rs. All textbook questions are available online from where students can download a PDf file. Capital Reserve = 40,500 Applications for 1,00,000 shares were rejected and pro-rata allotment was made to the remaining applicants. If the liability increases, then it is credited and if the liability decreases, then it is debited. On first and final call Balance amount (d) Paid-up value Re-iasuejniceper share Question 97. Investments in shares are excluded from cash equivalents unless they are in substantial cash equivalents, e.g., preference shares of a company acquired shortly before their specific redemption date provided there is only insignificant risk of. A shareholder Ram, who was allotted 2,000 shares, failed to pay the allotment money. number helps in locating the entries of accounts in the journal book. Web(See table A-11.) Are debits or credits indented? Ramesh failed to pay his allotment money which was t 2,000. (ii) Investing Activities: These are the acquisition and disposal of long-term assets, other investments not included in cash equivalents. Remaining applications were rejected. Her shares were forfeited. Question 60. In the above example, we saw that the company made investment in fixed assets and used Rs.40,00,000. Receipt of cash from a non-cash item is termed as cash inflow, while cash payment in respect of such item is termed as cash outflow. Decrease in expense IAS 16 outlines the accounting treatment for most types of property, plant and equipment. Suresh did not pay the first call on 500 shares applied by him. From the following information calculate net cash from operations, Question 1. XL Ltd invited applications for issuing 1,00,000 equity shares of 10 each at par. Journalise the following transaction in the Books of the M/s. 4,50,000 1/3Gross Profit = Rs. Drawings are debited as they decrease the capital. WebFor both Class 11 and 12 Commerce students, the five subjects that are mandatory are Accountancy, Business Studies, Economics, Mathematics/ Informatics Practices and English. Explain the major Cash inflows and outflows from financing activities. The journal entry is: Bank A/c Dr. Which account will be debited while recording the issue of shares? 3,36,000, Question 6 (A): Calculate gross profit and cost of goods sold from the following information:Net Sales Rs. The following is the profit and loss account of Yamuna Limited Objectives of Cash Flow Statement Shares of both Manu and Madhur were forfeited. Solve as Q no. State 2. All calls were made and were duly received except on 100 shares held by Rajani, who failed to pay the second and final call. What are preliminary expenses? What is meant by employee stock option plan? Also prepare notes to accounts. Bookkeeping does not give a proper financial position of a company whereas accounting gives proper information about the financial position of a company and helps to make a further decision. Out of the forfeited shares 1,000 shares were re-issued at 50 per share fully paid-up. 15,000 Rs. 7 on page 275 and Q. no 26 on page 281. Calculate the maximum amount of discount at which these shares can be re-issued. i.e. basis for industry classification from the 2017 North American Industry Classification System (NAICS) to NAICS 2022. It explains the reasons of receipts and payments in cash and change in cash balances during an accounting year in a company. It refers to the amount invested by the owner in a business. It is the part of operating activity as expenditure. To ascertain the net profit or loss suffered on account of business transactions during a particular period and to know the exact reasons leading to profit or loss. (b) 50 The company did not make the first and final call. 9,36,000 = Rs. On application 2 per share It helps in verifying the transaction during the auditing process. The motor car was worth Rs 90,000. (i) Profit for the year 2010-11 is a sum of Rs. (All India 2014) Her shares were also forfeited. Pass necessary journal entries for the above transactions in the books of RK Ltd. (All India 2012) Depreciation for the year was Rs. column of Mr As Account. Question 2. No, the shares cannot be allotted because subscribed shares are less than 90%, i.e. Here, loan from bank is a liability to the firm. 1,000; Gross Profit Rs. (iv) Assists in preparation of cash budget. The first call money and the second and final call money was called and duly received. Question 49. Calls-in-advance means the amount paid by shareholders is in excess of the amount due from them. Calculate the amount to be transferred to capital reserve account? Cash flow arising from financing activities are exhibited as follows: On first and final call 10 per share His shares were also forfeited. The amount invested could be in the form of cash, goods, etc. Explain the major cash inflows and outflows from investing activities. 20,000 Rs. There are five types of Accounts. 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(Delhi 2010) Operating profit refers to the profits earned by a company from its core business operations, which excludes interest and tax deductions. These answers have been developed based on the latest Class 11 DK Goel Accountancy book used by commerce stream students issued for current year and the questions given in each chapter. This suggests liabilities on the left side and assets on the right side. Shahid, who had applied for 2,000 shares out of the group applying for 2,00,000 shares failed to pay first and final call and his shares were also forfeited. Rishabh, a shareholder, who applied for 1,500 shares and belonged to Category (ii), did not pay allotment, first and second and final call money. 2,50,000. Show the effect of the following transactions on Assets, Liabilities and Capital through accounting equation: Indentation is leaving a space before writing any word. : A voucher is a written document which is created in support of a particular transaction. Number of Shares to be Issued to Ravindram Ltd = \(\frac{2,00,000}{10+2.5}\) = 16,000 shares. IAS 7 was reissued in December 1992, retitled in September 2007, and is operative for financial statements covering periods beginning on or after 1 January 1994. What interest rate is applicable on calls-in-advance amount as per Company Act, 2013? What rate of interest the company pays on calls-in-advance, if it has not prepared its own Articles of Association? Why I Focus on Social Media Marketing Over SEO; The easiest way to get more blog traffic; How I grew my email subscriber list to 873,049 subscribers; Amazon SEO Tutorial For Beginners; Do Minimalist Website Designs Help or Hurt Your SEO? Tax Accounting: This branch is used for tax purposes. Applications for 2,00,000 shares were rejected and money refunded. Excess money paid on application is to be adjusted against the amount due on allotment and calls. Note Debtors and creditors account can also be prepared to calculate cash receipt or cash paid. J.F. Answer: The amount was payable as follows Thus the rules of debit and credit are same for both liability and capital. Kristen Richards, Owner, Front Porch The financial position of the business can be understood at a glance. Overview. EF Ltd invited applications for issuing 80,000 equity shares of 50 each at a premium of 20%. 10) Answer: Working Note: Explain the terms : Cash equivalents, Cash flows. IAS 16 outlines the accounting treatment for most types of property, plant and equipment. WebMSTC Data Centre shall be relocated from its present location to New Town Kolkata during the period from 6th August 2021 to 8th August 2021. DK Goel Solutions Class 11 Chapter 21 solutions are free and will help you to prepare for Class 11 Accountancy. Note that it was previously updated on the following dates in 2021: February 10, March 19, March 25, April 30, September 14, and December 2 to reflect On second and final call Balance amount Describe Direct and Indirect method of ascertaining cash flow from operating activities. It is the rebate given by the seller to the buyer. How can I find important questions for Class 11 Accounting Chapter 1? 8,00,000 40% = Rs. Question 7. Communicating: Accounting also includes the communication of financial data like financial statements to the users who analyse them as per individual requirements. : When discount is allowed to customers for making prompt payment.It is always recorded in books of accounts. (c) Vendor Question 10: Explain the Current Assets and Non-Current Assets. Cash paid for inventory amounts toRs. 24 on page 280. The land was worth Rs 1,50,000 and the building worth Rs 3,50,000. (Delhi; All India (C) 2014) The shares were issued at a premium of? Answer: Q21. 8,00,000 Rs. (d) Share premium account Applications for 15,00,000 shares were received and pro-rata allotment was made to all the applicants. Answer : (i) Share capital in the balance sheet of the company as per Revised Schedule III Part I of the Companies Act, 2013. 5,000 + Rs. Computation of rest of the two activities will remain same. (c) Sold goods to Bhanu costing Rs 10,000/- Rs 12,000 Answer: A shareholder holding 100 shares, faded to pay the final call of 20 per share. Although these expenses are not directly connected to the production of goods or services for a company, the indirect expenses play an important role in enhancing the performance of the company.Some of the examples of indirect expenses are Salaries and Office expenses. Loss= Expenses-Revenue. 12,00,000 Rs. 20 per share. On allotment : 20 It is of 2 types: Cash Discount and Trade Discount. Increase in liability is credited and decrease in liability is debited. In year 2011, machine costing Rs. : Only those transactions are recorded in books of accounts which can be measured in terms of money. The debit and credit balances of related accounts are shown on the assets and liabilities side of the Balance Sheet. Question 37. Solution 9: An asset that is more readily convertible into currency, such as cash in hand, is first written and then follows those assets that are relatively less readily convertible in order to last reveal the least liquid asset, such as goodwill. 10,50,000 Rs. Solve as Q no. Gupta, a holder of 300 shares failed to pay the first call money and Gopal, a holder of 600 shares paid the second call money also along with first call. 9,00,000Gross Profit is 20% on cost. WebIncome statement will show higher income levels under the accrual basis of accounting. Forfeiture results in reduction of share capital. Trial balance. If a company capitalizes an investment, then that outflow of money does not show up on the income statement. We, at Vedantu, aim to maintain the lucidity and easiness of our study material. Accounting information should be presented in such a manner that they are understood easily by their users such as investors, employees, etc. Example In this example, lets say X Company purchased a new computer system for Rs. It may be in the form of a cash memo, invoice or receipt. Why are the rules of debit and credit same for both liability and capital? Introduction to basic terms of Accounting (Capital, Drawings, Purchase Returns, Sales, Sales Returns, Creditors, Debtors, Stock, Income, Voucher, etc.). (Delhi 2013) Applicants for 4,00,000 shares were allotted 3,00,000 shares. 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