Avail 20% discount on updated CA lectures for Dec 21 .Use Code RESULT20 !! Call : 088803-20003

ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Akash (CA Final Article Assistant)     27 May 2011

A/c doubt plz help

 

Plz solve the followin problems thanx in advance


1.  The profits for 1998-99 are Rs. 2,000; for 1999-2000 is Rs. 26,100 and for 2000-01 is

Rs. 31,200. Closing stock for 1999-2000 and 2000-01 includes the defective items of

Rs. 2,200 and Rs. 6,200 respectively which were considered as having market value

NIL. Calculate goodwill on average profit method.


2.D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as

follows:

On application Rs.20

On allotment Rs.50 (including premium)

On first call Rs.30

On second and final call Rs.20

Applications were received for 3,00,000 shares and pro rata allotment was made to applicants

of 2,40,000 shares. Money excess received on application was employed on account of sum

due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay

the allotment money and on his subsequent failure to pay the first call, his shares were forfeited

and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after

the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the

whole of E’s forfeited shares being reissued.

 


a)Amount transferred to Share forfeiture account at the time of forfeiting E’s

shares

b)Amount transferred to Share forfeiture account at the time of forfeiting F’s

shares

c)Net balance in Securities Premium Account

d)Net balance in Share Forfeiture Account



thanx in advance



 19 Replies

CA Lalit Kandoi

CA Lalit Kandoi (Chartered accountant)     27 May 2011

1.less from the profit the value of closing stock and goowill is Rs.16967 as no year of purchase is given  so multiply with 1.

 

2.

Akash

Akash (CA Final Article Assistant)     27 May 2011

answer in module is 17700 n there is no option of 16967 thanx anyway.

one more question as we see profit has increasing trend dont we have to use weighted avg profit method

Sunshine

Sunshine (Helping All)     27 May 2011

 

hie..

correct profits will be-

1998-99 ----- 2000

99-00-------  26100-2200= 23900

00-01------- 31200+2200-6200= 27200

now take the total of profits = 53100

and divide by 3..u will get avg profit = 17700

2 Like
Sunshine

Sunshine (Helping All)     27 May 2011

in the year 00-01 the opening stock  and closing stock both are overvalued-- so make the adjustments accordingly...

 

yes u are correct that u have to use weighted average method in case profits show an increasing trend....u can use that method and get the answer as goodwill = 21900

 

if this option is provided then that will be correct ... if u just got option of 17700 then u got no other choice right...!!

 

Regards

1 Like
Akash

Akash (CA Final Article Assistant)     27 May 2011

Thanx a lot can u solve no.2


Sunshine

Sunshine (Helping All)     28 May 2011

Hie..

m out of touch with this chapter...still i tried...

u please check the answer and temme ..then i will post the solution...

i got..

a)100000

b)300000

Akash

Akash (CA Final Article Assistant)     28 May 2011

Answers rgiven in module r  96000 , 100000 , 3920000 , 100000

Sunshine

Sunshine (Helping All)     28 May 2011

hmmm...what can i say now...i will stick to my answer still.....wait for someone else to solve it...i tried again but m getting the same solution...see for the 1st forfeiture..

 

Share capital a/c dr. 320000

Sec. premium a/c dr. 80000

 to share allotment a/c 180000(200000-20000)

 to share 1st call a/c 120000

 to share forfeiture a/c 100000

 

wait for others to reply..

Sunshine

Sunshine (Helping All)     28 May 2011

i asked some members to give some assisstance...wait and see if it works out..

1 Like
Vijay

Vijay (Adamo Studio)     28 May 2011

Correct profit

 1998-99   2000                           

1999-00   26100-2200=23900  

2000-01   31200+2200-6200=27200

Goodwill= 17700

1 Like
Vijay

Vijay (Adamo Studio)     28 May 2011

              Alloted        Applied

              200000       240000

                5                  6

E              4000          ?=4800

So E paid at the time of application= 4800*20=96000

So,  what E already paid will be credited to S.F. acc i.e. 96000

 

3 Like
Vijay

Vijay (Adamo Studio)     28 May 2011

              Alloted        Applied

              200000       240000

                5                  6

f              6000          ?=7200

So E paid at the time of application= 7200*20=144000 out of which advance money is 1200*20=24000

& E paid at the time of allotment= 6000*30=180000less advance money is 1200*20=24000 so net paid=156000

Total amt recd frm F=144000+156000=300000

So,  what F already paid will be credited to S.F. acc i.e. 300000

 

1 Like
Vijay

Vijay (Adamo Studio)     28 May 2011

   Total share premium credited= 200000*20=              4000000

Less: debited at the time of reissue= 8000*100*10%=80000

Balance                                                                                   3920000

 

Vijay

Vijay (Adamo Studio)     28 May 2011

S.F. credited at the time of forfeiture of E’s share   96000

S.F. credited at the time of forfeiture of F’s share   300000

But 8000 shares reissued out of which whole of E’s shares i.e. 4000 & rest F’s shares 4000 reissued. So 2000 F’s shares nt reissued.

So whole S.F. credited at the time of forfeiture of E’s share   96000

will be credited to capital reserved and

calculation of the amt credited to C.R. out of S.F. credited at the time of forfeiture of F’s share

                shares      amt

                 6000        300000

                 4000           ?=200000

So balance in S.F. acc (3-2)=100000

 

 

1 Like

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Start a New Discussion

Popular Discussion


view more »







Subscribe to the latest topics :
Search Forum:



Trending Tags