Cpt doubt

CPT 828 views 2 replies

intermediate(ipc)course

1460 Points Posted on 08 June 2012

1. j ltd reissued 2000 shares,which were forfeited by debiting share forfeiture account by 3000/-.these shares were reissued at 9/- per share.the amount to be transferred to capital reserve a\c will be

a).3000/-

b).2000/-

c).1000/-

d). nil.

2. balance of A's capital is 93500/-; B's capital is 52500/-;C's capital is 25000\- & partner decides that the capital of partners in the new firm are to be in the profit sharing ratio - the capital of C being taken as base capital.new profit sharing ratio is 3:1:1.

a). transfer to current a\c : A-18500/- & B - 27500/-

b). cash brought in by A - 18500/- & B-27500/-

c). transfer to current a\c A-18500/-,B - 27500/-,C-6000/-

D). CASH BROUGHT IN BY a-18500/-,b-27500,C - 6000/-

also solve this sums with step by step.

Replies (2)

Tejaswi Kasturi

student-cpt

427 Points Posted on 08 June 2012

1. You did not specify the par value of the shares and whether they or offered at par or at discount. assuming par value is 10 and offered at par, the loss on the reissue of shares is 2000*(10-9) = 2000. This amount will be debited from forfited shares A/c and credited to share Capital A/c. the remaining amount i.e. 1000 is credited to general Reserves A/c

2. C's capital = 25,000 B's capital should be equal to C as B & C share equal amount of profits. so B should transfer from his Capital A/c to Current A/c 27,500 (52,500 - 25,000) (usually in floating Capital he must withdraw the amount in form of cash). A's Capital should be thrice that of C because his profit is thrice that of C. So A's capital would be 75,000. The remaining amount i.e. 18,500 (93,500 - 75,000) should be transferred to the current A/c so A is the correct answer