Shares problem

CPT 1595 views 4 replies

1). indigo ltd had 9000,10% redeemable preference shares of 10/- each,fully paid up. the company decided to redeem these preference shares at par by the issue of sufficient number of equity shares of 10/- each fully paid up @ discount of 10%.the no. of equity shares issued should be

a).9000

b).11000

c).10000

d).none

2). a company issued 100000 equity shares of 10/- each at a premium of 2/- and 5000,10% debentures of 100/- each at 10% discount.all the shares & debentures were subscribed & alloted by crediting 10% debentures ac with

a). 1000000

b).1200000

c).500000

d).450000

3). kena ltd issued 10000,12% debentures of 100/- each at a discount of 10% payable in full on application by 31 st march,2006.applications were received for 12000 debentures.debentures were alloted on 9th june 2006.the amount of excess money refunded on the same date will be

a).180000

b).100000

c).120000

d).150000

solve step by step.

Replies (4)

1. 9000 shares of Rs.10 should be redeemed by equity shares of Rs.9 so the number of shares is 9000*10/9 = 10,000. answer is c

2. you should credit 10% debentures account with 5,00,000 and cash should be debited with 4,50,000 and loss on issue of debentures A/c with 50,000. so answer is c

3.the amount refunded would be 1,80,000 ( the application money received is 12,000*90 = 10,80,000) and amount credited to debentures is 10,00,000 amount debited to bank is 9,00,000,loss on issue of debentures is 1,00,000 and amount returned is 1,80,000

4). x ltd formed as a public limited co with an authorized capital 2000000/- divided into shares of 10/- each. x ltd issued fully paid up shares of 10/- each in consideration of acquiring assets 380000/- from ms rahim bros.the shares are issued at a premium of 25%. to record this transaction,share capital need to be credited by

a).380000

b).76000

c).200000

d).304000

5).p sells goods at 20% above cost.his sales were 1020000/- during the year.however,he sold damaged goods for 20000/- costing 30000/-.this sale is included in 1020000/-.amount of gross profit is

a).190000

b).250000

c).240000

d).200000

6).t ltd issued 14% debentures of 1000000/- at discount of 10% on apr01,2004 & the company pays interest half yearly on june 30 & dec 31 every year. on march 31,2006 the amount shown as 'interest accrued but not paid"in the balance sheet will be

a).35000/-shown along with debenture.

b).70000/-under current liabilities.

c).140000/-shown along with debentures.

d).10000/-under current liabilities.

4). x ltd formed as a public limited co with an authorized capital 2000000/- divided into shares of 10/- each. x ltd issued fully paid up shares of 10/- each in consideration of acquiring assets 380000/- from ms rahim bros.the shares are issued at a premium of 25%. to record this transaction,share capital need to be credited by

a).380000

b).76000

c).200000

d).304000

5).p sells goods at 20% above cost.his sales were 1020000/- during the year.however,he sold damaged goods for 20000/- costing 30000/-.this sale is included in 1020000/-.amount of gross profit is

a).190000

b).250000

c).240000

d).200000

6).t ltd issued 14% debentures of 1000000/- at discount of 10% on apr01,2004 & the company pays interest half yearly on june 30 & dec 31 every year. on march 31,2006 the amount shown as 'interest accrued but not paid"in the balance sheet will be

a).35000/-shown along with debenture.

b).70000/-under current liabilities.

c).140000/-shown along with debentures.

d).10000/-under current liabilities.

4.The shares are issued at a premium of 25% so the price of each share is 12.5/- now the number of shares issued is 3,80,000/12.5 = 30,400 shares. 30,400 shares menas share capital of 3,04,000 and securities of premium of 76,000.so answer is d

5. sale price is 1.2*cost price. sales price = 10,20,000 20,000 sale was of defective goods. so sales done at 1.2*cost price is 10,20,000 - 20,000 = 10,00,000 so cost price is 10,00,000/1.2 = 25,00,000/3 so profit = sales-costprice = 10,00,000 - 25,00,000/3 = 5,00,000/3. but loss on sale of defective goods is 10,000 (20,000 - 30,000). so gross profit is 5,00,000/3 - 10,000 = 4,70,000/3 = 1,56,666.67. I think this is the correct answer and the correct answer is not given in the question.

6. 14/100*1/4*10,00,000 = 35,000 is the accrued interest. and is shown along with debenture


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