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Discount on issue of debentures is debited at the time of issue & then is charged to the ___

Following is the extract of the Balance Sheet of Neelkant and Mahadev as on March 31, 2007

Balance Sheet

As on March 31, 2007

$\begin{array}{cccc}\text{Liabilities}& \text{Amt. (Rs)}& \text{Assets}& \text{Amt. (Rs)}\\ \text{Neelkant's Capital}& \text{10,00,000}& \text{Sundry Assets}& 30,00,000\\ \text{Mahadev's Capital}& 10,00,000& & \\ \text{Neelkant's Current Account}& 1,00,000& & \\ \text{Mahadev's Current Account}& 1,00,000& & \\ \text{Profit and Loss}& 8,00,000& & \\ \text{Appropriation (March 2007)}& & & \\ & \underset{–}{\underset{–}{\overline{30,00,000}}}& & \underset{–}{\underset{–}{\overline{30,00,000}}}\end{array}$

During the year Mahadev's drawings were Rs 30,000. Profits during 2007 is Rs 10,00,000. Calculate interest on capital 5% pa for the year ending March 31, 2007.

Which account is debited on receipt of the share calls money ?

Calculate (i) Debt-Equity Ratio; (ii) Total Assets to Debt Ratio; and (iii) Proprietary Ratio from the following particulars :

$\begin{array}{cc}\text{Particulars}& \text{Rs.}\\ \text{Equity Share Capital}& 3,00,000\\ \text{Preference Share Capital}& 1,00,000\\ \text{General Reserve}& 60,000\\ \text{Profit \& Loss Balance}& 40,000\\ \text{12 \% Mortgage Loan}& 1,80,000\\ \text{Current Liabilities}& 1,20,000\\ \text{Non Current Assets}& 4,50,000\\ \text{Current Assets}& 3,50,000\end{array}$

What conclusions do you draw from the above ratios ?

Explain the following terms : Entrance fees, Legacy, Specific donations, Subscription.

From the following Balance Sheets of Zee Entertainment Ltd., prepare a Cash Flow Statement for the year ended 31st March, 2017.

BALANCE SHEET OF ZEE ENTERTAINMENT LTD.

as at 31st March, 2016 and 31st March, 2017

$\begin{array}{cccc}\text{Particulars}& \text{Note}& 31-03-2017& 31-03-2016\\ & \text{No.}& \left(\text{Rs}\right)& \left(\text{Rs}\right)\\ \text{I. EQUITY AND LIABILITIES}& & & \\ \text{(1) Shareholders Funds:}& & & \\ \text{(a) Share Capital (Equity)}& & 2,00,000& 2,00,000\\ \text{(b) Reserve and Surplus}& 1& 90,000& 50,000\\ \text{(2) Non-current Liabilities:}& & & \\ \text{Long-term Borrowings (Bank Loan)}& & -& 10,000\\ \text{(3) Current Liabilities:}& & & \\ \text{(a) Trade Payables (Creditors)}& & 20,000& 15,000\\ \text{(b) Other Current Liabilities}& 2& 5,000& 5,000\\ \text{(c) Short-term Provisions}& 3& 25,000& 20,000\\ \text{Total}& & 3,40,000& 3,00,000\\ \text{II. ASSETS}& & & \\ \text{(1) Non-current Assets:}& & & \\ \text{(a) Fixed Assets}& & 2,75,00& 2,35,000\\ \text{(2) Current Assets :}& & & \\ \text{(a) Inventories}& & 15,000& 25,000\\ \text{(b) Trade Receivables (Debtors)}& & 20,000& 10,000\\ \text{(c) Cash and Cash Equivalents}& 4& 30,000& 30,000\\ \text{Total}& & 3,40,000& 3,00,000\end{array}$

Notes to Accounts :

$\begin{array}{cccc}\text{Note}& \text{Particulars}& 31-03-2017& 31-03-2016\\ \text{No.}& & \left(\text{Rs}\right)& \left(\text{Rs}\right)\\ 1& \text{Reserves and Surplus:}& & \\ & \text{Statements of Profit and Loss:}& 90,000& 50,000\\ 2& \text{Other Current Liabilities:}& & \\ & \text{Outstanding Expenses}& 1,000& 5,000\\ & \text{Unaccrued Income}& 4,000& -\\ & & \overline{\underset{–}{5,000}}& \overline{\underset{–}{5,000}}\\ 3& \text{Short-term Provisions:}& & \\ & \text{Provision for Tax}& 25,000& 20,000\\ 4& \text{Cash and Cash Equivalents:}& & \\ & \text{Cash}& 10,000& 8,000\\ & \text{Bank}& 20,000& 22,000\\ & & \overline{\underset{–}{30,000}}& \overline{\underset{–}{30,000}}\end{array}$

Note : During the year the company declared equity dividend 10$\%$ and paid Rs 15,000 as income tax.

Depreciation charged during the year Rs 20,000.

Subscriptions received in cash during the year Rs. 15,000, the amount received in advance for the next year is Rs. 1,800. The amount outstanding for the current year was Rs.1,600. The amount to be credited to the Income and Expenditure Account is

It was agreed that;

(a) the value of Land and Building will be appreciated by 20% .

(b) the value of plant be increased by ​₹ 60,000.

(c) Karuna will bring ​₹ 80,000 for her share of goodwill premium.

(d) the liabilities of Workmen's Compensation Fund were determined at ​₹ 60,000.

(e) Karuna will bring in cash as capital to the extent of 1/5th share of the total capital of the new firm.

Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm.

J Ltd issued Rs 20,00,000, $15\%$ Debentures at $8\%$ discount. Debentures are to be redeemed in the following manner :

$\begin{array}{cc}\text{Year-end}& \text{Face value of Debentures}\\ & \text{Rs}\\ 2& 2,00,000\\ 3& 4,00,000\\ 4& 6,00,000\\ 5& 8,00,000\end{array}$

Pass journal entry for issue of Debentures and prepare Discount on Issue of Debentures Account for 5 years.

Ashoka Limited Company which had issued equity shares of Rs 20 each at a discount of Rs 4 per share, forfeited 1,000 shares for non-payment of final call of Rs 4 per share. 400 of the forfeited shares are reissued at Rs 14 per share out of the remaining shares of 200 shares reissued at Rs 20 per share. Give journal entries for the forfeiture and reissue of shares and show the amount transferred to capital reserve and the balance in Share Forfeiture Account.

_______ would include items such as trade payables, employee salaries and other operating costs that are expected to be settled in the company’s normal operating cycle.

What is the number of years purchase be taken, if a question is silent related to it?

Beginning Income Tax Payable − Ending Income Tax Payable + Income Tax Expense is equal to ___

Under which head and how are the following items shown in the Balance Sheet of a company under Schedule III:



(i) Calls-in-Arrears; (ii) Share Application Money Pending Allotment; (iii) Unpaid Dividend; and (iv) Dividend not paid on Cumulative Preference Shares?

What is 'meant by a Debenture?

An article is marked at Rs 7000. Two successive discounts of 10% and 5% are given by the shopkeeper. How much does a customer pay?

From the following information, calculate Operating Profit before Working Capital Changes:

DG Ltd Purchased assets of Rs 2,50,000 from VG Ltd . DG Ltd issued equity shares of Rs 50 each fully paid in consideration. Calculate the no of shares issued.

Financial ratio analysis is conducted by four groups of analysts: managers, equity investors, long-term creditors, and short-term creditors. What is the primary emphasis of each of these groups in evaluating ratios?

What are the factors affecting the determination of the price of a product or service?

X, a shareholder, holding 100 shares of Rs 10 each has paid application money of Rs 2 per share and allotment money of Rs 3 per share, but has failed to pay the first call of Rs 2 per share and second call of Rs 3 per share. His shares were forfeited. What is amount paid up on these shares?

Distinguish between Income and Expenditure Account and Profit and Loss Account.

Prepare Income and
Expenditure Account and Balance Sheet for the year ended December 31,
2006 from the following Receipt and Payment Account and Balance Sheet
of culture club:

Company bought a Plant for Rs. 81,000 & issued Debentures of Rs. 100 each at 10% discount. How many debentures were issued?

Ashish Ltd. issued 170 debentures of Rs. 100 each to a creditor who has supplied machinery costing Rs. 16,000. Which of the following is correct?

Journalise the following:

(i) A debenture issued at Rs 95, repayable at Rs 100;

(ii) A debenture issued at Rs 95, repayable at Rs 105; and

(iii) A debenture issued at Rs 100, repayable at Rs 105;

The face value of debenture in each of the above cases is Rs 100.

How deficiency of creditors is paid off?

Securities premium can be used _______