Important Questions for PRINCIPLE OF ACCOUNTING -XII

Important Questions for PRINCIPLE OF ACCOUNTING -XII

Attempt all the questions:

  1. Write any three features of a company?                                                        3
  2. What is memorandum of association?                                                              2
  3. Mention any three advantages of public Limited Company.                       3
  4. What is forfeiture of share?                                                                               3
  5. State any three objectives of cost accounting.                                                3
  6. What is fixed cost? Explain with its example.                                                   3
  7. Write differences between piece rate and time rate wage payment system.  3
  8. What is bin card?                                                                                                  2
  9. Surya Company Limited issued 5000 equity shares of Rs. 100 each at a discount of Rs. 10 per share. The amount was payable as under:

On application Rs. 20, on allotment Rs. 40 and first and final call is not called yet.

Required: Journal entries for application and allotment                                  3

  1.  a. A company limited issued 2000 shares of Rs. 100 each at a premium of 10% to purchase the following assets and liabilities.

Machineries          Rs. 1,00,000          Furniture                               Rs. 40,000

Stock                      Rs. 60,000             Account paybale                  Rs. 20,000

Required: Journal for purchase of business.                                                      3

  1. The following assets and liabilities have been took over by ABC company.

Plant & Machinery               Rs. 150,000           Vehicle                   Rs. 2,00,000

Office Furniture                   Rs. 40,000             Book debt              Rs. 50,000

Business premises               Rs. 60,000             Bills Payable          Rs. 50,000

The payment has been made by issuing 4000 equity shares at 10% discount.

Required: Necessary journal entries                                                                   3

  1. ABC Company Limited issued 10,000 shares of Rs. 100 each at 10 % premium payable as on share application Rs. 20, on share allotment Rs. 50 and on share first and final call Rs. 40. The public applied for 8,000 shares and these shares were allotted. All the money was received.

Required: Journal entries                                                                                     3

  1. Gauri Company Limited forfeited 1000 shares of Rs. 100 each of a share holder for non payment of final call money of Rs. 25 per share. Out of the forfeited shares, 600 shares were reissued at Rs. 70 per share as fully paid.

Required: Journal entries for            i. Forfeiture                           ii. Reissue              iii. Transfer                                                                                            4.5

  1. a) Laxmi Company Limited issued 5000 shares of Rs. 100 each payable as Rs. 40 on application, Rs. 30 on allotment, Rs. 30 on first and final call.

Applications were received for 8000 shares and allotment were made on the following basis.

To applicants for 3000 shares           Full

To applicants for 4000 shares           Pro rata

To applicants for 1000 shares           Nil

The excess amount paid on application is to be adjusted against amount due on allotment and subsequent calls. The shares were fully called and paid up except one sharehloder who applied 100 shares were failed to pay on first and final call and his shares were forfeited.

Required: Journal entries for  a. allotment     b. first and final call            

  1. forfeiture                                                                                                   6
  1. b) A Public Company was registered with a share capital of Rs. 5,00,000 divided into 50,000 shares of Rs. 10 each. The company issued 40,000 equity shares of Rs. 10 each at par payable as under.

On share application Rs. 4

On share allotment Rs.   3

On share first and final call Rs. 3

Applications were received for 64,000 equity shares from the public. The directors decided to allot as follows

Group                     Share applied                       Share alloted

I                               20,000                                   full

II                              40,000                                   pro rata

III                             4000                                       Nil

Excess application money to be adjusted against due on allotment and all the dues were collected in time except  two shareholder allotted 8000 shares from pro rata allotment and 1000 shares from full allotment failed to pay first and final call.

Required: Journal entries for allotment, first &final call and forfeiture            6

  1. Y Company Limited issued 10,000 shares of Rs. 10 each at a premium of 10% for public subscription. All the shares were applied for and allotment was made in full

Required: Journal entries                                                                                         3

  1. Saugbhgya Co. Limited Was registered with an authorized capital of Rs. 4,00,000 divided into 4000 shares of rs. 100 each. The company issued 3000 shares at 10% premium. The money was payable Rs. 30 on application Rs. 50 on allotment and balance on first and final call. All the money was duly received except Mr. Ajit a shareholder who held 500 shares failed to pay allotment and call money. Mr. Prajeet, another shareholder who held 750 shares paid entire balance of share money with the amount of allotment.

Required: Journal Entries                                                                                          7

  1. A Company forfeited 500 shares of Rs. 100 each which were issued at 10% discount (Rs. 70 per share called up after adjusting discount) for non payment of first call money Rs. 30 per share. Final call Rs. 20 has not called yet. Out of these forfeited shares  only 400 shares were re issued at Rs. 50 per share fully paid as Rs. 70 per share after adjusting discount of Rs. 10 per share.

Required: Journal entries for           

  1. Share forfeiture               b. Re issue             c. Transfer                                 4.5
  1. The following information are given:

                Annual requirement           6000 units

Ordering cost per order Rs 500

Cost per unit Rs. 30

Carrying cost per unit 20% of unit value.

Required: a. Economic order quantity

  1. Number of orders                                                                            3
  1. The detail of material purchased by a manufacturing company are as follows:

Average consumption per day:                         3000 units

Working days in a year                                       300 days

Ordering cost per purchase                              Rs. 100

Carrying cost per unit are

Insurance Rs. 0.75, return on investment Rs. 0.25, storage cost Rs. 0.50,

 rent of warehouse Rs. 1.80 and store staffing charge Rs. 0.70

Required: a. EOQ                                 b. Total cost at EOQ                                 4

  1. following information are given:

Lead time: maximum 6 days

                Minimum 4 days

Re ordering quantity 3000 units

Daily consumption: maximum 500 units, minimum 400 units

Required: a.  Reorder level                               b. Maximum stock level                     

  1. Minimum stock level                       d. Average stock level                            6
  1. Following information are given to you:

Following purchased were made:

Magh      1              Opening stock 500 units @ Rs. 10 per unit

                5              Receipt from vendor 600 units @ Rs. 10.50 per unit

                7              Issued 800 units

                10           Return from work order 50 units

                18           Receipts from vendor 1000 units @ Rs. 11 per unit

                20           Return to Vendor  20 units (Purchased from 5th Magh)

                28           Receipts from vendor 500 units @ Rs. 12 per unit

                29           Store verification found surplus 5 units

Required: Store ledger under FIFO method.                                  8

  1. The following information is available in respect of an items of a material.

April 3                    Purchased 600 units @ Rs. 8 per unit

April 7                    Issued 350 units

April 11                  Purchased 1200 units @ Rs. 7 per unit

April 13                  issued 1000 units

April 15                  Return to supplier 150 units from the lot of 11th April.

April 18                  Issued 500 units

April 27                  Shortage 200 units.

April 29                  Transfer from X department to Y department 100 units

Required: Store Ledger under LIFO Method.                                                                  8

  1. Following information are provided relating to wages

Output produced by a worker 600 units

Time allowed for 5 units of output is 1 hour

Wages rate per hour Rs. 120

Required: calculate wage amount of the worker by using both

methods.  (Piece rate and Time rate payment system)                   3+3

Attempt all the questions:

  1. What do you mean by company?                                                                       3
  2. What is article of association?                                                                             3
  3. Write any three differences between public and private limited company. 3
  4. What is capital reserve?                                                                                       2
  5. Write any three limitation of cost accounting.                                 3
  6. Define semi  variable cost with its example.                                                     3
  7. What do you mean by piece rate wage payment system.                              3
  8. What do you mean by perpetual inventory system?                                      2
  9. A Company Limited issued 10,000 equity shares of Rs. 10 each at a discount of Rs. 1 per share. The amount was payable as under:

On application Rs. 2, on allotment Rs. 4 and first and final call is not called yet.

Required: Journal entries for application and allotment                                  3

  1.  a. Moonlight Company limited issued 5000 shares of Rs. 100 each at a discount of 10% to purchase the following assets and liabilities.

Plant                       Rs. 50,000             Pipe and fittings                   Rs. 40,000

Loan Payable        Rs. 60,000             Supplier                                 Rs. 20,000

Required: Journal for purchase of business.                                                      3

  1. The following assets and liabilities have been took over by ABC company.

Plant & Machinery               Rs. 150,000           Vehicle                   Rs. 2,00,000

Office Furniture                   Rs. 40,000             Book debt              Rs. 50,000

Business premises               Rs. 60,000             Bills receivable     Rs. 50,000

The payment has been made by issuing 4000 equity shares at 10% premium.

Required: Necessary journal entries                                                                   3

  1. Saurya Airline  issued 5,000 shares of Rs. 50 each at 10 % premium payable as on share application Rs. 20, on share allotment Rs. 30 and rest on share first and final call. The public applied for 4,000 shares and these shares were allotted. All the money was received.

Required: Journal entries                                                                                     3

  1. An Auto Company Limited forfeited 10,000 shares of Rs. 100 each of a share holder paid application money of Rs. 40 only.  Out of the forfeited shares, 6000 shares were reissued at Rs. 90 per share as fully paid.

Required: Journal entries for            i. Forfeiture                           ii. Reissue              iii. Transfer                                                                                            4.5

  1. a) Bibhuti Company Limited issued 5000 shares of Rs. 100 each payable as Rs. 40 on application, Rs. 30 on allotment, Rs. 30 on first and final call.

Applications were received for 8000 shares and allotment were made on the following basis.

To applicants for 3000 shares           Full

To applicants for 4000 shares           Pro rata

To applicants for 1000 shares           Nil

The excess amount paid on application is to be adjusted against amount due on allotment and subsequent calls. The shares were fully called and paid up except one sharehloder who alloted 100 shares were failed to pay on first and final call and his shares were forfeited.

Required: Journal entries for  a. allotment     b. first and final call            

  1. forfeiture                                                                                                   6
  1. b) A Public Company was registered with a share capital of Rs. 5,00,000 divided into 50,000 shares of Rs. 10 each. The company issued 40,000 equity shares of Rs. 10 each at par payable as under.

On share application Rs. 4

On share allotment Rs.   3

On share first and final call Rs. 3

Applications were received for 64,000 equity shares from the public. The directors decided to allot as follows

Group                     Share applied                       Share alloted

A                             20,000                                   full

B                              40,000                                   pro rata

C                              4000                                       Nil

Excess application money to be adjusted against due on allotment and all the dues were collected in time except  two shareholder applied 8000 shares from pro rata allotment and 1000 shares from full allotment failed to pay first and final call.

Required: Journal entries for allotment, first &final call and forfeiture            6

  1. Y Company Limited issued 50,000 shares of Rs. 100 each at a discount of 10% for public subscription. All the shares were applied for and allotment was made in full

Required: Journal entries                                                                                         3

  1. Suprim Co. Limited Was registered with an authorized capital of Rs. 40,00,000 divided into 40,000 shares of Rs. 100 each. The company issued 30,000 shares at 10% premium. The money was payable Rs. 30 on application Rs. 50 on allotment and balance on first and final call. All the money was duly received except a shareholder who held 1500 shares failed to pay allotment and call money. Another shareholder who held 500 shares paid entire balance of share money with the amount of allotment.

Required: Journal Entries                                                                                          7

  1. A Company forfeited 200 shares of Rs. 100 each which were issued at 10% discount (Rs. 70 per share called up after adjusting discount) for non payment of first call money Rs. 30 per share. Final call Rs. 20 has not called yet. Out of these forfeited shares  only 150 shares were re issued at Rs. 50 per share fully paid as Rs. 70 per share after adjusting discount of Rs. 10 per share.

Required: Journal entries for           

  1. Share forfeiture               b. Re issue             c. Transfer                                 4.5
  1. The following information are given:

                Annual requirement           12,000 units

Cost for placing an order    Rs 200

Procurement cost per unit  Rs. 50

Carrying cost per unit 10% of unit value.

Required: a. Economic order quantity

  1. Number of orders                                                                            3
  1. The detail of material purchased by a manufacturing company are as follows:

Consumption per day:                        4000 units to 6000 units

Working days in a year                                       250 days

Ordering cost per order                                     Rs. 250

Carrying cost per unit are                 

Insurance Rs. 0.75, return on investment Rs. 0.25, storage cost Rs. 0.50,

and store staffing charge Rs. 0.50

Required: a. EOQ                                 b. Total cost at EOQ                                 4

  1. following information are given:

Re order period: 4 to 6 days

Re ordering quantity 6000 units

Daily consumption: maximum 500 units, minimum 400 units

Required: a.  Reorder level                               b. Maximum stock level                     

 

  1. Minimum stock level                       d. Average stock level                            6

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