{"id":11911,"date":"2021-02-17T17:30:41","date_gmt":"2021-02-17T12:00:41","guid":{"rendered":"https:\/\/wordpress-505192-1602719.cloudwaysapps.com\/?p=11911"},"modified":"2021-02-17T17:57:40","modified_gmt":"2021-02-17T12:27:40","slug":"samacheer-kalvi-12th-accountancy-solutions-chapter-7","status":"publish","type":"post","link":"https:\/\/samacheerguru.com\/samacheer-kalvi-12th-accountancy-solutions-chapter-7\/","title":{"rendered":"Samacheer Kalvi 12th Accountancy Solutions Chapter 7 Company Accounts"},"content":{"rendered":"

Students can Download Accountancy Chapter 7 Company Accounts Questions and Answers, Notes Pdf, Samacheer Kalvi 12th Accountancy Book Solutions<\/a> Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.<\/p>\n

Tamilnadu Samacheer Kalvi 12th Accountancy Solutions Chapter 7 Company Accounts<\/h2>\n

Samacheer Kalvi 12th Accountancy Company Accounts Text Book Back Questions and Answers<\/h3>\n

I. Choose the Correct Answer<\/span><\/p>\n

12th Accountancy Chapter 7 Solutions Question 1.<\/strong>
\nA preference share is one ……………..
\n(i) which carries preferential right with respect to payment of dividend at fixed rate
\n(ii) which carries preferential right with respect to repayment of capital on winding up
\n(a) Only (i) is correct
\n(b) Only (ii) is correct
\n(c) Both (i) and (ii) are correct
\n(d) Both (i) and (ii) are incorrect
\nAnswer:
\n(c) Both (i) and (ii) are correct<\/p>\n

Class 12 Accountancy Chapter 7 Solutions Question 2.<\/strong>
\nThat part of share capital which can be called up only on the winding up of a company is called ……………..
\n(a) Authorised capital
\n(b) Called up capital
\n(c) Capital reserve
\n(d) Reserve capital
\nAnswer:
\n(d) Reserve capital<\/p>\n

12th Accountancy 7th Chapter Question 3.<\/strong>
\nAt the time of forfeiture, share capital account is debited with ……………..
\n(a) Face value
\n(b) Nominal value
\n(c) Paid up amount
\n(d) Called up amount
\nAnswer:
\n(d) Called up amount<\/p>\n

Class 12 Accounts Chapter 7 Solutions Question 4.<\/strong>
\nAfter the forfeited shares are reissued, the balance in the forfeited shares account should be transferred to ……………..
\n(a) General reserve account
\n(b) Capital reserve account
\n(c) Securities premium account
\n(d) Surplus account
\nAnswer:
\n(b) Capital reserve account<\/p>\n

12th Accountancy Chapter 7 Question 5.<\/strong>
\nThe amount received over and above the par value is credited to ……………..
\n(a) Securities premium account
\n(b) Calls in advance account
\n(c) Share capital account
\n(d) Forfeited shares account
\nAnswer:
\n(a) Securities premium account<\/p>\n

Samacheer Kalvi Guru 12th Accountancy Question 6.<\/strong>
\nWhich of the following statement is false?
\n(a) Issued capital can never be more than the authorised capital
\n(b) In case of under subscription, issued capital will be less than the subscribed capital
\n(c) Reserve capital can be called at the time of winding up
\n(d) Paid up capital is part of called up capital
\nAnswer:
\n(b) In case of under subscription, issued capital will be less than the subscribed capital<\/p>\n

Chapter 7 Accounts Class 12 Question 7.<\/strong>
\nWhen shares are issued for purchase of assets, the amount should be credited to ……………..
\n(a) Vendor\u2019s A\/c
\n(b) Sundry assets A\/c
\n(c) Share capital A\/c
\n(d) Bank A\/c
\nAnswer:
\n(c) Share capital A\/c<\/p>\n

12th Accountancy Answer Pdf Question 8.<\/strong>
\nMatch the pair and identify the correct option:
\n\"12th
\nAnswer:
\n(c) (iii) (ii) (iv) (i)<\/p>\n

12th Accountancy Samacheer Kalvi Question 9.<\/strong>
\nIf a share of \u20b9 10 on which \u20b9 8 has been paid up is forfeited. Minimum reissue price is ……………..
\n(a) \u20b9 10 per share
\n(b) \u20b9 8 per share
\n(c) \u20b9 5 per share
\n(d) \u20b9 2 per share
\nAnswer:
\n(d) \u20b9 2 per share<\/p>\n

Samacheer Kalvi 12th Accountancy Question 10.<\/strong>
\nSupreme Ltd. forfeited 100 shares of \u20b9 10 each for non – payment of final call of \u20b9 per share. All these shares were re-issued at \u20b9 9 per share. What amount will be transferred to capital reserve account?
\n(a) \u20b9 700
\n(b) \u20b9 800
\n(c) \u20b9 900
\n(d) \u20b9 1,000
\nAnswer:
\n(a) \u20b9 700<\/p>\n

II. Very short answer questions<\/span><\/p>\n

Samacheer Kalvi 12th Accountancy Solutions Question 1.<\/strong>
\nWhat is a share?
\nAnswer:
\nThe capital of a company is divided into small units of fixed amount. These units are called shares. There are two types<\/p>\n

    \n
  1. Preference shares and<\/li>\n
  2. Equity shares.<\/li>\n<\/ol>\n

    Samacheer Kalvi Accountancy Question 2.<\/strong>
    \nWhat is over – subscription?
    \nAnswer:
    \nWhen the number of shares applied for is more than the number of shares offered for subscription it is said to be over subscription.<\/p>\n

    Samacheer Kalvi Accountancy 12th Question 3.<\/strong>
    \nWhat is meant by calls – in – arrear?
    \nAnswer:
    \nWhen a share holder fails to pay the amount due on allotment or on calls, the amount remaining unpaid is known as calls – in – arrears.<\/p>\n

    Samacheer Kalvi 12th Accountancy Book Question 4.<\/strong>
    \nWrite a short note on securities premium account.
    \nAnswer:
    \nWhen a company issues shares at a price more than face value, the shares are said to be issued at premium. The excess is called as premium amount and is transferred to securities premium account. It is shown under \u201creserves and surplus\u201d as a separate head in the note to accounts to the balance sheet.<\/p>\n

    Account Chapter 7 Class 12 Question 5.<\/strong>
    \nWhy are the shares forfeited?
    \nAnswer:
    \nWhen a shareholder defaults in making payment of allotment\/call money, the shares may be forfeited. On forfeiture the share allotment is cancelled and to that extent, paid up share capital reduced.<\/p>\n

    III. Short answer questions<\/span><\/p>\n

    Chapter 7 Class 12 Accounts Question 1.<\/strong>
    \nState the different between preference shares and equity shares?
    \nAnswer:
    \n\"Class<\/p>\n

    12th Samacheer Accountancy Solutions Question 2.<\/strong>
    \nWrite a brief note on calls – in – advance.
    \nAnswer:
    \nThe excess amount paid over the called up value of a share is known as calls – in – advance. It is the excess money paid on application or allotment or calls. Such excess amount can be returned or adjusted towards future payment. If the company decides to adjust such amount towards future payment, the excess amount is transferred to a separate account called calls-in advance account.<\/p>\n

    Samacheer Kalvi Class 12 Accountancy Question 3.<\/strong>
    \nWhat is reissue of forfeited shares?
    \nAnswer:
    \nThe directors of a company have an authority of reissue of shares once forfeited by them due to non – payment of calls. They can reissue the forfeited shares at par, at premium or at discount. When forfeited shares are reissued at a premium, the amount of such premium will be credited to securities premium. If the reissue price is more than the amount unpaid of forfeited shares it results in profit and is transferred to capital reserve account<\/p>\n

    Accounting Chapter 7 Answer Key Question 4.<\/strong>
    \nWrite a short note as:<\/p>\n

      \n
    1. Authorised Capital<\/li>\n
    2. Reserve Capital<\/li>\n<\/ol>\n

      Answer:
      \n1. Authorised Capital : According Sec 2(8) of the Companies Act, \u201cIt means such capital as is authorised by the memorandum of a company to be the maximum amount of share capital of the company\u201d.<\/p>\n

      2. Reserve Capital : Sec 65 of Companies Act 2013, only an unlimited company having share capital while converting into a limited company, may have a reserve capital. The company reserve a part of its subscribed capital to be called up only at the time of winding up. It is called reserve capital.<\/p>\n

      12th Accountancy Guide Samacheer Kalvi Question 5.<\/strong>
      \nWhat is meant by issue of shares for consideration other than cash?
      \nAnswer:
      \nA company may issue shares for consideration other than cash when the company acquires fixed assets such as land, building and machinery, etc. A company may also issue shares as consideration for the purchase of business, to promotors for their services and to brokers and underwriters for their commission.<\/p>\n

      IV. Exercises<\/span><\/p>\n

      Question 1.
      \nProgress Ltd. issued 50,000 ordinary shares of \u20b9 10 each, payable \u20b9 2 on application, \u20b9 4 on allotment, \u20b9 2 on first call and \u20b9 2 on final call. All the shares are subscribed and amount was duly received. Pass journal entries.
      \nAnswer:
      \n\"12th<\/p>\n

      Question 2.
      \nSampath company issued 25,000 shares at \u20b9 10 per share payable \u20b9 3 on application, \u20b9 4 on allotment, \u20b9 3 on first and final call. The public subscribed for 24,000 shares. The directors allotted all the 24,000 shares and received the money duly. Pass necessary journal entries.
      \nAnswer:
      \n\"Class<\/p>\n

      Question 3.
      \nSaranya Ltd. issued 20,000 equity shares of \u20b9 10 each to the public at par. The details of the amount payable on the shares are as follows:
      \nOn application \u20b9 3 per share
      \nOn allotment \u20b9 4 per share
      \nOn first and final call \u20b9 3 per share
      \nApplication money was received on 30,000 shares. Excess application money was refunded immediately. Pass journal entries to record the above.
      \nAnswer:
      \n\"12th<\/p>\n

      Question 4.
      \nGaja Ltd issued 40,000 shares of \u20b9 10 each to the public payable \u20b9 2 on application, \u20b9 5 on allotment and \u20b9 3 on first and final call. Applications were received for 50,000 shares. The Directors decided to allot 40,000 shares on pro rata basis and surplus of application money was utilised for allotment. Pass journal entries assuming that the amounts due were received.
      \nJournal Emtries
      \n\"Samacheer<\/p>\n

      Question 5.
      \nLalitha Ltd. offered 30,000 equity shares of \u20b9 10 each to the public payable \u20b9 2 per share on application, \u20b9 3 on share allotment and the balance when required. Applications for 50,000 shares were received on which the directors allotted as:
      \nApplicants for 10,000 shares – Full
      \nApplicants for 35,000 shares – 20,000 shares (excess money will be utilised for allotment)
      \nApplicants for 5,000 shares – Nil
      \nAll the money due was received. Pass journal entries upto the receipt of allotment.
      \nJournal Entries
      \n\"Chapter
      \nWorking Notes:
      \n\"12th<\/p>\n

      Question 6.
      \nDas Ltd. offered 50,000 equity shares of \u20b9 10 each to the public payable as follows:
      \nOn application \u20b9 4; on allotment \u20b9 3; on first call \u20b9 1 and on second and final call \u20b9 2. Applications were received for 1,00,000 shares. All the applicants were allotted 1 share for every two shares applied. Excess application money was used for amount due on allotment and call. Pass necessary journal entries.
      \nAnswer:
      \nJournal Entries
      \n\"12th<\/p>\n

      Question 7.
      \nAnjali Flour Ltd. with a registered capital of \u20b9 4,00,000 in equity shares of \u20b9 10 each, issued 30,000 of such shares; payable \u20b9 2 per share on application, \u20b9 5 per share on allotment and \u20b9 3 per share on first call. The issue was duly subscribed.
      \nAll the money payable was duly received but on allotment, one shareholder paid the entire balance on his holding of 500 shares. Give journal entries to record the transactions.
      \nAnswer:
      \nJournal Entries
      \n\"Samacheer<\/p>\n

      Question 8.
      \nMuthu Ltd. issued 50,000 shares of \u20b9 10 each payable as follows:
      \n\u20b9 2 on application; \u20b9 4 on allotment; \u20b9 4 on first and final call.
      \nAll money were duly received except one shareholder holding 1,000 shares failed to pay the call money. Pass the necessary journal entries for calls by using calls in arrear account.
      \nAnswer:
      \nJournal Entries
      \n\"Samacheer<\/p>\n

      Question 9.
      \nArjun was holding 1,000 shares of \u20b9 10 each of Vanavil Electronics Ltd, issued at par. He paid \u20b9 3 on application, \u20b9 4 on allotment but could not pay the first and final call of \u20b9 3. The directors forfeited the shares for non – payment of call money. Give Journal entry for forfeiture of shares.
      \nAnswer:
      \nJournal Entries
      \n\"Samacheer<\/p>\n

      Question 10.
      \nLakshith was holding 50 shares of \u20b9 10 each on which he paid \u20b9 2 on application but could not pay \u20b9 4 on allotment and \u20b9 2 on first call. Directors forfeited the shares after the first call. Give journal entry for recording the forfeiture of shares.
      \nAnswer:
      \n\"Samacheer<\/p>\n

      Question 11.
      \nGoutham Ltd. forfeited 500 equity shares of \u20b9 10 each issued at par held by Ragav for non – payment of the final call of \u20b9 2 per share. The shares were forfeited and reissued to Madhan at \u20b9 8 per share. Show the journal entries for forfeiture and reissue.
      \nAnswer:
      \nJournal Entries
      \n\"Samacheer<\/p>\n

      Question 12.
      \nNivetha Ltd. forfeited 1,000 equity shares of \u20b9 10 each for non payment of call of \u20b9 4 per share. Of these 800 shares were reissued @ \u20b9 7 per share. Pass journal entries for forfeiture and reissue.
      \nAnswer:
      \nJournal Entries
      \n\"Samacheer<\/p>\n

      Question 13.
      \nNathiya Textiles Ltd. forfeited 100 shares of \u20b9 10 each, \u20b9 8 called up, on which Mayuri had paid application and allotment money of \u20b9 6 per share. Of these 75 shares were re-issued to Soundarya by receiving \u20b9 7 per share. Pass journal entries for forfeiture and reissue.
      \nAnswer:
      \n\"Samacheer<\/p>\n

      Question 14.
      \nSimon Ltd issued 50,000 equity shares of \u20b9 10 each at par payable on application \u20b9 1 per share, on allotment \u20b9 5 per share, on first call \u20b9 2 per share and on second and final call \u20b9 2 per share. The issue was fully subscribed and all the amounts were duly received with the exception of 2,000 shares held by Chezhian, who failed to pay the second and final call. His shares were forfeited and reissued to Elango at \u20b9 8 per share. Journalise the above transactions.
      \nJournal Entries
      \n\"Samacheer<\/p>\n

      Question 15.
      \nKanchana Ltd. issued 50,000 shares of \u20b9 10 each payable as under.
      \nOn application – \u20b9 1
      \nOn allotment – \u20b9 5
      \nOn first call – \u20b9 2
      \nOn final call – \u20b9 2
      \nApplications were received for 70,000 shares. Applications for 8,000 shares were rejected and allotment was made proportionately towards remaining applications. The directors made both the calls and the all the amount were received except the final call on 1,500 shares which were subsequently forfeited. Later 1,200 forfeited shares were reissued by receiving \u20b9 8 per share. Give journal entries.
      \nAnswer:
      \nJournal Entries
      \n\"Samacheer<\/p>\n

      Question 16.
      \nViswanath Furniture Ltd. invited applications for 20,000 shares of \u20b9 10 each at a premium of \u20b9 2 per share payable.
      \n\u20b9 2 on application
      \n\u20b9 5 (including premium) on allotment
      \n\u20b9 5 on first and final call
      \nThere was over subscription and applications were received for 30,000 shares and the excess applications were rejected by the directors. Pass the journal entries.
      \nAnswer:
      \nJournal Entries
      \n\"Samacheer<\/p>\n

      Question 17.
      \nUnited Industries Ltd. issued shares of \u20b9 10 each at 10% premium payable \u20b9 3 on application, \u20b9 4 on allotment (including premium), \u20b9 2 on first call and \u20b9 2 on final call.<\/p>\n

      Journalise the transactions relating to forfeiture of shares for the following situations: Manoj who holds 250 shares failed to pay the second and final call and his shares were forfeited. Manoj who holds 250 shares failed to pay the allotment money and first call and second and final call and his shares were forfeited. Manoj who holds 250 shares failed to pay the allotment money and first call money and his shares were forfeited after the first call.
      \nAnswer:
      \nJournal Entries
      \n\"Samacheer<\/p>\n

      Question 18.
      \nKasthuri Ltd. had allotted 20,000 shares to applicants of 30,000 shares on a pro – rata basis. The amount payable was \u20b9 1 on application, \u20b9 5 on allotment (including premium of \u20b9 2 each), and \u20b9 2 on first call and \u20b9 2 on final calls. Subin, a shareholder failed to pay the first call and final call on his 500 shares. All the shares were forfeited and out of them 400 shares were re-issued @ \u20b9 8 per share. Pass necessary journal entries.
      \nAnswer:
      \nJournal Entries
      \n\"Samacheer<\/p>\n

      Question 19.
      \nVairam Ltd. issued 60,000 shares of \u20b9 10 each at a premium of \u20b9 2 per share payable as follows:
      \nOn application \u20b9 6
      \nOn allotment \u20b9 4 (including premium)
      \nOn first and final call \u20b9 2
      \nIssue was fully subscribed and the amounts due were received except Saritha to whom 1,000 shares were allotted who failed to pay the allotment money and first and final call money. Her shares were forfeited. All the forfeited shares were reissued to Parimala at \u20b9 7 per share. Pass journal entries.
      \nAnswer:
      \nJournal Entries
      \n\"Samacheer<\/p>\n

      Question 20.
      \nAbdul Ltd. issues 50,000 shares of \u20b9 10 each at a premium of \u20b9 2 per share. Pass journal entry if the amount is fully received along with premium amount of \u20b9 2 per share.
      \n\"Samacheer<\/p>\n

      Question 21.
      \nParadise Ltd. purchased assets of \u20b9 4,40,000 from Suguna Furniture Ltd. It issued equity shares of \u20b9 10 each fully paid in satisfaction of their claim. What entries will be made if such issue is: (a) at par and (b) at premium of 10%.
      \nAnswer:
      \n\"Samacheer
      \nTotal Amount = \u20b9 4,40,000 Face value of shares is 10.
      \nPremium @ 10% = Premium amt Rs. 1.
      \nIssue Price = Face Value + Securities Premium 10 + 1 = 11
      \nNo. of Equity Shares = \\(\\frac{\\text { Total amount }}{\\text { Issue price }}\\) = \\(\\frac { 440000 }{ 11 }\\)
      \n= 40,000 Shares<\/p>\n

      Samacheer Kalvi 12th Accountancy Company Accounts Additional Questions and Answers<\/h3>\n

      I. Choose the correct answer<\/span><\/p>\n

      Question 1.
      \nEquity Share holders are ………………
      \n(a) Creditors
      \n(b) Owners
      \n(c) Directors
      \n(d) None of these
      \nAnswer:
      \n(b) Owners<\/p>\n

      Question 2.
      \nMoney received in advance from share holders before it is actually called – up by the director is
      \n(a) debited to calls – in – advance A\/c
      \n(b) Cr to Calls – in – advance A\/c
      \n(c) Dr to calls A\/c
      \n(d) none of the above
      \nAnswer:
      \n(b) Cr to Calls – in – advance A\/c<\/p>\n

      Question 3.
      \nSecurities Premium Reserve can be used for ………………
      \n(a) Paying interest on debentures
      \n(b) meeting the cost of issue of shares
      \n(c) Paying tax liability
      \n(d) Paying dividend as shares
      \nAnswer:
      \n(b) meeting the cost of issue of shares<\/p>\n

      Question 4.
      \nWhen share are alloted which of the following account is credited?
      \n(a) Share capital A\/c
      \n(b) Share Allotment A\/c
      \n(c) Share Application Ac
      \n(d) Shareholders Ac
      \nAnswer:
      \n(a) Share capital Ac<\/p>\n

      Question 5.
      \nRight issue of shares is issued to ………………
      \n(a) Directors
      \n(b) Employees
      \n(c) Existing Shareholders
      \n(d) Shareholder A\/c
      \nAnswer:
      \n(c) Existing Shareholders<\/p>\n

      Question 6.
      \nAt what rate a company is required to change interest on calls – in – arrears?
      \n(a) 12% p.a.
      \n(b) 10% p.a.
      \n(c) 5% p.a.
      \n(d) 6% p.a.
      \nAnswer:
      \n(b) 10% p.a.<\/p>\n

      Question 7.
      \nAt what rate a company is required to pay interest on calls – in – arrears?
      \n(a) 6% p.a.
      \n(b) 12% p.a.
      \n(c) 10% p.a.
      \n(d) 5% p.a.
      \nAnswer:
      \n(b) 12% p.a.<\/p>\n

      Question 8.
      \nAccording to Companies Act 2000, a company limited by share can issue ……………… kinds of shares.
      \n(a) 1
      \n(b) 2
      \n(c) 3
      \nAnswer:
      \n(b) 2<\/p>\n

      Question 9.
      \nThe maximum calls that a company can make is ………………
      \n(a) one
      \n(b) two
      \n(c) three
      \nAnswer:
      \n(c) three<\/p>\n

      Question 10.
      \nCapital Reserve is shown on the side of balance sheets ………………
      \n(a) Assets
      \n(b) Liability
      \n(c) Both
      \nAnswer:
      \n(b) Liability<\/p>\n

      II. Fill in the blanks<\/span><\/p>\n

      Question 11.
      \nWhen excess application money is adjusted towards allotment it is called as ……………… allotment.
      \nAnswer:
      \nPro – rata<\/p>\n

      Question 12.
      \nThere should be a time gap of between two calls.
      \nAnswer:
      \nOne month<\/p>\n

      Question 13.
      \nCapital Reserve represent ……………… profit.
      \nAnswer:
      \nCapital<\/p>\n

      Question 14.
      \nReserve Capital can be issued at the time of ………………
      \nAnswer:
      \nWinding up<\/p>\n

      Question 15.
      \nA Company may also issue shares as consideration for business, to ……………… for their services ……………… for their commission.
      \nAnswer:
      \nPromotors, Brokers<\/p>\n

      III. Assertion and Reason<\/span><\/p>\n

      Question 16.
      \n(i) Assertion : When a shareholder default in making payment of allotment\/call money share may be forfeited.
      \n(ii) Reason : Share forfeited can be reissued at par, discount or premium.
      \n(a) (i) and (ii) are correct
      \n(b) (i) is correct (ii) is incorrect
      \n(c) (i) and (iii) are incorrect
      \n(d) (i) is incorrect (ii) is correct
      \nAnswer:
      \n(a) (i) and (ii) are correct<\/p>\n

      IV. Match the following<\/span><\/p>\n

      Question 17.
      \n\"Samacheer
      \nAnswer:
      \n(3) (d) (c) (a) (b)<\/p>\n

      V. Very Short Answer Questions<\/span><\/p>\n

      Question 1.
      \nName different types of share capital.
      \nAnswer:<\/p>\n

        \n
      1. Authorised share capital.<\/li>\n
      2. Issued share capital.<\/li>\n
      3. Subscribed share capital.<\/li>\n
      4. Called – up – share capital.<\/li>\n
      5. Paid – up – share capital and.<\/li>\n
      6. Reserve capital.<\/li>\n<\/ol>\n

        Question 2.
        \nWhat is meant by Authorised Capital?
        \nAnswer:
        \nThis is the amount stated in the capital clause of the memorandum of association with which the company was registered. It is the maximum amount a company can raise during the life time.<\/p>\n

        Question 3.
        \nWhat do you mean by Capital Reserve?
        \nAnswer:
        \nIt is that reserve which is created out of capital profits such as profit on sale of fixed assets, profit on revaluation of assets, premium on issue of shares and debentures, etc.<\/p>\n

        Question 4.
        \nWhat is meant by Pro – rata Allotment of shares?
        \nAnswer:
        \nPro – rata allotment is that allotment of shares when applications may be allotted in less number of shares than they have applied for.<\/p>\n

        Question 5.
        \nDefine Equity shares.
        \nAnswer:
        \nEquity shares are those shares which are not entitled to a fixed rate of dividend. Dividend is paid on these shares after it is paid on preference shares. Equity share capital is returned only when preference shares is returned.<\/p>\n

        VI. Short Answer Questions<\/span><\/p>\n

        Question 1.
        \nIn what purpose Securities Premium Reserve Amount is used?
        \nAnswer:
        \nAccording to Section 52(2) of Companies Act 2013. Securities Premium Reserve can be used.<\/p>\n

          \n
        1. To issue fully paid-up bonus shares to the shareholders.<\/li>\n
        2. To write off preliminary expenses of the companies.<\/li>\n
        3. To write off the commission paid or discount\/exp on issue of shares\/debentures.<\/li>\n
        4. To pay premium on the redemption of preference shares or debentures of the company.<\/li>\n<\/ol>\n

          Question 2.
          \nWhat are the difference between under subscription and over subscription?
          \nAnswer:<\/p>\n\n\n\n\n\n\n\n
          S. No.<\/td>\nBasis for Difference<\/td>\nUnder Subscription<\/td>\nOver Subscription<\/td>\n<\/tr>\n
          1.<\/td>\nMeaning<\/td>\nThe number of shares applied for is less than shares offered to the public for subscription.<\/td>\nThe number of shares applied for is more than the shares offered to the public for subscription.<\/td>\n<\/tr>\n
          2. .<\/td>\nMinimum Subscription<\/td>\nThe problem of minimum subscription may arise<\/td>\nThe problem of minimum subscription does not arise.<\/td>\n<\/tr>\n
          3.<\/td>\nAllotment of Shares<\/td>\nAll the applications for shares are allotted.<\/td>\nSome applications are to be rejected.<\/td>\n<\/tr>\n
          4.<\/td>\nRefund<\/td>\nThere is no question of refund of money.<\/td>\nMoney is refunded to applicants whose applications are rejected.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

          VII. Exercise<\/span><\/p>\n

          Question 1.
          \nA company forfeited 200 shares of \u20b9 20 each, \u20b9 15 per share called up on which \u20b9 10 per . share had been paid. Directors reissued all the forfeited shares. @ \u20b9 15 per share paid up for the payment of \u20b9 10 each. Give the journal entries.
          \nAnswer:
          \nJournal Entries
          \n\"Samacheer<\/p>\n

          Question 2.
          \nA company forfeited 200 shares of \u20b9 10 each fully called up for non – payment of first call of \u20b9 2\/- per share and final call of \u20b9 3 per share. 120 of these shares were reissued at \u20b9 6\/- per share fully paid up. Give the necessary entries.
          \nAnswer:
          \n\"Samacheer<\/p>\n

          Calculation of Amount Transfer to Capital Reserve:
          \nNo of shares x (Reissue price – paid up amount)
          \n120 x (6 – 5)
          \n= 120 x 1 = \u20b9 120.<\/p>\n

          Question 3.
          \nGlobal Ltd issued 6000 shares of \u20b9 100\/- each at premium of \u20b9 20 per share payable as follow
          \n\u20b9 30 on Application
          \n\u20b9 50 on Allotment (including premium)
          \n\u20b9 30 on First call and
          \n\u20b9 10 on final call
          \nAll shares were duly subscribed and money due were received. Pass Journal Entries.
          \nAnswer:
          \nJournal Entries
          \n\"Samacheer<\/p>\n

          Question 4.
          \nSun Ltd offered for subscription 20,000 shares of \u20b9 10\/- each payable
          \n\u20b9 2.50 in Application
          \n\u20b9 5 on Allotment
          \n\u20b9 3 on First call
          \n\u20b9 2 on Final call
          \nApplications were received for 30,000 shares.
          \nApplication for 5,000 shares were rejected. Application money for other 5,000 shares was applied towards the amount due on allotment. Pass Journal Entries.
          \n\"Samacheer“321” class=”alignnone size-full wp-image-36721″ \/><\/p>\n

          Question 27.
          \nAnbu and Shankar are partners in a business sharing profits and losses in the ratio of 7 : 5. The balance sheet of the partners on 31.03.2018 is as follows:
          \n\"Samacheer
          \nRajesh is admitted for 1\/5 share on the following terms:<\/p>\n

            \n
          1. Goodwill of the firm is valued at \u20b9 80,000 and Rajesh brought cash \u20b9 6,000 for his share of goodwill.<\/li>\n
          2. Rajesh is to bring \u20b9 1,50,000 as his capital.<\/li>\n
          3. Motor car is valued at \u20b9 2,00,000; stock at \u20b9 3,80,000 and debtors at \u20b9 3,50,000.<\/li>\n
          4. Anticipated claim on workmen compensation fund is \u20b9 10,000<\/li>\n
          5. Unrecorded investment of \u20b9 5,000 has to be brought into account.<\/li>\n<\/ol>\n

            Prepare revaluation account, capital accounts and balance sheet after Rajesh\u2019s admission.
            \nRevaluation Account
            \n\"Samacheer
            \nCapital Account
            \n\"Samacheer
            \nBalance Sheet as on 31.03.2018
            \n\"Samacheer
            \n\"Samacheer<\/p>\n

            Samacheer Kalvi 12th Accountancy Admission of a Partner Additional Questions and Answers<\/h3>\n

            I. Choose the correct answer<\/span><\/p>\n

            Question 1.
            \nAt the time of admission of a partner calculation of new profit ratio is ………………
            \n(a) not necessary
            \n(b) necessary
            \n(c) optional
            \nAnswer:
            \n(b) necessary<\/p>\n

            Question 2.
            \nIn admission, undistributed profit or loss transferred to ………………
            \n(a) New Partners only
            \n(b) Old Partners only
            \n(c) All the Partners
            \nAnswer:
            \n(b) Old Partners only<\/p>\n

            Question 3.
            \nTo get sacrificing ratio should be deducted from old share ………………
            \n(a) Gaining share
            \n(b) New share
            \n(c) Neither of the two
            \nAnswer:
            \n(b) new share<\/p>\n

            Question 4.
            \nA person who is admitted to the firm is known as ………………
            \n(a) Outgoing partners
            \n(b) Incoming partner
            \n(c) Both
            \nAnswer:
            \n(b) incoming partner<\/p>\n

            Question 5.
            \nAt the time of admission of a new partner the following are revalued ………………
            \n(a) Assets
            \n(b) Liabilities
            \n(c) Both
            \nAnswer:
            \n(c) Both<\/p>\n

            Question 6.
            \nNew profit ratio is calculated at the time of admission, by deducting ………………
            \n(a) Sacrifice from the old ratio
            \n(b) Old ratio from the sacrifice
            \n(c) Sacrifice from the new ratio
            \nAnswer:
            \n(a) Sacrifice from the old ratio<\/p>\n

            Question 7.
            \nOn the admission of a new partner ………………
            \n(a) Old firm has to be dissolved
            \n(b) Old partnership has to be dissolved
            \n(c) Both old firm and partnership have to be dissolved
            \n(d) Neither partnership nor firm has to be dissolved
            \nAnswer:
            \n(b) Old partnership has to be dissolved<\/p>\n

            Question 8.
            \nWhen a new partner brings his share of goodwill in cash, the amount is debited to ………………
            \n(a) Premium A\/c
            \n(b) Cash A\/c
            \n(c) Capital A\/c of old partner
            \n(d) Capital A\/c of new partner
            \nAnswer:
            \n(b) Cash A\/c<\/p>\n

            Question 9.
            \nGoodwill already appearing in the Balance sheet at the time of admission of a partner is transferred to ………………
            \n(a) New Partners\u2019 Capital A\/c
            \n(b) Old Partners\u2019 Capital A\/c
            \n(c) Revaluation A\/c
            \n(d) None of the above
            \nAnswer:
            \n(b) Old Partners\u2019 Capital A\/c<\/p>\n","protected":false},"excerpt":{"rendered":"

            Students can Download Accountancy Chapter 7 Company Accounts Questions and Answers, Notes Pdf, Samacheer Kalvi 12th Accountancy Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations. Tamilnadu Samacheer Kalvi 12th Accountancy Solutions Chapter 7 Company Accounts Samacheer Kalvi 12th Accountancy Company Accounts […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[8],"tags":[],"blocksy_meta":"","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/samacheerguru.com\/wp-json\/wp\/v2\/posts\/11911"}],"collection":[{"href":"https:\/\/samacheerguru.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/samacheerguru.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/samacheerguru.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/samacheerguru.com\/wp-json\/wp\/v2\/comments?post=11911"}],"version-history":[{"count":0,"href":"https:\/\/samacheerguru.com\/wp-json\/wp\/v2\/posts\/11911\/revisions"}],"wp:attachment":[{"href":"https:\/\/samacheerguru.com\/wp-json\/wp\/v2\/media?parent=11911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/samacheerguru.com\/wp-json\/wp\/v2\/categories?post=11911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/samacheerguru.com\/wp-json\/wp\/v2\/tags?post=11911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}