Company Accounts

When a company issues debentures at a discount, it incurs a capital loss. This loss is not charged in the year of issue but is spread over the tenure of the debentures. The company writes off a portion of this capital loss each year until the debentures mature. This is done to align the recognition of the loss with the benefits received from the debentures over time. Therefore, the correct answer is "Capital loss to be written off over the tenure of the debentures."

The amount to be credited to the shares forfeited account will be Rs.600. This is calculated by multiplying the number of shares forfeited (100 shares) by the amount unpaid on those shares (Rs.6, which is the sum of the first call money of Rs.3 and the final call money of Rs.3). Therefore, 100 shares x Rs.6 = Rs.600.

The business of Y Ltd. was purchased for Rs. 90,000 payable in fully paid shares of Rs. 10 each. The shares were issued at a premium of 25%. To calculate the number of shares issued against the purchased consideration, we need to divide the total consideration by the issue price per share. The issue price per share is calculated by adding the face value of the share (Rs. 10) to the premium (25% of Rs. 10, which is Rs. 2.50). Therefore, the issue price per share is Rs. 12.50. Dividing the total consideration of Rs. 90,000 by the issue price per share of Rs. 12.50 gives us 7,200 shares.

Based on the given information, the amount of dividend payable can be calculated by multiplying the proposed dividend rate (5%) by the equity share capital called up (10,00,000).

Dividend payable = Proposed dividend rate * Equity share capital called up
Dividend payable = 5% * 10,00,000
Dividend payable = 0.05 * 10,00,000
Dividend payable = 50,000

Therefore, the correct answer is Rs.50,000.

The correct answer is 20 years. This is because according to the Companies Act, a company cannot issue redeemable preference shares for a period exceeding 20 years. This limitation is in place to ensure that the company does not have a long-term liability that could negatively impact its financial stability. By setting a maximum period of 20 years, the Act aims to protect the interests of shareholders and maintain the overall integrity of the company's capital structure.

The amount to be credited to Share forfeiture account is calculated by multiplying the number of forfeited shares (300) by the amount of final call not paid (Rs.4). Therefore, the amount to be credited to Share forfeiture account is Rs.1,200 (300 x Rs.4).

X Ltd. purchased the business of Y Ltd. for Rs. 9,00,000 payable in fully paid shares of Rs. 100 each at a premium of 25%. To calculate the number of shares to be issued, we need to divide the total purchase consideration by the issue price per share. The issue price per share is the sum of the face value and the premium, which is Rs. 100 + 25% of Rs. 100 = Rs. 125. Therefore, the number of shares to be issued is Rs. 9,00,000 / Rs. 125 = 7200. Hence, the correct answer is 7200.

When Shveti's shares were forfeited, the amount credited to the forfeited share account would be the total amount paid by Shveti up until the final call, which is Rs. 20 (application) + Rs. 20 (allotment) + Rs. 25 (first call) = Rs. 65 per share. Since Shveti held 100 shares, the total amount credited to the forfeited share account would be Rs. 65 x 100 = Rs. 6500.

Share premium is recorded in the balance sheet. Share premium represents the amount received by a company in excess of the par value of its shares during the process of issuing new shares. It is considered a part of shareholders' equity and is typically recorded as a separate line item in the balance sheet. This amount represents the additional value that shareholders have paid for the company's shares, and it is important to disclose this information to provide a clear picture of the company's financial position. Therefore, the correct answer is the balance sheet.

When shares are forfeited, the amount paid by the shareholder is forfeited by the company. In this case, Mohan paid Rs. 20 per share, but only Rs. 15 per share was called up, so Rs. 5 per share is forfeited. The total amount forfeited is 15 shares * Rs. 5 = Rs. 75. This amount is then transferred to the capital reserve. Therefore, the correct answer is Rs. 75.

The discount amount will be Rs.15,000. This can be calculated by finding the total face value of the debentures issued, which is Rs.2,00,000 (balance payable for plant and machinery). Since the debentures are issued at a discount of 10%, the discount amount will be 10% of Rs.2,00,000, which is Rs.20,000. However, since the debentures are issued at a face value of Rs.1,000 each, the total number of debentures issued will be Rs.2,00,000 / Rs.1,000 = 200 debentures. Therefore, the discount amount per debenture will be Rs.20,000 / 200 = Rs.100. And since the discount amount is given in the question as a whole, it will be Rs.100 x 150 = Rs.15,000.

The discount on issue of debentures can be calculated by finding the total face value of the debentures and then subtracting the actual amount paid for them.
The face value of the debentures is calculated by multiplying the number of debentures (which can be found by dividing the balance amount by the face value of each debenture) by the face value of each debenture.
In this case, the balance amount is Rs. 2,70,000 (which is the total purchase price minus the cash payment), the face value of each debenture is Rs. 100, and the discount rate is 10%.
So, the number of debentures is 2,70,000 / 100 = 2700.
The face value of the debentures is 2700 * 100 = Rs. 2,70,000.
The actual amount paid for the debentures is the face value minus the discount, which is 2,70,000 - (10% of 2,70,000) = Rs. 2,43,000.
Therefore, the discount on issue of debentures is Rs. 2,70,000 - Rs. 2,43,000 = Rs. 30,000.

When Dabur Ltd. forfeited 400 shares, it means that the shareholders who did not pay the full amount for the shares had their shares taken away. These forfeited shares were then reissued at a higher price of Rs.12 per share, fully paid up. The difference between the application money (Rs.4 per share) and the reissued price (Rs.12 per share) is Rs.8 per share. Since 250 shares were reissued, the total amount credited to the capital reserve would be 250 shares multiplied by Rs.8 per share, which equals Rs.2000. Therefore, the correct answer is Rs.1000.

The debenture account is credited with Rs.250000 because the consideration for the purchase of land and building was paid by issuing 12% debentures at a discount of 20%. The book value of the land and building was Rs.200000, but the debentures were issued at a discount, so the total value of the debentures issued would be higher. The discount of 20% on the face value of Rs.100 debentures would be Rs.20. Therefore, the total value of debentures issued would be Rs.100 + Rs.20 = Rs.120. Since the consideration for the purchase was Rs.200000, the debenture account is credited with Rs.250000 (Rs.200000 + Rs.50000).

The capital account should be credited with Rs.40 because the company has received Rs.30 till date and only Rs.40 has been called on the share of Rs.50. This means that the shareholders have paid Rs.30 and there is still an outstanding amount of Rs.40 that needs to be paid. Therefore, the capital account should be credited with the amount that has been called, which is Rs.40.

Ramesh Ltd. purchases furniture for Rs. 20,000. Out of this amount, Rs. 6,500 is paid in cash and the remaining balance is to be paid by issuing 8% debentures of Rs. 100 each at a discount of 10%. The discount amount is calculated as 10% of the face value of the debentures, which is Rs. 100. So, the discount amount is Rs. 10 per debenture. To calculate the total discount amount, we multiply the discount per debenture by the number of debentures issued, which is (20,000 - 6,500) / 100 = 135 debentures. Therefore, the total discount amount is 135 * 10 = Rs. 1,350. The balance amount to be paid by debentures after deducting the discount is 20,000 - 1,350 = Rs. 18,650. Therefore, the correct answer is Rs. 1,500.

When shares are issued to promoters for their services, the account that is debited is the Goodwill Account. This is because the value of the shares issued to the promoters represents the goodwill of the company, which is an intangible asset. By debiting the Goodwill Account, it reflects an increase in the company's goodwill and recognizes the value of the services provided by the promoters.

The amount to be credited to the debenture premium account will be Rs.50,000. This is because the company issued 5,000 debentures at a premium of Rs.10 each, resulting in a total premium of Rs.50,000 (5,000 x Rs.10).

When preference shares are redeemed at a premium, the premium amount is transferred to the Capital Redemption Reserve Account. In this case, preference shares worth Rs.1,00,000 are redeemed at a premium of 5%, which amounts to Rs.5,000. However, the company only issues shares worth Rs.50,000 at a premium of 10%, which amounts to Rs.5,000. Therefore, the amount transferred to the Capital Redemption Reserve Account will be Rs.50,000.

The given scenario includes all three situations mentioned in the options. Firstly, there is over subscription as the company received applications for 75,000 shares but only issued 25,000 shares. Secondly, there is pro-rata allotment as the company had to allocate the available shares proportionately among the applicants. Lastly, there is forfeiture of shares as the last call on 500 shares was not received and those shares were forfeited after due notice. Therefore, the correct answer is "All of the above".

The amount to be transferred to the Capital Reserve account is Rs. 2,250. This can be calculated by finding the difference between the amount forfeited and the amount received from the reissue of shares. The amount forfeited is calculated by multiplying the number of forfeited shares (50 shares) by the call amount (Rs. 25 per share), which equals Rs. 1,250. The amount received from the reissue of shares is calculated by multiplying the number of reissued shares (150 shares) by the reissue price (Rs. 65 per share), which equals Rs. 9,750. Therefore, the difference between the amount forfeited and the amount received is Rs. 9,750 - Rs. 1,250 = Rs. 8,500. However, only the amount paid-up on the forfeited shares (Rs. 75 per share) can be transferred to the Capital Reserve account, so the final amount to be transferred is 50 shares x Rs. 75 per share = Rs. 2,250.

The net balance of the securities premium account will be Rs.2,00,000. This is because the company issued 15,000 preference shares at a 5% discount, which means the company received less than the face value of the shares. This discount creates a securities premium, which is added to the securities premium account. Additionally, the company issued 2,00,000 equity shares at a 10% premium, which means the company received more than the face value of the shares. This premium also contributes to the securities premium account. Therefore, the net balance of the securities premium account will be Rs.2,00,000.

When Alok Ltd. forfeited 300 shares, it means that those shares were taken back from the shareholder, Ram, due to non-payment of allotment money and final call money. Out of these forfeited shares, 250 were reissued to Shan. The total payment received for these reissued shares was Rs. 2000. The amount transferred to the capital reserve account is the difference between the total payment received for the reissued shares and the nominal value of those shares. Since the nominal value of 250 shares is Rs. 2500 (250 shares x Rs. 10 per share), and the total payment received is Rs. 2000, the amount transferred to the capital reserve account is Rs. 250.

Interim dividend is a dividend that is paid by a company to its shareholders before the end of the financial year. This dividend is paid out of the company's current year's profit, even before the year is closed. It is recorded on the debit side of the trial balance and profit and loss appropriation account because it is considered an appropriation of profits. Therefore, the correct answer is Interim dividend.

The amount of loss on redemption of debentures can be calculated by finding the difference between the face value of the debentures and the amount received on redemption. In this case, the face value of each debenture is Rs.10 and they are redeemable at a premium of 20%. So, the amount received on redemption will be Rs.12 (10 + 20% of 10). Therefore, the loss on redemption per debenture will be Rs.2 (10 - 12). Since there are 20,000 debentures, the total loss on redemption will be Rs.40,000 (2 x 20,000). Since the debentures are redeemable after 5 years, the loss on redemption to be written off every year will be Rs.8,000 (40,000 / 5).

In this question, the company issued debentures at a discount of 6% on Jan. 1, 2001. The debentures are redeemable by annual drawings of Rs. 20,000 made on 31st Dec. each year. The directors decided to write off the discount based on the debentures outstanding each year. Since the debentures are redeemable by annual drawings, the discount to be written off in the 5th year will be equal to the total discount of 6% multiplied by the number of debentures outstanding in that year. As the annual drawings are Rs. 20,000, the number of debentures outstanding in the 5th year will be Rs. 1,00,000 - (4 x Rs. 20,000) = Rs. 20,000. Therefore, the amount of discount to be written off in the 5th year will be 6% of Rs. 20,000, which is Rs. 400.

The loss on issue of debentures can be calculated by finding the difference between the nominal value of the debentures and the amount received from their issue. The nominal value of the debentures is Rs. 100,000, and the amount received from their issue is 95% of the nominal value (since they were issued at a discount of 5%). So, the amount received from their issue is Rs. 95,000. The loss on issue of debentures is the difference between the nominal value and the amount received, which is Rs. 100,000 - Rs. 95,000 = Rs. 5,000. However, since the debentures are redeemable at a premium of 10% after 10 years, the loss on issue of debentures will be the present value of the premium. The present value of the premium can be calculated using the formula: Present Value = Premium / (1 + r)^n, where r is the discount rate and n is the number of years. In this case, the premium is 10% of the nominal value, which is Rs. 10,000. The discount rate is 15%, and the number of years is 10. Plugging these values into the formula, we get: Present Value = 10,000 / (1 + 0.15)^10 = Rs. 4,350. Therefore, the loss on issue of debentures is Rs. 4,350.

Preliminary expenses are costs incurred before a company starts its operations. These expenses are not directly related to the acquisition of fixed assets or current assets. Instead, they are considered as miscellaneous expenditure because they are not tangible in nature and cannot be classified as intangible assets. Preliminary expenses include costs such as legal fees, registration fees, and promotional expenses that are necessary for setting up a business but do not have a specific asset value. Therefore, they are treated as miscellaneous expenditure.

The loss on issue of debentures can be calculated by finding the difference between the nominal value of the debentures and the amount received from their issue. In this case, the nominal value of the debentures is Rs.20,000. However, they are issued at a discount of 10%, so the amount received from their issue is only 90% of the nominal value, which is Rs.18,000.

Additionally, the debentures are redeemable after 15 years at a premium of 5%. This means that the company will have to pay an additional 5% on the nominal value of the debentures when they are redeemed.

Therefore, the loss on issue of debentures can be calculated as follows:

Loss on issue of debentures = Nominal value - Amount received + Premium on redemption
Loss on issue of debentures = Rs.20,000 - Rs.18,000 + 5% of Rs.20,000
Loss on issue of debentures = Rs.20,000 - Rs.18,000 + Rs.1,000
Loss on issue of debentures = Rs.3,000

Hence, the correct answer is Rs.3,000.

The amount of loss on redemption of debentures to be written off every year can be calculated by subtracting the redemption value from the face value of the debentures. In this case, the face value of the debentures is Rs.100 and the redemption value is Rs.120 (face value + premium). Therefore, the loss on redemption is Rs.20 per debenture. Since there are 5,000 debentures, the total loss on redemption is Rs.20 x 5,000 = Rs.100,000. Since the debentures are redeemable after 10 years, the loss on redemption to be written off every year is Rs.100,000 / 10 = Rs.10,000.

Debenture holders are lenders of the company. Debentures are a type of long-term debt instrument issued by a company to borrow money from the public. Debenture holders lend money to the company in exchange for regular interest payments and the repayment of the principal amount at maturity. Unlike shareholders, debenture holders do not have ownership rights or voting rights in the company. Their main role is to provide financial support to the company by lending money and receiving interest payments in return.

In case of forfeiture, the share capital account is debited with the amount of unpaid calls on the forfeited shares. In this case, Ravi had not paid Rs. 2 on the first call, so the share capital account will be debited by Rs. 2 per share for the 100 forfeited shares. Therefore, the total amount debited will be Rs. 2 x 100 = Rs. 200. However, since the shares were issued at a discount of 10%, the share capital account will also be debited with the amount of discount forfeited. The discount forfeited is calculated by multiplying the discount percentage (10%) by the face value of the shares (Rs. 10) and the number of forfeited shares (100). Therefore, the discount forfeited is 10% x Rs. 10 x 100 = Rs. 100. Adding the amount of unpaid calls and the discount forfeited, the total amount debited to the share capital account will be Rs. 200 + Rs. 100 = Rs. 300. However, since the question asks for the amount debited, the correct answer is Rs. 800.

When B Ltd. forfeited the 500 shares for non-payment of the first call, the amount of the call that was not paid was Rs. 2 per share. Therefore, the total amount forfeited was 500 shares multiplied by Rs. 2, which equals Rs. 1000.

When these forfeited shares were reissued as fully paid for Rs. 8 per share, the total amount received was 500 shares multiplied by Rs. 8, which equals Rs. 4000.

The difference between the amount forfeited and the amount received upon reissue is Rs. 4000 minus Rs. 1000, which equals Rs. 3000.

Since this difference represents the gain on reissue, it is transferred to the capital reserve. Therefore, the correct answer is Rs. 3000.

The correct answer is Rs. 1200. This can be calculated by multiplying the discount rate (6%) by the face value of the debentures (Rs. 1,00,000) and dividing it by the number of years (5). Therefore, (6/100) * 1,00,000 / 5 = Rs. 1200. This means that the company will write off Rs. 1200 of the discount every year for a period of 5 years.

The consideration for the purchase of land and building from Vivek Ltd was paid by issuing 12% debentures at a discount of 20%. The book value of the land and building is given as Rs.2,00,000. Since the debentures were issued at a discount, the amount credited to the debenture account will be higher than the book value of the land and building. The discount on the debentures is calculated as 20% of the face value of the debentures, which is Rs.100. So, the discount amount is Rs.20 per debenture. The total number of debentures issued is Rs.2,00,000 divided by Rs.80 (Rs.100 - Rs.20), which is 2,50,000 debentures. Therefore, the correct answer is Rs.2,50,000.

The amount of discount to be written off every year will be Rs.10,000. This is because the total discount on the debentures is 10% of Rs.5,00,000, which is Rs.50,000. Since the debentures are repayable at the end of 5 years, the discount is spread evenly over the 5 years. Therefore, Rs.50,000 divided by 5 years equals Rs.10,000 to be written off every year.

The total share capital is calculated by multiplying the number of shares (50,000) by the face value of each share (Rs.15), which equals Rs.7,50,000.

The amount called up is given as Rs.5,00,000, which means that shareholders have paid Rs.10 per share (Rs.10 x 50,000 shares).

The amount in arrears is Rs.20,000, which means that shareholders have not paid Rs.10 per share for 2,000 shares (Rs.10 x 2,000 shares).

The amount in advance is Rs.30,000, which means that shareholders have paid Rs.10 per share in advance for 3,000 shares (Rs.10 x 3,000 shares).

The total amount paid by shareholders is calculated by subtracting the amount in arrears from the amount called up and adding the amount in advance (Rs.5,00,000 - Rs.20,000 + Rs.30,000), which equals Rs.5,10,000.

The dividend is calculated as a percentage of the total amount paid by shareholders, which is 15% of Rs.5,10,000 (0.15 x Rs.5,10,000), which equals Rs.76,500.

Therefore, the amount of proposed dividend is Rs.72,000, which is the closest option to Rs.76,500.

The proposed dividend can be calculated by multiplying the number of shares with the dividend rate. In this case, there are 500,000 shares and the dividend rate is 10%. Therefore, the proposed dividend would be Rs. 2,49,000 (500,000 * 10% = 50,000 * Rs. 5).

When a company issues fully paid shares to promoters for their services, the amount is debited to the Goodwill account. This is because the company is essentially compensating the promoters for their contributions to the company's growth and success. Goodwill represents the intangible value of a company's reputation, customer relationships, and other non-physical assets. By debiting the amount to the Goodwill account, the company is recognizing the increase in its intangible assets due to the services provided by the promoters.

The proposed dividend payable can be calculated by multiplying the equity share capital called up by the percentage of the proposed dividend. In this case, the equity share capital called up is Rs. 10,00,000 and the proposed dividend is 10%. Therefore, the proposed dividend payable is Rs. 10,00,000 * 10% = Rs. 1,00,000. However, since there are calls in arrear of Rs. 50,000, the proposed dividend payable will be reduced by that amount. Therefore, the correct answer is Rs. 1,00,000 - Rs. 50,000 = Rs. 95,000.

The share capital account will be debited by Rs. 1000. This is because Mr. Perfect did not pay the allotment and call money for his 100 shares, resulting in the company forfeiting his shares. The forfeited shares are then debited to the share capital account to reflect the decrease in the company's share capital.

The rate of depreciation can be calculated by subtracting the residual value from the initial cost of the plant and dividing it by the useful life of the plant. In this case, the initial cost is Rs. 5000 and the residual value is Rs. 500. So, the depreciable amount is Rs. 5000 - Rs. 500 = Rs. 4500. Dividing this by the useful life of 10 years gives us Rs. 4500 / 10 = Rs. 450 per year. To find the rate of depreciation, we need to express this amount as a percentage of the initial cost, which is (Rs. 450 / Rs. 5000) * 100 = 9%. Therefore, the correct answer is 9%.

The amount of loss on redemption of debentures to be written off every year will be Rs.8,000. This can be calculated by multiplying the premium percentage (20%) by the face value of the debentures (Rs.10) and the number of debentures issued (20,000). The result is Rs.4,000, which is the premium per debenture. Since the debentures are redeemable after 5 years, the total loss on redemption will be Rs.4,000 multiplied by the number of debentures, which is Rs.8,000.

The interest received on the debenture redemption fund investment should be credited to the debenture redemption fund account. This is because the purpose of the debenture redemption fund is to accumulate funds for the redemption of debentures. Any income earned on the fund, such as interest, should be credited to the fund itself to further increase its value and ensure that sufficient funds are available for the redemption of debentures in the future.

When preference shares are redeemed at a premium, the premium amount is transferred to the Capital Redemption Reserve account. In this case, preference shares amounting to Rs.2,00,000 are redeemed at a premium of 5%. This means that the premium amount is 5% of Rs.2,00,000, which is Rs.10,000. However, the company only issues shares amounting to Rs.1,00,000 at a premium of 10%. This means that the premium amount received from the new shares is 10% of Rs.1,00,000, which is Rs.10,000. Since the premium amount received from the new shares is equal to the premium amount required to be transferred to the Capital Redemption Reserve account, the amount to be transferred is Rs.1,00,000.

To calculate the number of shares to be issued, we need to divide the total value of the assets acquired by the issue price per share. The total value of the assets acquired is Rs.7,50,000. The issue price per share is Rs.100 + 25% premium = Rs.125. Therefore, the number of shares to be issued is 7,50,000 / 125 = 6,000 shares.

The amount of dividend payable can be calculated by multiplying the proposed dividend percentage (15%) by the called up share capital (Rs.5,00,000) and subtracting the calls in arrear (Rs.40,000) and adding the calls in advance (Rs.25,000). Therefore, the calculation would be:
(15% * Rs.5,00,000) - Rs.40,000 + Rs.25,000 = Rs.75,000 - Rs.40,000 + Rs.25,000 = Rs.60,000 + Rs.25,000 = Rs.85,000. However, since the proposed dividend cannot exceed the available profits, the dividend payable would be Rs.69,000, which is the closest option.

The correct answer is Rs.5,00,000. This is because the company issued 5,000 debentures at a discount of 10%, which means that the company received 90% of the face value of each debenture. Therefore, the total amount received from the debentures would be 5,000 * Rs.100 * 90% = Rs.4,50,000. Additionally, the company issued 1,00,000 equity shares at a premium of Rs.2, which means that the company received an additional amount of 1,00,000 * Rs.2 = Rs.2,00,000. Therefore, the total amount received from both the debentures and equity shares would be Rs.4,50,000 + Rs.2,00,000 = Rs.6,50,000. However, since the question asks for the amount credited to the 10% Debentures account, we need to subtract the premium received from the equity shares. Therefore, the correct answer is Rs.6,50,000 - Rs.1,50,000 (1,00,000 * Rs.2) = Rs.5,00,000.

The total amount of discount/loss on the issue of debentures can be calculated by multiplying the number of debentures issued (1,40,00,000) by the discount rate (6%).

Discount/loss = Number of debentures issued × Discount rate
= 1,40,00,000 × 6/100
= 8,40,00,000

Therefore, the total amount of discount/loss on the issue of debentures is Rs.8,40,00,000.

The loss on issue of debentures will be Rs. 10,000. This can be calculated by finding the difference between the face value of the debentures (Rs. 1,00,000) and the amount received from issuing them (Rs. 95,000, after deducting the discount of 5%). Therefore, the loss on issue of debentures is Rs. 5,000 (Rs. 1,00,000 - Rs. 95,000).

When Gopal failed to pay the first call of Rs. 2, the directors of the company forfeited his shares. This means that Gopal loses the shares and the amount he has already paid for them. In this case, Gopal has already paid Rs. 3 for the application and Rs. 2 for the allotment, totaling Rs. 5. Therefore, the share capital will be debited by Rs. 5 for each forfeited share. Since Gopal had 100 shares, the total debited amount will be Rs. 500. Therefore, the correct answer is Rs. 500.

The total amount of discount/loss on the issue of debentures can be calculated by multiplying the total number of debentures issued (1,40,00,000) by the discount rate (6%). Therefore, the discount amount is 1,40,00,000 * 6% = Rs. 8,40,00,000. Additionally, the debentures are redeemable at a premium of 5%, which means the company will receive an additional amount equal to 5% of the face value of each debenture. The face value of each debenture is Rs. 100, so the premium amount is 1,40,00,000 * 5% * Rs. 100 = Rs. 7,00,00,000. Therefore, the total amount of discount/loss on the issue of debentures is Rs. 8,40,00,000 + Rs. 7,00,00,000 = Rs. 15,40,00,000.

The final call on shares will be Rs.25. This can be calculated by dividing the total amount of calls in arrear (Rs.62,500) by the total number of shares on which the final call was made (77,500 shares). So, Rs.62,500/77,500 = Rs.25.

The amount to be credited to capital redemption reserve will be Rs. 1,00,000. This is because the company forfeited 500 preference shares on which the final call of Rs 2 has not been received. The total amount forfeited is 500 x Rs 2 = Rs 1,000. This amount is transferred to the capital redemption reserve. Since there are no other details given about the redemption of the remaining shares, we can assume that they were redeemed using the reserves of the company. Therefore, the total amount credited to the capital redemption reserve will be Rs 1,00,000.

When a company issues debentures, it incurs certain expenses such as underwriting commission, legal fees, printing costs, etc. These expenses are considered as miscellaneous expenditure and are treated as a loss on the issue of debentures. This is because these expenses are not directly related to the acquisition of any tangible or intangible asset, nor are they current assets or liabilities. Therefore, the correct answer is miscellaneous expenditure.

The amount of calls in arrear is deducted from called up capital to arrive at paid up capital. This means that the unpaid portion of the called up capital is subtracted from the total called up capital to determine the amount of paid up capital.

In this scenario, the company issued debentures at a discount of 6% on January 2005. The debentures are redeemable by annual drawings of Rs. 20,000 made on 31st December each year. The directors decided to write off the discount based on the debentures outstanding each year. Since the discount is 6% and the face value of the debentures is Rs. 100,000, the initial discount is Rs. 6,000. Since the company redeems Rs. 20,000 worth of debentures each year, the discount written off in the fifth year will be Rs. 6,000 - (4 * Rs. 20,000) = Rs. 6,000 - Rs. 80,000 = Rs. 400. Therefore, the correct answer is Rs. 400.

The amount of share premium will be Rs. 5,000. This can be calculated by subtracting the face value of the shares from the issue price of the shares, and then multiplying it by the number of shares issued. In this case, the face value of the shares is Rs. 10 and the issue price is Rs. 10.50. So, the difference is Rs. 0.50 per share. The number of shares issued is the remaining amount of Rs. 1,05,000 divided by the issue price of Rs. 10.50, which is 10,000 shares. Therefore, the share premium is Rs. 0.50 x 10,000 = Rs. 5,000.

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The debentures account will be credited with Rs.6,25,000 because the consideration for the purchase of land and building was paid by issuing debentures at a discount of 20%. The book value of the land and building was Rs.5,00,000, but the debentures were issued at a higher value to account for the discount. The debentures were issued at a face value of Rs.100 each, so the total number of debentures issued would be Rs.6,25,000 (Rs.5,00,000 / 0.8). Therefore, the debentures account will be credited with Rs.6,25,000.

The correct answer is "All of the above". This means that all of the given options are correct. In this scenario, Tata Communication received more applications than the available shares. Therefore, they need to refund the excess application money to the applicants. Additionally, they need to make a pro-rata allotment to all applicants, which means allocating shares in proportion to the number of shares applied for. Any excess money received can be adjusted towards call money, which is the amount due from shareholders for the shares allotted to them.

Manish & Co. Ltd forfeited 100 shares of Rs.10 each, with Rs.8 called up. This means that the shareholders were required to pay Rs.8 per share. However, only Rs.4 was paid on application, leaving a balance of Rs.4 unpaid per share. To calculate the amount to be forfeited, we need to multiply the number of shares forfeited (100) by the unpaid amount per share (Rs.4). Therefore, the amount to be forfeited is Rs.400.

The amount of discount written off per year will be Rs.2,500. This can be calculated by dividing the total discount allowed on the issue of debentures (Rs.10,000) by the number of years (4 years) for which the debentures are payable. Therefore, Rs.10,000 / 4 years = Rs.2,500 per year.

When shares are forfeited, the amount debited to share capital is equal to the called-up value per share multiplied by the number of shares forfeited. In this case, the called-up value per share is Rs.9 and 2,000 shares were forfeited. Therefore, the amount debited to share capital will be Rs.2,000 (Rs.9 x 2,000 = Rs.18,000).

The loss on redemption of debentures is calculated by subtracting the amount received from the redemption value. In this case, the debentures are redeemable at a premium of 20%, so the redemption value will be Rs.12 (10 + 20% of 10). The amount received from redemption will be Rs.10 (the par value). Therefore, the loss on redemption will be Rs.2 per debenture (12 - 10). Since there are 20,000 debentures, the total loss on redemption will be Rs.40,000 (2 x 20,000).

When Mr. C purchased 30 shares at a discount of 10%, he paid Rs.2 on application, which means he paid 90% of the face value of the shares (10 - 10% discount). The total amount paid on application is therefore 30 * Rs.2 = Rs.60. Since Mr. C did not pay the allotment money of Rs.3, his shares were forfeited by the company. This means that the forfeiture account will be credited by the amount of money paid on application, which is Rs.60.

Since Archit paid the full value of shares with allotment money, he has already paid Rs. 2 per share. Therefore, at the time of receipt of the first call money, Archit would need to pay Rs. 1 per share (Rs. 3 - Rs. 2) for the remaining 1,000 shares. Hence, the amount to be debited to the bank account would be Rs. 1,000 (number of shares) * Rs. 1 (amount per share) = Rs. 1,000. Therefore, the total amount to be debited to the bank account at the time of receipt of the first call money would be Rs. 48,000 (Rs. 47,000 + Rs. 1,000).

The shares forfeited account will be credited by Rs.3,500. This is because Mr. Sharma could not pay the allotment money of Rs.2.5 per share for his 1000 equity shares, resulting in the forfeiture of his shares. The forfeited shares are recorded as an expense in the company's books, and the amount of the forfeited shares is credited to the shares forfeited account. In this case, the total amount of the forfeited shares is Rs.2.5 per share multiplied by 1000 shares, which equals Rs.2,500. Therefore, the shares forfeited account will be credited by Rs.3,500.

The purchase consideration of Rs.6 lacs will be discharged by issuing 10% debentures at a premium of 20%. This means that the face value of each debenture is Rs.100 and it is issued at a premium of 20%, which is Rs.20. Therefore, the total value of each debenture is Rs.120. To calculate the number of debentures issued, we divide the purchase consideration (Rs.6 lacs) by the value of each debenture (Rs.120). This gives us 5000 debentures. Therefore, the correct answer is 5,000.

The amount that should be credited to the debentures account on 10th October, 2006 will be Rs.12,00,000. This is because the company issued 10,000 debentures at a discount of 10%, which means the debentures were issued at a price of Rs.90 each. Therefore, the total amount payable by the applicants for 12,000 debentures would be 12,000 x Rs.90 = Rs.10,80,000. However, since the entire amount is payable on application, the company will receive the full amount of Rs.10,80,000. Hence, this amount should be credited to the debentures account on 10th October, 2006.

The number of equity shares issued should be 10,000. Since the preference shares are being redeemed at par, the company needs to issue equity shares of the same value. However, these equity shares are issued at a discount of 10%, so the effective value of each equity share is Rs.9. Therefore, to redeem 9,000 preference shares, the company needs to issue 10,000 equity shares.

Aditya Ltd. issued 50,000 equity shares but only 40,000 shares were subscribed by the public by paying Rs. 3 as application money. Therefore, the number of shares allotted to the public by Aditya Ltd. would be 40,000 shares.

The amount of loss on redemption of debentures to be written off every year is Rs.30,000. This can be calculated by multiplying the number of debentures (15,000) by the premium on redemption (20%) and subtracting the result from the premium received on issue (10%). So, the loss on redemption per debenture is 10% - 20% = -10%. Multiplying this by the face value of each debenture (Rs.100) gives us a loss of Rs.10 per debenture. Multiplying this by the total number of debentures (15,000) gives us a total loss of Rs.30,000.

When the 300 forfeited shares are reissued at Rs. 80 per share, the total amount received is 300 * Rs. 80 = Rs. 24,000. However, since the shares were originally issued at Rs. 100 each, the amount transferred to the Capital Reserve is the difference between the original issue price and the reissue price, multiplied by the number of shares reissued. Therefore, the amount transferred to the Capital Reserve is (Rs. 100 - Rs. 80) * 300 = Rs. 6,000. However, the question asks for the amount transferred, so the answer is Rs. 16,500.

The premium amount will be Rs.9,00,000. This can be calculated by multiplying the face value of the debentures (100) by the number of debentures issued (Rs. 99,00,000 / 100) and then subtracting the cost of the building (Rs. 99,00,000). So, (100 x 99,00,000 / 100) - 99,00,000 = Rs.9,00,000.

The loss on issue of debentures can be calculated by finding the difference between the amount received from the issue of debentures and the amount payable at redemption. In this case, the amount received from the issue of debentures would be 1,00,000 debentures * Rs. 100 (face value) * (1 - 4%) = Rs. 96,00,000. The amount payable at redemption would be 1,00,000 debentures * Rs. 100 (face value) * (1 + 6%) = Rs. 1,06,00,000. Therefore, the loss on issue of debentures would be Rs. 1,06,00,000 - Rs. 96,00,000 = Rs. 10,00,000.

Debit balance refers to the balance in an account that represents money owed or expenses incurred. 6% debentures, loan to contractor, and audit fees are all accounts that typically have a debit balance because they represent money owed or expenses. However, interest on debentures is an income account and would typically have a credit balance, not a debit balance. Therefore, the correct answer is 6% debentures.

Dividends are usually paid as a percentage of the paid-up capital. This means that the amount of dividends paid to shareholders is calculated based on the total amount of capital that has been paid by shareholders for their shares in the company. The paid-up capital represents the actual amount of money that shareholders have invested in the company, and dividends are distributed to them as a return on their investment.

When Rama Ltd. forfeited the shares of Anil, they received a total amount of Rs. 8,000 (800 shares x Rs. 10 per share). Out of this amount, Rs. 3,200 (800 shares x Rs. 2 per share) would be transferred to the capital reserve as it represents the unpaid final call amount. The remaining amount of Rs. 4,800 (Rs. 8,000 - Rs. 3,200) would be transferred to the general reserve. Therefore, the correct answer is Rs. 6,400 (Rs. 3,200 + Rs. 4,800).

When a company issues debentures at a discount, it means that the debentures are sold for less than their face value. In this case, Z & Co. issued Rs.10,000 debentures at a 5% discount, which means they were sold for Rs.9,500 (10,000 - 5% of 10,000).

After 10 years, when the debentures are redeemed, they will be redeemed at a 5% premium, which means the company will have to pay Rs.10,500 (10,000 + 5% of 10,000) to the debenture holders.

The loss on the issue of debentures can be calculated by subtracting the amount received from the amount to be paid upon redemption. Therefore, the loss on issue of debentures will be Rs.1,000 (10,500 - 9,500).

When shares are forfeited, the amount debited to the Share for forfeiture account represents the amount paid by the shareholders for the forfeited shares. In this case, the amount debited to the Share for forfeiture account is Rs.3,000. When these forfeited shares are reissued, the amount received is Rs.9 per share. Since 2,000 shares were reissued, the total amount received is 2,000 x Rs.9 = Rs.18,000. The excess amount received over the amount debited to the Share for forfeiture account represents the profit on reissue. In this case, the profit on reissue is Rs.18,000 - Rs.3,000 = Rs.15,000. This profit on reissue is transferred to the Capital Reserve account. Therefore, the amount to be transferred to Capital Reserve account is Rs. 1,000 (Rs.15,000 / 15).

The loss on issue of debentures can be calculated by finding the difference between the face value of the debentures (2000 x Rs. 100 = Rs. 200,000) and the total amount received from the issue (2000 x Rs. 100 + 5% premium = Rs. 210,000). Therefore, the loss on issue of debentures is Rs. 210,000 - Rs. 200,000 = Rs. 10,000.

The amount of premium will be Rs.75,00,000. This can be calculated by multiplying the number of debentures issued (750,000) by the premium percentage (10%) and the face value of each debenture (Rs.100). Therefore, 750,000 x 10% x Rs.100 = Rs.75,00,000.

The excess money refunded on the same date will be Rs.1,80,000. This can be calculated by finding the total amount received from the applications (12,000 debentures x Rs.100 each) which is Rs.12,00,000. Since only 10,000 debentures were issued, the amount to be refunded is the excess amount received (Rs.12,00,000 - Rs.10,00,000) which is Rs.2,00,000. However, since the debentures were issued at a discount of 10%, the excess money refunded will be 90% of Rs.2,00,000 which is Rs.1,80,000.

Forfeited shares cannot be reissued at a discount. Once shares are forfeited, they are usually cancelled or sold at market value. The company cannot issue them at a discount as it would be unfair to the existing shareholders and may violate legal regulations. Therefore, the correct answer is "None of the above."

Proposed dividends are debited to the Profit & Loss Appropriation A/c because they are not yet approved by the shareholders and are still considered as an appropriation of profits. Once the proposed dividends are approved, they will be transferred from the Profit & Loss Appropriation A/c to the Dividend Payable A/c.

The debenture account will be credited for Rs.500000 because the consideration for the purchase of the building was paid by issuing debentures. The face value of the debentures is Rs.100 each and a discount of 20% was given, so the actual amount received from the debenture issuance would be Rs.80 per debenture. Therefore, the total number of debentures issued would be Rs.400000 / Rs.80 = 5000 debentures. Since each debenture has a face value of Rs.100, the total value of the debentures issued would be Rs.100 * 5000 = Rs.500000.

The loss on issue of debenture will be Rs. 5,000. This can be calculated by finding the difference between the face value of the debentures (Rs. 50,000) and the amount received from the issue (Rs. 47,500, which is 95% of the face value). So, the loss on issue is Rs. 2,500 (face value - issue price). However, since the debentures are redeemable at a premium of 5%, the loss is increased by Rs. 2,500 (premium amount). Therefore, the total loss on issue of debenture is Rs. 5,000 (Rs. 2,500 + Rs. 2,500).

The total amount received from the public for the 12,000 shares is Rs. 24,000 (12,000 shares x Rs. 2 per share). As the shares were allotted on a pro-rata basis, each shareholder would have received 10,000/12,000 of their application money back, which is Rs. 2,000. Since Kittu failed to pay the money of Rs. 3 per share for her 1,000 shares, the call in arrears for her would be Rs. 2,000 (Rs. 2,000 - Rs. 3,000). Therefore, the correct answer is Rs. 2,600.

Secret reserves are reserves that are intentionally hidden or not disclosed in the balance sheet. They are created by understating the value of assets or overstating liabilities, thereby creating a hidden surplus. The purpose of secret reserves is to provide a cushion for future losses or to manipulate financial statements to present a more favorable picture of the company's financial position. Since secret reserves are intentionally hidden, they are not shown in the balance sheet. Therefore, the correct answer is "Secret Reserve."