Exam based problems of shares are the BEST collection of problems for sure shot success in the examination. These questions are based on board exam.
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EXAM BASRD PROBLEMS AND ANSWERS |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
PROBLEM: 32
Alpha Company Ltd took over the following assets and liabilities of Beta Company at an agreed value of $/₹/Rs 40,50,000:
Debtors Rs 8,00,000 Equipment Rs 25,00,000 Vehicle Rs 6,00,000 |
Creditors Rs 15,00,000 Loan payable Rs 5,00,000 Land and building Rs 21,00,000 |
The company paid purchase price by issuing shares of Rs 100 each at 10% discount.
Required: Journal entries for purchase of business and issue of new shares
[Answer: Goodwill = Rs 50,000; *No. of shares (Rs 40,50,000 ÷ Rs 90) = 45,000
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
PROBLEM: 33
AW Company Ltd accepted the following assets and liabilities at an agreed value of $/₹/Rs 25,20,000:
Building Rs 25,00,000 Furniture Rs 2,00,000 Outstanding expenses Rs 1,00,000 10% Debentures Rs 8,00,000 |
Machinery Rs 10,00,000 Debtors Rs 3,00,000 Creditors Rs 5,00,000 |
The company paid purchase price by issuing shares of Rs 100 each at a premium of 5%.
Required: Journal entries for purchase of business and issue of new shares
[Answer: Capital reserve = Rs 80,000; *No. of shares (Rs 25,20,000 ÷ Rs 105) = 24,000
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
PROBLEM: 34
AS Company Ltd has authorised capital of 50,000 equity shares of $/₹/Rs 100 each. The company issued 30,000 shares at 10% discount to purchase following assets and liabilities of MC Company (P) Ltd:
Land and building Rs 20,00,000 Stock Rs 6,00,000 |
Equipment Rs 5,00,000 Creditors Rs 2,00,000 |
10,000 shares issued to public subscription at par.
Required: (a) Journal entries; (b) Balance sheet
[Answer: PC = Rs 27,00,000; Capital reserve = Rs 2,00,000; BS = Rs 44,00,000]
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Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
PROBLEM: 35
MK Company Ltd purchased following assets and liabilities of NK Company at Rs 6,00,000:
Machinery Rs 4,00,000 Sundry debtors Rs 90,000 Outstanding expenses Rs 30,000 |
Motor bike Rs 80,000 Sundry creditors Rs 90,000 Prepaid insurance Rs 10,000 |
The amount is paid by issuing equity shares of Rs 100 each at Rs 120.
Besides this, the company issued 2,000 shares at 10% discount.
Required: journal entries and opening balance sheet
[Answer: Goodwill = Rs 1,40,000; Balance sheet = Rs 9,20,000]
*No. of equity shares = Rs 6,00,000 ÷ Rs 120 = 5,000
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
PROBLEM: 36
AM Company Ltd issued 10,000 shares of $/₹/Rs 100 each at a premium of 20% to PM Company to purchase the following assets and liabilities:
Machinery Rs 8,00,000 Land Rs 3,00,000 Sundry debtors Rs 4,80,000 |
Sundry creditors Rs 2,00,000 Bank overdraft Rs 3,00,000 Prepaid rent Rs 20,000 |
The company also issued 5,000 shares issued to public subscription at 10% premium.
Required: Journal entries
[Answer: Goodwill = Rs 1,00,000)
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
PROBLEM: 37
HK Company Ltd took over the following assets and liabilities at an agreed purchase price $/₹/Rs 10,50,000.
Equipment Rs 6,50,000 Debtors Rs 2,00,000 Creditors Rs 4,00,000 |
Furniture Rs 3,00,000 Inventory Rs 5,00,000 Outstanding expenses Rs 1,00,000 |
The company paid the purchase consideration issuing equity shares of Rs 100 each at 5% premium.
Required: Journal entries
[Answer: Capital reserve = Rs 1,00,000; Balance sheet = Rs 16,50,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
PROBLEM: 38
XL Company Ltd issued 9,000 shares of $/₹/Rs 100 each at a premium of Rs 10 per share to purchase the following assets and liabilities:
Land and building Rs 600,000 Furniture Rs 50,000 Sundry creditors Rs 50,000 |
Plant and machinery Rs 300,000 Sundry debtors Rs 90,000 Bills payable Rs 30,000 |
Besides, the company also issued 1,000 shares of Rs 100 each at Rs 112 as fully paid.
Required: Journal entries for purchase of business and issue of new shares
[Answer: Goodwill = Rs 30,000)
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
PROBLEM: 39
MS Company Ltd has authorised capital Rs 10,00,000 divided into 6,000 equity shares and 4,000; 7% preference shares of $/₹/Rs 100 each. The company took over the following assets and liabilities on NS Traders at an agreed price of Rs 4,00,000:
Liabilities |
Assets |
Sundry creditors Rs 60,000 Outstanding expenses Rs 15,000 Overdraft balance Rs 10,000 |
Equipment Rs 2,50,000 Sundry debtors Rs 80,000 Stock in trade Rs 1,20,000 |
Payment to this deal will be made by issuing 2,000 equity shares and 2,000 7% preference shares of Rs 100 at par. The company also issued 1,000 equity shares at 10% premium.
[Answer: Goodwill = Rs 35,000; BS = Rs 4,95,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
PROBLEM: 40
AK Company Ltd took over the following assets and liabilities of BK Company Ltd at an agreed purchase price of $/₹/Rs 11,60,000.
Building Rs 5,00,000 Sundry creditors Rs 3,10,000 Cash and bank Rs 22,000 |
Stock in trade Rs 3,60,000 Sundry debtors Rs 4,18,000 Outstanding expenses Rs 10,000 |
Towards this, the company issued 10,000 fully paid equity shares of Rs 100 each at Rs 115 per share, as part payment and the balance amount paid in cash.
The company also issued 2,000 shares to public subscription at 10% discount.
Required: Journal entries and opening balance sheet
[Answer: Goodwill = Rs 1,80,000; Cash paid = Rs 10,000; BS = Rs 16,70,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
PROBLEM: 41
Zonal Company has been registered with the capital of Rs 40,00,000 divided into 40,000 shares of $/₹/Rs 100 each. The company issued 10,000 shares at a premium of 10% to purchase the following assets and liabilities of a District Company
Land and building Rs 4,00,000 Sundry creditors Rs 2,50,000 Sundry debtors Rs 4,00,000 |
Plant and machinery Rs 3,00,000 Stock in trade Rs 2,50,000 Furniture and fixture Rs 3,00,000 |
The company also issued 10,000 shares for cash at 5% discount
Required: (1) Entry for purchase of assets and liabilities
(2) Opening balance sheet for the company after issue of above shares
[Answer: Capital reserve = Rs 300,000; Balance sheet = Rs 26,50,000;
*Purchase consideration = 10,000 x 110 = Rs 11,00,000
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු =
PROBLEM: 42
ABC Furnishing Limited shows balance sheet on 31st March 2020 as under:
Liabilities |
Amount |
Assets |
Amount |
Authorized capital: 10,000 equity shares of Rs 100 each Issued and paid up capital: 4,000 shares of Rs 100 each Profit and loss Current liabilities (creditors) |
10,00,000 − 4,00,000 1,50,000 1,50,000 |
Fixed assets (machine) Current assets (stock)
|
3,00,000 4,00,000
|
7,00,000 |
7,00,000 |
The Company issued 3,000 shares of $/₹/Rs 100 each at Rs 110 per share to purchase the business of a vendor company consisting of following assets and liabilities:
Stock in trade Rs 60,000 Sundry debtors Rs 1,40,000 Plant and machinery Rs 60,000 Land and building Rs 1,20,000 Sundry creditors Rs 40,000 |
Besides, the company also issued 1,000 shares at Rs 115 as fully paid
Required: Journal entry and balance sheet of the company after issuing of above shares
[Answer: Capital reserve = Rs 10,000; Balance sheet = Rs 11,95,000]
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