CA Foundation - Accounting & Financial Reporting

Financial Statements, Depreciation, Inventories & Partnership question bank (Principles and Practice of Accounting)

Practice 72 free CA Foundation - Accounting & Financial Reporting Principles and Practice of Accounting - Financial Statements, Depreciation, Inventories & Partnership questions with answers and step-by-step solutions.

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Q1.

Company Accounts (Forfeiture of Shares): A company forfeits 500 equity shares of Rs. 10 each (called up Rs. 8) on which application and allotment money of Rs. 5 per share has been received in 'Theoretical Framework: GAAP, Accounting Concepts, Principles and Conventions'. At what amount is 'Share Forfeiture Account' credited?

(A)

Rs. 2,500 ($500 \times 5 = 2,500$, representing actual amount paid up) (Theoretical Framework: GAAP, Accounting Concepts, Principles and Conventions)

(B)

Rs. 4,000 (Called up amount)

(C)

Rs. 5,000 (Nominal face value)

(D)

Rs. 1,500

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Q2.

Partnership Accounts (Goodwill & Ratios): A and B are partners sharing profits in the ratio $3:2$ in 'Theoretical Framework: GAAP, Accounting Concepts, Principles and Conventions'. They admit C for $1/5\text{th}$ share which he acquires equally from A and B. What is the new profit sharing ratio?

(A)

$5 : 3 : 2$ ($A = 3/5 - 1/10 = 5/10; B = 2/5 - 1/10 = 3/10; C = 2/10$) (Theoretical Framework: GAAP, Accounting Concepts, Principles and Conventions)

(B)

$3 : 2 : 1$

(C)

$4 : 3 : 2$

(D)

$12 : 8 : 5$

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