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Financial Statements of a Company — Accountancy STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceAccountancyFinancial Statements of a Company1 Mark
Question
Assertion :
While preparing Notes to Accounts on Share Capital, Calls-in-Arrears is shown by way of deduction from the Subscribed Capital (Subscribed but not fully paid-up).
Reason (R) :
As per the Companies Act, 2013, Part I of me Schedule III, Calls in Arrears is the other current asset of the company.
Choose the Correct Option from the following:
✓

Answer

Only Assertion is correct.

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Assertion [A] :
Incorporation Expenses Account or Preliminary Expenses Account is to be opened when shares are issued to the promote?
Reason (R) :
A company may issue shares to its promoters for their services rendered to the company.
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Assertion (A):
At the time of admission of a new partner, if any outstanding liability (given in balance sheet) is paid by the firm, it will not be shown in the Revaluation Account.
Reason (R) :
Revaluation Account is prepared to revalue the assets and to reassess the liabilities.
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Assertion (A) :
At the time of admission of a partner. Goodwill appearing in the existing balance sheet, will be Debited to old partners capital/current account in their old profit sharing ratio.
Reason (R):
Premium for goodwill brought by new partner will be credited to only sacrificing partners capital/current account.
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Assertion (A) :
At the time of admission of a new partner, purchase of a new asset will not be recorded in the revaluation account but if asset was written off earlier is brought back into the books, it will be shown in the Credit side of Revaluation Account.
Reason (R) :
Revaluation Account is prepared to Record all types of assets whether assets are old or new, purchased or sold.
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Assertion [A] :
Vertical or static Analysis is made to review and analyse the financial statements of one year only, to compare the performance of other firms of the same type or divisions or departments of one firm.
Reason [R]: 
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Assertion (A):
If a company receives subscription less than 90% of the shares offered for subscription, in such a case, company cannot issue shares and amount received on application will be refunded to the applicants.
Reason (R) :
As per the Companies Act, 2013, to issue shares to the public, a company must receive 90% or above subscription of the shares offered for subscription.
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Assertion (A): Interest on Debentures is payable to Debentureholder by the company whether the company earns profits or incur losses.
Reason (R): Interest on Debentures is an expense.
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Assertion [A] :
If a company has ideal Current Ratio and it further purchased goods on credit, the Current Ratio will decrease.
Reason [R] :
The Ideal Current Ratio of the company is 2:1.
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Assertion:
Liability of a partner for acts of the firm is unlimited
Reasoning:
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Assertion $(A):$ Mohan has shown $₹5,00,000, 10\%$ debentures redeemable on $31^{st} $ October $2023$ under the head 'Current Liabilities as Current Maturities of Long Term debts in Balance sheet as at $31^{st} $ March, $2023.$
Reason $(R):$ Debentures becoming due for redemption within $12$ months from the date of Balance sheet are shown as Current Maturities of Long Term Debts under the main head 'current liabilities'
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