Accounting Ratios — Accountancy STD 12 Commerce — Question

What is 'Window Dressing'? Explain with the help of an example.

Ashish Ltd. invited applications for issuing 75,000 Equity Shares of ₹ 10 each at a discount of 10%. The amount was payable as follows: Applications for 1,50,000 shares were received. Applications for 25,000 shares were rejected and application money of these applicants was refunded. Share swere allotted on pro-rata basis to the remaining applicants. Excessmoney received with these applications was adjusted to ward sums due on allotment. Suman, who had applied for 1250 shares, failed to pay allotment and first and final call money. Dev did not pay the first and final call on his 1000 shares. All these shares were forfeited and later on 1000 of these shares were re-issued at ₹ 17 per share fully paid up. The re-issued shares included all the shares of Suman.
Pass the necessary Journal entries in the books of Ashish Ltd. for the above transactions.

On 1-4-2013 Kaka Ltd. had ₹ 50,00,000, 9% debentures of ₹ 100 each outstanding.

1. On 1-4-2014 the company purchased in the open market 25,000 of its own debentures for ₹ 99 each and cancelled the same immediately.
2. On 1-4-2015 the company redeemed at par debentures of ₹ 10,00,000 by draw of lot.
3. On 1-1-2016 the remaining debentures were purchased for ₹ 14,99,000 and were cancelled immediately.

Ignoring debenture redemption reserve and interest on debentures pass necessary journal entries for the above transactions in the books of the company.

Calculate Trade Payables Turnover Ratio and Average Debt Payment Period from the following information:

	1st April, 2017 ₹	31st March, 2018 ₹
Sundry Creditors	1,50,000	4,50,000
Bills Payable	50,000	1,50,000

Total Purchases ₹ 21,00,000 Purchases Return ₹ 1,00,000; Cash Purchases ₹ 4,00,000.

Following was the Balance Sheet of M.M. Ltd. as at 31st March, 2015:
Notes to Accounts:

Additional Information:

1. 12% Debentures were redeemed on 31st March, 2015.
2. Tax ₹ 70,000 was paid during the year.

Prepare Cash Flow Statement.

A company has an opening credit balance in Surplus, i.e., Balance in Statement of profit and loss of ₹ 1,00,000. During the year, it earned a profit of ₹ 75,000. It decided to transfer ₹ 15,000 to Debentures Redemption Reserve (DRR) and also proposed to pay dividend of ₹ 25,000. How will be the appropriations shown in the financial statemenrs?Hint:
Note: Proposed Dividend ₹ 25,000 is shown as contigent liability in Notes to Accounts.

Following was the Balance Sheet of M.M. Ltd. as at 31st March, 2015:
Notes to Accounts:

Additional Information:

1. 12% Debentures were redeemed on 31st March, 2015.
2. Tax ₹ 70,000 was paid during the year.

Prepare Cash Flow Statement.

You are given the following information:

From the following information extracted from the books of Z Ltd., prepare Balance Sheet of the company as at 31st March, 2018 as per Schedule III of the Companies Act, 2013:

Jeevan Dhara Ltd. invited applications for issuing 1,20,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:

On Application	₹ 2 per share
On Allotment	₹ 5 per share (including premium)
On first and final call	balance

Applications for 1,50,000 shares were received, Shares were allotted to. all the applicants on pro-rata basis. Excess money received on applications was adjusted towards sums due on allotment. All calls were made. Manu who had applied for 3,000 shares failed to pay the amount due on allotment and first and final call. Madhur who was allotted 2,400 shares failed to pay the first and final call. Shares of both Manu and Madhur were forfeited The forfeited shares were reissued at ₹ 9 per share as fully paid up.
Pass necessary journal entries for the above transactions in the books of Jeevan Dhara Ltd.