Tag Archives | Problems

Issue of Shares: Problems and Solutions | India | Accounting

Here is a compilation of top six accounting problems on issue of shares with its relevant solutions.  Problem 1 (Issue of Shares at Par—Journal, Cash Book and Balance Sheet): A Limited Company issued 25,000 Ordinary Shares of Rs. 25 each payable Rs. 5 on application, Rs. 10 on allotment and Rs. 5 each on subsequent […]

Redemption of Preference Shares | India | Accounting

Here is a compilation of top four accounting problems on redemption of preference shares with its relevant solutions. Problem 1 (Redemption out of profit at premium): The following are the balance appearing in the books of Puri Cycles Ltd. as on 31st Dec. Share Capital Equity share capital 18, 00,000 Preference shares (fully paid) 9, […]

Debentures: Problems and Solutions | Capital | Accounting

Here is a compilation of top six accounting problems on debentures with its relevant solutions. Illustration 1:  AB Ltd. purchased assets worth Rs. 6, 80,000 and took over liabilities of Rs. 80,000. It was agreed to pay the purchase price of Rs. 6,40,000 by issuing debentures valued Rs. 4,40,000 of Rs. 100 each at a […]

Company Final Accounts: Problems and Solutions | Accounting

Here is a compilation of top seven accounting problems on company final accounts with its relevant solutions. Problem 1: The Alfa manufacturing Company Limited was registered with a nominal capital of Rs 6, 00,000 in Equity Shares of Rs 10 each. The following is the list of balances extracted from its books on 31st December, […]

Amalgamation, Absorption and Reconstruction | Accounting

Here is a compilation of top five accounting problems on amalgamation, absorption and reconstruction with its relevant solutions. Illustration 1:   The Balance Sheet of Z Ltd. and A ltd. as on September 30, 2006 are given below: A Ltd. propose to take over Z Ltd. on the following terms: (1) A Ltd. will issue […]

Valuation of Goodwill and Shares | Accounting

Here is a compilation of top eleven accounting problems on valuation of goodwill and shares with its relevant solutions. Problem 1:  From the following information find out Goodwill (a) as per annuity method, (b) as per 4 years’ purchase of super profit, and (c) as per capitalisation of super profit method. Net profits for four […]

Alteration of Share Capital and Internal Reconstruction | Accounting

Here is a compilation of top four accounting problems on alteration of share capital and internal reconstruction with its relevant solutions. Illustration 1:   The summarised Balance Sheet of Sunrise Ltd. as on 31st December, 2006 was as under: On 31.12.2006 the following scheme of capital reduction was taken: (a) The equity shares were reduced […]

Liquidation of Companies: Problems and Solutions | Accounting

Here is a compilation of top three problems on liquidation of companies with its relevant solutions. Problem 1:   The Ultra Optimist Ltd. went into liquidation. Its assets realised Rs 3, 50,000 excluding amount realised by sale of securities held by the secured creditors. The following was the position: Share Capital: 1,000 shares of Rs […]

Price Level Accounting: Problems and Solutions | Accounting

Here is a compilation of top three accounting problems on price level accounting with its relevant solutions. Problem 1:   Mr. X purchased a machine in 2001 for Rs. 1, 00,000 when the general price index was 180. He sold the machine in 2003 for Rs. 1, 65,000 when the general index was 270. Calculate […]

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