CH.

STUDY CONCEPTUALLY
Rs. FROM ANSHUL SIR ON UNACADEMY
2

3. PRACTICAL PROBLEMS

IN-CLASSROOM PROBLEMS PRACTISE PROBLEMS SELF-ASSESSMENT PROBLEMS

Essentials Growth Maturity

Q1. Bonus Issue Basic Question REG. PAGE NO.

Following items appear in the trial balance of Bharat Ltd. as on 31st March, 2020:
Rs.
40,000 Equity shares of Rs. 10 each 4,00,000
Capital Redemption Reserve 55,000
Securities Premium (Collected in Cash) 30,000
General Reserve 1,05,000
Surplus i.e. credit balance of Profit and Loss Account 50,000
The company decided to issue to equity shareholders bonus shares at the rate of 1 share for every 4 shares
held and for this purpose, it decided that there should be the minimum reduction in free reserves. Pass
necessary journal entries.

Q2. Bonus Issue Basic Question REG. PAGE NO.

Following items appear in the Trial Balance of Saral Ltd. as on 31st March, 2020:
Particulars Amount (Rs.)
4,500 Equity Shares of Rs.100 each 4,50,000
Capital Reserve (including Rs. 40,000 being profit on sale of Plant) 90,000
Securities Premium 40,000
Capital Redemption Reserve 30,000
General Reserve 1,05,000
Profit and Loss Account (Cr. Balance) 65,000
The company decided to issue to equity shareholders bonus shares at the rate of 1 share for every 3 shares
held. Company decided that there should be the minimum reduction in free reserves. Pass necessary
Journal Entries in the books Saral Ltd.

Q3. Call + Bonus Issue REG. PAGE NO.

Following is the extract of the Balance Sheet of Solid Ltd. as at 31st March, 2020:
AUTHORISED CAPITAL: Rs.
10,000 12% Preference shares of Rs. 10 each 1,00,000
1,00,000 Equity shares of Rs. 10 each 10,00,000
11,00,000
ISSUED AND SUBSCRIBED CAPITAL:
8,000 12% Preference shares of Rs. 10 each fully paid 80,000
90,000 Equity shares of Rs. 10 each, Rs. 8 paid up 7,20,000
RESERVES AND SURPLUS:
General reserve 1,60,000
Revaluation reserve 35,000
Securities premium (Collected in Cash) 20,000
2. 7

Profit and Loss Account 2,05,000

SECURED LOAN:
12% Debentures @ Rs. 100 each 5,00,000

Connect CA. Anshul on CA – INTERMEDIATE: ACCOUNTING BY CA. CS. ANSHUL A. AGRAWAL

 CH.
STUDY CONCEPTUALLY FROM ANSHUL SIR ON UNACADEMY
12
Equity Shares of X Ltd.
15.04.2013 Purchased 5,000 equity shares @ Rs. 200 on cum right basis
Brokerage of 1% was paid in addition (Face Value of shares Rs. 10)
03.06.2013 The company announced a bonus issue of 2 shares for every 5 shares held.
16.08.2013 The company made a rights issue of 1 share for every 7 shares held at Rs. 250 per share.
The entire money was payable by 31.08.2013.
22.8.2013 Rights to the extent of 20% was sold @ Rs. 60. The remaining rights were subscribed.
02.09.2013 Dividend @ 15% for the year ended 31.03.2013 was received on 16.09.2013
15.12.2013 Sold 3,000 shares @ Rs. 300. Brokerage of 1% was incurred extra.
15.01.2014 Received interim dividend @ 10% for the year 2013-14
31.03.2014 The shares were quoted in the stock exchange @ Rs. 220
Prepare Investment Accounts in the books of Smart Investments. Assume that the average cost method is
followed.

Q20. Multiple Investments REG. PAGE NO.

Mr. Brown has made following transactions during the financial year 2019-20:
Date Particulars
01.05.2019 Purchased 24,000 12% Bonds of Rs. 100 each at Rs. 84 cum-interest. Interest is payable on
30th September and 31st March every year.
15.06.2019 Purchased 1,50,000 equity shares of Rs. 10 each in Alpha Limited for Rs. 25 each through a
broker, who charged brokerage @ 2%.
10.07.2019 Purchased 60,000 equity shares of Rs. 10 each in Beeta Limited for Rs. 44 each through a
broker, who charged brokerage @2%.
14.10.2019 Alpha Limited made a bonus issue of two shares for every three shares held.
31.10.2019 Sold 80,000 shares in Alpha Limited for Rs. 22 each.
01.01.2020 Received 15% interim dividend on equity shares of Alpha Limited.
15. 01.2020 Beeta Limited made a right issue of one equity share for every four shares held at Rs. 5 per
share. Mr. Brown exercised his option for 40% of his entitlements and sold the balance
rights in the market at Rs. 2.25 per share.
01.03.2020 Sold 15,000 12% Bonds at Rs. 90 ex-interest.
15.03.2020 Received 18% interim dividend on equity shares of Beeta Limited. Interest on 12% Bonds
was duly received on due dates.
Prepare separate investment account for 12% Bonds, Equity Shares of Alpha Limited and Equity Shares of
Beeta Limited in the books of Mr. Brown for the year ended on 31st March, 2020.

Q21. Multiple Investments (CA-Inter New N18) REG. PAGE NO.

Following transactions of Nisha took place during the financial year 2017-18:
1st April, 2017 Purchased Rs. 9,000 8% bonds of Rs. 100 each at Rs. 80.50 cum-interest.
Interest is payable on 1st November and 1st May.
1st May, 2017 Received half year’s interest on 8% bonds.
10 July, 2017
th Purchased 12,000 equity shares of Rs. 10 each in Moon Limited for Rs. 44 each
12. 12

through a broker, who charged brokerage @ 2%.

1 October2017
st Sold 2,250 8% bonds at Rs. 81 Ex-interest.
1 November, 2017
st Received half year’s interest on 8% bonds.
15 January, 2018
th Moon Limited made a rights issue of one equity share for every four Equity

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