Presentation/ ppt on issue of shares, Advance accounting, meaning of Company, Leena Gauraha
Presentation/ ppt on issue of shares, Advance accounting, meaning of Company, Types of Companies, Types of Shares, Terms of Issue of shares, Issue of Share, Receipt of share money in one installment, Issue of share money in two installments, Calls on shares, Full, Under and Over subscription of shares.
SmartPrep's teaching methodology ensures better learning through unique interactive teaching-learning sessions, conducted by our certified & highly qualified faculty members at our state-of-the -art centres spread across Delhi-NCR and other cities of India. SmartPrep has programs in Maths, Science, English, Accountancy and Economics for Classes VII to XII.
Presentation on Accounting Treatment of Share Capital (Subscription of capital)Komal Mahajan
This Presentation highlights the accounting treatment for the calls in arrears and calls in advance and subscription of shares in the case of a company.
Interest of capital of partners appropriation of profit and lossTutors On Net
Interest on Capital is entitled to partners only when it is specified
in the Partnership Deed. The proposal for offering the interest on capital
is to recompense the opportunity cost underwent by the partners by not
endowing the money elsewhere in securities with modest or no hazard.
the ppt is about the Journal entries made to record issue of debenture under companies act 1956. It covers issue of debenture as per different situations. Hope you people find it helpful. you are welcome for any query.
Presentation/ ppt on issue of shares, Advance accounting, meaning of Company, Leena Gauraha
Presentation/ ppt on issue of shares, Advance accounting, meaning of Company, Types of Companies, Types of Shares, Terms of Issue of shares, Issue of Share, Receipt of share money in one installment, Issue of share money in two installments, Calls on shares, Full, Under and Over subscription of shares.
SmartPrep's teaching methodology ensures better learning through unique interactive teaching-learning sessions, conducted by our certified & highly qualified faculty members at our state-of-the -art centres spread across Delhi-NCR and other cities of India. SmartPrep has programs in Maths, Science, English, Accountancy and Economics for Classes VII to XII.
Presentation on Accounting Treatment of Share Capital (Subscription of capital)Komal Mahajan
This Presentation highlights the accounting treatment for the calls in arrears and calls in advance and subscription of shares in the case of a company.
Interest of capital of partners appropriation of profit and lossTutors On Net
Interest on Capital is entitled to partners only when it is specified
in the Partnership Deed. The proposal for offering the interest on capital
is to recompense the opportunity cost underwent by the partners by not
endowing the money elsewhere in securities with modest or no hazard.
the ppt is about the Journal entries made to record issue of debenture under companies act 1956. It covers issue of debenture as per different situations. Hope you people find it helpful. you are welcome for any query.
Top of Form 1.If the Hunter Corp. has an ROE of 13 and.docxamit657720
Top of Form
1.
If the Hunter Corp. has an ROE of 13 and a payout ratio of 15 percent, what is its sustainable growth rate?
(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
2.
The most recent financial statements for Williamson, Inc., are shown here (assuming no income taxes):
Income Statement
Balance Sheet
Sales
$
8,300
Assets
$
23,200
Debt
$
9,000
Costs
5,490
Equity
14,200
Net income
$
2,810
Total
$
23,200
Total
$
23,200
Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year’s sales are projected to be $9,545.
What is the external financing needed?
(Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
External financing needed
$
[removed]
3.
*
The external funds needed (EFN) equation projects the addition to retained earnings as:
PM
× ? Sales.
PM
×? Sales
×
(1 -
d
).
PM
× Projected sales × (1 -
d
).
Projected sales × (1 -
d
).
PM
×Projected sales.
4.
The maximum rate at which a firm can grow while maintaining a constant debt-equity ratio is best defined by its:
rate of return on assets.
internal rate of growth.
average historical rate of growth.
rate of return on equity.
sustainable rate of growth.
5.
The extended version of the percentage of sales method:
assumes that all net income will be paid out in dividends to stockholders.
assumes that all net income will be retained by the firm and offset by a reduction in debt.
is based on a capital intensity ratio of 1.0.
requires that all financial statement accounts change at the same rate.
separates accounts that vary with sales from those that do not vary with sales.
6.
Which one of the following depicts a correct relationship?
Dividend payout ratio = 1 – Retention ratio
Total asset turnover = 1 + Capital intensity ratio
ROA = ROE × (1 + Debt-equity ratio)
ROE = 1 – ROA
Equity multiplier = 1 – Debt-equity ratio
7.
The sustainable growth rate will be equivalent to the internal growth rate when, and only when,:
a firm has no debt.
the growth rate is positive.
the plowback ratio is positive but less than 1.
a firm has a debt-equity ratio equal to 1.
the retention ratio is equal to 1.
8.
Financial planning, when properly executed:
ignores the normal restraints encountered by a firm.
is based on the internal rate of growth.
reduces the necessity of daily management oversight of the business operations.
ensures internal consistency among the firm?s various goals.
eliminates the need to plan more than one year in advance.
9.
Marcie's Mercantile wants to maintain its current dividend policy, which is a payout ratio of 35 percent. The firm does not want to increase its equity financing but is willing to maintain its current debt-equity ratio. Given these requirements, the maximum rate at which Marcie's can grow is equal to:
35 percent ...
ACC 291 GENIUS NEW Introduction Education--acc291genius.comclaric275
FOR MORE CLASSES VISIT
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1. The term “receivables” refers to cash to be paid to debtors. merchandise to be collected from individuals or companies. cash to be paid to creditors. amounts due from individuals or companies. 2. Three accounting issues associated with accounts receivable are depreciating, valuing, and collecting. depreciating, returns, and valuing. accrual, bad debts, and accelerating collections. recognizing, valuing, and accelerating collections. 3. When the allowance method is used to account for uncollectible accounts Bad Debts Expense is debited when: management estimates the amount
ACC 291 GENIUS NEW Education Begins--acc291genius.comkopiko191
FOR MORE CLASSES VISIT
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1. The term “receivables” refers to cash to be paid to debtors. merchandise to be collected from individuals or companies. cash to be paid to creditors. amounts due from
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
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Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
How to Create Map Views in the Odoo 17 ERPCeline George
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Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
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1. COMPANY ACCOUNTS -
ISSUE OF DEBENTURES
BCM2B02 FINANCIAL ACCOUNTING
MODULE 3.2
UNIVERSITY OF CALICUT
2. Calculation of Goodwill or Capital Reserve
Sometimes, the purchase consideration paid to the vendor may be more than the value of net assets (i.e. Asset
purchased — Liabilities assumed) acquired or may be less than the value of net assets acquired.
The difference will be either goodwill or capital reserve, which may be calculated as follows:
Goodwill = Purchase consideration—Asset acquired — Liabilities taken over
Capital Reserve = Assets acquired—Liabilities taken over — Purchase Consideration
Accounting Treatment:
When Purchases consideration more than net value of assets
(i) To record goodwill:
S. Assets A/c Dr.
Goodwill A/c Dr. (Balancing figure)
To Vendor A/c
To Liabilities A/c
When Purchase consideration is less than net value of asset
(ii) To record capital reserve:
S. Assets A/c Dr.
To Vendor A/c
To Liabilities A/c
To Capital Reserve (Balancing figure)
3. Problem : 11
• Star Automobiles Ltd. took over assets of Rs. 2,35,000 and liabilities of Rs.
40,000 of Ashoka Automobiles Ltd. for the purchase consideration of Rs.
2,20,000. Purchase consideration was payable by issuing debentures of Rs.
100 at 10% premium. Give journal entries in the books of Star Automobiles
Ltd.
The purchase consideration is Rs. 2,20,000 against net assets being value (2,35,000 – 40,000) Rs.
1,95,000. The difference of Rs. 25,000 is goodwill.
4. Problem : 12
A Company issued debentures of Rs.100 each at par for the purchases of
the following assets and liabilities from Gupta Bros. at purchase
consideration of Rs. 15,00,000
Plant– Rs. 3,50,000
Stock Rs. 4,50,000
Land and Building Rs. 6,00,000
Sundry Creditors Rs. 1,00,000
Pass necessary Journal entries.
When Purchases consideration is more than net value of assets
5.
6. Problem 13
Zee Ltd. Took over the following assets and liabilities of business
of Usha Ltd.
Assets : Machinery-Rs.1,00,000, Furniture Rs. 1,80,000 Stock Rs.
20,000 Liabilities-Creditors Rs. 80,000
The purchases price was agreed at Rs. 1,08,000.
This is to settle by issue of 12% Debentures at premium of 20%
pass necessary Journal entries.
When Purchases consideration is less than net value of assets
7. Net assets = Total assets-liabilities = Rs. 3,00,000 – Rs. 80,000 = Rs. 2,20,000
Capital reserve = Net assets – Purchases consideration = Rs. 2,20,000 – Rs. 1,08,000 = Rs.
1,12,000
8. ISSUE OF DEBENTURES AS
COLLATERAL SECURITY
• Security provided to lender in addition to the principal security. It is a
subsidiary or secondary security.
• In addition to the principal security.
• The lender will have a right over such debentures only when
company fails to pay the loan amount and the principal security is
exhausted. In case the need to exercise the right does not arise
debentures will be returned back to the company.
• No interest is paid on the debentures issued as collateral security
because company pays interest on loan
• TWO methods
9.
10. (i) First method : No Journal entry to be made in the books of accounts
of the company for debentures issued as collateral security.
(ii)Second method : Entry to be made in the books of accounts of the
company. A journal entry is made on the issue of debentures as a
collateral security, Debentures Suspense Account is debited because
no cash is received for such issue.
11. Problem 14
X Ltd. Had L12,00,000, 11% Debentures outstanding on 1st April, 2012. During the
year, it took a loan of Rs. 4 Lakh from Canara Bank for which company deposited
debentures of Rs. 5 Lakh as collateral security. Pass journal entries and show how
these transactions will appear in Balance Sheet of the company.
13. REDEMPTION OF DEBENTURE
Meaning : Redemption of debentures means repayment of the due amount of
debentures to the debenture holders. It may be at par or at premium.
Time of Redemption:
(a) At maturity : When repayment is made at the date of maturity of debentures which
is determined at the time of issue of debentures.
(b) Before maturity : If articles of association and terms of issue mentioned in
prospectus allows, then a company can redeem its debentures before maturity date.
Redemption Methods :
(1) Redemption in Lump-sum : When redemption is made at the expiry of a specific
period, as per the terms of issue.
(2) Redemption by draw of lots : In this method a certain proportion of debentures are
redeem each, year, the debenture for which repayment is to be made is selected by
draw of lots.
(3) Redemption by purchases in open market : If articles of association of a company
authorize, it may purchases its own debentures from open market i.e. stock
exchange
14. Advantages:
(1) When market price of own debentures is low than the redeemable
value is less then the amount payable on maturity.
(2)Decrease the amount of interest payable to outsiders.
(3) If term of issue is provided that debentures are to be redeemed at
premium then such premium can be reduced.
Reasons:
1. To maintain the solvency ratio.
2. To utilize the surplus money or funds which are lying idle with the
company.
3. When rate of interest on debentures is more than the current
market rate of interest on debentures in the industry.
17. Problem 15
Give Journal entries for the following:
1.Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at par and redeemable at
par.
2.Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at premium of 5% but
redeemable at par.
3.Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at discount of 5%
repayable at par.
4.Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at par but repayable at a
premium of 5%.
5.Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at discount of 5% but
redeemable at premium of 5%.
6.Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at premium of 5% and
redeemable at premium of 5%.
18. JOURNAL
DATE PARTICULARS LF
AMT.
(DR.)
AMT. (CR.)
CASE 1 Bank A/c Dr. 1,00,000
To. 9% Debentures A/c 1,00,000
(Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at par
and redeemable at par.)
CASE 2 Bank A/c Dr. 1,05,000
To. 9% Debentures A/c 1,00,000
To. Securities Premium A/c 5,000
(Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at
premium of 5% but redeemable at par.)
CASE 3 Bank A/c Dr. 95,000
Discount on Issue of Debentures A/c Dr. 5,000
To. 9% Debentures A/c 1,00,000
(Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at
discount of 5% repayable at par.)
19. CASE 4 Bank A/c Dr. 1,00,000
Loss on Issue of Debentures A/c Dr. 5,000
To. 9% Debentures A/c 1,00,000
To. Premium on Redemption of Debentures A/c 5,000
(Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at par
but repayable at a premium of 5%)
CASE 5 Bank A/c Dr. 95,000
Loss on Issue of Debentures A/c Dr. 10,000
To. 9% Debentures A/c 1,00,000
To. Premium on Redemption of Debentures A/c 5,000
(Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at
discount of 5% but redeemable at premium of 5%.)
CASE 6 Bank A/c Dr. 1,05,000
Loss on Issue of Debentures A/c Dr. 5,000
To. 9% Debentures A/c 1,00,000
To. Premium on Redemption of Debentures A/c 5,000
To. Securities Premium A/c 5,000
(Issue of Rs. 1,00,000, 9% debentures of Rs. 100 each at
premium of 5% and redeemable at premium of 5%)
20. • When interest is due and tax is deducted at source:
Interest on Debentures A/c Dr.
To Debenture holders’ A/c Cr.
To Income Tax(TDS) Payable A/c Cr.
(Amount of interest due on debenture and tax deducted at source)
• For payment of interest to debenture holders :
Debenture holders A/c Dr.
To Bank A/c Cr.
(Amount of interest paid to debenture holders)
• On transfer debenture Interest Account to statement of Profit and Loss :
Statement of Profit and Loss Dr.
To Interest on Debentures A/c Cr.
(Debenture interest transferred to profit and loss A/c)
• On payment of tax deducted at source to the Government :
Income Tax(TDS) Payable A/c Dr.
To Bank A/c Cr.
(Payment of tax deducted at source on interest on debentures)
Interest
of
Debentures
21. Problem 16
On 1st April 2017, T.T. Ltd. issued 500, 9% Debentures of ₹ 500 each at
a discount of 4% redeemable at a premium of 5% after three years.
Pass necessary Journal entries for the issue of debentures and
debenture interest for the year ended 31st March 2018 assuming that
interest is payable on 30th September and 31st March and the rate of
T.D.S. is 10%. On 31st March every year, the company closes its books.
Problem 17
A company issues 11 % debentures of 11 lakhs, redeemable at par after
6 years from the issue date. The company pays the Interest on
debentures annually. The TDS rate is 20%. Pass the journal entries for
year 1.
https://efinancemanagement.com/sources-of-finance/interest-on-debentures
22. Date Particulars Amount (Dr) Amount (Cr)
2017
April 1 Bank A/c (500 x ₹ 480) Dr. 2,40,000
To Debentures Application and Allotment A/c Cr. 2,40,000
(Being the receipt of application money for 500
debentures @ ₹ 480 each)
Debentures Application and Allotment A/c Dr. 2,40,000
Loss on Issue of Debentures A/c Dr. 22,500
To 9% Debentures A/c Cr. 2,50,000
To Premium on Redemption of Debentures A/c Cr. 12,500
(Being the issue of 500, 9% Debentures of ₹ 500 each
at 4% discount and redeemable at 5% premium)
Sept 30 Interest on Debentures A/c Dr. 11,250
To Debentureholders’ A/c Cr. 10,125
To TDS Payable A/c Cr. 1,125
(Being the interest payable on 9% Debentures for 6
months and TDS @ 10%)
Problem
16
23. 2018
March 31 Interest on Debentures A/c Dr. 11,250
To Debentureholders’ A/c Cr. 10,125
To TDS Payable A/c Cr. 1,125
(Being interest payable on 9% Debentures for 6 months
and tax deducted at source @ 10%)
March 31 Debentureholders’ A/c Dr. 10,125
TDS Payable A/c Dr. 1,125
To Bank A/c Cr. 11,250
(Being payment of interest to debenture holders and
deposit of tax deducted at source in the bank)
March 31 Statement of Profit and Loss Dr. 22,500
To Interest on Debentures A/c Cr. 22,500
(Being transfer of the interest in debentures to
Statement of Profit and Loss)
Problem
16
24. Treatment of Fraction Debentures
Must be settled in cash
X Ltd., purchased an established business for Rs. 11,00,000, payable
Rs. 1,02,000 in cash and balance by issue of 8% Debentures of Rs.100
each at discount of 10% in full satisfaction. Give journal entries.
