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 calls, 20,000 shares were fully- [...]
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, 00,000 Security premium 1, 00,000 [...]
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 premium of 10% and balance [...]