Give one point of distinction between Reserve Capital and Capital Reserve. Post category:Accountancy Reading time:1 mins read SOLUTION Reserve Capital is created out of uncalled capital whereas capital reserve is created out of capital profits. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostDifferentiate between Called-up Share Capital’ and ‘Paid-up Share Capital’. (C.B.S.E.2016 Comptt. Delhi) Next PostCan a Company issue a share having face value of Rs. 10 at Rs. 97 You Might Also Like X and Y are partners. The Partnership Deed provides inter alia: (a) That the Accounts be balanced on 31st March every year. (b) That the profits be divided as: X one-half, Y one-third and carried to a Reserve one-sixth. (c) That in the event of the death of a partner, his Executors be entitled to be paid: (i) The Capital to his credit till the date of death. (ii) His proportion of profits till the date of death based on the average profits of the last three completed years. (iii) By way of Goodwill, his proportion of the total profits for the three preceding years. (d) BALANCE SHEET as at 31st March, 2021 August 5, 2022 Mohan and Sohan were partners in a firm sharing profits and losses in the ratio of 3 : 2. They admitted Ram for 1/4th share on 1st April, 2019. It was agreed that goodwill of the firm will be valued at 3 years’ purchase of the average profit of last 4 years ended 31st March, were Rs. 50,000 for 2015-16, Rs. 60,000 for 2016-17, Rs. 90,000 for 2017-18 and Rs. 70,000 for 2018-19. Ram did not bring his share of goodwill premium in cash. Record the necessary Journal entries in the books of the firm on Ram’s admission when: (a) Goodwill appears in the books at Rs. 2,02,500. (b) Goodwill appears in the books at Rs. 2,500. (c) Goodwill appears in the books at Rs. 2,05,000. August 1, 2022 On 1-10-2018, Micro Ltd. issued 20,000, 8% debentures of Rs. 100 each and paid interest of Rs. 80,000 on these debentures on 31st March, 2019. Calculate the cash flow from financing activities for the period ending 31st March, 2019. (C.B.S.E. 2020, Mumbai, Chennai) October 6, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
X and Y are partners. The Partnership Deed provides inter alia: (a) That the Accounts be balanced on 31st March every year. (b) That the profits be divided as: X one-half, Y one-third and carried to a Reserve one-sixth. (c) That in the event of the death of a partner, his Executors be entitled to be paid: (i) The Capital to his credit till the date of death. (ii) His proportion of profits till the date of death based on the average profits of the last three completed years. (iii) By way of Goodwill, his proportion of the total profits for the three preceding years. (d) BALANCE SHEET as at 31st March, 2021 August 5, 2022
Mohan and Sohan were partners in a firm sharing profits and losses in the ratio of 3 : 2. They admitted Ram for 1/4th share on 1st April, 2019. It was agreed that goodwill of the firm will be valued at 3 years’ purchase of the average profit of last 4 years ended 31st March, were Rs. 50,000 for 2015-16, Rs. 60,000 for 2016-17, Rs. 90,000 for 2017-18 and Rs. 70,000 for 2018-19. Ram did not bring his share of goodwill premium in cash. Record the necessary Journal entries in the books of the firm on Ram’s admission when: (a) Goodwill appears in the books at Rs. 2,02,500. (b) Goodwill appears in the books at Rs. 2,500. (c) Goodwill appears in the books at Rs. 2,05,000. August 1, 2022
On 1-10-2018, Micro Ltd. issued 20,000, 8% debentures of Rs. 100 each and paid interest of Rs. 80,000 on these debentures on 31st March, 2019. Calculate the cash flow from financing activities for the period ending 31st March, 2019. (C.B.S.E. 2020, Mumbai, Chennai) October 6, 2022