What is meant by ‘Profitability of Business’? Post category:Accountancy Reading time:1 mins read SOLUTION ‘Profitability of Business’ refers to the earning capacity of the business. 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 PostWhat is Working Capital? Next PostWhat is meant by Profitability Ratios? You Might Also Like Slow & Steady Ltd. invited applications for 10,000 Equity Shares of Rs. 10 each for public subscription. The amount of these shares was payable as: On application Rs. 1 per share, on allotment Rs. 2 per share, on first call Rs. 3 per share and on second and final call Rs. 4 per share. All sums payable on application, allotment and calls were duly received with the following exceptions: (i) A, who held 200 shares, failed to pay the money on allotments and calls.(ii) B, to whom 150 shares were allotted, failed to pay the money on first call and final call.(iii) C, who held 50 shares, did not pay the amount of second and final call.The shares of A, B and C were forfeited and were subsequently reissued for cash as fully paid-up at a discount of 5%.Pass necessary Journal entries to record these transactions in the books of X Ltd. July 14, 2022 Pass journal entries in the following cases:M Ltd forfeited 200 Equity Shares of Rs.10 each, issued at a premium of Rs. 5 per share, held by Ram for non-payment of the final call of Rs. 3 per share. Of these, 100 shares were reissued to Vishu at a discount of Rs. 4 per share. July 14, 2022 A, B and C are partners in a firm sharing profits in the ratio of 3 : 2 : 1. They earned a profit of Rs. 30,000 during the year ended 31st March, 2019. Distribute profit among A, B and C if: (a) C’s share of profit is guaranteed to be Rs. 6,000 Minimum. (b) Minimum profit payable to C amounting to Rs. 6,000 is guaranteed by A. (c) Guaranteed minimum profit of Rs. 6,000 payables to C is guaranteed by B. (d) Any deficiency after making payment of guaranteed Rs. 6,000 will be borne by A and B in the ratio of 3 : 1. July 22, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Slow & Steady Ltd. invited applications for 10,000 Equity Shares of Rs. 10 each for public subscription. The amount of these shares was payable as: On application Rs. 1 per share, on allotment Rs. 2 per share, on first call Rs. 3 per share and on second and final call Rs. 4 per share. All sums payable on application, allotment and calls were duly received with the following exceptions: (i) A, who held 200 shares, failed to pay the money on allotments and calls.(ii) B, to whom 150 shares were allotted, failed to pay the money on first call and final call.(iii) C, who held 50 shares, did not pay the amount of second and final call.The shares of A, B and C were forfeited and were subsequently reissued for cash as fully paid-up at a discount of 5%.Pass necessary Journal entries to record these transactions in the books of X Ltd. July 14, 2022
Pass journal entries in the following cases:M Ltd forfeited 200 Equity Shares of Rs.10 each, issued at a premium of Rs. 5 per share, held by Ram for non-payment of the final call of Rs. 3 per share. Of these, 100 shares were reissued to Vishu at a discount of Rs. 4 per share. July 14, 2022
A, B and C are partners in a firm sharing profits in the ratio of 3 : 2 : 1. They earned a profit of Rs. 30,000 during the year ended 31st March, 2019. Distribute profit among A, B and C if: (a) C’s share of profit is guaranteed to be Rs. 6,000 Minimum. (b) Minimum profit payable to C amounting to Rs. 6,000 is guaranteed by A. (c) Guaranteed minimum profit of Rs. 6,000 payables to C is guaranteed by B. (d) Any deficiency after making payment of guaranteed Rs. 6,000 will be borne by A and B in the ratio of 3 : 1. July 22, 2022