Question 1: Discuss different ratios that are used to assess the financial soundness and efficiency of any company.
Question 2: Sanjay Ltd. invited applications from the public for the issue of 10,000 equity shares of Rs. 10 each at a premium of 20%, payable Rs. 3 on application; Rs. 5 on allotment comprising premium and the balance in two calls of an equal amount. Applications for 15,000 equity shares were received. The directors allotted 10,000 shares to all the applicants on pro-rata basis adjusting the excess application money towards allotment. All money due on allotment and calls were received.
Give journal entries to record the above transactions in the books of the company. As well show the balance sheet.
Question 3:
a) What do you mean by the term dissolution of partnership? Describe the different modes of dissolution.
b) What do you mean by the term share capital? Discuss the different types of share capital.
Question 4: Differentiate between the given terms:
a) Branch accounts and Departmental accounts.
b) Hire purchase system and Installment payment system.
c) Reserve capital and Capital reserve.
d) Average profits method and Super profits method.
Question 5: Write short notes on the given terms:
a) Inter-branch transactions.
b) Partnership deed.
c) Issue of shares at premium.
d) Profits prior to incorporation.