Problem 36:-A and B shares profit and losses in the ratio of 2:1. Their Balance sheet as at 31ª March 2015, was asfollows:BALANCE SHEETas at 31.3.2015LiabilitiesAssets$5,000Sundry CreditorsBills PayableCapitals:10,0005,000CashDebtors12,00010,0005,00020,000Less: Provisions2,000A10,000Stock15.00025,000Land40,00040,000On 1s* April, 2015 C is admitted for 1/4th share in future profits. He is to pay $ 9,000 as goodwill andnecessary capital to give him 1/5th share of the total capital of the new firm.It was agreed that Land was to be revalued at $ 30,000; Stock to be increased by $ 3,000; the Provisionon Debtors to be increased by $ 1,000.Prepare the Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm. Youare required to show your workings clearly.

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Answered: Problem 36:- A and B shares profit and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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rute Account 12.00.900 10.00.000 31.00.000 20.00.000 5.40.000 Accounting for Internal Reconstruction Assignments PRACTICAL ASSIGNMENTS The following is the Balance Sheet of Weak Ltd. as at 31st March, 2022: 1. Particulars 1. EQUITY AND LIABILITIES 1. Shareholders' Fund (a) Share Capital : - 10% Non-cumulative Preference Shares of 100 each fully paid-up - 20,000 Equity Shares of 10 each fully paid-up 50,000 2,00,000 (b) Reserve and Surplus: Surplus A/c (Dr. Balance) (1,85,000) 2. Non-Current Liabilities (a) Long-term Borrowings (8% Debentures) 1,00,000 3. Current Liabilities (a) Trade Payables (Creditors) 3,30,000 (b) Other Current Liabilities (Creditors for Expenses) Total 20,000 5,15,000 II. ASSETS 1. Non-current Assets (a) Property, Plant & Equipment Tangible: Buildings 2,00,000 Machinery 1,30,000 (b) Intangible (Patents) 40,000 2. Current Assets (a) Inventories 80,000 (b) Trade Receivables (Debtors) 55,000 (c) Other Current Assets (Preliminary Expenses) 10,000 Total 5,15,000 With a…
In analyzing two firms in the same industry, we gather the following information: Firm A Net income for the year Common equity, Jan 1 Common equity, Dec 31 $120 $950 $1,050 10% Firm B (A) Firm A's return on equity (ROE) for the year is 11.4%. (B) Firm A's return on equity (ROE) for the year is 12.6%. $130 $2,000 Cost of equity capital Assuming there are no accounting distortions, which of the following statements is correct? $2,000 10% Firm A is a less attractive investment opportunity than Firm B because Firm A has a lower net income. D Firm A is a more attractive investment opportunity than Firm B because Firm A's return is greater than its cost of equity capital. E There is more than one correct statement.
YTD 52-week %CHG HI LO Stock (SYM) DIV -3.9 25.79 14.20 What is the firm's earnings per share (EPS)? O $0.66 O $0.16 $1.51 O $11.59 YLD % AZZ (AZZ) .16 ?? O $1.25 VOL NET P/E 100s CLOSE CHG 13 34 19.60 -1.25
Part B Given below is the statement of financial position of PQR Bhd as at 31 December 2015. Statement of Financial Position of PQR Bhd as at 31 December 2015 RM Non-current assets Current assets (except cash at bank) Cash at bank NIK/GAN BAC1634 page 3 of 6 FINANCIAL ACCOUNTING AND REPORTING I Issued share capital 40,000,000 Ordinary shares of RM1 each Share premium Retained profits Non-current liability 20,000,000 6% redeemable preference shares Current liabilities 70,000,000 15,000,000 50.000.000 135.000.000 Continued... March 2016 40,000,000 4,000,000 50,000,000 24,000,000 17,000,000 135,000,000 PQR redeemed all the preference shares at a premium of 20 percent on 31 December 2015. It issued 10 million ordinary shares at RM3 per share to facilitate the redemption and the balance through profits available for dividends. Required: You are required to prepare the journal entries to record the above transactions.
Assets Liabilities + Equity Balance, Jan. 1, 2015 Balance, Dec. 31, 2015 $50,000 $40,000 40,000 20,000 Required: Using the information above, calculate net income under each of the following assump- tions. a. During 2015, no share capital was issued and no dividends were declared. b. During 2015, no share capital was issued and dividends of $5,000 were declared. c. During 2015, share capital of $12,000 was issued and no dividends were declared.
QS 13-23 (Algo) Basic earnings per share LO A1 Epic Company earned net income of $908,500 this year. There were 450,000 weighted-average common shares outstanding, and preferred shareholders received a $31,000 cash dividend. Compute Epic Company's basic earnings per share. Choose Numerator: Basic Earnings Per Share 1 Saved Choose Denominator: Basic EPS Basic EPS per share
Q-2 From the following information, you are required to compute the basic and adjusted Earnings per share: Net profit for 2015-16 11 lakh Net profit for 2016-17 No. of shares issued before rights issue 15 lakh 5 lakhs Right issue One for every 5 held Right issue price 15 per share Last date of exercising right option Fair value of shares before right issue 1-06-2016 21 per share
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Problem 16-17 (Static) Interpretation of Financial Ratios [LO16-2, LO16-3, LO16-6] Pecunious Products, Incorporated's financial results for the past three years are summarized below: Sales trend Current ratio Acid-test ratio Accounts receivable turnover Inventory turnover Dividend yield Dividend payout ratio Dividends paid per share* Year 3 128.0 2.5 9.4 6.5 7.1% 40% $1.50 Year 2 115.0 2.3 0.9 10.6 7.2 6.5% 50% $ 1.50 Year 1 100.0 2.2 1.1 12.5 8.0 5.8% 60% $ 1.50 *There have been no changes in common stock outstanding over the three-year period. Required: Review the results above and answer the following questions: 1. Is it becoming easier for the company to pay its bills as they come due? 2. Are customers paying their accounts at least as fast now as they were in Year 1? 3. Are the accounts receivable increasing, decreasing, or remaining constant? 4. Is inventory increasing, decreasing, or remaining constant? 5. Is the market price of the company's stock going up or down? 6. Is the…
2. Assume the following data relative to ABC Corporation for 2016 is available: Net Income $1,400,000 Transactions in common shares. Jan 1, 2016 Beginning number: March 1, 2016 Purchased treasury shares June 1,2016 Stock split 2 for 1 Nov 1, 2016 Issuance of new shares 500,000 60,000 4. What is Diluted EPS per share? a 1.43 b. 1.57 c. 1.17 d. 1.24 120,000 8% Cumulative Preferred Stock Sold at par, convertible into 200,000 shares as adjusted for stock split $1,000,000 Stock Options-60,000 options Exercisable at the option price of $25 per share. $30 average market price in 2016, $20 year end marke price (market price and option price adjusted for stock split)
Knowledge Check 01 Total Assets for a company are $700,000: Accounts Payable is $75,000, Bonds Payable is $225,000; Common Stock is $300,000 and Retained Earnings is $100,000. The common-size percent for Accounts Payable is 0933% 0933.3% - 10.7% - 100.7%
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