Attempt all the problems

problem1) Discuss various ratios that are used to assess financial soundness and efficiency of any company.

problem2) Sanjay Ltd invited applications from 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 including 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.

Provide journal entries to record above transactions in the books of the company.

Also show the balance sheet.

problem3)

(a) What do you understand by dissolution of partnership? Describe the different modes of dissolution.

(b) What is share capital? describe the different types of share capital

problem4) Differentiate the following:

(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

problem5) prepare brief notes on the following:

(a) Inter-branch transactions

(b) Partnership deed

(c) Issue of shares at premium

(d) Profits prior to “incorporation