Accountancy 2019 Delhi Set-1

General Instructions:

1. This question paper contains two parts A and B.
2. Part A is compulsory for all.
3. Part B has two options: Analysis of Financial Statements and Computerized Accounting.
4. Attempt only one option of Part B.
5. All parts of a question should be attempted at one place.

PART A

Question 1

ACCOUNTANCY

Atul and Neera were partners in a firm sharing profits in the ratio of 3:2. They admitted Mitali as a new partner. Goodwill of the firm was valued at ₹ 2,00,000. Mitali brings her share of goodwill premium of ₹ 20,000 in cash, which is entirely credited to Atul's Capital Account. Calculate the new profit sharing ratio.

Solution

Revalued Goodwill of the firm on Mitali's admission = ₹ 2,00,000

Premium for Goodwill brought in cash by Mitali = ₹20,000

So, Mitali's share in future profit of the firm = <math>\frac{20,000}{2,00,000} = \frac{1}{10}</math> Atul's Account has only been credited by the premium brought in by Mitali

So, Atul's Sacrificing Share = Profit Share of Mitali <math>= \frac{1}{10}</math>

New Profit Share of Atul = Old Profit Share - Sacrificing Share

New Profit Share of Atul= <math>\frac{3}{5} - \frac{1}{10} = \frac{5}{10}</math>

Hence,

Atul Neera Mitali New Profit Sharing Ratio <math>\frac{5}{10}</math> <math>\frac{2}{5}</math> <math>\frac{1}{10}</math> OR 5<br>10 <math>\frac{4}{10}</math> <math>\frac{1}{10}</math> OR 5 : 4 1

Question 2 What is meant by 'Issued Capital'? OR What is meant by 'Employees Stock Option Plan'?

SOLUTION:

As per Section 2(50) of Companies Act, 2013, "issued capital" means such capital as the company issues from time to time for subscription. It is that part of the Authorised Capital which is offered by a company to the general public for its subscription.

OR

Employee Stock Option is a plan where the company's whole-time directors, officers and employees get an opportunity of purchasing their own company's shares at a predetermined price in future. The price at which these shares are offered is usually lower than the market price.

Question 3

Differentiate between Dissolution of Partnership and Dissolution of a Partnership Firm on the basis of 'Court's Intervention.'