Q 2: (A) How the Final Accounts of Company are different from Sole-Proprietorship and Partnership?...
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Q 2: (A) How the Final Accounts of Company are different from Sole-Proprietorship and Partnership? (B) The ABC Ltd. Purchases new Plant for $200,000 for which it pays $25,000 by cheque and for remaining balance, allot Shares of $100 each with 25% Premium. The Company issued 2 Bonus Shares for 5 existing Shares presently held. For the purpose of amount of Bonus, utilize P & L A/c and balance of Reserve Fund. Current Balance Sheet as on 31st December 2019 is given below. Requirement: Pass Journal Entries and redraft Balance Sheet. In 2nd situation, Company issued 2 Bonus Shares for 10 existing Shares. Pass Journal Entries and redraft Balance Sheet. Assets Amount Liabilities Amount Fixed Assets: Authorized Capital $3,000,000 Land & Building $900,000 Plant 800,000 $1,200,000 Furniture 190,000 Issued & Paid-up 12000 shares @ $100/each General Reserves Profit & Loss A/C Current Liabilities 800,000 250,000 Current Assets: Stock 250,000 Debtors 220,000 Sundry Creditors 175,000 Bank 130,000 Provision of Taxes 65,000 $2,490,000 $2,490,000
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