List of top Accountancy Questions on Company Accounts asked in UP Board XII

Rohit Company Limited was registered with the capital of Rs. 5,00,000, which was divisible @ Rs. 10 in 50,000 shares. The company issued 40,000 shares out of them, on which Rs. 2 per share on application, Rs. 2 per share on allotment, Rs. 4 per share on 1st call and Rs. 2 per share on final call were payable. The public purchased all shares and the amounts were received. However, one shareholder who held 500 shares did not pay the amount of final calls. The directors forfeited these shares and reissued them @ Rs. 6 per share.
Pass necessary journal entries in the books of the company.
Explain the differences between equity and preference shares and explain different types of preference shares.
The following balances were received from the Books of Prayag Electronics on 31st March, 2021:
Stock Rs. 60,000, Sales Rs. 4,25,000, Wages Rs. 50,000, Purchases Rs. 2,10,000, Salaries Rs. 25,000, Sundry Creditors Rs. 35,000, Bad Debts Rs. 3,000, Cash Rs. 2,000, Insurance and General Expenses Rs. 7,500, Profit and Loss Account (Credit) Rs. 13,500, Debtors Rs. 50,000, Share Capital Rs. 1,00,000, Machine and Plant Rs. 1,00,000, Reserve Rs. 30,000, Building Rs. 50,000, Rent Rs. 6,000, Investment Rs. 30,000, Interim dividend Rs. 10,000.
Adjustments:
1. Prepare provisions for Bad Debts on debtors @ 5%.
2. Charge depreciation on machinery @ 10%.
3. The value of stock on 31st March, 2021 was Rs. 75,000.
4. Make provision of Rs. 10,000 for reserve and Rs. 15,000 for dividend.
On the basis of the above particulars and adjustments, prepare the Profit and Loss Account and the Profit and Loss Appropriation Account.
State differences between divisible profit and dividend.
Describe the items shown in Profit and Loss Appropriation Account.
Discuss the types of preference shares.
Distinguish between P & L Account and P & L Appropriation Account.
Shareholders of a company are
Features of a company are