Accountancy Marking Scheme 2023

The process of recording the receipt of application money for debentures, the money is credited to the Debenture Application account.

The process of transferring the application money from Debenture Application Account to Debenture Account, reflecting actual allocation of the money.

The journal entry to record when a shareholder fails to pay for the shares they have been allotted.

The journal entry to record when a company reissues previously forfeited shares, reflecting the re-sale of shares.

The journal entry to record the gain made on the reissue of forfeited shares, transferring the profit to the Capital Reserve account.

The process of transferring a deceased partner's share of the firm's profits to their executors. This involves accounting for their share of profits up to the date of death and distributing it to their beneficiaries.

A type of reserve that is created to cover potential losses arising from bad debts. This is a specific reserve that aims to ensure that the company can account for potential losses from customers who might not pay their dues.

A special account reflecting the difference between the profit or loss shown in the Profit and Loss Account and the amount of profit or loss actually distributed to partners. It can be used to adjust the profit or loss based on agreed upon factors.

The process of accounting for a partner's total share of the firm's profits. This includes their share of the current year's profits, as well as their share of any undistributed prior year profits.

The amount of money that a partner withdraws from the firm during a period. This could be for personal expenses or to invest elsewhere. It represents the partner's personal draw from the firm's profits.

The total amount of money that each shareholder has agreed to pay for their shares. This is divided into installments called calls. The money is credited to the Equity Share Capital account as it is received.

The premium amount received over and above the face value of the shares. This is credited to the Securities Premium account.

This account is used to track the amount of money due from shareholders for the allotment of shares. It's debited when the allotment is made and credited when the money is received.

This account is used to track the money due from shareholders for the calls made on their shares. It's debited when a call is made and credited when the money is received.

This account is used to track the amount of money that shareholders have failed to pay for their shares. It's credited when a shareholder defaults on a payment, and debited when the payment is received.

This entry adjusts for wrongly charged interest on drawings by partners. It affects individual partner capital accounts, reflecting appropriate credit and debit adjustments based on each partner's share of the interest.

This account represents the amount of capital each partner contributes to the partnership. It is adjusted periodically based on the profits and losses incurred in the business, as well as any withdrawals or additional contributions.

This account is used to record the amount due to creditors of a partnership at the time of dissolution. It is debited in the realization account, reducing the total amount realized from the sale of assets.

This involves calculating each partner's share of profit for a period up to the date of death or termination, and transferring this amount to their respective current accounts.

This involves adjusting the capital contributed by partners to maintain a desired capital structure. It involves partners contributing or withdrawing funds to reflect their agreed-upon capital shares.

This account is used to record the sale proceeds of assets during the liquidation of a partnership. It is credited with the realized amount and debited with the expenses incurred during the process.

This involves calculating the amount each partner receives upon the dissolution of a partnership. It considers factors like the partner's capital contribution, their share of profits, and any debts or liabilities.

The process of issuing debentures at a price lower than their face value, resulting in a discount. This discount represents the difference between the issue price and the face value.

The account used to record the discount arising from the issuance of debentures below their face value.

When a company receives application money for shares, it is recorded in the Equity Share Application Account. This account acts as a temporary holding account.

The process of writing off the discount on issue of debentures over a period of time, typically through the Statement of Profit and Loss.

When a company allocates shares to applicants, it transfers the application money from the application account to the share capital account. Any excess received beyond the face value is transferred to the Share Allotment Account.

When shares are issued at a premium, the premium amount is recorded in the Securities Premium Account. This account reflects the extra money shareholders pay above the par value.

The process of acquiring another company's assets and liabilities by paying a purchase consideration.

When shareholders fail to pay the allotment amount, the company records the unpaid amount in the Calls-in-Arrears Account. This account represents the amount due from shareholders who haven't fully paid.

An accounting entry to record the payment of purchase consideration for an acquired company.

If shareholders fail to pay the allotment amount, the company can forfeit their shares. The forfeited shares are then recorded in the Share Forfeiture Account.

When forfeited shares are reissued at a price higher than the original amount, the gain is known as 'gain on reissue'. This gain is transferred to the Capital Reserve Account.

The Capital Reserve Account is a special reserve created to hold profits that are not directly available for distribution as dividends but might be used to absorb losses or to enhance capital.