In a change in a

partnership involving withdrawal of an existing partner and admission of a new

partner:

The

partners of XYZ Partnership share profits and losses in the ratio X: 30% Y 30%

and Z 40%. The capital credit balances of the partners as at 1 January 2022

are: X=$30,000  Y=$30,000 Z=$40,000 and

current account credit balances are: X= $4,000 Y=$3,000 Z=2,000. 1 January

2022, Z withdraws from the partnership and X and Y agree to continue with the

partnership sharing profits and losses in the ratio X: 50% and Y 50%. Upon Z’s

withdrawal from the partnership, the assets of the partnership were revalued

resulting in a net credit balance of $20,000 in the revaluation account.

Goodwill amounting to $30,000 is to be recorded in the books on the day Z

retires. X and Y decided to write-off goodwill. The credit balances in the

capital accounts of X and Y in the new partnership are:

Abby and Bill are in partnership

sharing profits and losses equally. A new partner Cathy is admitted. Profits

will now be shared Abby 40%, Bill 40% and Cathy 20%. The capital balances

before Cathy was admitted were Abby $25,000 and Bill $25,000. There were no

goodwill and revaluation arising from the change in the partnership. Cathy is

to contribute capital in cash so that the capital balances of Abby, Bill and

Cathy is in proportion to the profit sharing ratio for Abby, Bill and Cathy.

How much Cathy’s cash capital contribution to the partnership?

The following ledger accounts indicate:

Application A/C

Equity Receivable A/C

Over subscriptions of shares is where:

In the case of forfeiture of shares by the issuing company:

Every company registered under the Companies Act 1993 will need to

satisfy the solvency test before:

I. making payments of dividends to shareholders

II. making payments for repurchasing its own shares from shareholders 

III. redemption of its shares

IV. forgiveness of debt owed to the company by a shareholder

One of the following statements in not true regarding solvency test:

The following bank ledger account indicates that shareholders have contributed towards equity of: 

Bank A/C