Loss on reissue will be Re. 1 per share. The total amount of Rs. 200 will be loss.

Plant and machinery is fixed asset. all others are current.

Dividends payable are dividends that a company’s board of directors has declared to be payable to its shareholders. Until such time as the company actually pays the shareholders, the cash amount of the dividend is recorded within a dividends payable account as a current liability.

Here dividend payable will be 5% of (Equity share capital called up - Calls in arrear ) = 5% of (10,00,000– 40,000) = Rs. 48,000.

When the shares forfeited are reissued at discount, Bank account is debited by the amount received and Share capital account is credited by the paid up amount. The amount of discount allowed is debited to Share Forfeited Account. This is for adjusting the amount of discount so allowed from the amount forfeited at the time of forfeiture.

Now the amount of discount allowed on reissue of shares at the most can be equal to the forfeited
amount on such shares. In that case the share forfeited account after reissue will show a zero balance.

But in case, this amount of discount is less than the amount forfeited, the remaining forfeited amount will be profit for the company. This profit is a capital gain to the company and is transferred to Capital Reserve account.
In the above question discount on shares reissued = number of shares reissued × discount allowed per share = 30 × 15 = Rs. 450.

Amount available for the reissued shares in shares forfeiture account = number of shares reissued ×amount forfeited per share = 30 × (20) = Rs. 600

The surplus amount to be transferred to capital reserve account = 600 – 450 = Rs. 150

Furniture and fittings is a fixed asset not current.

Loss of quantity of goods in the normal course of business and inherent and thus inevitable or unavoidable,such as loss because of loading and unloading of goods, leakage, evaporation or shrinkage is known as normal loss.

The treatment of normal loss is to charge it to consignment account. The total cost of goods sent is charged to the units remaining. Value of inventory is inflated to cover the normal loss.

In other words such loss is absorbed by the remaining units.

No separate entry is made in the books of consignor in case of normal. such loss is considered while calculating the cost of inventory left unsold with the consignee. The value of unsold stock on consignment is increased because the value of stock is the proportion of the cost of the goods consigned and direct expenses that the quantity of inventory bears to the total quantity of goods consigned as diminished by the normal loss of goods.

Here Bharti consigned to Bhawna 1,500 Kg of flour costing Rs. 4,500. She spent Rs. 307 as forwarding charges. 5% of the consignment was lost in weighing and handling. Bhawna sold 1,350 Kg of flour at Rs.4 per kg.

Units lost = 5 % of 1,500 = 75 kgs

Closing inventory = 95% of 1,500 – 1,350 = 75 kgs

Cost of goods consigned = 4,500 + 307 = Rs. 4,807

Value of closing inventory = units of unsold inventory × (original cost of goods consigned + direct expenses)/(total units-units lost) = 75 × 4,807/(1,500 – 75) = Rs. 253.

Valuation of closing stock:

Cost of goods consigned = 15,000

Add: packing and dispatch = 500

Add:freight = 500

Add: Carriage = 200

Total cost = 16,200

Cost of unsold goods = 16,200 × 10/100 = 1,620.

Consistency has been violated in the given case.