Board Paper of Class 12-Commerce 2008 Accountancy Delhi(SET 1) - Solutions

Given two main sources of income of a ‘Not for Profit Organisation’.

A and B are partners in a firm without a partnership deed. A is an active partner and claims a salary of Rs 18,000 per month. State with reason whether the claims is valid or not?

Define gaining ratio.

State any two occasions when reconstruction of a partnership firm takes place.

Give the meaning of ‘Calls in Arrears’.

On the basis of the information given below calculate the amount of Stationery to be debited to the ‘Income and Expenditure Account’

of Good Health Sports Club for the year ended 31^st March 2007.

Stationery purchased during the year ended 31.3.2007 was Rs 47,000.

PS Ltd. forfeited 500 equity shares of Rs 100 each for the non-payment of first, call of Rs 30 per share. The final call of Rs 10 per shares was not yet made. The forfeited shares were re-issued for Rs 65,000 fully paid up. Pass necessary Journal entries in the books of the company.

X Ltd. purchased machinery for Rs 5,50,000 from Y Ltd. Rs 55,000 were paid by X Ltd. in cash and the balance was paid by issue of

9% debentures of Rs 1,000 each at 10% premium redeemable after three years. Pass necessary journal entries in the book of the company.

Ravi and Mohan were partners in a firm sharing profits in the ratio of 7:5. Their respective fixed capitals were Ravi Rs 10,00,000 and

Mohan Rs 7,00,000. The partnership deed provided for the following:

(i) Interest on Capital @12% p.a.

(ii) Ravi’s salary Rs 6,000 per months and Mohan’s salary Rs 60,000 per year.

The profit for the year ended 31.3.2007 was Rs 5,04,000 which was distributed equally, without providing for the above. Pass an adjustment entry.

A, B and C were partners in a firm sharing profits in 3 : 2 : 1 ratio. The firm closes its books on 31^st March every year. B dies on

12.6.2007. On B’s death the goodwill of the firm was valued at Rs 60,000. On B’s death his share in the profits of the firm till the time of his death was to be calculated on the basis of previous year’s profit which was Rs 1,50,000. Calculate B’s share in the profit of the firm. Pass necessary journal entries for the treatment of goodwill and B’s share of profit at the time of his death.

S Ltd. was registered with an authorized capital of Rs 4,00,000 divided into 40,000 equity shares of Rs 10 each. The company offered to the public for subscription 30,000 equity shares. Applications for 28,000 equity shares were received and allotment was made to all the application. All calls were made and were duly received except the final call of Rs 2 per shares on 200 shares. Prepare the balance sheet of the company showing the different categories of shares capital.

Following is the Receipt and Payment Account of Literacy Club for the year ended 31.3.2006:

Additional Information:

(i) Subscription outstanding as on 31.3.2005 were Rs 2,000 and on 31.3.2006 Rs 2,500.

(ii) On 31.3.2006 salary outstanding was Rs 600 and rent outstanding was Rs 1,200.

(iii) The club owned furniture Rs 15,000 and books Rs 7,000 on 1.4.2005.

Prepare Income and Expenditure Account of the Club for the year ended 31.3.2006 and ascertain ‘ Capital Fund’ on 31.3.2005.

A and B were partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted C as a new partner. A surrendered 1/3 rd

of his share in favour of C and B surrendered 1/4 th of his share in favour of C. C brought Rs 1,50,000 for his share of capital and Rs

58,000 for his share of goodwill. Calculate new profit sharing ratio of A, B and C, sacrificing ratio of A and B and pass necessary

journal entries for the above transaction of C’s admission.

Pass necessary journal entries for the following transaction

(i) Issued 60,000, 9% debentures of Rs 75 each at premium of Rs 25 per debentures.

(ii) Purchased 3,000, 9% own debentures of Rs 100 each at Rs 97 each for immediate cancellation.

(iii) Converted 1,800, 9% debentures of Rs 100 each into 12% debentures of Rs 100 each issued at a premium of 25%.

X and Y were partners in a firm sharing profits in 5 : 3 ratio. They admitted Z as a new partner for 1/3 rd share in the profits. Z was to

contribute Rs 20,000 as his capital. The balance sheet of X and Y on 1.4.2007 the date of Z’s admission was as follows:

Other terms agreed upon were:

(i) Goodwill of the firm was valued at Rs 12,000.

(ii) Land and Building were to be valued at Rs 35,000 and Plant and Machinery at Rs 25,000

(iii) The Provision for doubtful debts was found to be in excess by Rs 400

(iv) A liability for Rs 1,000 included in sundry creditors was not likely to arise.

(v) The capitals of the partners be adjusted on the basis of Z’s contributions of capital in the firm.

(vi) Excess or shortfall, if any to be transferred to current accounts.

Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the new firm.

OR

The Balance Sheet of A, B and C who were sharing profits and losses in the ratio of 1/2 , 1/3 and 1/6 respectively, was as follows on 1.4.2004:

A retired from the business on 1.4.2004 and his share in the firm was to be ascertained on the revaluation of the assets as follows:

Stock Rs 20,000; Furniture Rs 3,000; Plant and Machinery Rs 9,000; Building Rs 20,000; Rs 850 was to be provided for doubtful

debts. The goodwill of the firm was valued at Rs 6,000.

A was to be paid Rs 11,500 in cash on retirement and the balance in three equal yearly installments with interest at 9% per annum.

Prepare Revaluation Account, Partner’s Capital Accounts and A’s Loan Accounts on the date of his retirement.

X Ltd. invited applications for issuing 80,000 equity shares of Rs 10 each at a premium of Rs 2 per shares. The amount was payable as

follows:

On application Rs 6(including premium) per share.

On allotment Rs 3 per share and the balance on first and final call. Application for 90,000 shares were received. Application for 5,000 shares were rejected and pro rata allotment was made to the remaining applications. Over payments received on application was adjusted towards sums due to allotment. All calls were made and were duly received except the allotment and final call on 1,600 shares allotted to Vijay. These shares were forfeited and the forfeited shares were re-issued for Rs 18,400 fully paid up.

Pass the necessary Journal entries in the books of the company.

OR

Y Ltd. invited application for issuing 10,000 equity shares of Rs 100 each at a discount of 6%. The amount was payable as follows:

On application Rs 20 per share

On allotment Rs 44 per share and the balance on first and final call

Applications for 13,000 shares were received. Application for 500 shares were rejected and pro-rata allotment was made to be

remaining applications. Over payment received with application were adjusted towards sums due on allotment. All calls were made

and were duly received except Kanwar who had applied for 250 shares failed to pay allotment and call money. His shares were

forfeited. The forfeited shares were re-issued at Rs 22,000 fully paid up.

Pass necessary journal entries in the books of the company.