Board Paper of Class 12-Commerce 2015 Accountancy Abroad(SET 1) - Solutions

Kamal and Vimal were partners in a firm sharing profits in the ratio of 3 : 2. Ghosh was admitted as a new partner for $\frac{1}{5}\mathrm{th}$ share in the profits.

On Ghosh's admission the Balance Sheet of the firm showed a credit balance of Rs 10,000 in its Profit and Loss Account which was debited by the accountant of the firm in the accounts of Kamal and Vimal. Did the accountant give correct treatment to the balance of Profit and Loss Account? If 'yes' give the reason and if 'not' give the correct treatment.

Anurag and Bhawana entered into partnership on 1.4.2014. On 1.1.2015 they admitted Monika as a new partner for $\frac{3}{10}\mathrm{th}$ share in the profits which she acquired equally from Anurag and Bhawana. The new profit sharing ratio of Anurag, Bhawana and Monika was 4 : 3 : 3. Calculate the profit sharing ratio of Anurag and Bhawana at the time of forming the partnership.

'Samta Limited' invited applications for issuing 6,750 equity shares of Rs 10 each. The amount was payable as follows :

The issue was fully subscribed. Subhash applied for 250 shares and paid his entire share money with application. Moti applied for 175 shares and paid allotment money also with application. The amount received with applications was :
(a) Rs 16,750
(b) Rs 16,000
(c) Rs 19,250
(d) Rs 22,875

A and B are partners in a firm sharing profits in the ratio of 3 : 2. On 31.3.2014, the Balance Sheet of the firm was as follows :
 

The Profit of Rs 80,000 for the year ended 31.3.2014 was divided between the partners without allowing interest on capital @ 12% per annum and a salary to A at Rs 1,000 per month. During the year A withdrew Rs 10,000 and B Rs 20,000.
Pass a single journal entry to rectify the error.

'Telecom Limited' is registered with an authorized capital of Rs 8,00,00,000 divided into 80,00,000 equity shares of Rs 10 each. The company issued 1,00,000 shares at a premium of Rs 2 per share. The amount was payable as follows :

      On application − Rs 3 per share
      On allotment − Rs 5 per share (including premium)
      On first and final call − The balance

All calls were made and were duly received except the first and final call on 1,000 shares held by Asha.
Present the 'Share Capital' in the Balance Sheet of the company as per Schedule VI Part I of the Companies Act, 1956.

'Panipat Blankets Limited' are the manufacturers and exporters of blankets. The company decided to distribute 1,000 blankets free of cost to five villages of Kashmir which had been damaged by the floods. It also decided to employ 100 young persons from these villages in their newly established factory at Ludhiana in Punjab. To meet the requirements of funds for its new factory, the company issued 1,00,000 equity shares of Rs 10 each and 2,000, 9% debentures of Rs 100 each to the vendors of machinery purchased for Rs 12,00,000.

Pass necessary journal entries for the above transactions in the books of the company. Also identify any one value which the company wants to communicate to the society.

Joshi, Pandey and Agarwal were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31.3.2014, their Balance Sheet was as follows:
 

On 31.12.2014, Agarwal died. The partnership deed provided for the following to the executors of the deceased partner :

(a) His share in the goodwill of the firm, calculated on the basis of three year's purchase of the average profits of the last four years.The profits of the last four years were Rs 2,70,000; Rs 3,00,000; Rs 5,40,000 and Rs 8,10,000 respectively.

(b) His share in the profits of the firm till the date of his death, calculated on the basis of the average profits of the last four years.

(c) Interest @12% per annum on the credit balance, if any, in his Capital account.

(d) Interest on his loan @12% per annum.

Prepare Agarwal's Capital Account to be presented to his executors.

Jain, Gupta and Singh were partners in a firm. Their fixed capitals were : Jain Rs 4,00,000 ; Gupta Rs 6,00,000 and Singh Rs 10,00,000. They were sharing profits in the ratio of their capitals. The firm was engaged in the processing and distribution of flavoured milk. They partnership deed provided for interest on capital at 10% per annum. During the year ended 31st March 2014 the firm earned a profit of Rs 1,47,000.
Showing your working notes clearly, prepare Profit and Loss Appropriation Account of the firm.

On 1.4.2013 Mohan and Sohan entered into partnership for doing business of dry fruits. Mohan introduced Rs 1,00,000 as capital and Sohan introduced Rs 50,000. Since Sohan could introduce only Rs 50,000 it was further agreed that as and when there will be a need Sohan will introduce further capital. Sohan was also allowed to withdraw from his capital when the need for the capital was less. During the year ended 31.3.2014, Sohan introduced and withdrew the following amounts of capital :

The partnership deed provided for interest on capital @ 6% per annum. Calculate interest on capitals of the partners.

'Chennai Fibers Limited' was registered with an authorized capital of Rs 40,00,000 divided into 4,00,000 equity shares of Rs 10 each. The company had issued 1,00,000 shares and the dividend paid per share was Rs 3 for the year 2007 - 08. The management of the company decided to export its readymade apparels to European countries. To meet the requirement of additional funds, the finance manager put up before the Board of Directors the following three alternative proposals :
(i) Issue of 1,54,000 equity shares at par.
(ii) Obtain a loan of Rs 15,40,000 from a financial institution for a period of 5 years. The loan was available @ 12% per annum.
(iii) Issue 16,000, 9% debentures of Rs 100 each at a discount of 10% redeemable in instalments at the end of third, fourth, fifth and sixth year as per details given below :

After comparing the alternatives, the company decided in favour of the third alternative and issued debentures on 1.4.2008.
Prepare 9% debentures account for the years 2008 - 09 to 2013 - 14.

Chopra, Shah and Patel were partners sharing profits in the ratio of 3 : 2 : 1. On 31.3.2014 their firm was dissolved. The assets were realized and liabilities were paid off. The accountant prepared Realisation Account, Partner's Capital Accounts and Cash Account but forgot to post few amounts in these accounts.

You are required to complete the below give accounts by posting correct amounts.
 

'Nigam Limited' invited applications for issuing 15,000 equity shares of Rs 10 each at a discount of Rs 1 per share. The amount was payable as follows:
                  On application − Rs 2 per share
                  On allotment − Rs 3 per share
                  On first and final call − Rs 4 per share
Applications for 18,000 shares were received. Shares were issued proportionately to all applicants. Excess money received with applications was adjusted towards sums due on allotment. Ramesh who had applied for 360 share failed to pay allotment, and first and final call money. Naresh to whom 150 shares were allotted failed to pay the first and final call money. Shares of both Ramesh and Naresh were forfeited. Out of the forfeited shares, 200 shares were re-issued at Rs 9 per share as fully paid up. The re-issued shares included all the shares of Naresh.
Pass necessary journal entries for the above transactions in the books of 'Nigam Limited'.

'Guru Limited' invited applications for issuing 80,000 equity shares of Rs 10 each at a premium of Rs 10 per share. The amount was payable as follows:
              On application and allotment − Rs 10 (including Rs 5 premium)
              On first and final call − Rs 10 (including Rs 5 premium)
Applications for 1,00,000 share were received. Applications for 10,000 shares were rejected and application money was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess application money received from applicants to whom shares were allotted on pro-rata basis was adjusted towards sums due on first and final call. All calls were made and were duly received except the first and final call money from Kumar who had applied for 1,800 shares. His shares were forfeited. The forfeited shares were re-issued at Rs 9 per share as fully paid up.
Pass necessary journal entries for the above transactions in the books of 'Guru Limited'.

A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. On 1.4.2014 their Balance Sheet was as follows :

On the above date C retired. It was agreed that :

(i) Goodwill of the firm be valued at Rs 5,400.

(ii) Depreciation of 10% was to be provided on machinery.

(iii) Patents were to be reduced by 20%.

(iv) Liability on account of Provident Fund was estimated at Rs 2,500.

(v) C took over investments for Rs 31,700.

(vi) A and B decided to adjust their capitals in proportion to their profit sharing ratio. For this purpose current accounts were opened.

Prepare Revaluation Account and Partners' Capital Accounts on C's retirement.

OR

O, R and S were partners in a firm sharing profits in the ratio of 3 : 2 : 1. On 1.4.2014 their Balance Sheet was as follows :

On the above date, H was admitted on the following terms :
(i) H will bring Rs 50,000 as his capital and will get 1/6^th share in the profits.
(ii) He will bring necessary cash for his share of goodwill premium. The goodwill of the firm was valued at Rs 90,000.
(iii) The new profits sharing ratio will be 2 : 2 : 1 : 1.
(iv) A liability of Rs 7,004 will be created against bills receivables discounted.
(v) The value of stock, furniture and investments is reduced by 20% whereas the value of land and building and plant and machinery will be appreciated by 20% and 10% respectively.
(vi) The Capital accounts of the partners will be adjusted on the basis of H's Capital through their current accounts.

Prepare Revaluation Account and Partner's Current Accounts and Capital Accounts.