Board Paper of Class 12-Commerce 2014 Accountancy All India(SET 3) - Solutions

A Ltd. forfeited 100 equity shares of Rs 10 each issued at a premium of 20% for the non-payment of final call of Rs 5 including premium. State the maximum amount of discount at which these shares can be re-issued.

Give the meaning of 'Reconstitution of a partnership firm'.

X, Y and Z were partners sharing profits in the ratio of $\frac{1}{2},\frac{3}{10}$ and $\frac{1}{5}.$ X retired from the firm. Calculate the gaining ratio of the remaining partners.

State the rights acquired by a newly admitted partner.

Distinguish between 'Dissolution of partnership' and 'Dissolution of partnership firm' on the basis of Court's intervention.

Tata Ltd. issued 5,000, 10% Debentures of Rs 100 each on 1^st April, 2012. The issue was fully subscribed. According to the terms of issue, interest on debentures is payable half-yearly on 30^th September and 31^st March and tax deducted at source is 10%.

Pass the necessary journal entries related to the debenture interest for the half-yearly ending on 31^st March, 2013 and transfer of interest on debentures to Statement of Profit and Loss.

Pass necessary journal entries in the following cases :

(i) Sunrise Ltd. converted 500, 9% debentures of Rs 100 each issued at a discount of 10% into equity shares of Rs 100 each issued at a premium of Rs 25%.

(ii) Britannia Ltd. redeemed 3,000, 12% debentures of Rs 100 each which were issued at a discount of Rs 10 per debenture by converting them into equity shares of Rs 100 each Rs 90 paid up.

Hemant and Nishant were partners in a firm sharing profits in the ratio of 3 : 2. Their capitals were Rs 1,60,000 and Rs 1,00,000 respectively. They admitted Somesh on 1^st April, 2013 as a new partner for 1/5 share in the future profits. Somesh brought Rs 1,20,000 as his capital. Calculate the value of goodwill of the firm and record necessary journal entries for the above transactions on Somesh's admission.

Monika, Sonika and Mansha were partners in a firm sharing profits in the ratio of 2 : 2 : 1 respectively. On 31^st March, 2013 their Balance Sheet was as under :

Sonika died on 30^th June, 2013. It was agreed between her executors and the remaining partners that

(a) Goodwill of the firm be valued at 3 years' purchase of average profits for the last four years. The average profits were Rs 2,00,000.

(b) Interest on capital be provided at 12% p.a.

(c) Her share in the profits upto the date of death will be calculated on the basis of average profits for the last four years.

Prepare Sonika's Capital Account as on 30^th June, 2013.

Pass necessary journal entries for the following transactions in the books of Gopal Ltd. :

(i) Purchased furniture for Rs 2,50,000 from M/s Furniture Mart. The payment to M/s Furniture Mart was made by issuing equity shares of Rs 10 each at a premium of 25%.

(ii) Purchased a running business from Aman Ltd, for a sum of Rs 15,00,000. The payment of Rs 12,00,000 was made by issue of fully paid equity shares of Rs 10 each and balance by a bank draft. The assets and liabilities consisted of the following:
Plant Rs 3,50,000; Stock Rs 4,50,000; Land and Building Rs 6,00,000; Sundry Creditors Rs 1,00,000.

Singh and Gupta decided to start a partnership firm to manufacture low cost jute bags as plastic bags were creating many environmental problems. They contributed capitals of Rs 1,00,000 and Rs 50,000 on 1^st April, 2012 for this. Singh expressed his willingness to admit Shakti as a partner without capital, who is specially abled but a very creative and intelligent friend of his. Gupta agreed to this. The terms of partnership were as follows :
(i) Singh, Gupta and Shakti will share profits in the ratio of 2 : 2 : 1.
(ii) Interest on capital will be provided @ 6% p.a.
Due to shortage of capital, Singh contributed Rs 25,000 on 30^th September, 2012 and Gupta contributed Rs 10,000 on 1^st January, 2013 as additional capital. The profit of the firm for the year ended 31^st March 2013 was Rs 1,68,900.
(a) Identify any two values which the firm wants to communicate to the society.
(b) Prepare Profit and Loss Appropriation Account for the year ending 31^st March, 2013.

On 1^st April, 2012 Micro-tech Ltd. was formed with an authorised capital of Rs 50,00,000 divided into 5,00,000 equity shares of Rs 10 each. The company issued prospectus inviting applications for 4,50,000 equity shares. The company received applications for 4,20,000 equity shares.
During the first year, Rs 8 per share were called. Trilok holding 1,000 shares and Rajesh holding 2,000 shares did not pay the first call of Rs 2 per share. Rajesh's shares were forfeited after the first call and later on 1,500 of the forfeited shares were re-issued at Rs 6 per share, Rs 8 called up.

Show the following:

(a) Share Capital in the Balance Sheet of the company as per revised Schedule VI Part I of the Companies Act. 1956.
(b) Also prepare 'Notes to Accounts' for the same.

Rajeev, Sanjeev and Jatin were partners in a firm manufacturing blankets. They were sharing profits in the ratio of 5 : 3 : 2. Their capitals on 1^st April, 2012 were Rs 1,00,000, Rs 2,00,000 and Rs 4,00,000 respectively. After the flood in Uttarakhand, all partners decided to help the flood victims personally.

For this Rajeev withdrew Rs 10,000 from the firm on 1^st October, 2012. Sanjeev instead of withdrawing cash from the firm took blankets amounting to Rs 14,000 from the firm and distributed those to the flood victims. On the other hand, Jatin withdrew Rs 1,50,000 from his capital on 31^st December, 2012 and set up a centre to provide medical facilities in the flood affected area.

The partnership deed provides for charging interest on drawings @ 6% p.a. After the final accounts were prepared it was discovered that interest on drawings had not been charged. Give the necessary adjusting journal entry and show the working notes clearly. Also state any two values which the partners wanted to communicate to the society.

Hanif and Jubed were partners in a firm sharing profits in the ratio of their capitals. On 31^st March, 2013 their Balance Sheet was as follows:

On the above date the firm was dissolved.
(i) Debtors were realised at a discount of 5%, 50% of the stock was taken over by Hanif at 10% less than the book value. Remaining stock was sold for Rs 65,000.
(ii) Furniture was taken over by Jubed for Rs 1,35,000. Machinery was sold as scrap for Rs 74,000.
(iii) Creditors were paid in full.
(iv) Expenses on realisation Rs 8,000 were paid by Hanif.
Prepare Realisation Account.

Shikhar and Rohit were partners in a firm sharing profits in the ratio of 7 : 3. On 1^st April, 2013 they admitted Kavi as a new partner for 1/4 share in profits of the firm. Kavi brought Rs 4,30,000 as his capital and Rs 25,000 for his share of goodwill premium. The Balance Sheet of Shikhar and Rohit as on 1^st April, 2013 was as follows :

It was agreed that
(i) the value of Land and Building will be appreciated by 20%.
(ii) the value of Machinery will be depreciated by 10%.
(iii) the liabilities of Workmen's Compensation Fund was determined at Rs 50,000.
(iv) capitals of Shikhar and Rohit will be adjusted on the basis of Kavi's capital and actual cash to be brought in or to be paid off as the case may be.

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

L, M and N were partners in a firm sharing profits in the ratio of 2 : 1 : 1. On 1^st April, 2013 their Balance Sheet was follows :

On the above date N retired.

The following were agreed :
(i) Goodwill of the firm was valued at Rs 6,00,000.
(ii) Land was to be appreciated by 40% and Building was to be depreciated by Rs 1,00,000.
(iii) Furniture was to be depreciated by Rs 30,000.
(iv) The liabilities for Workmen's Compensation Fund was determined at Rs 1,60,000.
(v) Amount payable to N was transferred to his loan account.
(vi) Capitals of L and M were to be adjusted in their new profit sharing ratio and for this purpose current accounts of the partners will be opened.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm.

NY Ltd. invited applications for issuing 90,000 equity shares of Rs 10 each at a premium of Rs 5 per share. The amount was payable as follows:
On applications and allotment − Rs 10 per share (including premium)
On first and final call − the balance amount.

Applications for 2,70,000 shares were received. Applications for 90,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. The amount was duly received except on 1,800 shares applied by Govind. His shares were forfeited. The forfeited shares were re-issued at Rs 8 per share fully paid-up.

Pass necessary journal entries for the above transactions in the books of X Ltd.
 

GY Ltd. invited applications for issuing 85,000 equity shares of Rs 10 each at a discount of 10%. The amount was payable as follows:
On applications and allotment − Rs 4 per share
On first and final call − the balance amount.

Application for 2,00,000 shares were received. Applications for 30,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call was made. All money was received except on 1,700 shares applied by Hari. His shares were forfeited. The forfeited shares were re-issued at the maximum discount permissible under the law.

Pass necessary journal entries for the above transactions in the books of the company.