Board Paper of Class 12-Commerce 2016 Accountancy Abroad(SET 1) - Solutions

Name the Act that provides for the maximum number of partners in a partnership firm.What is the maximum number of partners that a partnership firm can have?  VIEW SOLUTION

Ram, Mohan and Sohan were partners in a firm sharing profits in the ratio of 5:3:2. They admitted Hari as a new partner for ${\frac{1}{5}}^{\mathrm{th}}$share in the profit which he acquired from Ram and Mohan in the ratio of 3:2. Calculate, the new profit sharing ratio of Ram, Mohan, Sohan and Hari. VIEW SOLUTION

Distinguish between ‘Dissolution of partnership’ and ‘Dissolution of partnership firm’ on the basis of court’s intervention. VIEW SOLUTION

State the provisions of the Companies Act, 2013 for the creation of 'Debenture Redemption Reserve'.

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On 15-1-2016 the first call of Rs 4 per share became due on 10,000 equity shares issued by New India Ltd. Aman a holder of 500 shares did not pay the first call money. Shanti a shareholder holding 600 shares paid the second and final call of Rs 3 per share along with the first call.
Pass the necessary journal entry for the amount received by opening ‘Calls-in-arrears’ and ‘Calls-in-advance’ account in the books of the company. VIEW SOLUTION

A and B were partners in a firm sharing profits in the ratio of 4:5. During the year ended 31-3-2015 A withdrew Rs 19,000. Interest on A’s drawings was Rs 700.

Pass necessary Journal entry for charging interest on A’s drawings assuming that the capitals of the partners were fixed. VIEW SOLUTION

TRK Ltd. issued 767,9% debentures of Rs 100 each on 1-1-2016. Pass necessary journal entries for the issue of debentures in the following situations:
(a) When debentures were issued at a discount of 3% and were redeemable at a premium of 7%.
(b) When debentures were issued at a premium of 4% and were redeemable at a premium of 9%. VIEW SOLUTION

Why should assets and liabilities be revalued on the reconstitution of a partnership firm? Explain briefly giving examples. VIEW SOLUTION

B’ Ltd. took over the assets of Rs 14,00,000 and liabilities of Rs 4,00,000 of C Ltd. for a purchase consideration of Rs 9,19,000. Rs 17,000 were paid by a bank draft in favour of C Ltd. and the balance was paid by issue of equity shares of Rs 10 each at a premium of 10% in favour of C Ltd.

Pass necessary journal entries for the above transactions in the books of B Ltd. VIEW SOLUTION

To provide employment to the youth and to develop a backward area of Jharkhand which is near one of the coal mines, Thermal Power Energies Ltd. decided to set-up a Thermal Power Plant of 500 mega watt capacities. The company decided to issue 10,00,000 equity shares of Rs 10 each at a premium of 70% to finance the project.

Applications for 17,00,000 shares were received. Applications for 5,00,000 shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The whole of share money was payable on application.

Pass necessary journal entries for the above transactions in the books of the company and identify any two values which the company wants to convey to the society. VIEW SOLUTION

E and F were partners in a firm sharing profits in the ratio of 7:3. On 1-4-2014 they admitted G as a new partner for 1/5^th share in the profit with a guaranteed profit of Rs 60,000. The new profit sharing ratio between E and F will remain the same but they agreed to bear any deficiency on account of guarantee to G in the ratio of 3:7. The profit of the firm for the year ended 31-3-2015 was Rs 2,70,000.

Prepare Profit and Loss Appropriation Account of E, F and G for the year ended 31-3-2015. VIEW SOLUTION

Geeta, Sita and Meeta were partners in a firm sharing profits in the ratio of 5:3:2. The firm closes its books on 31^st March every year. On 30-6-2015 Geeta died. On that date her capital account showed a debit balance of Rs 5,000 and Goodwill of the firm was valued at Rs 3,70,000.
There was a debit balance of Rs 12,000 in the profit and loss account. Geeta’s share of profit in the year of her death was to be calculated on the basis of the average profit of last 5 years which was Rs 80,000.

Pass necessary journal entries in the books of the firm on Geeta’s death. VIEW SOLUTION

K and P were partners in a firm sharing profits in the ratio of 7:5. On 31-1-2016 their firm was dissolved. After transferring assets (other than cash) and outsiders liabilities to the realization account, you are given the following information:
(a) Raman, a creditor for Rs 4,20,000 accepted building valued at Rs 8,00,000 and paid the balance to the firm by a cheque.
(b) Rajeev, a second creditor for Rs 1,70,000 accepted machinery valued at Rs 1,65,000 in full settlement of his claim.
(c) Ranjan, a third creditor for Rs 90,000 accepted investments of Rs 45,000 and a bank draft of Rs 43,000 in his favour in full settlement of his claim.
(d) P we appointed to do the work of dissolution for which he was allowed Rs 2,000. Actual expenses of dissolution Rs 2,400 were paid by P.

Pass necessary journal entries for the above transactions in the books of K and P. VIEW SOLUTION

Ajay, Aman and Anand were partners in a firm sharing profits in the ratio of 5:1:4. Their Balance Sheet as on 31-3-2015 was as follows:
 

Balance Sheet of Ajay, Aman and Anand as on 31-3-2015
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Creditors		1,47,000	Land	5,40,000
Bills Payable		33,000	Building	2,70,000
General reserve		2,10,000	Plant	1,90,000
Capitals:			Stock	75,000
Ajay	5,00,000		Debtor	60,000
Aman	1,00,000		Bank	15,000
Anand	1,60,000	7,60,000
		11,50,000		11,50,000

From 1-4-2015 Ajay, Aman and Anand decided to share future profits equally. For this it was agreed that:
(i) Goodwill of the firm be valued at Rs 1,80,000.
(ii) Land be revalued at Rs 6,00,000 and building be depreciated by 10%.
(iii) Creditors of Rs 15,000 were not likely to be claimed and hence be written-off.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the reconstituted firm. VIEW SOLUTION

On 1-4-2013 NK Ltd. had 15,000, 9% Debentures of Rs 100 each outstanding.

(i) On 1-4-2014 the company purchased from the open market 5,000 of its own debentures for Rs 102 each and cancelled the same immediately.

(ii) On 1-4-2015 company redeemed at par debentures of Rs 3,00,000 by draw of lot.

(iii) On 17-2-2016 the remaining debentures were purchased for immediate cancellation for Rs 5,99,500.

Ignoring debenture redemption reserve and interest on debentures, pass necessary journal entries for the above transactions in the books of the company. VIEW SOLUTION

JS Ltd. invited applications for issuing 80,000 equity shares of Rs 10 each at a premium of Rs 6 per share. The amount was payable as follows:

On application – Rs 4 per share (including premium Rs 1 per share)

On Allotment – Rs 6 per share (including premium Rs 3 per share)

On First and Final Call – Balance.

Applications for 1,60,000 shares were received. Applications for 40,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Raman holding 400 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the final call was made. Veer who had applied for 1,200 shares failed to pay the final call. His shares were also forfeited. Out of the forfeited shares 500 shares were re-issued at Rs 8 per share fully paid-up. The re-issued shares included all the forfeited shares of Raman.

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

OR

 

BOOKS OF RS LTD. JOURNAL
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2015
Jan. 10	……………..	Dr.		……….
	To ……………………				……….
	(Application money received for 35,000 shares @ Rs 5 per share)
Jan. 16	……………..	Dr.		……….
	To ……………………				……….
	To ……………………				……….
	To ……………………				……….
	To ……………………				……….
	(Transfer of share application money to share capital a/c, securities premium a/c, refunded for 4,000 shares for rejected applications and balance to share allotment as shares were allotted on pro-rata basis)
Jan. 31	……………..	Dr.		……….
	To ……………………				……….
	(Amount due on allotment @ Rs 4 per share)
Feb. 20	……………..	Dr.		……….
	To ……………………				……….
	(Balance amount received on allotment)
April  01	……………..	Dr.		……….
	To ……………………				……….
	(First and final call money due)
April 20	……………..	Dr.		……….
	Calls-in-arrears A/c.	Dr.		……….
	To ……………….				……….
	(Money received on first and final call except on 500 shares)
Aug. 27	……………..	Dr.		……….
	To ……………….				……….
	To ……………….				……….
	(Forfeited the shares on which first and final call money was not received)
Oct. 3	……………..	Dr.		……….
	……………..	Dr.		……….
	To ……………….				……….
	(Re-issued the forfeited shares @ 8 per share fully paid-up)
…………	…………..	Dr.		……….
	To …………..				……….
	(.…………..…………..…………..)

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P, Q and R were partners in a firm sharing profit in the ratio of 3:2:1. On 31-3-2015 their Balance Sheet was as follows :
 

Balance Sheet of P, Q and R as on 31-3-2015
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Creditors		2,52,000	Bank	51,000
General Reserve		63,000	Debtors	69,000
Capitals:			Stock	3,30,000
P	1,80,000		Investments	90,000
Q	1,20,000		Furniture	30,000
R	60,000	3,60,000	Machinery	1,05,000
		6,75,000		6,75,000

On the above date S was admitted as a new partner and it was decided that :

(i) The new profit sharing ratio between P, Q, R and S will be 2:2:1:1.

(ii) Goodwill of the firm was valued at Rs 2,70,000 and S will bring his share of goodwill premium in cash.

(iii) The market value of investments was Rs 64,000.

(iv) Machinery will be reduced to Rs 87,000.

(v) A creditor of Rs 9,000 was not likely to claim the amount and hence to be written-off.

(vi) S will bring proportionate capital so as to give him 1/6^th share in the profits of the firm.

Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of P, Q, R and S.
 

OR

A, B and C were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31-3-2015 their Balance Sheet was as follows:
 

Balance Sheet of A, B and C as on 31-3-2015
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Creditors		63,000	Land and Building		1,86,000
Investment			Motor Vans		60,000
Fluctuation Fund		30,000	Investments		57,000
P & L Account		1,20,000	Machinery		36,000
Capitals:			Stock		45,000
A	1,50,000		Debtors	1,20,000
B	1,20,000		Less: Provision	9,000	1,11,000
C	60,000	3,30,000	Cash		48,000
		5,43,000			5,43,000

On the above date B retired and A and C agreed to continue the business on the following terms :

(1) Goodwill of the firm was valued at Rs 1,53,000.

(2) Provision for bad debts was to be reduced by Rs 3,000.

(3) There was a claim of Rs 12,000 for workmen compensation.

(4) B will be paid Rs 24,600 in cash and the balance will be transferred to his loan account which will be paid in four equal yearly instalments together with interest @ 10% p.a.

(5) The new profit sharing ratio between A and C will be 3:2 and their capital will be in their new profit sharing ratio. The capital adjustments will be done by opening current accounts.

Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of A and C.

VIEW SOLUTION