Board Paper of Class 12-Commerce 2018 Accountancy All India(SET 1) - Solutions

Amit and Beena were partners in a firm sharing profits and losses in the ratio of 3 : 1. Chaman was admitted as a new partner for ${\frac{1}{6}}^{\mathrm{th}}$ share in the profits. Chaman acquired ${\frac{2}{5}}^{\mathrm{th}}$of his share from Amit.
How much share did Chaman acquire from Beena? VIEW SOLUTION

Neetu, Meetu and Teetu were partners in a firm. On 1^st January, 2018, Meetu retired. On Meetu's retirement the goodwill of the firm was valued at Rs 4,20,000.
Pass necessary journal entry for the treatment of goodwill on Meetu's retirement. VIEW SOLUTION

Distinguish between 'Dissolution of partnership' and 'Dissolution of partnership firm' on the basis of settlement of assets and liabilities. VIEW SOLUTION

Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amounts and purchased a building for Rs 2 crores. After a year, they sold it for Rs 3 crores and shared the profits equally. Are they doing the business in partnership? Give reason in support of your answer. VIEW SOLUTION

Is 'Reserve Capital' a part of 'Unsubscribed Capital' or 'Uncalled Capital'? VIEW SOLUTION

Give the meaning of 'Debentures issued as Collateral Security'. VIEW SOLUTION

Jayant, Kartik and Leena were partners in a firm sharing profits and losses in the ratio of 5 : 2 : 3. Kartik died and Jayant and Leena decided to continue the business. Their gaining ratio was 2 : 3.
Calculate the new profit sharing ratio of Jayant and Leela. VIEW SOLUTION

What is meant by a 'Share' ? Give any two differences between 'Preference Shares' and 'Equity Shares'. VIEW SOLUTION

NK Ltd., a truck manufacturing company, is registered with an authorised capital of Rs 1,00,00,000 divided into equity shares of Rs 100 each. The subscribed and paid up capital of the company is Rs 50,00,000. The company decided to open technical schools in the Jhalawar district of Rajasthan to train the specially abled children of the area. It is planning to provide them employment in its various production units and industries in the neighbourhood area.
To meet the capital expenditure requirements of the project, the company offered 20,000 shares to the public for subscription. The shares were fully subscribed and paid.
Present the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the Companies Act, 2013.
Also identify any two values that the company wants to communicate. VIEW SOLUTION

Complete the following journal entries left blank in the books of VK Ltd.:
 

VK Ltd. Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2018	……………………….	Dr.		….……
February 01	……………………….				….……
	(Purchased own 500, 9% debentures of Rs 100 each at Rs 97 each for immediate cancellation)
February 01	……………………….	Dr.		….……
	……………………….				….……
	……………………….				….……
	(Cancelled own debentures)
….……	……………………….	Dr.		….……
	……………………….				….……
	(……………………….)

VIEW SOLUTION

Banwari, Girdhari and Murari are partners in a firm sharing profits and losses in the ratio of 4 : 5 : 6. On 31^st March, 2014, Girdhari retired. On that date the capitals of Banwari, Girdhari and Murari before the necessary adjustments stood at Rs 2,00,000, Rs 1,00,000 and Rs 50,000 respectively. On Girdhari's retirement, goodwill of the firm was valued at Rs 1,14,000. Revaluation of assets and re-assessment of liabilities resulted in a profit of Rs 6,000. General Reserve stood in the books of the firm at Rs 30,000.

The amount payable to Girdhari was transferred to his loan account. Banwari and Murari agreed to pay Girdhari two yearly instalments of Rs 75,000 each including interest @ 10% p.a. on the outstanding balance during the first two years and the balance including interest in the third year. The firm closes its books on 31^st March every year.
Prepare Girdhari's loan account till it is finally paid showing the working notes clearly. VIEW SOLUTION

Asha and Aditi are partners in a firm sharing profits and losses in he ratio of 3 : 2. They admit Raghav as a partner for ${\frac{1}{4}}^{\mathrm{th}}$ share in the profits of the firm. Raghav brings Rs 6,00,000 as his capital and his share of goodwill in cash. Goodwill of the firm is to be valued at two years' purchase of average profits of the last four years.
The profits of the firm during the last four years are given below:

Year	Profit (Rs)
2013 – 14 2014 – 15 2015 – 16 2016 – 17	3,50,000 4,75,000 6,70,000 7,45,000

The following additional information is given:
(i) To cover management cost an annual charge of Rs 56,250 should be made for the purpose of valuation of goodwill.
(ii) The closing stock for the year ended 31.3.2017 was overvalued by Rs 15,000.
Pass necessary journal entries on Raghav's admission showing the working notes clearly. VIEW SOLUTION

Pranav, Karan and Rahim were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31^st March, 2017 their Balance Sheet was as follows :
 

Balance Sheet of Pranav, Karan and Rahim as on 31.3.2017
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Creditors		3,00,000	Fixed Assets	4,50,000
General Reserve		1,50,000	Stock	1,50,000
			Debtors	2,00,000
			Bank	1,50,000
Capitals:
Pranav	2,00,000
Karan	2,00,000
Rahim	1,00,000	5,00,000
		9,50,000		9,50,000

Karan died on 12.6.2017. According to the partnership deed, the legal representatives of the deceased partner were entitled to the following :

(i) Balance in his Capital Account
(ii) Interest on Capital @12% p.a.
(iii) Share of goodwill. Goodwill of the firm on Karan's death was valued at Rs 60,000.
(iv) Share in the profits of the firm till the date of his death, calculated on the basis of last year's profit. The profit of the firm for the year ended 31.3.2017 was Rs 5,00,000.
Prepare Karan's Capital Account to be presented to his representatives. VIEW SOLUTION

Chander and Damini were partners in a firm sharing profits and losses equally. On 31^st March, 2017 their Balance Sheet was as follows:
 

Balance Sheet of Chander and Damini as on 31.3.2017 as on 31.3.2016
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Sundry Creditors		1,04,000	Cash at bank	30,000
			Bills Receivable	45,000
			Debtors	75,000
			Furniture	1,10,000
			Land and Building	3,10,000
Capitals:
Chander	2,50,000
Damini	2,16,000	4,66,000
		5,70,000		5,70,000

On 1.4.2017, they admitted Elina as a new partner for ${\frac{1}{3}}^{\mathrm{rd}}$ share in the profits on the following conditions:
(i) Elina will bring Rs 3,00,000 as her capital and Rs 50,000 as her share of goodwill premium, half of which will be withdrawn by Chander and Damini.
(ii) Debtors to the extent of Rs 5,000 were unrecorded.
(iii) Furniture will be reduced by 10% and 5% provision for bad and doubtful debts will be created on bills receivables and debtors.
(iv) Value of land and building will be appreciated by 20%.
(v) There being a claim against the firm for damages, a liability to the extent of Rs 8,000 wil be created for the same.
Prepare Revaluation Account and Partners' Capital Accounts. VIEW SOLUTION

On 1^st April, 2014, KK Ltd. invited applications for issuing 5,000 10% debentures of Rs 1,000 each at a discount of 6%. These debentures were repayable at the end of 3^rd year at a premium of 10%. Applications for 6,000 debentures were received and the debentures were allotted on pro-rata basis to all the applicants. Excess money received with applications was refunded.
The directors decided to transfer the minimum amount to Debenture Redemption Reserve on 31.3.2016. On 1.4.2016, the company invested the necessary amount in 9% bank fixed deposit as per the provisions of the Companies Act, 2013. Tax was deducted at source by bank on interest @10% p.a.
Pass the necessary journal entries for issue and redemption of debentures. Ignore entries relating to writing off loss on issue of debentures and interest paid on debentures. VIEW SOLUTION

Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31^st March, 2017 their Balance Sheet was as follows :
 

Balance Sheet of Srijan, Raman and Manan as on 31.3.2017
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Capitals:			Capital : Manan	10,000
Srijan	2,00,000		Plant	2,20,000
Raman	1,50,000	3,50,000	Investments	70,000
Creditors		75,000	Stock	50,000
Bills Payable		40,000	Debtors	60,000
Outstanding Salary		35,000	Bank	10,000
			Profit and Loss Account	80,000
		5,00,000		5,00,000

On the above date they decided to dissolve the firm.
(i) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on sale of assets (except cash) and was to bear all expenses of realisation.

(ii) Assets were realised as follows :
 
(iii) Investments were realised at 95% of the book value.
(iv) The firm had to pay Rs 7,500 for an outstanding repair bill not provided for earlier.
(v) A contingent liability in respect of bills receivable, discounted with the bank had also materialised and had to be discharged for Rs 15,000.
(vi) Expenses of realisation amounting to Rs 3,000 were paid Srijan. Prepare Realisation Account, Partners' Capital Accounts and Bank Account.
 
Moli, Bhola and Raj were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. Their partnership deed provided for the following :
(i) Interest on capital @ 5% p.a.
(ii) Interest on drawing @ 12% p.a.
(iii) Interest on partners' loan @ 6% p.a.
(iv) Moli was allowed an annual salary of Rs 4,000; Bhola was allowed a commission of 10% of net profit as shown by Profit and Loss Account and Raj was guaranteed a profit of Rs 1,50,000 after making all the adjustments as provided in the partnership agreement.
Their fixed capitals were Moli : Rs 5,00,000; Bhola : Rs 8,00,000 and Raj : Rs 4,00,000. On 1^st April, 2016 Bhola extended a loan of Rs 1,00,000 to the firm. The net profit of the firm for the year ended 31^st March, 2017 before interest on Bhola's loan was Rs 3,06,000.
Prepare Profit and Loss Appropriation Account of Moli, Bhola and Raj for the year ended 31^st March, 2017 and their Current Accounts assuming that Bhola withdrew Rs 5,000 at the end of each month, Moli withdrew Rs 10,000 at the end of each quarter and Raj withdrew Rs 40,000 at the end of each half year. VIEW SOLUTION

X Ltd. invited applications for issuing 50,000 equity shares of Rs 10 each. The amount was payable as follows:

On Application	:	Rs 2 per share
On Allotment	:	Rs 2 per share
On First Call	:	Rs 3 per share
On Second and Final Call	:	Balance amount

Applications for 70,000 shares were received. Applications for 10,000 shares were rejected and the application money was refunded.
Shares were allotted to the remaining applicants on a pro-rata basis and excess money received with applications was transferred towards sums due on allotment and calls, if any.
Gopal, who applied for 600 shares, paid his entire share money with application. Ghosh, who had applied for 6,000 shares, failed to pay the allotment money and his shares were immediately forfeited. These forfeited shares were re-issued to Sultan for Rs 20,000; Rs 4 per share paid up. The first call money and the second and final call money was called and duly received.

Pass necessary journal entries for the above transactions in the books of X Ltd. Open Calls-in-Advance Account and Calls-in-Arrears Account wherever necessary.
A Ltd. invited applications for issuing 1,00,000 shares of Rs 10 each at a premium of Rs 1 per share. The amount was payable as follows:

On Application	:	Rs 3 per share
On Allotment	:	Rs 3 per share (including premium)
On First Call	:	Rs 3 per share
On Second and Final Call	:	Balance amount

Applications for 1,60,000 shares were received. Allotment was made on the following basis:

(i) To applicants for 90,000 shares	:	40,000 shares
(ii) To applicants for 50,000 shares	:	40,000 shares
(iii) To applicants for 20,000 shares	:	full shares

Excess money paid on application is to be adjusted against the amount due on allotment and calls.
Rishabh, a shareholder, who applied for 1,500 shares and belonged to category (ii), did not pay allotment, first and second and final call money.
Another shareholder, Sudha, who applied for 1,800 shares and belonged to category (i), did not pay the first and second and final call money.
All the shares of Rishabh and Sudha were forfeited and were subsequently re-issued at Rs 7 per share fully paid.

Pass the necessary journal entries in the books of A Ltd. Open Calls-in-Arrears Account and Calls-in-Advance Account wherever required.  VIEW SOLUTION