Venkat Ltd made an issue of 10,000 equity shares of
Rs.100 each, payable Rs.20 on application, Rs.30 on allotment, Rs.30 on First
call and Rs.20 on final Call. All the shares are subscribed and amounts duly
received.
Pass journal entries to give
effect to these and also show the relevant items in the Balance Sheet.
2. Raju
Ltd was floated with an authorized capital consisting of Rs. 20,000, 9%
preference shares of Rs.100 each, payable Rs.25 per share on application, Rs.25
per share on allotment and Rs.50 per share on first and final call and Rs.3,00,000
equity shares of Rs.10 each, payable Rs.2 per share on application, Rs.3 per
share on allotment and Rs.5 per share first and final calls. All the money
received.
Make the
necessary entries in Journal and the Balance sheet of the company.
3. Rao
& Company Ltd issued 5000 equity shares of Rs.100 each at a premium of
Rs.40 per share, payable Rs.10 per share on application, Rs.60 per share on
allotment (including premium), Rs.30 on first call and balance on final call.
The shares were all subscribed and all money due was received expect the first
call money on 1000 shares and final call money on 1500 shares.
Give the Journal
Entries to record the above transactions.
4. Varun
Ltd. invited application for 1,00,000 shares of Rs.100 each at a discount of 6%
payable as follows:
On application Rs.25, on allotment
Rs.34 and on first and final call 35.
The applications received were for
90,000 shares and all of these were accepted. All money due was received except
the first and final call on 1,000 shares.
Pass necessary entries in journal of
the company also show how these transactions would appear in Balance sheet of
the company.
5. Lavanya
Ltd. Offered 1,00,000 equity shares of the nominal value 100 each for public
subscription at Rs.120. The amounts payable on the shares were on application
Rs.45, on allotment (including premium) Rs.45, on first and final call Rs.30.
The actual subscription was only for 90,000 shares. All money payable by
shareholders was received except from Kirshna Rao, who had taken 1000 shares
but failed to pay the final call. His shares were forfeited and re-issued to
Prashanth at Rs.60 each.
Show journal entries in the books of
the company.
6. The Sudhakar Ltd. purchases assets of
Rs.3,50,000 and took over the liabilities of Rs.30,000, it agreed to pay the
purchase price, Rs.3,30,000 by issuing debentures of Rs.100 each at a premium
of 10%.
Give
journal entries in the books of Sudhakar Ltd..
7. On
July 1, 1997 Motor Ltd., issued 10,000
6% Debentures of Rs.10 each at 95%, repayable on June 30, 2007 at par.
Rs.6 per debenture was payable on application and the balance on allotment.
Interest was payable on the full nominal amount as from September 1, 1997.
Applications were received for
15,000 debentures. All allotments were made proportionately, over subscriptions
being applied to the balance due on allotment, which took place on August 31,
1997. All sums due on allotment were received by September 14, 1997 .
Assuming that
the discount is to be written off evenly over the whole period, you are
required to draft journal entries to record (a) the issue of debentures, and
(b) The charges to the Profit and Loss Account for the year ended June 30, 1998.
8. Ramu
Ltd., issued 10,000 Debentures of Rs.100 each for subscription. The debenture
moneys are payable as follows:
Rs.30 on
application, Rs.40 on allotment, Rs.20 on first call and Rs.10 on second call.
A person who holds 200 Debentures fails to pay the amount due at the time of
allotment. He, however, pays this amount with the first call money. Another
person who is holding 400 Debentures, has paid all the calls in advance at the
time of allotment.
Give Journal
entries in the books of the company.
9. The
Radha Ltd. purchases assets Rs.3,60,000 and took over the liabilities of
Rs.35,000. It agreed to pay the purchase price, Rs.3,34,950 by issuing
debentures of Rs.100 each at a premium of 10% and Rs.65 by cash. The debentures
of the same company are quoted in the market at Rs.130.
Give journal
entries in the books of Radha Ltd..
10. The
Ashoka Ltd. purchases assets Rs.3,80,000 and took over the liabilities of
Rs.30,000 at an agreed value of Rs.3,33,000. The company issued debentures at
10% discount in full satisfaction of the purchase price.
Give
journal entries in the books of Ashoka Ltd..
11. Journalize
the following transactions at the time of issue and redemption of debentures:
in the books of Venkat Ltd.
a)
A debenture issued at Rs.95, repayable at Rs.100
b)
A debenture issued at Rs.95, repayable at Rs.105
c)
A debenture issued at Rs.100, repayable at Rs.105
d)
A debenture issued at Rs.105, repayable at Rs.100
Note: The Face value of each debenture is Rs.100
12. Krishna
Ltd. on 31st
December, 1996 redeemed Rs.10,000
6% debentures out of capital by drawing a lot. Similarly, the company on
31st December,
1997 redeemed Rs.15,000 6%
debentures out of profits by drawing a lot.
You are required
to pass journal entries in the books of the company.
13. X
Limited was registered with an authorized capital of Rs.50,00,000 divided in to
5,00,000 shares of Rs.10/- each . It issued 4,00,000 shares payable as under:
On application Rs.2, On allotment
Rs.3, On first call Rs.3, On final call Rs.2.
The public applied for 3,00,000
shares, these were allotted. All the money due on allotment and call was
received accept the first call on 10,000 shares and final call on 15,000
shares.
Pass general entries and prepare
opening balance sheet.
14. Reddy
Limited issued 5,000 equity shares of Rs.10/- at a premium of Rs.2 per share,
payable Rs.2 on application, Rs.5 on allotment (including premium), Rs.3 on
first call and balance on final call. The share were all subscribed and amount
received on calls except the first call on 1,000 shares and final call 1,500
shares.
Give cash book, general entries for
the above transactions and also prepare its opening balance sheet.
15. Y
Company Ltd. issued at par Rs.60,00,000 (7%) debentures in bonds of Rs.1,000
each, payable 20% on application, 20% on allotment, 30% on first call and
balance one month thereafter. Except the allotment money on 400 bonds and call
money on 600 bonds which were in arrears, all the money was duly received.
Make the cash book and journal
entries; and show ledger accounts.
16. On
1st April, 1993, Geeta Products Ltd. issued Debenture for
Rs.1,00,000, redeemable at par at the end of the 5 years and its was resolved
that a Sinking Fund should be formed and invested in tax-free securities.
Give Journal Entries for 5 years,
assuming that the interest received on the investment was at the rate of 5
percent on cost, that the interest was received yearly and immediately invested
and that the investments were realized at a loss of Rs.300 at the end of five
years.
Reference to the Sinking Funds Table
shows that Rs.0.180975 invested at the end of the year, at 5% compound interest
will produce Rs.1 at the end of 5 years.
17. The following is the Balance Sheet on 31st March 1992
of Mr. A.
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
Creditors
A’s Capital
|
3,000
13,500
|
Cash
Debtors
Stock
Furniture
Premises
Investments
|
500
4,000
5,000
750
6,000
250
|
|
16,500
|
16,500
|
He decided
to admit a partner and it is arranged that the partner shall join on the above
Balance Sheet subject to the following modifications:
i) 5%
reserve for bad debts is to be provided
on Debtors,
ii) Stock
to be taken at Rs.4,500,
iii)
Furniture is to be taken at Rs.500,
iv)
Premises to be taken at Rs.7,000,
v) Cash
and investments not to be taken over by the partnership.
Make the
Journal entries and prepare the balance sheet giving effect to the
modifications.
18. The Balance sheet of
MN is given as follows:
|
Particulars
|
Rs.
|
Particulars
|
Rs.
|
|
M Capital a/c
N Capital a/c
Bank Loan
Sundry Creditors
|
30,000
20,000
10,000
20,000
|
Cash
Debtors
Furniture
Machinery
|
10,000
20,000
10,000
40,000
|
|
|
80,000
|
|
80,000
|
The partners want to dissolve the
firm.
Machinery
realized only 50% of the book value. There are bad debts to the extent of
Rs.5,000.
Pass the
Journal entries and prepare realization and capital accounts of M and N.
19. A
& B shared in proportions of 3 and 2 with capitals of Rs.20,000 and Rs.15,000
respectively. They agree to admit C into partnership as from 1st January, 1992
on the following terms for a third share in future profits:
a)
That C should bring in Rs.20,000
b)
That as C is unable to bring this share of goodwill in
cash, the goodwill of the firm be valued at Rs.15,000 and a goodwill account be
raised and written off in the firm’s books.
Set out
the journal entries required, the capital accounts of the partners, the
goodwill account and state the future profit sharing proportion of the partners.
20. A
and B are partners sharing profits in the ratio of 3 : 2. C is admitted and the
new profit sharing ratio is 2 : 2 : 1. C brings in cash Rs.8,000 for capital
and Rs.2,000 for goodwill. The balance sheet of A and B is as follows:
Rs.
Rs.
Capitals:
A 8,000 Good will 2,500
B 8,000 Assets 17,500
Reserve
Fund 4,000 . .
20,000 20,000
Give
journal entries and prepare balance sheet of the new firm.
21. A
and B are equal partners in a firm. They decided to admit C as a new partner
and Re-adjust the Balance Sheet values for this purpose. The Balance Sheet of A
and B on 31st
Dec., 1989 was as under:
Rs. Rs.
Creditors 1,000 Cash 600
Bills Payable 1,000 Debtors
1,500
Reserve Fund 400 Stock 1,400
A’s Capital 1,500 Furniture 400
B’s Capital 1,000 Machinery
1,000
4,900 4,900
The following adjustments were to be
made before C’s admission:
(a) Rs.300 were to be provided for
doubtful debts, (b) furniture was valued Rs.250, c) investment worth Rs.400
(not mentioned in the Balance Sheet) were to be taken into account d) C brings
Rs.1,000 for capital and Rs.1000 for goodwill which sum A and B withdrew in
their proportion.
Give i)
Journal Entries, ii) Revaluation Account, and iii) Balance Sheet of the new
Firm.
22. A
& B are Partners in a firm sharing profits and losses as 5 : 3. The
position of the firm as on 31st March, 1992 was as follows:
Rs. Rs.
Capital Accounts: Plant
and Machinery 40,000
A
30,000 Stock
30,000
B 20,000 50,000 Sundry
Debtors 20,000
Sundry Creditors 15,000 Bills
receivable 10,000
Bank Overdraft 42,500 Cash at Bank 7,500
4,900 4,900
C now joins them
on condition that he will share ¾th of the future profits, the balance of
profits being shared by A and B as 5 : 3. He introduces Rs. 40,000 by way of
capital and further Rs. 4,000 by way of premium for goodwill. He also provides
loans to the firm to pay off bank overdraft. A and B to depreciate Plant by 10%
and to raise a premium for Doubtful Debts against sundry debtors @5%.
You are asked to
journalize the entries in the books of the firm and show the resultant Balance
sheet.
23. The
following is the balance sheet of A and B as at 31st December, 1989 .
Rs. Rs.
Creditors 20,000 Cash at Bank 10,000
Capital:
Sundry
Assets 20,000
A 25,000
B 20,000 .
65,000 65,000
The Partners shared profits and
losses in the ratio of 3 : 2. On the above date C was admitted as a Partner on
the condition that he would pay Rs.20,000 as capital. Goodwill was to be valued
at 3 year’s purchase of the average of four year’s profits which were:
1986 Rs. 9,000 1988
Rs. 12,000
1987 Rs.
14,000 1989 Rs. 13,000
The
new profit sharing ratio is 7 : 5 : 4.
Give journal
entries, ledger accounts and Balance Sheets if goodwill is raised and written
off.
24.
Pratap had the following balance sheet as on 1st
July:
Liabilities and Capital Rs. Assets and Property Rs.
Sundry Creditors 2,500 Cash in hand 400
Bills payable 1,000 Cash at bank 13,600
Outstanding Expenses 500 Sundry Debtors 29,000
Pratap’s Capital 1,00,000 Stock in Trade 17,000
Investments
11,000
Furniture
1,000
Motor
Lorry 9,500
Plant
and Machinery 13,400
. Land and Buildings 9,100
1,04,000 1,04,000
Pratap decided to admit Shiva as his
working partner and the following terms were agreed upon between them:
a)
Shiva would bring Rs.10,000 as his Capital, and pay
Rs.8,000 as premium for one-fifth share in the business.
b) The
assets should be revalued as follows:
Stock less
10 percent investments at Rs.10,000, furniture, motor lorry, plant and
machinery less 5% and Land and – Buildings at Rs.15,000.
c) A
provision for doubtful debts to be created at 5% of sundry debtors.
Assuming
that the above agreement was duly carried out, show the necessary journal
entries to record the above adjustment and prepare the balance sheet of the
firm after the admission of Shiva.
25. A,
B and C are partners sharing profit and losses in the ratio of 3 : 2 : 1. C
retires from the firm and A and B decide to continue the business of the firm
and share profits and losses in the ratio of 5 : 3. Goodwill of the firm is
valued at Rs.12,000.
If goodwill is raised at full value
and its value is written back to the capital accounts of the continuing
partners.
Write the
necessary journal entries and ledger accounts.
26. A,
B and C are three partners sharing profit and losses in the ratio of 4 : 3 :2.
B retires and the goodwill of the firm is valued at Rs.5400. No goodwill
appears as yet in the books of the firm. A and C decide to share profits in the
future in ratio of 5 : 3 and that no goodwill account will be raised in the
books of the firm.
Pass Journal entries.
27. A,
B and C are equal partners. B retires, his share of goodwill is Rs.9,000. The
remaining partners have decided to continue the business sharing profit in the
ratio of 3 : 2. Goodwill is not to be shown in the Balance Sheet.
Pass
Journal Entries.
28. A
and B are partners in a business sharing profits and losses as A 3/5ths and B
2/5ths. Their Balance Sheet as on 1st January 1991 is given below:
Capital: A 20,000 Machinery
19,500
B 15,000 35,000 Stock
16,000
Reserve 15,000 Debtors 15,000
Sundry Creditors 7,500 Cash at Bank 6,000
Cash
in hand 1,000
. .
57,500 57,500
B decides
to retire from the business owing to illness and A takes it over and the
following revolutions are made:
a)
Goodwill of the firm is valued at Rs.15,000.
b) Depreciate
Machinery by 7.5% and stock by 15%
c) A
Bad Debts provision is raised against Debtors at 5% and a Discount Reserve
against Creditors at 2.5%.
Journalize
the above transactions in the books of the firm, prepare ledger accounts and
the Balance Sheet of A.
29. Basu and Das are Partners sharing profits
and losses equally. On 30th June 1990 their Balance Sheet was as
under:
Rs. Rs.
Sundry Creditors 39,800 Freehold: Premises 26,000
Capitals: Machinery 42,000
Basu 45,000 Stock 12,000
Das 36,000 Sundry Debtors 38,000 . Bank Balance 2,800
1,20,800
1,20,800
It is agreed that Basu will
retire as from 30th
June 1990 and that Das will take over the business on the following
terms:
a)
Goodwill of the firm to be valued at Rs.11,000.
b)
Stock to be agreed as worth Rs.10,000.
c)
A Provision for doubtful debts to be carried at 2
percent.
d)
Basu to be paid out as to Rs.20,000 of the amount found
to be due to him by a loan taken at 9 percent and as to the balance by a bill
of exchange payable after 12 months.
Show
journal entries to record the above transactions and also the Balance Sheet of
Das after the adjustments have been made.
30. A,
B and C were carrying on business in partnership, sharing profits and losses in
the ratio of 3 : 2 : 1 respectively. On 31st December, 1990 Balance
Sheet of the firm stood as follows:
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
Sundry Creditors
Capital Accounts:
A 15,000
B 10,000
C 10,000
|
13,590
35,000
|
Cash
Debtors
Stock
Buildings
|
5,900
8,000
11,690
23,000
|
|
48,590
|
48,590
|
B retired on the above mentioned data and
the following terms:
i) Buildings be
appreciated by Rs.7,000, ii) Provision for bad debts be made @5% on Debtors. iii) Goodwill of the firm be valued,
at Rs.9,000 and adjustment in this respect be made without raising Goodwill
Account, iv) Rs.5,000 be paid to B
immediately and the balance due to him be treated as a loan carrying interest
@6%. Per annum. A and C decided to share-profits. In the ratio of 2 : 1.
Pass
Journal entries to record the above mentioned transactions, and the balance
sheet of the firm as it would appear immediately after B’s retirement.
.
31. Kishore
and Nakul are partners sharing profits and losses equally. Their Balance sheet
on 30th
November, 1990 is as follows:
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
Creditors
Bills Payable
Kishore’s Loan
Reserve Fund
Capital Accounts:
Kishore 15,000
Nakul 20,000
|
11,200
1,800
5,000
6,000
35,000
|
Cash
Stock
Debtors 13,800
Less: Provision 1,400
Furniture
Plant and Machinery
|
3,500
17,800
12,400
2,800
22,500
|
|
59,000
|
59,000
|
They decide to
dissolve the firm. The assets realized as follows:
Stock 18,200
Debtors 10,600
Furniture 1,800
Plant and Machinery 19,000
Credit
allowed a discount of 2% and expenses of realization amounted to Rs.554. Give
journal entries and the necessary ledger accounts to close the books of the
firm.
32. The
Balance Sheet of A, B and C sharing profits and losses as 3 : 2 : 1
respectively stood as follows on 30th June, 1990 (figures are in
Rs.):
Creditors 50,400 Cash at Bank 3,700
Joint Life Policy Reserve 10,000 Stock
20,100
Reserve Fund 12,000 Debtors 62,600
Capital Accounts: Investments
16,000
A 30,000 Furniture 6,500
B 20,000 Buildings 23,500
C 10,000
60,000
.
1,32,400
1,32,400
The firm was dissolved as on that date. For the
purpose of dissolution, the investments were valued at Rs.18,000 and stock at
Rs.17,500. A agreed to take over the investments and B to takeover the stock. C
took over the furniture at book value. Debtors and Building realized Rs.57,000
and Rs.25,000 respectively. Expenses of realization amounted to Rs.450. in
addition one bill for Rs.500 under discount was dishonored and had to be taken
up by the firm.
Give
journal entries and the necessary ledger accounts to close the books of the
firm.
33. A, B are Partners in
a business. Sharing profit and losses in ration of 3 : 2.
Particulars Amount
Rs. Amount Rs.
Capital: A 65,000
B 40,000
Drawings: A 4,000
B 3,000
Goodwill 40,000
Sales 1,60,000
Debit, Credit 40,500 2,500
Returns 1,500
B/p 8,900
Furniture 5,000
Purchases 85,000
Rent 4,250
Advertisement 9,000
Op. stock 11,500
Cash 16,000
Wages 14,000
Salaries 12,750
Printing 740
Commission 7,000
Carriage 5,800
Building 20,860
Plant 10,000 .
2,90,000 2,90,000
Additional
Information:
1) Depreciation on furniture Rs.250, Plant 10%,
Building 20%
2) Provision for doubtful debts 5%.
3) Interest on capital 5%.
4)
B salary Rs.1,800 payable.
5) Closing Stock 12,500.
Prepare final
accounts the firm.
34. (Debtors
methods): A head office in Bombay has a branch
in Hyderabad
Stock
on 1st January,
2005 (at Invoice Price) 1,25,000
Debtors
on 1st January,
2005 1,20,000
Goods
invoiced from Head office 4,00,000
Remittances
by Branch to Head office
Cash
sales 1,60,000
Cash
received from debtors 2,95,000 4,55,000
Goods
returned to head office (at invoice price) 25,000
Cheques
remitted to Branch:
Salaries
1,10,000
Rent
& Taxes 30,000
Sundry
expenses 5,000 1,45,000
Stock
on 31st
December, 2005 1,50,000
Debtors
on 31st
December, 2005 2,25,000
35. (Stock
and Debtors method) Praveen Ltd. Has a branch at Pune. Goods were invoiced at
selling price which was fixed by adding 25% to the cost. From the following
information relating to the year 2005 ascertain the profit or loss made in the
year 2005 by Stock and Debtors system:
Rs. Rs.
Stock
at invoice Cash
Sales 90,000
price on 1-1-2005 20,000 Credit sales 1,85,000
Goods
sent to Branch Cash
remitted to Branch
during the year 2005 for expenses:
at invoice price 3,00,000 Rent 2,400
Discount
allowed to Salaries
5,600
customers 5,000 General
Expenses 2,000 10,000
Cash
received from Goods
returned
customers 1,40,000 by Customers 6,000
Stock
at invoice price on Debtors
on 1-1-2005 10,000
31-12-2005
50,000
There
was shortage of Rs.1,000 when Branch stock was physically verified.
36. (Admission):
Azib and Omar are partners sharing profits in the ratio of 2 :1. Their
Balance Sheet on 1st April 2009 is as under:
Liabilities Rs. Assets Rs.
Creditors
2,50,000 Cash at Bank 1,50,000
General
Reserve 1,50,000 Stock & Debtors 1,50,000
Capitals:
Furniture
1,00,000
Azib 4,00,000 Land and Building 6,00,000
Omar 2,00,000 .
10,00,000
10,00,000
They admit Sohail as partner giving
him ¼ share. Sohail brings in Rs.2,00,000 as his capital. Goodwill is valued at
Rs.1,50,000 and will remain in the books. Land and buildings are to be
appreciated by 25% and Furniture is to be written down by Rs.20,000. A provision
of Rs.10,000 is to be made for outstanding expenses. Record the transactions in
any accounting software and generate the Balance Sheet after the process of
admission is complete.
37. On
1st April, 2009
Preksha Ltd. Offered 2,00,000 equity shares of Rs.10 each to the public at a
premium of Rs.2 per. The Payment was to be made as follows:
On application: Rs.5, on Allotment
Rs.4 (including premium) and balance on call.
On April 2009, when the issue was
closed, the company received applications totaling 3,50,000 shares, of which
applications for Rs.50,000 shares were rejected by their banker, SBI, on
technical grounds of the valid 3,00,000applications, retail investors applying
for 1,00,000 shares received allotment in full, while the balance 1,00,000
shares were allotted to institutional investors in the rate of 1 : 2. The
allotment process was completed on 15th May 2009 and the directors
made the call exactly a month later in 15th June, 2009. One
shareholder, Mr.Nikhil, holding 5000 shares, did not pay the call money. After
the notice, on 4th September 2009, these shares were forfeited and
re-issued to Mr. Sandeep at Rs.6 per share.
Pass necessary entries to reflect
the above transactions of Preksha Ltd.
38. Mamta
Ltd. Issues 25,000 6% Debentures of
Rs.100 each on 1st
January 2005 , payable at a discount of 5% but repayable at the end
of 4 years at a premium of 5%. A sinking fund will be instituted for the
purpose investments are expected to earn 4% net. Sinking Fund tables show that
an annual installment of Rs.0.23549 every year at 4% interest will taken Re.1
at the end of 4 years. Investments are made in nearest multiples of Rs.1,000.
On 31st December 2008 ,
the investments realized Rs.18,58,000. The bank balance as on that date was
Rs.8,35,000. The Debentures were paid off is full.
Show how the
above transactions.
39. Manaank
Ltd. Issued 10 Lakh equity shares of Rs.10 each. The whole issue was
underwritten by three booking firms, namely Merry Line (ML), Layman Bros (LB)
and More gun chase (MC) as under:
ML: 40%, LB: 30%, Mc:
30%
8 Lakh applications were received,
of which 2 Laksh applications had the stamp of ML, 1Lakh had to stamp of LB and
another 2 Lakhs had the stamp of MC, It was decided to adjust the unmarked
applications in the ratio of Gross Liability after deducting the marked
applications. A commission of 2% is payable to the Brokers.
Show the calculation of Net Liability
and record the Transactions is appropriate books.
40. A
Trading Firm has a Retail Branch, which is supplied with goods from the Head
Office and which keeps its own sales ledger and remits all cash received daily
to the Head Office, the Branch expenses being paid by the Head Office by weekly
cheques.
From the
following particulars draw up the Branch Account as they would appear in the Head Office Books for the six
months ending 31st December 2008:
Rs.
Six Month’s
Credit Sales 2,485
Cash Sales 1,460
Returns Inward 30
Cash Received on
Ledger Accounts 2,387
Debtors on
1.7.2008 1,345
Stock on
1.7.2008 840
Stock on
31.12.2008 1,280
Goods received
from Head Office 2,276
Bad Debts at the
Branch 65
Wages and Sundry
Expenses 415
Rent, Rates and
Taxes 402
41. From
the following particulars, prepare Branch Account showing profit or loss of the
Branch:
Opening Stock at
the Branch :Rs.30,000
Goods sent to
Branch :Rs.90,000
Sales (Cash) :Rs.1,20,000
Salaries :Rs.10,000
Other Expenses :Rs.4,000
Closing Stock
could not be ascertained but it is known that the Branch usually sells at cost
plus 20%. The Branch Manager is entitled to a commission of 5% on the profit of
the Branch before charging such commission.
42. Sumana
Limited invoices goods to their various Branches at cost and the Branches sell
for cash as well as on credit. From the following particulars, prepare the
Branch Stock Account, Branch Debtors Account, Goods Sent to Branch Account,
Branch Cash Account, Branch Expenses Account and Branch Profit and Loss Account
in the Books of Head Office:
|
Particulars
|
Rs.
|
|
Stock on 1st January
Stock on 31st
December
Debtors on 1st
January
Debtors on 31st
December
Cash on 1st January
Goods sent to Branch
Goods returned by Branch
Cash sales
Credit sales
Allowance to customers
Bad Debts
Returns from customers
Remittance by Branch
Wages and Salaries
Rent and Taxes
Normal Loss of goods due to
wastage
Abnormal Loss due to pilferage
Cash remitted to Branch
|
10,000
8,000
14,000
15,000
400
30,000
2,000
30,000
25,000
400
600
1,000
46,000
4,000
2,000
500
1,500
4,500
|
43. Dynamic
Ltd. issued 10,000 shares of Rs.10 each at a discount of Rs.1 per share. The
other details are as follows:
On Application
Rs.2, On Allotment Rs.2, On First and Final Call Rs.5. Discount is to be
adjusted on allotment. All the money is received except from Mr. Ravi, who had
been allotted 100 shares, failed to pay the first and final call amount and his
shares have been forfeited.
Journalize the
above transactions relating to the forfeiture of the shares.
44. X
and Y were partners in a firm sharing profits in the ratio of 3:2. On 1.1.2001
their fixed capitals were Rs.3,00,000 and Rs.2,50,000 respectively. On 1.7.2001
they decided that their total capital (fixed) should be Rs.6,00,000 in their
profit sharing ratio. Accordingly, they introduced extra or withdrew excess
capital. The partnership deed provided for the following:
(i) Interest on Capital @12% p.a.
(ii) Interest on
Drawings @18% p.a.
(iii) A monthly
salary of Rs.2,000 to X and a monthly salary of Rs.1,500 to Y. The drawings of
X and Y during the year was as follows:
|
Year 2001
|
X (Rs.)
|
Y (Rs.)
|
|
June 30
September 30
|
20,000
20,000
|
15,000
25,000
|
During the year
ended 31.12.2001 the firm earned a net profit of Rs.1,50,000. 10% of this
profit was to be transferred to general reserve.
You are required
to prepare: (i) Profit and Loss Appropriation Account (ii) Partner’s Capital
Accounts and (iii) Partner’s Current Accounts.
45. X
and Y are partners sharing profits and losses equally. It has been agreed that
if a partner retires, the other partner, should be desired to carry on the
business, shall pay to the retiring partner his share by four equal half-yearly
installments adding interest @5% p.a. with half-yearly rests. Goodwill is to be
valued on the basis of five year’s capitalization of the average annual super
profits of three preceding financial years, fixed assets being revalued for the
purpose. The balance sheet of the firm as at 31.12.2002 was as follows:
|
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
Creditors
X’s Capital Account
Y’s Capital Account
|
9,160
22,420
16,650
|
Cash in Hand
Book-debts
Stock
Building
|
13,000
10,200
5,730
19,300
|
|
|
48,230
|
|
48,230
|
Y retires on
1.1.2003 and X decides to carry on the business. The profits for the three
years ended 31st December were Rs.13,500; Rs.14,500 and Rs.14,000.
For the purpose of dissolution, building has been revalued at Rs.24,800. No
interest on capital was charged and partners did not draw any salary.
Show the
computation of value of Goodwill and prepare Y’s Loan Account. Assume that
normal management remuneration is Rs.6,000 p.a. and normal return on capital is
12%.
46. Brick,
Sand and Cement were partners in a firm sharing profits and losses in the ratio
of 3:2:1 respectively. Following is their balance sheet as on 31.12.2004:
|
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
Brick Capital Account
Sand Capital Account
Cement Capital Account
Reserve
Creditors
|
30,000
20,000
10,000
29,800
10,200
|
Land and Building
Furniture
Stock
Debtors
Cash and Bank
|
50,000
15,000
20,000
12,500
2,500
|
Lime is to be
admitted as a partner with effect from 1st January 2005, on the
following terms:
(i) Lime will bring
Rs.15,000 as capital and Rs.12,000 as premium for goodwill. Half of the goodwill will
be withdrawn by the partners.
(ii) Lime will be
entitled to 1/6th share in the profits of the firm.
(iii)
The
assets will be revalued as: Land and Buildings Rs.56,000, Furniture Rs.12,000,
Stock Rs.16,000, Debtors Rs.7,000.
(iv)The claim for a
creditor for Rs.2,300 is paid at Rs.2,000.
(v) Half of the
Reserve is to be withdrawn by the partners.
Prepare the
Opening Balance Sheet of the New Firm.
47. Asha
Limited had issued Rs.2,00,000, 10% debentures on which interest was payable
half-yearly on 30th September and 31st March.
Show the necessary journal entries
relating to debenture interest for the year ended 31st March, 2007
assuming that all moneys were duly paid by the company. Tax deducted at source
is 10%.
48. Vardan
Limited issued 10% Debentures of Rs.6,00,000 with a condition that they should
be redeemed after 3 years at 10% premium. The amount set aside for the
redemption of debenture is invested in 5% Government Securities. The sinking
fund table shows that 0.31720855 at 5% compound interest in three years will
become Re.1.
You are required
to give Journal entries for recording the transactions.
49. Meenakshi
Limited issued on 1st
April 2004 1,000, 12% Debentures of Rs.100 each repayable at the
end of 3 years at a premium of 5%. It was decided to create a sinking fund for
the redemption of debentures. The investments are expected to earn interest at
5% p.a.
Reference to the
sinking fund table shows that Rs.0.317209 invested at 5% p.a. amounts to Re.1
at the end of three years. At the end of three years, the investments were sold
at Rs.70,000 and the debentures were redeemed.
Prepare
Debentures Account, Sinking Fund Account and Sinking Fund Investment Account.
50. Sri
Vaihbava Publications Ltd. Invited applications for 10,000 shares of Rs.10 each
the details are give as follows:
On Application
Rs.2, On Allotment Rs.3, On First and Final Call Rs.5. The public applied for
10,000 shares and they were allotted.
Show the
vouchers of the above transaction.
