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General instructions:-
PART – A
(Not for Profit Organizations, Partnership Firms and Company Accounts)
2. List any two items appearing on the debit side of a partner’s current account. 1
7 .X, Y and Z are partners sharing profits and losses in the ratio of 3:2:1. After the final accounts have been
prepared, it was discovered that interest on drawings @ 5% p.a. had not been taken into consideration. The
drawings of the Partners were: X Rs. 15,000; Y Rs. 12,600; Z Rs. 12,000. Give the necessary adjusting journal 4
8 A, B and C are partners sharing profits and losses in the ratio of 5:4:1. It was decided that with effect from
1st January 2002 the profit sharing ratio will be 9:6:5. Goodwill is to be valued at 2 year’s purchase of average of
3 year’s profits. The profits for 1999, 2000 and 2001 were Rs. 48,000, Rs. 42,000 and Rs. 60,000 respectively.
Pass the necessary journal entry for the treatment of goodwill without opening Goodwill Account. 4
9 .Raghav Limited purchased a running business from Krishna Traders for a sum of Rs. 15,00,000,
payable Rs. 3,00,000 by cheque and for the balance issued 9% Debentures of Rs. 100 each at par.
The assets and liabilities consisted of the following:
Plant and Machinery 4,00,000
Buildings 6,00,000
Stock 5,00,000
Sundry Debtors 3,00,000
Sundry Creditors 2,00,000
Record necessary journal entries in the books of Raghav Limited. 4
10. X Ltd. Redeemed 5,000, 12% Debentures of Rs. 100 each which were issued at 94 by converting them into
equity shares of Rs. 100 each at 25% premium. Priya Ltd. Redeemed 4,000, 12% Debentures of Rs. 100 each
which were issued at a discount of 5% by converting them into equity shares of Rs. 10 each issued at a discount of
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5%. Journalise the above transactions, assuming that the debentures were converted at the option of the debenture
holders before the date of redemption. 6
11 (A). Give the provision of Section 78 of Company Act 1956.
(B) A company forfeited 200 shares of Rs. 10 each fully called up issued at 10% discount on which Rs. 3 per
share was received with application. Amount required to be paid was Rs. 2 on allotment, Rs. 2 on first call and
Rs. 2 on final call. Out of these, 100 shares were re-issued to Mr. M as fully paid shares at Rs. 8 per share.
Give journal entries relating to forfeiture and re-issue. 3+3=6
12 .Receipts and Payments Account of Shankar Sports Club is given below, for the year ended December
31,2006.
Receipts Rs. Payments Rs.
To Opening Cash in Hand 2.600 By Rent 18,000
To Entrance Fees 3,200 By Wages 7,000
To Donation for Building 23,000 By Billiard Table 14,00
To locker Rent 1,200 By Furniture 10,000
To Life Membership fee 7,000 By Interest 2,000
To Profit from Entertainment 3,000 By postage 1,000
To subscription 40,000 By Salary 24,000
By Balance c/d 4,000
80,000 80,000
Prepare Income and Expenditure Account and Balance Sheet with help pf following information:
Subscription outstanding on 31st December 2005 is Rs. 1,200 and Rs. 2,300 on 31.12.2006. Opening stock of
postage stamps is Rs. 300 and closing stock is Rs. 200. Rent Rs. 1,500 related to 2005 and Rs. 1,500 is still
unpaid.
On January 1, 2006 the club owned furniture Rs. 15,000. Furniture valued at Rs. 22,500.
On January 1,2006, the club took a loan of Rs. 20,000 @ 10%p.a.) in 2005. 6
.
13 Given below is the Balance Sheet of Krishna & Suresh who are partners in a firm sharing profits in the
ratio of 3:2.
Creditors 15,000 Plant & Machinery 30,000
Reserves 5,000 Patents 5,000
Capital Accounts: Furniture 3,000
Krishna 30,000 Stock 16,000
Suresh 20,000 50,000 Debtors 15,000
Cash 1,000
70,000 70,000
On that date Mohan is admitted as a partner for 1/5the share on the following terms:
a) He is to contribute Rs. 14,000 as his share of capital which includes his share of premium for goodwill.
b) Goodwill is valued at 2 years’ purchase of the average profits of the last 4 years, which were Rs. 10,000;
Rs. 9,000; Rs. 8,000 and Rs. 13,000 respectively.
c) Plant to be written down to Rs. 25,000 and patents written up by Rs. 8,000.
d) A joint life policy taken in the names of the partners for Rs. 50,000 on which premiums have been paid, has
a surrender value of Rs. 7,000.
Prepare the Revaluation Account, Partners; Capital Accounts and the Balance Sheet of the new firm. 6
14 Dhanraj Ltd. Issued 25,000 Equity Shares of Rs. 20 each, at a discount of 10% payable as follows:
On Application Rs. 5 per share
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OR
AB Ltd. Invited applications for 1,00,000 Equity Shares of Rs. 10 each, payable as Rs.2 on application, Rs. 3 on
allotment and the balance on first and final call. Applications were received for 3,00,000 shares and the shares
were allotted on a pro rata basis. The excess application money was to be adjusted against allotment only. M, a
shareholder, who had applied for 3,000 shares, failed to pay the call money and his shares were accordingly
forfeited and reissued at Rs. 8 per share as fully paid. Give the necessary journal entries. 8
16 The following is the balance sheet of A, B and C sharing profits and losses in proportion of 6:5:3
PART (B)
22 . From the following particulars of a company, calculate Total Assets to Debt Ratio and Current Ratio:
Share Capital 25,00,000
General Reserves 5,00,000
Total Debt 16,00,000
Current Liabilities 6,00,000
Fixed Assets 31,00,000 4
23 From the following Balance Sheets of Abha Ltd. Prepare a Cash Flow Statement:
Additional Information: A piece of machinery costing Rs. 40,000 on which accumulated depreciation was Rs.
10,000 was sold for Rs. 25,000. ` 6
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