Accountancy 6 Marks Question

Pass the necessary journal entries for the issue of debentures for the following transactions:
i. Anand Ltd. issued 800, 9% Debentures of ₹ 500 each at a premium of 20%, to the vendors for machinery purchased from them costing ₹ 4,80,000.
ii. Dawar Ltd. issued 5,000, 7% Debentures of ₹ 200 each at a premium of 5%, redeemable at a premium of 10%.
iii. Novelty Ltd. issued 1,000, 8% Debentures of ₹ 100 each at a discount of 5%, redeemable at a premium of 10%.

Gita, Radha and Garv were partners in a firm sharing profits and losses in the ratio of 3 : 5 : 2. On 31st March, 2019, their balance sheet was as follows:

Balance Sheet of Gita, Radha & Garv as on 31st March, 2019
Liabilities	Amount (₹)	Assets	Amount (₹)
Sundry Creditors	60,000	Cash	50,000
General Reserve	40,000	Stock	80,000
Capitals :		Debtors	40,000
Gita 3,00,000		Investments	30,000
Radha 2,00,000		Buildings	5,00,000
Garv 1,00,000	6,00,000
	7,00,000		7,00,000

Radha retired on the above date and it was agreed that:
a. Goodwill of the firm be valued at ₹ 3,00,000 and Radha's share be adjusted through the capital accounts of Gita and Garv.
b. Stock was to be appreciated by 20%.
c. Buildings were found undervalued by ₹ 1,00,000.
d. Investments were sold for ₹ 34,000.
e. Capital of the new firm was fixed at ₹ 5,00,000 which will be in the new profit sharing ratio of the partners; the necessary adjustments for this purpose were to be made by opening current accounts of the partners.
Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of the reconstituted firm on Radha's retirement.

Akul, Bakul and Chandan were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31^st March 2023 their Balance Sheet was as follows:

Balance Sheet of Akul, Bakul and Chandan as on 31-3-2023
Liabilities		Amount(₹)	Assets		Amount (₹)
Sundry Creditors		45,000	Cash at Bank		42,000
Employees Provident Fund		13,000	Debtors	60,000
General reserve		20,000	Less: Provision for doubtful debts	(2,000)	58,000
Capitals:			Stock		80,000
Akul	1,60,000		Furniture		90,000
Bakul	1,20,000		Plant and Machinery		1,80,000
Chandan	92,000	3,72,000
		4,50,000			4,50,000

Bakul retired on the above date and it was agreed that:
i. Plant and Machinery was undervalued by 10%.
ii. Provision for doubtful debts was to be increased to 15% on debtors.
iii. Furniture was to be decreased to ₹ 87,000.
iv. Goodwill of the firm was valued at ₹ 3,00,000 and Bakul's share was to be adjusted through the capital accounts of Akul and Chandan.
v. Capital of the new firm was to be in the new profit sharing ratio of the continuing partners.
Prepare Revaluation account, Partners' Capital accounts and the Balance Sheet of the reconstituted firm.

Mohan and Mahesh were partners in a firm sharing profits in the ratio of 3 : 2. On 1^st April, 2012, they admitted Nusrat as a partner in the firm. The balance sheet of Mohan and Mahesh on that date was as under

Balance Sheet
as at 1st April, 2012
Liabilities		Amt(Rs)	Assets	Amt(Rs)
Creditors		2,10,000	Cash in Hand	1,40,000
Workmen's Compensation Fund		2,50,000	Debtors	1,60,000
General Reserve		1,60,000	Stock	1,20,000
Capital A/cs			Machinery	1,00,000
Mohan	1,00,000		Building	2,80,000
Mahesh	80,000	1,80,000
		8,00,000		8,00,000

It was agreed that
i. The value of building and stock be appreciated to Rs 3,80,000 and Rs 1,60,000 respectively.
ii. The liabilities of workmen's compensation fund was determined at Rs 2,30,000.
iii. Nusrat brought in her share of goodwill Rs 1,00,000 in cash.
iv. Nusrat was to bring further cash as would make her capital equal to 20% of the combined capital of Mohan and Mahesh after above revaluation and adjustments are carried out.
v. The future profit sharing ratio will be Mohan 2/5th, Mahesh 2/5th, Nusrat 1/5th. Prepare revaluation account, partners' capital accounts and balance sheet of the new firm. Also, show clearly the calculation of capital brought by Nusrat.

Anmol India Ltd. invited applications for issuing 1,20,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:

On Application	₹ 2 per share
On Allotment	₹ 5 per share (including premium)
On First and Final call	Balance

Applications for 1,50,000 shares were received. Shares were allotted to all the applicants on pro-rata basis. Excess money received on applications was adjusted towards sums due on allotment. All calls were made. Monu who had applied for 3,000 shares failed to pay the amount due on allotment and first and final call. Manav who was allotted 2,400 shares failed to pay the first and final call. Shares of both Monu and Manav were forfeited. The forfeited shares were reissued at ₹ 9 per share as fully paid-up. Pass necessary journal entries for the above transactions in the books of Anmol India Ltd.

On 1^st April 2023, Saniya Ltd. issued 30,000 Equity Shares of ₹ 10 each at a premium of ₹ 4 per share, payable as follows:
₹ 6 on application (including ₹ 1 premium),
₹ 2 on the allotment (including ₹ 1 premium),
₹ 3 on the first call (including ₹ 1 premium), and
₹ 3 on second and final call (including ₹ 1 premium).
Applications were received for 45,000 shares, of which applications for 9,000 shares were rejected and their money was refunded. Rest of the applicants were issued shares on pro rata basis. Harish, to whom 600 shares were allotted, did not pay the allotment money and his shares were forfeited after allotment. Manoj, who applied for 1,080 shares did not pay the two calls and his shares were forfeited.
1,200 forfeited shares were reissued as fully paid-up on receipt of ₹ 9 per share, the whole of Manoj's shares being included.
Prepare Cash Book and Pass necessary Journal entries. Also, show share capital in the Balance Sheet of the company.