Accountancy 6 Marks Question

Ravi Ltd. acquired running business of Amit Ltd. having assets of ₹ 10,00,000 and liabilities of ₹ 2,50,000. 9% Debentures of ₹ 100 each were issued for the acquisition of business at a premium of ₹ 20 per debenture. The company issued 10,000,8% Debentures of ₹ 100 each redeemable at premium of ₹ 20 per debenture after 5 years. You are required to pass the Journal entries for the above transactions.

Prem, Kumar and Aarti were partners sharing profits in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31^st March, 2019 was as under:

Balance Sheet of Prem, Kumar and Aarti
as at 31st March, 2019
Liabilities		₹	Assets	₹
Capitals:			Building	25,000
Prem	30,000		Plant and Machinery	15,000
Kumar	20,000		Investments	10,000
Aarti	20,000	70,000	Debtors	10,000
General Reserve		8,000	Stock	5,000
Investment Fluctuation Reserve		2,000	Cash	25,000
Sundry Creditors		10,000
		90,000		90,000

On the above date, Kumar retired. The terms of retirement were:
i. Kumar sold his share of goodwill to Prem for ₹ 8,000 and to Aarti for ₹ 4,000
ii. Stock was found to be undervalued by ₹ 1,000 and building by ₹ 7,000
iii. Investments were sold for ₹ 11,000.
iv. There was an unrecorded creditor of ₹ 7,000.
v. An amount of ₹ 30,000 was paid to Kumar in cash which was contributed by Prem and Aarti in the ratio of 2 : 1. The balance amount of Kumar was settled by accepting a Bill of Exchange in favour of Kumar.
Prepare the Revaluation Account, Capital Accounts of partners and the Balance Sheet of the reconstituted firm.

Following was the Balance Sheet of A and B who sharing profits in 2 : 1 as at 31st March, 2021

Balance Sheet
Liabilities		Rs.	Assets	Rs.
Creditors		32,950	Cash	600
Capitals:			Debtors	4850
A	15,000		Stock	10,000
B	10,000	25,000	Machinery	17,500
			Building	25,000
		57,950		57,950

C admitted as a partner on the following terms:
a. C was to bring in Rs.7,500 as capital and Rs. 3,000 as his 1/4th share of goodwill.
b. Stock and Machinery were to be reduced by 5%.
c. A provision was to be created in respect of Debtors Rs. 375.
d. Building was to be appreciated by 10%.
Prepare Revaluation Account, Capital Account and Balance Sheet after admission.

i. Sonu Ltd., forfeited 800 shares of ₹ 10 each, ₹ 7.50 paid, for non-payment of Final Call of ₹ 2.50 per share. Out of these, 600 shares were re-issued as fully paid up in such a way that ₹ 2,100 were transferred to capital reserve. Pass necessary journal entries.
ii. X Ltd., forfeited 800 shares of ₹ 10 each, ₹ 7.50 called-up, for non-payment of First Call of ₹ 2.50 per share. Out of these, 600 shares were re-issued for ₹ 6 per share as ₹ 7.50 paid up. Pass necessary journal entries.
iii. 400 shares of ₹ 10, on which ₹ 8 has been called and ₹ 6 has been paid, are forfeited. Out of these, 300 are re-issued for ₹ 7 as fully paid. Pass necessary journal entries.

Prakash Engineering Company issued for public subscription 40,000 Equity shares of Rs 10 each at a premium of Rs 2 per share, payable as: on application Rs 2 per share on allotment Rs 5 per share (including premium)
on first call Rs 2 per share
on final call Rs 3 per share
Applications were received for 75,000 Equity Shares. The shares were allotted on prorata basis to the applicants of 60,000 shares only, remaining applications being rejected. Money overpaid on an application was utilised towards the sum due on allotment.
Ashok to whom 3,000 shares were allotted failed to pay the allotment money and the two calls. Baneet who applied for 3,000 shares paid the calls money along with allotment money. Pass journal entries to record the above transactions.