Accountancy 4 Marks Question

Anju, Manju and Sanju sharing profit in the ratio of 3 : 1 : 1 decided to dissolve their firm. On March 31, 2014 their position was as follows:

Balance Sheet Anju, Manju and Sanju
as on March 31, 2017
Liabilities		Amount ₹	Assets		Amount ₹
Creditors		60,000	Cash at Bank		55,000
Loan		15,000	Stock		83,000
Capitals:			Furniture		12,000
Anju	2,75,000		Debtors	2,42,000
Manju	1,10,000		Less: Provision for doubtful debts	12,000	2,30,000
Sanju	1,00,000	4,85,000	Buildings		2,00,000
Manju's loan		20,000
		5,80,000			5,80,000

It is agreed that:
i. Anju takes over the Furniture at ₹ 10,000 and Debtors amounting to ₹ 2,00,000 at ₹ 1,85,000. Anju also agrees to pay the creditors,
ii. Manju is to take over Stock at book value and Buildings at book value less 10%,
iii. Sanju is to take over remaining Debtors at 80% of book value and responsibility for the discharge of the loan,
iv. The expenses of dissolution amounted to ₹ 2,200.
Prepare Realisation Account, Bank Account, and Capital Accounts of the partners.

Neha Fabrics Ltd. invited applications for issuing 5,00,000 shares of ₹ 10 each at a premium of ₹ 4 per share. The amounts were payable as follows:
On Application and Allotment ₹ 8 per share.
On First & Final Call - Balance (including premium of ₹4)
Applications were received for 6,50,000 shares and allotment was made as follows:
i. To applicants for 1,40,000 shares - 100% shares.
ii. To applicants for 60,000 shares - Nil
iii. Balance of the applicants were allotted shares on pro-rata basis.
Excess money received with applications was adjusted towards sums due on first and final call. Kavita, who belonged to category (i) and was allotted 6,000 shares and Hitesh, who belonged to category (ii) and who had applied for 5,000 shares failed to pay the first and final call money. Their shares were forfeited. 60% of forfeited shares of Kavita and Hitesh were re-issued at a discount of ₹ 1 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of the company.