KV GOPALPUR MILITARY STATION

UNIT TEST –APRIAL (2011)

Time-1 Hour Subject-Accountancy MM-25
Name the accounting basis on which Income and expenditure A/c is prepared 1M
How do you deal with Life membership fee in the preparation of Financial 1M
statements of not-for –profit organizations?
Name the financial statements prepared by the not-for - profit organizations. 1M
From the given information, you are required to find out the amount of expenses to be debited to
Income & Expenditure A/c for the year ended 2008
RECEIPTS AND PAYMENTS A/C-2008

By, Expenses 3400

Additional information:
2007 2008
O/S Expenses 1400 1800 3M
Prepaid expenses 800 1000
From the given information, you are required to find out the amount of
stationery to be debited to Income & Expenditure A/c. (Stationery consumed
during the year)
2006 2007
Stationery purchased during the year 6500
Stock of stationery 1500 1200
Creditors for stationery 4800 6500
O/S stationery bill 600 800 3M

From the following extracts of Receipts and payments A/c and additional information,
you are required to calculate the income from subscriptions fro the year ending 31st.
march 2006.
Receipts Rs. Payments Rs.

2005 5000
2006 30000
2007 6000 41000
Additional Information:
1) O/S Subscriptions 2005-6000
2) O/S Subscriptions for the year 2006-4000
3) Subscriptions received in advance- for the year-2005-Rs.6000 3M
Ans: Income from subscriptions-40,000: O/S Subscriptions for the year ending 2006-
5000.
From the following extracts of receipts and payments A/c and additional information of
Raghavendra Sports Club-Madras for the year ended 2008, you are required to Show
how these items will appear in the books of the club.
Debit Credit
Match fund 56,000
Match fund Investments 76,000
Donations for match fund. 24000
Interest on match fund Investments 16000
Sale proceeds from match tickets 14000
Match expenses 1,25,000
3M
Q13 From the given Receipts and Payments A/c and additional information, you are required to
prepare:
1. Income and Expenditure A/c and
2. Balance sheet as on 1st. january2006.
Receipts and Payments A/c
Amt.Rs. Amt.Rs.
To Balance b/d 2000
Subscriptions- By, salaries (2005-1400) 5400
o 2005-1200 Printing & Stationery 1600
o 2006-6500 Advertisement exp. 2500
o 2007-1300 9000 Honorarium 1000
Entrance fee 1000 Sports material 6500
Donations for Building 18000 Machinery 10000
Sale of old news papers 500 Tournament expenses 4500
Interest on investments 1500 Furniture 3500
Life membership fee 2500
Tournament fund 4500 Balance c/d 8000
Furniture sold (BV-1800) 3000
42000 42000
Additional information:
1. The club had 1000 members each paying Rs.10.
2. O/S salaries for the current year-1000.
3. Depreciate Sports material and machinery @ 10% and 20% respectively.
On 1st January 2006 the club had the following assets and liabilities.
Furniture-Rs.4300, Buildings Rs.40000, Sports equipments-Rs.8000, Creditors-4500 and 6M
investments.Rs.5000.
Ans: Deficit-1850: capital Fund-54600

ACCOUNTS FROM NOT-FOR –PROFIT ORGANISATIONS

1Q Give the meaning of non-profit organizations. 1M
2Q Mention any four examples of not-for -profit organizations. 1M
3Q Differentiate between Receipts and payments A/c and Income & Expenditure A/c 1M
on the basis of I) 1) Nature of items recorded. 2) Basis of accounting system and 3)
Time period
How do you deal with sale old sports material in the preparation of Income and 1M
 expenditure A/c
Name the accounting basis on which Income and expenditure A/c is prepared 1M
How do you deal with Life membership fee in the preparation of Financial 1M
statements of not-for –profit organizations?
4Q What is the nature of the following accounts? 1M
1. Receipts and payments A/c and
2. Income & Expenditure A/c
5Q Name the financial statements prepared by the not-for - profit organizations. 1M
How does receipts and payment is different from cashbook. 1M
Mr. karunakaran is a member of Janajaagaran educational Institutions and paid Rs.4500 as
entrance/admission fee. Name the account/ statement in which it is recorded.
What do you understand by specific donation? Give any two examples.
6Q Name any two features of receipts and Payments A/c 1M
What do you mean by Capital receipt? Mention any two examples of capital receipts.
7Q What is the accounting treatment of specific funds like Endowment fund, Prize fund, Building fund
etc. 1M
Bombay Club sold old machine book value of rs.46000 at Rs.34000. How do you record in the
preparation of Income and Expenditure a/c
8Q From the given information, you are required to find out the amount of subscriptions to be credited to
Income & Expenditure A/c.
2006 2007
Subscriptions received during the year 4800
O/S Subscriptions 800 1600
Subscriptions received in advance 600 1000
Ans: 5200 3M
From the given information, you are required to find out the amount of expenses to be debited to
Income & Expenditure A/c for the year ended 2008
RECEIPTS AND PAYMENTS A/C-2008

By, Expenses 3400

Additional information:
2007 2008
O/S Expenses 1400 1800
Prepaid expenses 800 1000
Calculate the amount of sports material to be debited to the income and expenditure account
of capital sports club for the year ended 31. 3. 07 on the basis of following information: -
1- 4- 2006 31- 3 -2007
Stock of sports material 7500 6400
Creditors for sports material 2000 2600
Advance paid for sports materials 3300 4000
Amount paid for purchase of sports material during the year 19000
From the given information, you are required to find out the amount of
stationery to be debited to Income & Expenditure A/c. (Stationery consumed
during the year)
2006 2007
Stationery purchased during the year 6500
Stock of stationery 1500 1200
Creditors for stationery 4800 6500
O/S stationery bill 600 800 3M
Ans: 8700
From the following extracts of receipts and payments account of sonic club and
the given additional information given below:
An extract of receipt and payment a/c
For the year ending 31st dec.2006
Receipts Rs. Payments Rs.
 2004- 2005 2500
2005-2006 26750
2006-2007 1000 30250
Additional information:
Rs
(a) Total number of members each paying an annual subscription of Rs.125.
(b) Subscription outstanding on 1st.April 2005-Rs2750.
Ans” 1) O/S Subscriptions on 310302006=2250 (250+2000)
2) Income from subscriptions for the year-Rs-28750.
From the following extracts of Receipts and payments A/c and additional information, you
are required to calculate the income from subscriptions fro the year ending 31st. march
2006.
Receipts Rs. Payments Rs.

2005 5000
2006 30000
2007 6000 41000
Additional Information:
4) O/S Subscriptions 2005-6000
5) O/S Subscriptions 2006-4000
6) Subscriptions received in advance- for the year-2005-Rs.6000
Ans: Income from subscriptions-40,000: O/S Subscriptions for the year ending 2006-5000.
From the following extracts of receipts and payments A/c and additional information of
Lions Club-New Delhi for the year ended 2008, Show how these items will appear in the
books of the club.
Debit Credit
Prize fund 46,000
Prize fund Investments 46,000
Interest on Prize fund Investments 4000
Prizes awarded 35000
Donations for prize fund 15000
From the following extracts of receipts and payments A/c and additional information of
Ramakrishna Sports Club-New Delhi for the year ended 2008, Show how these items will
appear in the books of the club.
Debit Credit
Tournament fund 36,000
Tournament fund Investments 36,000
Tournament expenses 65000
Additional Information:
Interest on tournament fund Investments 14000
From the following extracts of receipts and payments A/c and additional information of
Raghavendra Sports Club-Madras for the year ended 2008, you are required to Show how
these items will appear in the books of the club.
Debit Credit
Match fund 56,000
Match fund Investments 76,000
Donations for match fund. 24000
Interest on match fund Investments 16000
Sale proceeds from match tickets 14000
Match expenses 1,25,000
9Q From the given information, you are required to find out the amount of stationery to be debited to
Income & Expenditure A/c. (Stationery consumed during the year)
2006 2007
Stationery purchased during the year 6500
Stock of stationery 1500 1200
 Creditors for stationery 4800 6500
O/S stationery bill 600 800
Ans: 8700 3M
10Q Show how the following items will appear in the balance sheet.
Debit Credit
Tournament Fund 45000
Tournament Fund Investments 45000
Tournament expenses 28000
Interest on Tournament Fund Investments 4800 3M

Q11 Show how the following items will appear in the balance sheet.
Debit Credit
Prize Fund 45000
Prize Fund Investments 45000
Prizes awarded 28000
Interest on Prize Fund Investments 4800 3M
Interest accrued on prize fund investments-Rs.1200
Q12 From the following extract receipts and payments account of sonic club and the given
additional information, show the salaries items in the income and expenditure account for
the year ending 31st dec.2006 and the balance sheet as on 31st dec.2005 and 31st dec.2006.
An extract of receipt and payment a/c
For the year ending 31st dec.2006
Receipts Rs. Payments Rs.
By salaries
2005 10,000
2006 80,000
2007 8,000 98,000
Additional information:
Rs.
(c) Salaries outstanding on 31.12.2005 15,000
(d) Salaries outstanding on 31.12.2006 25,000 4M
(e) Salaries paid in advance on 31.12.2005 10,000
Q13 From the given Receipts and Payments A/c and additional information, you are required to prepare:
3. Income and Expenditure A/c and
4. Balance sheet as on 1st. january2006.
Receipts and Payments A/c
Amt.Rs. Amt.Rs.
To Balance b/d 2000
Subscriptions- By, salaries (2005-1400) 5400
o 2005-1200 Printing & Stationery 1600
o 2006-6500 Advertisement exp. 2500
o 2007-1300 9000 Honorarium 1000
Entrance fee 1000 Sports material 6500
Donations for Building 18000 Machinery 10000
Sale of old news papers 500 Tournament expenses 4500
Interest on investments 1500 Furniture 3500
Life membership fee 2500
Tournament fund 4500 Balance c/d 8000
Furniture sold (BV-1800) 3000
42000 42000
Additional information:
4. The club had 1000 members each paying Rs.10.
5. O/S salaries for the current year-1000.
6. Depreciate Sports material and machinery @ 10% and 20% respectively.
On 1st January 2006 the club had the following assets and liabilities.
Furniture-Rs.4300, Buildings Rs.40000, Sports equipments-Rs.8000, Creditors-4500 and
investments.Rs.5000. 6M
Ans: Deficit-1850: capital Fund-54600
 Q114 Following is the Receipts and Payments account and additional information of
Delhi Sports Club for the year ended 31. 12. 2006, You are required to Prepare
Income and Expenditure account of the club for the year-ended 31-12-2006.
And ascertain the capital fund on 31- 12-2005.
Receipts Amount Payment Amount
Balance b/d 10,000 Salary (2005-3500) 15,000
Subscriptions (2005-5600) 52,000 Billiards table 15,000
Legacies 5,000 Furniture (1/7/2005) 5,000
Entrance fee 4,000 Office expenses 6,000
Sale of old sports material 2,000 Legal charges 1,500
Donations for building 84,000 Audit fee 1,000
Interest on investments 1,000 10% Investments (1-7- 30,000
Sale of furniture (BV-2400) 2,000 2005) 40,000
Construction of Cycle shed 40,000
Sports equipments 6,500
1,60.000 Balance c/d 1,60,000

Additional information:
1. On 31- 12-2006 subscriptions outstanding were Rs 6600 and O/S Salaries on 31. 12. 2006
amounted to Rs 4500.
2. ¾ of the entrance is to be capitalized.
3. Depreciate sports equipments and Furniture @ 10% and 5% respectively. 6M
4. On 1-1-2006 the club had the following assets: Building Rs 75000, Furniture Rs 18000, and
Machinery Rs 30000 and sports equipments Rs 40000.
From the given Receipts and Payments A/c and additional information, you are required to
prepare:
1) Income and Expenditure A/c and
2) Balance sheet as on 1st. january2006.and 2007
Receipts and Payments A/c
Amt.Rs. Amt.Rs.
To Balance b/d 350
Subscriptions- By, salaries 1400
o 2006-250 General expenses 200
o 2007-1000 Electricity Charges 300
o 2008-200 1450 Books 500
Hall rent received 700 News papers 400
Profit from entertainment 400
Sale of old news papers 100 Balance c/d 200
3000 3000
Additional information:
7. The club had 50 members each paying annual subscription of rs.25.
8. O/S Subscriptions for the year2006-300
9. O/S salaries for the current year 2006-100
10. Salaries paid in 2007 included Rs.300 for the year 2006
11. Depreciate Sports material and machinery @ 10% and 20% respectively.
On 1st January 2007 the club had the following assets and liabilities.
Furniture-Rs.1000, Buildings Rs.10000, Books-1000.
Ans: Surplus-350: capital Fund-12350 and balance sheet-13000.

TEST-2 (PARTNERSHIP AND BASIC CONCEPTS)

Time-1Hrs. Subject-Accountancy MM-25
Q3 What are the provisions shall become applicable in the absence of partnership deed in the
following cases.
1. Profit sharing ratio. 2. Interest on capital 3.Interest on drawings. 1M
4. Interest on advance/loan.
X and Y are partners in a firm sharing profits in the ratio of 3:2. They admit Z as a new partner for
1/4th share. C has to bring Rs.4000 as his share of goodwill and Rs.60000 as capital. Record the
transactions. 1M
Q4 A, B and C are partners in a firm with out any partnership deed. And with capitals Rs.40,000,
60,000 and Rs.80,000 respectively. Now C wants that profits should be shared in the ratio of
capital whereas A and B are not agree with C. How will the dispute will be settled as per
provisions of the Act. 1M
Q5 Why do the organizations prepare profit and loss appropriation /A/c? 1M
Q6 List any four items that appears on credit side of the partners’ capital accounts when capitals are 1M
fluctuating.
Q7 A, B and C are partners in a firm with capitals Rs.40,000, 60,000 and Rs.80,000 respectively.
They withdrew cash from the business in the following way. Interest is to be calculated @6% p.a
1. A withdrew Rs.1000 at the beginning of every month.
2. B withdrew Rs.1500 at the middle of every month.
3. C withdrew Rs.1000 at the end of every month. 3M
A, B and c are partners in firm having capitals of Rs.60,000, Rs.60,000 and Rs.80,000
respectively. Their current account balances were: A-Rs.10,000, B-Rs.5,000 and C-Rs.2,000(Dr).
According to the partnership deed the partners were entitled to interest on capitals @5% p.a. C
being the working partner was entitled to a salary. Of Rs. 6,000 p.a. The profits were to be
distributed as follows:
1. The firs Rs.20,000 in proportion to their capitals.
2. Next Rs.30,000 in the ratio of 5:3:2
3. Remaining profits to be shared equally.
The firm had a profit of rs.1,56,000 before charging any of the above items. Prepare the profit &
Loss appropriation A/c and pass necessary journal entry for apportionment of profits.
ANS: Profit to be distributed-1,46,000: A-51,000: B-45,000 and C-44,000.
Q8 P, Q and R are partners in a firm with capitals Rs.60,000, 80,000 and Rs.1,00,000 respectively.
Profit earned during the year amounted to Rs.33000 has been distributed equally with out
providing the following as per deed.
1. Interest on capital @ 8% p.a
2. Salary to Q Rs.600 p.m
3. Commission to R 5000 p.a
4. Interest on drawings P-1800, Q-1600, R-1800
5. Profit sharing ratio among the partners will be 5:3:2.
Prepare profit and loss appropriation a/c and show the distribution of profits among the partners. 3M
Q10 A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a new partner. A
surrenders 3/4th of his share and B surrender 1/4th of his share. Calculate new and sacrificing ratio. 3M
Q11 X and Y are partners in a firm sharing profits in the ratio of 3:2. They admit Z as a new partner for
1/4th share. C has to bring Rs.4000 as his share of goodwill and Rs.60000 as capital. Record the
transactions. The new profit sharing ratio among X,Y and Z will be 5:3:2 respectively 3M
Q12 A, B and C are partners in a firm with capitals Rs.40,000, 60,000 and Rs.80,000 respectively.
Profit earned during the year amounted to Rs.30000 has been distributed equally with out
providing the following as per deed.
1. Interest on capital @10% p.a
2. Salary to B Rs.500 p.m
3. Commission to C 5000 p.a
4. Interest on drawings A-800, B-700, C-500
5. Profit sharing ratio among the partners will be 5:3:2.
Pass necessary adjustment entry at the beginning of the next year. 4M
A-5300 Dr:B-2200 Cr:C-3100Cr
X, Y and Z are partners in a firm sharing profits in the ratio of 5:3:2 respectively. Their closing 4M
capitals after all adjustments regarding profits and drawings stood at Rs..40,000, 60,000 and
Rs.80,000 respectively. Profit earned during the year amounted to Rs.60000. drawings made
during the year X-Rs 8000, Y-Rs-6000 and Z-Rs.10,000 respectively. After the final accounts have
been prepared, it was found that the following items have not been taken into the account.
I. Interest on capital @10% p.a
II. Salary to Y- Rs.1000 p.m
III. Commission to Z- 10,000 p.a
Pass necessary adjustment entry at the beginning of the next year.
1Q A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a new partner
for 1/4th share in future profits. C has to bring in Rs. 6000 as his share of goodwill and Rs. 68000 as
his share of capital. On the date of C goodwill already appear in the books amounted to Rs.10000
and Profit & Loss A/C (Dr)-Rs-30,000. Pass necessary journal entries in the books of the firm on
C’s admission.
Q2 X and Y are partners in a firm sharing profits in the ratio of 3:2. They admit Z as a new partner
for 1/4th share which he acquires equally from X and Y. C has to bring Rs.4000 as his share of
goodwill and Rs.60000 as capital. However, He brought Rs-3000 as his share of Goodwill. Record
the transactions. The new profit sharing ratio among X,Y and Z will be 5:3:2 respectively
Q3 A and B are partners in a firm sharing profits in the ratio of 5:3. They admit C as a new partner
for 3/10th share in future profits which he takes 2/10th from A and 1/10th from B. C brings Rs.9000
as his share of goodwill. Pass necessary journal entries to record the above transactions.
Q4 A and B are partners sharing profits in the ratio of 2;1. C is admitted into the firm for 1/4 th share of
profits. C brings in Rs.20,000 In respect of his capital. The capitals of A and B after all adjustments
relating to Goodwill, revaluation profits etc. are amounted to Rs. 45,000 and Rs.15,000
respectively. It is agreed that partners’ capital should be according to the new profit sharing ratio
and the adjustment to be made by opening current accounts.

1Q A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a new partner
for 1/4th share in future profits. C has to bring in Rs. 6000 as his share of goodwill and Rs. 68000 as
his share of capital. On the date of C goodwill already appear in the books amounted to Rs.10000
and Profit & Loss A/C (Dr)-Rs-30,000. Pass necessary journal entries in the books of the firm on
C’s admission.
Q2 X and Y are partners in a firm sharing profits in the ratio of 3:2. They admit Z as a new partner
for 1/4th share which he acquires equally from X and Y. C has to bring Rs.4000 as his share of
goodwill and Rs.60000 as capital. However, He brought Rs-3000 as his share of Goodwill. Record
the transactions. The new profit sharing ratio among X,Y and Z will be 5:3:2 respectively
Q3 A and B are partners in a firm sharing profits in the ratio of 5:3. They admit C as a new partner
for 3/10th share in future profits which he takes 2/10th from A and 1/10th from B. C brings Rs.9000
as his share of goodwill. Pass necessary journal entries to record the above transactions.
Q4 A and B are partners sharing profits in the ratio of 2;1. C is admitted into the firm for 1/4 th share of
profits. C brings in Rs.20,000 In respect of his capital. The capitals of A and B after all adjustments
relating to Goodwill, revaluation profits etc. are amounted to Rs. 45,000 and Rs.15,000
respectively. It is agreed that partners’ capital should be according to the new profit sharing ratio
and the adjustment to be made by opening current accounts.

1Q A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a new partner
for 1/4th share in future profits. C has to bring in Rs. 6000 as his share of goodwill and Rs. 68000 as
his share of capital. On the date of C goodwill already appear in the books amounted to Rs.10000
and Profit & Loss A/C (Dr)-Rs-30,000. Pass necessary journal entries in the books of the firm on
C’s admission.
Q2 X and Y are partners in a firm sharing profits in the ratio of 3:2. They admit Z as a new partner
for 1/4th share which he acquires equally from X and Y. C has to bring Rs.4000 as his share of
goodwill and Rs.60000 as capital. However, He brought Rs-3000 as his share of Goodwill. Record
the transactions. The new profit sharing ratio among X,Y and Z will be 5:3:2 respectively
Q3 A and B are partners in a firm sharing profits in the ratio of 5:3. They admit C as a new partner
for 3/10th share in future profits which he takes 2/10th from A and 1/10th from B. C brings Rs.9000
as his share of goodwill. Pass necessary journal entries to record the above transactions.
Q4 A and B are partners sharing profits in the ratio of 2;1. C is admitted into the firm for 1/4 th share of
profits. C brings in Rs.20,000 In respect of his capital. The capitals of A and B after all adjustments
relating to Goodwill, revaluation profits etc. are amounted to Rs. 45,000 and Rs.15,000
respectively. It is agreed that partners’ capital should be according to the new profit sharing ratio
and the adjustment to be made by opening current accounts.
 TEST-3 (Reconstitution of partnership firm –Admission of a partner)
Subject-Accountancy
Q1 What do you mean by “Reconstitution of partnership firm” 1M

Q2 Name any four circumstances in which the partnership is reconstituted. 1M

Q3 Why do the organizations prepare “Revaluation A/c”? 1M

Q4 Write any two differences between Sacrificing ratio and gaining ratio 1M
Q5 A, B and C are partners in a firm sharing profits in the ratio of 3:2:1
respectively. B decided to retire from the business and the new profit
sharing ratio between A and C will be 3:2. Find out the gaining ratio. 1M
Gaining ratio-3:7
Q6 X, Y and Z are partners in a firm sharing profits in the ratio of 5:3:2
respectively. Y decided to retire from the business and the new profit
sharing ratio between X and Z will be 3:1. On Y’s retirement the goodwill
of the firm was valued at Rs.18000. pass necessary journal entries in the
books of the firm without opening the goodwill A/c 3M
Gaining ratio-5:1 X-4500 Dr: Z-900 Dr.
Q7 A and B are partners in a firm sharing profits in the ratio of 3:2. They
admit C as a new partner for 1/4 th share in future profits. C has to bring in
Rs. 6000 as his share of goodwill and Rs. 68000 as his share of capital. On
the date of C goodwill already appear in the books amounted to Rs.10000.
pass necessary journal entries in the books of the firm. 3M

Q8 P and Q are partners in a firm sharing profits in the ratio of 3:2. They
admit R as a new partner for 1/4th share in future profits. On the date of
“R” the balance sheet showing the profit and loss A/c (Dr) amounted to
Rs.8000 and general reserve Rs.20000. pass necessary journal entries to
record the above transactions. 3M
Q9 A and B are partners in a firm sharing profits in the ratio of 5:3. They
admit C as a new partner for 3/10 th share in future profits which he takes
2/10th from A and 1/10th from B. C brings Rs.9000 as his share of goodwill.
Pass necessary journal entries to record the above transactions. 3M
A and B are partners sharing profits in the ratio of 2;1. C is admitted into
the firm for 1/4th share of profits. C brings in Rs.20,000 In respect of his
capital. The capitals of A and B after all adjustments relating to Goodwill,
revaluation profits etc. are Rs. 45,000 and Rs.15,000 respectively. It is
agreed that partners’ capital should be according to the new profit sharing
ratio.
Ans: Total Capital- (60,000X4/3)=80,000:New ratio= 2:1:1: Capitals-A-
40,000, B-20,000 and C-20,000: Capital Adjustment table- A -To cash-
5000: B-Cash received –5000 and C-cash received-20,000
A, B and C are partners sharing profits in the ratio of 3:2;1. D is admitted
into the firm for 1/4th share of profits which he gets as 1/8th from A and
1/8th form B. The total capital of the new firm is agreed up on as rs.
1,20,000 and D is to bring in cash equivalent to 1/ 4th in the total capital of the new firm. The
capitals of other partners also to be adjusted according to the new profit
sharing ratio. The capitals of A, B and C after all adjustments are Rs.40,00,
35,000 and 30,000 respectively. Excess or deficiency if any be transferred
to their current accounts.
ANS-New ratio=9:5:4:6: new capitals-A-45,000, B-25,000 C-20,000 and
D-30,000: Current accounts-A-5000 (Dr), B and C-Credit balances-
10,000 and 10,000.
X, and Y are partners in affirm sharing profits in the ratio of 5:2. On
31-12-2007 their balance sheet was as follows:
Liabilities Amount Assets Amount
Sundry creditors 24000 Cash 11000
Bills payable 12500 Bills receivable 10000
General reserve 10000 Debtors 35000
Capitals Stock 34000
X- 100000 Furniture 6500
Q10 Y- 70000 170000 Plant and machinery 70000
Building 48000
Profit and loss A/c 2000
216500 216500
They decided to admit Z as a new partner 1/4th share on the following terms and
condition.
1. He has to bring in Rs. 120000 as his share of capital and Rs. 16000 as goodwill.
2. Stock was found over valued by Rs.4000 and Building was under valued by
rs.12000.
3. Plant and machinery be valued at Rs.85000 and furniture be depreciated by
10%.
4. Create a provision @10% for doubtful debts.
Prepare revaluation account. Partner’s capital account and New Balance sheet. 8M
R/P-18850: capitals: X-125710: Y-87140: Z-120000: B/s-369350
A and b are partners in a firm sharing profits in the ratio of 3:2.
Their balance sheet as on 31st. December 2004 stood as follows:
Liabilities Amount Assets Amount
 Capitals A/cs: Machinery 33,000
A 35,000 Furniture 15,000
B 30,000 Investments 20,000
General reserve 10,000 Stock 23,000
Bank loan 9,000 Debtors 19,000
Creditors 36,000 Less: provision 2,000 17,000
Cash 12,000
1,20,000 1,20,000
On that date they admitted C into partnership for 1/4th share in the profits on the
following terms:
1. C brings capital proportionate to his share and Rs.7,000 as his share of
goodwill.
2. Debtors are all good.
3. Depreciate stock by 5% and furniture by 10%.
4. An outstanding bill for repairs Rs.1,000 will be brought into books.
5. Half of the investments were to be taken over by A and B in their profit
sharing ratio at book value.
6. Bank loan is paid off.
7. Partners agreed to share future profits in the ratio of 3:3:2.
Prepare revaluation a/c, Partners’ capital A/Cs and Balance sheet after C’s admission.
Ans: Loss on revaluation-1650: Capital A/Cs-A-40310: B-30040: and C-23450. Cash
balance-33450 and balance sheet-1,30,800.
D and E were partners in a firm sharing profits in the ratio of 3: 1 on 1-
4-2007 they admitted F as a new partner for 1/4 th. Share in the firm their
balance sheet on that date was as follows:
Liabilities Amount Assets Amount
Sundry creditors 24000 Land and building 50000
General reserve 30000 Machinery 60000
Bills payable 32000 Stock 15000
Capitals: 170000 Debtor 40000
D- 100000 Less- provision 3000 37000
E- 70000 Investments 50000
Cash 44000
256000 256000
F will bring Rs 40000 as his capital and other terms agreed up on were:
1. Goodwill of the firm was valued at Rs. 24000
2. Land and buildings be valued at Rs 70000
3. Provisions for bad debts was found to be in excess by Rs 1800
4. A liability for Rs 2000 included in sundry creditors was not likely to
arise.
5. The capital of the partners is adjusted on the basis of F’s contribution
of capital of the firm.
6. Excess or shortfall, if any to be transferred to current accounts.
Prepare revaluation account. Partner’s capital account and balance
sheet of the new firm.
A and B were partners in a firm sharing profits in the ratio of 3: 2 on 31-12-
2007 they admitted C as a new partner for 1/4th. Share in the firm their balance
sheet on that date was as follows
Liabilities Amount Assets Amount
 Sundry creditors 44000 Goodwill 40000
Workmen’s Land and Building 60000
compensation fund 30000 Machinery 64000
Bills payable 32000 Stock 15000
Capitals: Debtor 40000
A- 90000 Less- provision 3000 37000
B- 60000 150000 Cash 40000

256000 256000
C will bring Rs 70000 as his capital and other terms agreed up on were:
1. Goodwill of the firm was valued at Rs. 28000
2. Land and buildings found over valued by Rs.10000
3. Provisions for bad debts was found to be in excess by Rs 1000
4. Machinery be depreciated by by10%
5.Liability against workmen’s compensation fund estimated at Rs.10,000
6. The capital of the partners is adjusted on the basis of C’s contribution of capital
to the firm. Excess or shortfall is adjusted through cash A/c.
Prepare revaluation account. Partner’s capital account and balance sheet of the new
firm.
OR
A, B and C are partners in affirm sharing profits in the ratio of 2:2:1. On 31- 12- 2004
their balance sheet was as follows:
Liabilities Assets
Amount Amount
Sundry creditors 24000 Cash 52000
Bank loan 12000 Bills receivable 10000
Profit & Loss A/c 10000 Debtors 35000
Capitals Stock 45000
A- 80000 Furniture 7000
B- 50000 Plant and machinery 19000
C-40000 Building 48000
170000
216000 216000
B retired from the firm on 1-4-2004 and his share was ascertained on the revaluation of
assets as follows:
1. Stock was revalued at rs 40000, Furniture depreciated by Rs. 1000, Plant &
machinery over valued by Rs 2000, Building were appreciated by Rs.7000.
2. Rs 1000 were to be provided for doubtful debts.
3. The goodwill of the firm was valued at Rs 12000.
4. B was to be paid Rs 25000 in cash on retirement and the balances of amount to
be transferred to his 8% loan A/c.
Prepare revaluation account. Partner’s capital account and Balance sheet that will
appear immediately after S, retirement.

Reconstitution of partnership firm –Retirement/death of a partner)

 Subject-Accountancy
A, B and C are partners in affirm sharing profits in the ratio of 2:2:1. On 31- 12- 2004
their balance sheet was as follows:
Liabilities Amount Assets Amount
Sundry creditors 24000 Cash 52000
Bank loan 12000 Bills receivable 10000
Profit & Loss A/c 10000 Debtors 35000
Capitals Stock 45000
A- 80000 Furniture 7000
B- 50000 Plant and machinery 19000
C-40000 Building 48000
170000
216000 216000
B retired from the firm on 1-4-2004 and the terms and conditions were as follows:
1. Stock was revalued at Rs 40000, Furniture depreciated by Rs. 1000, Plant
& machinery over valued by Rs 2000, Building were appreciated by
Rs.7000.
2. Rs 1000 were to be provided for doubtful debts.
3. The goodwill of the firm was valued at Rs 12000.
4. B was to be paid Rs 25000 in cash on retirement and the balances of amount
to be transferred to his 8% loan A/c.
Prepare revaluation account. Partner’s capital account and Balance sheet that will
appear immediately after S, retirement.
P,Q and R were partners, sharing profits in the ration of 3:2:1 .the balance sheet as on
31st march,2006 was as follows:
Liabilities RS Assets RS
Creditors 19,000 Cash at bank 2,500
Bills payable 5,000 Debtors 16,000
Reserve fund 12,000 Less: pro. for doubtful
debts. ( 500) 15,500
Capital accounts: Stock 25,000
P 40,000 Motor vans 8,000
Q 30,000 Plant and machinery 35,000
R 25,000 Factory building 45,000

Total 1,31,000 Total 1,31,000

Q retires on that date subject to the following adjustments:
1. Good will of the firm to be valued at Rs.18,000
2. Plant to be depreciated by 10% and motor vans by 15%.
3. (Stock to be appreciated by 20% and building by 10%.
4. The reserve for doubtful debts to be increased by Rs.1,500.
5. The capital of the new firm fixed at Rs-1,40,000 and the continuing partners
required to adjust their capitals according to their new profit sharing ratio by
means of cash.
Prepare revaluation account, partner’s capital accounts and balance sheet of the firm
after Q’s retirement.
R, S and T are partners in affirm sharing profits in the ratio of 2:2:1. On 31- 12- 2004
their balance sheet was as follows:
Liabilities Amount Assets Amount
 Sundry creditors 24000 Cash 51400
Bills payable 12000 Bills receivable 10000
General reserve 10000 Debtors 35600
Capitals Stock 44500
R- 80000 Furniture 7000
S- 60000 Plant and machinery 19500
T-40000 180000 Building 48000
Profit and Loss A/c 10,000
226000 226000
S Retired from the firm on 1-4-2004 and his share was ascertained on the
revaluation of assets as follows:
1. Stock was under valued by 2500, Furniture depreciated by 10%,
Plant & machinery over valued by Rs 3500, Building were
appreciated by 20%
2. Provision for legal charges Rs 1000.
3. The goodwill of the firm was valued at Rs 12000.
S was to be paid Rs 20,000 in cash on retirement and the balances of
amount to be transferred to his loan A/c.
A, B and C are partners in a firm sharing profits in the ratio of 5:3:2. on 31-12-2005
Liabilities Amount Assets Amount
Sundry creditors 24,000 Cash 20,000
Bills payable 21,000 Bills receivable 12000
General reserve 10,000 Debtors 35,000
Capitals Stock 45000
A- 100000 Furniture 7000
B- 40000 Machinery 58,000
C- 40000 1,80,000 Building 48,000
2,35,000 2,35,000
st
B died on 31 March 2006 and the terms and conditions agreed up on were
as follows.
1. Amount standing in his capital account.
2. Interest on capital @ 8% per annum
3. His share of goodwill of the firm is valued at 4 years average profits
of two years purchase. Profits: 2002 -Rs 16000, 2003- Rs 24000, 2004-
Rs.20000and 2005-Rs 30000.
4. His share of profits for the living period is to be calculated on the
basis of previous year profits.
5. Executor’s of B have to be paid Rs.4000 as immediate payment and
the balance of amount has to be transferred to his executor’s A/c
Prepare B’s capital account to be rendered to his Executor’s account.

ISSUE OF SHARES
Time-1Hrs. Subject-Accountancy MM-25
Q1 Distinguish between equity shares and preferential shares on the basis 1M
of 1) Ownership and 2) Rate of dividend.
Q2 What do you mean by “Issue of shares at a premium”? 1M
Q3 Write any two differences between capital reserve and reserve capital. 1M
Q4 What do you understand by authorized capital? 1M
Q5 Give the meaning of Minimum subscription 1M
Q6 Krishna Ltd. has issued 8000 Equity shares of Rs.10 each at a premium
of 10% on each share, Applications were received for 12000 shares and
the directors rejected 2000 applications and made allotment to the
remaining applicants on pro-rata basis. All the money received except
from Rakesh on his 800 shares on final call @Rs.3 per share. Show how
the share capital will appear in the company’ Balance sheet as per
provisions of the companies Act 1956. 3M
Q7 XYZ Ltd. has purchased a machinery costing Rs.1,40,000 from Manoj
Ltd. and paid Rs. 30,000 by way of demand draft and the balance by
issuing Equity shares of Rs. 10 each at a premium of 10% on each 3M
share. Pass necessary journal entries in the books of the firm.
Q8 Vandana Ltd. has forfeited 600 Equity shares of Rs. 10 each, on non- 3M
payment of final call Rs.3 on each share. Of the forfeited shares 400
shares have been re-issued @ Rs.8 per share fully paid. Pass necessary
journal entries in the books of the firm.
Q9 Vamsi Ltd. has forfeited 400 Equity shares of Rs. 10 each, (previously
issued at a premium of 10%)on non-payment of allotment Rs-4
(including premium)_and First & final call Rs.3 on each share. All these 3M
forfeited shares have been re-issued @ Rs.7 per share fully paid. Pass
necessary journal entries in the books of the firm.
Brijesh Ltd. has forfeited 600 Equity shares of Rs. 10 each, on non-
payment of First call Rs-2 per share & final call Rs.3 has not yet been
made . All these forfeited shares have been re-issued @ Rs.8 per share
fully paid. Pass necessary journal entries in the books of the firm.
Q10 Karisham Ltd. has registered with an authorized capital of Rs. 4,00,000
divided into 40,000 equity shares of Rs.10 each. Out of which 30,000
equity shares have been issued to the public for subscription at a
premium of 10% on each share, payable as follows:
On application Rs.2
On allotment Rs.4(Including premium)
On First Rs.2
On final call Rs.3
Applications were received for 25,000 shares and the directors made
allotment to all the applicants.
All the money received except from Rakesh on his 1600 shares on final
call. His shares were subsequently forfeited and re-issued @ rs.8 per
share fully paid. Show how these transactions will appear in the
company’s balance sheet.. 4M
Q11 Krishna Ltd. has issued 8000 Equity shares of Rs.10 each at a premium
of 10% on each share, payable as follows:
On application Rs.2
On allotment Rs.4(Including premium)
On First Rs.2
On final call Rs.3
Applications were received for 12000 shares and the directors rejected
2000 applications and made allotment to the remaining applicants on
pro-rata basis.
 All the money received except from Rakesh on his 800 shares on final
call. His shares were subsequently forfeited and re-issued 600 shares @
rs.8 per share fully paid. Pass necessary journal entries to record the
above transactions. 8M
Q12 Mahesh Ltd. has issued 6000 Equity shares of Rs.10 each at a discount
of 10% on each share, payable as follows:
On application Rs.2
On allotment Rs.3
On First Rs.2
On final call Balance
Applications were received for 10,000 shares and the directors made a
pro-rata allotment for 8000 applicants.
All the money received except from Lokesh on his 600 shares on first
and final call. His shares were subsequently forfeited and re-issued 400
shares @ Rs.8 per share fully paid. Pass necessary journal entries to
record the above transactions.
Q13 Kamalesh Ltd. has issued 6000 Equity shares of Rs.10 each at a
premium of 10% on each share, payable as follows:
On application Rs.2
On allotment Rs.4(Including premium)
On First Rs.2
On final call Rs.3
Applications were received for 10,000 shares and the directors rejected
2000 applications and made allotment to the remaining applicants on
pro-rata basis.
Manoj who has been allotted 400 shares failed to pay allotment and
Kanoj who has been applied fro 800 on first &final call. All these shares
were subsequently forfeited and re-issued 800 shares (Which includes
all shares of manoj) @ rs.8 per share fully paid. Pass necessary journal
entries to record the above transactions and prepare cashbook. 8M

ISSUE AND REDEMPTION OF DEBENTURES

Q1 Give the meaning of the term “Debenture” 1M

Q2 What do you mean by “Redemption of debentures”? 1M
Q3 Give the meaning of “Secured debentures” 1M
Q4 Write any two differences between shares and Debentures 1M
Q5 What do you mean by “Issue of debentures as collateral securities”? 1M
Q6 Give the meaning of the term “ Convertible Debenture” 1M
Q7 What do you mean by “Redemption by conversion” 1M
Q8 Vamsi & Co, purchased a Plant from Kamakshi & Co, amounted to Rs.2,20,000. Half of the
amount was paid in the form of bank draft and the balance of amount by issuing 9%
Debentures of Rs.100 each at a premium of 10% on each debenture. Pass necessary journal
entries in the books of Vamsi & Co. 3M
Q9 Varma & Co, purchased a Building from Kamalakr & Co, amounted to Rs.2,20,000. and paid
Rs.40,000in the form of bank draft and the balance of amount by issuing 9% Debentures of
 Rs.100 each at a discount of 10% on each debenture. Pass necessary journal entries in the
books of Varma & Co. 3M
Q10 ABC LTD. has decided to take over the assets of XYZ LTD for Rs.4,40,000 and Liabilities for
Rs.1,20,000 for a purchase consideration of Rs.3,60,000. The purchase consideration was
satisfied by issuing 8% Debentures of Rs.100 each at a discount of 10 % on each debenture. 3M
Q11 Sangam LTD. Has decided to acquire the assets of Jagadesh & Co, book value of Rs.80,000 at
an agreed value of Rs.68,000 and liabilities amounted to Rs.46,000.Purchase consideration was
satisfied by issuing equity shares of Rs.10 each at a premium of Re.1 on each share. Pass
necessary journal entries in the books of the Sangam LTD. 3M
Q12 Pass necessary journal entries on issue of debentures in the following cases.
1. ABC Ltd has issued 4000, 7% Debentures of Rs.100 each at par and redeemable after
four years at a premium of 10%.
2. XYZ Ltd has issued 2000, 9% Debentures of Rs.100 each at a discount of 5% and
redeemable after three years at a premium of 10%. 4M
Q13 ABC LTD has issued 4,000, 8% Debentures of Rs 100 each at a premium of 10% on each
debentures and redeemable after three years by way of draw of lots/openmarket/
conversion at the company’s option.

i. ABC Ltd has redeemed 400, Debentures of Rs.100 each by purchasing its own
debentures form open market @ 94 per debenture.
ii. XYZ Ltd has redeemed.1000, Debentures of Rs.100 each previously issued at a discount
of 10%, by converting them into Equity shares of Rs.10 each at a discount of 10 % on
each share.
iii. Kiran & C0, has redeemed Rs.20,000, Debentures of Rs.100 each out of profits. 4M
Pass necessary journal entries on issue and redemption of debentures in the following cases.
Q14 Pass necessary journal entries on redemption of debentures in the following cases.
1. ABC Ltd has redeemed 1000, 8% Debentures of Rs.100 each by purchasing its own
debentures form open market @ 96 per debenture.
2. XYZ Ltd has redeemed Rs.20000, 9% Debentures of Rs.100 each previously issued at a
discount of 10%, by converting them into Equity shares of Rs.10 each at a discount of
10 % on each share.
3. Vijay Ltd has redeemed Rs.6000, 10% Debentures of Rs.100 each by draw of lots.
6M
Q15 On 1st. January 2010 Regency LTD. Had 3,000, 9% Debentures of Rs.100 each
due for redemption In the same year the company decided to redeem 2,000
debentures at the company’s option as follows:
Redeemed 600 debentures by purchasing from the open market @ Rs.96 per
debenture.
Redeemed 1100 debentures by converting them into equity shares of Rs.10 each
at a premium of Re 1 on each share.
Redeemed Rs.30,000 debentures by draw of lots.
On the date of redemption of debentures, DRR A/c showing a balance of
Rs.40,000. Pass necessary journal entries on redemption of debentures.
6M
 ISSUE OF SHARES
Time-1Hrs. Subject-Accountancy
Q2 What do you mean by “Issue of shares at a premium”? 1M

Q3 Write any two differences between capital reserve and reserve capital. 1M

Q6 Krishna Ltd. has issued 8000 Equity shares of Rs.10 each at a premium
of 10% on each share, Applications were received for 12000 shares and
the directors rejected 2000 applications and made allotment to the
remaining applicants on pro-rata basis. All the money received except
from Rakesh on his 800 shares on final call @Rs.3 per share. Show how
the share capital will appear in the company’ Balance sheet as per
provisions of the companies Act 1956. 3M

Q7 XYZ Ltd. has purchased a machinery costing Rs.1,40,000 from Manoj

Ltd. and paid Rs. 30,000 by way of demand draft and the balance by
issuing Equity shares of Rs. 10 each at a premium of 10% on each 3M
share. Pass necessary journal entries in the books of the firm.

Q8 Vandana Ltd. has forfeited 600 Equity shares of Rs. 10 each, on non- 3M
payment of final call Rs.3 on each share. Of the forfeited shares 400
shares have been re-issued @ Rs.8 per share fully paid. Pass necessary
journal entries in the books of the firm.

Q9 Vamsi Ltd. has forfeited 400 Equity shares of Rs. 10 each, on non-
payment of First & final call Rs.3 on each share. All these forfeited
shares have been re-issued @ Rs.7 per share fully paid. Pass necessary 3M
journal entries in the books of the firm.
Q10 Karisham Ltd. has registered with an authorized capital of Rs. 4,00,000
divided into 40,000 equity shares of Rs.10 each. Out of which 30,000
equity shares have been issued to the public for subscription at a
premium of 10% on each share, payable as follows:
On application Rs.2
On allotment Rs.4(Including premium)
On First Rs.2
On final call Rs.3
Applications were received for 25,000 shares and the directors made
allotment to all the applicants.
All the money received except from Rakesh on his 1600 shares on final
call. His shares were subsequently forfeited and re-issued @ rs.8 per
share fully paid. Show how these transactions will appear in the
company’s balance sheet.. 4M

Q11 Krishna Ltd. has issued 8000 Equity shares of Rs.10 each at a premium
of 10% on each share, payable as follows:
On application Rs.2
On allotment Rs.4(Including premium)
On First Rs.2
On final call Rs.3
Applications were received for 12000 shares and the directors rejected
2000 applications and made allotment to the remaining applicants on
pro-rata basis.
All the money received except from Rakesh on his 800 shares on final
call. His shares were subsequently forfeited and re-issued 600 shares @
rs.8 per share fully paid. Pass necessary journal entries to record the
above transactions. 8M
Q12 Mahesh Ltd. has issued 6000 Equity shares of Rs.10 each at a discount
of 10% on each share, payable as follows:
On application Rs.2
On allotment Rs.3
On First Rs.2
On final call Balance
Applications were received for 10,000 shares and the directors made a
pro-rata allotment for 8000 applicants.
All the money received except from Lokesh on his 600 shares on first
and final call. His shares were subsequently forfeited and re-issued 400
shares @ Rs.8 per share fully paid. Pass necessary journal entries to
record the above transactions.
Q13 Kamalesh Ltd. has issued 6000 Equity shares of Rs.10 each at a
premium of 10% on each share, payable as follows:
On application Rs.2
On allotment Rs.4(Including premium)
On First Rs.2
 On final call Rs.3
Applications were received for 10,000 shares and the directors rejected
2000 applications and made allotment to the remaining applicants on
pro-rata basis.
Manoj who has been allotted 400 shares failed to pay allotment and
Kanoj who has been applied for 800 on first &final call. All these shares
were subsequently forfeited and re-issued 800 shares (Which includes
all shares of manoj) @ rs.8 per share fully paid. Pass necessary journal
entries to record the above transactions and prepare cashbook. 8M

POOJA SPECIAL
1. XYZ Ltd. has purchased a machinery costing Rs.1,40,000 from Manoj Ltd. and paid Rs. 30,000 by
way of demand draft and the balance by issuing Equity shares of Rs. 10 each at a premium of
10% on each share. Pass necessary journal entries in the books of the firm.
2. Vandana Ltd. has forfeited 600 Equity shares of Rs. 10 each, on non-payment of final call Rs.3 on
each share. Of the forfeited shares 400 shares have been re-issued @ Rs.8 per share fully paid.
Pass necessary journal entries in the books of the firm.
3. XYZ Ltd. has purchased a machinery costing Rs.1,40,000 from Manoj Ltd. and paid Rs. 30,000 by
way of demand draft and the balance by issuing Equity shares of Rs. 10 each at a premium of
10% on each share. Pass necessary journal entries in the books of the firm.
4. Vamsi Ltd. has forfeited 400 Equity shares of Rs. 10 each, (previously issued at a premium of
10%)on non-payment of allotment Rs-4 (including premium)_and First & final call Rs.3 on each
share. All these forfeited shares have been re-issued @ Rs.7 per share fully paid. Pass necessary
journal entries in the books of the firm.
5. Brijesh Ltd. has forfeited 600 Equity shares of Rs. 10 each, on non-payment of First call Rs-2 per
share & final call Rs.3 has not yet been made . All these forfeited shares have been re-issued @
Rs.8 per share fully paid. Pass necessary journal entries in the books of the firm.
6. Karisham Ltd. has registered with an authorized capital of Rs. 4,00,000 divided into 40,000 equity
shares of Rs.10 each. Out of which 30,000 equity shares have been issued to the public for
subscription at a premium of 10% on each share, payable as follows:
On application Rs.2
On allotment Rs.4(Including premium)
On First Rs.2
On final call Rs.3
Applications were received for 25,000 shares and the directors made allotment to all the
applicants.
All the money received except from Rakesh on his 1600 shares on final call. Show how these
transactions will appear in the company’s balance sheet..
7. Krishna Ltd. has issued 8000 Equity shares of Rs.10 each at a premium of rs 2 per on each share,
payable as follows:
On application Rs.3 (including premium re-1)
On allotment Rs.4(Including premium re-1)
On First Rs.2
On final call Rs.3
Applications were received for 12000 shares and the directors rejected 2000 applications and
 made allotment to the remaining applicants on pro-rata basis.
All the money received except from Rakesh on his 800 shares on final call. His shares were
subsequently forfeited and re-issued 600 of these shares @ rs.8 per share fully paid.
Pass necessary journal entries to record the above transactions.
8. Mahesh Ltd. has issued 8000 Equity shares of Rs.10 each at a premium of 10% on each share,
payable as follows:
On application Rs.2
On allotment Rs.4(including premium)
On first & final call Balance
Applications were received for 12,000 shares and the directors made a pro-rata allotment as
follows:
Applicants for 2000---Nil (Group-A)
Applicants for 4000---4000 (Group-B)
Applicants for 6000-Balance (Group-C)
Mahesh to who has been applied for 1000 shares from Group-C failed to pay allotment money.
Whereas Ganesh who has been allotted 600 shares paid the entire calls money along with
allotment. Find out the amount received on allotment and first& final call.
9. Kamalesh Ltd. has issued 6000 Equity shares of Rs.10 each at a premium of 10% on each share,
payable as follows:
On application Rs.2
On allotment Rs.4(Including premium)
On First Rs.2
On final call Rs.3
Applications were received for 10,000 shares and the directors rejected 2000 applications and
made allotment to the remaining applicants on pro-rata basis.
Manoj who has been allotted 400 shares failed to pay allotment and Kanoj who has been applied
for 800 on first &final call. All these shares were subsequently forfeited and re-issued 800 shares
(Which includes all shares of manoj) @ rs.8 per share fully paid. Pass necessary journal entries to
record the above transactions and prepare cashbook.
10. ABC LTD. has decided to take over the assets of XYZ LTD for Rs.4,40,000 and Liabilities for
Rs.1,20,000 for a purchase consideration of Rs.3,60,000. The purchase consideration was satisfied
by issuing 8% Debentures of Rs.100 each at a discount of 10 % on each debenture.
11. Sangam LTD. Has decided to acquire the assets of Jagadesh & Co, book value of Rs.1,80,000 at an
agreed value of Rs.1,68,000 and liabilities amounted to Rs.78,000.Purchase consideration was
satisfied by issuing 10,000 equity shares of Rs.10 each at a premium of Re.1 on each share. Pass
necessary journal entries in the books of the Sangam LTD.
Pass necessary journal entries on issue of debentures in the following cases.
1. ABC Ltd has issued 4000, 7% Debentures of Rs.100 each at par and redeemable after four
years at a premium of 10%.
2. XYZ Ltd has issued 2000, 9% Debentures of Rs.100 each at a discount of 5% and
redeemable after three years at a premium of 10%.
ABC LTD has issued 4,000, 8% Debentures of Rs 100 each at a premium of 10% on each
debentures and redeemable after three years by way of draw of lots/openmarket/ conversion at
the company’s option.
i. ABC Ltd has redeemed 400, Debentures of Rs.100 each by purchasing its own debentures
form open market @ 94 per debenture.
ii. XYZ Ltd has redeemed.1000, Debentures of Rs.100 each previously issued at a discount of
10%, by converting them into Equity shares of Rs.10 each at a discount of 10 % on each
share.
iii. Kiran & C0, has redeemed Rs.20,000, Debentures of Rs.100 each out of profits.
Pass necessary journal entries on issue and redemption of debentures in the following cases.
On 1stAapril 2016 ABC LTD has issued Rs-40,00,00, 8% Debentures of Rs 100 each at a premium of
 10% on each payable the entire amount along with application and allotment. Interest is payable
half yearly on 30th September and on 31st March every year. TDS is @5%. Pass necessary journal
entries on issue and for interest for the year ended 31st.march 2017.
On 1stAapril 2013 ABC LTD has issued 40,000, 8% Debentures of Rs 100 each at a discount of 10%
on each debenture payable the entire amount along with application and allotment and these
debentures are redeemable at the end of the 4 th. Year at a premium of 10%. Show the loss on
issue of debentures A/c.
BUSINESS STUDIES
MENTION THE STEPS/PROCESS INVOLVED:
ORGANISING-PLANNING—STAFFING—SELECTION--MOTIVATION –COMMUNICATION--CONTROLLING
FEATURES OF MANAGEMENT AND IMPORTANCE OF MANAGEMENT
FEATURES OF PLANNING AND IMPORTANCE OF PLANNING
PRINCIPLES OF SCIENTIFIC MANAGEMENT AND TECHNIQUES

FINANCIAL STATEMENTS AND ANALYSIS OF FINANCIAL STATEMENTS

Subject-Accountancy
Q1 What does a financial statement include? 1M
Q2 Give any two uses of financial statement analysis. 1M
Q3 State any two limitations of financial statements analysis. 1M
Q4 Write any advantages of comparative statements. 1M
Q5 What are the tools of financial statements analysis? 1M
Q6 The following balances have been extracted from the books of ABC. Ltd. for the
year ended 31-12-2007. You are required to prepare balance sheet as per provisions
of the company’s A/c. 1956.
ES capital 5,00,000 General reserve 1,00,000
9% Debentures 3,00,000 Creditors 1,00,000
 Bills payable 10,000 Profit & Loss A/c (DR) 10,000
Plant & Machinery 6,00,000 I.C.I.C.I Bonds. 2,00,000 3M
Goodwill 45,000 Dis. on issue of debentures. 25000
Q7 The following balances have been extracted from the books of Kamal & Co.. Ltd.
for the year ended 31-12-2007. You are required to show under which main heading
these will appear in the company’s balance sheet.
ES capital General reserve
9% Debentures Creditors
Provision for tax Profit & Loss A/c (CR)
Plant & Machinery Shares in satyam computers.
Goodwill Discount on issue of debentures. 3M

Q8 Prepare comparative income statement with the help of the following information.
2005 2006
Net sales 4,50,000 6,80,000
Gross profit 80,000 1,20,000
Indirect expenses 50,000 60,000
Other incomes 5,000 10,000 3M
Tax 40% 50%
Q9 Prepare comparative income statement with the help of the following information.
2005 2006
Net sales 4,00,000 6,00,000
Cost of goods sold 50% of sales 60% of sales
Indirect expenses 10% of Gross profit 15% of Gross profit
Rate tax 40% 50% 3M

Q10 Prepare comparative income statement with the help of the following information.
2005 2006
Net sales 4,50,000 6,80,000
Cost of goods sold 3,50,000 4,20,000
Office & Administrative expenses 50,000 60,000
Selling and distribution expenses 10,000 15,000
Non-operating incomes 15,000 20,000
Tax 40% 50% 4M

Q11 The following are the balance sheets of PQR Ltd. for the years 2006 and 2007. You
are required to prepare comparative balance sheet for the same period.

LIABILITIES 2006 2007 ASSETS 2006 2007

Share capital 5,00,000 10,00,000 Fixed assets 8,00,000 12,00,000
General reserve 1,00,000 1,00,000 Current Assets 2,00,000 3,00,000
Long-term loans 3,00,000 2,00,000
Current 1,00,000 2,00,000
liabilities
10,00,000 15,00,000 10,00,000 15,00,000
4M
 RATIO ANALYSIS

Subject-Accountancy
Q1 Give the meaning of the term “Ratio” 1M
Q2 What do you mean by “Ratio Analysis” 1M
Q3 Give any two uses of ratio analysis 1M
Q4 State any four limitations of ratio analysis 1M
Q5 Show the classification of ratios. 1M
Q6 A business has current ratio 3:1 and quick ratio 1.2:1 .If working capital is Rs.1,80,000, calculate
the current liabilities , current assets and stock. 3M
Q7 ABC Ltd. has a current ratio of 3.5:1 and Quick ratio of 2:1. If excess of current assets over quick
assets represented by stock is Rs.24,000 calculate current assets and current liabilities.
ANS:C.A-2,70,000:C.L-90,000: Stock-1,62,000. 3M
Q8 The ratio of current assets (Rs.3,00,000) to current liabilities (Rs.2,00,000) is 1.5:1. The firm is
interested in maintaining a current ratio of 2:1, by paying off a part of the current liabilities.
Calculate the amount of current liabilities that should be paid, so that the current ratio 2:1 will be
maintained. 3M
ANS: Current liabilities to be payable-1,00,000
Q9 Compute stock turnover
Net sales 2,00,000 ratio from the following
Gross profit 25% on sales information. Ans:
Closing stock 50,000 S/R=15:4
Excess of closing stock over opening stock-Rs.20,000 3M
Q10 Calculate the current assets of a company from the following information
Stock turnover ratio 6 Times
Stock in the beginning is Rs.8000 more than stock at the end.
Sales during the year 2,00,000
Gross profit. 33%0n cost
Current liabilities 80,000
Quick ratio 0.75:1 4M
Answers-Average stock-40,000: Closing stock-21,000: Q.A-60,000 and C.A-81,000
Q11 From the following information, you are required to calculate, Debt-Equity ratio and current ratio.
Equity share capital 2,00,000
10% Preferential share capital 50,000
General reserve 40,000
9% Bank loan 1,00,000
Current liabilities 80,000
Preliminary expenses 20,000
Working capital 1,20,000
4M

CASH FLOW STATEMENTS

Subject-Accountancy
Q1 Give the meaning of the term “ Cash flow statement” 1M
Q2 Write any two uses/benefits of cash flow statements. 1M
Q3 Name any four limitations of cash flow statements. 1M
Q4 Mention under which separate activity will appear the following items in 1M
the cash flow statement
LIABILITIES 2006 as per AS-3 ASSETS
2007 2006 2007
Provision for Fixed Assets 1,40,000 2,60,000
1. Dividends paid.
depreciation 2. Interest
45,000 65,000received by Financing Company.
Q5 Mention,
Additionalwhether inflow/out
Information: During flow/neither inflow nor
the period a machine outRs.65,000
costing flow of cash
against each of the following cases.
(Accumulated depreciation Rs.32,000) was sold for Rs. 18,000.
1. Issue of shares for cash to the public.
2. Redemption of debentures.
3. Purchase of machinery
4. Sale of investments.
5. Conversion of debentures into shares.
6. Issue of shares to the vendor 3M
Q6 Sanjay LTD giving you the following information for the year ended
31st.December-2008. You are required to Show Fixed assets A/c and
Provision for depreciation A/c and Assets disposal A/c.
Balance Sheet

3M
Q7 Samar LTD giving you the following information for the year ended
31st.December-2008. You are required to Show how these items will
appear in cash flow statement. Balance Sheet
LIABILITIES 2006 2007 ASSETS 2006
2007
Fixed Assets 1,40,000
2,60,000
Provision for (40,000)
(60,000
depreciation )
1,00,000 2,00,000
Additional Information: During the period a machine costing Rs.45,000
(Accumulated depreciation Rs.25,000) was sold for Rs. 30,000.
 3M
Q8 Calculate cash from operating activities from the following information:
Profit made during the period 2006-2007 after considering the following,
amounted to Rs.68,000.
1. Amt. transferred to general reserve-10,000
2. Depreciation provided during the year-18,000
3. Profit on sale of Furniture-6,000
4. Goodwill written off-8,000
Other information:

Debtors
Creditors
Stock
Accounts payable
6M
Cash in hand
Expenses payable
Q9 From the given Trading and profit and loss A/c and additional information,
you are required to, calculate the cash generated from operating activities as
per AS-3
Profit and loss A/c for the year ended 31st. December 2007
Opening stock
Purchases
Gross profit C/D

Salary
Depreciation
Pro. for tax

Goodwill written of
Loss on sale of Furn
Net profit

Additional Information:
2006 2007
Sundry debtors 24000 34000
Sundry creditors 35000 26000
Pre-paid insurance 2500 3400
Bills receivables 14000 16000
Q10 From the following balance sheet of ABHI LTD. and additional
information prepare, cash flow statement as per As-3.
LIABILITIES 2006 2007 ASSETS 2006 2007
E. Share 3,00,000 4,00,000 Fixed Assets 4,60,000 6,20,000
capital
Profit &Loss 85,000 1,10,000 Acc.Dep.A/c (60,000) (70,000)
A/c
Debentures 1,00,000 75,000 4,00,000 5,50,000
Mortgage loan 80,000 1,60,000 Stock 2,00,000 2,25,000
Creditors 3,10,000 2,95,000 Debtors 2,10,000 1,90,000
Provision for 45,000 60,000 Bills 80,000 1,10,000
tax Receivable
Bank 30,000 25,000
9,20,000 11,00,000 9,20,000 11,00,000
Additional Information:
1. During the year a piece of machinery costing Rs.60,000 (Accumulated
depreciation there on amounted to Rs.34,000 was sold for Rs.26,000)
 6M
Q11 From the following comparative balance sheet of ABC LTD. and
additional information prepare, cash flow statement as As-3.
LIABILITIES 2007 2006 ASSETS 2007 2006
E. Share 4,50,000 4,50,000 Fixed Assets 8,60,000 6,20,000
capital
Pre. Capital 2,00,000 3,00,000 Investments 1,25,000 80,000
9% 3,00,000 2,00,000 Current 4,25,000 3,46,000
Debentures assets
Profit &Loss A/c 2,00,000 ------ Profit & Loss ------- 1,00,000
A/c
General 1,50,000 1,20,000 Goodwill 10,000 15,000
reserve
Current 1,20,000 1,10,000 Preliminary 5,000 25,000
liabilities exp.
Pro. for tax 30,000 40,000 Cash at bank 25,000 34,000
14,50,000 12,20,000 14,50,000 12,20,000 6M
Additional Information:
1. Depreciation provided on fixed assets-60,000
2. Interest paid on debentures –Rs.16000
3. Rs.36, 000 made for provision for tax
Q12 From the following comparative balance sheet of Ramakrishna LTD. and
additional information prepare, cash flow statement as As-3.
LIABILITIES 2008 2009 ASSETS 2008 2009 6m
E. Share capital 4,50,000 4,50,000 Fixed 8,60,000 9,60,000
Assets
Accumulated dep. 2,00,000 3,00,000 Investments 1,25,000 1,80,000
A/c
Debentures 3,00,000 2,00,000 Current assets 4,50,000 3,80,000
Profit &Loss 2,00,000 3,10,000
A/c
General reserve 1,50,000 1,50,000 Cash at 15,000 40,000
bank
Current 1,20,000 1,10,000
liabilities
Proposed 30,000 40,000
Dividends
14,50,000 15,60,000 14,50,000 15,60,000
Additional Information:
1. During the year a machine costing Rs.45,000 (Accumulated depreciation
Rs.25,000) was sold for Rs. 30,000.
2. Dividends paid during the year-24,000
Q13 From the summarized balance sheets of Kamalesh Ltd. As on 31st December 6m
2006 and 2007, you are required to prepare cash flow statement showing operating,
Investing and financing activities.
LIABILITIES 2006 2007 ASSETS 2006 2007
E.Share capital 3,00,000 3,50,000 Goodwill 10,000 5,000
Pre.Sh.Capital 2,00,000 1,00,000 Land & Buildings 3,00,000 3,40,000
Profit & Loss A/c 1,10,000 2,70,000 Plant & Machinery 2,10,000 2,80,000
Creditors 70,000 1,45,000 Investments 30,000 80,000
Provision for tax 10,000 15,000 Stock 1,00,000 90,000
Debentures 1,00,000 2,00,000 Debtors 1,00,000 2,00,000
 Cash at Bank 40,000 85,000
7,90,000 10,80000 7,90,000 10,80,000
Additional Information:
1. Depreciation provided on Land & Buildings-Rs.46,000 and Plant &
Machinery-Rs.34,000 during the year
2. Tax paid during the year-Rs.8,000
Q14 ABC Ltd. has a current ratio of 3.5:1 and Quick ratio of 2:1. If excess of current assets 3m
Net quick
sales assets represented by stock is Rs.24,000 calculate
2,00,000
over current assets and current
Gross profit
liabilities 25% on sales
Q15 Closing stock 50,000 Compute stock 3m
Excess of closing stock over opening stock-Rs.20,000 turnover ratio
from the following information. Ans: S/R=3.50 Times

Q16 Calculate the current assets of a company from the following information 4m
Stock turnover ratio 6 Times
Stock in the beginning is Rs.8000 more than stock at the end.
Sales during the year 2,00,000
Gross profit. 33%0n cost
Current liabilities 80,000
Quick ratio 0.75:1
Answers-Average stock-25,000: Closing stock-21,000: Q.A-60,000 and C.A-81,000
Q17 From the following information, you are required to calculate, Debt-Equity ratio and 4m
current ratio.
Equity share capital 2,00,000
10% Preferential share capital 50,000
General reserve 40,000
9% Bank loan 1,00,000
Current liabilities 80,000
Preliminary expenses 20,000
Working capital 1,20,000
Ans: D/E-).37: C/R-5:2
 Holidays Home work-2013-2014
PARTNERSHIP AND BASIC CONCEPTSSubject-Accountancy
Q1 What are the provisions shall become applicable in the absence of partnership deed in the following cases.
1. Profit sharing ratio. 2. Interest on capital 3.Interest on drawings.
4. Interest on advance/loan.

Q2 A, B and C are partners in a firm without any partnership deed. And with capitals Rs.40,000, 60,000 and Rs.80,000 respectively. Now
C wants that profits should be shared in the ratio of capital whereas A and B are not agree with C. How will the dispute will be settled
as per provisions of the Act.
Q3 Why do the organizations prepare profit and loss appropriation /A/c?
Q4 List any four items that appears on credit side of the partners’ capital accounts when capitals are fluctuating.
Q5 A, B and C are partners in a firm with capitals Rs.40,000, 60,000 and Rs.80,000 respectively. They withdrew cash from the business
in the following way. Interest is to be calculated @6% p.a
1. A withdrew Rs.1000 at the beginning of every month.
2. B withdrew Rs.1500 at the middle of every month.
3. C withdrew Rs.1000 at the end of every month.
Q6 A, B and c are partners in firm having capitals of Rs.60,000, Rs.60,000 and Rs.80,000 respectively. Their current account balances
were: A-Rs.10,000, B-Rs.5,000 and C-Rs.2,000(Dr). According to the partnership deed the partners were entitled to interest on
capitals @5% p.a. C being the working partner was entitled to a salary. Of Rs. 6,000 p.a. The profits were to be distributed as follows:
1. The firs Rs.20,000 in proportion to their capitals.
2. Next Rs.30,000 in the ratio of 5:3:2
3. Remaining profits to be shared equally.
The firm had a profit of rs.1,56,000 before charging any of the above items. Prepare the profit & Loss appropriation A/c and pass
necessary journal entry for apportionment of profits.
ANS: Profit to be distributed-1,46,000: A-51,000: B-45,000 and C-44,000.
Q7 P, Q and R are partners in a firm with capitals Rs.60,000, 80,000 and Rs.1,00,000 respectively. Profit earned during the year
amounted to Rs.33000 has been distributed equally without providing the following as per deed.
1. Interest on capital @ 8% p.a
2. Salary to Q Rs.600 p.m
3. Commission to R 5000 p.a
4. Interest on drawings P-1800, Q-1600, R-1800
5. Profit sharing ratio among the partners will be 5:3:2.
Prepare profit and loss appropriation A/c and show the distribution of profits among the partners.

Q8 X and Y are partners in a firm sharing profits in the ratio of 3:2. They admit Z as a new partner for 1/4 th share. C has to bring Rs.4000
as his share of goodwill and Rs.60000 as capital. Record the transactions. The new profit sharing ratio among X,Y and Z will be 5:3:2
respectively
Q9 A, B and C are partners in a firm with capitals Rs.40,000, 60,000 and Rs.80,000 respectively. Profit earned during the year amounted
to Rs.30000 has been distributed equally without providing the following as per deed.
1. Interest on capital @10% p.a
2. Salary to B Rs.500 p.m
3. Commission to C 5000 p.a
4. Interest on drawings A-800, B-700, C-500
5. Profit sharing ratio among the partners will be 5:3:2.
Pass necessary adjustment entry at the beginning of the next year.
A-5300 Dr:B-2200 Cr:C-3100Cr
Q10 X, Y and Z are partners in a firm sharing profits in the ratio of 5:3:2 respectively. Their closing capitals after all adjustments regarding
profits and drawings stood at Rs..40,000, 60,000 and Rs.80,000 respectively. Profit earned during the year amounted to Rs.60000.
drawings made during the year X-Rs 8000, Y-Rs-6000 and Z-Rs.10,000 respectively. After the final accounts have been prepared, it
was found that the following items have not been taken into the account.
1. Interest on capital @10% p.a
2. Salary to Y- Rs.1000 p.m
3. Commission to Z- 10,000 p.a
Pass necessary adjustment entry at the beginning of the next year.
Q11 A, and B are partners in a firm sharing profits in the ratio of 3:2 with capitals Rs.40,000 and B- Rs-30,000. They admitted C a new
partner for 1/5 share in the profits with guaranteed profits of Rs-3000. The deficiency if any arising out of guaranteed profit will be
borne by A and B in the ratio of 2:3. During the year the firm earned a profit of Rs.1000.Show the distribution profits and show your
working clearly.
Q12 A and B are partner sharing profits in the ratio of 3:2. At the end of the year 2010 after division of the profits, they decided to take
their manager C into partnership with effect from 1 st.January 2007. C as a manager use to get an annual salary of Rs.45,000 and he
also had advanced a sum of Rs.3,00,000 on which he received interest @ 10%p.a. During the three financial years the firm’s profits
after all adjustments as to interest , salary etc .were as follows.
2007-4,00,000: 2008-2,00,000:2009-5,00,000 and 2010-6,00,000.
According to the new agreement C is to be given annual salary of rs-35,000 and 1/5 share of profits. C’s loan shall be treated as
capital and his will carry interest @ 6% p.a. record the necessary entries to give effect to the above arrangenmnt.
 SLIP TEST ON ISSUE OF DEBENTURES
1 Vamsi & Co, purchased a Plant from Kamakshi & Co, amounted to Rs.2,20,000. Half of the amount was paid in the form of
bank draft and the balance of amount by issuing 9% Debentures of Rs.100 each at a premium of 10% on each debenture.
Pass necessary journal entries in the books of Vamsi & Co. 3M
2 Varma & Co, purchased a Building from Kamalakr & Co, amounted to Rs.2,20,000. and paid Rs.40,000in the form of bank
draft and the balance of amount by issuing 9% Debentures of Rs.100 each at a discount of 10% on each debenture. Pass
necessary journal entries in the books of Varma & Co.
3M
3 ABC LTD. has decided to take over the assets of XYZ LTD for Rs.4,40,000 and Liabilities for Rs.1,20,000 for a purchase
consideration of Rs.3,60,000. The purchase consideration was satisfied by issuing 8% Debentures of Rs.100 each at a
discount of 10 % on each debenture. 3M
4 Maya LTD on 1-4 -2008 has issued 4000, 10% Debentures of Rs.100 each at a discount of 10% on each payable Rs-30 on
application and Balance on Allotment. The debentures were fully subscribed and amount receid. Interest is payable half-
yearly and TDS is 8%. Pass necessary journal entries for issue of debentures and for interest
4M
5 Pass necessary journal entries on issue of debentures in the following cases.
1. ABC Ltd has issued 4000, 7% Debentures of Rs.100 each at par and redeemable after four years at a premium of
10%.
2. XYZ Ltd has issued 2000, 9% Debentures of Rs.100 each at a discount of 5% and redeemable after three years at a
premium of 10%. 4M
6 Manasa LTD has issued 2000, 10% Debentures of Rs.100 each at a discount of 10% on each payable Rs-30 on application
and Balance on Allotment. The debentures were fully subscribed and amount receid.
The company also issued 3000, 10% debentures of Rs-100 each at a premium of 20% to the vendor for satisfaction of
purchase consideration on account of purchase of Plant costing Rs-3,60,000.
The company also issued 2000 10% debentures of Rs-100 each as collateral security against the SBI loan.
Pass necessary journal entries in the books of the company to record the transactions and also how these items will appear
in the balance sheet as per companies Act 2013. 8M

1 Vamsi & Co, purchased a Plant from Kamakshi & Co, amounted to Rs.2,20,000. Half of the amount was paid in the form of
bank draft and the balance of amount by issuing 9% Debentures of Rs.100 each at a premium of 10% on each debenture.
Pass necessary journal entries in the books of Vamsi & Co.
3M
2 Varma & Co, purchased a Building from Kamalakr & Co, amounted to Rs.2,20,000. and paid Rs.40,000in the form of bank
draft and the balance of amount by issuing 9% Debentures of Rs.100 each at a discount of 10% on each debenture. Pass
necessary journal entries in the books of Varma & Co.
3M
3 ABC LTD. has decided to take over the assets of XYZ LTD for Rs.4,40,000 and Liabilities for Rs.1,20,000 for a purchase
consideration of Rs.3,60,000. The purchase consideration was satisfied by issuing 8% Debentures of Rs.100 each at a
discount of 10 % on each debenture. 3M
4 Maya LTD on 1-4 -2008 has issued 4000, 10% Debentures of Rs.100 each at a discount of 10% on each payable Rs-30 on
application and Balance on Allotment. The debentures were fully subscribed and amount receid. Interest is payable half-
yearly and TDS is 8%. Pass necessary journal entries for issue of debentures and for interest
4M
5 Pass necessary journal entries on issue of debentures in the following cases.
1. ABC Ltd has issued 4000, 7% Debentures of Rs.100 each at par and redeemable after four years at a premium of
10%.
2. XYZ Ltd has issued 2000, 9% Debentures of Rs.100 each at a discount of 5% and redeemable after three years at a
premium of 10%. 4M
6 Manasa LTD has issued 2000, 10% Debentures of Rs.100 each at a discount of 10% on each payable Rs-30 on application
and Balance on Allotment. The debentures were fully subscribed and amount receid.
The company also issued 3000, 10% debentures of Rs-100 each at a premium of 20% to the vendor for satisfaction of
purchase consideration on account of purchase of Plant costing Rs-3,60,000.
The company also issued 2000 10% debentures of Rs-100 each as collateral security against the SBI loan.
Pass necessary journal entries in the books of the company to record the transactions and also how these items will appear
in the balance sheet as per companies Act 2013. 8M

1 Vamsi & Co, purchased a Plant from Kamakshi & Co, amounted to Rs.2,20,000. Half of the amount was paid in the form of
bank draft and the balance of amount by issuing 9% Debentures of Rs.100 each at a premium of 10% on each debenture.
Pass necessary journal entries in the books of Vamsi & Co. 3M
2 Varma & Co, purchased a Building from Kamalakr & Co, amounted to Rs.2,20,000. and paid Rs.40,000in the form of bank
draft and the balance of amount by issuing 9% Debentures of Rs.100 each at a discount of 10% on each debenture. Pass
necessary journal entries in the books of Varma & Co. 3M
3 ABC LTD. has decided to take over the assets of XYZ LTD for Rs.4,40,000 and Liabilities for Rs.1,20,000 for a purchase
consideration of Rs.3,60,000. The purchase consideration was satisfied by issuing 8% Debentures of Rs.100 each at a
discount of 10 % on each debenture. 3M
4 Maya LTD on 1-4 -2008 has issued 4000, 10% Debentures of Rs.100 each at a discount of 10% on each payable Rs-30 on
application and Balance on Allotment. The debentures were fully subscribed and amount receid. Interest is payable half-
yearly and TDS is 8%. Pass necessary journal entries for issue of debentures and for interest 4M
5 Pass necessary journal entries on issue of debentures in the following cases.
1. ABC Ltd has issued 4000, 7% Debentures of Rs.100 each at par and redeemable after four years at a premium of
10%.
2. XYZ Ltd has issued 2000, 9% Debentures of Rs.100 each at a discount of 5% and redeemable after three years at a
premium of 10%. 4M
6 Manasa LTD has issued 2000, 10% Debentures of Rs.100 each at a discount of 10% on each payable Rs-30 on application
and Balance on Allotment. The debentures were fully subscribed and amount receid.
The company also issued 3000, 10% debentures of Rs-100 each at a premium of 20% to the vendor for satisfaction of
purchase consideration on account of purchase of Plant costing Rs-3,60,000.
The company also issued 2000 10% debentures of Rs-100 each as collateral security against the SBI loan.
Pass necessary journal entries in the books of the company to record the transactions and also how these items will appear
in the balance sheet as per companies Act 2013. 8M