Page 109 - MA12

Model Test Papers M.15

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 2,00,000 By Bank Overdraft 60,000
To Realisation A/c (Assets Realised) 7,20,000 By Realisation A/c (Creditors) 60,000
By Realisation A/c (Expenses) 20,000
By Rahim’s Loan A/c 30,000
By Ram’s Capital A/c (Final Payment) 4,28,000
By Rahim’s Capital A/c (Final Payment) 3,22,000
9,20,000 9,20,000

Working Notes:
1. Calculation of book value of stock taken by Rahim:
Let book value of stock taken over by Rahim = ` 100; Rahim takes it at 20% less than the book value, i.e., ` 100 – ` 20 = ` 80
Book Value of Stock taken by Rahim = ` 40,000 × ` 100/` 80 = ` 50,000.
2. Out of Total Stock of ` 1,50,000; Stock of ` 50,000 is taken by Rahim. Firm sold the remaining stock of ` 1,00,000 at 50%
of its book value, i.e., at ` 50,000.
7. (a) JOURNAL OF MOON LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
2019
Mar. 31 Surplus, i.e., Balance in Statement of Profit and Loss A/c ...Dr. 2,50,000
To Debentures Redemption Reserve A/c 2,50,000
(Being the profit transferred to DRR equivalent to 25%
of the value of Debentures outstanding)
April 1 Debentures Redemption Investment A/c ...Dr. 1,50,000
To Bank A/c 1,50,000
(Being the amount invested in specified securities equal to 15% of the
amount of redeemable debentures)
Sept. 30 Bank A/c ...Dr. 1,56,000
To Debentures Redemption Investment A/c 1,50,000
To Interest Earned A/c 6,000
(Being the debentures redemption investment realised and interest received)

Oct. 1 9% Debentures A/c ...Dr. 10,00,000
To Debentureholders’ A/c 10,00,000
(Being the amount due on redemption)

Debentureholders’ A/c ...Dr. 10,00,000
To Bank A/c 10,00,000
(Being payment made to debentureholders)
Debentures Redemption Reserve A/c ...Dr. 2,50,000
To General Reserve A/c 2,50,000
(Being the amount in DRR A/c transferred to General Reserve)
Note: As per Section 71(4) of the Companies Act, 2013 and Rule 18(7)(b) of the Companies (Share Capital
and Debentures) Rules, 2014, an amount at least equal to 25% of the Nominal Value of Debentures
Outstanding is credited to Debentures Redemption Reserve Account and as per Rule 18(7)(c) of the
Companies (Share Capital and Debentures), Rules, 2014 investment is made in specified securities of an
amount equal to at least 15% of the nominal value of debentures to be redeemed.