Page 99 - MA12

Model Test Papers M.5

7. (a) Moon Ltd. had issued on 1st October, 2015, 10,000, 9% Debentures of ` 100 each at
par redeemable at par at the end of 4 years. It was decided to transfer amount
to Debentures Redemption Reserve as per the Companies Act, 2013, at the time
of redemption.
Investments, as required by law, were made on 1st April of the financial year in which
redemption is due and realised at book value at the time of redemption. Interest on
the investment is also received @ 8% per annum.
Pass the necessary Journal entries for Redemption of Debentures, Debentures
Redemption Reserve and Debentures Redemption Investment. Ignore interest
on Debentures.
(b) Pass necessary Journal entries relating to the issue of debentures for the following:
(i) Issued 4,000; 9% Debentures of ` 100 each at a premium of 8% redeemable at
10% premium.
(ii) Issued 6,000; 9% Debentures of ` 100 each at par, repayable at a premium of 10%.
(c) Venus Ltd. took over assets of ` 10,00,000 and liabilities of ` 1,80,000 of Cayns Ltd. for
` 7,60,000. Venus Ltd. issued 9% Debentures of ` 100 each at a discount of 5% in full
satisfaction of the purchase consideration in favour of Cayns Ltd.
Pass the necessary Journal entries in the books of Venus Ltd. for the above transactions.
[6 + 4 + 2 = 12]

8. (a) Vikas Ltd. offered 32,000 equity shares of ` 100 each to public at a premium of
` 20 per share. The amount was payable as: ` 20 on application; ` 40 (including
premium) on allotment; and the balance on first and final call. Subscription was
received for 30,000 shares.
All the amounts were duly received except from a shareholder holding 4,000 shares
who did not pay the first and final call. His shares were forfeited.
Show ‘Share Capital’ in the Balance Sheet of Vikas Ltd.
(b) From the following information extracted from the books of Sonam Ltd., prepare
Balance Sheet of the company as at 31st March, 2020 as per Schedule III, Part I
of the Companies Act, 2013:

(` in ’000) (` in ’000)
Long-term Borrowings 600 Short-term Borrowings 180
Share Capital 780 Trade Payables 40
Fixed Assets (Tangible) 1,200 Reserves and Surplus 200
Trade Receivables 160 Inventories 40
Share Application Money Cash and Bank Balances 120
Pending Allotment 20 Non-current Investments 400
Long-term Provisions 200 Current Investments 100
Prepaid Expenses 20 Outstanding Expenses 20
Note: Proposed Dividend for the year 2019–20 is ` 20,000. [3 + 9 = 12]