Page 332 - MA-12

Model Test Papers M.23

3. The Balance Sheet of Madan and Mohan who share profits and losses in the ratio of
3 : 2, as at 31st March, 2019 was as follows:

BALANCE SHEET OF MADAN AND MOHAN
as at 31st March, 2019
Liabilities ` Assets `
Creditors 28,000 Cash at Bank 10,000
Workmen Compensation Reserve 12,000 Debtors 65,000
General Reserve 50,000 Less: Provision for Doubtful Debts 5,000 60,000
Capital A/cs: Stock 30,000
Madan 60,000 Investments 50,000
Mohan 40,000 Patents 10,000
Goodwill 30,000
1,90,000 1,90,000
They admit Gopal on 1st April, 2019 for 1/5th share on the following terms:
(a) Gopal shall bring ` 25,000 by cheque as his share of premium for goodwill.
(b) Unaccounted accrued commission of ` 500 will be accounted.
(c) Market value of investments was ` 45,000.
(d) A debtor whose dues of ` 6,000 were written off as bad debts paid ` 5,800 in
full settlement.
(e) A claim of ` 2,000 for workmen’s compensation to be provided.
(f) Patents are undervalued by ` 5,000.
(g) Out of the amount of insurance which was debited to Profit and Loss Account,
` 5,000 to be carried forward as unexpired insurance.
(h) Gopal to bring in capital equal to 1/5th of the total capital of the new firm.
Prepare Revaluation Account, Capital Accounts of the Partners and the Balance Sheet
of the new firm. [12]
4. Bayson Ltd. invited applications for 54,000 shares of ` 100 each payable as follows:
` 50 per share on application;
` 10 per share on allotment; and

Balance on first and final call.
Applications were received for 80,000 shares.
Full allotment was made to the applicants of 14,000 shares. The remaining applicants
were allotted 40,000 shares on pro rata basis. Excess money received with application
was adjusted towards sums due on allotment and call.
Vibhor, holding 1,200 shares, who belonged to the category of applicants to whom
full allotment was made, paid the call money at the time of allotment. Vidur, who
belonged to the category of applicants to whom shares were allotted on pro rata
basis did not pay any amount after application money on his 400 shares. Vidur’s
shares were forfeited after the first and final call. All the forfeited shares were later
on reissued @ ` 110 per share as fully paid-up.