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M.24 Management Accounting (Section B)—ISC XII

Pass the Journal entries in the books of Bayson Ltd. for the above transactions. Also
show relevant items as they would appear in the Balance Sheet of the company. [12]
5. (a) Mars Ltd. issued 5,000, 9% Debentures of ` 100 each at par and also raised a loan of
` 8,00,000 from ICICI Ltd. collaterally secured by issuing ` 10,00,000, 9% Debentures of
` 100 each. How will debentures be shown in the Balance Sheet of the company if the
company has recorded the Debentures issued as collateral in the books? Also Journalise
the Issue of Debentures.
(b) Europa Ltd. issued 2,000, 10% Debentures of ` 100 each credited as fully paid to the
promoters for their services and issued 1,000, 10% Debentures of ` 100 each credited
as fully paid to the underwriters for their underwriting services. Journalise these
transactions.
(c) Show by means of Journal entries how will be the following recorded:
(i) Milton Ltd. issued 1,000, 10% Debentures of ` 100 each at a discount of 10%,
redeemable at the end of 5 years at a premium of 5%.

(ii) Dubblin Ltd. issued 2,000, 9% Debentures of ` 100 each at a premium
` 20 per debenture, redeemable at the end of 5 years at a premium of ` 10 per
debenture. [5 + 3 + 4 = 12]
6. (a) On 1st April, 2018, Moon Ltd. had 1,000; 10% Debentures of ` 100 each. On
1st October, 2018, the company purchased 300 Own Debentures @ ` 93
for immediate cancellation. Interest on debentures is payable half yearly on
30th September and 31st March.
Pass Journal entries on 1st October and 31st March.
(b) Under which major heading and sub-heading will the following items be shown in
the Balance Sheet of a company as per Schedule III of the Companies Act, 2013:
(i) Long-term Borrowings; (ii) Trade Payables;
(iii) Provision for Tax; (iv) Patents;
(v) Accrued Income; (vi) Calls-in-Advance? [6 + 6 = 12]
7. The Balance Sheet of Amal, Bimal and Kamal, who are sharing profits in proportion
of their capitals stood as follows on 31st March, 2019:
BALANCE SHEET OF AMAL, BIMAL AND KAMAL
as at 31st March, 2019
Liabilities ` Assets `
Capital A/cs: Goodwill 21,000
Amal 2,00,000 Land and Building 2,00,000
Bimal 3,00,000 Machinery 3,00,000
Kamal 2,00,000 7,00,000 Closing Stock 1,00,000
General Reserve 70,000 Sundry Debtors 1,10,000
Workmen Compensation Reserve 15,000 Less: Provision for Doubtful Debts 10,000 1,00,000
Sundry Creditors 50,000 Cash at Bank 1,00,000
Advertisement Expenditure 14,000
8,35,000 8,35,000