Page 340 - MA-12

Model Test Papers M.31

Working Notes:
1. Amount recovered in the form of bad debts written off last year is a gain for the firm. Therefore, Revaluation Account is
credited with the amount.
2. In the given case, there is a claim of ` 2,000 on account of Workmen Compensation. Therefore, Workmen Compensation
Reserve of ` 2,000 is used for providing the liability and balance amount of ` 10,000 (i.e., 12,000 – 2,000) is distributed
among Madan and Mohan in their old profit-sharing ratio.
3. Calculation of Gopal’s Share of Capital: `
Adjusted Capital of Madan 99,780
Adjusted Capital of Mohan 66,520
Combined capital of Madan and Mohan for 4/5 share 1,66,300
Total Capital of the firm should be = ` 1,66,300 × 5/4 = ` 2,07,875
Gopal’s Share of Capital = ` 2,07,875 × 1/5 = ` 41,575.

4. Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 10,000 By Balance c/d 82,375
To Bad Debts Recovered A/c 5,800
To Gopal’s Capital A/c (WN 3) 41,575
To Premium for Goodwill A/c 25,000
82,375 82,375
4. JOURNAL OF BAYSON LTD.

Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 40,00,000
To Equity Shares Application A/c 40,00,000
(Being the application money received for 80,000 shares @ ` 50 per share)
Equity Shares Application A/c ...Dr. 40,00,000
To Equity Share Capital A/c (54,000 × ` 50) 27,00,000
To Equity Shares Allotment A/c (40,000 × ` 10) 4,00,000
To Calls-in-Advance A/c ` (40,00,000 – 27,00,000 – 4,00,000) 9,00,000
(Being the application money adjusted)
Equity Shares Allotment A/c ...Dr. 5,40,000
To Equity Share Capital A/c 5,40,000
(Being the allotment money due on 54,000 shares @ ` 10 per share)
Bank A/c (WN 3) ...Dr. 1,88,000
To Equity Shares Allotment A/c 1,40,000
To Calls-in-Advance A/c (1,200 × ` 40) 48,000
(Being the allotment money received and advance of call money
on 1,200 shares)
Equity Shares First and Final Call A/c (54,000 × ` 40) ...Dr. 21,60,000
To Equity Share Capital A/c 21,60,000
(Being the call money due)
Bank A/c ...Dr. 12,05,000
Calls-in-Advance A/c (` 9,00,000 + ` 48,000) ...Dr. 9,48,000
Calls-in-Arrears A/c (WN 4) ...Dr. 7,000
To Equity Shares First and Final Call A/c 21,60,000
(Being the first and final call money received) (WN 4)