Page 109 - AAAXII

M.102 An Aid to Accountancy—CBSE XII
Or
A Ltd. purchased machinery from Kiran Machines Ltd. and paid them by issuing a cheque
for ` 60,000 and balance by issue of 4,000, 10% Debentures of ` 100 each at 10% premium.
On the basis of above information, complete the following Journal entries:
Date Particulars L.F. Dr. (`) Cr. (`)
? ...Dr. ?
To ? ?
(?)
? ...Dr. ?
To ? ?
To ? ?
To ? ?
(?)
(3)
9. Max Ltd. had 15,000, 10% Debentures of ` 100 each outstanding as on 1st April, 2017,
redeemable at a premium of 15% on 31st March, 2018. It decided to redeem the
debentures out of profits. Assume that the company had adequate balance in
Debentures Redemption Reserve and had invested on 1st April, 2017 the required
amount in Bank Fixed Deposit earning interest @ 8% p.a. Bank deducted TDS @ 10%.
All debentures were redeemed as per the terms of issue.
Pass the necessary Journal entries in the books of the company for the redemption of the
debentures. (3)
10. X, Y and Z are partners in a firm. On 1st April, 2017, their capitals stood at ` 8,00,000;
` 6,00,000; and ` 4,00,000 respectively. As per provisions of the Partnership Deed:
(i) Z is entitled to a salary of ` 40,000 per annum.
(ii) Partners are entitled to interest on capital @ 10% p.a.
(iii) Partners will share profits in the ratio of 2 : 2 : 1.
Net profit for the year ended 31st March, 2018 was ` 3,00,000 which was distributed
equally, without taking into consideration the above provisions.
Pass the necessary Journal entries to rectify the errors. (3)
11. Rohit and Sahil started business on 1st April, 2017 with capitals of ` 8,00,000 and
` 6,00,000 respectively. On 1st October, 2017, Rohit granted a loan of ` 2,00,000 to the
firm. The terms of partnership agreement are as follows:
(a) 10% of Profits before charging Interest on Drawings but after making appropriations
to be transferred to General Reserve.
(b) Interest on Capital @ 6% p.a. and Interest on Drawings @ 5% p.a.
(c) Rohit to get a monthly salary of ` 10,000 and Sahil to get salary of ` 45,000 per quarter.
(d) Rohit is entitled to a commission of 1% on Sales. Sales for the year were ` 35,00,000.
(e) Profits and Losses to be shared in the ratio of their capital contribution up to
` 3,50,000 and balance equally.
Profit for the year ended 31st March, 2018, before providing for any Interest was
` 9,22,000. Drawings of Rohit and Sahil were ` 4,00,000 and ` 5,00,000 respectively.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018. (4)