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Model Test Papers M.105
Or

Moti Ltd. invited applications for 10,00,000 Equity Shares of ` 10 each at a premium
of ` 2 per share. The amount was payable as follows:
On Application — ` 5 (including premium),

On Allotment — ` 4,
On First and Final call — ` 3.
Applications for 15,00,000 shares were received. Applications for 3,00,000 shares
were rejected and pro rata allotment was made to the remaining applicants. Excess
application money was used towards amount due on allotment. Giri who had applied
for 24,000 shares failed to pay the allotment and call money. His shares were forfeited.
Out of the forfeited shares, 10,000 shares were reissued for ` 8 per share fully paid-up.
Pass necessary Journal entries in the books of Moti Ltd. to record the above transactions
assuming that Calls-in-Arrears Account is maintained. (8)
17. B and C are partners in a firm sharing profits and losses in the ratio of 5 : 3. They
admit A into the firm on 1st April, 2018, when their Balance Sheet was as follows:
Liabilities ` Assets `
B’s Capital 3,20,000 Goodwill 80,000
C’s Capital 3,40,000 Machinery 3,80,000
General Reserve 80,000 Furniture 50,000
Bank Loan 60,000 Debtors 2,30,000
Creditors 60,000 Stock 70,000
Bank 50,000
8,60,000 8,60,000

Terms of A’s admission were as follows:
(i) A will bring ` 3,00,000 through cheque as his share of capital and will get
1/3rd share in profits.
(ii) A is not to bring goodwill in cash. B and C raise goodwill in the books which
is valued on the basis of 2 years’ purchase of the average profit of the last
three years.
(iii) Average profit of the last three years is ` 60,000.
(iv) Machinery and stock are revalued at ` 4,50,000 and ` 80,000 respectively.
(v) By bringing in or withdrawing cash, the capitals of B and C are to be made
proportionate to that of A on their profit-sharing basis.
Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the
firm after taking into account the above adjustments.
Or
Smart & Co. has three partners A, B and C who shared profits and losses
in the ratio of 5 : 3 : 2 respectively. Following was their Balance Sheet as on
31st March, 2018: