Page 205 - AAAXII

Model Test Papers M.195

Working Notes:
1. Accounting Entries for Bad Debts:

Date Particulars L.F. Dr. (`) Cr. (`)
Bad Debts A/c ...Dr. 30,000
To Sundry Debtors A/c 30,000

Provision for Doubtful Debts A/c ...Dr. 20,000
Revaluation A/c ...Dr. 10,000
To Bad Debts A/c 30,000
2
2. Kusum’s Share of Goodwill = ` 2,80,000 × = ` 80,000
7
Kusum’s Share of Goodwill will be contributed by Sneh and Usha in their gaining ratio.
Gain = New Share – Old Share
3 3
Sneh’s Gain = - = Nil
7 7
4 2 2
Usha’s Gain = - =
7 7 7
Only Usha is the gaining partner, so she will contribute towards Kusum’s Share of Goodwill.
3. Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 2,00,000 By Kusum’s Capital A/c 1,00,000
To Sneh’s Capital A/c 24,000 By Balance c/d 6,20,000
To Usha’s Capital A/c 4,96,000
7,20,000 7,20,000

4. Adjustment of Capital:
Total Capital of new firm = ` 14,00,000 will be contributed by Sneh and Usha in 3 : 4 ratio.
3
Thus, Sneh’s Capital in New Firm = ¥ 14,00,000` = ` 6,00,000;
7
4
Usha’s Capital in New Firm = ¥ 14,00,000` = ` 8,00,000.
7
17. In the Books of Fable Ltd.
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 46,25,000
To Shares Application A/c 46,25,000
(Being the application money received for 92,500 shares @ ` 50 each)
Shares Application A/c ...Dr. 46,25,000
To Share Capital A/c (50,000 × ` 50) 25,00,000
To Bank A/c (30,000 × ` 50) 15,00,000
To Shares Allotment A/c (12,500 × ` 50) 6,25,000
(Being the application money adjusted and surplus
refunded upon allotment)