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Model Test Papers M.203

JOURNAL ENTRY ON CHANGE IN PROFIT-SHARING RATIO

Date Particulars L.F. Dr. (`) Cr. (`)
2018
April 1 Y’s Capital A/c ...Dr. 2,00,000
To X’s Capital A/c 2,00,000
(Being the adjustment for goodwill made on change in
profit-sharing ratio)
Calculate the Profit for the year 2013–14. (3)
8. (a) What is the nature of ‘Interest on Debentures’?
(b) Complete the following Account:

Dr. FORFEITED SHARES ACCOUNT Cr.
Particulars ` Particulars `
To Share Capital A/c 2,000 By Share Capital A/c 15,000
(Discount on reissue of 200 shares) (Amount forfeited on 500 shares)
? ? ?
To Balance c/d ?
? ?
(1 + 2)
9. State any three differences between a Receipts and Payments Account and an Income
and Expenditure Account. (3)
10. X, Y and Z are in partnership sharing profits and losses in the ratio of 3 : 2 : 1. ‘X’ retires
from the firm as on 1st April, 2015 when his Capital Account shows a credit balance of
` 85,100 after the necessary adjustments. ‘X’ is to be paid ` 25,100 by cheque immediately
on retirement and the balance in three equal annual instalments together with interest
@ 5% p.a. on diminishing balance. Show the necessary ledger accounts. (3)
11. Hero India Ltd. has 5,000; 9% Debentures of ` 100 each outstanding as on
31st March, 2016. The Debentures are due for redemption on 31st March, 2017
at a premium of 10%. The company had a Surplus, i.e., Balance in Statement of
Profit and Loss of ` 5,50,000. Instead of declaring a dividend, it decided to redeem
the debentures out of surplus (profit). The company invested the funds as required
by law in the Specified Securities on 30th April, 2016 earning interest @ 10% p.a.
Record necessary Journal entries at the time of redemption including DRR and DRI.
Or
Omaxe Ltd. issued 2,50,000, 8% Debentures of ` 100 each. Pass the Journal entries
in the books of the company for the issue of debentures when debentures were:
(i) Issued at par, redeemable at 8% premium.
(ii) Issued at 4% premium, redeemable at 5% premium.
(iii) Issued at 5% premium, redeemable at par. (4)
12. A, B, C and D are partners having capitals of ` 2,00,000; ` 1,00,000; ` 60,000 and
` 40,000 respectively. They share profits and losses in the ratio of 3 : 2 : 1 : 1. They
have agreed upon the following terms:
(i) Partners are entitled to interest on capital @ 7%.