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M.254 An Aid to Accountancy—CBSE XII

Pass Journal entries in each of the following alternative cases:
Case I : When no other information is given.
Case II : When market value of investments is ` 2,42,500.
Case III : When market value of investments is ` 2,75,000. (3)
8. Z Ltd. purchased a running business from Y Ltd. for ` 6,00,000 payable 10% by cheque
and balance by the issue of fully paid 10% Debentures of ` 100 each at a premium of 20%.
The assets and liabilities were as follows:
Building ` 3,00,000; Plant and Machinery ` 1,00,000; Stock ` 2,00,000; Sundry Debtors
` 1,00,000; Sundry Creditors ` 80,000.
Pass necessary Journal entries in the books of Z Ltd.
Or
Pass the necessary Journal entries for the issue of debentures in the following cases:
(a) ` 40,000, 9% Debentures of ` 100 each issued at par redeemable at 10% premium.
(b) ` 90,000, 9% Debentures of ` 100 each issued at a discount of 5% redeemable at a
premium of 10%. (3)

9. From the following information, compute Advance Subscription as on 31st March, 2018:
(a) A Club has 39 members, each paying an annual subscription of ` 600.
(b) Subscription received during the year ` 30,000.
(c) Subscription received in Advance as at 31st March, 2017 ` 6,000.
(d) Subscription outstanding as at 31st March, 2018 ` 5,400.
(e) Subscription outstanding as at 31st March, 2017 ` 10,800.
(f) Subscription of ` 4,200 are still in arrears for the year 2016–17. (3)
10. Strong Ltd. has ` 20,00,000; 9% Debentures of ` 100 each due for redemption on
1st October, 2018 at a premium of 5%. The company decides to redeem them out of
profits. The company has Debentures Redemption Reserve of ` 10,35,000.
Pass necessary Journal entries for redemption of debentures. (3)
11. A, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 2 respectively.
B decides to retire from the firm with effect from 31st March, 2018 when the capitals
of A, B and C before the adjustments stood at ` 2,19,500, ` 1,14,000 and ` 1,16,500.
Firm’s Goodwill was ` 2,16,000, Loss on Revaluation of Assets and Reassessment of
Liabilities was ` 27,000 and General Reserve was ` 63,000. Total capital of the newly
constituted firm is agreed at ` 2,80,000 between A and C in the ratio of 5 : 3.
Calculate the amount to be paid or to be brought by the continuing partners and
prepare Partners’ Capital Accounts. (4)
12. X, Y and Z are partners sharing profits equally. Their capitals were ` 3,00,000 (Credit),
` 2,50,000 (Credit) and ` 20,000 (Debit) respectively on 1st April, 2017. Partnership
Deed provides the following:
(a) 10% of Net Profit to be transferred to General Reserve.
(b) Partners are to be allowed interest on capital @ 5% p.a. and are to be charged
interest on drawings @ 6% p.a.