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M.258 An Aid to Accountancy—CBSE XII

Other terms of agreement were:
(i) C will bring ` 12,000 for his share of goodwill.
(ii) Building was valued at ` 45,000 and Machinery at ` 23,000.
(iii) A Provision of Doubtful Debts was created @ 6% on Sundry Debtors.
(iv) ‘X’ an old customer whose account was written off as bad promised in writing to pay
` 3,500 in settlement of his full debt of ` 5,000.
(v) Revaluation expenses paid by the firm were ` 3,500.
(vi) Capital Accounts of A and B were adjusted by opening Current Accounts.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of
A, B and C.
Or
A, B and C are partners sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance
Sheet as at 31st March, 2018 was as follows:
Liabilities ` Assets `
Creditors 30,000 Cash in Hand 18,000
Bills Payable 16,000 Debtors 25,000
General Reserve 6,000 Less: Provision for Doubtful Debts 3,000 22,000
Workmen Compensation Reserve 6,000 Stock 18,000
Capital A/cs: Furniture 30,000
A 40,000 Machinery 70,000
B 40,000 Goodwill 10,000
C 30,000 1,10,000
1,68,000 1,68,000
B retired from business on 1st April, 2018 on the following terms:
(i) Stock to be reduced by 10% and furniture by 5%.
(ii) Creditors were overvalued by ` 3,900.
(iii) Goodwill of the firm is valued at ` 22,000.
(iv) B is paid in full with the cash brought in by A and C in such a manner that their
capitals are in proportion to their new profit-sharing ratio of 3 : 2 and cash in
hand remains at ` 10,000.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet
of new firm. (8)
17. PQ Ltd., issued for subscription 1,00,000 Equity Shares of ` 10 each at premium of
20% payable as follows:
On Application : ` 2;
On Allotment : ` 4 (including ` 2 premium);
On First Call : ` 5;
On Second and Final Call : ` 1.
Applications were received for 1,90,000 shares. The shares were allotted on pro rata
basis to the applicants for 1,50,000. Excess Application Money was appropriated towards
payment due on allotment and amount was refunded to unsuccessful applicants.
(i) Asha to whom 1,000 shares were allotted, expressed her inability to pay allotment
money. These shares were forfeited just after allotment.