Page 276 - AAAXII

Model Test Papers M.263

` 36,000 2
6. X’s Share of Profit = ¥ ` 1,00,000 ¥ = ` 4,800.
` 3,00,000 5
7. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2018 Case I
April 1 Investment Fluctuation Reserve A/c ...Dr. 12,500
To A’s Capital A/c 5,000
To B’s Capital A/c 7,500
(Being the Investment Fluctuation Reserve distributed)
Case II
Investment Fluctuation Reserve A/c ...Dr. 12,500
To Investments A/c 7,500
To A’s Capital A/c 2,000
To B’s Capital A/c 3,000
(Being the excess reserve distributed after adjusting fall in
value of investments)
Case III
Investment Fluctuation Reserve A/c ...Dr. 12,500
To A’s Capital A/c 5,000
To B’s Capital A/c 7,500
(Being the Investment Fluctuation Reserve appropriated)
Investments A/c ...Dr. 25,000
To Revaluation A/c 25,000
(Being the increase in value of investments recorded)
Revaluation A/c ...Dr. 25,000
To A’s Capital A/c 10,000
To B’s Capital A/c 15,000
(Being the gain (profit) on revaluation distributed)

8. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Building A/c ...Dr. 3,00,000
Plant and Machinery A/c ...Dr. 1,00,000
Stock A/c ...Dr. 2,00,000
Sundry Debtors A/c ...Dr. 1,00,000
To Sundry Creditors A/c 80,000
To Y Ltd. 6,00,000
To Capital Reserve A/c (Balancing Figure) 20,000
(Being the business of Y Ltd. purchased)
Y Ltd. ...Dr. 60,000
To Bank A/c 60,000
(Being 10% payment made to Y Ltd. by cheque)
Y Ltd. ...Dr. 5,40,000
To 10% Debentures A/c 4,50,000
To Securities Premium Reserve A/c 90,000
(Being 4,500; 10% Debentures issued at 20% premium for the balance) (Note)

` 5,40,000
Note: No. of Debentures to be Issued = = 4,500 Debentures.
` 120