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M.280 An Aid to Accountancy—CBSE XII

9. X Ltd. has ` 8,00,000, 9% Debentures due to be redeemed on 31st March, 2018 at a
premium of 5%. The company had a Debentures Redemption Reserve of ` 1,14,000.
Pass necessary Journal entries at the time of redemption. (3)
10. Sharma Ltd. bought the business of Verma Ltd. on 1st April, 2018 consisting of Sundry
Assets of ` 2,80,000 and Creditors ` 50,000. ` 50,000 was paid in cash on 3rd April,
2018 and for the balance, 6% Debentures of ` 100 each were issued at a premium of
20% on 5th April, 2018. Pass necessary Journal entries in the books of Sharma Ltd.
for the above mentioned transactions.
Or
Star Ltd. issued 5,000; 12% Debentures of ` 100 each at par, redeemable after five years.
The company also raised a short-term loan of ` 4,00,000 from State Bank of India and issued
4,500; 12% Debentures of ` 100 each as a collateral security for the same. How will be the
debentures shown in the Balance Sheet of the company assuming that the company has
passed Journal entry for the issue of debentures as collateral security in the books? (3)
11. A, B and C entered into partnership on 1st April, 2015 to share profits and losses in the
ratio of 12 : 8 : 5. It was provided that in no case C’s share of profit will be less than
` 1,25,000 p.a. The profits and losses for the years ended 31st March, were:

2015–16 2016–17 2017–18
Profit: ` 5,00,000 Profit: ` 7,50,000 Loss: ` 5,00,000
Pass the necessary Journal entries in the books of the firm. (4)
12. X, Y and Z are partners sharing profits in the ratio of 2 : 2 : 1. Their Balance Sheet as
at 31st March, 2018 was:

Liabilities ` Assets `
Capital A/cs: Goodwill 24,000
X 80,000 Machinery 70,000
Y 1,20,000 Investments (Market Value ` 77,000) 80,000
Z 2,00,000 4,00,000 Stock 30,000
General Reserve 30,000 Debtors 90,000
Workmen Compensation Reserve 10,000 Less: Provision for Doubtful Debts 6,000 84,000
Investment Fluctuation Reserve 5,000 Cash and Bank 1,87,000
Sundry Creditors 40,000 Advertisement Suspense A/c 10,000
4,85,000 4,85,000
From 1st April, 2018, the partners decided to share profits equally and for that purpose
the following was agreed:
(a) Goodwill to be valued at ` 1,50,000.
(b) Machinery is to be depreciated by ` 10,000 and Stock is found undervalued by ` 5,000.
(c) Provision for Doubtful Debts is to be raised to 10% of the Debtors.
(d) Claim on account of Workmen Compensation is ` 6,000.
Determine the sacrifice and gain made by each partner. Also, prepare Revaluation
Account and Partners’ Capital Accounts. (4)