Page 305 - AAAXII

Model Test Papers M.291

Or
BALANCE SHEET OF STAR LTD. (An Extract) as at...
Particulars Note No. `

I. EQUITY AND LIABILITIES
1. Non-current Liabilities
Long-term Borrowings 1 5,00,000
2. Current Liabilities
Short-term Borrowings 2 4,00,000

Notes to Accounts
Particulars `
1. Long-term Borrowings
5,000; 12% Debentures of ` 100 each 5,00,000
2. Short-term Borrowings
Loan from State Bank of India 4,00,000
4,500; 12% Debentures of ` 100 each issued as collateral security 4,50,000
Less: Debentures Suspense A/c 4,50,000 ...
4,00,000

11. Table Showing Deficiency in C’s Share in Profits
Particulars 2015–16 (`) 2016–17 (`) 2017–18 (`)
I. Guaranteed Profit 1,25,000 1,25,000 1,25,000
II. C’s Share of Profit and Loss ` 5,00,000 × 5/25 ` 7,50,000 × 5/25 (` 5,00,000 × 5/25)
as per Profit-sharing Ratio = ` 1,00,000 = ` 1,50,000 = (` 1,00,000)
III. Deficiency (I – II) 25,000 ... 2,25,000
Since no specific ratio in which the deficiency is to be borne is given, it means A and B shall
bear the deficiency in their agreed profit-sharing ratio which is 12 : 8 or 3 : 2.
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2016
March 31 Profit and Loss Appropriation A/c ...Dr. 5,00,000
To A’s Capital A/c 2,40,000
To B’s Capital A/c 1,60,000
To C’s Capital A/c 1,00,000
(Being the distribution of profits as if there is no guarantee)
A’s Capital A/c ...Dr. 15,000
B’s Capital A/c ...Dr. 10,000
To C’s Capital A/c 25,000
(Being the deficiency met by guaranteeing partners)
2017
March 31 Profit and Loss Appropriation A/c ...Dr. 7,50,000
To A’s Capital A/c 3,60,000
To B’s Capital A/c 2,40,000
To C’s Capital A/c 1,50,000
(Being the distribution of profits)