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Model Test Papers M.299

BALANCE SHEET as at 1st April, 2018
Liabilities ` Assets `
Creditors 15,000 Debtors 40,000
Workmen Compensation Claim 750 Less: Provision for Doubtful Debts 2,400 37,600
C’s Loan 2,500 Stock 30,000
Bills Payable (C) 2,500 Patents 8,000
Capital A/cs: Machinery 45,000
A 67,120
B 31,413 98,533
Bank Overdraft 1,317
1,20,600 1,20,600

Working Notes:
1. Unless agreed otherwise, Gaining ratio of continuing partners will be same as their old profit-sharing ratio.
2. Adjustment of Goodwill:
C’s Share of Goodwill = 1/6 of ` 34,800 = ` 5,800, which will be contributed by A and B in their gaining ratio.
17. In the Books of Exe Ltd.
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. 2,10,000
To Equity Shares Application A/c 2,10,000
(Being the application money received for 70,000 shares)
Equity Shares Application A/c ...Dr. 2,10,000
To Equity Share Capital A/c 1,50,000
To Equity Shares Allotment A/c 30,000
To Bank A/c 30,000
(Being the application money rejected on 10,000 shares and shares
issued to remaining applicants on pro rata)
Equity Shares Allotment A/c ...Dr. 2,50,000
To Equity Share Capital A/c 1,50,000
To Securities Premium Reserve A/c 1,00,000
(Being the shares allotment money due @ ` 5 each including
premium of ` 2 per share)
Bank A/c ...Dr. 2,17,800
To Equity Shares Allotment A/c 2,17,800
Or
Bank A/c ...Dr. 2,17,800
Calls-in-Arrears A/c ...Dr. 2,200
To Equity Shares Allotment A/c 2,20,000
(Being the shares allotment money received except on 500 shares)
Equity Shares First Call A/c ...Dr. 1,00,000
To Equity Share Capital A/c 1,00,000
(Being the shares first call money due @ ` 2 each)