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M.312 An Aid to Accountancy—CBSE XII

On 1st April, 2018, Nirmal decided to retire from the firm and was paid for his share
in the firm and it was agreed as follows:
(i) Building to be appreciated by 20%.
(ii) Provision for Doubtful Debts to be increased to 15% on Debtors.
(iii) Machinery to be valued at 20% less.
(iv) Goodwill of the firm is valued at ` 1,44,000 and the retiring partner’s share is
adjusted through the Capital Accounts of remaining partners.
(v) Capital of the new firm be fixed at ` 2,40,000.
Nirmal requested the firm to pay his dues immediately as he needs money for his
wife’s cancer operation. The firm accepted his request and paid his dues immediately
by taking bank overdraft for required amount.
Prepare Revaluation Account, Capital Accounts of the partners, Bank Account and
the Balance Sheet after Nirmal’s retirement. (8)

17. (a) A Ltd. issued to the public for subscription 40,000 shares of ` 10 each at par payable
as ` 2 each on application, allotment and first call and balance on the final call.
Applications were received for 60,000 shares and allotment was made on pro rata
basis to 80% of applicants. R to whom 1,600 shares were allotted paid only the
application money, and S who had applied for 2,400 shares paid the entire call
money due along with the allotment.
Pass necessary Journal entries to record the above transactions assuming that
Calls-in-Arrears Account is maintained.
(b) Pass necessary Journal entries for redemption of debentures in the following case:
10,000; 10% Debentures of ` 120 each issued at 5% premium, repayable at par.

Or
(a) Petromax Ltd. issued 50,000 shares of ` 10 each at a premium of ` 2 per share
payable as ` 3 on application, ` 5 on allotment (including premium) and the balance
in equal instalments over two calls. Applications were received for 92,000 shares
and the allotment was done as under:
Category A. Applicants of 40,000 shares : Allotted 30,000 shares
Category B. Applicants of 40,000 shares : Allotted 20,000 shares
Category C. Applicants of 12,000 shares : Nil
Suresh, who had applied for 2,000 shares in Category A did not pay any money
other than application money.
Chander, who was allotted 800 shares in Category B paid the call money due along
with allotment money.
All other allottees paid their dues as per schedule.
Pass necessary Journal entries in the books of Petromax Ltd. to record the above
transactions assuming that Calls-in-Arrears Account is maintained.
(b) Pass necessary Journal entries for redemption of debentures in the following case:
20,000; 9% Debentures of ` 200 each issued at 20% premium, repayable at
30% premium. (5 + 3)