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M.332 An Aid to Accountancy—CBSE XII

8. A, B and C are partners sharing profits and losses in the ratio of 5 : 3 : 2. They now
decide to share future profits and losses equally. Goodwill of the firm is valued at
` 90,000. Goodwill appears in the books at ` 40,000. Pass necessary Journal entries
to adjust goodwill. (3)
9. Jaypee Construction Ltd. an infrastructure company has 10,000; 8% Debentures of
` 100 each outstanding as on 31st March, 2017. These Debentures are due for
redemption on 31st March, 2018. The company has a balance of ` 1,75,000 in Debentures
Redemption Reserve as on 1st April, 2016. Investments, as required by Rule 18(7)(c) of
the Companies (Share Capital and Debentures) Rules, 2014 were made on 1st April of
the financial year in which redemption is due and realised at book value at the end of the
same financial year. Interest on investment is also received @ 10% p.a. for the year.
Pass necessary Journal entries regarding redemption of debentures. (3)
10. From the following extract of Receipts and Payments Account and the additional
information, you are required to calculate income from Subscriptions for the year
ending 31st March, 2018 and show them in the Income and Expenditure Account, and
the Balance Sheet of Delhi Football Club:

Dr. AN EXTRACT OF RECEIPTS AND PAYMENTS ACCOUNT for the year ending on 31st March, 2018 Cr.
Receipts ` Payments `
To Subscription:
2016–17 1,00,000
2017–18 6,00,000
2018–19 1,20,000 8,20,000
Additional Information:
(i) Subscription outstanding on 31st March, 2017 ` 1,20,000
(ii) Subscription outstanding on 31st March, 2018 ` 1,00,000
(iii) Subscription received in advance on 31st March, 2017 ` 1,20,000
(3)
11. A and B were partners in a firm sharing profits in the ratio of 4 : 1. On 1st April, 2017,
they admitted C as a new partner for 1/3rd share in the profits of the firm. Partners
agreed to share future profits in the ratio of 4 : 2 : 3.
On the date of admission, Profit and Loss Account showed a debit balance of ` 32,000
and General Reserve of ` 1,00,000. C is to bring ` 60,000 as premium for his share
of goodwill. They also decided to donate 10% of their distributable profit to an NGO
running an orphanage for children.
Pass necessary Journal entries.
Or
Mala, Neela and Kala are sharing profits and losses in the ratio of 5 : 3 : 2. They decide
to share future profits and losses in the ratio of 2 : 3 : 5 with effect from 1st April, 2018.
They also decide to record the effect of the following accumulated profits, losses and
reserves without affecting their book values, by passing an adjusting entry:
Book Values (`)
General Reserve 28,000
Contingencies Reserve 3,000
Profit and Loss A/c (Cr.) 9,000
Advertisement Suspense A/c (Dr.) 12,000 (4)