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Model Test Papers M.31

Or
Record the Journal entries for forfeiture and reissue of shares in the following cases:
(a) X Ltd. forfeited 20 shares of ` 10 each, ` 7 called-up on which the shareholder had
paid application and allotment money of ` 5 per share. Amount not received on call
is transferred to Calls-in-Arrears Account. Out of these, 15 shares were reissued
to Naresh as ` 7 per share paid-up for ` 8 per share.
(b) Y Ltd. forfeited 90 shares of ` 10 each, ` 8 called-up issued at a premium of
` 2 per share to ‘R’ for non-payment of allotment money of ` 5 per share (including
premium). Out of these, 80 shares were reissued to Sanjay as ` 8 called-up for
` 10 per share.
(c) Z Ltd. forfeited 50 shares of ` 100 each issued at 10% premium (to be paid at the
time of allotment) for non-payment of first call of ` 30 per share. The second and
final call of ` 20 per share was not yet made. 20 of these shares were reissued at
` 80 paid-up for ` 30 per share. (8)
17. Madan and Mohan are partners in a firm sharing profits and losses in the ratio of
3 : 2. Their Balance Sheet as on 31st March, 2018 is as follows:
Liabilities ` Assets `
Creditors 28,000 Cash at Bank 10,000
Workmen’s Compensation Reserve 12,000 Debtors 65,000
General Reserve 20,000 Less: Provision for Doubtful Debts 5,000 60,000
Madan’s Capital 60,000 Stock 30,000
Mohan’s Capital 40,000 Investments 50,000
Patents 10,000
1,60,000 1,60,000

The partners agreed to take Gopal as a partner for 1/4th share with effect from 1st
April, 2018 on the following terms:
(a) Gopal shall bring ` 25,000 as his share of premium for goodwill.
(b) That unaccounted accrued income of ` 500 be provided for.
(c) Market value of the investments was ` 45,000.
(d) A debtor whose dues of ` 1,000 were written off as bad debts paid ` 800 in full
settlement.
(e) A claim of ` 2,000 on account of workmen’s compensation to be provided for.
(f ) Patents are undervalued by ` 5,000.
(g) Gopal to bring in capital equal to 1/4th of the total capital of the new firm after
all adjustments.
Prepare Revaluation Account, Capital Accounts of the Partners and the Balance Sheet
of the new firm.
Or
A, B and C were partners in a firm sharing profits in 3 : 2 : 1 ratio. On 31st March,
2015 B retired. On the date of his retirement, the balance in his Capital Account was
` 3,50,000. The other assets and liabilities of the firm on that date were as follows:
Cash ` 1,50,000; Building ` 10,00,000; Plant and Machinery ` 4,00,000; Stock
` 2,00,000; Debtors ` 2,00,000; and Investments ` 3,00,000.