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M.356 An Aid to Accountancy—CBSE XII

capital. Profit before any interest for the year ending 31st March, 2018 amounted
to ` 15,200. There is no Partnership Deed. Both Naman and Aman expected
interest @ 10% per annum on the loan and additional capital advanced by them.
Prepare Profit and Loss Appropriation Account. (3)
8. From the following information, calculate the subscription income for the year 2017–18
of a Sports Club:
(i) Subscription relating to the year 2017–18 received in 2016–17: ` 20,000.
(ii) Subscription relating to the year 2016–17 received in 2017–18: ` 50,000.
(iii) Subscription relating to the year 2018–19 received in 2017–18: ` 40,000.
(iv) Total subscription received in the year 2017–18 was ` 8,00,000. (3)
9. On 1st April, 2018, AB Ltd. issued 10,000, 10% Debentures of ` 100 each at 8% discount
payable:
` 40 on application
The balance on allotment.
The debentures were to be redeemed at a premium of 5% after five years. All the
debentures were subscribed for by the public.
Interest on these debentures was to be paid yearly which was duly paid by the company.
You are required to:
(i) Pass Journal entries for the issue of debentures (Ignore interest).
(ii) Prepare 10% Debentures Account.
Or
Yes Ltd. issued 5,000, 9% Debentures of ` 100 each at par and also raised a loan of
` 80,000 from bank, collaterally secured by ` 1,00,000, 9% Debentures. How will it be shown
in the Balance Sheet of the company assuming that the company has passed a Journal
entry for issue of Debentures as collateral security in the books? Also Journalise the issue
of debentures. (3)
10. Anupama Ltd. had issued 10,000, 9% Debentures of ` 100 each at par redeemable at
par at the end of 4 years. The Board of Directors decided to transfer the minimum
required amount to Debentures Redemption Reserve as per the Companies Act, 2013,
at the time of redemption. Record necessary Journal entries at the time of Redemption
of Debentures and creation of Debentures Redemption Reserve.
Assume that investments, as required by Rules framed under Section 71(4), 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 the investment is also
received @ 8% per annum for the full year.
Accounting entry for interest on investment is not required. (3)
11. X and Y partners in a firm, agreed to appropriate the profits of their firm on the
following terms:
(a) Interest @ 5% p.a. is to be provided on capital.
(b) X will be entitled to a remuneration of ` 5,000 per month.
(c) Interest on loan to be given by the firm to the partners @ 8% p.a.
(d) Interest on drawings to be charged from the partners @ 5% p.a.