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Model Test Papers M.361

On 1st April, 2018, they admit Sonu into partnership on the following terms:
(i) Sonu will bring ` 56,000 as his share of capital.
(ii) Goodwill of the firm is valued at ` 84,000 and Sonu will bring his share of Goodwill
in cash. No goodwill is to appear in the books.
(iii) Machinery is appreciated by 20%.
(iv) All debtors are good.
(v) There is a liability of ` 9,800 included in Creditors, which is not likely to arise.
(vi) New profit-sharing ratio will be 2 : 1 : 1.
(vii) Capitals of Annu and Mannu will be adjusted on the basis of Sonu’s share of
capital and any excess or deficiency will be made good by withdrawing or bringing
amount by the concerned partner as the case may be.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet
of the new firm. (8)
17. XYZ Ltd. invited applications for 60,000 equity shares of ` 10 each at a premium of
` 2.50 per share payable on application. The amount payable on allotment was fixed
at ` 4 per share and an equivalent sum was due on first and final call. Applications
were received for 1,10,000 shares which were categorised into A—70,000 Shares;
B—35,000 Shares; and C—5,000 Shares. Allotment was made as follows:
Category Applications Received Allotment of Shares
A 70,000 shares 42,000 shares
B 35,000 shares 14,000 shares
C 5,000 shares 4,000 shares

1,10,000 shares 60,000 shares
It was decided that excess amount received on application would be appropriated in
payment of allotment money and surplus, if any, would be refunded to the applicants.
Amar who belonged to Category A had applied for 100 shares, defaulted in payment
of allotment and call.
Deep who belonged to Category C and was allotted 800 shares failed to pay the call
money.
Their shares were forfeited after the call and reissued as fully paid up for ` 8 and
` 6 per share respectively.
Pass necessary Journal entries in the books of the company. Working notes should be
part of your answer.
Or
EP Ltd. invited applications for 2,00,000 equity shares of ` 10 each at a premium of
10% payable as follows:
On application (1st June, 2017) : ` 5 per share;
On allotment (1st August, 2017) : ` 3 per share (including premium);
On Call (28th September, 2017) : ` 3 per share.