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M.386 An Aid to Accountancy—CBSE XII

Or
The Balance Sheet of Madan and Mohan, who share profits and losses in the ratio of
3 : 2, on 31st March, 2018 was as follows:
Liabilities ` Assets `
Creditors 28,000 Cash at Bank 10,000
Workmen Compensation Reserve 12,000 Debtors 65,000
General Reserve 20,000 Less: Provision for Doubtful Debts 5,000 60,000
Capital A/cs: Stock 30,000
Madan 60,000 Investment 50,000
Mohan 40,000 1,00,000 Patents 10,000
1,60,000 1,60,000
They admitted Gopal a differently abled person, on 1st April, 2018 for 1/4th share on
the following terms:
(i) Gopal shall bring ` 20,000 as his share of premium for goodwill.
(ii) That unaccounted accrued income of ` 1,000 be provided for.
(iii) Market value of investment was ` 45,000.
(iv) A debtor whose dues of ` 10,000 were written off as bad debts paid ` 4,000 in full
settlement.
(v) A claim of ` 3,000 on account of workmen compensation to be provided for.
(vi) Patents were overvalued by ` 2,000.
(vii) 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 Balance Sheet of
the new firm. (8)
17. Jyoti Ltd. invited applications for 50,000 equity shares of ` 10 each at par. The amount
was payable as follows:
On Application ` 2 per share
On Allotment ` 4 per share
On First and Final Call Balance Amount
The issue was subscribed three times. Applications for 30% shares were rejected and
money refunded. Allotment was made to the remaining applicants as follows:
Category No. of Shares Applied No. of Shares Allotted
I 80,000 40,000
II 25,000 10,000.
Excess money paid by the applicants who were allotted shares was adjusted towards
the sums due on allotment. Deepak, a shareholder belonging to Category I, who had
applied for 1,000 shares, failed to pay the allotment money. Raju, a shareholder holding
100 shares, also failed to pay the allotment money. Raju belonged to Category II. Shares
of both Deepak and Raju were forfeited immediately after allotment. Afterwards, first
and final call was made and was duly received. The forfeited shares of Deepak and
Raju were reissued at ` 11 per share fully paid-up.