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Model Test Papers M.393

2018
March 31 TDS Collected (Receivable) A/c (` 67,500 × 10%) ...Dr. 6,750
Bank A/c (` 7,50,000 + ` 67,500 – ` 6,750) ...Dr. 8,10,750
To Debentures Redemption Investment A/c 7,50,000
To Interest Earned A/c (` 7,50,000 × 9%) 67,500
(Being the fixed deposit encashed on redemption and interest
received @ 9% p.a. after 10% TDS)
March 31 10% Debentures A/c ...Dr. 50,00,000
Premium on Redemption of Debentures A/c ...Dr. 5,00,000
To Debentureholders’ A/c 55,00,000
(Being the amount due to debentureholders)
March 31 Debentureholders’ A/c ...Dr. 55,00,000
To Bank A/c 55,00,000
(Being the amount due paid on redemption)
March 31 Debentures Redemption Reserve A/c ...Dr. 12,50,000
To General Reserve A/c 12,50,000
(Being the Debentures Redemption Reserve transferred to
General Reserve)
March 31 Interest Earned A/c ...Dr. 6,750
To Statement of Profit and Loss (Other Income) 6,750
(Being the interest on DRI transferred)
11.
Dr. Y’S CAPITAL ACCOUNT Cr.
Particulars ` Particulars `

To Goodwill A/c (written off) (` 20,000 × 3/10) 6,000 By Balance b/d 60,000
To Y’s Executors’ A/c (Balancing Figure) 1,32,225 By Profit and Loss Suspense A/c (WN 2) 1,125
By X’s Capital A/c (WN 3) 20,571
By Z’s Capital A/c (WN 3) 51,429
By Workmen Compensation Reserve A/c 3,600
(` 12,000 × 3/10)
By Interest on Capital A/c 1,500
(` 60,000 × 10/100 × 3/12)
1,38,225 1,38,225

Dr. Y’S EXECUTORS’ ACCOUNT Cr.
Particulars ` Particulars `
To Balance c/d 1,32,225 By Y’s Capital A/c 1,32,225
1,32,225 1,32,225
Working Notes:
1. Profit-sharing Ratio of X, Y and Z = Capital Ratio = 2 : 3 : 5.
3 3
2. Y’s Share of Profit = ` 15,000 × ¥ = ` 1,125.
12 10
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3. Y’s Share of Goodwill = ` 2,40,000 × = ` 72,000, which is contributed by X and Z in their gaining
10 ratio, i.e., 2 : 5. Thus,
2
X’s Contribution = ` 72,000 × = ` 20,571;
7
5
Z’s Contribution = ` 72,000 × = ` 51,429.
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