Page 429 - AAAXII

M.410 An Aid to Accountancy—CBSE XII

10. Complete the following Journal entries for forfeiture and reissue of shares:

JOURNAL

Date Particulars L.F. Dr. (`) Cr. (`)
Equity Share Capital A/c (20 × ` 7) ...Dr. 140
To Calls-in-Arrears A/c ?
To Forfeited Shares A/c ?
(Being 20 equity shares forfeited for non-payment of first call of ` 2 per share)
Bank A/c ...Dr. 120
To Equity Share Capital A/c ?
To Securities Premium Reserve A/c ?
(Being 15 equity shares reissued as ` 7 paid-up for ` 8 per share)
? ...Dr. ?
To ? ?
(Being the transfer of gain on reissue of 15 shares)
Or
Pass necessary Journal entries relating to issue of debentures for the following:
(i) Issued ` 4,00,000, 9% Debentures of ` 100 each at a premium of 8%, redeemable
at 10% premium.
(ii) Issued ` 6,00,000, 9% Debentures of ` 100 each at a par, repayable at a premium
of 10%.
(iii) Issued ` 10,00,000, 9% Debentures of ` 100 each at a premium of 5%, redeemable
at par. (3)
11. P, Q and R were partners in a firm sharing profits in 2 : 2 : 1 ratio. The firm closes its
books on 31st March every year. P died three months after the final accounts for the
year ended 31st March, 2018 were prepared. On that date, goodwill of the firm was
valued at ` 90,000. On the death of a partner, his share of profit in the year of death
was to be calculated on the basis of the average profit of the last four years. The profits
of last four years were: `

Year ended 31st March, 2018 2,00,000
Year ended 31st March, 2017 1,80,000
Year ended 31st March, 2016 2,10,000

Year ended 31st March, 2015 1,70,000 (Loss)
Pass necessary Journal entries for goodwill and P’s share of profit on his death. Show
clearly the calculation of P’s share of profit. (4)
12. A, B and C are partners in a firm sharing profits and losses in the ratio of 2 : 3 : 1.
They decide to share future profits and losses in the ratio of 3 : 2 : 1 with effect from
1st April, 2018. Their Balance Sheet showed a debit balance of ` 24,000 in Profit and
Loss Account and a balance of ` 1,44,000 in General Reserve. For this purpose, it was
agreed that: