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M.414 An Aid to Accountancy—CBSE XII

(i) Land and Building to be appreciated by 30%.
(ii) Machinery be depreciated by 20%.
(iii) There were bad debts of ` 17,000.
(iv) The claim on account of workmen compensation was determined at ` 8,000.
(v) Stock is valued at ` 1,25,000.
(vi) Outstanding Rent amounted to ` 25,000.
(vii) Goodwill of the firm was valued at ` 1,40,000 and Aruna’s share of Goodwill be
adjusted against the Capital Accounts of the continuing partners Karuna and
Varuna who have decided to share future profits in the ratio of 4 : 3 respectively.
(viii) Capital of the new firm in total will be the same as before the retirement of Aruna
and will be in the new profit-sharing ratio of the continuing partners.
(ix) Amount due to Aruna be settled by paying ` 50,000 in cash and the balance by
transferring to her Loan Account which will be paid later on.
Prepare Revaluation Account, Capital Accounts of partners and Balance Sheet of the
firm after Aruna’s retirement. (8)

17. Sunrise Ltd. invited applications for 30,000 Equity Shares of ` 10 each at a premium
of ` 30 per share. The amount was payable as follows:
On Application—` 10 per share (including ` 8 premium);
On Allotment—` 12 per share (including ` 9 premium); and
On First and Final Call—Balance.
Applications for 27,000 shares were received. All the calls were made and were duly received
except on 3,000 shares held by Shiva who failed to pay the Allotment and First and
Final call money and on 2,000 shares of Girdhar who did not pay the First and Final
call. Shares of Shiva and Girdhar were forfeited. Out of the forfeited shares, 4,000 shares
were reissued, including all the shares of Girdhar at ` 17 per share fully paid-up.
Pass necessary Journal entries in the books of Sunrise Ltd. for the above transactions.
Or
IPC Ltd. invited applications for 70,000 equity shares of ` 10 each at par. The amount
was payable as follows:
On Application—` 4 per share;
On Allotment—` 4 per share; and
On First and Final Call—Balance.
Applications for 80,000 shares were received. Applications for 5,000 shares were rejected
and the shares were allotted on pro rata basis to the remaining applicants. Excess
money received with applications was utilised towards sums due on allotment. Jonney,
who had applied for 1,500 shares, failed to pay the Allotment money, His shares were
forfeited immediately after allotment. Afterwards the First and Final call was made.
First and Final call was not received on 700 shares held by Rommy. Her shares were
also forfeited. 1,500 forfeited shares (including 100 shares of Rommy) were reissued
at ` 13 per share fully paid-up.
Pass necessary Journal entries in the books of IPC Ltd. for the above transactions.
(8)