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M.418 An Aid to Accountancy—CBSE XII

Answers

PART A

1. Ravi is correct.
Reason: In the absence of Partnership Deed, a partner will not get interest on capital.
Or
His claim is not valid because in the absence of Partnership Deed, profits or losses are
shared by partners equally.
2. Total amount required = ` 72,300 (Amount Payable to C) + ` 20,000 (Required Cash in
Hand) – ` 7,000 (Cash already in hand)
= ` 85,300.
A will bring = ` 51,180 (Given)
B will bring = ` 34,120 (2/5 of ` 85,300)
` 85,300
3.
Dr. PARTNER’S CURRENT ACCOUNT Cr.
Particulars ` Particulars `
To Drawings A/c 6,20,000 By Balance b/d 27,000
To Balance c/d (Balancing Figure) 7,07,000 By Interest on Capital A/c 2,80,000
By Salary A/c 1,50,000
By Profit and Loss Appropriation A/c (Net Profit) 8,70,000
13,27,000 13,27,000

4. From 1st January, 2018 to 31st March, 2018, the interest accrued but not due
(i.e., interest on debentures due but not payable is:
` 25,00,000 × 10/100 × 3/12 = ` 62,500.

Interest Accrued but not due is shown as Other Current Liability under the head
Current Liabilities in the Equity and Liabilities part of the Balance Sheet.

Or
There is no limit of discount on issue of debentures in the Companies Act, 2013.
5. Yes, Income and Expenditure Account records all Revenue Incomes (whether received
or not) and Revenue Expenditures (whether paid or not) relating to current year only.
Or
No. I do not agree with this statement. Income and Expenditure Account is prepared
on Accrual Basis of Accounting and the Matching Concept of accounting.

6. Yes, the accountant is correct. It is a case of purchased goodwill and AS-26, Intangible
Assets prescribes recording of purchased goodwill in the books of account.