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Model Test Papers M.437

8. Z Ltd. purchased machinery from K Ltd. Z Ltd. paid K Ltd. as follows:
(i) By issuing 5,000 equity shares of ` 10 each at a premium of 30%.
(ii) By issuing 1,000, 8% Debentures of ` 100 each at a discount of 10%.
(iii) Balance by giving a promissory note of ` 48,000 payable after two months.
Pass necessary Journal entries for the purchase of machinery and payment to K Ltd.
in the books of Z Ltd.
Or
On 1st April 2012, Z Ltd. issued ` 10,00,000, 10% Debentures of ` 100 each at 94%
redeemable at par. The debentures are to be redeemed by drawings method in the
following manner:
Year end 2nd 3rd 4th 5th
Nominal Value of Debentures to be Redeemed 10% 20% 30% 40%
Calculate the amount of discount on issue of debentures to be written off each year.
(3)
9. X, Y and Z are partners. Their fixed capitals as on 1st April, 2018 were: X—` 5,00,000;
Y—` 10,00,000 and Z—` 15,00,000. Profit for the Year 2017–18 amounting to ` 3,00,000
was distributed in the ratio of capitals after providing for the following:
(a) X’s salary ` 1,20,000 p.a. and Y’s commission of ` 40,000.
(b) Interest on Capitals: X—` 50,000; Y—` 1,00,000; Z—` 1,50,000.
(c) Interest on Drawings: X—` 30,000; Y—` 50,000; Z—` 80,000.
The Partnership Deed is silent as to sharing of profits and losses, interest on capital,
interest on Drawings and Partner’s salary and commission.
Pass the necessary adjustment entry. (3)
10. Rama Ltd. had issued on 1st October, 2014, 10,000, 9% Debentures of ` 100 each at
par redeemable at par at the end of 4 years. The Board of Directors decided to transfer
the amount to Debentures Redemption Reserve as per the Companies Act, 2013, at
the time of redemption.
Investments, as required by Rules framed under Section 71(4), were made on
1st April of the financial year in which redemption is due and realised at book value at
the time of redemption. Interest on the investment is also received @ 8% per annum.
Pass the necessary Journal entries for Redemption of Debentures, Debentures
Redemption Reserve and Debentures Redemption Investment. Ignore interest
on Debentures. (3)
11. Ram, Mohan and Sohan were partners in a firm sharing profits and losses in the ratio
of 5 : 3 : 2. On 31st March, 2018, their Balance Sheet was as follows:
Liabilities ` Assets `
Creditors 43,000 Cash at Bank 28,200
Bills Payable 17,000 Stock 24,500
General Reserve 70,000 Debtors 27,300
Workmen Compensation Reserve 18,000 Land and Building 1,40,000
Capital A/cs: Profit and Loss A/c 70,000
Ram 40,000 (Loss for the year ended 31st March, 2018)
Mohan 50,000
Sohan 52,000 1,42,000
2,90,000 2,90,000