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M.2 An Aid to Accountancy—CBSE XII
5. If loan of ` 1,10,000 from X, a partner, appears on the liabilities side of the Balance
Sheet of the firm and X’s Capital Account has a debit balance of ` 10,000. What Journal
entry will be passed on payment of such loan at the time of dissolution of firm? (1)
6. The average net profit expected in future by ABC firm is ` 3,60,000 per year. The
average capital employed in the business is ` 20,00,000. The rate of return expected
from capital invested in this class of business is 10%. The remuneration of partners is
estimated ` 60,000 per annum. What is the value of goodwill on the basis of two years’
purchase of super profit? (1)
7. Show how will be the following items dealt while preparing the final accounts of Queen’s
Club for the year ending 31st March, 2018:

Expenditure on construction of Building ` 3,60,000. The construction work is in progress
and has not yet completed.

Opening Capital Fund : ` 10,80,000
Opening Building Fund : ` 4,80,000
Donation received for Building : ` 6,00,000
Opening 10% Building Fund Investments : ` 4,80,000
Interest received on Building Fund Investments : ` 48,000 (3)

8. A, B, and C were partners sharing profits and losses in the ratio of 4 : 3 : 2 respectively.
B retired when the capitals of A, B and C before the necessary adjustments stood at
` 2,19,500, ` 1,14,000 and ` 1,16,500 respectively. On the date of retirement, firm’s
goodwill was valued at ` 2,16,000 and Loss on Revaluation of Assets and Liabilities was
` 27,000, General Reserve ` 63,000 and the Cash and Bank Balance on that date was
` 1,86,000. B was to be paid through cash brought in by A and C in such a way as to
make their capitals proportionate to their new profit-sharing ratio of 5 : 3. Calculate the
amount of cash to be paid off or to be brought in by the continuing partners assuming
that a minimum Cash and Bank Balance of ` 1,00,000 was to be maintained and pass
the necessary Journal entries. (3)
9. X Ltd. issued 5,000; 10% Debentures of ` 100 each payable ` 40 on application and
` 60 on allotment. Company received applications for 8,000 debentures. It rejected
applications for 2,000 debentures and allotment was made on pro rata basis among
the remaining applicants. Complete the following Journal entries:
JOURNAL OF X LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
Bank A/c ...Dr. ?
To Debentures Application A/c ?
(Being the application money received)
Debentures Application A/c ...Dr. ?
To 10% Debentures A/c ?
To Debentures Allotment A/c ?
To Bank A/c ?
(Being the application money adjusted)