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Model Test Papers M.3

Debentures Allotment A/c ...Dr. 3,00,000
To 10% Debentures A/c 3,00,000
(Being the amount due on allotment)
Bank A/c ...Dr. ?
To Debentures Allotment A/c ?
(Being the amount received against allotment)

Or
State Bank of India issued 6,000; 10% Debentures of ` 100 each at a premium of 5%
on 1st June, 2018. The issue was fully subscribed. The Debentures were redeemable
on 31st August, 2019. Pass the necessary entries for issue and redemption
of debentures. (3)
10. X Ltd. issued 6,000, 10% Debentures of ` 100 each at a discount of 6% on 1st April,
2014. The debentures were repayable in instalments of ` 2,00,000 each starting from
31st March, 2016.
Show the Discount on Issue of Debentures Account for the years 2014–15 to 2017–18.
(3)
11. Kumar and Raja are partners in a firm sharing profits in the ratio of 7 : 3. Their fixed
capitals were: Kumar ` 9,00,000 and Raja ` 4,00,000. The Partnership Deed provided
following but the profit for the year was distributed without providing for:
(i) Interest on Capital @ 9% per annum.
(ii) Kumar’s salary ` 50,000 per year and Raja’s salary ` 3,000 per month.
The profit for the year ended 31st March, 2018 was ` 2,78,000. Pass adjustment entry.
(4)
12. X, Y and Z are partners sharing profits and losses in the ratio of 5 : 3 : 2. With effect
from 1st April, 2018, they decided to share profits and losses in the ratio of 2 : 3 : 5.
On that date, their Balance Sheet showed the following balances:
General Reserve : ` 90,000
Workmen Compensation Reserve : ` 10,000
Advertisement Suspense A/c : ` 40,000
They decided to carry these balances in the Balance Sheet. Pass the adjusting entry.
(4)
13. Balance Sheet of A, B and C, who were sharing profits in the ratio of 3 : 3 : 4, as on
31st March, 2018 was as follows:

Liabilities ` Assets `
Bills Payable 5,000 Cash 16,000
Loan 12,000 Bank 50,000
General Reserve 10,000 Stock 44,000
Capital A/cs: Furniture 47,000
A 60,000 Land and Building 60,000
B 60,000 A’s Loan 10,000
C 80,000 2,00,000
2,27,000 2,27,000