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Top Questions Marathon Module

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Single Entry
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Partnership .

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companies
10 mans.

1. On 31st March, 2020, the Balance Sheet of P, Q and R sharing profits and losses in proportion
to their Capital stood as below: (2 : 3:
2)
Liabilities ` Assets `
Capital Account: Land and Building -
30,000
Mr. P
Mr. Q
20,000 Plant and Machinery
30,000 Stock of goods T
20,000
12,000
Mr. R 20,000 m
Sundry debtors 11,000
Sundry Creditors 10,000 Cash and Bank Balances 7,000
80,000 80,000
option Nool
On 1st April, 2020, P desired to retire from the firm and remaining partners -
>

Bankak De decided to carry on the business. It was agreed to revalue the assets and liabilities on
To JCP .
that date on the following basis:
-
(i) Land and Building be appreciated by 20%.
JLP -
(ii) Plant and Machinery be depreciated by 30%.
To Plc Alc ~
(iii) Stock of goods to be valued at `10,000.
Put
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(iv) Old credit balances of Sundry creditors, `2,000 to be written back. ↑ &
option No 2
.

.
(v) Provisions for bad debts should be provided at 5%.
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(vi) Joint life policy of the partners surrendered and cash obtained ` 7,550.
↓ S ~
(vii) Goodwill of the entire firm is valued at `14,000 and P’s share of the goodwill
JCP) Revaluation is adjusted in the A/cs of Q and R, who would share the future profits equally.
Y No goodwill account being raised.

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↓
(viii) The total capital of the firm is to be the same as before retirement. Individual
capital is in their profit sharing ratio.
(ix) Amount due to Mr. P is to be settled on the following
PIC
basis: 50% on retirement and the balance 50% within
one year.
r -
Prepare (a) Revaluation account, (b) The Capital accounts of the partners, (c) Cash
14000X27 account and (d) Balance Sheet of the new firm M/s Q & R as on 1.04.2020..

# 4000
P Q R 2 : 3 : 2

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2 =
%7 z 6 7
ty
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14
R
E- 4
=
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1000 2

3000 R
 Revenue Nature C Y Atems

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loMars
.

2. From the following data, prepare an Income and Expenditure Account for the year ended 31st
December 2022, and Balance Sheet as at that date of the Amar Leela Hospital:
Receipts and Payments Account for the year
ended 31 December, 2022
# RECEIPTS ` PAYMENTS `
To Balance b/d By Salaries:
Subs ·
Alc Cash 2,400 (` 21,600 for 2021) 93,600

ofsoli
Bank 15,60 18,000 By Hospital Equipment E51,000-
> Assel
0 18,000 - An
5 Bean
To Subscriptions: By Furniture purchased
For 2021 T
15,300 By Additions to Building 150,000 Am
-

000
,
For 2022 73,500 By Printing and Stationery 7,200

973500 By For 2023

To Government
7200
By Diet expenses
-
46,800
ClB7200 Grant:
For building CIR 2,40,000 By Rent and rates
For maintenance
Fees from sundry
60,000 (` 900 for 2023)
-

By Electricity and water

6,000 - A.

Ey
# Patients -
14,400 charges 7,200

To Donations (not to 24,000 -

-
By office expenses 6,000
be
-

6000XBt
-

capitalized) By Investments 60,000

O
-

To Net collections By Balances:

-
from
-

benefit shows 18,000 Cash 4,20

0
Bank 20,40 24,600
4,70,400 0 4,70,400
Additional `
information:
Value of building under construction as on 31.12.2022 4,20,000
Value of hospital equipment on 1,53,000
31.12.2022

B
-

Building Fund as on 1.1. 2022

- 2,40,000
Subscriptions in arrears as on 31.12.2021 19,500
Investments in 8% Govt. securities were made on 1st July, 2022.
 Ang .
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3. Ved, Jain and Agrawal are in partnership sharing profit and losses at the ratio of 2:5:3. The

closing Balsnee
Balance Sheet of the partnership as on 31.12.2022 was as follows:
# Balance Sheet of M/s Ved, Jain & Agrawal -

500 t

5 Marks Liabilities ` Assets `

# Capital A/cs Sundry fixed assets 15,00,000
Ved r2,55,000 Inventory 3,00,000

↓
&
Jain 9,45,000 Trade receivables 1,50,000
# Agrawal 6,75,000 Bank 15,000
closing = 1875 000Trade payables
,
90,000
Capital 19,65,000 19,65,000
The partnership earned profit ` 6,00,000 in 2022 and the partners withdrew
olc =
` 4,50,000 during the year. Normal rate of return 30%.
4 You are required to calculate the value of goodwill on the basis of 5 years' purchase of super
+ Drawings profit. For this purpose, calculate super profit using average capital employed.
profit
-

18, 00 , 000

# &
# discount. Debenture interest after deducting tax at source @10% was payable on 30th June and
4. On 1st January 2022 Samar Ltd. issued 10% debentures of the face value of ` 20,00,000 at 10%

3
5)Mar
= 1175000
1725000 31st December every year. All the debentures were to be redeemed after the expiry of five year
-

period at 5% premium.
Pass necessary journal entries for the accounting year 2022.

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5. Shyam, Sunder and Girdhar are partners in a firm sharing profits and losses in the ratio of 3:2:1.
Their Balance Sheet as on 31st March, 2022 is as below:

Mars Liabilities (`) Assets (`)

.

10 Trade payables 56,250 Land & Buildings 92,500

Outstanding Liabilities 5,500 Furniture & Fixtures 18,000
General Reserve 19,500 Closing stock 31,500

smamak
Capital Accounts: Trade Receivables 26,750
Dinesh 37,500 Cash in hand 7,000
CR Ramesh 37,500 Cash at Bank 5,500
Naresh 25,000 1,00,000
1,81,250 1,81,250
Homework #
The partners have agreed to take Hari as a partner with effect from 1st April, 2022 on the
following items:
#
# (i) Hari shall bring ` 20,000 towards his capital.
(ii) The value of stock to be increased to ` 35,000 and Furniture & Fixtures to be
depreciated by 10%.
 (iii) Provision for bad and doubtful debts should be provided at 2% of the trade
receivables.
(iv) The value of Land & Buildings to be increased by ` 14,000 and the value of the
goodwill be fixed at ` 45,000.
(v) The new profit sharing ratio shall be divided equally among the partners.
The outstanding liabilities include ` 1,750 due to Aman which has been paid by Shyam. Necessary
entries were not made in the books.
Prepare (i) Revaluation Account, (ii) Capital Accounts of the partners, (iii) Balance Sheet of the firm after
admission of Hari

6. Finopolis Limited is a company with an authorized share capital of ` 4,00,00,000 in equity

loMaMis
:

shares of ` 10 each, of which 30,00,000 shares had been issued and fully paid on 30th June, 2022.
The company proposed to make a further issue of 2,60,000 shares of #
# ` 10 each at a price of ` 12 each, the arrangements for payment being:
a.#` 2 per share payable on application, to be received by 1st July, 2022;
o sharesoid
No

260000 premium) to be payable; 6

b. Allotment to be made on 10th July, 2022 and a further ` 5 per share (including the

c. The final call for the balance to be made, and the money received by 31th
FYIORS
.

March, 2023.
12Rs
#P =
.

Applications were received for 8,40,000 shares and were dealt with as follows:
Pmem 2Rs
& =
i. Applicants for 40,000 shares received allotment in full;
# ii. Applicants for 2,00,000 shares received an allotment of one share for every
two applied for; no money was returned to these applicants, the surplus on
application being used to reduce the amount due on allotment;
iii. Applicants for 6,00,000 shares received an allotment of one share for every
five shares applied for; the money due on allotment was retained by the
company,
-
#
the excess being returned to the applicants; and
iv. The money due on final call was received on the due date.
You are required to record these transactions (including cash items) in the journal of
Finopolis limited.
Break
5) Min
,

GMars 7. Give necessary journal entries for the forfeiture and re-issue of shares:
a. Avtar Ltd. forfeited 900 shares of ` 10 each fully called up, held by Varun for non- payment
of allotment money of ` 3 per share and final call of ` 4 per share. He paid the application
-

money of ` 3 per share. These shares were re-issued to Nitesh for ` - 8 per share.
&

b. X Ltd. forfeited 200 shares of ` 10 each (` 7 called up) on which Naresh had paid
#
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application and allotment money -

- -
of ` 5 per share. Out of these, 150 shares were re-
-

issued to Mahesh as fully paid up for ` 6 per share.

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 8. Ankur keeps his books of accounts by single entry system. However, he is able
to give you the following lists of his assets and liabilities in the beginning as well as

& Mares
O
at the end of the year ended 31st March, 2024:
&
T
On 1st April, 2023 On 31st March, 2024

# `
#
`
#Cash in hand
Cash at bank
Pp 1,750
20,000
1,400
-
# Bank Overdraft L
A
- E
1,800
-
&Bills Receivable 15,000 25,000
-P
Stock 93,500 ~
98,700
~ A
Debtors 60,000 O
70,000
- A
Furniture and Fittings 65,000 -
65,000
-L
Creditors 45,000 -
31,000
-
Bills Payable L 5,000 Nil
70000
-
50.
Ankur introduced ` 10,000 as fresh capital on 1st October, 2023. He also withdrew
- ` 5,000 every month for his household expenses.
During the year, there was no sale or fresh purchase of furniture and fittings.
-
-
Ascertain the profit earned by Ankur during the year ended 31st March, 2024

65000 after depreciating furniture and fittings

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provision for bad debts @ 5% on debtors.
@ 10% per annum and creating a
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-
107
-9. Seema, Meena & Tina are partners sharing profits and losses in the ratio of 5:3:2.
SoSO

&
-

- There capitals were -

` 13,440, `-
8,400, ` 11,760 respectively.
-

Liabilities and assets of the firm are as under:

Liabilities: `
-10 Maly
·

Trade creditors
~
2,800
Loan from partners -
1,400
Assets: `

-
Patent -
1,400
Furniture
- 2,800
-

-
Machinery -
1,680
Stock 5,600

G
The assets realized in full in the order in which they are listed above. Meena
- is insolvent.
You are required to prepare a statement showing the distribution of cash
 as and when available, applying maximum possible loss procedure.

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10. Sushil Limited had 10,000, 10% Redeemable Preference Shares of ` 100 each, fully
-

paid up. The company had to redeem these shares at a premium of 10%. -H

It was decided by the company to issue the following:

# (i) O
80,000 Equity Shares ofO
CRR= NY FI
-

` 10 each at par.
10 1 00,000 -
800 ,000
# (ii) 4,000 12% Debentures of ` 100 each. -

CRR 200000
The issue was fully subscribed and all accounts were received in full. The payment #
was duly made. The company had sufficient profits. Show journal entries in
the books of the company.