Accountancy 6 Marks Question

P Ltd. issued 10,000, 8% debentures of ₹ 100 each at a premium of 10% on 1-4-2022 It purchased Property, Plant & Equipment of the value of ₹ 2,50,000 and took over current liabilities of ₹ 40,000 and issued 8% debentures at a premium of 5% to the vendor. On the same date it took loan from the Bank for ₹ 1,00,000 and issued 8% debentures as Collateral Security. Record the relevant journal entries in the books of P Ltd. and prepare the extract of balance sheet on 31-3-2023. Ignore interest.

Anita, Gaurav and Sonu were partners in a firm sharing profits and losses in proportion to their capitals. Their Balance Sheet as at 31^st March, 2019 was as follows:

Balance Sheet of Anita, Gaurav and Sonu as at 31st March, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
Capitals:			Land and Building		5,00,000
Anita	2,00,000		Investments		1,20,000
Gaurav	2,00,000		Debtors	1,50,000
Sonu	1,00,000	5,00,000	Less: Provision for doubtful debts	10,000	1,40,000
Investment Fluctuation Fund		40,000	Stock		1,00,000
General Reserve		30,000	Cash at Bank		1,70,000
Creditors		4,60,000
		10,30,000			10,30,000

On the above date, Anita retired from the firm and the remaining partners decided to carry on the business. It was agreed to revalue the assets and reassess the liabilities as follows:
i. Goodwill of the firm was valued at ₹ 3,00,000 and Anita's share of goodwill was adjusted in the capital accounts of the remaining partners, Gaurav and Sonu
ii. Land and Building was to be brought up to 120% of its book value.
iii. Bad debts amounted to ₹ 20,000. A provision for doubtful debts was to be maintained at 10% on debtors.
iv. Market value of investments was ₹ 1,10,000.
v. ₹ 1,00,000 was paid immediately by cheque to Anita out of the amount due and the balance was to be transferred to her loan account which was to be paid in two equal annual instalments along with interest @ 10% p.a
Prepare the Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm on Anita's retirement.

A, B and C were partners sharing profits in the ratio 5 : 3 : 2 respectively. Their summarised balance sheet was as follows :

Balance Sheet
Liabilities		Amt(Rs)	Assets	Amt(Rs)
Capital Accounts			Goodwill	80,000
A	2,80,000		Machinery	3,60,000
B	2,00,000		Debtors	1,40,000
C	1,20,000	6,00,000	Stock	1,80,000
Liabilities		Amt(Rs)	Assets	Amt(Rs)
Current Liabilities		1,84,000	Cash	24,000
		7,84,000		7,84,000

C retired on 1.4.2009. It was agreed that:
i. Machinery is revalued at Rs. 4,80,000.
ii. C's interest in the firm is valued at Rs 1,88,000 after taking into consideration revaluation of assets, liabilities and accumulated profits/losses etc.
iii. The entire sum payable to C is to be brought in by A and B in such a way that their capital should be in their new profit sharing ratio of 2 : 1.
iv. A cash balance of Rs 17,000 should be kept in the firm as a minimum balance.
Prepare revaluation account, partners' capital accounts, and balance sheet of the new firm.

Arun Ltd. was registered with a capital of ₹ 5,00,000 in shares of ₹ 10 each and issued 20,000 such shares at a premium of ₹ 2 per share, payable as ₹ 2 per share on application, ₹ 5 per share on allotment (including premium) and ₹ 2 per share on first call made three months later. All the money payable on application and allotment was duly received but when the first call was made, one shareholder paid the entire balance on his holding of 300 shares and another shareholder holding 1,000 shares failed to pay the first call money. Pass Journal entries to record the above transactions and show how they will appear in the company's Balance Sheet.

CTE Ltd. issued a prospectus inviting applications for 50,000 Equity Shares of ₹ 10 each, payable ₹ 5 as per application (including ₹ 2 as premium), ₹ 4 as per allotment and the balance towards first and final call.
Applications were received for 65,000 shares. Application money received on 5,000 shares was refunded with letter of regret and allotments were made on pro-rata basis to the applicants of 60,000 shares.
Mr. Sundar to whom 700 shares were allotted failed to pay the allotment money and his shares were forfeited by the Directors on his subsequently failure to pay the call money.
All the forfeited shares were subsequently sold to Mr. Jay credited as fully paid-up for ₹ 9 per share.
You are required to set out the Journal entries and the relevant entries in the Cash Book.