CBSE Set Qa2 Accounts Sample Test Papers For Class 12th for students online
Accounts Class - XII (CBSE)
You are on Set no 1 Answer 6 to 7
Q6) A, B and C were partners
in a firm. On 1.1.98 their capitals stood at Rs. 50,000/-, Rs. 25,000/- and Rs.
25,000/- respectively. As per the provisions of the partnership deed:
(a) C was entitled for a salary of Rs. 1,500/- pm.
(b) Partners were entitled to interest on capital at 5% pa.
(c) Profits were to be shared in the ratio of capitals.
The net profit for the year 1998 of Rs. 45,000/- was divided equally without
providing for the above terms.
Pass an adjustment entry to rectify the above errors. (Marks 4)
Ans6) Working Notes :
|
P/L Appropriation A/C |
|||
| To C's capital
A/C (Salary) To A's capital A/C (Interest on Capital) To B's capital A/C (Interest on Capital) To C's capital A/C (Interest on Capital) To Pft tfd to A's capital A/C B's capital A/C C's capital A/C |
18000 2500 1250 1250 11000 5500 5500 45000 |
By
Profits |
45000 45000 |
|
A
|
B
|
C
|
|
|
Salary |
2500 11000 13500 15000 1500 (Dr.) |
1250 5500 6750 15000 8250 (Dr.) |
18000 1250 5500 24750 15000 9750 (Cr.) |
Thus, the adjustment entry is,
Journal
| Date |
Particulars
|
LF |
Amt. (Dr.)
|
Amt. (Cr.)
|
| A's Capital
A/C. B's Capital A/C To C's Capital A/C (Being adjustment of profits as per the terms of deed) |
1500 8250 |
9750 |
Q7) A company offered 10,000 shares of Rs. 10/- each payable as
Rs. 2/- on application, Rs. 3/- on allotment, Rs. 3/- on first call and Rs. 2/-
on final call.
The public applied for 15,000 shares. The shares were allotted on pro-rata basis
to the applicants of 12,000 shares. All shareholders paid the allotted money
excepting one shareholder who was allotted 200 shares. These shares were
forfeited. The first call was made thereafter. The forfeited shares were
re-issued @ Rs. 9 per share Rs. 8/- paid up. The final call was not yet made.
You are required to prepare the cash book and pass journal entries.
Ans7) Working notes :
10000 x 10 (2, 3, 3, 2)
Applied for
Allotted
12000
3000 Pro rata 10000
15000
10000
Share allotted = 200
Applied for = 12000/10000 x 200 = 240
...Amount paid by allottee = 240 x 2 = 480
Due = 200 x 2 = 400
Surplus paid = 80
Due on allotment = 200 x 3 = 600
Less: Amount received in advance = 80
Not received = 520
Amount due on allotment = 10000 x 3 = 30000
Less : Received in advance = 4000
Less : Not received from pro-rata allottee = 520
Amount received. on allotment = 25480
Journal
| Date |
Particulars
|
LF |
Amt. (Dr.)
|
Amt. (Cr.)
|
| Share
Application A/C ........................
Dr To Share Capital A/C To share Allotment A/C (Being share application money transferred to share capital and Share allotment A/C) Share Allotment A/C ........................Dr To Share Capital A/C (Being amount due on allotment on 10000 shares @ 3 per share made due) Share Capital A/C ........................Dr To Share forfeited A/C To Share Allotment A/C (Being 200 shares forfeited for non payment of allotment money) Share first call A/C ........................Dr To Share Capital A/C (Being share first call money on 9800 shares @ 3/share made due) Share forfeited A/C ........................Dr To Capital Reserve (Being the amount of share forfeited transferred to capital Reserve) |
24000 30000 1000 29400 480 |
20000 4000 30000 480 520 29400 480 |
Cash Book
(Bank column only)
| Receipt |
Payments |
||
| Particulars | Amt. | Particulars | Amt. |
| To Share
Application A/C To Share Allotment A/C To Share First call A/C To Share Capital A/C To Share Premium A/C |
30000 25480 29400 1600 200 |
By Share App
A/C By balance c/d |
6000 80680 |
| 86680 | 86680 | ||
OR
On 1.1.95 a company issued 10,000 9% debentures of Rs 100/-
each at a discount of 5%. The terms of issue provide for redemption of Rs.
1,00,000/- worth Debentures every year commencing from the end of 1996 either
by purchasing in the open market or by draw of lots at the company's option.
The company also wrote off Rs. 10,000/- during the year 1995 and 1996 from the
Debentures Discount Account. During the year 1996 the company purchased 400
debentures @ Rs. 95/- and 500 Debentures @ Rs. 96/- for cancellation.
Journalise these transactions and also show how you would deal with the
profits on redemption of debentures. (Marks 10)
Ans. Working notes :
Debentures purchased by company
= 400 x 95 = 38000
Actual cost = 400 x 100 = 40000
Profit on redeemed of debentures = 2000
Similarly, 500 x 96 = 48000
Cost 500 x 100 = 50000
Profit = 2000
Journal
| Date |
Particulars
|
LF |
Amt. (Dr.)
|
Amt. (Cr.)
|
| 1.1.95 31.12.95 31.12.96 31.12.96 31.12.96 31.12.96 31.12.96 |
Bank A/C
....................................Dr Discount on issue of debenture A/C Dr To 9% Debenture (Being issue of 10000, 9% Debentures of 100 each at 5% discount) P&L A/C........................ Dr To Discount on issue of debenture A/C (Being the amount of discount on issue of debentures written off) 9% Debentures A/C........................ Dr To Bank A/C To profit on redemption of debenture A/C (Being the redemption of 400 debentures of 100 each @ 95 per debenture) 9% Debentures A/C........................ Dr To Bank A/C To profit on redemption of debenture A/C (Being the redemption of 500 debentures of 100 each @ 96 per debenture) 9% Debentures A/C........................ Dr To Bank A/C (Being the redemption of 100 debentures by drawing of lots) Profit on redemption of debenture A/C Dr To Capital Reserve (Being the profit on redemption transferred to capital Reserve) PandL A/C ........................ Dr To Discount on Issue of Debentures (Being the amount on discount on issue of debentures written off) |
950000 50000 10000 40000 50000 10000 4000 10000 |
1000000 10000 38000 2000 48000 2000 10000 4000 10000 |
The profit on redemption of debentures is a capital profit transferred to capital Reserve. This is shown on the liabilities side of Balance sheet under the heading Reserve and Surplus.
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