Accountancy: 2016: CBSE: [All India]: Set – III

A group of 40 people wants to form a partnership firm. They want your advice regarding the maximum number of persons that can be there in a partnership firm and the name of the Act under whose provisions it is given.

P, Q and R were partners in a firm sharing profits in the ratio of 3:2:1. They admitted S as new partner for 1/8^th share in the profits which he acquired 1/16^th from P and 1/16^th from Q.

On 28/02/2016 the first call of ₹2 per share became due on 50,000 equity shares allotted by Kumar Ltd. Komal a holder of 1000 shares did not pay the first call money. Kovil a holder of 750 shares paid the second and final call of ₹4 per share along with the first call.

Pass the necessary journal entry for the amount received by opening calls-in-arrears and calls-in-advance account in the books of the company.

Distinguish between ‘Dissolution of partnership’ and ‘Dissolution of partnership firm’ on the basis of ‘Economic Relationship’.

State the provisions of Companies Act, 2013 for the creation of ‘Debenture Redemption Reserve’.

Tom and Harry were partners in a firm sharing profits in the ratio of 5:3. During the year ended 31/03/2015 Tom had withdrawn ₹40,000. Interest on his drawings amounted to ₹2,000.

Pass necessary journal entry for charging interest on drawings assuming that the capitals of the partners were fluctuating.

On 02/03/2016 L and B Ltd. issued 635, 9% debentures of ₹500 each. Pass necessary journal entries for the issue of debentures in the following situations:

a. When debentures were issued at 5% discount, redeemable at 10% premium.

b. When debentures were issued at 12% premium, redeemable at 6% premium.

State any three circumstances other than (i) death of a partner, (ii) admission of a partner (iii) retirement of a partner when need for valuation of goodwill of a firm may arise.

K Ltd. took over the assets of ₹15,00,000 and liabilities of ₹5,00,000 of P Ltd. for a purchase considerations of ₹13,68,500. ₹25,500 were paid by issuing a promissory note in favour of P Ltd. payable after two months and the balances was paid by issue of equity shares of ₹100 each at a premium of 25%.
Pass necessary journal entries for the above transactions in the books of K Ltd.

To provide employment to the youth and to develop Baramula district of Jammu and Kashmir, Jyoti Power Ltd. decided to set up a power plant. For raising funds the company decided to issue 8,50,000 equity shares of ₹10 each at a premium of ₹3 per share. The whole amount was payable on application. Applications for 20,00,000 shares were received. Applications for 3,00,000 shares were rejected and shares were allotted to the remaining applicants on pro-rata basis.

Pass the necessary journal entries for the above transactions in the books of the company and identify any two values which the company wants to propagate.