Accountancy: 2017: CBSE: [Delhi]: Set – III

Does partnership firm has a separate legal entity? Give reason in support of your answer.

A and B were partners in a firm sharing profits and losses in the ratio of 4:3 They admitted C as a new partner. The new profit sharing ratio between A, B and C was 3:2:2. A surrendered ¼ of his share if favour of C. Calculate B’s Sacrifice.

P and Q were partners in a firm sharing profits equally. Their fixed capitals were ₹1,00,000 and ₹50,000 respectively. The partnership deed provided for interest on capital at the rate of 10% per annum. For the year ended 31^st March, 2016 the profits of the firm were distributed without providing interest on capital. Pass necessary adjustment entry to rectify the error.

X Ltd. invited applications for issuing 1000, 9% debentures of ₹100 each at a discount of 6% Applications for 1,200 debentures were received Pro-rate allotment was made to all the applicants.

Pass necessary Journal Entries for the issue of debentures assuming that the whole amount was payable with applications.

Y Ltd. forfeited 100 equity shares of ₹10 each for the non-payment of first call of ₹2 per share. The final call of ₹2 per share was yet to be made.

Calculate the maximum amount of discount at which these shares can be re-issued.

Gupta and Sharma were partners in a firm. They wanted to admit two more members in the firm. List the categories of individuals other than minors who cannot be admitted by them.

Jain Motors Ltd. converted its 200, 8% debentures of ₹100 each issued at a discount of 6% into equity shares of ₹10 each, issued at a premium of 25% Discount on issue of 8% debentures has not yet been written off.

Showing your working notes clearly pass necessary journal Entries on conversion of 8% debentures into equity shares.

Amar, Ram, Mohan and Sohan were partners in a firm sharing profits in the ratio of 2:2:2:1 on 31^st January. 2017 Sohan retired. On Sohan’s retirement the goodwill of the firm was valued at ₹70,000 The new profit sharing ratio between Amar, Ram and Mohan was agreed as 5:1:1.

Showing your working notes clearly, pass necessary Entry for the treatment of goodwill in the books of the firm on Sohan’s retirement.

Z Ltd. purchased machinery from K Ltd. Z Ltd. paid K Ltd. as follows:

1. By issuing 5,000 equity shares of ₹10 each at a premium of 30%.
2. By issuing 1000, 8% Debentures of ₹100 each at a discount of 10%.
3. Balance by giving a promissory note of ₹48,000 payable after two months.

Pass necessary journal entries for the purchase of machinery and payment to K Ltd. in the books of Z Ltd.

Akash Ltd. is registered with an authorized Capital of ₹8,00,00,000 divided into equity shares of ₹10 each. Subscribed and fully paid up share capital of the company was ₹4,00,00,000. For providing employment to the local youth and for the development of the rural areas of the Jammu and Kashmir State the company also decided to set up a food processing unit in anantnag district. The Company also decided to open skill development centres in Ladakh, Srinagar and Punch. To meet its new financial requirements the company decided to issue 1,00,000 equity shares of ₹10 each and 10,000, 9% debentures of ₹100 each. The debentures were redeemed after five years. The issue of equity shares and debentures was fully subscribed. A shareholder holding 1,000 shares failed to pay the final call of ₹2 per share.

Present the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the companies Act, 2013 Also identify any two values that the company wishes to propagate.