1 d) 33:27:20

2 a) Both A and R are correct, and R is the correct explanation of A.

3 b) ₹ 9,000

or

c) ₹ 24,00,000

4 d) ₹ 80,000

or

d) A need to return ₹2,35,000 to the firm.

5 c) Partner’s Loan Account 1

6 b) ₹ 10,00,000

or

a).Interest on debentures is an appropriation of profits.

7 a) Both Assertion (A) and Reason (R) are Correct and Reason (R) is the correct explanation of

Assertion (A)

8 c) ₹ 2,40,000

or

b) Debited, ₹6,500.

9 d). ₹20,940.

10 c). ₹71,400.

11 c). Only (iii)

12 B. PK Ltd. Dr.

To Share Capital A/c

To Securities Premium A/c

To Bank A/c
(Being settlement of amount due to

vendors)

20,00,000

12,72,700

1,27,270

6,00,030

13 c). 2,000 Shares 1

14 a). ₹24,000. 1

15 b). ₹40,000.

Or

c). Shyam - ₹ 2,500; Gopal- ₹ 750; Arjun- Nil.

16 d). ₹1,50,000

17 Date Particulars L.F Dr (₹) Cr (₹)

Anshul’s Capital A/c Dr

Chander’s Capital A/c Dr

To Babita’s Capital A/c

(Chander’s share of Goodwill

debited to the amounts of continuing

partners in their gaining ratio)

9,000

21,000

30,000

Gaining Ratio is 3:7

18 Partners Interest on

Capital Paid
(2%)

(i)

Salary Paid

(wrong credit)

(ii)

Payable

(iii)

Salary

Payable

(iv)

Excess /

Deficiency

P 800 12,000 1152 ---- 11,648

(Excess)

Q 640 ---- 384 12,000 11,744

(Deficiency)

R 480 ---- 384 ---- 96

(excess)

Date Particulars L.F Dr (₹) Cr (₹)

P’s Capital A/c Dr

R’s Capital A/c Dr

To Q’s Capital A/c

(Being entry passed for adjustment of

interest on capital and salary)

11,648

96

11,744

Or

Date Particulars L.F Dr (₹) Cr (₹)

P&L Adjustment A/c Dr.

To Cheese Capital A/c

To Slice Capital A/c

(Being Interest on capital omitted

earlier now provided)

P&L Adjustment A/c Dr.

To Cheese Capital A/c

(Being salary omitted earlier now

provided)

Cheese Capital A/c Dr.

Slice Capital A/c Dr.

To P&L Adjustment A/c

(Being Loss on Adjustment

transferred to partners)

9,000

5,000

7,000

7,000

3,000

6,000

5,000

14,000

19 Date Particulars L.F Dr (₹) Cr (₹)

Assets A/c Dr.

Goodwill A/c Dr.

To Liabilities A/c

To Healthy World ltd.

(Being assets and liability taken

over)
Healthy World Ltd. Dr.

Loss on issue of Debentures A/c Dr.

To 8% Debentures A/c

To Securities Premium A/c

To Premium on redemption A/c

To Bank A/c

(Being Purchase consideration

discharged by issue of Debentures

and in Cash)

10,00,000

60,000

8,90,000

80,000

1,70,000

8,90,000

8,00,000

40,000

80,000

50,000

Or

Share Forfeiture A/c

Particulars Amt(₹) Particulars Amt(₹)

To Share Capital A/c 120 By Share Capital A/c 400

To Capital Reserve A/c 120

To Capital Reserve A/c 80

To Balance c/d 80

400 400

20 Years (ending 31st

March)

Adjusted Profit (₹) Weights Product (₹)

2020 28,000 1 28,000

2021 36,000 1 36,000

2022 46,000 2 92,000

2023 53,000 3 1,59,000

Total 7 3,15,000

Adjusted Profits 2020 2021 2022 2023

Given Profits

Add Capital Expenditure

Charged to Revenue

28,000 27,000

10,000

46,900 53810

Less: Unprovided Depreciation (1,000) (900) (810)

Adjusted Profits 28,000 36,000 46,000 53,000

Weighted Average Profit = 3,15,000/7

=₹45,000

Goodwill = 45,000 × 3 = ₹1,35,000

Notes to Solution

(i) Depreciation of 2021= 10% of 10,000

= 10,000 × 10/100 =₹1,000

(ii) Depreciation of 2022 = 10% of 9000

= 9,000x10/100= ₹900

(iii) Depreciation of 2022 = 10% of 8,100

= ₹8,100

21 Balance Sheet (Extract) as at

Particulars Note No Amount

I. EQUITY AND LIABILITIES

(1) Shareholder’s Funds

(a) Share Capital 1 7,78,000

Notes to Accounts

Note 1:

Particulars Details Amount

1. Share Capital

Authorised Capital

2,00,000 Equity shares of Rs.10 each

Issued Capital

80000 Equity shares of 10 each

Subscribed capital

20,00,000

8,00,000

Subscribed and fully paid up

74,000 equity shares of 10 each

Subscribed but not fully paid-up

4,000 equity shares of 10 each

Less: calls in arrears (4,000x2)

Add Forfeited Shares

2,000 equity shares@3

40,000

(8,000)

7,40,000

32,000

6,000

7,78,000

22 Journal
Date Particulars LF Dr. (₹) Cr. (₹)

a) Realisation A/c Dr

To Sun’s Capital A/c

(Being Remuneration and expenses payable to

Sun)

40,000

40,000

b) Sun’s Capital A/c Dr

Kiran’s Capital A/c Dr

To Deferred Advertisement Suspense A/c

(Being Advertisement Suspense A/c has been

debited in partner’s capital account in their profit

sharing ratio)

14,000

14,000

28,000

c)(1) Kiran’s Capital A/c Dr

To Realisation A/c

(Being 1/3 of Stock has been taken over by Kiran

at 25% discount))

30,000

30,000

c)(2) No Entry

c)(3) Bank A/c Dr

To Realisation A/c

(Being Stock Realised)

25,000

25,000

d) Cash/Bank A/c Dr
To Realisation A/c

(Being amount realised from unrecorded assets

after payment of outstanding bill)

7,000

7,000

23 Journal Entries in the Books of Rockstar Ltd.

Date Particulars L.F Debit (₹ Credit (₹)

i) Bank A/c Dr.

To Share Application A/c

(Being Application money received)

16,00,000

16,00,000

ii) Share Application A/c Dr.

To Share Capital A/c

To Share Allotment A/c

To Bank A/c

(Being Application money utilised)

16,00,000

10,00,000

5,00,000

1,00,000

iii) Share Allotment A/c Dr.

To Share Capital A/c

To Securities Premium A/c

(Being allotment due with premium)

8,00,000

4,00,000

4,00,000
iv) Bank A/c Dr.

Calls in Arrears A/c Dr.

To Share Allotment A/c

(Being allotment received except of Simba)

2,85,000

15,000

3,00,000

v) Share First and Final Call A/c Dr. 6,00,000

To Share Capital A/c

(Being call money due)

6,00,000

vi) Bank A/c Dr.

Calls in Arrears A/c Dr.

To Share First and Final Call A/c

(Being call money received except of Simba)

5,70,000

30,000

6,00,000

vii) Share Capital A/c Dr.

Securities Premium A/c Dr.

To Share Forfeited A/c

To Calls in Arrears A/c

(Being Simba’s shares forfeited)

1,00,000

15,000

70,000

45,000

viii) Bank A/c Dr.

Share Forfeited A/c Dr.

To Share Capital A/c

(Being forfeited shares re-issued)

48,000

12,000

60,000

ix) Share Forfeited A/c Dr.

To Capital Reserve A/c

(Being gain on re-issue transferred to Capital Reserve)

30,000

30,000

Or

Journal Entries in the Books of Shaktimaan Ltd.

Date Particulars L.F Debit (₹) Credit (₹)

i) Share Application A/c Dr.

To Share Capital A/c

To Securities Premium A/c

To Share Allotment A/c

(Being Application money utilised)

6,00,000

2,00,000

2,00,000

2,00,000

ii) Share Allotment A/c Dr.

To Share Capital A/c

(Being allotment due with premium)

5,00,000

5,00,000

iii) Share First and Final Call A/c Dr.

To Share Capital A/c

(Being call money due)

3,00,000

3,00,000

iv) Calls in Arrears A/c Dr.

To Share First and Final Call A/c

(Being call money received except of Simba)

15,000

15,000

v) Share Capital A/c Dr.

To Share Forfeited A/c

To Calls in Arrears A/c

(Being Simba’s shares forfeited)

50,000

35,000

15,000

vi) Share Forfeited A/c Dr.

To Capital Reserve A/c

(Being gain on re-issue transferred to Capital Reserve)

14,000

14,000

Cash Book (with Bank Column only)

Date Particulars LF Amount

(₹)

Date Particulars LF Amount

(₹)

i) To Share Application A/c 7,20,000 ii) By Share Application A/c 1,20,000

iii) To Share Allotment A/c 3,00,000

iv) To Share First and Final

Call A/c

2,85,000

v) To Share Capital A/c

To Securities Premium

A/c

20,000

6,000

vi) By Balance c/d 12,11,000

13,31,000 13,31,000

24 Journal Entries in the Books of Rajinder, Vijay and Ranvijay

Date Particulars L.F Debit (₹ Credit (₹)

i) Revaluation A/c Dr.

To Prov. For Doubtful Debts A/c

To Outstanding Bill for Repairs A/c

(Being increase in PDD and O/S bill accounted)

52,000

2,000

50,000

ii) Accrued Interest A/c Dr.

Stock A/c Dr.

To Revaluation A/c

(Being increase in Stock and Accrued Interest

accounted)

7,500

8,000

15,500

iii) Rajinder’s Current A/c Dr

Vijay’s Current A/c Dr

To Revaluation A/c
(Being loss on revaluation transferred to partner’s

current A/c)

21,900

14,600

36,500

iv) Bank A/c Dr.

To Investment A/c

(Being Investment sold at book value)

40,000

40,000

v) Rajinder’s Current A/c Dr.

To Stock A/c

(Being stock taken over by Rajinder)

42,000

42,000

vi) General Reserve A/c Dr.

To Rajinder’s Current A/c

To Vijay’s Current A/c

(Being General Reserve distributed)

60,000

36,000

24,000

vii) Rajinder’s Current A/c Dr.

Vijay’s Current A/c Dr.

To Goodwill A/c

(Being Goodwill written off)

30,000

20,000

50,000
viii) Bank A/c Dr.

To Ranvijay’s Capital A/c

To Premium for Goodwill A/c

(Being new partner brings capital and share of

goodwill)

1,60,000

1,00,000

60,000

ix) Premium for Goodwill A/c Dr.

To Rajinder’s Current A/c

To Vijay’s Current A/c

(Being premium distributed in Sacrificing Ratio)

60,000

30,000

30,000

OR

Partner’s Capital A/c

Particulars L M N Particulars L M N

Def. Rev. Exp.A/c 20,000 20,000 30,000 Balance b/d 6,25,000 4,00,000 5,25,000

Investments A/c 50,000 Revaluation A/c 30,000 30,000 45,000

M’s Capital A/c 64,000 96,000 L’s Capital A/c 64,000

M’s Loan A/c 5,20,000 N’s Capital A/c 96,000

Balance c/d 12,80,000 19,20,000 Bank A/c 7,09,000 14,76,000

13,64,000 5,90,000 20,46,000 13,64,000 5,90,000 20,46,000

Balance Sheet of Reconstituted Firm as at March 31,2023

Liabilities Amount(₹) Assets Amount(₹)

Creditors 80,000 Land and Building 7,40,000

Bank overdraft 22,000 Machinery 2,25,000

Long term debts 2,00,000 Furniture 3,50,000

Capital A/C s:

L- 12,80,000

N - 19,20,000 32,00,000

Investments 50,000

Stock 3,00,000

Debtors 2,00,000

Employees provident fund 38,000 Less: prov. (10,000) 1,90,000

M’s Loan A/c 5,20,000 Bank 22,05,000

40,60,000 40,60,000

25 Maheep dues to be transferred to executors = 1,15,000 + 5,000 + 20,000 + 60,000 – 20,000 = 1,80,000

Maheep’s Executors Account

Date Particulars LF Amount

(₹)

Date Particulars LF Amount

(₹)

31/03/21 To Balance c/d 1,93,500 30/06/20

31/03/21

By Maheep’s Cap. A/c

Interest (9 months)

1,80,000

13,500

1,93,500 1,93,500

30/06/21

31/03/22

To Bank (I Instalment)

To Balance c/d

78,000

1,29,000
01/04/21

30/06/21

31/03/22

By Balance b/d

By Interest (3 months)

By Interest (9 months)

1,93,500

4,500

9,000

2,07,000 2,07,000

30/06/22

31/03/23

To Bank (II Instalment)

To Balance c/d

72,000

64,500

01/04/22

30/06/22

31/03/23

By Balance b/d

By Interest (3 months)

By Interest (9 months)

1,29,000

3,000

4,500

1,36,500 1,36,500

30/06/23 To Bank (III Instalment) 66,000 01/04/23

30/06/23

By Balance b/d
By Interest (3 months)

64,500

1,500

66,000 66,000

26 Journal Entries in the Books of Panther Ltd.

Date Particulars L.F Debit (₹ Credit (₹)

July 1

2022

Bank A/c Dr.

To Debenture Application and Allotment A/c

(Being Application money received)

21,60,000

21,60,000

July 1

2022

Debenture Application and Allotment Dr.

Loss on Issue of Debentures A/c Dr.

To 9% Debentures A/c

To Securities Premium A/c

To Premium on Redemption of Debentures A/c

(Being Debentures issued)

21,60,000

3,00,000

20,00,000

1,60,000

3,00,000

Mar. 31

2022
Debenture Interest A/c Dr.

To Debenture holders A/c

(Being Interest due on debentures)

1,35,000

1,35,000

Mar. 31

2022

Debenture holders A/c Dr.

To Bank A/c

(Being interest paid to debenture holders)

1,35,000

1,35,000

Mar. 31

2022

Statement of Profit and Loss Dr.

To Debenture Interest A/c

(Interest on Debentures charged from Statement of Pnl)

1,35,000

1,35,000

Mar. 31

2022

Securities Premium A/c Dr.

Statement of Profit and Loss Dr.

2,40,000

60,000

To Loss on Issue of Debentures A/c

(Loss on Issue of Debentures written off)

3,00,000