12 Cem

SEC A
1. b) 2. a) 3. b) 7. d) 8.1 9.d) 10. b)
(20
11. d) 12. c) 13. c) 14. b) 15. a) 16. c) 17. a) 18. b) 19. b) 20. c)
SEC B
21

(i) Assets A/c Dr 10,00,000

To Liabilities A/c 1,80,000
To Cayns Ltd.
7,60,000
To Capital Reserve A/c (Balancing figure)
60,000
(Being business purchased from Cayns Ltd.)
(ii)
Cayns Ltd Dr.
Discount on Issue of Debentures A/c Dr.
7,60,000
To 9% Debentures A/c
40,000
(Being 8,00,000,9% Debentures issued at a discount of 5%)
8,00,000

22. (i) In the absence of Partnership deed, the provisions of Partnership Act, 1932 will
apply according to which no interest on capital is payable.
(i) !a the absence of Partnership deed, the provisions of Partnership Act, 1932 willapply according to
which interest on loan by partner will be paid @ 6% p.a.
(ii)ln the absence of Partnership deed, the provisions of Partnership Act, 1932 willapply according to
which profits will be shared equally.
23.

LIMSILITES

t0,00,00 So0a,
A0 New Share Old Profit Share + Gaining Share
AS Share15 +25 35
825
New Share of Aand B 3:2
Kajal's Gain 14 x 16 124
Rishabh's Gain =14 x26 224
Noopur's Gain 14 x36 =324
Kajal's New Share =14+ 124 =724
Rishabh's Share 14 + 224 =824
Noopurs Share =14+324 =924
Ne Proft Sharing Ratio -7:8:9
251 Ralka Capital afc .. dr. 43,750
Seema Capital a/c..dr. 26,250
To Goodwill afc 70,000
2 Weakr 50,000
Raka apital a/c 31,250
To Seema Capital a/c 18,750

40,000
To Raka Capital a/c
25,000
To Seema Capital a/c 15,000

26.

Date
Particulars L.F. Amount Amount
Dr. () Dr. ()
Bank A/c Dr.
To Rishabh's Capital A/c 17,00,000 12,00,000
To Premium for Goodwill A/c 5,00,000
(Being capital and goodwill brought in by Rishabh)
Premium for Goodwill A/c Dr.
To Anamika's Capital A/c 5,00,000 3,00,000
To Ambra's Capital A/C 2,00,000
(Being goodwill credited to old partners in their sacrificing ratio)

Value of Goodwill bought by Rishabh:

Share of Anamika =3,00,000
 Let the total goodwill bought by Rishabh is x 3/5 of x = 3,00.,000
K=3,00,000 x5/3 =5,00,000
SECC
27. In the Books of Keith, Bina and Veena Dr. Veena's Capital Account
ñculars Amount ( Particulars Amount O
Drawings Wc 15,000 Ry Balance b/d 75.000
oVeena's Executor's Ac 1,66,250 By General Reserve 10,000
Balancing Figure) By Veena's Salary A/c 6.250
By Profit and Loss Suspense A/c 10,000
By Keith's Capital Ac
40,000
By Bina's Capital A/c
40,000

Average Profit =(1,20,000+90,O00+1,50,000\/3 =*1,20,000

Veena's Share in Profit =1,20,000 x1/3 x3/12 =* 10,000
28

eeiteosmi
Se

Lmat

So.

29. Calculation of Goodwilt

Average profit =K(90,000+1,30,000+86,000)3 -1,02,000
Goodwill =1,02,000 x2 =*2,04,000
 and Farld
In the Books of Kabir
Working Note:
Goodwill to be br ugit in byy Malilts 1/A of 42,04,000 st51,000

Date Partlculars LE. Amount Dr. Amount,

() (3)
Cash Ae Dr. 51,000 51,000
To Premium for goodwill A/c
(Goodwillbrought in cash by Manik)
Prermium for Goodwill Ae Dr 51,000 38,250
To Kabir's Capital A/c
12,750
To Farid's Capital A/c
(Being premium for goodwillcredited to the capltal
of Asha and Aditi in the accounts
sacriicing ratio)

In the Books of XLtd.

Journal
Particulars
LF, Amount Dr. Amount Cr.
Sank A/c (3) ()
To Equity Share Dr.
Application A/e
(Being application money recelved) 35,00,000
35,00,000
Equity Share Application A/c
To Equity Share Capital A/c Dr
To Equity Share Allotment A/c 35,00,000
(Being shares allotted on 25,00,000
proportionate basis and excess
amount received on application adjusted 10,00,000
towards allotment)
3
Equity Share Allotment A/c
To Equity Share Capital A/c Dr.
To Securities Premium 20,00,000
Reserve A/c 10,00,000
(Being share allotment money including
4
premlum due) 10,00,000
Bank A/c
Dr.
Calls-in-Arrears A/c Dr. 9,00,000
To Equity Share Allotment A/c 1,00,000
(Being allotment money received, except for
5,000 shares) 10,00,000
5
EquityShare First and FinalCall A/c
To Equity Share Capital A/c Dr.
15,00,000
(Being share first and finalcall money due) 15,00,00r
 Bank A/c Dr. 19,50,000
Calls-in-Arrears A/e Dr 1,90,000
To Equity Share First and Final Call A/c 19,00,4
(8eing frsc and final call money recelved, except for 5,000
shares)

Equity Share Capital A Dr 5,00,000

Securities Premium Reserve A/c Dr. 1,00,000
ToShare Forfeiture A/c 3,50,000
To Calls-in-Arrears AC 2,90,000
(Being 5,000 shares forfeited for non-payment of allotment
money and first and final callmoney)

8 Bank A/c Dr. 4,50,000

Share Forfeiture A/c Dr. 50,000
To Share Capital A/c 5,00,000
(Being forfeited shares reissued at 90 per share, as fully
paid up)
9 Share Forfeiture A/ Dr. 3,00,000
ToCapital Reserve A/C 3,00,000
(Being share forfeited money transferred to Capltal Reserve)

31. In the Books of Krish, Vrish and Peter

Revaluation Account

Particulars Amount (3) Particulars Amount ()

To Stock A/c 900 By Premises A/c 16,000

ToProvision for Legal Damages A/c 1,200 By Provision for Doubtful Debts A/c 100
To Capital A/cs (Profit): 18,000 By Furniture A/c 4,000
Krish 9,000
Vrish 6,000
Peter 3,000

20,100 20,100

Partners' Capital Accounts

Particulars Krish (®) Vrish () Peter () Particulars Krish (3) Vrish () Peter ()

25,000 By Balance b/d 46,000 30,000 20,000

To Vrish's Capital A/c 14,000 26,000
47,000 26,000 By General Reserve A/c 6,000 4,000 2,000
To Vrish's Loan A/c
28,00D By Revaluation A/c 9,000 6,000 3,000
To Bank A/C
To Balance c/d 25,000 By Krish's Capital A/c 14,000

61,000 54,000 25,000 61,000 54,000 25,000

 Balance Sheet of Krish and Peter
Liabilities
Amount () Assets Amount ()
Creditos 15,000
Bank Loan Furniture 45,000
20,400 Stock
Bills Payable 8,100
12,000 Premises
Outstanding Salary 2,200 96,000
Provision for LegalDamages Debtors 6,000 5,700
7,200 Less : Provision for Doubtful Debts 300
Vrish's Loan Nc
Capitals : 26,000
Krish 47,000)
Peter 25,000

1,54,800
1,54,800

Working Note:
Calculation of Gaining ratio:
Krish = 5/6 - 3/6 = 2/6
Peter = 1/6 - 1/6 = 0
Therefore only Krish is the gaining
Partner.
32.

In the Books of A and B

Date
Particulars
LF. Amount Dr.
Amount Cr.
() )
A's Capital A/c Dr.
To B's Capital A/c 140
(Ommissin of interest on capital, now rectified) 140

Partners
Hyctiefsrea
Net Effect
Interest on Interest on
Capital Cr. Profits Dr. Dr. ()
drawings Cr. Cr. ()
() (3)
()
A 10,000 4,500 14,640
B 7,500 2,400 9,760
00,00r
 140 140
17,500 6,900 24,400

Working Note:
Table Showing Adjustments
examiner has calculated Net effect by any other method, full credit be
given:
Note: If an
Capital:
Calculation of Intereston Calculation of Opening Capitals
LF. A() B)
Particulars
1,65,500 1,27,600
Closing Capital 60,000 40,000
Add:Drawings 4,500 2,400
Add:Interest on Drawings (30,000) (20,000)
Less: Share of Proit
2,00,000 1,50,000
Opening Capital 7,500
10,000
Interest on Capital @5% p.a.

Journal Entries
33.
LF. Amount Dr. Amount Cr.
Date Particulars
() ()

2019
Dr. 71,000
March 31 Cash/Bank A/c 71,000
(a) To Realisation A/c
(Being furniture sold, auctioneer's, commission paid)
Dr. 7,000
(b) Priya's Capital A/c 7,000
To Realisation A/c
(Being unrecorded computer taken over by Priya)
Realisation A/c Dr. 44,000
(c)
To Bank/Cash A/c 44,000
(Being creditors paid in full settlement)
Realisation A/c Dr. 20,000
(d) 20,000
To Muskaan's Capital A/c
(Being Rohan sister's loan paid off by Muskaan)
Dr. 15,000
(e) Realisation Alc
To Rohan's Capital Ac 15,000
(Being expenses on dissolution paid by Rohan)
Dr. 8,000
() Muskaan's Capital A/c
Dr. 12,000
Priya's Capital A/c
Dr. 4,000
Rohan's Capital A/c
24,000
To Realisation A/c
(Being loss on dissolution debited to partners'
capital accounts)
 34. a) Bank a/c....dr 52,000

To Z's Capital a/c 40,000

To Premium for goodwill a/c 12,000

Premium for goodwill a/c...dr 12,000

To X's Capital a/c 6,000

6,000
To Y's Capital a/c
b)Bank a/c.dr 40,000

To 's Capital 40,000

Z's capital a/...dr 12,000

To X's Capital a/c 6,000

To Y's Capital a/c 6,000

c) Bank a/c.....dr 50,000

40,000
To Z's Capitala/c
10,000
To Premium for goodwilla/c
10,000
Premium for goodwill a/c.... dr
5000
To X's Capital a/c

To Y's Capital afc

2000
Z's Capital a/c
1,000
To X's Capital a/c
1,000
To Y's Capital a/c