cbse 12th Standard Accountancy Reconstitution of a Partnership Firm - Admission of a Partner Important Questions And Answers Study Material - QB365 Set C | QB365

12th Standard CBSE Syllabus & Materials

12th Standard CBSE

CBSE 12th Economics Government Budget and the Economy Previous year Question Papers Study Material - QB365 Set A

NEW

12th Standard CBSE

CBSE 12th Computer Science Interface Python with MySQL - New Previous year Question Papers Study Material - QB365 Set A

NEW

12th Standard CBSE

CBSE 12th Computer Science Database Concept - New Previous year Question Papers Study Material - QB365 Set A

NEW

12th Standard CBSE

CBSE 12th Computer Science Data Communication - New Previous year Question Papers Study Material - QB365 Set A

NEW

12th Standard CBSE

CBSE 12th Computer Science Data Structures - New Previous year Question Papers Study Material - QB365 Set A

NEW

12th Standard CBSE

CBSE 12th Computer Science Functions - New Previous year Question Papers Study Material - QB365 Set A

cbse 12th Standard Accountancy Reconstitution of a Partnership Firm - Admission of a Partner Important Questions And Answers Study Material - QB365 Set C

Published on: 25/10/2025

Question Set C

cbse 12th Standard Accountancy Reconstitution of a Partnership Firm - Admission of a Partner Important Questions And Answers Study Material - QB365

Download CBSE Class 12th Standard CBSE Accountancy question papers, sample papers, important questions, and previous year solved papers in PDF format. Get free study materials, NCERT solutions, and exam preparation resources for Class 12th Standard CBSE Accountancy

Questions + Answers key

Take MCQ Accountancy Test

QB365 Student Learing Managemnet System

Std: 12th Standard CBSE - Accountancy

chapter: Reconstitution of a Partnership Firm - Admission of a Partner - Important Questions And Answers

Visit QB365-SLMS - https://www.qb365.in/slms/ Complete Questions and Answers

Questions:

Generic 3

6 x 3 = 18

What are the features of Receipt and Payment Account?

Pass necessary journal entries for the following transactions in the books of Gopal Ltd.
(i) purchased furniture for Rs 2,50,000 from M/s Furniture Mart. The payment to M/s Furniture Mart was made by issuing equity shares of Rs.10 each at a premium of 25%.
(ii) Purchased a running business from Aman Ltd for a sum of Rs 15,00,000. The payment of Rs 12,00,000 was made by issue of fully paid equity shares of Rs 10 each and balance by a bank draft.
The assets and liabilities consisted of the following
Plant Rs 3,50,000, stock Rs 4,50,000, Land and building Rs 6,00,000, sundry creditors Rs 1,00,000.

Prepare a Common-size Statement of Profit and Loss from the following information for the year ended 31st March, 2013:

Particulars	Note No.	31st March, 2013 Rs.
Revenue form Operations		17,00,000
Cost of Revenue from Operations		9,20,000
Employee Benefit Expenses		3,40,000
Other Incomes		90,000
Taxes Payable @ 50%

From the information given below, prepare a Comparative Statement of profit and loss:

Particulars	2012-13	2011-12
Revenue from Operations	Rs.3,50,000	Rs.2,00,000
Purchases of stock-in-Trade	Rs.2,00,000	Rs.1,00,000
Cost of Revenue from Operations	70% of Revenue from operations	60% of Revenue from Operations
Employee Benefit Expenses	Rs.7,350	Rs.4,000
Income Tax	45%	45%

The ratio of Current Assets (Rs.6,00,000) to Current Liabilities (Rs.4,00,000) is 1.5:1. The accountant of the firm is interested in maintaining a Current ratio of 2:1, by paying off a part of the current liabilities. Compute the amount of current liabilities that should be paid, so that the current ratio at the level of 2:1 may be maintained.

A, B and C were partners in a firm having capitals of Rs. 60,000; Rs. 60,000 and Rs. 80,000 respectively. Their Current Account balances were A : Rs, 10,000; B : Rs 5,000 and C : Rs, 2,000 (Dr.). According to the partnership deed the partners were entitled to interest on capital @ 50% p.a. C being the working partner was also entitled to a salary of Rs. 6,000 p.a.
The profits were to be divided as follows:
(a) The first Rs. 20,000 in proportion to their capitals.
(b) Next Rs. 30,000 in the ratio of 5 : 3 : 2.
(c) Remaining profits to be shared equally.
The firm made a profit of Rs. 1,56,000 before charging any of the above items. Prepare the Profit & Loss Appropriation Account and pass necessary journal entry for appropriation of profit.

Generic 8

5 x 8 = 40

Narang, Suri and Bajaj are partners in a firm sharing profits and losses in proportion of 1/2, 1/6 and 1/3 respectively.The balance sheet on 1st April, 2015 was as follows

**Books of Suri and Bajaj Balance Sheet as on April 1, 2015**
Liabilities		Amt(Rs)	Assets		Amt (Rs)
Bills Payable		12,000	Freehold Premise		40,000
Sundry Creditors		18,000	Machinery		30,000
Reserve		12,000	Furniture		12,000
Capital A/c			Stock		22,000
Narang	30,000		Sundry Debtors	20,000
Suri	30,000		(-)Provision for Doubtful Debts	(1,000)	19,000
Bajaj	28,000	88,000	Cash		7,000
		1,30,000			1,30,000

Bajaj retires from the business and the partners agree to the following
(i) Freehold premises and stock are to be appreciated by 20% and 15% respectively.
(ii) Machinery and Furniture are to depreciated by 10% and 7% respectively.
(iii) Provision for doubtful debts is to be increased to Rs.1,500.
(iv) Goodwill is valued at Rs.21,000 on Bajaj's retirement.
(v) The continuing partners have decided to adjust their capitals in their new profit sharing ratio after retirement of Bajaj.Surplus/deficit, if any, in their capital accounts will be adjustment through current accounts.
Prepare necessary ledger accounts and draw the Balance Sheet of the reconstituted firm.

'Ananya Ltd' had an authorised capital of Rs 10,00,00,000 divided into 10,00,000 equity shares of Rs 100 each. The company had already issued 2,00,000 shares. The dividend paid per share for the year ended 31st March, 2007 was Rs 30. The management decided to export its products to African countries. To meet the requirements of additional funds, the finance manager put up the following three alternate proposals before the Board of Directors
(i) Issue 47,500 equity shares at a premium of Rs 100 per share.
(ii) Obtain a long-term loan from bank which was available at 12% per annum.
(iii) Issue 9% debentures at a discount of 5%.
After evaluating these alternatives, the company decided to issue 1,00,000, 9%debentures on 1st April, 2008. The face value of each debenture was ( 100. These debentures were redeemable in four installmentsstarting from the-end of third year, which was as follows

Year	III	IV	V	VI
Amt(Rs.)	10,00,000	20,00,000	30,000	40,00,000

Prepare 9% debentures account from 1st April, 2008 till all the debentures were redeemed.

The summarised balance sheets of kartik Ltd as at 31st March 2014 and 2015 are

Particulars	Note No.	31st March 2014 Amt(Rs.)	31st March 2015 Amt(Rs.)
I.Equity and liabilities
1.Shareholder's Funds
(a) Share Capital		4,50,000	4,50,000
(b) Reserves and Surplus	1	3,56,000	3,78,000
2. Non-current Liabilities
Mortgage Loan		---	2,70,000
3.Current Liabilities
(a) Trade Payables (Creditors)		1,68,000	1,34,000
(b) Short-term Provisions(Provision for taxation)		75,000	10,000
Total		10,49,000	12,42,000
II.Assets
1.Non-current Assets
(a) Fixed Assets (Tangible)		4,00,000	3,20,000
(b) Non-current Investments		50,000	60,000
2.Current Assets
(a) Inventories(Stock)		2,40,000	2,10,000
(b) Trade Receivables(Debtors)		2,10,000	4,55,000
(c) Cash and Cash Equivalents		1,49,000	1,97,000
Total		10,49,000	12,42,000

Notes to Accounts

Particulars	2014(Rs.)	2015(Rs.)
1.Reserves and Surplus	3,00,000	3,10,000
General Reserve	56,000	68,000
Balance in Statement of Profit and Loss	3,56,000	3,78,000

Additional Information(i) Investments costing Rs.8,000 were sold during the year 2014-15 for Rs.8,500.
(ii) Provision for taxation made during the year was Rs.9,000
(iii) During the year, part of the fixed assets costing Rs.10,000 was sold for Rs.12,000 and the profit was included in the statement of profit and loss.
(iv) Dividend paid during the year amounted to Rs.40,000.You are required to prepare the cash flow statement.

10.

'Sulabh Ltd.' invited applications for issuing 1,50,000 equity shares of Rs.10 each at a premium of Rs.3 per share. The amount was payable was payable as follows:
On application - Rs.2 per share
On allotment - Rs.6 per share (including premium)
On first and final call - the balance
Applications for 2,00,000 shares were received and shares were allotted on pro-rata basis to all the applicants. Excess money received with applications was adjusted towards sums due on allotment. Suman who had applied for 2,000 shares failed to pay the allotment and call money. Raman failed to pay first and final call on his 500 shares. Shares of both Suman and Raman were for feited after the final call was made. The forfeited shares were re-issued for Rs.10 per share as fully paid up.
Pass necessary Journal Entries fr the above transactions in the books of the company.

11.

A and B are partners sharing profits and losses in the ratio of 3:2 On 31st March, 2014 their Balance Sheet was as follows:

Liabilities	Rs	Assets	Rs
Capital Accounts		Goodwill	5,000
A	60,000	Plant and Machinery	65,000
B	50,000	Furniture	15,000
General Reserves	10,000	Investments	20,000
Sundry Creditors	50,000	Stock	20,000
		Sundry Debtors	30,000
		Cash in Hand	15,000
	1,70,000		1,70,000

C was admitted on the following terms:

(i)C is bring capital Rs.40,000 and Goodwill Rs.15,000

(ii)Partners agreed to share the future profits in the ratio of 5:3:2.

(iii)Investments will be appreciated by 20% and furniture depreciated by 10%

(iv)One customer who owed the firm Rs.2,000 becomes insolvent and nothing could be realised from him.

(v)Creditors will be written back by Rs.2,000

(vi)Outstanding bills for repair Rs.1,000 will be provided for

(vii)Interest accured on investments Rs.2,000

(viii)Capital of the partners shall be in proportion to their profit sharing ratio. For this adjustments to be made through cash.

Prepare Revaluation account Partners' capital Account and the Balance sheet of the firm after C's admission.

1 Marks

1 x 1 = 1

12.

State the nature of business afftect the value of goodwill of a firm ?

Fill up / 1 Marks

1 x 1 = 1

13.

Name any three tools of financial statement analysis.

Generic 6

4 x 6 = 24

14.

Extracts of Receipt and Payment Account for the year ended March 31, 2017 are given below:

Receipt Subscriptions	(Rs.)
2015-16	2,500
2016-17	26,750
2017-18	1,000
	30,250

Additional Information:
Total number of members: 230.
Annual membership fee: Rs. 125.
Subscriptions outstandings on April 1, 2016: Rs. 2,750.
Prepare a statement showing all relevant items of subscriptions viz., income, advance, outstandings, etc.

15.

From the following Receipt and Payment Account for the year ending March 31, 2015 of Negi's Club, prepare Income and Expenditure Account for the same period:

Dr. Receipt and Payment Account for the year ending March 31, 2015 Cr.
Expenditure	Amount (Rs.)	Amount (Rs.)	Income	Amount (Rs.)
Balance c/d Bank		25,000	Purchase of furniture (1.7.14	5,000
Subscriptions			Salaries	2,000
2013	1,500		Telephone expenses	300
2014	10,000		Electricity charges	600
2015	500	12,000	Postage and Stationery	150
Donation		2,000	Purchase of books	2,500
Hall rent		300	Entertainment expenses	900
Interest on bank deposits		450	Purchase of 5% government papers (1.7.14	8,000
Entrance fees		1,000	Miscellaneous expenses	600
			Balance c/d:
			Cash	300
			Bank	20,400
		40,750		40,750

The following additional information is available:
(i) Salaries outstanding – Rs. 1,500;
(ii) Entertainment expenses outstanding – Rs. 500;
(iii) Bank interest receivable – Rs. 150;
(iv) Subscriptions accrued – Rs. 400;
(v) 50 per cent of entrance fees is to be capitalised;
(vi) Furniture is to be depreciated at 10 per cent per annum.

16.

P, Q and R are partners in a firm sharing profits in the ratio of 1:1:3 respectively.Their capital account showed the following balances on 31st March, 2015.P Rs.70,000; Q Rs.65,000 and R Rs.2,10,000.Firm closes its accounts every year on 31st March.P died on 30th Septembr, 2015.In the event of death of any partner, the partnership deed provides for the following
(i)Interest on capital will be calculated at the rate of 6% per annum.
(ii)The deceased partner's share in the goodwill of the firm will be calculated on the basis of 2years' purchase of the average profit of last years.The profits of the firm for the last three years were Rs.90,000; Rs.1,10,000 respectively.
(iii)Her share in the reserve fund of the firm will be paid.The reserve fund of the firm was Rs.60,000 at the time of P's death.
(iv)Her share of profit till the date of death will be calculated on the basis of sales.It is also specified that the sales during the year 2014-15 were Rs.20,00,000.The sales from April, 2015 to 30th September, 2015 were Rs.4,00,000.The profit of the of the firm for the year ending 31st March, 2015 was Rs.2,00,000.Prepare P's capital account to be presented to his legal representative.

17.

Alfa Limited invited applications for 4,00,000 of its equity shares of Rs 10 each on the following terms :

Payable on application	Rs 5 per share
Payable on allotment	Rs 3 per share
Payable on first and final call	Rs 2 per share

Applications for 5,00,000 shares were received. It was decided :
(a) to refuse allotment to the applicants for 20,000 shares;
(b) to allot in full to applicants for 80,000 shares;
(c) to allot the balance of the available shares’ pro-rata among the other applicants; and
(d) to utilise excess application money in part as payment of allotment money.
One applicant, whom shares had been allotted on pro-rata basis, did not pay the amount due on allotment and on the call, and his 400 shares were forfeited. The shares were reissued @ Rs 9 per share. Show the journal and prepare Cash book to record the above.

Multiple Choice Question

18 x 1 = 18

18.

A non-profit organization received Rs10,000 as the entrance fee of a new member. If 20% of the fee has to be capitalized, what is the amount of fee needs to be shown in the income and expenditure account?

(a)

＄2000

(b)

＄8000

(c)

＄9000

(d)

＄10,000

19.

Expenditures greater than incomes of a non-profit organization give rise to a

(a)

Loss

(b)

Profit

(c)

Surplus

(d)

Deficit

20.

Any change in the relations of partners without affecting the existing of partnership firm is called ____

(a)

Reassessment

(b)

Retirement

(c)

Revaluation

(d)

Reconstitution

21.

The circumstances when change in profit sharing ratio is needed:

(a)

All of these

(b)

When new partner admitted

(c)

When existing partner’s decide

(d)

When existing partner retires

22.

The decision is Garner Vs Murray was given in:

(a)

1904

(b)

1905

(c)

1933

(d)

1804

23.

Upon the sale of an established business its good will:

(a)

Marketable value

(b)

Not marketable value

(c)

(b) and (c)

24.

When all partners are insolvent creditors will be:

(a)

Paid fully

(b)

Paid rate ably

(c)

Taken over by the partners

(d)

Paid by government

25.

On the retirement of a partner any reserve being should be transferred to the capital account of:

(a)

All partners in the old profit sharing ratio

(b)

Remaining partners in the new profit sharing ratio

(c)

Neither the retiring partner, nor the remaining partner

(d)

None of above

26.

If the remaining partner want to continue the business, after the retirement of a partner, a new partnership agreement:

(a)

Necessary

(b)

Not necessary

(c)

Optioned

(d)

None of above

27.

Value of good will agreed upon Rs. 30000 on C,S admission and allowing him 1/4 share of total profit Good will is brought in cash, the amount of good-will be as:

(a)

Rs. 30000

(b)

Rs. 7500

(c)

Rs. 150000

(d)

Rs. 120000

28.

At the time of admission of a new partner the firm is:

(a)

Dissolved

(b)

Continued

(c)

Not effected

(d)

RE-organized

29.

Payment of dividend is

(a)

investing activity

(b)

financing activity

(c)

operating activity

30.

As which act companies is revised schedule VI

(a)

1956

(b)

1989

(c)

1978

(d)

1965

31.

Debenture holders are

(a)

Owners of the company

(b)

Creditors of the company

(c)

Vendors of the company

(d)

Customers of the company

32.

When debentures are issued at a discount, should be written off the discount

(a)

In the year of the issue of debentures

(b)

Within 5 years of the issue of debentures

(c)

During the life of the debentures

(d)

In the year of redemption of debentures

33.

Securities Premium Reserve collected by the company can be used for:

(a)

Issue of bonus shares

(b)

Payment of dividend

(c)

Any business purpose

(d)

None of the above

34.

Which is not a method to calculate the goodwill?

(a)

Average Profit Method

(b)

super profit method

(c)

Regular profit method

(d)

Capitalization method

35.

According to AS 26, which goodwill is recorded in the books:

(a)

purchased goodwill

(b)

self generated goodwill

(c)

both (i) and (ii)

(d)

None of the above

Visit QB365-SLMS - https://www.qb365.in/slms/

Answers Key:

Generic 3

6 x 3 = 18

The following are the features of Receipt and Payment Account:
1. Nature: It is a Real Account. It is a summarised version of Cash Book.
2. Nature of Transactions: It records only cash and bank transactions. Transactions other than cash and bank like depreciation, loss/ profit on sale of assets, etc. are not recorded in this account.
3. No distinction between Capital and Revenue items: It records all cash and bank receipts and payments of both capital and revenue nature.
4. Opening and closing balance: It begins with the opening balance of cash and bank and ends with the closing balance of the cash and bank (balancing figure) at the end of the accounting period.
5. Purpose: It reveals the cash position of an organisation. It helps to ascertain the total amount paid and received during an accounting period.

(i) Number of shares issued = 20,000 shares
(ii) Goodwill = Rs 2,00,000;
Number of shares issued = 1,20,000 shares

Percentage : Revenue from Operations 100%, Other Income 5.29% ,Cost of Revenue form Operations 54.12%,Employee Benefit Expenses 20% , PBT 31.17% ,Income Tax 15.59% , PAT 15.58%

Percentage change : Revenue from Operations 75%, Cost of Revenue from Operations 104.17%, Employee Benefit Expenses 83.75%, Others each 28.49%.

[Hints: Purchase of stock-in-trade is a part of cost Revenue from Operations.]

Let payment for Current Liabilities= X

\(\frac { 2 }{ 1 } =\frac { Rs.6,00,000-X }{ Rs.4,00,000-X } \)
\(Rs.8,00,000-2X=Rs.6,00,000-X \)
\(X=\quad Rs.2,00,000,\)

Dr. Profit and loss Appropriation Account for the year ended .... Cr.
Particulars	Amt (Rs.)	Amt (Rs.)	Particulars	Amt (Rs.)
To Interest on Capital			By Net Profit as per Profit and Loss Nc	1,56,000
A's Current A/c	3,000
B's Current A/c	3,000
C's Current A/c	4,000	10,000
To Salary
C's Current A/c		6,000
To Profit Transferred to
A's Current A/c	51,000
B's Current A/c	45,000
C's Current A/c	44,000	1,40,000
		1,56,000		1,56,000

Journal

Particulars	Amt (Dr)	Amt (Cr)
Profit and Loss Appropriation A/c Dr	1,40,000
To A's Current A/c		51,000
To B's Current A/c		45,000
To C's Current A/c		44,000
(Being profit distributed among the partners)

Working Note
1. Calculation of Interest on Capital
\(A=60,000 \times \frac{5}{100}=Rs. 3,000 ; B=60,000 \times \frac{5}{100}=Rs. 3,000 ; C=80,000 \times \frac{5}{100}=Rs. 4,000\)
2. Capital ratio of A, Band C =60,000 : 60,000 : 80,000, i.e. 3 : 3 : 4.
3.

Divisible Profit Rs. 1,40,000 viz.,	A Rs.	B Rs.	C Rs.
First Rs. 20,000 in 3 : 3 : 4	6,000	6,000	8,000
Next Rs. 30,000 in 5 : 3 : 2	15,000	9,000	6,000
Remaining profit Rs. 90,000 equally i.e. 1 : 1 : 1	30,000	30,000	30,000
	51,000	45,000	44,000

Generic 8

5 x 8 = 40

**Dr Revaluation Account Cr**
Particulars		Amt (Rs.)	Particulars	Amt (Rs.)
Machinery		3,000	Freehold Properties	8,000
Furniture		840	Stock	3,300
Reserve for Bad debts		500
Capitals:
Narang	3,480
Suri	1,160
Bajaj	2,320	6,960
		11,300		11,300

**Dr Partners’ Capital Account Cr**
Particulars	Narang	Suri	Bajaj	Particulars	Narang	Suri	Bajaj
Bajaj’s Capital A/c	5,250	1,750		Balance b/d	30,000	30,000	28,000
Bajaj's Loan			41,320	Reserves	6,000	2,000	4,000
				Revaluation(Profit)	3,480	1,160	2,320
Balance c/d	34,230	31,410		Narang’s Capital A/c			5,250
				Suri’s Capital A/c			1,750
	39,480	33,160	41,320		39,480	33,160	41,320
Suri's Current A/c		15,000		Balance b/d	34,230	31,410
				Narang's Current A/c	15,000
Balance c/d	49,230	16,410
	49,230	31,410			49,230	31,410

**Balance Sheet as on April 01, 2015**
Liabilities		Amount (Rs.)	Assets		Amount (Rs.)
Bills Payable		12,000	Free hold Premises		48,000
Sundry Creditors		18,000	Machinery		27,000
Bajaj’s Loan		41,320	Furniture		11,160
Suri’s Current		15,000	Stock		25,300
Capital Account:			Sundry Debtors	20,000
Narang	49,230		Less: Reserve for Bad Debt	1,500	18,500
Suri	16,410	65,640	Cash		7,000
			Narang’s Current Account		15,000
		1,51,960			1,51,960

Working Notes:
1. Bajaj Share in Goodwill = Total Goodwill of the firm´Retiring Partner’s Share = 21,000 x \(\frac{1}{3}=\text { Rs. } 7,000\)
2.Gaining Ratio = New Ratio – Old Ratio
\( \text { Narang's Gaining Share }=\frac{3}{4}-\frac{3}{6}=\frac{9-6}{12}=\frac{3}{12}\)
\(\text { Suri's Gaining Share }=\frac{1}{4}-\frac{1}{6}=\frac{3-2}{12}=\frac{1}{12}\)
Gaining Ratio between Narang and Suri = 3:1
3. Calculation of New Capitals of the existing partners.

Balance in Narang’s Capital = 34,230

Balance in Suri’s Capital = 31,410

Total Capital of the New firm after revaluation of assets and

liabilities and adjustment of Goodwill and Reserves = Rs.65,640

Based on new profit sharing ratio of 3:1
\(\text { Narang's Capital }=65,640 \times \frac{3}{4}=\text { Rs. } 49,230\)
\(\text { Suri's Capital }=65,640 \times \frac{1}{4}=\text { Rs. } 16,410\)
Note:
i. In the given Question Suri’s Capital is Rs 30,000 instead of Rs 20,000.
ii. Due to insufficient balance in Bajaj’s Capital Account, the amount due to Bajaj is transferred to his Loan Account.

Dr 9% Debentures Account Cr

Date	Particulars	Amt(Rs)	Date	Particulars	Amt(Rs)
2009			2008
Mar31	To Balance c/d	1,00,00,000	Apr 1	By Debenture Application and Allotment A/c	95,00,000
			Apr 1	By Discount on Issue of Debentures A/c	5,00,000
		1,00,00,000			1,00,00,000
2010			2009
Mar31	To Balance c/d	1,00,00,000	Apr 1	By Balance b/d	1,00,00,000
		1,00,00,000			1,00,00,000
2011			2010
Mar31	To Bank A/c	10,00,000	Apr 1	By Balance b/d	1,00,00,000
Mar31	To Balance c/d	90,00,000
		1,00,00,000			1,00,00,000
2012			2011
Mar31	To Bank A/c	20,00,000	Apr 1	By Balance b/d	90,00,000
Mar31	To Balance c/d	40,00,000
		70,00,000			70,00,000
2014			2013
Mar31	To Bank A/c	40,00,000	Apr 1	By Balance b/d	40,00,000
		40,00,000			40,00,000

Cash used in operating activities = Rs.(1,84,500); cash flow from financing activities=Rs.2,30,000;
Cash flow from investing activities=Rs.2,500

10.

Capital Reserve Rs.6,500, i.e., Rs.(Share Forfeiture) - Nil (Loss on Reissue).
[Hint: Bank A/c:Rs.4,00,000 (Application) + Rs.7,92,000 (Allotment) + Rs.7,40,000 (call) + Rs.24,000 (Reissue)].
(ii) Calls in Arrears Rs.18,000 i.e., Rs.8,000 (F/call) + Rs.10,000 (S/call).
(iii) Securities Premium Reserve Rs.4,45,5000 i.e.,4,50,000 (Cr) - Rs.4,500.

11.

Profit on Revaluation Rs.3,500. For existing Goodwill written off : Dr. A's Capital Rs.3,000 and B's Capital Rs.2000; Cr.Goodwill Rs.5,000; For Cash Goodwill: Dr.Premium for Goodwill A/c Rs.15,000; Cr. A's Capital and B's Capital Rs.7,500 each in their sacrificing ratio 1:1; Balance of capital A/cs after adjustments : A Rs.72,600, B Rs.60,900 and C Rs.40,000; Capital rearranged: A Rs.1,00,000, B Rs.60,000 and C Rs.40,000; Cash brought in by A Rs.27,400; Cash withdrawn by B Rs.900; Cash Balance Rs.96,500; Balance Sheet Total Rs.2,49,000.

[Hints: As total capital of new firm based on C's share =Rs.40,000X\(10\over2\)=Rs.20,000, so A's Capital=Rs.2,00,000x\(5\over10\)=Rs.1,00,000 and B's Capital Rs.2,00,000x\(3\over10\)=Rs.60,000]

1 Marks

1 x 1 = 1

12.

()
A business which products best quality of products or have a stable demand is likely to earn more profits and therefore, has more value of goodwill.

Fill up / 1 Marks

1 x 1 = 1

13.

()
(i) Comaparative financial statements (ii) Ratio Analysis (iii) Cash Flow Analysis

Generic 6

4 x 6 = 24

14.

Amount of subscription due for the year 2016-17 irrespective of cash Rs. 28,750 (i.e. Rs. 125 × Rs. 230).

Details	Amount (Rs.)
Subscriptions received as per Receipts and Payments Account	30,250
Add: Subscriptions outstanding on March 31, 2016	2,250
Add: Subscriptions received in advance on April 1, 2016	NIL
	32,500
Less: Subscriptions outstanding on April 1, 2016	2,750
	29,750
Less: Subscriptions received in advance on March 31, 2017	1,000
Income from Subscription for the year 2016-17. (125×230)	28,750

Details	(Rs.)	(Rs.)
(i) Outstanding as on 01.04.2016	2,750
Received for 2015–16	2,500	250
(ii) Due for 2016–17 (125×230)	28,750
Received for 2016–17	26,750	2,000
Outstanding as on 31-3-2017		2,250

15.

Dr. Books of Negi's Club Income and Expenditure Account for the year ending 31.3.2015 Cr.

Expenditure	Amount (Rs.)	Amount (Rs.)	Income	Amount (Rs.)	Amount (Rs.)
Salaries	2,000		Subscriptions		10,400
Add: Outstanding	1,500	3,500	Donation		2,000
Telephone expenses		300	Entrance Fees (50% of Rs. 1,000)		500
Electricity charges		600	Bank interest	450
Postage and Stationery		150	Add: Outstanding interest	150	600
Entertainment expenses	900		Interest on investment		200
Add: Outstanding expenses	500	1,400	Hall rent		300
Miscellaneous expenses		600
Depreciation on furniture		375
Surplus		7,075
(Excess of Income over Expenditure)
		14,000			14,000

16.

Transferred to P's account=Rs.1,32,100; P's share in goodwill=Rs.40,000; Gaining raio=1:3; P's share of current year's profit=Rs.8,000

17.

Journal

Particulars		Amt (Dr)	Amt (Cr)
Equity Share Application A/c\((5,00,000\times5)\)	Dr	25,00,000
To Equity Share Capital A/c \((4,00,000\times5)\)			20,00,000
To Equity Share Allotment A/c			4,00,000
To Bank A/c\((20,000\times 5)\)			1,00,000
(Being share application money adjusted)
Equity Share Allotment A/c	Dr	12,00,000
To Equity Share Capital A/c\((4,00,000\times 3)\)			12,00,000
(Being share allotment money due)
Equity Share First and Final Call A/c	Dr	8,00,000
To Equity Share Capital A/c\((4,00,000\times2)\)			8,00,000
(Being share first and final cal due)
Equity Share Capital A/c \((400\times 10)\)	Dr	4,000
To Equity Share Allotment A/c(WN2)			700
To Equity Share First and Final Call A/c			800
To Equity Share Forfeiture A/c			2,500
(Being 400 shares forfeited)
Equity Share Forfeiture A/c	Dr	400
To Equity Share Capital A/c			400
(Being shares re-issued and loss on issue charged from share forfeiture account)
Equity Share Forfeiture A/c\((2,500-400)\)	Dr	2,100
To Capital Reserve A/c			2,100
(Being share forfeiture account transferred to capital reserve account)

Dr Cash Book (Bank Column) Cr

Particulars	Amt (Rs)	Particulars	Amt (Rs)
To Equity Share Application A/c	25,00,000	By Equity Application A/c \((20,000\times5)\)	1,00,000
To Equity Share Allotment A/c(WN 3)	7,99,300	By Balance c/d	40,02,100
To Share Capital A/c \((400\times9)\)	3,600
	41,02,100		41,02,100

Values being by the company and the shareholders are:
(i) Equality Company has violated the value of equality by not allotting shares to all the applications.
(ii) Commitment A shareholder violated the value of commitment by not paying the unpaid amount on his share.
(iii) Motivation The company has indirectly demotivated the applicants by refusing allotment to some applicants.

Multiple Choice Question

18 x 1 = 18

18.

19.