1. State the two situations in which interest on partners’ capital is generally provided.
2. Reena and Raman are partners in a firm sharing profits in the ratio of 4 : 3. They admitted Roma as a new partner. The new profit sharing ratio between Reena, Raman and Roma was 3 : 2 : 2. Raman surrendered 3 1 rd of his share in favour of Roma. Calculate Reena’s sacrifice.
3. Suman and Sudha were partners in a firm sharing profits equally. Their fixed capitals were < 50,000 and < 25,000 respectively. The partnership
deed provided interest on capital at the rate of 12% per annum. For the year ended 31st March, 2016, the profits of the firm were distributed
without providing interest on capital. Pass necessary adjustment entry to rectify the error.
4. Y Ltd. invited applications for issuing 2000, 9% debentures of < 100 each at a discount of 10%. The whole amount was payable at the time of
application. Applications for 2400 debentures were received and pro-rata allotment was made to all the applicants. Pass necessary journal entries for the issue of debentures.
5. Z Ltd. forfeited 1000 equity shares of < 10 each for the non-payment of the final call of < 2 per share. Calculate the maximum amount of discount at which these shares can be reissued.
6. List the categories of individuals other than the minors who cannot become the members of a partnership firm.
7. Raj Motors Ltd. converted its 400, 12% 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 12% debentures had not yet been written off. Showing your working notes clearly, pass necessary journal entries for
the above transactions in the books of Raj Motors Ltd.
8. P, Q, R and S were partners in a firm sharing profits in the ratio of 5 : 3 : 1 : 1. On 1st January, 2017, S retired from the firm. On S’s retirement the goodwill of the firm was valued at < 4,20,000. The new profit sharing ratio between P, Q and R will be 4 : 3 : 3. Showing your working notes clearly, pass necessary journal entry for the treatment of goodwill in the books of the firm on S’s retirement.
9. C India Ltd. purchased machinery from B India Ltd. Payment to B India Ltd. was made as follows :
(i) By issuing 10,000 equity shares of < 10 each at a premium of 20%.
(ii) By issuing 1000, 9% debentures of < 100 each at a discount of 5%.
(iii) Balance by giving a bank draft of < 37,000.
Pass necessary journal entries in the books of C India Ltd. for the purchase of machinery and payment to B India Ltd.