ACCOUNTS

SECTION A

PART I (12 Marks)

Answer all questions.

Question 1           [6×2]
(i) What is meant by ‘Current Maturities of Long Term Debt? How is it disclosed in the Balance Sheet of a company?
(ii) Mita and Mohan are partners sharing profits and losses in the ratio of 1:2 with capitals of ₹ 15,000 and ₹ 25,000 respectively. The partnership deed provides for interest on capital @ 6% per annum. The trading loss for the year ending 31st March, 2016 was ₹ 1,500. State, giving reason, the amount of interest of capital which will be allowed to the partners.
(iii) State the Application of Assets as per Section 48 of the Indian Partnership Act, 1932.
(iv) ‘A company has to pay interest on debentures prior to paying dividend on shares’. Justify.
(v) Give any two differences between Securities Premium Reserve and Premium on Redemption of Debentures.
(vi) Mittal & Sons earned a profit of ₹ 2,75,000 during the year ended 31st March, 2016. 10% of this profit was to be transferred to Investment Fluctuation Reserve. Pass the necessary journal entry for the same.

PART II (48 Marks)

Answer any four questions.

Question 2
(A) Mohit and Keshav are two partners sharing profits and losses equally. The Balance Sheet of their firm as at 31st March, 2016, was as follows:\

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