Q.5 ABC company limited with an authorised capital of 15000 equity shares of Rs 10 each , issued 12000 shares    to the public for subscription at a discount of Rs 2 per share applicable during allotment ,called up as follows :
Application Re 1 ;Allotment Rs 3 and first and final call of Rs 2 each.
Applications were received for 10000 shares.
All the money was received  except the following:

Mr .Q holding 100 shares failed to pay the allotment money and his shares were forfeited after the first call was made.
* Similarly ,Mr R. holding 200 shares failed to pay the first call money and his shares were forfeited after the final call was made.

* Subsequently , 50 shares of Mr .Q and 100 shares of Mr.R were reissued  to Mr .S at Rs 7 each.
From the above, you are required to prepare:
(i)Bank account,
(ii)Discount on issue of  equity  shares  account
(iii)Equity share capital account,
(iv)Calls in arrear account,
(v)Equity share forfeiture account and
(vi)Capital reserve account.

Q6. X and Y are in partnership with equal capitals as on 31th Dec. 1996.

Their books of account showed the following position :

Their partnership deed provided the following clauses :-
(a) Partners  are entitled to interest on capital @ 1% p.a
(b)Interest on drawings are to be charged @ 5% p.a
(c)X and Y are entitled to a salary of Rs.3000p.m and Rs 2000 p.m respectively.

Additional Information :-
(i) During the year X and Y withdrew Rs. 10000 and Rs. 12000 respectively.
(ii) Depreciation is to be provided on fixed assets  @ 10% p.a
(iii)Further bad debts Rs 5000 and provision for bad debts is to be created @ 5% on debtors.
(iv)Transfer Rs 50800  to general reserve.

From the above , you are required to prepare the statement of profit and loss for the year ended 31th Dec. 1997 together with a revised statement of affairs as on that date.

Q7(a). G of Gantok consigned goods to H of Haryana 100 cases costing Rs. 80 each and paid the following expense during transit:-
Freight--Rs 1000, insurance---Rs2000 and Advertisement--Rs 3000.
H received  the goods and incurred  the following expenses :-
Carriage --Rs 2000 and Godown rent---Rs 4000. H is entitled to an ordinary commission of 5% and a del-credere commission of  105. H sold  50 cases in cash @ Rs 100 each and the balance on credit @ Rs 120 each .A customer who took 10 cases became untraceable ans so H  decided to write off the amount due to him.
Finally , H remitted the amount due to G by a cheque.
From the above , you are required to prepare in the books of H ,
(i)G's accounts.
(ii)Consignment Debtors accounts.


Q7(b). The following information is available showing the stock position in the books of MN traders , a dealer in bicycles and Tricycles as on 1st April 1997:-
Opening stok of  bicycles---50 @ Rs 2000 each
Opening stok of  Tricycles--75 @ Rs 500 each.
During the month , he sold 25 bicycles and purchased 30 bicycles @ Rs2200 each while he was able to sell 15 Tricycles only.

From the above , calculate the value of closing inventory for both the items based on  FIFO and LIFO (Periodic) methods of valuation separately as on 30th April 1997:-

Q8The following is the Balance sheet of R, S and T as on 1st January 1997sharing profits and losses in the ratio of 3:2:1 resectively:-

BALANCE   SHEET

LIABILITIES	Rs	ASSETS	Rs
R's Capital	90000	Building	80000
S's Capital	80000	Machinery	70000
T's Capital	70000	Debtors 40000 less provision 2000	38000
Creditors	60000	stock	105000
R's Current A/c	6000	Cash and Bank	15000
S's Current A/c	7000	T's Current A/c	5000
	313000		313000

W is admitted as a partner from 1st january 1997 for 1/5 share of profit and  the new profit and loss ratio  between the old partners   being equal .Other terms and conditions of admission are as  follows :-
(i) W contributes Rs 75000  as capital but unable to pay premium for goodwill in cash and so it was decided to raise a goodwill  account in the books of the firm as would be appropriate under the said circumstances based on the capital of all the partners.

(ii) Partners capitals account are not to be disturbed under any circumstances. All adjustments relating to goodwill and profit and loss on revalution are to be adjusted through current account.

(iii) Assets and liabilities are to be revalued as follows:

Building- Rs. 1,00,000; Machinery--Rs. 64000;Provision for bad and doubtful debts is to be Calculated  @ 10% on debtors.

Partners after admission decide not to alter the value of assets and liabilities in the balance sheet of the new firm
(iv)Partners also decide to make their total capitals in the new firm proportionate to the new  profit and loss sharing ratio , the necessary adjustments to be made through the partners current accounts .

From the above , prepare a Memorandum Revaluation Account ,   Partners Capital and current  accounts the balance sheet of the new firm as at 1st  Jan. 1997 after admission.

Q9(a) J and Q entered into a joint venture with the object of constructing an office building  of a multinational company for a contract price of Rs 1500000. They agreed to share profits and losses in the ratio of 2:1 respectively .During the course of the venture , the following transactions took place:
(i)J purchase steel rods worth Rs 450000 subject to trade discount @ 10 % and paid for freight  Rs 10000 and also bought a plant for  Rs 50000
(ii)Q took a loan of Rs 400000 from a bank and bought cement costing Rs 300000 and bricks worth Rs 200000.
(iii) J remitted Rs 200000 to Q  towards joint venture.
(iv)Q paid for godown rent Rs 25000 and bought stone chips worth Rs 200000.
(v)Q draws a bill of exchange on J for Rs 250000 which was discounted by Q at a cost of Rs 5000
(vi) Q repaid the bank loan and paid Rs 8000 as interest.

Finally , the contract was  completed , at the end of which Q decided to take the plant for Rs 12000.     The joint  venture was closed by J received Rs 800000 and Q Rs 700000 from the company

you are required to prepare:-
(i)  memorandum joint venture accounts ,
(ii) Joint venture accounts with Q in the books of J.

Q9(b) D, E, F, P, and Z were  partners in a firm sharing profits and losses in the ratio of 5:4:3:2:1 respectively . Unfortunately , P and Z met with a tragic car accident in which both of them died on the spot So, the surviving  partners decided according to the partnership deed to raise  goodwill equivalent to the deceased  partners' share and to write it off to the capital accounts of the  continuing partners.
Hence , the goodwill of the firm was valued at Rs 150000 and D, E  and f decided to share future profits and losses in the ratio of 4: 6:5 respectively.
Give journal entries to record the above.