New Exam Prep Questions

Arti, Bharti and Gayatri were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st March, 2024 was as follows: | Liabilities | Amount (₹) | Assets | Amount (₹) | | :-------------------------- | :--------- | :------------- | :--------- | | Creditors | 1,50,000 | Cash at Bank | 1,30,000 | | General Reserve | 1,30,000 | Debtors | 70,000 | | Employees' Provident Fund | 25,000 | Machinery | 1,40,000 | | Workmen Compensation Fund | 75,000 | Building | 2,00,000 | | Arti's Capital | 2,00,000 | Patents | 5,000 | | Bharti's Capital | 1,00,000 | Profit and Loss A/c | 80,000 | | Gayatri's Capitals | 50,000 | Stock | 1,05,000 | | Total | 7,30,000 | Total | 7,30,000 | On the above date, Arti retired from the firm on the following terms: 1. Goodwill of the firm was valued at ₹3,00,000. 2. A provision of 5% for doubtful debts was to be created on debtors. 3. Machinery was to be depreciated by 10% and Building was to be appreciated by ₹22,500. 4. Patents were considered valueless and hence had to be written off. 5. A claim of ₹15,000 was admitted for Workmen Compensation. Prepare the Revaluation Account and Partner's Capital accounts on Arti's retirement.

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Pass the necessary Journal entries for forfeiture and reissue of shares in the following cases: (i) Premier Ltd. forfeited 600 shares of ₹10 each issued at a premium of ₹3 per share (payable with allotment) for non-payment of allotment money of ₹7 per share including premium. The first and final call of ₹3 per share was not yet made. The forfeited shares were reissued at ₹13 per share fully paid-up. (ii) Risha Ltd. forfeited 1,000 shares of ₹10 each, ₹8 per share called-up, issued at a premium of ₹2 per share to Atul, for non-payment of allotment money of ₹4 per share (including premium). Out of these, 800 shares were reissued at ₹7 per share, ₹8 paid-up. Pass necessary Journal Entries.

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Pass necessary Journal Entries in the books of Mitali Ltd. for the issue of debentures in the following cases: (i) Issued 7,000, 9% Debentures of ₹100 each at a discount of 10%, redeemable at a premium of 5% after 5 years. (ii) Issued 8,000, 11% Debentures of ₹100 each at a premium of 10%, redeemable at a premium of 5% after 5 years.

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Sonia and Rohit were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2023 was as follows: | Liabilities | ₹ | Assets | ₹ | | :---------------- | :------- | :------------- | :------- | | Sonia's Capital | 70,000 | Building | 2,00,000 | | Rohit's Capital | 90,000 | Machinery | 1,40,000 | | General Reserve | 80,000 | Furniture | 80,000 | | Sonia's Loan | 1,30,000 | Debtors | 1,20,000 | | Bank Loan | 2,20,000 | Stock | 60,000 | | Creditors | 70,000 | Cash at Bank | 60,000 | | Total | 6,60,000 | Total | 6,60,000 | The firm was dissolved on the above date on the following terms: 1. Building, machinery and furniture realised ₹3,44,000. 2. Debtors realised 90% only. 3. Creditors took away half of the stock in full settlement of their account. 4. Remaining stock realised ₹72,000. 5. Realisation expenses amounting to ₹14,000 were paid by Rohit. Prepare Realisation Account.

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On 1st April, 2021 a Motor Bike costing ₹ 50,000 was purchased and debited to travelling expenses account, on which depreciation is to be charged @ 20% p.a by Straight Line Method. The firm also paid an annual insurance premium of ₹ 20,000 which had already been charged to Profit and Loss Account for all the years. Journalise the transaction along with the working notes.

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Prateek, Charu and Sirima were partners in a firm sharing profits in the ratio of $3:2:1$. Prateek retired from the firm on 31st March, 2023. Charu and Sirima decided that the capital of the new firm will be ₹6,30,000. The capital accounts of Charu and Sirima after all adjustments on the date of retirement showed credit balances of ₹4,35,000 and ₹1,89,000 respectively. Calculate the amount of actual cash to be brought into the firm or to be paid to the partners. Also pass necessary Journal Entries.

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A. B and C are partners sharing profits and losses in the ratio of $5:3:2$. B died on 30th June, 2025. According to the partnership deed, B's share of profit up to the date of his death was to be calculated on the basis of the average profit of the last three completed years. The profits of the last three years were: 2022-23: ₹1,20,000 2023-24: ₹1,50,000 2024-25: ₹1,80,000 The firm's goodwill was valued at ₹2,40,000 on B's death. B's share of goodwill was to be adjusted through the Capital Accounts of A and C, who would share future profits in the ratio of $3:2$. Calculate: B's share of profit up to the date of death. B's share of goodwill. Pass the necessary Journal Entries.

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Amay, Anmol and Rohan entered into partnership on 1st July, 2021 to share profits and losses in the ratio of $3:2:1$. Amay guaranteed that Rohan's share of profit after charging interest on capital @ 6% p.a would not be less than ₹ 36,000 p.a. Their fixed capital balances are: ₹ 2,00,000, ₹ 1,00,000 and ₹ 1,00,000 respectively. Profit for the year ended 31st March, 2022 was ₹1,38,000. Prepare Profit and Loss Appropriation A/c.

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Anthony Ltd. issued 20,000, 9% Debentures of ₹100 each at 10% discount to Mithoo Ltd. from whom Assets of ₹ 23,50,000 and Liabilities of ₹ 6,00,000 were taken over. Pass entries in the books of Anthony Ltd. if these debentures were to be redeemed at 5% premium.

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P, Q and R are partners sharing profits in the ratio of $3:2:1$. They decide to share future profits equally from 1st April 2026. On that date, the following balances appeared in the books: 1. General Reserve: ₹60,000 2. Workmen's Compensation Reserve: ₹40,000 3. Debtors: ₹2,00,000 4. Provision for Doubtful Debts: ₹10,000 5. Machinery: ₹3,00,000 It was agreed that: A claim of ₹15,000 against Workmen's Compensation Reserve was admitted. Provision for Doubtful Debts was to be maintained at 5% of debtors. Machinery was to be depreciated by 10%. Pass necessary Journal Entries for all the above adjustments.

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