1.
1. Write a note on recoWrite a note on reco upment of Short Workingsupment of Short Workings 2.
2. Write a note : (a) New Write a note : (a) New Profit Sharing ratio (b) Gain ratioProfit Sharing ratio (b) Gain ratio 3.
3. Aruna and Appu are partners sharing profits and losses in the Aruna and Appu are partners sharing profits and losses in the ratio of 3:2. They admit Akarshratio of 3:2. They admit Akarsh and give him 1\5
and give him 1\5thth share. Aruna and Appu agree to share the remaining profits between share. Aruna and Appu agree to share the remaining profits between themselves in the ratio of 2:1. Calculate the
themselves in the ratio of 2:1. Calculate the profit sacrifice ratio of Aruna and Appuprofit sacrifice ratio of Aruna and Appu 4.
4. From the following information prepare receipts and payments account for From the following information prepare receipts and payments account for the year endedthe year ended 31.12.2007
31.12.2007
Rs. Rs.
Rs. Rs.
Cash
Cash 1.1.2007 1.1.2007 10,000 10,000 Sundry Sundry expenses expenses paid paid 21,00021,000 Subsriptions
Subsriptions 20,000 20,000 Investments Investments bought bought 1,0001,000 Entrance
Entrance free free 5,000 5,000 Honorarium Honorarium of of secretary secretary 1,5001,500 Locker
Locker rent rent 2,000 2,000 Rent Rent paid paid 2,0002,000 Bank
Bank charges charges paid paid 500500 5.
5. Prepare income and Expenditure A\c for the year ended 31.12.2007.Prepare income and Expenditure A\c for the year ended 31.12.2007. Rs. Rs. 1.
1. Admission Admission fees fees collected collected including including Rs.40,000 Rs.40,000 1,90,0001,90,000 2.
2. Admission Admission fees fees outstanding outstanding for for 2007 2007 5,0005,000 3.
3. Salary Salary paid paid including including Rs. Rs. 4,000 4,000 on on account account of of 2006 2006 49,00049,000 4.
4. Salary Salary outstanding outstanding for for 2007 2007 4,5004,500 5.
5. Entertainment Entertainment expenses expenses 22,50022,500 6.
6. Meeting Meeting Expenses Expenses 12,00012,000 7.
7. Purchase Purchase of of books books 10,00010,000 8.
8. Rent Rent and and Postage Postage 30,00030,000 9.
9. Donations(capitalized) Donations(capitalized) 30,00030,000 Admission
Admission fees fees to be to be treated as treated as revenue receiptrevenue receipt PART B PART B Answer any TWO
Answer any TWO question 10 Marquestion 10 Marks eachks each 6.
6. Write a note on garner Write a note on garner vs Murray decision in the dissolution of partnership firm?vs Murray decision in the dissolution of partnership firm? 7.
7. What are the adjustments to be made in the books of firm at the time of the retirement of aWhat are the adjustments to be made in the books of firm at the time of the retirement of a partner?
partner? 8.
8. Guddappa ,Basappa,Ulliveppa were partners in the firm sharing profits in 2:2:1ratio.TheGuddappa ,Basappa,Ulliveppa were partners in the firm sharing profits in 2:2:1ratio.The partnership deed provid
partnership deed provided ed that in case that in case of death of of death of a partner,the executors were a partner,the executors were entitled to :entitled to : 1.His capital as per the previous balance sheet
1.His capital as per the previous balance sheet 2.His share of profit to the date o
2.His share of profit to the date o f death.Caluclated on the basis of proportion profit of previousf death.Caluclated on the basis of proportion profit of previous year
year
3.His share of goodwill on the basis of two years
3.His share of goodwill on the basis of two years purchase of the average profits of thepurchase of the average profits of the preceding three years.
preceding three years. 4. Intrest on capital at 6% 4. Intrest on capital at 6% p.Ap.A
Guddappa died on 31.3.2008. The books were closed on 31
Guddappa died on 31.3.2008. The books were closed on 31stst December each year.The following December each year.The following were profits of firm for previous thre
2005-Rs 52,000, 2006- Rs. 56,000 and 2007- Rs.48,000
Guddappa capital on 31.12.2007 was Rs.20,00 and h is drawings to the date of death was Prepare Guddappa executors account.
9. Anantha and Ram agreed to dissolve the partnership on 31 .12.2007 on which date their balance sheet as follows:
Balance as on 31.12.2007
Liabilities Rs. Assets Rs.
Creditors 8,000 Bank 4,000
Ram’s loan 6,000 Debtors 6,000
Capitals: Stock 20,000
Anantha 20,000 Furniture 4,000
Ram 15,000 Plant & Machinery 18,000
Reserve Fund 6,000 Goodwil 3,000
55,000 55,000
The partners share profits and losses equally.The assets realized as follows:
Stock Rs 28,000,Debtors Rs 5,800,Furniture Rs 3,700,Plant & Machinery Rs 17,000 The creditors were paid off 5% discount.The cost of dissolution amounted to Rs 500
Prepare necessary accounts in the books of firm. PART-C Answer any three questions.15 Marks each
10. What do you mean by goodwill ? What are the different methods of valuation of goodwill? 11. What do you mean by Non-trading concerns? Write difference between receipts and payments
account and income and expenditure account.
12. On 1.1.2005 Anu Computers purchased a computer from Shreya on Hire purchase system on the following terms.
(i) Cash price of the computer was Rs. 20,000
(ii) Cash down payment Rs. 8,000 and the balance to be paid in three equal annual instalments plus intrest at 6% on outstanding balance. It was dec ided to depreciate the computer at 5% P.A. On diminishing balance each year.
From the above details computer A\c , Shreya’s A\C , depreciation A\C in the books Anu computers.
13. Byadgi coal to leased out a coal mine from Basu. Royality is Rs. 20 per tone of coal raised.
Minimum rent is 400000 P.A . Short workings c an be recouped during first 5 years of lease out is as follows:
Year Output in tonnes 2003 2,500 2004 12,000 2005 20,000 2006 30,000 2007 30,000
Write up minimum rent A\C , Royalities A\C , Short workings A\c and Basu’s A\c in the books Byadgi coal company.
14. The following are the Balance sheet on 3 1.12.2007 of Suresh and Jagu who were sharing profits in the ratio of 2:1 Balance sheet Liabilities Rs. Assets Rs. Creditors 65,900 Cash 1,200 Debtors 9,700 Capitals: Stock 20,000 Suresh 30,000 Building 50,000
Jagu 20,000 Plant & Machinery 35,000
1,15,900 1,15,900
They agreed to admit Sateesh into partnership on the following terms :
a) Sateesh was to be given 1/3 share in profits was to bring Rs. 15,00 0 as capital and Rs. 6,000 as goodwill
b) That the value of stock , plant and machinery were to be reduced by 10% c) That a provision of 5% was to be credited for bad and doubtful debts d) That the building was to be appreciated by 20%
e) Investment worth Rs. 1,400(not given in B\S) were to be credited into account f) That the amount of goodwill was to b
MAY/JUNE 2008 PART –A Answer any three questions five marks each.
1. Write a brief note on Royality and Short workings. 2. Write a note on Hire Purchase.
3. From the following details of a Non trading organization as on 1.1.2008. Prepare Balance sheet and find out capital fund.
Value of buildings Rs. 10,000 Value of Furniture Rs. 2,000 Value of Sports material Rs. 1,000 Cash in hand Rs. 500
Subscriptions outstandings Rs. 300 Rent of a building prepaid Rs. 200 Watchman’s salary outstanding Rs. 500
Subscriptions from members received in advance Rs. 300 Loan Rs. 2000
4. A and B are partners sharing profits and losses in the ratio of 3:2 they admit C and give him ¼ share . calculate the new profit sharing ratio of the partners .
5. From the following calculate the amount of royality payable each year if Royality rate is Rs. 10 per copy sold .
Year No. of copies printed unsold copies
2004 2000 100 2005 3000 200 2006 4000 400 2007 5000 500 2008 6000 600 PART-B Answer any Two questions. 10 marks each.
6. Explain the adjustments to be in the books of the firm at the time of the retirement of a partner.
7. Mention and briefly exjplain the adjustments to be made for ascertaining the account payable from the firm to the deccased partner.
8. From the following information relating to Sagar Cricket Club , prepare an income and expenditure account for the year ending 31st March 2008 and a balance sheet as on that date. Receipts and payments accounts for the year ended 31.3.2008
Receipts Rs. Payments Rs.
To subscriptions 5,000 By upkeep of grounds 2,000
“ Admission fees 300 “ Tournament expenses 700
“ Sale of old bats, pads etc 50 “ Rates and insurance 300
“ Tournament Subscription s 1,000 “ Secretary’s salary 170
“ Drawn from bank 4,000 “ Purchase of grass seeds 30
“ Donations 10,000 “ Purchase of balls, bats etc 700
“ Deposits of bank a/c 16,650
---
---20,650 20,650
---
---Additional informations.
Capital fund on 1.1.2007 Rs. 3,000 Balance on cash at Bank Rs. 3,000 Donation are to be capitalized. Adjustments to be made
1) Subscription outstanding at 31st March 2008 Rs. 700
2) Write of 20% of the value of bats and balls and 25% of printing and stationery.
9. A, B and C share the profit and losses in the ratio of 2:3:5. The balance sheet as on 31.12.2007 was as under Liabilities Rs. Assets Rs. Capitals Cash 18,000 A 36,000 Bills receivable 21,000 B 44,000 Furniture 28,000 C 52,000 Stock 44,000 Creditors 64,000 Debtors 42,000
Bills payable 32,000 Investments 32,000
Profit & loss a/c 14,000 Machinery 34,000
Goodwill 20,000
2,42,000 2,42,000
They admit D into partnership on the following terms:
a) Furniture, investments and machinery to be re duced by 15% b) The value of stock to be taken at Rs. 48,000
c) Goodwill to be valued at Rs. 26,000
d) D to bring Rs. 32,000 towards capital for 1/6 share and old partners adjust their capitals accordingly
e) Outstanding rent amounted to Rs. 1,800 f) Prepaid salaries amounted to Rs. 800
g) Adjustments of capital to be made by cash Prepare revaluation a/c and capital a/c of old partners.
PART-C Answer any Three question . 15 marks each.
10. Give the meaning of non-trading organizations with examples. Write the differences between an income and expenditure account and a rec eipts and payment account.
11. Explain the applicability of the rule in Garner Vs Murray in the dissolution of partnership firms. 12. Srushti collieries Ltd leased some land for a m inimum, rent of Rs. 3,000 for the first year , Rs.
5,000
In the second year and thereafter Rs. 10,000 p.a. merged into a royality of 50 paise per ton with power to recoup short workings over the years after the occurring of short workings. The annual outputs for 5 years commencing from 2002 were:
Year Output in tons
2002 3,000
2003 8,600
2004 22,000
2005 18,000
2006 30,000
There was a provision in the lease that, in the event of a strike and the minimum rent not being reached the actual royalties earned for t he year discharge all rental obligations for that year.
Prepare :
a) Minimum rent a/c b) Royalties a/c c) Short workings a/c
d) Land lord a/c in the books of Srushti Colliers Ltd.
13. On 1.1.2007 Bombay Taxi Company purchased a car on hire purchase on the following terms a) Cash price of the car was Rs. 10,000. Down payments Rs. 4,000
b) Balance to be paid on the three equal installments’ plus interest on the outstanding balance at
Prepare:
Car account, hire sellers account, interest account and depreciation account in the books of the Bombay Taxi Company. Deprecation on the car is to be charged at 25% on straight line method. Also show the workings on interest calculation.
14. A,B and C were partners sharing profits and losses in the proportion of 3:2:1 respectively . Their balance sheet as on 1.4.2008 was under
Creditors 14,000 Cash 10,000 Reserve 12,000 Debtors 16,000 CAPITALS: Stock 25,000 A 39,000 Plant 21,000 B 20,000 Premises 24,000 C 11,000 70,000 --- ---96,000 96,000 ---
---On the above date A retaired on the following terms:
a) A to be paid Rs. 60,000 in full setelment of all claims including goodwill b) The amount due to A be settled as follows:
A to take 1:2 of stock; ¼ of debtors and ½ of pre nuises c) The balance due to A to be paid later
d) Plant to be depreciated by Rs.1,000 , premises to be revalued at Rs. 30,000 and stock to be revalued at Rs. 26,000
Prepare revaluation , partners capital account and continuing partners balance sheet. October/November 2007
(2003 Scheme) PART –A Answer any THREE questions 5 marks each
1. Give the meaning of Dead Rent and Short Workings. 2. What is Hire Purchase ? How does it differ from sale.
3. From the following information prepare Receipts and Payments Account. Rs.
Opening balance of cash in hand 2,000
Subscriptions received 8,000 Interest received 4,000 Salaries 4,000 Rent Paid 300 Sundry expenses 200 Stationery 1,500
Investments made during the year 4,000
Telephone charges 1,500
4. A T.V. was purchased on Hire purchase system the terms of payments are as follows Rs. 2,000 to be paid on signing the agreement
Rs. 2,600 at the end of the second year Rs. 2,400 at the end of the third year Rs. 2,200 at the end of the fourth year
If interest is charged at the rate of 10% p.a. What is the cash price of the T.V.
5. Ram , Lakshman and Bharath are partner sharing profits and losses in the ratio of 3:2:1. Bharath returns and his share is gained by Ram 1/24 and Lakshman 1/8. Caluclate the New Profit Sharing of Ram and Lakshman.
PART-B Answer any Two questions . 10 marks each.
6. Explain the treatment of Goodwill at time o f Admission and Retirement of a partner. 7. What is the principle in Garner Vs Murray ? When it is applicable ?
8. The following is the Balance Sheet of A, B and C who shared profits and losses in the ratio of ½ , 1/3 and 1/6 respectively.
APRIL/MAY 2006 (2003 Scheme) Answer any Three questions 5 marks each .
1. Explain the rule laid down is Garner Vs Murray decision. 2. Caluclate the interest for each instalment from the following.
On 1st January 2000 A purchased a T.V on hire purchase system the cash price of the T.V is Rs .7,450 the payment is made as follows .Rs.2000 on signing the agreement and Rs. 2000 annually for 3 years..
3. X,Y and Z are the partners in a firm sharing profit and losses I the ratio of 3:2:1.Y retires from the firm, his share is gained by X and Z in 1:1 ratio. Find new ratio of X and Y.
4. Explain the following a) Short working b) gaining ratio
5. A and B are partners sharing profits and losses in the propotion of 7:5 . They agreed to admit C into partnership who is to get 1/6th share in profits . The acquires t his share as 1/24th from A and 1/8th from B. Find out new profit sharing of all partners.
PART-B
Answer any two questions . Each question carries 10 mar ks .
6. Distinguish between Income and Expenditure and Receipts and payment account.
7. From the following prepare income and expenditure account for the year ended 31.12.2004
To,balance b/d By salaries & wages 40,000
Cash in office 4,000 By Rents and rates 2,000
Cash at bank 500 4,500 By printing and stationery 100 To subscription 30,000 By postage and telegraphs 400 (including Rs1,000 for 2003) By purchase of bicycle 2,000 To,interest on investment 10,000
To bank interest 500 By balance c/d
To sale proceeds of a jeep 3,000 cash in office 500
Cash at bank 1,500 2,000
48,000 48,000
Adjustments
1. Subscriptions outstanding for the current year Rs. 8000
2. The amount due towards salaries & wages and printing and stationery are Rs. 1,500 and 500 respectively.
8. What is joint life policy ? Explain the treatment of joint life policy in partnership account .
9. A, B,c and D are partners sharing profit in the ration of 2:2:1:1. There balance sheet as on 31.12.2004 was as follows.
Liabilities Assets
Capital Accounts Fixed assets 20,000
A 14,000 Debtors 10,000 B 12,000 cash at bank 2,000 C 2,000 Profit A/C 12,000 D 1,600 29,600 Creditors 12,000 Bills payable 2,400 44,000 44,000
On 1.1.2005 the firm was dissolved all the asset except cash were realized for Rs. 24,800. Realization expenses were Rs.200 all the liabilities were discharged at book values. C becomes
insolvent and he could not bring anything from his private estate. Pr epare realization a/c and capital a/c , applying Garner Vs moray decision.
PART-C Answer any Three questions 15 marks each.
10. On 1.1. 1999 Anuradha co., obtained from Bharth a lease of mine terms buying a royality of Rs. 2 per ton raised subject to a minimum rent of Rs. 9,000 P.A. with a right to recoup the shoot workings over the first 4 years of the lease. From the following details prepare royalities a/c , short working a/c and Bharth’s a/c in the books of Anuradha.
Year Sales in tons Closing stock tons
1999 1500 500
2000 2300 400
2002 6000 800
2003 3600(strike) 600
2004 4500(lock out) 500
During the event of strike the minimum rent not being reached, the actual royalities for the year discharged the rental obligations for that year and in the event of lock out the lessee would enjoy the concession in respect of minimum rent for 40% of the prepaid of lock out.
11. What are the features of income and expenditure account? How is rec eipt and payment account is converted into income and expenditure account?
12. Explain the various methods of treating goodwill in the books of firm when a new partner is admitted and on retirement of a partner.
13. A purchased a computer from B for cash price of Rs. 25788 on hire purchase system. On 1.1.2002 A paid down payment of Rs.4000 on signing the contract and agreed to pay the balance in 3 equal installment of Rs.8000 due on 31st December each years. Rate of interest is 5% P.A. Charges depreciation on computer at 20% P.A. On WDV each year pass journal entries in the books of A assuming that he is the owner of the computer.
14. A and B are partnership firm sharing profits in the ratio of 3:1 the balance sheet of the firm on 31.12.2000 was as follows.
Liabilities Assets
Creditors 1800 Bank 1000
Workmen compensation 1200 Bills receivable 2500
Fund Debtors 4000
General reserve 2100 less provisions 500 3500
Capital Stocks 3000
A 6000 Investments 5000
B 4900 Goodwill 1000
16000 16000
On the above C is admitted for 2/5th share in the profits of the firm and the following revaluation were made.
1. Accrued incomes not appearing in the books of Rs. 100 2. Market value of investments is Rs. 4500
3. Claim on a/c of workmen compensation is estimated at Rs. 150
4. X an old customer whose a/c was return of as bad. Has promised to pay Rs. 350 insettelment of his full debts.
5. C is required to bring Rs.8000 as capital and Rs.2000 as goodwill. His share of goodwill was calculated at Rs. 2400
Your required Revaluation A/C , partners capital account and initial balance sheet of new firm.
APRIL /MAY 2005 (Semester Scheme)
PART-A Answer any three questions 5 marks each.
1. Mention the adjustments at the time of admission of a partner and treatment of goodwill. 2. Write a note on Garner V/s Murray case.
3. Calculate the gain ratio with imaginary figures of a partnership firm. 4. Write notes on:
a) Minimum Rent b) Short working Recocepment 5. What are the methods of valuation of goodwill?
PART-B Answer any two questions 10 marks each.
6. The following is the receipts and payments account of the Mysore sports club for the year ending 31.12.2000.
Receipts Rs. Payments Rs.
To Balance b/d 625 By Billiards table 4,200
To Subscriptions 1999 320 by Repairs and Renewals 1.233
2000 18,500 by wages 7,275
2001 700 by Rent 6,125
To Entrance Fees 965 by interest 1,727
To locker rent 900 by Stationery & other
Expenses 4,750
To special subscription for by bal c/d 1,940
Governor’s party 5,240
27,250 27,250
Adjustments:
1. Entrance fees are not to be capitalized.
2. Outstanding subscriptions for governess party amounted to Rs. 750 3. Outstanding subscriptions for the current year amounted to Rs. 822 4. Locker rent Rs. 120 pertaining to previous year and Rs. 140 is owing.
6. Rs. 1,500 related to previous year and Rs. 1,650 is still owing from t he above information prepare income and expenditure account of the Mysore Club for the year ending 31st December 2000.
7. Neela , Mala and sheela were partners in a firm sharing profit and losses in the ratio of 2:2:1. A dissolve the firm the balance sheet stood as follows on the date of dissolution.
Balance sheet
Liabilities amount Asset amount
Creditors 5000 Cash 7000
Bills payable 4000 bills payable 3000
Reserve fund 1000 Stock 6000
Capitals Debtors 3500
Neela 9000 Furniture 3000
Mala 8000 Machinery 7000
Sheela 7000 24000 Goodwill 2500
Profit & loss 2000
34000 34000
Assets realized were as follows:
Bills Receivable Rs. 2800 , Stock Rs. 8000 , Debtors Rs. 3200, Machinery Rs. 8000 , Furniture Rs. 2800, Goodwill Rs. 2200,
The liability were paid in full expansion of dissolution amount to be Rs. 400. Prepare necessary accounts.
8. Karan and Kiran are equal partners. They decide to admit Kumar as a partner and to
readjust the balance sheet values for this purpose. The balance sheet of Karan and Kiran on 31st December 2004 was as under.
Liabilities Rs. Assets Rs.
Creditors 14,000 Cash in hand 1,800
Bills payable 5,400 Debtors 20,000
Capital Accounts Plant 4,000
Karan 40,000 Stock 23,600
Kiran 30,000 70,000 Buildings 40,000
---
---89,400 89,400
The following adjustments were to be made before Kumar’s admission
1. Kumar brings Rs. 30,000 as his capital 1/4th share and Rs. 18,000 for goodwill 2. The half of the goodwill amount is withdrawn by the old partners.
3. Pla nt was valued at Rs. 3,600
4. The stock is to be depreciated by 10%
5. Rs. 1,000 were to be provided for doubtful debt
Prepare Revaluation A/c, Partners capital A/c and the balance sheet of the newly constituted firm.
9. Sunil, Suraj and Sharma were partners sharing profits and losses equally. Their balance sheet on 31.12.2004 was as follows.
Balance sheet as on 31.12.2004
Liabilities Rs. Assets Rs.
Sundry Creditors 22,000 Cash in hand 3,000
Profit and loss A/C 6,000 Cash at Bank 5,000
Capital Accounts Debtors 15,000
Sunil 40,000 Plant & Machinery 30,000
Suraj 30,000 Stock 20,000
Sharma 35,000 1,05,000 Land & building 60,000
---
---1,33,000 1,33,000
Suraj retired on the above date and partners agreed that: 1. The goodwill of the firm is to be valued at Rs. 27,000 2. Land and Buildings is to be appreciated by 8%
3. Plant and Machinery is to be depreciated by5% 4. Stock to be reduced by 5%
5. Rs. 1,100 to be provided for doubtful debts
Prepare the necessary ledger accounts and the Balance sheet of continuing partners. PART-C
Answer any Three questions 15 marks eac h.
10. From the following particulars relating to the Theosophical Society , prepare : 1. A Receipts and payments account
2. Income and Expenditure Account as on 31.12.2004 and 3. A balance sheet as on the above date.
Balance sheet of Theosophical Society as on 31.12.2004
Liabilities Rs. Assets Rs.
Outstanding Creditors 850 Cash at bank 6,000
Capital fund 31,150 Investments 20,000
Sundry Debtors accured
Interest o/s 250
Outstanding subscriptions 800
Library books 2,000
Furniture & Fixtures 2,950
---
The transactions for the year 2004 were:
Receipts: Subscriptions Rs. 5,000 , collection from concerts and Lecture Rs. 2,000 . Interest on investments Rs. 950, entrance fee received Rs. 1,000 and sale of old furniture Rs. 1500.
Payments: Rent Rs. 1,200 , printing Rs. 300, Advertising Rs. 400, Sundries Rs. 110 , investment in securities Rs. 5,000, Furniture’sRs. 800, Library books Rs. 600 and of concerts and lectures Rs. 1,500 The following were outstanding as on 31.12.2004:
Printing Rs. 150 , Rent Rs. 200 , Interest on investment Rs. 300 and subscription Rs. 650 , Capitalize t he entrance fees. Cash on hand on 31.12.2004 was Rs. 4,340.
11. Mr. Kariayappa wrote book on Marketing and got it published with Aloka publishers. Madikeri on the terms that Royality is to be paid Rs. 5 per copy sold subject to a minimum royality of Rs. 15,000 per year with a right recoup short workings over the first three years only The details are as under.
Year No. of copies printed No. of copies of closing stock
2000 2,000 200
2001 3,000 300
2002 4,000 400
2003 5,000 500
Prepare : 1. Minimum Royality account 2. Royality Account 3. Short working account 4. Kariyappas account in the books of Aloka publishers.
12. R buys a pumposet on hire purchase system on 1 .1.2000 The terms of payments are as follows:
1. Rs. 2,000 to be paid on signing the agreement 2. Rs. 2,800 at the end of 2,000
3. Rs. 2,600 at the end of 2001 4. Rs. 2,400 at the end of 2002 5. Rs. 2,200 at the end of 2003
If interest is charged 10% p.a. What was the cash value of the pumpset? Show the necessary ledger accounts in R ‘s book after writing depreciation at 10% p.a. on written down value system.
13. Ravi and Mahesh were partners and decided to dissolve the firm on 31.12.2000 . Their balance sheet was as follows:
Balance sheet
Liabilities Rs. Assets Rs.
Creditors 5,600 Bank 4,000
Bank loan 5,000 Debtors 7,900
Ravi 20,000 Furniture 3,500
Mahesh 20,000 40,000 Assets 20,000
Current A/c Ravi 1,700 p&l a/c 3,000
Current a/c:Mahesh 600
---
---52,300 52,300
Debtors realized Rs. 7,500 , Stock realized Rs. 12,600, Furniture Rs. 4,000, Assets Rs. 16,000 legal charges Rs. 1,200 had to be paid in addition to cost dissolution Rs. 1,800 . Write journal entries and show the necessary ledger accounts to close the books.
14. On 1.1.2000 the Madras Transport Company has acquired 3 trucks of R s. 50,000 each from TATA MOBILES on the hire purchase basis. The terms of payments were Rs. 30,000 on signing the agreement and the balance in three equal annual installment of Rs. 40,000 together with 8% interest on 31st The December each year. The trucks are to be depreciated by 20% on reducing balance. The Madras Transport Company paid the first installment but could not pay the subsequent and hence the TATA Mobile took over two trucks adjusting the amount charging 30% depreciation.
Give Truck account and the Tata Mobile Co., Accounts for the 3 years in the books of Madras Transport Company.
