Subject: Accountancy, asked on 23/1/18

1. A, B and C were partners. Their capitals were A-Rs.30,000, B-Rs. 20,000 and C-Rs. 10.000 respectively. According to the partnership act, they were entitled to interest on capital at 5% p.a.. in addition, B was also entitled to draw a salary of Rs. 500 per month. C was entitled to a commission of 5% on the profits after charging the interest on capitals, but before charging the salary payable to B. The net profits for the year were Rs. 30,000 distributed in the ratio of their capital without providing for above adjustments. The profits were to be shared in the ratio of 5 : 3 : 2 pass the necessary adjustment entry showing the workings clearly.
2) On 1.4.2015 Kalka Ltd issued 500, 9% debentures of Rs. 500 each at a discount of 4% redeemable at a premium of 5% after 3 years. Pass necessary Journal entries for the issue of debentures and debenture interest for the year ended 31st march 2016 assuming that interest is payable on 30th september and 31st rnarch and the rate of tax deducted at source is 10%. The closes its on 31st march every year.
3) RK and SK are in partnership sharing profits in the ratio of 2 : 3. On March 31, 2013. they agree to dissolve the business. After dissolution they wanted to start a NGO for Orphans in the city. Pass necessary journal entries at the time of dissolution of the firm to record the following:
(a) Realisation expenses amounted to Rs.3,000
(b) Deferred revenue advertising expenditure appeared in the books at Rs.1.80,000
(c) Debtors Rs.60,OOO were taken over by RK for Rs. 54,000
(d) An unrecorded asset of Rs.9,000 was taken over by SK 
(e) Liabilities amounting to Rs.72,000 already transferred to Realisation Account, were settled at Rs.66,000

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