Madras University (UnOM) 2007 B.C.A Computer Application Accounts - Question Paper

Deposits with ICICI Bank 50,000
Share Premium 75,000
Prepaid Rent 1,000
Underwriting commission 1,500
Stores and spares 6,000
Patents 2,000

Q seven (a) M and N are partners in a firm. M has provided a loan of Rs. 8,000 to the firm on one April, 1994. The partnership deed is silent upon the ques. of provision of interest on partner’s loan. calculate the amount of interest payable on the loan advanced by M to the firm assuming the books are closed on 31 December every year.

(b) P, R and S are in partnership sharing profits in the ratio of four : three : one respectively. It is given in the partnership deed that, on the death of any partner, his share of goodwill is to be valued at half of the profits credited to his account during the previous 4 completed years. R dies on January, 1997. The firm’s profit for the last 4 years 1993 : Rs. 1,20,000, 1994 : Rs. 80,000, 1995 : Rs. 40,000, 1996 : Rs. 80,000, Determine the amount that should be credited to R in respect of his share of goodwill. (Marks three + 3)

Q eight K Limited has been registered with an authorised capital of Rs. 2,00,000 divided into 2000 shares of Rs. 100 every of which, 1000 shares were offered for public subscription at a premium of Rs. five per share, payable as under :
Rs
on application 10
on allotment 25 (including premium)
on 1st call 40
on final call 30

Applications were received for 1800 shares, of which applications for 300 shares were rejected outright; the rest of the applications were allotted 1000 shares on pro-rata basis. Excess application money was transferred to allotment.

All the monies were duly received other than from Sundar, holder of 100 shares, who failed to pay allotted and 1st call money. His shares were later forfeited, and reissued to Shyam at Rs. 60 per share Rs. 70 paid up. Final call has not been made.

Pass necessary cash book and journal entries in the books of K Limited.

OR

M Ltd. issued on January 1, 1992 1000 12% debentures of Rs. 100 every repayable at the end of three years at a premium of 5%. It was decided to create a sinking fund for the redemption of debentures. The investment are expected to earn interest at 5% p.a.
Reference to the sinking fund table indicates that Re. 0.37209 invested at 5% p.a. amounts to Re. one at the end of 3 years, the investments were sold at Rs. 70,000 and the debentures were redeemed. Prepare debentures account, sinking fund account and sinking fund investment account for the 3 years. (Marks 10)

Earning:   Approval pending.