Piyush Limited is a company with an authorized share capital of 2,00,00,000 in equity shares of...

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Piyush Limited is a company with an authorized share capital of 2,00,00,000 in equity shares of 10 each, of which 15,00,000 shares had been issued and fully paid. on 30th June, 2017. The company proposed to make a further issue of 1,30,000 shares. of 10 each at a price of 12 each, the arrangements for payment being : (i) 2 per share payable on application, to be received by 1st July, 2017; (ii) Allotment to be made on 10th July, 2017 and a further 5 per share (including the premium) to be payable; ▼ " (iii) The final call for the balance to be made, and the money received by 30th April, 2018. Applications were received for 4,20,000 shares and were dealt with as follows: (1) Applicants for 20,000 shares received allotment in full; (2) Applicants for 1,00,000 shares received an allotment of one share for every two applied for; no money was returned to these applicants, the surplus on application being used to reduce the amount due on allotment; JMKS © The Institute of Chartered Accountants of India Liabilities. Capital Accounts (3) Applicants for 3,00,000 shares received an allotment of one share for every five shares applied for; the money due on allotment was retained by the company, the excess being returned to the applicants; and (4) The money due on final call was received on the due date. You are required to record these transactions (including cash items) in the journal of Piyush limited. (10 Marks) (b) A, B and C are partners sharing profits in the ratio of 3:2:1. Their Balance Sheet as at 31st March, 2018 stood as: A B C Sundry Creditors General Reserves (8) ₹ JMKS 8,00,000 4,20,000 4,00,000 16,20,000 Furniture Office equipments Stock 3,70,000 Sundry debtors 23,50,000 Building 3,60,000 Less: Provision for Doubtful debts. Joint life policy Cash at Bank JMKS The Institute of Chartered Accountants of India Assets (9) JMKS Year Rs. 2014 90,000 2015 1,40,000 3,00,000 B retired on 1st April, 2018 subject to the following conditions: Office Equipments revalued at Rs. 3,27,000. (ii) Building revalued at Rs.15,00,000. Furniture is written down by Rs.40,000 and Stock is reduced to Rs,2,00,000. 2016 1,20,000 2017 1,30,000 P.T.O. 30,000 ₹ 10,00,000 2,40,000 2,80,000 2,50,000 (iii) Provision for Doubtful Debts is to be created @ 5% on Debtors. (iv) Joint Life Policy will appear in the Balance Sheet at surrender value after B's retirement. The surrender value is Rs. 1,50,000. (v) Goodwill was to be valued at 3 years purchase of average 4 years profit which were : 2,70,000 1,60,000 1,50,000 23,50,000 (vi) Amount due to B is to be transferred to his Loan Account. Prepare the Revaluation Account, Partners' Capital Accounts and the Balance Sheet immediately after B's retirement. (10 Marks) Piyush Limited is a company with an authorized share capital of 2,00,00,000 in equity shares of 10 each, of which 15,00,000 shares had been issued and fully paid. on 30th June, 2017. The company proposed to make a further issue of 1,30,000 shares. of 10 each at a price of 12 each, the arrangements for payment being : (i) 2 per share payable on application, to be received by 1st July, 2017; (ii) Allotment to be made on 10th July, 2017 and a further 5 per share (including the premium) to be payable; ▼ " (iii) The final call for the balance to be made, and the money received by 30th April, 2018. Applications were received for 4,20,000 shares and were dealt with as follows: (1) Applicants for 20,000 shares received allotment in full; (2) Applicants for 1,00,000 shares received an allotment of one share for every two applied for; no money was returned to these applicants, the surplus on application being used to reduce the amount due on allotment; JMKS © The Institute of Chartered Accountants of India Liabilities. Capital Accounts (3) Applicants for 3,00,000 shares received an allotment of one share for every five shares applied for; the money due on allotment was retained by the company, the excess being returned to the applicants; and (4) The money due on final call was received on the due date. You are required to record these transactions (including cash items) in the journal of Piyush limited. (10 Marks) (b) A, B and C are partners sharing profits in the ratio of 3:2:1. Their Balance Sheet as at 31st March, 2018 stood as: A B C Sundry Creditors General Reserves (8) ₹ JMKS 8,00,000 4,20,000 4,00,000 16,20,000 Furniture Office equipments Stock 3,70,000 Sundry debtors 23,50,000 Building 3,60,000 Less: Provision for Doubtful debts. Joint life policy Cash at Bank JMKS The Institute of Chartered Accountants of India Assets (9) JMKS Year Rs. 2014 90,000 2015 1,40,000 3,00,000 B retired on 1st April, 2018 subject to the following conditions: Office Equipments revalued at Rs. 3,27,000. (ii) Building revalued at Rs.15,00,000. Furniture is written down by Rs.40,000 and Stock is reduced to Rs,2,00,000. 2016 1,20,000 2017 1,30,000 P.T.O. 30,000 ₹ 10,00,000 2,40,000 2,80,000 2,50,000 (iii) Provision for Doubtful Debts is to be created @ 5% on Debtors. (iv) Joint Life Policy will appear in the Balance Sheet at surrender value after B's retirement. The surrender value is Rs. 1,50,000. (v) Goodwill was to be valued at 3 years purchase of average 4 years profit which were : 2,70,000 1,60,000 1,50,000 23,50,000 (vi) Amount due to B is to be transferred to his Loan Account. Prepare the Revaluation Account, Partners' Capital Accounts and the Balance Sheet immediately after B's retirement. (10 Marks)

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