What provision of the Partnership Act. Shall apply for accounting purpose in the absence of any written or oral agreement in the following case :-

1). Interest on Capital.
2). Salary to partner.
3). Profit Sharing Ratio.

A' was in business maintaining his accounts on the calendar year basis. During 1999, he decided to admit his manager B as a partner with from October 1, 1999 on the following terms :-

1) Profits and losses to be shared on the ratio of 4:1 between A and B.
2) A's capital of Rs.2,60,000 on October 1, 1999 will carry Interest at 15% p.a. from that bank.
3) The sum of Rs.2000 paid as salary to B at the end of every month shall henceforth be treated as his drawing subject to interest at 9% p.a.

The result of 1999 after changing manager's salary for all 12 months were as under :
Net profit for the period 1-1-99 to 30-9-99 Rs.70,000
Net profit for the period 1-10-99 to 31-12-99 RS. 34,000
you are requested to prepare a Profit and loss Adjustment Account and the Partner's Capital A/c under the above circumstances.

A,B and C are old partners sharing profits in the ratio of 3:2:1. They admit D for 1/6th share. C would retain his original share. Find out the new ratio.

A and B are partners with capital of RS. 20,000 and 40,000 respectively and sharing profits equally. They admit C to a one-forth interest on the profit of the firm on the payment of RS. 22,000. Given journal entries to record goodwill.

A and B are partners in a firm sharing profit in the ratio of 2:1. The balance sheet of the firm in 31st dec. 1999 was as follows.

On the above sate C is admitted for 2/5th share in the profits of the firm. Following reevaluations were made at the time of admission :-
1. Accrued income not appearing in the books Rs.100
2. Market value of Investment is RS. 4500
3. Claim on account of compensation is estimated at Rs.150
4. Provision for doubtful debts is required at RS. 600
5. X, an old customer, whose account was written off as bad, has promised to pay RS. 350 in settlement of his full claim.
6. A and B had purchased a machinery on credit for RS. 3000 of which only RS. 100 are still to be paid. Both machinery and his paid liabilities did not appear in the balance sheet.
7. C is required to bring in RS. 10,000 as Capital. His share of goodwill was calculated at Rs.2400. you are requested to prepare balance sheet after giving effect to the above and give journal entries (without Narration)

Or

Q.) A,B and C sharing profits in the ratio of 3:1:1 decided to dissolve the firm. On 31st dec. 1999 their position was as follows :-
                                                                          Balance Sheet

It is agreed that :-
a) A is to take over all the furniture at Rs.10,000 and Debtors accounting to Rs.20,000 and 18,000. A also agrees to pay the creditors.
b) B is to take over all the stock book value and some of the sundry Assets at RS. 7200 (being book value less 10%)
c) C is to take over the remaining sundry Assets at 90% of the book value and assume responsibility for the discharge of the loan.
d) The remaining debtors were taken by a debt - calculating agency at 80% of book value.
e) The expenses of dissolution amounted to RS. 200 prepare realization A/c, bank A/c and Capital account of the partners.

Classify the following items under proper headings on the assets side of the balance sheet
1. Unexpired insurance
2. Loose tools
3. Goodwill
4. Livestock
5. Work in progress
6. Shares in Big B ltd.
7. Govt. bands
8. Discount in issue of shares
9. Bills receivable
10. Debtors

What are the methods of redemption of redeemable debentures issued by the company.

The X Ltd. tool over assets of RS 3,50,000 and liabilities of RS 30,000 of Y Ltd. for the purchase consideration of RS. 3,30,000. The X ltd. paid the purchase consideration by issuing debenture of
1. Rs.100 each at 20% premium
2. Rs.100each at 20% discount.
Give journal entry in both of the above circumstances.

XYZ ltd. issued a prospectus offering 2,00,000 equity shares of Rs.10 each on the following terms:-
On application Rs.1 per share
On allotment Rs.3 per share ( including premium of Rs.2)
On first call ( 3 months after allotment) Rs.4 per share
On final call ( 3 months after first call ) Rs.4 per share.
Subscription was received for 3,17,000 shares on 15th Feb. 1999 and the allotment made on 22nd Feb.1999 was as under :-
1. Allotment in full ( two applicants paid in full on allotment in respect of 4000 shares each) 38000
2. Allotment of 2/3rd of shares applied for 160000
3. Allotment of 1/4th of shares applied for 2000
Cash amounting to RS. 31000 being application money received with applications foe 31000 shares upon which no allotments were made was returned to applicants on 1st March 1999. The amounts due were received in the due dates with the exception of the final call in 100 shares. These shares were forfeited on 15th Sept. 1999 and received to A on the 18th Sept. 1999 on payment of RS. 9 per shares. The company had adopted Table A as its Articles. Give the necessary journal entries on the books of XYZ ltd. including those relating to cash Assume the company paid the interest due on 22nd August 1999 in cash.

Or

Q.) On 1st Jan.2000 KGA ltd. had Rs.8,00,000 5% debentures, outstanding in its books redeemable on 31st dec. 2000.
Fund was RS. 7,49,000 represented by :-
1. RS 1,00,000 own debentures purchased at an average price of RS. 99 and
2. Rs.6,60,000 nominal value of 3% war loan.
The amount annually credited by the sinking fund was Rs.28400.
The interest on debenture was paid by the company every year on 31st Dec. and interest on War loan was received also 31st Dec. annually.
On 31st Dec. 2000, the outside investment were realized at 98% and all the outstanding debenture were redeemed on that date.
You are required to write up the necessary ledger accounts foe the year 2000 in the books of the company.

What are the acts which a partner cannot on behalf of the firm without the consent of other partner?

Give the important clauses, which are included in the prospectus.

Give any two points of different between revaluation A/c and Realization A/c?

Give journal entries for the forfeited and re-issue of shares :-
1. X ltd. forfeited 20 shares of Rs.10 each RS. 7 called up, on which Mahesh had paid application and allotment money of Rs.5 per share. Of these 15 shares were re-issued to Naresh as fully paid up for rs.6 per share.
2. X ltd. forfeited 10 shares of RS. 10 each ( RS. 6 called up ) issued at a discount of 10% to Neeta on which she had paid Rs.2 per share. Out of these , 8 shares were re-issued to Meeta as Rs.8 called up for Rs.6 per share.

X,Y and Z were partners sharing profit and losses in the ratio of X 5/10, Y 3/10 and Z 2/10. They had taken out a joint life policy of the face value of Rs.20,000. On 31st Dec. 1999, its Surrander value was Rs.4000. on this date, the balance sheet of the firm stood as under.

On this date Y decided to retire and for the purpose :-
1. Goodwill was valued at Rs.15000
2. Fixed Assets were valued at Rs.30000
3. Stock was considered as worth Rs10000.
Y was to be paid through cash brought in by X and Z in such a way to make their capitals proportionate to their new profits sharing ratio which was to be X 3/5 and Z 2/5. Goodwill was to be passed through the books without raising a goodwill account ; the joint life policy was also not to appear in the balance sheet.
Record there matters in the journal of the firm and prepare the resultant balance sheet.

On 1st Jan. 1995 a limited company issued 10% debenture of the face value of RS 1,00,000 at a discount of 6%. The debenture were made on 31st Dec. each year. The directors decided in such a way as to shares discount each year with, an amount proportionate to debentures outstanding in the year.
The interest on debenture was payable yearly on 31st Dec. and Tax deducted at source rate is 10%.
Show the discount A/c and the interest on debenture A/c on the company's ledger for the duration of the debenture.

What is partnership deed? Give six particular, which a partnership deed generally consists?

Or

Q) X and Y were partners with Rs.20,000 as capital contributed equally. They shared profits as follows.
Salary to X Rs.1000 P.a.
Salary to Y Rs.500 P.a.
Remaining profits equally
Due to certain circumstances it become essential to make charges in the shares g X and Y. Which was as follows :
Salary to X Rs.500p.a.
Salary to Y Rs.1000p.a.
Remaining profits equally.
The above new charge was applicable subject to Z being introduced on 1st Jan 1999 as a partner (without capital) at a salary g RS. 1500 and 1/7th share in the profits and losses of the firm ( after charging interest on capital and all salaries) all of which was to be charged to X with the exception of Rs.1000. X and Y are entitled to interest on capital at 5% p.a.The profit for the year ended 31st Dec. 1999 before charging interest on capital or partners salary was RS. 2740.
Prepare Profit and loss approximately A/c.

Give the vertical form of the balance sheet as per the part I of schedule VI of the companies Act, 1956.