work are the two pillars on which the business has been built. It has a good turnover and profits. Encouraged by the huge profits, it decided to give the workers bonus equal to two months’ salary. Following is the Comparative Statement of Profit and Loss for the year ended 31st March 2014 and 2015. (a) Calculate Net Profit Ratio for the years ending 31st March 2014 and 2015. (b) Identify any two values which the company wants to communicate to the society. COMPARATIVE STATEMENT OF PROFIT & LOSS Particulars Note No. 2013-14 ₹ 2014-15 ₹ Absolute Change ₹ % Change Revenue from operation 20,00,000 30,00,000 10,00,000 50 Less: employees benefit expenses 8,00,000 10,00,000 2,00,000 25 Profit before tax 12,00,000 20,00,000 8,00,000 66.67 Tax at 40 % rate 4,80,000 8,00,000 3,20,000 66.67 Profit after tax 7,20,000 12,00,000 4,80,000 66.67 D.6 MARKS QUESTIONS ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES 1. Pass necessary journal entries in the books of Varun Ltd. for the following transactions: (a) Issued 58,000, 9 % Debentures of ₹ 1,000 each at a premium of 10 %. (b) Purchased 350, 11% Debenture of ₹ 100 each purchased from open market at ₹ 96 each. (c) Redeemed 450 8 % Debentures of ₹ 500 each by draw a lots. 2. Man and Dhan were partners in a firm sharing profits in 3:2 ratio. They admitted Bhan as a new partner for 1/3rd share in the profits of the firm. Bhan acquired his share from Man and Dhan in 2:3 ratio. Bhan brought ₹ 80,000 for his capital and ₹ 30,000 for his 1/3rd share as premium. Calculate the new profit sharing ratio of Man,Dhan and Bhan and pass necessary journal entries for the above transactions in the books of the firm. 3. Sun, Moon and Star were partners sharing profits in the ratio of 3:2:1.On 31st March 2015, their Balance Sheet as under: Liabilities Amount ₹ Assets Amount ₹ Capitals: Sun: 75,000 Moon: 70,000 Star: 50,000 ___________ Creditors General Reserve 1,95,000 72,000 24,000 Cash at bank Investments Patents Stock Debtors Buildings Machinery 70,000 50,000 15,000 25,000 20,000 75,000 36,000 2,91,000 2,91,000 Sun died on 31st May 2015.It was agreed that: (a) Goodwill was valued at 3 years purchase of the average profits of the last five years, which were: 2010-11 ₹ 40,000; 2011-12 ₹ 40,000; 2012-13 ₹ 30,000; 2013-14 ₹ 40,000 and 2014-15 ₹ 50,000.