Test Paper – 8
(2017-18)
Date : ___________
Class
Duration : 1 hr 10 m Accountancy XII
Max. Marks : 35
Instructions:
4 All questions are compulsory.
4 Question No. 1 to 4 carry 1 mark.
4 Question No. 5 carries 3 marks.
4 Question No. 6 and 7 carry 4 marks.
4 Question No. 8 and 9 carry 6 marks.
4 Question No. 10 carries 8 marks.
4 Use of calculator is strictly prohibited.
1. X and Y are partner's in a firm having no partnership deed. X desires that Y should not
participate in the conduct of firm business but Y does not agree.
Who is correct? [1]
2. P, Q and R were partner sharing profit in ratio 4 : 3 : 3. They decided to share profits in ratio
5 : 3 : 2. WCR was appearing in book at `1,50,000 on date of change in profit sharing ratio.
Claim against WCR was `75,000. Partner's decided to distribute remaining reserve.
Pass necessary Journals. [1]
3. Pankaj and Mahesh were partner sharing profits in ratio of their capital was `3,00,000 and
`2,00,000.
Ramesh was admitted for 1/6th share of profit Ramesh was asked to bring proportionate
capital. Calculate amount of capital that Ramesh will bring. [1]
4. 60% of debtor realised at 95% and remaining were given to debt collecting agency. Debt
collection agreed to pay 70%.
Debtor's were appearing in Books at `2,00,000 and provision for doubtful debt was `20,000.
Journalise. [1]
5. Seema, Kajal and Sudhir were partners sharing and losses equally. Sudhir retires and his
credit balance of capital was `1,50,000 on date of retirement, i.e. 31st March, 2017. It was
agreed that Sudhir will be paid in 3 equal half yearly installments carrying interest @ 10% p.a.
Prepare Sudhir’s Loan A/c. [3]
6. A, B and C were share profits and loss in ratio 3 : 3 : 4. They decided to share profits and losses
in ratio 5 : 2 : 3 w.e.f 1st April, 2017. [4]
Goodwill of the firm is values at `1,50,000 on that date.
Pass necessary Journal Entries in following cases.
Case - I: When goodwill appears in books at `50,000.
Case - II: No goodwill appears in books.
7. A, B and C are partners in a firm their Capital stood at `6,00,000, `8,00,000 and `7,00,000 on
1st April, 2017. [4]
They shared profit in ratio 2 : 3 : 2. Partner's are entitled to interest on capital @ 8% p.a. A and
B will get salary of `4,000 per month and `60,000 per annum respectively.
[1]
Test Paper
B share of profit inducting interest on capital but executing salary is guarantees at `1,00,000
p.a. Profit for the year was `3,46,000. Prepare P and L Appropriation A/c.
8. Abhishek, Prabal and Akshit were carrying on business in partnership sharing profits in the
ratio of 3 : 2 : 1 respectively. On 31st March, 2016 Balance sheet of the firm stood as: [6]
Balance Sheet
as at 31st March, 2016
Liabilities Amount Assets Amount
Sundry Creditors 16,000 Building 20,000
Bank loan 34,000 Goodwill 5,000
Capitals: Debtors 15,000
Abhishek 5,000 Stock 10,000
Prabal 7,000 Patents 5,000
Akshit 3,000 15,000 Bank 10,000
65,000 65,000
Partners decided to dissolve the firm
(a) Creditor took away stock in full settlement of their account.
(b) Building was sold at a profit of 150%.
(c) Patents were taken by Akshit at 10% less than the book value.
(d) Only `12,000 could be recovered from debtors.
Prepare Realization Account, Partner’s Capital Account and Cash Account of the firm.
9. Following is the Balance Sheet of A,B, and C who have agreed to share profit equally. [8]
Balance Sheet
as at 31st March, 2017
Liabilities Amount Assets Amount
Capitals: Investment 1,00,000
A 3,00,000 Land and Building 2,00,000
B 2,50,000 Furniture 1,50,000
C 2,90,000 8,40,000 Stock 70,000
General Reserve 45,000 Machinery 2,75,000
Investment Fluctuation Reserve 10,000 Debtor 1,03,000
Creditor 30,000 Provision for doubtful debt (3,000) 1,00,000
Cash 30,000
9,25,000 9,25,000
On 31st March, 2017 A decided to retire and B and C would share future profits in ratio 3 : 2
On date of retirement:
(a) Land and Building is to be appreciated by 20%.
(b) Machinery was depreciated by 10%.
(c) Bad debt `15,500.
(d) Market value of investment was `93,000.
(e) Capital of new firm in total will be same as before in new profit sharing ratio.
Pass the necessary Journal Entries.
[2]
Test Paper
10. A and B are partner's in a firm sharing profits in ratio 3 : 2. Their balance sheet on 31st March,
2017 was as follows: [8]
Balance Sheet
as at 31st March, 2017
Liabilities Amount Assets Amount
Outstanding Rent 15,000 Stock 10,000
Creditor 20,000 Debtor 80,000
Workmen Compensation Reserve 6,000 –Provision for doubtful debt 4,000 76,000
Capitals: Machinery 40,000
A 70,000 P & L A/c 5,000
B 50,000 1,20,000 Cash 30,000
1,61,000 1,61,000
On 31st March, 2017 C was admitted for 1/5th share.
(a) Bad debt was `6,000 and provision was to be maintained at same rate.
(b) Claim against workmen reserve was `10,000 and O/s rent was to be reduced by `4500.
(c) Goodwill was valued at `1,50,000, partner's will withdraw 40% of their share of goodwill.
(d) C will bring proportionate capital.
Prepare Revaluation A/c, Partner’s capital A/c and Balance sheet of new firm.
vvvvv
[3]
Test Paper
Hints/Solutions to Test Paper – 8
(2017-18)
Date : ___________
Class
Duration : 1 hr 10 m Accountancy XII
Max. Marks : 35
1. Y is correct.
2. P:Q:R
4:3 :3
5:3 :2
Journal Entry
Particulars Dr. (`) Cr. (`)
Workmen Compensation Reserve A/c Dr. 1,50,000
To Claim for workmen compensation 75,000
To P’s Capital A/c 30,000
To Q’s Capital A/c 22,500
To R’s Capital A/c 22,500
(Being claim against workmen compensation adjusted)
3. Pankaj : Mahesh : Ramesh → 1/6th share
3:2
6 1
Ramesh’s capital = Balance of Pankaj and Mahesh
5 6
6 1
3, 00, 000 2, 00, 000
5 6
⇒ `1,00,000
4. Journal Entry
Particulars Dr. (`) Cr. (`)
Cash A/c Dr. 1,70,000
To Realisation A/c 1,70,000
(Being debtors realised)
Working note:
2,00,000 (Total Debtors)
60% → 1,20,000 80,000 (Remaining)
95 70
Realised for 1, 20, 000 1,14, 000 80, 000 56, 000
100 100
5. Sudhir’s Loan A/c
Date Particulars (`) Date Particulars (`)
2017 2017
Oct. 1 To Cash (50,000 + 7,500) 57,500 Mar. 31 To Sudhir’s Capital A/c 1,50,000
2018 2017
Mar. 31 To Cash (50,000 + 5,000) 55,000 Oct. 1 To Interest 7,500
10 6
1, 50, 000
100 12
2018 2018
Mar. 31 To Balance b/d 50,000 Mar. 31 To Interest 5,000
10 6
1, 00, 000
100 12
1,62,500 1,62,500
[4]
Test Paper
2018 2018
Oct. 1 To Cash (50,000 + 2,500) 52,500 April 1 By Balance b/d 50,000
2018
Oct. 1 By Interest 2,500
10 6
50, 000
100 12
52,500 52,500
6. Calculation of Gaining/Sacrificing Ratio
3 5 2
gain
10 10 10
3 2 1
sacrifice
10 10 10
4 3 1
sacrifice
10 10 10
Case I:
Particulars Dr. (`) Cr. (`)
A’s Capital A/c Dr. 15,000
B’s Capital A/c Dr. 15,000
C’s Capital A/c Dr. 20,000
To Goodwill A/c 50,000
(Being old goodwill written off)
A’s Capital A/c Dr. 30,000
To B’s Capital A/c 15,000
To C’s Capital A/c 15,000
(Being Goodwill adjusted in Gaining/Sacrificing Ratio)
Case II:
Particulars Dr. (`) Cr. (`)
A’s Capital A/c Dr. 30,000
To B’s Capital A/c 15,000
To C’s Capital A/c 15,000
(Being Goodwill adjusted in Gaining/Sacrificing Ratio)
7. P/L Appropriation A/c
Particular Amount Particular Amount
To Interest on Capital By Net Profit 3,46,000
A’s Capital A/c 48,000
B’s Capital A/c 64,000
C’s Capital A/c 56,000 1,68,000
To Salary to
A’s Capital A/c (4,000 × 12) 48,000
B’s Capital A/c 60,000
To Divisible Profit to
A’s Capital A/c 20,000
(–)Guarantee to B (3,000) 17,000
B’s Capital 30,000
+ 6,000 36,000
C’s Capital A/c 20,000
(–) Guarantee to B (3,000) 17,000
3,46,000 3,46,000
[5]
Test Paper
8. Realisation A/c
Particulars Amount Particulars Amount
To Sundry Assets: By Sundry Liabilities:
Building 20,000 Sundry Creditors 16,000
Goodwill 5,000 Bank Loan 34,000 50,000
Debtors 15,000
Stock 10,000 By Cash A/c
Patents 5,000 55,000 Building 50,000
Debtors 12,000 62,000
To Cash A/c By Akshit’s Capital A/c (Patent) 4,750
Bank Loan 34,000 34,000
To Profit transferred to
Abhishek’s Capital A/c 13,875
Prabal’s Capital A/c 9,250
Akshit’s Capital A/c 4,625 27,750
1,16,750 1,16,750
Partner’s Capital A/c
Particulars Abhishek Prabal Akshit Particulars Abhishek Prabal Akshit
T Realisation A/c 4,750 By Balance b/d 5,000 7,000 3,000
To Cash A/c 18,875 16,250 2,875 By Realisation A/c 13,875 9,250 4,625
18,875 16,250 7,625 18,875 16,250 7,625
Bank Account
Particulars Amount Particulars Amount
To Balance b/d 10,000 By Realisation A/c 34,000
To Realisation A/c 62,000 By Abhishek’s Capital A/c 18,875
By Prabal’s Capital A/c 16,250
By Akshit’s Capital A/c 2,875
72,000 72,000
9. Journal Entries
Particulars LF Dr. (`) Cr. (`)
(a) Land and Building A/c Dr. 40,000
To Revaluation A/c 40,000
(b) Revaluation A/c Dr. 27,500
To Machinery 27,500
(c) Revaluation A/c Dr. 12,500
Provision for D/D Dr. 3,000
To Debtors 15,500
(d) Investment Fluctuation Reserve A/c Dr. 10,000
To Investment A/c 7,000
To A’s Capital A/c 1,000
To B’s Capital A/c 1,000
To C’s Capital A/c 1,000
(e) Reserve A/c Dr. 45,000
To A’s Capital A/c 15,000
To B’s Capital A/c 15,000
To C’s Capital A/c 15,000
(f) A’s Capital A/c Dr. 3,16,000
To A’s Loan 3,16,000
(g) Cash Dr. 2,41,000
To B’s Capital A/c 2,38,000
To C’s Capital A/c 3,000
[6]
Test Paper
10. Dr. Revaluation A/c Cr.
Particulars Amount Particulars Amount
To Debtors 5,700 By O/s Rent 4,500
To Workmen Compensation Fund 4,000 Loss on Revaluation:
A 3,120
B 2,080 5,200
9,700 9,700
Partner’s Capital A/c
Particulars A B C Particulars A B C
To P & L A/c 3,000 2,000 By Balance b/d 70,000 50,000
To Cash A/c 7,200 4,800 By C’s Current A/c 18,000 12,000
To Revaluation A/c 3,120 2,080 By Cash A/c 31,950
To Balance c/d 74,680 53,120 31,950
88,000 62,000 31,950 88,000 62,000 31,950
Balance Sheet (as at 31st March, 2017)
Liabilities ` Assets `
Claim for Workmen Compensation Fund 10,000 Machinery 40,000
O/s Rent 10,500 Debtor 80,000
Creditor 20,000 (–) Bad Debt (6,000)
Capital: 74,000
A 74,680 (–) P.D.D. (3,700) 70,300
B 53,120 C’s Current A/c 30,000
C 31,950 1,59,750 Cash (30,000 + 31,950 – 7,200 – 4,800) 49,950
Stock 10,000
2,00,250 2,00,250
Working note:
C’s share of goodwill = 1,50,000 × 1/5 = 30,000
C’s Current A/c 30,000
To A’s Capital A/c 18,000
To B’s Capital A/c 12,000
Calculation of C’s Capital A/c
⇒ Balance (A + B) × 5/4 × 1/5
⇒ 1,27,800 × 1/4
⇒ 31,950
[7]
Test Paper
[8]
