Saturday, 17 November 2018


Mock Test, Accountancy 12, Set 1
Partnership excluding Dissolution
Maximum Marks:40

1.      State giving reason whether the interest on loan given by partner to the firm be paid if
         there are losses?                                                                                                                           1
2.      What is Profit and Loss Adjustment Account?                                                                                  1
3.      Why is Profit and Loss Suspense Account prepared?                                                                   1
4.      State any one difference between Dissolution of Partnership and Dissolution of a Firm.     1
5.      X, Y and Z are partners sharing profits and losses in the ratio of 2:2:1.  After the final
         accounts have been prepared, it was discovered that  interest on drawings @ 5% p.a. has
         not been taken into consideration.  The drawings of the partner were :
         X- Rs. 15,000                        Y- Rs. 13,000                        Z- Rs. 12,000
         Pass the necessary adjustment journal entry.                                                                                   3
.                                                        3
6.      R and M were partners in a firm sharing profit in the ratio of 4:1.  On 01-04-2013, they           admitted K, an old hard working employee as a new partner in the firm.  New profit sharing          ratio 4:2:3.
         On the date of admission the Profit and Loss (Dr. balance) in the books Rs. 20,000.
         The firm also had a General Reserve of Rs. 1,00,000.  K is to bring Rs. 60,000 as premium
         for his share of goodwill. Pass all the necessary journal entries. Also identify the value being         highlighted in this case.                                                                                                               4
        
7.      N, D and A are partners sharing profit in the ratio of 5:3:7. N retire from the firm.  D and A
         decided to share future profits in the ratio of 2:3.  The adjusted capital of D and A showed
         balance of Rs. 33,000 and 70,500.  The total amount paid to be N to Rs. 90,500.
         This amount is to be paid by D and A in such a way that their capital become proportionate
         to their new profit sharing ratio.
         State the amount to be brought or paid to the partners and also pass journal entries.                  4        

8.         Babul and Vinay were partners. The Partnership Deed provided for:
(i)         Profit to be divided as Babul ½, Vinay 1/3, and 1/6 to be transferred to reserves.
(ii)        The accounts are closed on 31st March each year.
(iii)       In the event of death of a partner the executors will be entitled to the following:
                        (a)       Capital to the credit on the date of death.
                        (b)       Interest on Capital @ 12% p.a.
                        (c )      Proportion of profit to the date of death based on the average profits
                                    credited for the last three years.
                        (d)       Share of goodwill based on three years purchase of the average profits
                                    of the preceding three years.    
                        (e)       The profits for three preceding years were Rs. 48,000, Rs. 42000 and
                                    Rs. 45,000.
                        (f)        Capital account of Babul and Vinay were Rs. 90,000 and Rs.60,000.
                        (g)       Salary to Vinay Rs. 1,000 per month.
Prepare Vinay Account to be presented to his executors, as he died on 30th April.
According to Vinay’s will his executor should donate 50% of his share to “ An old age             home.”  Identify the value being highlighted in this case.                                                      6 
9.         A, B and C are partners in a firm.  On 01-04-2012their capital account stood at Rs, 8,00,000,
            Rs. 6,00,000 and Rs. 4,00,000 respectively.  They shared profit and losses in the ratio 5:3:2.
            Partners are entitled to interest on capital @ 5% per annum and salary to B Rs.3,000 per             month            and commission to C Rs. 12,000 as per provision of deed.    
            A’s share of profit (excluding interest on capital but including salary)is guaranteed at not less    than  Rs. 25,000 per annum. B,s share of profit (including interest on capital but excluding             salary)  guaranteed not less than Rs. 55,000 per annum.
            Any deficiency arising on that account shall be met by C.  The profit for the year ended 31-03-      2013 amounted to Rs. 2,16,000.
            Prepare Profit and Loss Appropriation Account and Partners Capital Accounts.                   6

10.    P and Q are partners sharing profits in the ratio of 2:1, their Balance Sheet as on
         31-03-2013 was as follows:
         Liabilities                              Amounts       Assets                                               Amounts
         Bank overdraft                    5,000              Debtors           40,000         
            Creditors                            30,000              Less:  Provision  3,600     36,400
            Reserves                            12,000              Stock                                     20,000
            Capital           P                   40,000              Machinery                            23,600
                                    Q                   30,000              Patents                                     2,000
                                                                                    Building                                35,000
                                                ------------------                                                  ----------------------
                                                       1,17,000                                                            1,17,000

            Miss Seema (MBA from IIM) was admitted as a new partner on this date:
            (i)         New ratio is 3:2:1.
            (ii)        He bring Rs. 10,000 as his share of goodwill in cash.
            (iii)       Provision for doubtful debts be reduced by Rs, 2,400.
            (iv)      Investment worth Rs. 2,600 remains unrecorded in the books, now to be
                        recorded.
            (v)       Patents are valueless.
            (vi)      2% discount is to be recorded on creditors.
            (vii)     Miss Seema will bring proportionate capital after the all above adjustments.
            Prepare Revaluation Account, Capital Accounts of partners and Balance sheet of
            New firm. Also identify the value being highlighted in this case.                                                                                                                                                                                                              8
                                                           
















Mock Test Accountancy 12, Set 2        
Company Accounts and Dissolution;
Maximum Marks:40                       


1.      Can a new company issue its shares at a discount? If not, why?                                                         1
2.      What is meant by Calls-in arrears?                                                                                           1
3.      State the nature of Debenture Allotment Account.                                                               1
4.      A Ltd. has an outstanding balance of Rs. 5,00,000, 8% Debentures of Rs. 100 each          redeemable at a premium of 10%.
         According to the terms of redemption, the company redeemed 30% of the above debentures
        
         Records the entries for redemption of debentures.                                                             3
5.      A Ltd. Issued 6,000,  12% Debentures of Rs. 100 each on 01-04-2012 at par.  Interest on
         these debentures is paid yearly on 31st March every year.
         Pass all the necessary journal entries for the year ended 31-03-2013 related to interest
            assuming Tax is deducted @ 30% on the amount of interest. (3)
Q:6 Give the journal entries for the following at the time of Dissolution of the firm:
i)             Realisation expenses Rs 1,000 paid by A (partner) which was to be borne by firm,
ii)            Creditor of Rs 20,000 took away stock worth Rs 45,000.
iii)           Investment sold for Rs 34,000.
iv)          A’s loan of Rs 2,000 settled at Rs 1,500.   (4)


   7.      A Ltd. has an authorised capital of Rs. 20, 00,000 divided into equity shares of Rs. 10 each.
            The company invited application for 41, 000 shares from public and 3,000 shares allotted to             Rama & company against building purchased as fully paid. 
            Applications for 40,000 shares were received from public All calls were made and were dully             received except the final call of Rs. 3 per share on 1000 shares which were forfeited.
            Show how share capital will appear in balance sheet of company as per Revised Schedule VI        and also prepare Notes to Accounts.                                                                                       4
8          500 shares of Rs. 100 each issued at a par were forfeited due to non payment of allotment             money of Rs. 50 per share. The first and final call of Rs. 10 per share on these shares             were not made. Out of these, 400 shares were reissued at Rs. 75 per share as fully paid     up. Pass journal entries related to forfeiture and reissues.                                                       4

Q: 9A B and C were partners from 1.4.12 with capitals of  Rs.3,00,000, Rs.2,00,000 and Rs.1,50,000 respectively. They shared profit and losses in the ratio 2:2:1. They carried on business for two years.
 In the first year they made a profit of Rs.2,00,000 but in second year they suffered loss of Rs.60,000, so they decided to dissolve the firm on 31.3.2014. Creditors on that date were Rs.75,000, the partners’ drawings were Rs.40,000 per partner in each year. The assets realized Rs.4,00,000, the expenses of realization were Rs.5,000.
Prepare necessary accounts on the dissolution of a firm.   (6)


10.       AB Ltd. Invited application for 40000 equity shares of Rs. 10 each at a premium of 10%.                The amount was payable as follows:                                                                                                   On application   Rs. 4  
On allotment                        Balance
Application were received for 48000 shares , prorate allotment was made to all applicant.
Excess money received on application was adjusted towards sums due on allotment.
Mohan who applied for 480 shares failed to pay the allotment money.
His shares were forfeited and 200 shares reissued @ Rs. 7 per shares fully paid up.
Pass the journal entries in the books of AB Ltd. and prepare Share forfeiture account.
            Also identify the value being highlighted in this question.   (8)
                                                                       


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