Page 115 - MA12

Model Test Paper 2

Time Allowed: 3 Hrs. Max. Marks: 80
General Instructions: As per Model Test Paper 1

Section A
Part I (12 Marks)
(Answer all questions)
1. Answer the following questions briefly:
(i) Enumerate two main steps involved in valuing the Goodwill according to
Super Profit Method.
(ii) What is meant by ‘Debentures Redemption Reserve’? State the amount of profit
required to be transferred to Debentures Redemption Reserve.
(iii) Raja, Badshah and Samrat are partners sharing profits in the ratio of 3 : 2 : 1.
Badshah died on 30th June, 2019. Profit from 1st April, 2019 to 30th June, 2019
was ` 2,25,000. Raja and Samrat decided to share future profits in the ratio of
3 : 2. Give the necessary Journal entry to record Badshah’s share of profit up
to the date of death.
(iv) Give the Journal entry to distribute ‘Investment Fluctuation Reserve’ of ` 40,000
at the time of admission of Sachin for 20% share of profit, when Investments
(Market Value ` 1,90,000) appear at ` 2,00,000. The firm has two old partners
Sunil and Dalip.
(v) State two differences between Undersubscription and Oversubscription.
(vi) List four items which are included under the head ‘Non-Current Assets’ of the
company’s Balance Sheet as per Schedule III. [6 × 2 = 12]

Part II (48 Marks)

(Answer any four questions)
2. (a) Mohit, Ali and John are in partnership with capitals of ` 3,00,000 (Credit), ` 2,50,000
(Credit) and ` 20,000 (Debit) respectively on 1st April, 2019. The Partnership
Deed provides the following:
(i) 10% of Net Profit to be transferred to General Reserve.
(ii) Partners are to be allowed interest on capital @ 5% p.a. and are to be charged
interest on drawings @ 6% p.a.
(iii) John is to get salary of ` 60,000 p.a.
(iv) Mohit is to get commission of 10% of the profit.