Page 119 - MA12

Model Test Papers M.25

7. (a) Given below is the Balance Sheet of Saurabh, Gaurav and Pawan as on 31st March,
2020 on which date they dissolved their partnership. They shared profit and loss in
the ratio of 4 : 3 : 3. It was decided that Pawan shall be in charge of realisation and
distribution. For this service, he was to get as remuneration 1% of the value of assets
realised other than Cash and Bank and 10% of the amount distributed to partners.

BALANCE SHEET as at 31st March, 2020
Liabilities ` Assets `
Saurabh’s Capital A/c 55,000 Cash at Bank 1,375
Gaurav’s Capital A/c 22,500 Sundry Assets 2,68,625
Pawan’s Capital A/c 60,000 (Other than Cash and Bank)
Sundry Creditors 75,000
Employees’ Provident Fund 7,500
Workmen Compensation Reserve 50,000
2,70,000 2,70,000

Sundry Assets were realised for ` 2,32,500 and creditors were paid in full.
Prepare Realisation Account, Partners’ Capital Accounts and Bank Account.
(b) Pass the necessary Journal entries for the following transactions on the dissolution of
the firm of Samar, Bhanwar and Pratap (who were sharing profits in the ratio of
2 : 2 : 1) after the transfer of all assets (other than cash) and external liabilities to
Realisation Account:
(i) Debtors were of ` 1,24,200. Samar takes debtors amounted to ` 1,20,000 at
` 1,17,200 and the remaining debtors were sold to a debt collecting agency at
50% of the value.
(ii) Sundry Assets were of ` 1,17,000. Bhanwar is to take some Sundry Assets at
` 72,000 (being 10% less than the book value). Pratap is to take over remaining
Sundry Assets at 80% of the book value. [8 + 4 = 12]
8. From the following details given below and additional information, prepare Balance
Sheet of Lotus Ltd. as at 31st March, 2020:

(` in ’000) (` in ’000)
10% Debentures 200 Trade Receivables 40
Trade Payables 10 Cash and Bank Balances 30
Share Capital 150 Share Application Money
Reserves and Surplus 90 Pending Allotment 5
Advance Payment of Tax 50 Non-current Investment 100
Fixed Assets at Cost (Tangible) 350 Provision for Tax (2019–20) 45
Inventories 10 Long-term Provisions 10
Outstanding Expenses 5 Current Investment 25
Short-term Borrowings 45 Prepaid Expenses 5
Provision for Depreciation 40
Additional Information:
(i) Authorised capital is 20,000 equity shares of ` 10 each. The company issued
15,000 shares of ` 10 each.
(ii) Provide ` 10,000 for depreciation on fixed assets.
(iii) Directors proposed dividend for the year 2019–20 ` 50,000.
(iv) Bill discounted but not matured ` 40,000. [12]