Page 137 - MA12

Model Test Paper 3

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 each of the following questions briefly:
(i) State any two points of differences between Sacrificing Ratio and Gaining Ratio.
(ii) What is meant by a pro rata allotment? When does the need for a pro rata
allotment arise?
(iii) State two differences between Realisation Account and Revaluation Account.
(iv) What is meant by Redemption of Debentures? Enumerate any two methods of
Redemption of Debentures.
(v) Why the Capital Account of a partner, when Capital Accounts are maintained
following Fixed Capital Accounts Method, does not show a ‘Debit balance’ in
spite of regular and consistent losses year after year?
(vi) Happy Ltd. forfeited 100 shares of ` 100 each for non-payment of first and final
call of ` 20 per share. These shares were reissued and gain on reissue transferred
to Capital Reserve was ` 5,000. Calculate the amount realised from reissue of
shares. [6 × 2 = 12]

Part II (48 Marks)
(Answer any four questions)
2. (a) The capitals of X, Y and Z as on 31st March, 2020 were ` 60,000; ` 2,20,000 and
` 4,40,000 respectively. Profit of ` 1,20,000 for the year ended 31st March, 2020
was distributed in the ratio of 4 : 1 : 1 after allowing interest on capital @ 10% p.a.
During the year each partner withdrew ` 2,40,000. The Partnership Deed was
silent as to profit-sharing ratio but provided for interest on capital @ 12%.
Pass the necessary adjusting Journal entry.
(b) Vrindan and Kundan are partners sharing profits and losses in the ratio of 2 : 1.
On 1st April, 2019, they admit Srijan for 1/4th share in profits and guaranteed
profit of ` 50,000. The profit for the year 2019–20 was ` 1,52,000. Pass the Journal
entry in the books of the firm for distribution of profit and prepare Profit and
Loss Appropriation Account. [6 + 6 = 12]