Page 331 - MA-12

M.22 Management Accounting (Section B)—ISC XII

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 each of the following questions briefly:
(i) Why is Revaluation Account prepared? State any two reasons.
(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) What is meant by Calls-in-Advance? How is ‘Calls-in-Advance’ shown in the
Balance Sheet? [6 × 2 = 12]

Part II (48 Marks)
(Answer any four questions)

2. (a) The capitals of Raghubir, Balbir and Krantibir as on 31st March, 2019 were ` 60,000;
` 2,20,000 and ` 4,40,000 respectively. Profit of ` 1,20,000 for the year ended
31st March, 2019 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, 2018, they admit Srijan for 1/4th share in profits and guaranteed
profit of ` 50,000. The profit for the year 2018–19 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]