Page 350 - MA-12

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 the following questions briefly:
(i) What is meant by ‘Debentures Redemption Reserve’? State the amount of profit
required to be transferred to Debentures Redemption Reserve.
(ii) What is Gaining Ratio in case of retirement of a partner? Give two circumstances
in which Gaining Ratio may be applied.
(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 the 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) Anjan, Sooraj and Niranjan are in partnership with capitals of ` 3,00,000 (Credit),
` 2,50,000 (Credit) and ` 20,000 (Debit) respectively on 1st April, 2018. 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) Niranjan is to get salary of ` 60,000 p.a.
(iv) Anjan is to get commission of 10% of the profit.