Page 134 - AAAXII

Model Test Paper 6

Time Allowed: 3 Hours Max. Marks: 80

General Instructions:
As per Model Test Paper 1

PART A

ACCOUNTING FOR NOT-FOR-PROFIT ORGANISATIONS,
PARTNERSHIP FIRMS AND COMPANIES

1. What is meant by an ‘Income and Expenditure Account’?
Or
Where will be profit on sale of sports equipment recorded in the Financial Statements
of Not-for-Profit Organisation? (1)

2. State the nature of liability of a partner. (1)
3. X and Y are partners in a firm. They admit Z as a partner with 1/4th share in the
profits of the firm. Z brings ` 2,00,000 as his share of capital. The value of the total
assets of the firm is ` 5,40,000 and outside liabilities are valued at ` 1,00,000 on that
date. Calculate Z’s share of Goodwill.
Or
A and B are partners in a firm sharing profits in the ratio of 4 : 1. They decided to
share profits in the ratio of 3 : 2 w.e.f. 1st April, 2018. On that day, Profit and Loss
Account showed a debit balance of ` 1,00,000. Pass Journal entry to give effect to
the above. (1)
4. Surender, Ramesh, Naresh and Mohan are partners in a firm sharing profits, in the
ratio of 2 : 1 : 2 : 1. On the retirement of Naresh, the Goodwill of the firm was valued
at ` 72,000. Surender, Ramesh and Mohan decide to share future profits equally. Pass
the necessary Journal entry for the treatment of goodwill. (1)
5. Shubh Ltd. having paid-up Share Capital of ` 60,00,000 has a balance of ` 15,00,000
in Securities Premium Reserve Account. The company’s management does not want
to carry over this balance. You are required to suggest the method for utilising this
premium money that would achieve the objective of the management and maximise
the return to shareholders.
Or
Why would an investor prefer to invest in the Debentures of a company instead of
investing in its Shares? (1)
6. State two bases for determination of profits from the date of last Balance Sheet to the
date of death/retirement of a partner. (1)