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Model Test Paper 7

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. State the accounting treatment of specific donations received during the year by a
Not-for-Profit Organisation.
Or
State the accounting treatment of sports material consumed during the year by a
Not-for-Profit Organisation. (1)
2. What share of profit would a partner, who has not contributed to the total capital of
the firm, get in the absence of a Partnership Deed? (1)

3. How can the amount due to the retiring partner be settled? (1)
4. Z Ltd. acquired assets of ` 27,00,000 and liabilities of ` 2,00,000 of Y Ltd. at an agreed
value of ` 26,00,000. Pass the necessary Journal entry to record the purchase of business
in the books of Z Ltd.
Or
What is meant by Redemption of Debentures in instalments? (1)
5. What Journal entry will be passed when a machine having a book value of ` 1,50,000
is given to Mohan, a firm’s creditor of ` 2,20,000 at an agreed valuation of ` 1,20,000
towards full and final settlement of his dues on dissolution of a firm? (1)
6. What is the nature of the amount due to an outgoing partner?
Or
State the provision of Indian Partnership Act regarding the payment of remuneration
to a partner. (1)
7. X, Y and Z are partners in a firm sharing profits in the ratio of 3 : 2 : 1. On
1st April, 2018, X retires from the firm. Y and Z agree that the capital of the new
firm shall be fixed at ` 2,10,000 in the profit-sharing ratio. Capital Accounts of
Y and Z after all adjustments on the date of retirement showed balances of
` 1,45,000 and ` 63,000 respectively.
State the amount to be brought in or to be paid to the partners and also give necessary
Journal entries. (3)
8. Ranbaxy Limited was formed with a capital of ` 70,00,000 divided into 7,00,000 equity
shares of ` 10 each. The company allotted 6,000 equity shares of ` 10 each as fully
paid to the signatories to the Memorandum of Association and 3,000 equity shares of