Page 166 - AAAXII

Model Test Papers M.157

Answers

PART A

1. Specific donations are treated as capital receipts and hence are credited to a ‘Special
Fund Account’ (e.g., Prize Fund, Tournament Fund, Building Fund, etc.) maintained
for the purpose.
Or
Amount of sports material consumed is debited to Income and Expenditure Account.
2. In the absence of a Partnership Deed, the partner will get an equal share of profits.
3. The amount due is either paid immediately or is transferred to Retiring Partner’s Loan
Account which is paid in instalments with or without interest as per agreement.
4. JOURNAL OF Z LTD.
Date Particulars L.F. Dr. (`) Cr. (`)
Sundry Assets A/c ...Dr. 27,00,000
Goodwill A/c (Balancing Figure) ...Dr. 1,00,000
To Sundry Liabilities A/c 2,00,000
To Y Ltd. 26,00,000
(Being the purchase of business from Y Ltd.)
Or
Redemption of Debentures in instalments means redemption of debentures in parts
and not all the debentures in lump sum or together.
5. No Journal entry may be passed.
6. Loan Account and it is an External Liability of the firm.
Or
In the absence of any provision in the Partnership Deed, remuneration is not allowed
to a partner.
7. Total capital in the new firm = ` 2,10,000
Y’s capital in the new firm = ` 2,10,000 × 2/3 = ` 1,40,000
Z’s capital in the new firm = ` 2,10,000 × 1/3 = ` 70,000
AMOUNT OF CASH TO BE BROUGHT OR TO BE PAID TO PARTNERS
Particulars Y (`) Z (`)
Capital of the new firm (` 2,10,000 in ratio of 2 : 1) 1,40,000 70,000
Present (Actual) Capital 1,45,000 63,000
Cash to be paid (–)/brought in (+) (–) 5,000 (+) 7,000
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)

2018
April 1 Y’s Capital A/c ...Dr. 5,000
To Bank A/c 5,000
(Being the excess capital withdrawn by Y)
Bank A/c ...Dr. 7,000
To Z’s Capital A/c 7,000
(Being the shortage of capital brought in by Z)