Page 185 - AAAXII

Model Test Paper 8

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 does Prize Fund represent?
Or
While preparing final accounts of a sports club, how is ` 50,000 received as a donation
for organising matches accounted? (1)
2. Give the Journal entry to distribute ‘General Reserve’ of ` 20,000 at the time of
admission of Z when 25% of General Reserve is appropriated towards Workmen
Compensation Reserve. The firm has two partners X and Y. (1)
3. Can a retiring partner or legal heir of a deceased partner have share in the subsequent
profits of the firm?
Or
A bill of exchange of ` 10,000 discounted from bank was dishonoured at the time of
retirement of a partner. Pass the Journal entry. (1)
4. Why is Revaluation Account prepared? State any two reasons. (1)
5. What is meant by Employees Stock Option Plan?
Or
What is meant by issue of debentures as purchase consideration? (1)
6. Average Profit is ` 3,00,000, Capital Employed is ` 10,00,000, Normal Rate of Return
is 15%. Calculate the value of goodwill on the basis of Capitalisation of Super Profit. (1)
7. X, Y and Z are partners sharing profit in the ratio of 4 : 3 : 2. Y retires and his capital
after making adjustments for reserves and gain (profit) on revaluation stands at
` 95,000. X and Z agreed to pay him some amount in full settlement of his claim. The
Journal entry for the adjustment of goodwill is given below:
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)

X’s Capital A/c ...Dr. 3,900
Z’s Capital A/c ...Dr. 3,300
To Y’s Capital A/c 7,200
(Being the adjustment for goodwill made through the Capital Accounts
of the partners)
Calculate the amount agreed to be paid to Y and new profit-sharing ratio of X and Z. (3)