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Model Test Papers M.191

Working Notes:
1. Calculation of Interest on Investments: `
Investments on 31st March, 2017 (` 10,00,000 × 6/100) 60,000
Investments made on 1st October, 2017 (` 5,00,000 × 6/100 × 6/12) 15,000
Total Interest Due 75,000
Less: Interest received during the year 65,000
Interest accrued but not received 10,000
2. Donations are considered revenue in nature. Hence, they are credited to Income and Expenditure Account.
15.
Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Sundry Assets—Transfer: By Provision for Doubtful Debts 20,000
Goodwill 1,00,000 By Sundry Creditors 2,00,000
Building 2,50,000 By Bills Payable 2,00,000
Plant 2,22,000 By Bank Overdraft 80,000
Investments 1,53,000 By Outstanding Expenses 20,000
Stock 87,000 By Anahat’s Loan 2,00,000
Debtors 1,70,000 By Employees’ Provident Fund 12,000
Bills Receivable 1,00,000 10,82,000 By Bank A/c (Assets Realised):
To Manhad’s Capital A/c (Anahat’s Loan) 2,00,000 Debtors 1,20,000
To Bank A/c (Creditors and Bills Payable) 3,80,000 Plant 2,00,000
(` 4,00,000 – 5% of ` 4,00,000) Building 5,00,000
To Bank A/c (Payment of other dues)* 1,12,000 Goodwill 60,000 8,80,000
To Bank A/c (Realisation Expenses) 20,000 By Anhad’s Capital A/c (Stock + Investments) 2,00,000
To Gain (Profit) transferred to: By Manhad’s Capital A/c (Bills Receivable) 80,000
Manhad’s Capital A/c 49,000
Anhad’s Capital A/c 49,000 98,000
18,92,000 18,92,000
*Payment of other Dues = Bank Overdraft + Outstanding Expenses + Employees’ Provident Fund
= ` 80,000 + ` 20,000 + `12,000 = ` 1,12,000.
Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Manhad Anhad Particulars Manhad Anhad
` ` ` `
To Profit and Loss A/c 10,000 10,000 By Balance b/d 2,00,000 2,00,000
To Advertisement Suspense A/c 10,000 10,000 By Realisation A/c 2,00,000 ...
To Realisation A/c (Assets Taken) 80,000 2,00,000 By Realisation A/c (Profit) 49,000 49,000
To Bank A/c (Final Payment) (Bal. Fig.) 3,59,000 39,000 By General Reserve A/c 10,000 10,000
4,59,000 2,59,000 4,59,000 2,59,000

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 1,30,000 By Realisation A/c (Creditors and Bills Payable) 3,80,000
To Realisation A/c (Assets Realised) 8,80,000 By Realisation A/c (Other Dues) 1,12,000
By Realisation A/c (Realisation Expenses) 20,000
By Anhad’s Loan A/c 1,00,000
By Manhad’s Capital A/c (Final Payment) 3,59,000
By Anhad’s Capital A/c (Final Payment) 39,000
10,10,000 10,10,000