Page 240 - AAAXII

Model Test Paper 10

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. How is cost of construction of a building accounted if ‘Building Fund’ is maintained by
a Sports Club?
Or
What will be the accounting treatment of cost of prizes purchased for distribution if
‘Prize Fund’ is not maintained? (1)
2. When purchase consideration is more than the net assets acquired, then how is the
difference adjusted?
Or
Name the account to which the ‘Balance of Debentures Redemption Reserve’ is
transferred after the debentures have been redeemed. (1)

3. State one difference between Partner’s Loan Account and Partner’s Capital Account.
(1)
4. Enumerate two main steps involved in valuing Goodwill according to Super Profit
Method. (1)
5. Mohan and Sohan are partners in a firm sharing profits in the ratio of 3 : 2. They admit
Karan for 1/5th share in the profits of the firm, which he gets equally from Mohan and
Sohan. Calculate new profit-sharing ratio.
Or
Ram, Mohan and Sohan were partners in a firm sharing profits in the ratio of
5 : 3 : 2. They admitted Hari as a new partner for 1/5th share in profit, which he
acquires from Ram and Mohan in the ratio of 3 : 2. Calculate the new profit-sharing
ratio of Ram, Mohan, Sohan and Hari. (1)
6. X, Y and Z are partners in a firm sharing profits in the ratio of 3 : 2 : 1. Y died, Z son
of Y, is of the opinion that he is the rightful owner of his father’s share of profit; and
the profits of the firm be shared between X and Z equally. X does not agree. Settle the
dispute between X and Z according to Indian Partnership Act, 1932. (1)

7. X, Y and Z are partners sharing profits and losses in the ratio of 14 : 5 : 6 respectively.
Y retires and surrenders 5/25th of his share in favour of X. Goodwill of the firm is valued
at 2 years’ purchase of super profit based on average profit of last 3 years. The profits