Page 249 - AAAXII

Model Test Papers M.237

Answers

PART A
1. Cost of construction of a building is deducted from ‘Building Fund’ and is added to
Capital Fund.
Or
Cost of prizes will be debited to Income and Expenditure Account.
2. When purchase consideration is more than the net assets acquired, then the difference
is debited to Goodwill Account.
Or
General Reserve Account.
3. Difference between Partner’s Loan Account and Partner’s Capital Account
Basis of Difference Partner’s Loan Account Partner’s Capital Account
Rate of Interest In the absence of Partnership Deed, interest In the absence of Partnership Deed, partners are
on loan is paid (allowed) @ 6% p.a. Otherwise, not paid (allowed) interest on capital.
it is paid at an agreed rate.

4. Step 1: Calculate Super Profit, i.e., Average Profit – Normal Profit.
Step 2: Value of Goodwill = Super Profit × No. of Years’ Purchase.
1 1 1
5. Share acquired by Karan from Mohan = ¥ =
5 2 10
1 1 1
Share acquired by Karan from Sohan = ¥ =
5 2 10
New Share of Old Partner = Old Share – Share Acquired by Incoming Partner
3 1 61 5
-
Mohan’s New Share = - = =
5 10 10 10
2 1 41 3
-
Sohan’s New Share = - = =
5 10 10 10
1 1 2
Karan’s Share = + =
10 10 10
5 3 2
:
:
Thus, New Profit-sharing Ratio of Mohan, Sohan and Karan = 10 10 10 = 5: 3: 2.
Or
1 3 3
Share acquired by Hari from Ram = ¥ =
5 5 25
1 2 2
Share acquired by Hari from Mohan = × =
5 5 25
New Share of Old Partner = Old Share – Share Acquired by Incoming Partner
5 3 25 – 6 19
Ram’s New Share = – = =
10 25 50 50