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Model Test Papers M.255

(c) Z is entitled to a salary of ` 60,000 p.a.
(d) X is entitled to a remuneration of 10% of the net profit.
(e) Y is also entitled to a commission of 10% of the net profit before charging interest
on drawings but after making appropriations.
During the year, X withdrew ` 3,000 in the beginning of every month, Y withdrew
` 3,000 in the middle of every month and Z withdrew ` 3,000 at the end of every month.
On 1st October, 2017, Z gave a loan of ` 5,00,000.
The manager is entitled to salary of ` 2,000 p.m. and a commission of 10% of net profit
after charging his salary and commission.
Profit of the firm for the year ended on 31st March, 2018 before providing for any of
the above adjustments was ` 2,37,000.
Prepare Profit and Loss Appropriation Account for the year ended on 31st March, 2018. (4)
13. From the following particulars of Young Achiever’s Club, prepare an Income
and Expenditure Account for the year ended 31st March, 2018 and Balance Sheet
as on that date:
RECEIPTS AND PAYMENTS ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Receipts ` Payments `
To Balance b/d: By Salaries 31,500
Cash in Hand 10,000 By Postage 1,250
Cash at Bank 22,500 32,500 By Rent 9,000
To Subscriptions: By Printing and Stationery 14,000
2016–17 1,500 By Sports Material 11,500
2017–18 60,000 By Miscellaneous Expenses 3,100
2018–19 1,800 63,300 By Furniture (01.10.2017) 20,000
To Donation (Billards Table) 90,000 By 10% Investments (01.07.2017) 70,000
To Entrance Fees 1,100 By Balance c/d:
To Sale of Old Magazines 450 Cash in Hand 5,000
Cash at Bank 22,000 27,000
1,87,350 1,87,350

Additional Information:
(a) There are 250 members each paying an annual subscription of ` 300.
(b) ` 1,200 is still in arrears for subscription for the year ended 31st March, 2017.
(c) Value of sports material in the beginning and at the end of the year was ` 3,000
and ` 4,500 respectively.
(d) Depreciation to be provided @ 10% p.a. on Furniture.
(e) Capital Fund as on 1st April, 2017 was ` 38,200. (6)
14. A and B were partners in a firm sharing profits and losses in the ratio of 4 : 1. They
dissolved the firm on 1st April, 2018. From the information given below, complete
Realisation Account, Partners’ Capital Accounts and Bank Account: