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Model Test Paper 2

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. Distinguish between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on
the basis of credit balance.

Or
If Capital Accounts of the partners are fixed, then what will be the accounting treatment
of ‘Drawings against Capital’? (1)

2. A and B are partners in a firm sharing profits and losses in the ratio of 4 : 3. They
admitted C as a new partner. The new profit-sharing ratio of A, B and C is agreed at
7 : 4 : 3 respectively. Calculate the sacrificing ratio and the share of incoming partner.
(1)
3. P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals
were ` 2,00,000 and 3,00,000 respectively. The Partnership Deed provided for interest
on capital @ 12% per annum. For the year ended 31st March, 2018, the profit of the
firm was distributed without providing interest on capital.

Pass necessary adjustment entry to rectify the error. (1)
4. Name the account which is maintained in the books when the retiring partner or the
executor of deceased partner leaves the amount receivable in the firm as additional
finance. (1)

5. Aman and Raman are doctors. They contributed ` 2,00,000 each to start a clinic to treat
poor patients free of cost. Should they enter into Partnership Deed? Given reason.

Or
Change in Profit-sharing Ratio is dissolution of partnership or partnership firm? Give
reason in support of your answer. (1)
6. State any two items which are shown in the Receipts and Payments Account but are
not shown in the Income and Expenditure Account.
Or
How will you account for ‘subscription due but not received’ in the current year in the
books of a Not-for-Profit Organisation? (1)