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Model Test Papers M.309

(i) Following were the assets and liabilities as on 1st April, 2018:
Utensils ` 8,000, Furniture ` 25,000, Consumable Stores ` 3,500, Creditors ` 12,000.
(ii) On 31st March, 2018, Stock of consumable stores was ` 7,000; creditors were ` 5,500;
Outstanding subscription ` 750 and Accrued Interest on Fixed Deposit was ` 250.
(iii) Charge depreciation on the closing balances of Furniture and Utensils @ 10% and
@ 15% respectively. (6)
14. (a) Accountant of the firm prepared following accounts but in a hurry he left them
incomplete. You required to complete the following accounts:

Dr. PROFIT AND LOSS ACCOUNT for the year ended 31st March, 2018 Cr.
Particulars ` Particulars `
To Manager’s Commission @ 5% ? By Profit before Manager’s Commission ?
To Net Profit transferred to Profit and Loss
Appropriation A/c ?
1,50,000 1,50,000

Dr. PROFIT AND LOSS APPROPRIATION ACCOUNT for the year ended 31st March, 2018 Cr.
Particulars ` Particulars `
To Y’s Salary A/c 25,000 By Net Profit transferred from
To Interest on Capital A/cs: Profit and Loss A/c ?
X 30,000
Y 18,000 48,000
To Profit transferred to:
X’s Capital A/c ?
Y’s Capital A/c ? ?
? ?

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars X (`) Y (`) Particulars X (`) Y (`)
To Balance c/d 5,71,700 3,70,800 By Balance b/d 5,00,000 3,00,000
By Profit and Loss Appropriation A/c:
Interest on Capital 30,000 18,000
Salary ... 25,000
Profit ? ?
5,71,700 3,70,800 5,71,700 3,70,800
(b) Goodwill of a firm is valued at ` 2,70,000 at 3 years’ purchase of Super Profits.
Determine the missing values:
Average Profit = ` 7,20,000/3 = ` 2,40,000
Normal Profit = ` ... × 15/100 = ` ...
Super Profit = Average Profit – Normal Profit
= ` 2,40,000 – ... = ` ...
Goodwill = Super Profit × No. of Years’ Purchase
Goodwill = ` ... × 3 = ` 2,70,000.