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Model Test Papers M.311

(iii) Expenses on realisation ` 1,750 were paid by Shyam.
(iv) Compensation to employees paid by the firm amounted to ` 3,000. This liability
was not provided for in the above Balance Sheet.
(v) There was a typewriter in the firm, which was bought out of the firm’s money, was
not shown in the above Balance Sheet. This typewriter is now sold for ` 3,000.
Prepare Realisation Account, Partners’ Capital Accounts and Cash Account. (6)
16. Usha and Asha are partners in a firm sharing profits in the ratio of 2 : 3 respectively.
They admitted Neelam on 1st April, 2018 for 1/2 share in the profits. Neelam will
bring ` 5,00,000 for her capital and the capitals of Usha and Asha will be adjusted in
the profit-sharing ratio. For this purpose, Current Accounts will be opened. Balance
Sheet of the firm as at 31st March, 2018 before Neelam’s admission was as follows:

Liabilities ` Assets `
Creditors 1,20,000 Cash in Hand 40,000
Bills Payable 1,00,000 Sundry Debtors 2,00,000
Employees’ Provident Fund 60,000 Investment 1,00,000
General Reserve 90,000 Furniture 1,00,000
Workmen Compensation Reserve 20,000 Machinery 3,10,000
Capital A/cs: Building 1,10,000
Usha 3,75,000 Goodwill 30,000
Asha 1,25,000 5,00,000
8,90,000 8,90,000
Other terms of the agreement were as follows:
(i) Neelam will bring ` 1,75,000 for her share of goodwill.
(ii) Building will be revalued at ` 3,00,000 and value of machinery to be brought down by
` 70,000.
(iii) Provision of 5% to be made on Sundry Debtors for doubtful debts.
(iv) Market value of the investment is ` 1,90,000.
(v) Unaccounted Accrued Income of ` 6,000 to be provided for.
Prepare Revaluation Account, Partners’ Capital Accounts, Partners’ Current Accounts
and Balance Sheet of the new firm.
Or
Balance Sheet of Keshav, Nirmal and Pankaj who are partners in a firm sharing profits
in proportion to their capitals as at 31st March, 2018 was as follows:
Liabilities ` Assets `
Capital A/cs: Building 2,00,000
Keshav 1,60,000 Machinery 1,00,000
Nirmal 80,000 Stock 36,000
Pankaj 80,000 3,20,000 Debtors 40,000
General Reserve 40,000 Less: Provision for Doubtful Debts 2,000 38,000
Creditors 42,000 Cash at Bank 28,000
4,02,000 4,02,000