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Model Test Papers M.29

Qureshi died on 1st July, 2018. The profit-sharing ratio of the partners was
2 : 1 : 1. On the death of a partner, the Partnership Deed provided for the following:
(i) His share in the profits of the firm till the date of his death will be calculated
on the basis of average profits of last three completed years.
(ii) Goodwill of the firm will be calculated on the basis of total profit of last two years.
(iii) Interest on loan given by the firm to a partner will be charged at the rate of
6% p.a. or ` 4,000, whichever is more.
(iv) Profits for the last three years were ` 45,000; ` 48,000 and ` 33,000.
Prepare Qureshi’s Capital Account to be rendered to his executors. (2 + 4)

15. X, Y and Z were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2.
As there was lack of faith and understanding among the partners, the firm was
continuously running into losses. As a result, they decided to dissolve partnership firm
on 31st March, 2018. X was deputed to realise the assets and pay the liabilities. X was
paid ` 10,000 as remuneration for his services. The financial position of the firm was
as follows:

Liabilities ` Assets `
Creditors 1,00,000 Furniture 3,70,000
Investment Fluctuation Reserve 45,000 Stock 55,000
Capital A/cs: Investments 1,50,000
X 4,00,000 Cash at Bank 90,000
Y 3,00,000 7,00,000 Z’s Capital 1,80,000
8,45,000 8,45,000

Following was agreed upon:
(i) X took over investments for ` 1,25,000. Stock and furniture realised ` 4,15,000.
(ii) There was an old furniture which had been written off from the books.
Y ageed to take the same at the value of ` 30,000.
(iii) Compensation paid to the employees was ` 80,000. This liability was not provided
in the above Balance Sheet.
(iv) Realisation expenses were ` 10,000.
Prepare Realisation Account, Partners’ Capital Accounts and Bank Account to close
the books of the firm.

Or
Bora, Singh and Ibrahim were partners in a firm sharing profits in the ratio of 5 : 3 : 1.
On 1st April 2018 their firm was dissolved. The assets were realised and the liabilities
were paid. Given below are the Realisation Account, Partners’ Capital Accounts and
Bank Account of the firm. The accountant of the firm left a few amounts unposted in
these accounts. You are required to complete these below given accounts by posting
the correct values: