Page 330 - AAAXII

Model Test Papers M.315

Answers

PART A

1. Income and Expenditure Account is a Nominal Account whereas Receipts and Payments
Account is a Real Account.
Or
Income and Expenditure Account records items of revenue nature whereas Receipts
and Payments Account records items of both capital and revenue nature.
2. Interest on Partner’s Loan = ` 2,00,000 × 6/100 = ` 12,000.
Reason: When the Partnership Deed is silent, as per the Indian Partnership Act, 1932,
interest on partner’s loan is to be allowed @ 6% per annum even if there is a loss.
3. Fixed capital of a partner may change when there is:
(i) Introduction of fresh capital.
(ii) Drawings against capital.
Or
(i) Old partnership comes to an end and new partnership between/among the remaining
partners (i.e., partners other than the retiring partner) comes into existence.
(ii) The combined share of remaining partners increases.
4. Interest Accrued but not Due = ` 10,00,000 × 10/100 × 3/12 = ` 25,000.
It is shown under the Major Head: Current Liabilities and Sub-head: Other Current
Liabilities.
Or
No, Interest on Debenture is calculated on the nominal (face) value of debenture and
not on the issue price. Difference between the issue price and nominal (face) value is
either Discount on Issue of Debentures or Securities Premium.
3 1 2
5. A’s New Share = Old Share – Share Sacrificed = – =
6 6 6
22 11
:
:
:
Thus, New Profit-sharing Ratio of A, B, C and D = 6666 or 2 : 2 : 1 : 1.
6. Calculation of B’s Capital on 1st April, 2018: `
B’s Capital on 31st March, 2019 8,000
Add: Drawings 3,000
11,000
Less: Profit credited [1/2 (` 6,000 – ` 4,000)] 1,000
B’s Capital on 1st April, 2018 10,000
Interest on Capital @ 5% p.a. = ` 10,000 × 5/100 = ` 500.
7. Average Profit = ` 75,000 + ` 5,000 (undervalued stock) = ` 80,000
Normal Profit = Capital Invested × Normal Rate of Return/100
= ` 7,00,000 × 7/100 = ` 49,000
Super Profit = Average Profit – Normal Profit
= ` 80,000 – ` 49,000 = ` 31,000
Goodwill = 5 × Super Profit
= ` 31,000 × 5 = ` 1,55,000.