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Model Test Papers M.333

12. E and F are partners in a firm sharing profits and losses in the ratio of 7 : 3.
On 1st April, 2017 they admitted G as a new partner for 1/5th share in the profit with
a guaranteed profit of ` 60,000. The new profit-sharing ratio between E and F will
remain the same but they agreed to bear any deficiency on account of guarantee to
G in the ratio of 3 : 7. The profit of the firm for the year ended 31st March, 2018 was
` 2,70,000. Prepare Profit and Loss Appropriation Account of E, F and G for the year
ended 31st March, 2018. (4)
13. Balance Sheet of Rani, Adi and Manu who were sharing profits in the ratio of
7 : 3 : 4 as on 31st March, 2018 was as follows:
Liabilities ` Assets `
General Reserve 28,000 Cash in Hand 10,000
Bills Payable 82,000 Cash at Bank 30,000
Loan 22,000 Stock 70,000
Capital A/cs: Debtors 57,000
Rani 75,000 Building 1,50,000
Adi 85,000 Loan to Manu 40,000
Manu 65,000 2,25,000
3,57,000 3,57,000

Manu died on 1st September, 2018. The Partnership Deed provided for the following
on the death of a partner:
(a) Goodwill of the firm was to be valued at two years’ purchase of average super
profit for the last three years which was ` 70,000.
(b) Manu’s share of profit or loss till the date of his death was to be calculated on the
basis of sales. Sales for the year ended 31st March, 2018 amounted to ` 8,00,000
and that from 1st April to 1st September, 2018 to ` 4,00,000. The profit for the
year ended 31st March, 2018 was ` 2,24,000.
(c) Interest on capital was to be provided @ 8% p.a.
Pass necessary Journal entries and prepare Manu’s Capital Account to be rendered
to his executors. (6)
14. Following is the Receipts and Payments Account of Megha Amusement Club:
RECEIPTS AND PAYMENTS ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Receipts ` Payments `
To Balance b/f: By Salaries 12,000
Cash in Hand 150 By Sports Equipment 46,785
Cash at Bank 14,200 14,350 By Stationery 1,220
To Subscriptions 61,100 By Maintenance of Ground 6,000
To Admission Fees 350 By Prizes 1,060
To Interest on Investments By Balance c/f:
@ 9% p.a. for full year 9,000 At Office 380
At Bank 17,355 17,735
84,800 84,800