Page 374 - AAAXII

Model Test Papers M.357

(e) Y to get commission @ 2% on the sales made during the year.
(f ) X is entitled to rent of ` 50,000 p.a. for allowing the firm to carry on the business
in his premises.
Net profit and sale of the firm for the year ended 31st March, 2018 was ` 3,00,000
before above adjustments and ` 8,00,000 respectively. Other particulars were:

X (`) Y (`)
Capital balances on 1st April, 2017 2,50,000 1,50,000
Loan advanced on 1st October, 2017 ... 1,25,000
Drawings during the year 50,000 40,000
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018
from the above transactions. (4)
12. X, Y and Z were partners sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2018,
their Balance Sheet was:
Liabilities ` Assets `
Creditors 30,000 Land 1,25,000
Workmen Compensation Reserve 1,55,000 Patents 30,000
Capital A/cs: Machinery 1,50,000
X 1,50,000 Stock 1,90,000
Y 1,25,000 Cash at Bank 40,000
Z 75,000 3,50,000
5,35,000 5,35,000

Z died on 1st August, 2018. It was agreed that:
(i) Goodwill of the firm be valued on the basis of 2 years’ purchase of the average
profit of last three years. The profits of the firm for the last three years ended
31st March, 2016, 2017 and 2018 were: ` 87,500; ` 1,00,000 and ` 75,000 respectively.
(ii) Machinery be valued at ` 1,40,000; Patents at ` 40,000; Land at ` 1,50,000 on this date.
(iii) For the purpose of calculating Z’s share in the profit up to the date of death, the
profit should be taken to have accrued on the same scale as in last financial year.
Prepare Z’s Capital Account and Revaluation Account. (4)
13. Following is the Balance Sheet of A and B as on 1st April, 2018:

Liabilities ` Assets `
Creditors 78,500 Land 60,000
Investment Fluctuation Reserve 9,000 Building 4,00,000
Capital A/cs: Furniture 37,500
A 6,00,000 Debtors 60,000
B 3,00,000 9,00,000 Stock 2,50,000
Investment (at Cost) 1,20,000
Bank 45,000
Cash 15,000
9,87,500 9,87,500