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Model Test Papers M.359

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Angad, Raman and Harshit were partners in a firm. They decided to dissolve
their firm. Pass necessary Journal entries for the following after various assets
(other than Cash and Bank) and the third party liabilities have been transferred to
Realisation Account:
(i) There was stock of ` 90,000. Raman took 50% of the stock at 10% discount and
remaining stock was sold at 40% profit on book value.
(ii) Profit and Loss Account was showing a debit balance of ` 15,000 which was
distributed among the partners.
(iii) A machinery which was not recorded in the books was sold for ` 2,000.
(iv) Angad was paid ` 5,000 for his loan to the firm which was ` 5,500.
(v) Realisation Expenses amounting to ` 5,000 paid by Harshit.
(vi) There were 100 shares of ` 10 each in DCM Ltd. acquired at a cost of ` 1,200
which had been written off completely from the books. These shares are valued
@ ` 9 each and distributed among the partners in their profit-sharing ratio. (6)
15. Following is the Receipts and Payments Account of Nari Kalyan Samiti:

RECEIPTS AND PAYMENTS ACCOUNT
Dr. for the year ended on 31st March, 2018 Cr.
Receipts ` Payments `
To Balance b/d: By Rent 6,600
Cash in Hand 1,000 By Electricity Charges 3,200
Cash at Bank 1,270 2,270 By Lecturer’s Fee 730
To Subscriptions 32,500 By Office Expenses 1,480
To Life Membership Fee 3,250 By Printing and Stationery 1,050
To Donations 2,500 By Legal Fee 1,870
To Surplus from Entertainment Event 7,250 By Books 6,500
To Sale of Old Books (Books Value ` 1,000) 750 By Furniture Purchased 8,600
To Interest 350 By Expenses on Nukar Drama 1,300
By Balance c/d:
Cash in Hand 8,040
Cash at Bank 9,500 17,540
48,870 48,870
You are required to prepare an Income and Expenditure Account for the year ended
31st March, 2018 and Balance Sheet as on that date after the following adjustments:

(i) Subscription still to be received are ` 750, but subscription include ` 500 for the
year 2018–19.

(ii) In the beginning of the year the Samiti owned building ` 20,000 and furniture
` 3,000 and Books ` 2,000.
(iii) Provide depreciation on furniture @ 5% (including purchase), books @ 10% and
building @ 5%. (6)