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Model Test Papers M.371
Working Notes:
1. Y’s Share in profits is 1/5 and his share in General Reserve = ` 4,000.
As, Total General Reserve = ` 4,000 × 5/1 = ` 20,000. X’s Share in General Reserve = ` 20,000 × 4/5 = ` 16,000.
2. Y’s share in profit is 1/5 and his share in Advertisement Expenditure = ` 200. So, total Advertisement
Expenditure = ` 200 × 5/1 = ` 1,000.
X’s Share in Advertisement Expenditure = ` 1,000 × 4/5 = ` 800.
Or
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
(i) Raman’s Capital A/c ...Dr. 40,500
Bank A/c ...Dr. 63,000
To Realisation A/c 1,03,500
(Being 50% stock taken by Raman and remaining realised)
(ii) Angad’s Capital A/c ...Dr. 5,000
Raman’s Capital A/c ...Dr. 5,000
Harshit’s Capital A/c ...Dr. 5,000
To Profit and Loss A/c 15,000
(Being the loss distributed)
(iii) Bank A/c ...Dr. 2,000
To Realisation A/c 2,000
(Being the unrecorded machinery realised)
(iv) Angad’s Loan A/c ...Dr. 5,500
To Bank A/c 5,000
To Realisation A/c 500
(Being the Partner’s loan repaid and gain recorded)
(v) Realisation A/c ...Dr. 5,000
To Harshit’s Capital A/c 5,000
(Being the realisation expenses paid by Harshit)
(vi) Angad’s Capital A/c ...Dr. 300
Raman’s Capital A/c ...Dr. 300
Harshit’s Capital A/c ...Dr. 300
To Realisation A/c 900
(Being the shares of DCM Ltd. distributed)
15. INCOME AND EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Expenditure ` Income `
To Rent 6,600 By Subscriptions 32,500
To Electricity Charges 3,200 Add: Subscription Due 750
To Lecturer’s Fee 730 33,250
To Office Expenses 1,480 Less: Subscription Advance 500 32,750
To Printing and Stationery 1,050 By Donations 2,500
To Legal Fee 1,870 By Surplus from Entertainment Event 7,250
To Expenses on Nukar Drama 1,300 By Interest 350
To Loss on Sale of Books 250
To Depreciation on:
Furniture 580
Books 750
Building 1,000 2,330
To Surplus (i.e., Excess of Income over Expenditure) 24,040
42,850 42,850