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P. 388

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
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