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Model Test Paper 16

Time Allowed: 3 Hours Max. Marks: 80

General Instructions:
As per Model Test Paper 1

PART A

ACCOUNTING FOR NOT-FOR-PROFIT ORGANISATIONS,
PARTNERSHIP FIRMS AND COMPANIES
1. State whether Receipts and Payments Account records all revenue receipts and revenue
payments.
Or
Distinguish between Receipts and Payments Account and Income and Expenditure
Account on the basis of Balance. (1)
2. What is the maximum limit of partners in a partnership firm? Name the Act under
which it is provided. (1)
3. What is meant by Reconstitution of a Firm? (1)
4. P, Q and R are equal partners in a firm. Goodwill of the firm is valued at ` 90,000. On
R’s retirement from the firm, P and Q agree to share future profit in the ratio of 3 : 2.
Pass necessary Journal entry for treatment of R’s share of Goodwill. (1)
5. X, Y and Z, who are presently sharing profits and losses in the ratio of 5 : 3 : 2, decide to
share future profits and losses in the ratio of 2 : 3 : 5. Give Journal entry to distribute
‘Investment Fluctuation Reserve’ of ` 40,000 at the time of change in profit-sharing
ratio, when Investment (Market value ` 1,90,000) appears at ` 2,00,000.
Or
A, B and C who are presently sharing profits and losses in the ratio of 5 : 3 : 2, decide
to share profits and losses in the ratio of 2 : 3 : 5 in future. Give the Journal entry
to distribute ‘Workmen Compensation Reserve’ of ` 60,000 at the time of change in
profit-sharing ratio, when there is claim of ` 40,000 against it. (1)
6. Why ‘Securities Premium Reserve Account’ is not debited at the time of forfeiture of
shares which were originally issued at premium and which has been received? (1)
7. State how following items will be dealt while preparing the final accounts of City
Cricket Club for the year ending on 31st March, 2018:
Expenditure on construction of Building ` 3,60,000.
The construction work is in progress and has not yet completed.
`
Opening Capital Fund 10,80,000
Opening Building Fund 4,80,000
Donation Received for Building 6,00,000
Opening 10% Building Fund Investments 4,80,000
Interest Received on Building Fund Investments 48,000
(3)