Page 4 - AAAXII

Model Test Paper 1

Time Allowed: 3 Hours Max. Marks: 80

General Instructions:
1. This question paper contains two Parts A and B.
2. Part A is compulsory for all.
3. Part B has two options—Option I Analysis of Financial Statements and Option—II
Computerised Accounting.
4. Attempt only one option of Part B.
5. All parts of a question should be attempted at one place.

PART A
ACCOUNTING FOR NOT-FOR-PROFIT ORGANISATIONS,
PARTNERSHIP FIRMS AND COMPANIES

1. Income and Expenditure Account is prepared on Cash Basis of Accounting. Is the
statement correct?
Or
What is meant by Legacy Donation? (1)
2. Old and Young are in partnership sharing profits and losses equally. Their books of
account for the year ending 31st March, 2018 shows a profit of ` 1,50,000 before interest
on loan of ` 50,000 from Young at 10%. Each partner is entitled to salary as follows:
Old : ` 15,000 per annum
Young : ` 10,000 per annum
What is Old’s total appropriation of profit for the year ended 31st March, 2018? (1)
3. A and B are partners sharing profits and losses in the ratio of 3 : 2. They admit C, a
partner, who acquires 1/5th of his share from A and 4/25th share from B. Calculate
the New Profit-sharing Ratio.
Or
Give the Journal entry to distribute ‘Workmen Compensation Reserve’ of ` 80,000 at
the time of admission of Z, when there is a claim of ` 50,000 against it. The firm has
two partners X and Y. (1)
4. Mother Ltd. has ` 20,00,000, 9% Debentures of ` 100 each of which half the amount is due
for redemption at a premium of 5%. These debenture have been redeemed out of profits.
The company has in its Debentures Redemption Reserve Account a balance of ` 1,00,000.
State the amount required to be transferred to Debentures Redemption Reserve.
Or
Name the account to which the ‘Debentures Redemption Reserve’ is transferred after
redemption of debentures. (1)