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Model Test Paper 17

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. Ravi and Bhavi are partners in a firm not having a Partnership Deed. Ravi and Bhavi
have contributed ` 3,00,000 and ` 5,00,000 respectively as capitals. Bhavi claims
interest @ 6% p.a. on excess capital of ` 2,00,000. Ravi does not want to allow any
interest. State giving reason, who is correct in this case.

Or
Ram and Mohan are partners in a firm without a Partnership Deed. Their capitals
are Ram ` 20,00,000 and Mohan ` 10,00,000. Ram is an active partner and looks after
the business. Ram wants that profit should be shared between them in proportion of
capitals. State with reason whether his claim is valid or not. (1)
2. A, B and C are partners. C retires. Amount payable to him is ` 72,300. Required cash
in hand is ` 20,000. Cash already in hand is ` 7,000. A and B bring in the required
amount in the ratio of 3 : 2. A brings in ` 51,180. How much B will bring in? (1)

3. A partnership firm employs an inexperienced bookkeeper. He has prepared the Current
Account of one of the partners as follows:

Dr. PARTNER’S CURRENT ACCOUNT Cr.
Particulars ` Particulars `
To Interest on Capital A/c 2,80,000 By Balance b/d 27,000
To Salary A/c 1,50,000 By Drawings A/c 6,20,000
To Balance c/d 10,87,000 By Net Profit 8,70,000
15,17,000 15,17,000

The balance brought forward is entered correctly and the other entries are all correct
in amount. However, the bookkeeper is not sure of the difference between debit and
credit. What is the correct balance to be carried forward? (1)

4. On 1st April, 2017, Green Ltd. issued ` 25,00,000, 10% Debentures of ` 100 each at
a discount of 10% redeemable at a premium of 5%. Interest is payable half yearly on
30th June and 31st December, every year. What amount would be shown as ‘interest
accrued but not due’ in the company’s Balance Sheet as at 31st March, 2018. Under
which head will it be shown?
Or
What is the maximum limit of discount on issue of debentures? (1)