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Model Test Papers M.439

14. From the following Receipts and Payments Account, you are required to prepare
the Income and Expenditure Account for the year ending 31st March, 2018 and
Balance Sheet as on that date after considering the given adjustments:
RECEIPTS AND PAYMENTS ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Receipts ` Payments `
To Balance b/d: By Salaries 3,00,000
Cash in Hand 80,000 By Furniture 50,000
Cash at Bank 1,20,000 2,00,000 By Rent 8,500
To Donations 10,000 By Postage 11,500
To Interest on Investments 40,000 By Investments 2,00,000
To Subscriptions 3,00,000 By Honorarium to Manager 10,000
To Entrance Fees 1,50,000 By Balance c/d:
Cash in Hand 20,000
Cash at Bank 1,00,000 1,20,000
7,00,000 7,00,000

Adjustments:
(i) Out of the subscriptions received, ` 2,000 are for the previous year and ` 1,000
for the next year. Subscriptions of ` 5,000 are outstanding for the current year.
(ii) Rent of ` 2,000 is unpaid.
(iii) Interest accrued but not received on investments is ` 5,000.
(iv) Provide depreciation on furniture at 20%.
(v) Capital Fund on 1st April, 2017 was ` 2,02,000. (6)
15. A and B, who were partners sharing profits and losses in the proportion of 4/7 and
3/7 respectively, decide to dissolve the partnership firm as at 31st March, 2017. From
the information given below, complete Realisation Account, Partners’ Capital Accounts
and Bank Account:

Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Sundry Assets A/c 1,45,730 By Sundry Creditors 23,150
(Other than Cash) By Bank A/c—Assets Realised 1,24,910
To Bank A/c—Creditors Paid ? By Loss transferred to:
To Bank A/c—Expenses Paid 1,860 A’s Capital A/c ?
B’s Capital A/c ? ?
1,70,740 1,70,740

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars A B Particulars A B
` ` ` `
To Realisation A/c—Loss 12,960 9,720 By ? ? ?
To Bank A/c—Final Payment 1,12,070 By Bank A/c—Cash brought in 7,650
? ? 1,25,030 9,720