Page 465 - AAAXII

Model Test Papers M.445

Answers

PART A
1. `
Z’s Annual Salary (` 8,000 × 12) 96,000
È 5 ˘
Add: Z’s Commission Í Î105 ( 13,56,000 - ` 96,000) ˙ ˚ 60,000
`
Total Remuneration of Z 1,56,000
Or
(i) At the time of retirement or death of a partner.
(ii) At the time of change in profit-sharing ratio among partners.
2.
Basis Dissolution of Partnership Dissolution of Firm
Termination of Business The business of the firm is not The business of the firm is closed.
terminated.
3. Donation is shown in the liabilities side of the Balance Sheet when it is received for a
specific purpose.
Or
Yes. Non-cash items (e.g., Depreciation) are shown in Income and Expenditure Account
following the Accrual Concept and Matching Principle.
` 1,60,00,000
4. (i) No. of Subscribed Shares = = 1,60,000 shares.
` 100
` 1,25,000
(ii) Calls-in-Arrears (per share) = = ` 25.
5,000
(iii) Final Call on Shares = ` 25 per share.
5. It is known as ‘Gaining Ratio’ as it is the ratio in which X and Y have gained the share
of outgoing partner, i.e., Z.
6. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Investment Fluctuation Reserve A/c ...Dr. 40,000
To Investment A/c 10,000
To Sunil’s Capital A/c 15,000
To Dalip’s Capital A/c 15,000
(Being the value of investment brought down to market value and excess
Investment Fluctuation Reserve transferred to Partners’ Capital Accounts
in their old profit-sharing ratio)
7.
Dr. SUBSCRIPTION ACCOUNT Cr.
Particulars ` Particulars `
To Outstanding Subscription A/c (Opening) 15,000 By Advance Subscription A/c (Opening) 60,000
To Income and Expenditure A/c (Bal. Fig.) 2,55,000 By Bank A/c (` 10,000 + ` 1,90,000 + ` 20,000) 2,20,000
To Advance Subscription A/c (Closing) 55,000 By Outstanding Subscription A/c:
(` 20,000 + ` 35,000) 2016–17 (` 15,000 – ` 10,000) 5,000
2017–18 40,000
3,25,000 3,25,000