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Model Test Paper 20

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. Show how will be the prizes awarded of ` 20,000 dealt while preparing the final accounts
of a club for the year ending on 31st March, 2018.
Or

What is meant by an Income and Expenditure Account? (1)
2. Name the accounts which are maintained for the partners when capitals of the partners
are fixed.

Or
Why is the gain (profit) or loss on revaluation not transferred to New Partner’s Capital
Account? (1)

3. All the partners agree to dissolve the firm. Y, a partner wants that his loan of ` 25,000
be paid before the payment of capitals of the partners. But X, another partner wants
that capitals be paid before the payment of Y’s loan. Decide who is correct? (1)
4. Pass the Journal entry if Raman, a partner, takes an asset at ` 75,000 in settlement
of his loan of ` 1,00,000 on dissolution of the firm. (1)
5. Give the Journal entry to distribute ‘General Reserve’ of ` 40,000 at the time of admission
of Z, when 20% of General Reserve is to be transferred to Provision for Doubtful Debts.
The firm has two partners X and Y. (1)
6. X Ltd. has ` 80,00,000, 9% Debentures of ` 100 each of which half the amount is due
for redemption at a premium of 5%. Redemption is to be out of profits. The company
has in its Debentures Redemption Reserve Account a balance of ` 4,00,000. State the
amount of profit required to be transferred to Debentures Redemption Reserve.
Or
What is meant by fully Convertible Debentures? (1)
7. Average Profit ` 5,50,000, Capital Employed ` 10,00,000, Normal Rate of Return
is 15%. Remuneration of all the partners during the period is estimated to be
` 2,50,000 per annum. Calculate the value of goodwill of the firm on the basis of
(i) capitalisation of Average Profit, and (ii) capitalisation of Super Profit. (3)