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Model Test Paper 3

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. What is meant by ‘Honorarium’? Give an example.
Or
How is profit on sale of old furniture of a sports club shown in its financial
statements? (1)
2. State two situations in which interest on partners’ capital is provided.
Or
Differentiate between ‘Profit and Loss Appropriation Account’ and ‘Profit and Loss
Suspense Account’. (1)
3. Suman and Sudha are partners in a firm sharing profits equally. Their fixed capitals
are ` 50,000 and ` 25,000 respectively. The Partnership Deed provided interest on
capital @ 12% p.a. For the year ended 31st March, 2018, the profit of the firm was
distributed without providing interest on capital.
Pass necessary adjustment entry to rectify the above. (1)
4. Z Ltd. forfeited 1,000 equity shares of ` 10 each for the non-payment of the final call
of ` 2 per share. Calculate the maximum amount of discount at which these shares
can be reissued.
Or
State any one difference between Equity Share Capital and Preference Share Capital. (1)
5. ABC Enterprises carries on its business from a rented premises owned by Bimal, a
partner in the firm, paying a monthly rent of ` 25,000. Should the rent be debited to
Profit and Loss Account or Profit and Loss Appropriation Account? (1)
6. State the ratio in which the retiring partner’s share of goodwill is debited to remaining
partners. (1)
7. On 1st April, 2014, following balances appeared in the books of Blue & Star Ltd.:
10% Debentures (Redeemable on 31st August, 2018) ` 20,00,000
Debentures Redemption Reserve ` 2,00,000
The company met the requirements of Companies Act, 2013 regarding Debentures
Redemption Reserve and Debentures Redemption Investments and redeemed the
debentures.
Ignoring interest on Debentures Redemption Investments, pass necessary Journal
entries for the above transactions in the books of the company. (3)