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Model Test Papers M.55
12. Vikas, Vishal and Vaibhav were partners in a firm sharing profits in the ratio of
2 : 2 : 1. The firm closes its books on 31st March every year. On 31st December, 2017,
Vaibhav died. On that date his Capital Account showed a credit balance of ` 3,80,000
and Goodwill of the firm was valued at ` 1,20,000. There was a debit balance of
` 50,000 in the Profit and Loss Account. Vaibhav’s share of profit in the year of his
death was to be calculated on the basis of the average profit of last five years. The
average profit of last five years was ` 75,000.
Pass necessary Journal entries in the books of the firm on Vaibhav’s death. (4)
13. From the following Receipts and Payments Account of City Club and additional
information, prepare an Income and Expenditure Account for the year ending
31st March, 2018 and Balance Sheet as on the date:

Dr. RECEIPTS AND PAYMENTS ACCOUNT for the year ending 31st March, 2018 Cr.
Receipts ` Payments `
To Balance b/d: By Affiliation Fee to Pradesh Club 10,000
Cash in Hand 10,000 By Furniture (1st October, 2017) 30,000
Cash at Bank 40,000 50,000 By Sports Expenses 25,000
To Subscription: By Sundry Expenses 1,52,000
2016–17 5,000 By Balance c/d:
2017–18 1,50,000 Cash in Hand 40,000
2018–19 10,000 1,65,000 Cash at Bank 1,00,000 1,40,000
To Life Membership Fees 1,20,000
To Sale of Scrap 2,000
To Interest on Sports Fund Investment 20,000
3,57,000 3,57,000
Additional Information:
(i) The Club has 1,600 members, each paying an annual subscription of ` 100.
Subscription of ` 4,500 is still in arrears for 2017–18.
(ii) On 1st April, 2017, the Club’s assets and liabilities included Furniture ` 20,000;
Sports Fund and 10% Sports Fund Investment ` 3,00,000 each.
(iii) Provide depreciation on Furniture at 20% p.a. (6)
14. Pass necessary Journal entries on the dissolution of a firm in the following cases:
(i) Dissolution expenses were ` 700.
(ii) Dissolution expenses ` 1,100 were paid by partner ‘A’.
(iii) Partner ‘B’ agreed to carry out the dissolution process for a remuneration of
` 2,000. He also agreed to bear the dissolution expenses. Dissolution expenses
were ` 2,100.
(iv) Partner ‘C’ was appointed to look after the dissolution work for a remuneration
of ` 20,000 including dissolution expenses. Dissolution expenses were ` 9,800
paid by the firm.
(v) Partner ‘D’ agreed to carry out dissolution for a remuneration of ` 15,000.
Dissolution expenses were ` 13,000 which were paid by the firm.
(vi) Partner ‘F’ was appointed to look after dissolution of the firm for a remuneration
of ` 9,000. He also agreed to pay the dissolution expenses. ‘F’ took furniture of
` 9,000 as his remuneration.