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Model Test Papers M.5
Ram paid creditors the amount due less 15% and Shyam paid bills payable in full.
Assets realised as follows: Land ` 96,000; Machinery ` 35,000; Stock 25% less and
Debtors ` 12,500. Expenses on realisation ` 1,750 were paid by Shyam.
Prepare Realisation Account, Partners’ Capital Accounts and Bank Account. (6)

15. Following is the Receipts and Payments Account of Literacy Club for the year ended
31st March, 2018:

Dr. RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018 Cr.
Receipts ` Payments `
To Balance b/f 20,000 By Building 1,08,000
To Donation 1,00,000 By Match Expenses 900
To Life Membership Fees 8,000 By Furniture 5,100
To Receipts from Matches 16,000 By 10% Investments 32,000
To Subscriptions 10,400 By Salaries: Y/E 31st March, 2017 4,000
To Lockers’ Rent 800 Y/E 31st March, 2018 10,000 14,000
To Interest on Investments 480 By Insurance 700
To Sale of Furniture (Book Value ` 1,600) 2,000 By Sundry Expenses 1,940
To Entrance Fees 6,000 By Balance c/f 1,040
1,63,680 1,63,680

Additional Information:
(i) Subscriptions outstanding on 31st March, 2017 were ` 200 and on 31st March,
2018 were ` 1,380.
(ii) Outstanding salaries for the year ended 31st March, 2018 were ` 800 and
outstanding sundry expenses were ` 600.
(iii) Donation includes ` 20,000 for general donations and balance for building.
(iv) 10% Investments were purchased on 1st July, 2017.
Prepare Income and Expenditure Account of the Club for the year ending
31st March, 2018. (6)
16. A, B and C are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1.
Their Balance Sheet as at 31st March, 2018 is as under:

Liabilities ` Assets `
Creditors 30,000 Cash in Hand 18,000
Bills Payable 16,000 Debtors 25,000
General Reserve 12,000 Less: Provision for Doubtful Debts 3,000 22,000
Capital A/cs: Stock 18,000
A 40,000 Furniture 30,000
B 40,000 Machinery 68,000
C 30,000 1,10,000 Goodwill 12,000
1,68,000 1,68,000