Page 93 - AAAXII

Model Test Papers M.87
Answers

PART A
1. Membership Subscription is the amount paid by the members of Not-for-Profit
Organisation on periodical basis to maintain their membership.
Or
Building Fund is the amount received as donation or set-aside out of surplus to construct
a building.
2. The document detailing the terms and conditions of the agreement between/among
partners, is known as Partnership Deed.
3. Efficient management helps in rapid growth of the business through planned
production and distribution, which in turn increases profitability and hence the value
of goodwill increases.
Or
(i) On change in profit-sharing ratio amongst the existing partners.
(ii) On admission of a new partner.
(iii) On retirement or death of a partner.
4. (i) All India Financial Institutions regulated by RBI, and
(ii) Banking companies.
Or
An amount equal to 25% of the nominal (face) value of outstanding debentures should
be transferred to Debentures Redemption Reserve.
5. When capitals are fixed, “Interest on Drawings” will be recorded in the debit side of
Partners’ Current Accounts.
6. He can do so only by changing this clause of Partnership Deed with the consent of all
the partners.

7. In the Books of Delhi Tennis Club
Dr. SUBSCRIPTIONS ACCOUNT Cr.
Particulars ` Particulars `
To Subscription in Arrears (Opening) 6,000 By Subscription in Advance (1st April, 2017) 3,500
To Bank A/c (Refund) 500 By Bank A/c 62,000
To Income and Expenditure A/c (Bal. Fig.) 61,000 By Subscription in Arrears (Closing) 5,000
To Subscription in Advance (Closing) 3,000
70,500 70,500

8. Calculation of Net Effect of Accumulated Profits, Losses and Reserves:
`
General Reserve 36,000
Contingencies Reserve 6,000
Profit and Loss A/c (Cr.) 18,000
60,000
Less: Advertisement Suspense A/c 24,000
36,000