B.C.M.

Dugri
_____________ Exams
T.T. 1.5 HRS
+2 Accountancy mm 40

Q1. Why should a new partner contribute towards goodwill on his admission ? (1)

Q2. X, Y and Z were partners sharing profits and losses in the ratio of 3:2:2. Z retired and the amount
due to him was Rs. 85000. He was paid Rs. 5000 immediately. The balance was payable in three equal
annual instalments carrying interest @ 6% p.a. Pass necessary journal entry for recording the same on
the date of Z’s retirement. 1

Q4. Change in Profit Sharing Ratio amounts to dissolution of partnership or partnership firm ? Give
reason in support of your answer. (1)

Q5. In which ratio do the remaining partners acquire the share of profit of the retiring partner ?
(1)
Q6. Is a sleeping partner liable to the acts of other partners ? (1)
Q7 Define the term endowment fund
Q8 Difference between Capital and capital fund [1]

Q9. The total capital of the firm of Saurabh, Mohit and Nikhil was Rs. 100000. The net profits for the
last 3 years were 2013-14 Rs. 40000; 2014-15 Rs. 46000 and 2015-16 Rs. 52000. There was an abnormal
loss of Rs. 3000 in 2014-15. Goodwill of the firm was to be valued at 2 years purchase of the average
profits of the last three years. Calculate the goodwill of the firm. (3)
Q10) Aditi and Shruti are partners sharing profits and losses in 2 : 3. Business in being carried from the
premises owned by Aditi on a quarterly rent of Rs. 15000. Aditi is entitled to salary of Rs. 20000 per
month and Shruti is to get commission @ 5% of net sales, which during the year was Rs. 6000000. Net
profit for the year ended 31st March, 2017 before providing for rent was Rs. 800000. You are required to
draw profit and loss appropriation account for the year ended 31st March, 2017 . .[3]

Q11. A, B and C are partners sharing profits in the ratio of 4/9:1/3:2/9. B retires and A and C decide to
share profits in the ratio of 1 : 2. It was decided to adjust B’s share of goodwill in the accounts of
continuing partners. Fill in the missing figures in the following Journal Entry. Also find out the total
goodwill of the firm.

Date PARTICULARS L.F. Dr. Cr.

(Rs.) (Rs.)
C’s Capital Account Dr. ---
To A’s Capital A/c ---
To B’s Capital A/c 150000
(C Compensates A and B for the loss in
share of profits)
(4)

Q. 12 Prepare Subscription Account from the following item for year ending on 31st March
2018.(a) Subscription in arrears on 31st March 2017 ₹ 500 (b) Subscription received in
advance on 31st March 2017 ₹ 1,100 (c) Total Subscription received during 2017-2018
(Including ₹ 400 for 2016-2017, ₹ 900 for 2018-2019 and ₹ 300 for 2019-2020 – ₹ 35,400 (d)
Subscription outstanding for 2017-2018 ₹ 400. (4)

Q. 13 X and Y were partners in a firm sharing profits in the ratio of 3 : 2. On 1-1-2018

their fixed capitals were ₹ 3,00,000 and ₹ 2,50,000 respectively. On 1-7-2018, they
decided that their total fixed asset capital should be ₹ 6,00,000. They further decided
that this capital should be in their profit sharing ratio. Accordingly, they introduced extra
capital or withdrew excess capital. The partnership deed provided for the following:
Interest on capital @ 12% p.a. Interest on drawings @ 18% p.a. A monthly salary of ₹
2,000 to X and a monthly salary of ₹ 1,500 to Y. The drawings of X and Y during the
year were: June 30 X ₹ 20,000, Y₹ 15,000 September 30 X₹ 20,000Y ₹ 25000
Adjustment: During the year ended 31-12-2018, the firm earned a net profit of ₹
1,50,000. 10% of this profit was to be transferred to reserve. Prepare P&L Appropriation
A/c’s. (4)

Q14 From the following Receipts and Payment Account of Baba Deep Singh Society,
prepare Income and Expenditure Account and the Balance Sheet as at 31st March 2018 (6)

Receipt Amount Payment Amount

To Balance b/d 45000 By Expenses 1000

cash 30000 on Charity
Show
Bank 15000

To subscription 2200 By 12000

Investments
2016-17 700

2017-18 1000

2018-19 500

3000 By insurance 2500

To charity show
realization
 To donations 2500 By sundry 500
expenses

To misc receipts 1000 By office 900

expenses

By fax 3000
machine
[1.10.17]

By salary 11,100

By bc/d 22700

Cash 6000

Bank 16700

53700 53700

Other Information: On 31.3.2018, Subscriptions of ₹ 2,800 (including ₹ 500 for 2017–

18) were in arrear and Insurance charges of ₹ 500 were prepaid. On 1.4.20 had the
following assets and liabilities Fax Machine ₹ 5,000; Investments ₹ 3,500; Salary
Outstanding ₹ 1,000 and Insurance prepaid ₹ 300. Depreciation is to be charged on
Fax Machine @ 10%. Donations are to be capitalized 6.

15] Tom and Jerry were partners in the firm sharing profits in the ratio of 3:2. On 31.3.2018 their Balance Sheet was
as follows:
Balance Sheet as at 31.3.2018
Liabilities Amount Assets Amount
Creditors 40,000 Land and Building 2,00,000
Workmen Compensation Fund 50,000 Motor Vans 1,00,000
Profit and Loss Account 40,000 Investments 2,50,000
Capitals: Goodwill 50,000
Tom 3,50,000 Stock 60,000
Jerry 2,50,000 6,00,000 Debtors 90,000
Bank Overdraft 30,000 Less: Provision 10,000 80,000
Investment Fluctuation Fund 20,000 Cash 40,000
7,80,000 7,80,000
On the above date, Duck was admitted as a new partner for 1/5 share which he acquired equally from Tom and Jerry.
Following points were agreed upon.
i. Goodwill of the firm was valued at 1,50,000. Duck was unable to bring his share of Goodwill.
ii. Workmen Claim amounted to 20,000.
iii. Investment were valued at 2,80,000.
iv. Depreciate Motor Vans by 10% and appreciate Land and Building by 20%.
v. Stock was valued at 50,000.
vi. Provision for Doubtful debts was to be maintained @10% of Debtors.
vii. Duck was to bring 25% of the combined capital of Tom and Jerry.
Prepare Revaluation Account, Partner’s Capital Account and Balance Sheet of New Firm. 8