e firm becomes illegal ofit sharing raticit will be: (c) Debit & 7,000 (d) Debit & 4,00¢ considered as good. ‘count of the above treatmen! (b) Credit £4,000 of a partnership firm there existed a balance of 45,000 in Sun Dei aban 8,000 in Provision for Bad Debts Account in the by count and a balance of ae mount by which ‘Realisation Account’ will be debited for closing Su Debtors Account will be: {a) 245,000 (b) 37,000 (c) %8,000 (d) 53,000 debtors were ‘Account on ack {a) Debit € 3,000 8, After doing the adjustments regarding drawings %40,000,share of profit 224,000 and the additional capital introduced, £32,000, the capital of Ashok, a partner, as on 31.03.2022 was 25,00,000. His capital as on 01.04.2021 was: (a) 84,84,000 (b) 85,16,000 (0) 84,46,000 (a) 25,96,000 ar ended 31.03.2022 Jeevan rtnership deed provided that ber of months for © Josh and Jeevan were partners in a firm. During the ye withdrew 25,000 per month starting from 30.08.2021. The pat interest on drawings will be charged @ 12% per-annum. The average num which interest on Jeevan's total drawings will be charged is: (2) 6 months (b) 6% month ¥(@) 4% months (d) 5 months 40. X and Z were partners in a firm with capitals of £45,000 each. They admitted Y as a new partner for 1/3rd share in the profits of the firm. Y brought %60,000 as his capital. Based on Ys share in the profits of the firm and his capital contribution, the goodwill of the firm will be (a) 21,80,000 (b) =1,50,000 (c) % 30,000 (d) 290,000 41. C, D and E were partners in a firm sharing profits and losses in the ratio of 5:3:2. They the ratio of 2:1:2. C’s new share in the profits will be: 5 USel ram admitted F as a new partner for % share in the profits which was sacrificed by C, D and Ein (a)% (&)% (930 (a) 4/20 L a 42. Raja Ltd. purchased machinery for %25,00,000 from Sharma Ltd. The payment to 3 ° Sharma Ltd. was made by issue of equity shares of 210 each at a premium of 25%. The amount to be credited to the ‘Securities Premium Reserve Account’ on issue of equity shares will be a (a) 225,000 (b) 250,000. (c) €62,500. (d) 5,00,000 43. Assertion (A): Increase in the value of liabilities on reconstitution of a firm is debited to Revaluation Account Reason (R): Increase in the value of liabilities is a loss. Select the correct alternative from the following: (2) Assertion (A) is correct, but Reason (R) is wrong (b) Assertion (A) is wrong, but Reason (R) is correct (©) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation. of Assertion (A) 38 (d) Both Assertion (A) and Reason (R) are wrong. 3K wee(2) Keshav 2 1,20,000, krishna & 1,00,000 and Murari ® 80,000 (©) Keshav 8 1,80,000, Krishna & 1,12,000 and Murari @ 80,000 (©) Keshav & 60,000, Krishna & 12,000 and Murari € Nil (2) Keshav & 3,30,000, krishna & 2,12,000 and Murari 1,30,000 15. Amount of profit transferred to Partners’ Current Accounts was: (a) Keshav & 1,00,000, Krishna & 1,50,000 and Murari & 50,000 (©) Keshav & 50,000, Krishna % 1,50,000 and Murari @ 1,00,000 (¢)Keshav & 1,50,000, Krishna 1,00,000 and Murari Z 50,000 (6) Keshav & 1,51,500, Krishna Z 1,01,000 and Murari 2 50,500 7 640% oO 16. BB Ltd. forfeited 4000 shares of € 10 each for non-payment of final call of €5 per share. The forfeited amount was %20,000. The minimum amount per share at which these shares can be re-issued will be: (es (b) 27 ()%5 (84 17. On dissolution of the partnership firm of A, B and C, the accumulated profits of € 40,000 will be transferred to which of the following account? (a) Revaluation Account (b) Realisation Account (c)Partners'Capital Accounts (@) Bank Account 18. Madhu and Radha were partners in a partnership firm sharing profits and losses in the ratio of 3: 2. Madhu withdrew 220,000 in each quarter during the year ended 31.03.2023. Interest on drawings was to-be charged @ 6% p.a. Interest on Madhu's drawings will.be- (a) 23,000 (b) €2,400 (c) 1,800 (4) 84,800 19.The goodwill of a firm was valued on the basis of 3 years purchase of average profits for the last four years. The profits of last four years ending 31st March were as follows: ge ob Year Profit/Loss (2) 2018-19 (14,500) 2019 - 20 15,400 2020 - 21 32,900 2021 - 22 16,800 } The value of goodwill of the firm was: (2) 78,885 (b) 237,950 (c) 58,950 (d) 820,69020.That portion of the uncalled capital which is called only in the event of winding up company, is called: Oe en (2) Called-up capital (c) Issued capital (b) Uncalled capital ir 217,00,000 and ‘ed from Cayres Ltd,, Machinery, at 217,00, ‘over its liabilities amounting to 27,00,000. The id as follows: 25,00,000 through a cheque and of 10%. Pass necessary journal 1. On 01.04.2021, Bain Ltd. purchas Land and Building at £40,00,000. It also took purchase consideration of €60,00,000 was pai " the balance by issue of shares of 2100 each at a premium entries for the above transactions in the books of Bain Ltd, i da partnership firm with fixed capitals of 12. On 01.04.2022, Ravi, Kavi and Avi started a p: od cor 6,000. %6,00,000 and 23,00,000 respectively. The partnership deed pri 92, following 4 @ (Interest on capital @ 10% per annum. (ii) Interest on drawings @ 12% per annum. (il) An annual salary of 21,20,000 to Avi. (iv) Profits and losses were to be shared in the ratio of their capitals. The net profit of the firm 3 | for the year ended 31.03.2023 was %3,08,000. Interest on partners’ drawings was Ravi 4,800, Kavi %4,200 and Avi 23,000 “ Gp d022 Prepare Profit and Loss Appropriation Account of Ravi, Kavi and Avi for yoo? the year ended 31.03.2023. ¥ |% 01.04.2022, they admitted.R as a new partner for 1/10th share of profits with a guaranteed J minimum of 250,000. P and Q continued to share profits as before but agreed to share any (PP deficiency on account of guarantee to R in the ratio of 3: 2. The net profit of the firm for the %e j year ended 31.03.2023 was3,00,000. Pass necessary journal entries in the books of P and Q for the above transactions. 23. P and Q were partners in a firm sharing profits and losses in the ratio of 2: 1. On ves iar Jl. 24. Nisha, Priya and Rajat were partners in a firm sharing profits in the ratio of 2%: 1. The firm closes its books on 31st March every year. Priya diéd on 1st July 2022. On Priya's bo) death, the goodwill of the firm was valued at %3,00,000 and her share in the profits of the firm till the time of her death was to be calculated on the basis of previous year's profit which was %6,00,000 ee Pass necessary journal entries for the treatment of goodwill and Priya’s share of profit at the time of her death. . 25. Annex Ltd. issued 1,00,000 shares of = 10 each at a premium of 10% to the public for subscription. The whole amount was payable on application. Applications were received for 3,00,000 shares and the board decided to allot shares to all shareholders on ita basis. Pass necessary journal entries for the above transactions in the books of AnnéeLtd 26.Sharma and Verma were partners in a firm sharing profits and losses in the ratio of 3:2. Their fixed capitals were %14,00,000 and %10,00,000 respectively. The partnership deed Provided for the following: eD 3 9 Interest on capital @ 10% per annum hoa coer VE one (i) Interest on drawings @ 12% per annum “Tee SF P as @ 12% p (oo oo aaa AS Es Ss Idjoas 2 YAY 00_Balance Sheet of M, S and Ras at S1st maneny a= Liabilities ‘Amount (2) | Assets ‘Amount (2) i 0,000 _| Fixed Assets 4,20,000 VS sai) Stock 70,000 pre 60,000 Debtors 20,000 § 50,000 Bank 60,000 R 30,000. | 1,40,000 Profit and Loss Alc | 50,000 2,70,000 2,70,000 Gn The above date the firm was dissolved. Fixed assets realised %1,20,000 and stock realised 210,000. Debtors were realised at their book value and liabilities were paid in full Prepare Realisation Account and Partners’ Capital Accounts. CCL Ltd. invited applications for issuing 75,000 equity shares of 10 each at @ premium of ws per share. The amount was payable as follows: On Application - 2 per share * re On Allotment - 26 per share (including premium) 34.3 ‘On First Call- %3per Share “(.< On Second and Final Call - Balance Applications for 1,20,000 shares were received. Application for 45,000 shares were rejected) and the excess application money was refunded. Full allotment was made to remaining, applicants. All moneys due were received except for Harish, a shareholder holding 2000 shares, who failed to pay the first and second and final call money. ! Sass nevessary jourral entries forthe above transactions in the books of the company: “0 so ‘A and B were partners in a firm sharing profits and losses in the ratio of 3: 1 ogee! 31.03.2022, their Balance Sheet was as follows’ wv Balance Sheet of A and B as. at 3ist March, 2022 [Liabities Amount (2) | Assets Amount (2) | Outstanding Expenses | 3,000 Bank 40,000 Bills Payable 20,000 Stock 60,000 | Sundry Creditors » 1,40,000 _| Bills Receivable 70,000 Fae Rosas 80,000- | Debtors. ——+,00,000 ae , Less Provision for | doubtful Debts. 5,000 | 95,000 | A 22,00,000 : Furniture 85,000 B %3,00,000 | 5,00,000 | Machinery 1,10,000 | Land and Building 2,83,000 | 7,43,000 7,43,000 7 On the above date, C was admitted as a new pariner for share 1/5 in the profits on the following terms: (i) C will bring %2,00,000 as her capital and &1,60,000 as ‘her share of goodwill premium. (ii) Stock will be appreciated by & 1,500. (ii) Debtors of & 5,000 will be writen off as bad debts and a provision of 10% for bad and doubtful debts will be maintained.