Candy, Sugar and Orange are partners showing profits losses.in the ratio 5:3:2. Before sugar’s salary of % 26,000, firm's profit is % 1,06,000. How much in total sugar will receive from the firm? 1 (a) © 40,000 (b) 50,000 () © 45,000 (a) % 60,000 On dissolution of the partnership firm of Ram, Ramesh and Raju, accumulated losses of 2 35,000 will be transferred to which the following account? 1 Bank Account (b) Realisation Account (@) (c) Revaluation Account (d) OR Partner’s Capital Account There was an unrecorded asset of Account % 50,000 which was taken over by a partner at % 45,000 at the time of dissolution of the firm. Partner’s Capital Account will be : 1 (a) _ Debited by % 50,000 (b) Credited by 50,000 (©) Credited by % 45,000 (d) debited by % 45,000 ‘Aakash and Baman are partners. They admit Charu for 1/5 share. In future, the ratio between Aakash and Baman would be 3:2. New ratio of Aakash, Baman and Charu will be : 1 (a) 4:5:4 2): 22385) (©) 11:7:6 (d)__ 7:7:6 Ss i OR Te A and B are partners they admit C for 1/3 share. In future the ratio-between A and B would be 2:1. Sacrificing ratio will be : @ 1:1 : (b) 1:2 (@) 1:5 @ 2:5 X and Y are partners having capital of % 50,000 and % 40,000 respectively. They admit Z for 1/3 share and he brings & 50,000 as capital. Goodwill of the firm will be : 1 (@) 8,000 (b) 6,000 © %7,000 @ %10,0005. Rakhi withdrew % 10,000 p.m. at the end of each month and interest on drawing calculated at % 3300 at the end of the ycar. Rate of interest on drawing : 1 (a) S%pa. (b) 6%pa. (©) 7%pa. (@) 8%pa. OR Vikas is a partner in a firm. His drawing for the year ended 31% March, 2024 were % 80,000. If interest on drawing is charged @ 9% p.a; interest charged will be : @ %3500 (b) 7200 (©) %3600 (@) % 7000 On Chandu’s retirement, building appeared in the books of the firm at % 1,50,000. On revaluation, it was found that building is overvalued by 20%. What will be revalued value of building? 1 (a) %1,25,000 (b) 2% 1,30,000 (c) %1,32,000. - (d) = 120,000 OR A, B and C are partners with profit sharing ratio 4:2:3. B retires and goodwill was valued at € 3,60,000. In future A and C share profit in 5:3. Goodwill credited at B’s account by Aand C. (a) 60,000, % 45,000 (b) —% 40,000, & 45,000 (©) 265,000, % 15,000 (@) 270,000, % 45,000 Assertion (A) : A partnership firm can have maximum 50 partners. Reason (R) : Maximum limit of partners is prescribed in partnership Act, 1932. 1 Choose correct option: (a) Both Assertion (A) and Reason (R) are correct and (R) is the correct explanation of (A). : (b) Both Assertion (A) and Reason (R) are correct but (R) is not the correct explanation of (A). (c) Assertion (A) is correct, but Reason (R) is incorrect. (d) Assertion (A) is incorrect, but Reason (R) is correct. ‘XII-ACCOUNTANCY-Mll. Manav, Pulkit and Karan were partners in a firm sharing profits in the ratio of 5:3:2. On 31 March, 2024, the firm was dissolved. Manav was appointed to complete the dissolution process for which he was allowed a remuneration of % 35,000. Manav also agreed to bear dissolution expenses. Actual expenses on dissolution amounted to % 38,000 which were paid by Manav. Manav capital account will be credited by : 1 (a) © 38,000 (b) 35,000 (©) %3,000 (a) % 40,000 Vikas, Sunita and Rajni are partners sharing profits in the ratio 5:3:2. If Sunita share of profit at the end of the year is ® 1,50,000. What will be Vikas share of profit? 1 (a) %5,00,000 (b) %2,50,000 () %1,50,000 (4) %3,00,000 Assertion (A) : Loan from a bank is an internal liability. Reason (R) : Partner’s loan is paid prior to payment of capital to partners at the time of dissolution of firm. 1 Choose correct option: (a) Both Assertion (A) and Reason (R) are correct and (R) is the correct explanation of (A). (b) Both Assertion (A) and Reason (R) are correct but (R) is not the correct explanation of (A). (©) _ Assertion (A) is correct, but Reason (R) is incorrect. (d) Assertion (A) is incorrect, but Reason (R) is correct. Navjeevan Ltd. Forfeited 500 shares of = 10 each issued at 10% premium for non- payment of first call of % 3 per share and final call of % 3 per share. Share forfeited account will be credited with : 1 (a) %3,000 (b) %2,500 (c) % 2,000 @ = %1,500OR Ifa share of € 10 which & 7 has been paid, is forfeited it can be reissued at the minimum price of : (a) %4 (b+) %3 (©) %10 @) %6 Read the following hypothetical situation and answer question 12 and 13 on the basis of the same. Manu and Shanu are partners in a firm. They share profits in the ratio of 5:4. Their fixed capital is 7,00,000 each on 31“ March, 2023. Manu withdrew %-1,50,000 out of capital whereas Shanu introduced the same amount on 1“ October, 2023. Interest on capital is to be allowed @ 10% p.a. The firm earned net profit of = 5,00,000 for the year ended 31* March, 2024. For the year ended 31" March, 2024, Manu’s interest on capital amounts to : (a) % 66,000 (bo) % 65,000 (©) 764,500 (@) %62,500 Shanu share of profit for the year ended 31% March, 2024. (a) %1,70,000 (b) % 1,60,000 (©) 7%1,40,000 (d) %2,00,000 Lalit Ltd, forfeited 500 shares of = 10 each, % 8 called-up for non-payment of % 3 per share. Out of these, 300 shares were reissued for % 6 per share, % 8 paid-tip will be transferred-to Capital Reserve Account. (a) %700 (b) 2800 (©) %900 (d) 1000OR The portion of the capital which can be called-up only on the winding-up of the company is called 5 (a) uncalled capital (b) - called-up capital © authorized capital (d) reserve capital Raman and Pran are partners sharing profits in 3:2. They admitted Sabu for 1/4 share in profits for which he paid € 2,00,000' against capital and % 50,000 against premium for goodwill, find the capital of each partner in proportion to new profit sharing ratio taking Sabu capital as base. (a) 7 3,80,000; = 2,50,000; %1,80,000 (b) —% 3,60,000; & 2,40,000; & 2,00,000 (c) % 4,00,000; % 2,00,000; € 200,000 (d) % 4,20,000; % 2,80,000; & 1,00,000 OR When a new partner doesn’t bring his share of goodwill the amount is : (a) Debited to Cash Account (b) Credited to New Partner Capital Account (©) Debited to Goodwill Account (d) _Debited to New Partner Capital Account Anju, Sanju and Suman were partners in‘a firm sharing profits in the ratio 3:2:1. They admitted Sanjay into partnership with effect from 1* April, 2024. New profit sharing ratio among Anju, Sanju, Suman and Sanujay will be 4:3:2:1. An extract of their Balance Sheet as at 31‘ March, 2024 is given below: Liabilities z Assets z Investment fluctuation} —1,50,000 _| Investment (Market Value 5,00,000 Teserve - | % 4,40,000)JOURNAL Particulars LF | Debit (®) | Credit () (A) Revaluation A/c Dr. 60,000 To Investment Fluctuation Reserve A/c 60,000 (B) | Investment Fluctuation Reserve A/c Dr. 1,50,000 To Anju’s Capital A/c 90,000 To Sanju’s Capital A/c 45,000 To Suman’s Capital A/c 15,000 (C) | Investment Fluctuation Reserve A/c Dr. 60,000 To Revaluation A/c 60,000 (D) | Investment Fluctuation Reserve A/c Dr. 1,50,000 To Investment 60,000 To Anju’s Capital A/c 45,000 To Sanju’s Capital A/c 30,000 To Suman’s Capital A/c . 15,00017. Capital employed by a partnership firm is % 6,00,000. Its average profit is % 80,000. The normal rate of retum is similar type of business is 10%. What is the amount of super profit. 1 (a) % 30,000 (b) % 25,000 (c) % 40,000 (d) % 20,000 P, Qand R sharing profits in the ratio 3:2:1, decided to share future profit and losses in the ratio of 1:2:3 with effect from 1" April, 2024. An extract of their Balance Sheet as at 31% March, 2024 [ Liabilities zg Assets z Workmen Compensation Fund 40,000 If a claim of workmen compensation is estimated at = 16,000 R’s Account will be credited by : (®) 10,000 (b) 8,000 he (©) 6,000 (4) %4,000 on A, B and‘C are partners in a firm, They share profits in the ratio 5:3:2. B Tetires, his share is taken by A and C in equal ratio. New profit-sharing will be : 1 (@) 6:4 (b) 5:2 © 13:7 @ 7:3 If total Assets are € 3,50,000; total liabilities € 125,000; amount realised on sale of assets is % 3,85,000 and payment of liabilities = 1,50,000; profit or loss on realization will be : (a) Gain 10,000 (b) Loss = 12,000 (©) Gain 12,000 (d) Loss ® 10,00021. 23. Amar Ltd. purchased following assets and liabilities from;Akshat Ltd. for a purchase consideration of % 18,00,000, According to purchase agreement, purchase consideration is paid by issuing equity share of & 100 each at 20% premium. Machinery & 12,00,000; Furniture 7 5,00,000; Land and Building 7 5,00,000; Sundry Creditor € 2,00,000. Pass necessary journal entries in the books of Amar Ltd. 3 From the following information, calculate the value of goodwill on the basis of 3 years purchase of average profit of last four years. Year Profit 2024 % 60,000 2023 % a 70,000 (including loss on sale of furniture 7 20,000) 2022 % 80,000 (including over valuation of closing stock = 10,000) 2021 = 40,000 OR Samir and Rakesh were partners in a firm sharing profits and losses in the ratio of 3:2 their books showed that the capital employed on 31% March, 2024, was = 10,00,000. The average profits eared by the firm were & 1,00,000. Calculate the value of goodwill on the basis of 4 years purchase of super profits assuming the normal rate of return is 8%. Ram, Naresh and Sunny were partners sharing profits in 3:2:1. The firm closes its books on 31" March every year. On 1" October, 2023, Naresh died. His share of profit till the date of death is to be calculated on the basis of current rate of profit on turnover. Profits and turnover for the year ended 31" March, 2023 were % 80,000 and % 4,00,000 1" April to 30" September, 2023 were @ 1, 50,000. Sales g is increased by 5%. Pass necessary journal 3 tespectively. Turnover from showed a declining trend but profit earnin| entry along with working notes.24. 6. Rajul, Nru and Sujata were partners showing profits and losses in the ratio 3:2:1. From 1" April, 2024, they decided to share profits equally. On that date, there was a balance of % 2,00,000 in General Reserve; % 1,80,000 in contingency reserve and 2 1,40,000 advertisement suspense account. Pass single adjustment entry for the above on account of change in profit-sharing ratio. Show your working clearly. 3 Anjum, Tanzin and Raksha were partners in a firm sharing profits in the ratio 2:2:1. ‘According to the partnership agreement, Raksha was guaranteed an amount of % 60,000 as her share of profit. The net profit for the year ended 31 March, 2024 amounting to % 2,00,000. Prepare Profit and Loss Appropriation Account for the year ended 31% March, 2024. 3 OR Meenu and Tinu are partners sharing profits in the ratio 3:1. They have capital % 5,00,000 and & 3,00,000 respectively. According to the partnership deed, interest on capital is to be allowed @ 5% p.a. The net profit for the year ended 3 1“ March, 2024 is = 20,000. Prepare Profit and Loss Appropriation Account. Show your working clearly. T and M were partners sharing profits and losses in the ratio 5:4. They admitted Z into partnership for 1/4 share. At the time of admission of Z, give journal entries for the following: (A) Machinery has been reduced by 30% (Book Value 7 1,80,000) (B) Furniture has been reduced by 60% (Book Value = 3,00,000) (C) Plant has been valued at 120% of book value (Book Value ¥ 2,30,000) Pass necessary journal entries in the following cases on dissolution of a firm: (A) Bank loan % 84,000 was paid off Realisation expenses amounted to % 34,000, % 14,000 were to be born by the firm (B) and the balance by Ravi, a partner. The expenses were paid by Ravi (©) __ Debtors Z 30,000, became insolvent only 70% could be realised (D) Jayanti, a partner. agreed to pay off her husband loan of % 50,000 at 4 discount of 5%.28, Aakash Ltd. was registered with an authorized capital of % 60,00,000 divided into equity 30. shares of @ 10 each, Out of this, 80% shares were offered for public subscription, which was fully subscribed. All calls were made and duly received except the second and final call of 2 per share on 2000 shares held by Roja. There shares were forfeited. Prepare Balance Sheet and Notes to Accounts, showing share capital as per Schedule III of Companies Act, 2013. 4 OR Write any four uses of securities premium account as per Sec. 52(2) of Companies Act, 2013. The partners of a firm, Ashu, Bhola and Ridhi distributed the profits % 90,000 for the year ended 31" March, 2024 in 3:2:1 without providing for the following adjustments: (i) Ashu, Bhola were entitled to a salary of % 1500 p.m. (i) _ Interest on drawing % 1800, 1500 and & 1200 respectively. Pass necessary journal entry for the above adjustments in the books of the firm. Show your working clearly. 4 Anita and Raju are partners and their capital on 1* April, 2023 % 2,00,000 and & 3,00,000 Tespectively. It was decided that : (i) Interest on capital @ 5% p.a. (i) Raju would get a salary of & 10,000 p.m. (iii) Anita would get commission @ 5% of net profit after charging such commission, interest on capital and salary mh (iv) _ 10% of divisible profit would be transferred to General Reserve. Net Profit for the . year ended 31* March, 2024 6,00,000 before making any above adjustment.» Prepare Profit and Loss Appropriation Account and Capital Account of partners’. 6Pragati Ltd. forfeited 400 equity shares of % 10 each for non-payment of final call of & 3 per share. Out of the forfeited shares 80% shares were reissued at a premium of % 2 per share. Pass necessary journal entries and prepare share forfeited account. 6 Ajay, Vijay and Sanjay were partners in a firm sharing profits and losses in the ratio 2:1:2. Their Balance Sheet as at 31% March, 2023 was follows : Liabilities gz Assets z Creditors 60,000 | Cash 30,000 General Reserve 50,000 | Debtor 80,000 Profit & Loss (2022-23) 40,000 | Investment 90,000 Capital : Land 1,80,000 ‘Ajay 1,10,000 Plant 70,000 Vijay 70,000 ‘Advertisement Suspense A/c 30,000 Sanjay 150,000 | 3,30,000 4,80,000 4,80,000 Sanjay died on 31" Dec., 2023. According to partnership deed, his legal representative is entitled to the following : “@ Balance in his capital A/c ¢ ‘ (i) Share or profit upto the date of death to be calculated on the basis of last year profit..d on the basis of three years purchase of average profits (iii) Share of goodwill calculate % 50,000; 2019-20 - of last four years. Profits 2021-22 - % 60,000; 2020-21 - % 80,000. (iv) _ Interest on capital @ 9% p.a. (v) His drawing upto date of death % 3,500 p.m. Prepare Sanjay’s Capital A/c to be rendered to his legal representative. 6 Shri Ltd. invited application for 10,000 shares of % 100 each at a premium of % 10 each payable as follows: 250 on application 35 on allotment (including premium) and %25 on call Applications for 15,000 shares were received. Applications for 2500 shares didn’t get any allotment and their money refunded. Pro-rata allotment made to remaining applicants. Mr. Aakash was allotted 400 shares. He failed to pay amount due on allotment and call money. Company forfeited his shares and subsequently reissued half of his shares at 2105 per share. - Pass journal entries in the books of the company. i OR Fab. Ltd. invited applications for issuing 1,00,000 equity shares of = 10 each at 20% premium. Amount payable as under : Application and allotment ® 5 per share (including premium % 2) First call - ¥ 3 per share Second and final call - 4 per share :Applications for 1,50,000 shares were received and Pro-ratayallotment was made to all applications. Excess applications money was adjusted towards due on calls. Lily, a shareholder applied for 900 shares didn’t pay first call. His shares were forfeited. Second and final call was not yet made. Half of forfeited shares reissued at % 8 per share fully paid. Journalise the above transactions by opening call-in-Arrears and calls-in-Advance Account whenever necessary. Divya and Ekta were partners in a firm sharing profits in the ratio of 3:1. On 31% March, 2024 they admitted Sona as a new partner for 1/4 share in profits of the firm. Their Balance Sheet on that date was as follows: Balance Sheet Liabilities z Assets z Capital’s Land and Building 5,00,000 Divya 10,00,000 Machinery 6,00,000 Ekta 7,00,000 | 17,00,000 | Stock 1,50,000 General Reserve 3,20,000 | Debtors 4,00,000 Creditors 5,40,000 | Less : Provision 30,000 | —3,70,000 Investment 5,00,000 Cash 4,40,000 25,60,000 25,60,000ill brit it gona will bring % 4,00,000 as her capital and her share of goodwill in cash. It was agreed that : @ Goodwill of the firm valued at % 2,40,000 (i Land and Building were valued at & 7,12,000 (iii) Provision for doubtful debts was found to be increases by € 8,000 @v) ) opening current accounts. Prepare Revaluation Account and Partner’s Capital Account. OR A liability for = 20,000 included in creditors was not likely to arise. The capitals of Divya and Ekta will be adjusted on the basis of Sonu’s capital by X, Y and Z were in partnership sharing profits in the ratio 3:2:1. On 1* April, 2024, Balance Sheet of the firm stood as follows: Balance Sheet Liabilities z Assets z Creditors 30,000 | Cash 15,000 Capitals : Debtor 16,000 x 78,750 Less: Provision 13,000 14,700 iG 70,000 Stock 25,300 vi 1.250 | 2,10,000 | Machinery 65,000 Land & Building 1,20,000 2,40,000 2,40,000Zi; retires on the above data, and new profit sharing ratio between X and Y will be 1:1 following of terms were agreed : Land and Building reduced by 10% Out of insurance premium paid during the ‘year % 5,000 be carried forward as (i) (ii) "unexpired. (iii) Provision for doubtful debt is not longer required (iv) Goodwill of the firm be valued at % 54,000 in-their new profit sharing (vy) X and Y decided that their capitals will be adjusted "ratio, by bringing in or by paying cash to partners. Z’s Alc will be transferred to his loan account. a Pass necessary journal entries.