Accounting Model Test Paper - 4 (Answers) | Mock Tests & Past Year Papers for CA Foundation PDF Download

 Page 1


ANSWER S OF MODEL TEST PAPER 4 
FOUNDATION COURSE 
PAPER – 1: ACCOUNTING 
1. (a) (i)  True: Subsidy received from the government for working capital by
a manufacturing concern is a revenue receipt because it has no 
effect on improvement of future capability of business in revenue 
generation. 
(ii) False: If the effect of errors committed cancel out, the errors will
be called compensating errors and the trial balance will agree.
(iii) True: The financial statements must disclose all the relevant and
reliable information in accordance with the Full Disclosure
Principle.
(iv) False: The provisions of the Indian Partnership Act, 1932 shall not
apply to a limited liability partnership.  Limited Liability (LLPs) Act,
2008 is applicable for Limited Liability Partnerships
(v) False: Under the single entry system of bookkeeping, generally
cash book and personal accounts of creditors and debtors are
maintained, and no other ledger is maintained.
(vi) False: Preference share holder can hold both Equity shares and
Preference shares of the company. Any person can hold both kinds
of shares.
(b) Difference between Provision and Contingent liability
Provision Contingent liability 
(1) Provision is a present 
liability of uncertain amount, 
which can be measured 
reliably by using a 
substantial degree of 
estimation. 
A Contingent liability is a possible 
obligation that may or may not 
crystallise depending on the 
occurrence or non-occurrence of 
one or more uncertain future 
events. 
(2) A provision meets the 
recognition criteria. 
A contingent liability fails to meet 
the same. 
(3) Provision is recognized 
when (a) an enterprise has 
a present obligation arising 
from past events; an 
outflow of resources 
embodying economic 
benefits is probable, and (b) 
a reliable estimate can be 
made of the amount of the 
obligation. 
Contingent liability includes 
present obligations that do not 
meet the recognition criteria 
because either it is not probable 
that settlement of those 
obligations will require outflow of 
economic benefits, or the amount 
cannot be reliably estimated. 
(4) If the management 
estimates that it is probable 
If the management estimates, that 
it is less likely that any economic 
528
Page 2


ANSWER S OF MODEL TEST PAPER 4 
FOUNDATION COURSE 
PAPER – 1: ACCOUNTING 
1. (a) (i)  True: Subsidy received from the government for working capital by
a manufacturing concern is a revenue receipt because it has no 
effect on improvement of future capability of business in revenue 
generation. 
(ii) False: If the effect of errors committed cancel out, the errors will
be called compensating errors and the trial balance will agree.
(iii) True: The financial statements must disclose all the relevant and
reliable information in accordance with the Full Disclosure
Principle.
(iv) False: The provisions of the Indian Partnership Act, 1932 shall not
apply to a limited liability partnership.  Limited Liability (LLPs) Act,
2008 is applicable for Limited Liability Partnerships
(v) False: Under the single entry system of bookkeeping, generally
cash book and personal accounts of creditors and debtors are
maintained, and no other ledger is maintained.
(vi) False: Preference share holder can hold both Equity shares and
Preference shares of the company. Any person can hold both kinds
of shares.
(b) Difference between Provision and Contingent liability
Provision Contingent liability 
(1) Provision is a present 
liability of uncertain amount, 
which can be measured 
reliably by using a 
substantial degree of 
estimation. 
A Contingent liability is a possible 
obligation that may or may not 
crystallise depending on the 
occurrence or non-occurrence of 
one or more uncertain future 
events. 
(2) A provision meets the 
recognition criteria. 
A contingent liability fails to meet 
the same. 
(3) Provision is recognized 
when (a) an enterprise has 
a present obligation arising 
from past events; an 
outflow of resources 
embodying economic 
benefits is probable, and (b) 
a reliable estimate can be 
made of the amount of the 
obligation. 
Contingent liability includes 
present obligations that do not 
meet the recognition criteria 
because either it is not probable 
that settlement of those 
obligations will require outflow of 
economic benefits, or the amount 
cannot be reliably estimated. 
(4) If the management 
estimates that it is probable 
If the management estimates, that 
it is less likely that any economic 
528
that the settlement of an 
obligation will result in 
outflow of economic 
benefits, it recognises a 
provision in the balance 
sheet. 
benefit will outflow from the firm to 
settle the obligation, it discloses 
the obligation as a contingent 
liability. 
(c) 
S. 
No. 
Debit 
(`) 
Credit 
(`) 
1 Commission A/c Dr. 13,500 
To Interest Received 13,500 
(Correcting wrong entry of interest received 
into commission account) 
2 M/s Kamal Traders A/c Dr. 
         To Suspense A/c 
630 
630 
(Being credit sale of ` 5,920 posted as ` 
5,290 i.e. debiting M/s Kamal Traders A/c 
less by 630, now rectified) 
3 Drawing A/c Dr. 44,000 
To Machinery A/c 44,000 
(Correction of wrong debit to machinery 
account for purchase of air-conditioner for 
personal use) 
4 Return Inward A/c Dr. 20,000 
To Debtors (Personal) A/c 20,000 
(Correction of omission to record return of 
goods by customers) 
2. (a) In the books of Firm 
Machinery Account 
` ` 
1.1.2020 To Bank A/c 37,000 31.12.2020 By Depreciation 
A/c 
4,000 
To Bank A/c 
(overhauling 
charges) 
3,000 
_______ 
31.12.2020 By Balance c/d 36,000 
_______ 
40,000 40,000 
1.1.2021 To Balance b/d 36,000 31.12.2021 By Depreciation 
A/c 
(` 5,400 + 
` 750) 
6,150 
529
Page 3


ANSWER S OF MODEL TEST PAPER 4 
FOUNDATION COURSE 
PAPER – 1: ACCOUNTING 
1. (a) (i)  True: Subsidy received from the government for working capital by
a manufacturing concern is a revenue receipt because it has no 
effect on improvement of future capability of business in revenue 
generation. 
(ii) False: If the effect of errors committed cancel out, the errors will
be called compensating errors and the trial balance will agree.
(iii) True: The financial statements must disclose all the relevant and
reliable information in accordance with the Full Disclosure
Principle.
(iv) False: The provisions of the Indian Partnership Act, 1932 shall not
apply to a limited liability partnership.  Limited Liability (LLPs) Act,
2008 is applicable for Limited Liability Partnerships
(v) False: Under the single entry system of bookkeeping, generally
cash book and personal accounts of creditors and debtors are
maintained, and no other ledger is maintained.
(vi) False: Preference share holder can hold both Equity shares and
Preference shares of the company. Any person can hold both kinds
of shares.
(b) Difference between Provision and Contingent liability
Provision Contingent liability 
(1) Provision is a present 
liability of uncertain amount, 
which can be measured 
reliably by using a 
substantial degree of 
estimation. 
A Contingent liability is a possible 
obligation that may or may not 
crystallise depending on the 
occurrence or non-occurrence of 
one or more uncertain future 
events. 
(2) A provision meets the 
recognition criteria. 
A contingent liability fails to meet 
the same. 
(3) Provision is recognized 
when (a) an enterprise has 
a present obligation arising 
from past events; an 
outflow of resources 
embodying economic 
benefits is probable, and (b) 
a reliable estimate can be 
made of the amount of the 
obligation. 
Contingent liability includes 
present obligations that do not 
meet the recognition criteria 
because either it is not probable 
that settlement of those 
obligations will require outflow of 
economic benefits, or the amount 
cannot be reliably estimated. 
(4) If the management 
estimates that it is probable 
If the management estimates, that 
it is less likely that any economic 
528
that the settlement of an 
obligation will result in 
outflow of economic 
benefits, it recognises a 
provision in the balance 
sheet. 
benefit will outflow from the firm to 
settle the obligation, it discloses 
the obligation as a contingent 
liability. 
(c) 
S. 
No. 
Debit 
(`) 
Credit 
(`) 
1 Commission A/c Dr. 13,500 
To Interest Received 13,500 
(Correcting wrong entry of interest received 
into commission account) 
2 M/s Kamal Traders A/c Dr. 
         To Suspense A/c 
630 
630 
(Being credit sale of ` 5,920 posted as ` 
5,290 i.e. debiting M/s Kamal Traders A/c 
less by 630, now rectified) 
3 Drawing A/c Dr. 44,000 
To Machinery A/c 44,000 
(Correction of wrong debit to machinery 
account for purchase of air-conditioner for 
personal use) 
4 Return Inward A/c Dr. 20,000 
To Debtors (Personal) A/c 20,000 
(Correction of omission to record return of 
goods by customers) 
2. (a) In the books of Firm 
Machinery Account 
` ` 
1.1.2020 To Bank A/c 37,000 31.12.2020 By Depreciation 
A/c 
4,000 
To Bank A/c 
(overhauling 
charges) 
3,000 
_______ 
31.12.2020 By Balance c/d 36,000 
_______ 
40,000 40,000 
1.1.2021 To Balance b/d 36,000 31.12.2021 By Depreciation 
A/c 
(` 5,400 + 
` 750) 
6,150 
529
1.7.2021 To Bank A/c 10,000 31.12.2021 By Balance c/d 39,850 
_______ (` 30,600 + 
` 9,250) 
_______ 
46,000 46,000 
1.1.2022 To Balance b/d 39,850 1.7.2022 By Bank A/c(sale) 28,000 
1.7.2022 To Bank A/c 25,000 1.7.2022 By Profit and Loss 
A/c 
(Loss on Sale 
– W.N. 1)
305 
31.12.2022 By Depreciation 
A/c 
(` 2,295 +
` 1,388 +
` 1,875) 
5,558 
By Balance c/d 30,987 
_______ (` 7,862 +
` 23,125) 
_______ 
64,850 64,850 
1.1.2023 To Balance b/d 30,987 1.7.2023 By Bank A/c 
(sale) 
2,000 
1.7.2023 By Profit and Loss 
A/c 
(Loss on Sale 
– W.N. 1)
5,272 
31.12.2023 By Depreciation 
A/c 
(` 590 + 
` 3,469) 
4,059 
_______ 31.12.2023 By Balance c/d 19,656 
30,987 30,987 
Working Note: 
Book Value of machines 
Machine Machine Machine 
I II III 
` ` ` 
Cost of all machinery  40,000 10,000 25,000 
(Machinery cost for 2020) 
Depreciation for 2020 4,000 
Written down value as on 31.12.2020 36,000 
Purchase 1.7.2021 (6 months) 10,000 
530
Page 4


ANSWER S OF MODEL TEST PAPER 4 
FOUNDATION COURSE 
PAPER – 1: ACCOUNTING 
1. (a) (i)  True: Subsidy received from the government for working capital by
a manufacturing concern is a revenue receipt because it has no 
effect on improvement of future capability of business in revenue 
generation. 
(ii) False: If the effect of errors committed cancel out, the errors will
be called compensating errors and the trial balance will agree.
(iii) True: The financial statements must disclose all the relevant and
reliable information in accordance with the Full Disclosure
Principle.
(iv) False: The provisions of the Indian Partnership Act, 1932 shall not
apply to a limited liability partnership.  Limited Liability (LLPs) Act,
2008 is applicable for Limited Liability Partnerships
(v) False: Under the single entry system of bookkeeping, generally
cash book and personal accounts of creditors and debtors are
maintained, and no other ledger is maintained.
(vi) False: Preference share holder can hold both Equity shares and
Preference shares of the company. Any person can hold both kinds
of shares.
(b) Difference between Provision and Contingent liability
Provision Contingent liability 
(1) Provision is a present 
liability of uncertain amount, 
which can be measured 
reliably by using a 
substantial degree of 
estimation. 
A Contingent liability is a possible 
obligation that may or may not 
crystallise depending on the 
occurrence or non-occurrence of 
one or more uncertain future 
events. 
(2) A provision meets the 
recognition criteria. 
A contingent liability fails to meet 
the same. 
(3) Provision is recognized 
when (a) an enterprise has 
a present obligation arising 
from past events; an 
outflow of resources 
embodying economic 
benefits is probable, and (b) 
a reliable estimate can be 
made of the amount of the 
obligation. 
Contingent liability includes 
present obligations that do not 
meet the recognition criteria 
because either it is not probable 
that settlement of those 
obligations will require outflow of 
economic benefits, or the amount 
cannot be reliably estimated. 
(4) If the management 
estimates that it is probable 
If the management estimates, that 
it is less likely that any economic 
528
that the settlement of an 
obligation will result in 
outflow of economic 
benefits, it recognises a 
provision in the balance 
sheet. 
benefit will outflow from the firm to 
settle the obligation, it discloses 
the obligation as a contingent 
liability. 
(c) 
S. 
No. 
Debit 
(`) 
Credit 
(`) 
1 Commission A/c Dr. 13,500 
To Interest Received 13,500 
(Correcting wrong entry of interest received 
into commission account) 
2 M/s Kamal Traders A/c Dr. 
         To Suspense A/c 
630 
630 
(Being credit sale of ` 5,920 posted as ` 
5,290 i.e. debiting M/s Kamal Traders A/c 
less by 630, now rectified) 
3 Drawing A/c Dr. 44,000 
To Machinery A/c 44,000 
(Correction of wrong debit to machinery 
account for purchase of air-conditioner for 
personal use) 
4 Return Inward A/c Dr. 20,000 
To Debtors (Personal) A/c 20,000 
(Correction of omission to record return of 
goods by customers) 
2. (a) In the books of Firm 
Machinery Account 
` ` 
1.1.2020 To Bank A/c 37,000 31.12.2020 By Depreciation 
A/c 
4,000 
To Bank A/c 
(overhauling 
charges) 
3,000 
_______ 
31.12.2020 By Balance c/d 36,000 
_______ 
40,000 40,000 
1.1.2021 To Balance b/d 36,000 31.12.2021 By Depreciation 
A/c 
(` 5,400 + 
` 750) 
6,150 
529
1.7.2021 To Bank A/c 10,000 31.12.2021 By Balance c/d 39,850 
_______ (` 30,600 + 
` 9,250) 
_______ 
46,000 46,000 
1.1.2022 To Balance b/d 39,850 1.7.2022 By Bank A/c(sale) 28,000 
1.7.2022 To Bank A/c 25,000 1.7.2022 By Profit and Loss 
A/c 
(Loss on Sale 
– W.N. 1)
305 
31.12.2022 By Depreciation 
A/c 
(` 2,295 +
` 1,388 +
` 1,875) 
5,558 
By Balance c/d 30,987 
_______ (` 7,862 +
` 23,125) 
_______ 
64,850 64,850 
1.1.2023 To Balance b/d 30,987 1.7.2023 By Bank A/c 
(sale) 
2,000 
1.7.2023 By Profit and Loss 
A/c 
(Loss on Sale 
– W.N. 1)
5,272 
31.12.2023 By Depreciation 
A/c 
(` 590 + 
` 3,469) 
4,059 
_______ 31.12.2023 By Balance c/d 19,656 
30,987 30,987 
Working Note: 
Book Value of machines 
Machine Machine Machine 
I II III 
` ` ` 
Cost of all machinery  40,000 10,000 25,000 
(Machinery cost for 2020) 
Depreciation for 2020 4,000 
Written down value as on 31.12.2020 36,000 
Purchase 1.7.2021 (6 months) 10,000 
530
Depreciation for 2021 5,400 750 
Written down value as on 31.12.2021 30,600 9,250 
Depreciation for 6 months (2022) 2,295 
Written down value as on 1.7.2022 28,305 
Sale proceeds 28,000 
Loss on sale 305 
Purchase 1.7.2022  25,000 
Depreciation for 2022  1,388 1,875 
Written down value as on 31.12.2022 7,862 23,125 
Depreciation for 6 months in 2023 590 
Written down value as on 1.7.2023 7,272 
Sale proceeds 2,000 
Loss on sale 5,272 
Depreciation for 2023 3,469 
Written down value as on 31.12.2023 19,656 
(b) Valuation of Physical Stock as at March 31, 2024
`
Stock at cost on 31
st
 March,2023 7,20,000 
Add:  (1)  Under casting of a page total 1,800 
(2) Goods purchased and delivered during
January – March, 2024
` (6,30,000 – 27,000 + 36,000) 6,39,000 
(3) Cost of sales return ` (9,000 – 1,800)  7,200   6,48,000 
13,68,000 
Less:  (1)   Overcasting of a page total ` (54,000 – 
45,000) 
9,000 
(2) Goods sold and dispatched during
January – March, 2024
` (8,10,000 – 45,000 + 36,000) 8,01,000
Less: Profit margin 8,01,000×
2 5
1 2 5
  1,60,200 
6,40,800 (6,49,800) 
Value of stock as on 31st March, 2024  7,18,200 
Note: In the above solution, transfer of ownership is assumed to take 
place at the time of delivery of goods.  If it is assumed that transfer of 
ownership takes place on the date of invoice, then ` 36,000 goods 
delivered in March 2024 for which invoice was received in April, 2024, 
would be treated as purchases of the accounting year 2023-2024 and 
thus excluded.  Similarly, goods dispatched in March, 2024 but invoiced 
in April, 2024 would be excluded and treated as sale of the year 2023-
2024 
531
Page 5


ANSWER S OF MODEL TEST PAPER 4 
FOUNDATION COURSE 
PAPER – 1: ACCOUNTING 
1. (a) (i)  True: Subsidy received from the government for working capital by
a manufacturing concern is a revenue receipt because it has no 
effect on improvement of future capability of business in revenue 
generation. 
(ii) False: If the effect of errors committed cancel out, the errors will
be called compensating errors and the trial balance will agree.
(iii) True: The financial statements must disclose all the relevant and
reliable information in accordance with the Full Disclosure
Principle.
(iv) False: The provisions of the Indian Partnership Act, 1932 shall not
apply to a limited liability partnership.  Limited Liability (LLPs) Act,
2008 is applicable for Limited Liability Partnerships
(v) False: Under the single entry system of bookkeeping, generally
cash book and personal accounts of creditors and debtors are
maintained, and no other ledger is maintained.
(vi) False: Preference share holder can hold both Equity shares and
Preference shares of the company. Any person can hold both kinds
of shares.
(b) Difference between Provision and Contingent liability
Provision Contingent liability 
(1) Provision is a present 
liability of uncertain amount, 
which can be measured 
reliably by using a 
substantial degree of 
estimation. 
A Contingent liability is a possible 
obligation that may or may not 
crystallise depending on the 
occurrence or non-occurrence of 
one or more uncertain future 
events. 
(2) A provision meets the 
recognition criteria. 
A contingent liability fails to meet 
the same. 
(3) Provision is recognized 
when (a) an enterprise has 
a present obligation arising 
from past events; an 
outflow of resources 
embodying economic 
benefits is probable, and (b) 
a reliable estimate can be 
made of the amount of the 
obligation. 
Contingent liability includes 
present obligations that do not 
meet the recognition criteria 
because either it is not probable 
that settlement of those 
obligations will require outflow of 
economic benefits, or the amount 
cannot be reliably estimated. 
(4) If the management 
estimates that it is probable 
If the management estimates, that 
it is less likely that any economic 
528
that the settlement of an 
obligation will result in 
outflow of economic 
benefits, it recognises a 
provision in the balance 
sheet. 
benefit will outflow from the firm to 
settle the obligation, it discloses 
the obligation as a contingent 
liability. 
(c) 
S. 
No. 
Debit 
(`) 
Credit 
(`) 
1 Commission A/c Dr. 13,500 
To Interest Received 13,500 
(Correcting wrong entry of interest received 
into commission account) 
2 M/s Kamal Traders A/c Dr. 
         To Suspense A/c 
630 
630 
(Being credit sale of ` 5,920 posted as ` 
5,290 i.e. debiting M/s Kamal Traders A/c 
less by 630, now rectified) 
3 Drawing A/c Dr. 44,000 
To Machinery A/c 44,000 
(Correction of wrong debit to machinery 
account for purchase of air-conditioner for 
personal use) 
4 Return Inward A/c Dr. 20,000 
To Debtors (Personal) A/c 20,000 
(Correction of omission to record return of 
goods by customers) 
2. (a) In the books of Firm 
Machinery Account 
` ` 
1.1.2020 To Bank A/c 37,000 31.12.2020 By Depreciation 
A/c 
4,000 
To Bank A/c 
(overhauling 
charges) 
3,000 
_______ 
31.12.2020 By Balance c/d 36,000 
_______ 
40,000 40,000 
1.1.2021 To Balance b/d 36,000 31.12.2021 By Depreciation 
A/c 
(` 5,400 + 
` 750) 
6,150 
529
1.7.2021 To Bank A/c 10,000 31.12.2021 By Balance c/d 39,850 
_______ (` 30,600 + 
` 9,250) 
_______ 
46,000 46,000 
1.1.2022 To Balance b/d 39,850 1.7.2022 By Bank A/c(sale) 28,000 
1.7.2022 To Bank A/c 25,000 1.7.2022 By Profit and Loss 
A/c 
(Loss on Sale 
– W.N. 1)
305 
31.12.2022 By Depreciation 
A/c 
(` 2,295 +
` 1,388 +
` 1,875) 
5,558 
By Balance c/d 30,987 
_______ (` 7,862 +
` 23,125) 
_______ 
64,850 64,850 
1.1.2023 To Balance b/d 30,987 1.7.2023 By Bank A/c 
(sale) 
2,000 
1.7.2023 By Profit and Loss 
A/c 
(Loss on Sale 
– W.N. 1)
5,272 
31.12.2023 By Depreciation 
A/c 
(` 590 + 
` 3,469) 
4,059 
_______ 31.12.2023 By Balance c/d 19,656 
30,987 30,987 
Working Note: 
Book Value of machines 
Machine Machine Machine 
I II III 
` ` ` 
Cost of all machinery  40,000 10,000 25,000 
(Machinery cost for 2020) 
Depreciation for 2020 4,000 
Written down value as on 31.12.2020 36,000 
Purchase 1.7.2021 (6 months) 10,000 
530
Depreciation for 2021 5,400 750 
Written down value as on 31.12.2021 30,600 9,250 
Depreciation for 6 months (2022) 2,295 
Written down value as on 1.7.2022 28,305 
Sale proceeds 28,000 
Loss on sale 305 
Purchase 1.7.2022  25,000 
Depreciation for 2022  1,388 1,875 
Written down value as on 31.12.2022 7,862 23,125 
Depreciation for 6 months in 2023 590 
Written down value as on 1.7.2023 7,272 
Sale proceeds 2,000 
Loss on sale 5,272 
Depreciation for 2023 3,469 
Written down value as on 31.12.2023 19,656 
(b) Valuation of Physical Stock as at March 31, 2024
`
Stock at cost on 31
st
 March,2023 7,20,000 
Add:  (1)  Under casting of a page total 1,800 
(2) Goods purchased and delivered during
January – March, 2024
` (6,30,000 – 27,000 + 36,000) 6,39,000 
(3) Cost of sales return ` (9,000 – 1,800)  7,200   6,48,000 
13,68,000 
Less:  (1)   Overcasting of a page total ` (54,000 – 
45,000) 
9,000 
(2) Goods sold and dispatched during
January – March, 2024
` (8,10,000 – 45,000 + 36,000) 8,01,000
Less: Profit margin 8,01,000×
2 5
1 2 5
  1,60,200 
6,40,800 (6,49,800) 
Value of stock as on 31st March, 2024  7,18,200 
Note: In the above solution, transfer of ownership is assumed to take 
place at the time of delivery of goods.  If it is assumed that transfer of 
ownership takes place on the date of invoice, then ` 36,000 goods 
delivered in March 2024 for which invoice was received in April, 2024, 
would be treated as purchases of the accounting year 2023-2024 and 
thus excluded.  Similarly, goods dispatched in March, 2024 but invoiced 
in April, 2024 would be excluded and treated as sale of the year 2023-
2024 
531
3. (a) Income and Expenditure Account 
for the year ended 31
st
 March, 2024 
` ` 
To Medicines consumed By Prescription fees 6,60,000 
Purchases           2,45,000 
Less: Stock on 31.3.24 (95,000) 1,50,000 By Visiting fees 2,50,000 
To Motor car expense 80,000 By Fees from lectures 24,000 
To Wages and salaries 
     (1,05,000 – 30,000) 
75,000 
To Rent for clinic 60,000 
To General charges 49,000 
To Interest on loan 36,000 
To Net Income 4,84,000 ______ 
9,34,000 9,34,000 
Capital Account 
for the year ended 31
st
 March, 2024 
` ` 
To Drawings: By Cash/bank 2,00,000 
Motor car expenses 40,000 By Cash/ bank (pension) 3,00,000 
(one-third of ` 1,20,000) 
Household expenses 
Daughter’s Surgery 
exp. 
1,80,000 
2,15,000 
By Net income from 
practice (derived from 
income and expenditure 
A/c) 
4,84,000 
Wages of domestic 
servants 
30,000 
Household furniture 25,000 
To Balance c/d 4,94,000 _____ 
9,84,000 9,84,000 
(b) Revaluation Account 
` ` 
To Furniture A/c 40,000 By Office equipment A/c 47,000 
To Stock A/c 30,000 By Building A/c 5,00,000 
By Provision for  
To Partners’ capital A/cs: doubtful debts 15,000 
P 2,46,000 
Q 1,64,000 
R     82,000 4,92,000 _______ 
5,62,000 5,62,000 
532