Accounts test paper

# Accounts test paper - Notes - CBSE/Schools

 1 Crore+ students have signed up on EduRev. Have you?

1. If average profits of a firm are R 86,000, normal rate of return is 10% and goodwill

at five times of super profits is R 1,30,000, capital employed will be …… 1

2. If the incoming partner brings the amount of goodwill in cash then the same is

distributed among the old partners in their new profit sharing ratio.(True/False,

with reason) 1

3. State any two items of deduction that may have to be made from the amount

payable to a retiring partner. 1

4. A & B are partners in a firm having a capital of R 54,000 and R 36,000 respectively.

They admitted C for 1/3rd share in the profits. C brought proportionate amount of

capital. The capital brought in by C would be: 1

a) R 90,000 b) R 45,000

c) R 5,400 d) R 3,600

5. A & B are partners in a firm. They admit C as a partner with 1/5th share in the

profits of the firm. C brings R 4,00,000 as his share of capital. Calculate the value of

C’s share of Goodwill on the basis of his capital, given that the combined capital of

A & B after all adjustments is R 10,00,000. 1

6. A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st

April, 2019 they decided to admit C. Their new ratio is decided to be equal. Pass the

necessary Journal entry to distribute Investment Fluctuation Reserve of R 60,000 at

the time of C’s admission, when investment appears in the books at R 2,10,000 and

its market value is R 1 ,90,000.

7. A and B are in partnership sharing profits and losses in the ratio of 3 : 2. They

admit C into partnership with 1/5th share which he acquires equally from A and B.

Accountant has calculated new profit sharing ratio as 5 : 3 : 2. 1

Is accountant correct?

8. Premium for Goodwill paid privately by the gaining partner to the sacrificing partner

is not recorded in the books of account of the firm because ………. 1

9. Gaurav the retiring partner is to be paid R 4,50,000 in settlement of his claims. The

continuing partners (Sohan and Mohan) gave him furniture valued at R 80,000,

vehicle of 1,40,000 and 30% of investments and transferred the balance amount of

R 1,88,000 to his loan. Pass the necessary Journal entry for recording the payment

10. X, Y and Z are partners sharing profit equally. On 1st April 2019, they decide to

share profit in the ratio of 3 : 2 : 1. The extract of the Balance Sheet on that date

was as follows: 3

Balance Sheet (an extract)

as at 1st April, 2019

Liabilities R Assets R

Workmen Compensation

Reserve

Investment Fluctuation

Reserve

12,000

18,000

Investment

Profit and Loss A/c

80,000

6,000

(i) Claim on account of workmen compensation was R 9,000.

(ii) Investment was to be recorded at its market value which was considered

R 50,000.

Give necessary journal entries to give effect to change in profit-sharing ratio.

11. X and Y are partners sharing profits and losses in the ratio of 3 : 2. They admit Z

into the partnership, who acquires 1/4th of his share from X and 3/16th share from

Y. Calculate the net profit sharing ratio and sacrificing ratio. 4

12. (a) Kaku purchased Polu’s business on 1st April, 2018. The profits for the last five

years are: 3

31st March, 2014 – R 37,000

31st March, 2015 – R 47,000 (after charging an abnormal loss of theft of R 4,000)

31st March, 2016 – R 53,000 (including an abnormal gain of R 5,000)

31st March, 2017 – R 60,000 (including a profit of lottery R 6,000)

31st March, 2018 – R 70,000 (after charging R 10,000 a loss of furniture destroyed

by fire)

Calculate the value of goodwill on the basis of two years’ purchase of the average

profit of the last five years.

(b) X, Y and Z were partners sharing profits in the ratio of 4 : 3 : 2. X dies on 31st

August, 2018. The sales and profits for the year on 31st March, 2018 were

R2,40,000 and R 30,000 respectively. The sales up to 31st August, 2018 amounted

to R 1,44,000. Calculate X’s share of profit. Pass necessary journal entry. 1

13. Following is the Balance Sheet of X and Y who share profits and losses in the ratio

of 3 : 2 as at 31st March, 2018: 6

Liabilities R Assets R

Sundry Creditors

Reserve

Profit & Loss Account

Capital Accounts:

X 2,70,000

Y 1,60,000

80,000

1,00,000

40,000

4,30,000

6,50,000

Cash at Bank

Debtors

Stock

Machinery

Goodwill

20,000

70,000

1,80,000

3,50,000

30,000

6,50,000

On 1st April 2018, Z is admitted as a new partner. X surrenders 1

3

rd of his share and

Y surrenders 1

4

th of his share in favour of Z. Z brings in R 3,60,000 for his share of

Capital. Pass journal entries for recording goodwill.

OR

Pass Journal entries to record the following transactions on the admission of a new

partner:

i) Stock is undervalued by 10% (Book Value of Stock R 54,000)

ii) Stock is overvalued by 10% (Book Value of Stock R 66,000)

iii) Value of Land & Building is to be increased to R 5,00,000 (Book Value of Stock R

4,00,000)

iv) A debtor whose due to 40,000 was written off as bad debts last year, paid 30,000

in full settlement.

v) A liability for claim, included in creditors for 20,000 is settled at 16,000.

vi) A computer purchased on 1st October 2016 for 40,000 debited to Office Expenses

Account is to be brought into account on 31st march 2018 charging depreciation @

10%p.a. on written down value basis.

14. L, M and N were partners in a firm sharing profits in the ratio of 2 : 2 : 1. Their

Balance Sheet as at 31st March, 2018 was as follows:

Balance Sheet

as at 31st March, 2018

Liabilities R Assets R

Creditors

Bills Payable

Outstanding Expenses

General Reserve

Capital:

L 1,00,000

M 1,20,000

N 1,40,000

60,000

40,000

50,000

1,00,000

3,60,000

6,10,000

Land

Building

Plant

Stock

Debtors

Cash

1,70,000

1,00,000

2,00,000

80,000

50,000

10,000

6,10,000

From 1st April, 2018 the partners decided to share profits in the ratio of 1 : 2 : 3.

For this purpose, it was agreed that:

(i) The goodwill of the firm should be valued at R 1,20,000.

(ii) Land should be revalued at R 2,00,000. Building should be depreciated by 6%.

(iii) Creditors amounting to R 6,000 were not to be paid.

It was decided among the partners that General Reserve has to be distributed

among the partners whereas goodwill and revised values of assets and liabilities are

not be record in the books. 6

You are required to:

(i) Record the necessary journal entries to give effect to the above agreement.

(ii) Prepare the capital accounts of the partners.

(iii) Prepare the balance sheet of the reconstituted firm.

15. A, B and C were equal partners. Their Balance Sheet as at 31st March, 2019 was:

Balance Sheet as at 31st March, 2019

Liabilities R Assets R

Bills Payable

Creditors

General Reserve

Profit and Loss A/C

Capital A/cs:

A 60,000

B 40,000

C 32,000

20,000

40,000

30,000

6,000

1,32,000

Bank

Stock

Furniture

Debtors 45,000

Less: Provision for DoubtfulDebts5,000

Land and Building

20,000

20,000

28,000

40,000

1,20,000

2,28,000 2,28,000

B retired on 1st April, 2019. A and C decided to continue the business as equal

partners on the following terms:

(i) Goodwill of the firm was valued at R 57,600.

(ii) The Provision for Doubtful Debts to be maintained @ 10% on Debtors.

(iii) Land and Building to be increased to R 1,32,000.

(iv) Furniture to be reduced by R 8,000.

(v) Rent Outstanding (not provided for as yet) was R 1,500.

Remaining partners decided to bring adequate amount to pay B and to maintain a

bank balance of R 24,800. They also decided to readjust their capitals as per their

new profit-sharing ratio.

Prepare the necessary Ledger Accounts and the Balance Sheet. 8

The document Accounts test paper - Notes - CBSE/Schools is a part of CBSE/Schools category.
All you need of CBSE/Schools at this link: CBSE/Schools
 Use Code STAYHOME200 and get INR 200 additional OFF

Track your progress, build streaks, highlight & save important lessons and more!

,

,

,

,

,

,

,

,

,

,

,

,

,

,

,

,

,

,

,

,

,

;