MODY SCHOOL, LAXMANGARH
HALF YEARLY EXAMINATION 2020-21
CLASS : 12 COMMERCE
SUBJECT: ACCOUNTANCY (055)
TIME: 1 ½ HOUR Max marks: 40
PARTNERSHIP and NON-FOR-PROFIT ORGANISATIONS
1. Show how Building Fund will be dealt with in the financial statements of Delhi Football Association:
Balance of Building Fund Rs. 10,00,000
Donations received for Building Rs. 12,00,000
Expenditure incurred on the Construction of Sports Room Rs. 9,00,000 (1)
2. Match the following: (1)
Group A Group B
(i) Death of a partner (a) Appear in Balance Sheet
(ii) Credit Balance in Revaluation Account (b) Executor's Account
(iii) Reserve Fund for Distribution c) Gain on Revaluation
3. X and Y are partners in a firm not having a Partnership Deed. X spends twice the time that Y devotes to
business. X claims that he should get a salary of Rs. 10,000 per month for his extra time spent. Y does
not want to give any salary. State who is correct and why. (1)
st
4. Ajay, Bhawna and Shreya were partners sharing profits in the ratio of 2:2:1. On 1 July, 2019 Shreya
died. The books of account are closed on 31 st March every year. Sale for the year 2018-19 was Rs.
5,00,000 and that from 1st April to 30th June, 2019 was Rs. 1,40,000. The rate of profit during the past
three years had been 20% on sales which it is to be the basis to calculate Shreya’s share of profit.
Calculate Shreya’s share of profit till the date of her death and pass necessary Journal entry for the
same. (1)
5. Give the Journal entry to distribute ‘Workmen Compensation Reserve’ of Rs. 50,000 at the time of
admission of Z, when there is no claim against it. The firm has two partners X and Y. (1)
6. X, Y and Z are partners sharing profits in the ratio of 3:2:1. Y retired from the firm. New profit-sharing
ratio is decided to be 5:1. For the adjustment of goodwill, accountant has calculated Gaining Ratio as
2:3. Is the accountant correct? (1)
7. Drawings against capital are not considered for calculation of interest on capital. Is it correct? (1)
8. Pass the Journal entry to distribute goodwill of Rs. 1,00,000 brought by Anil, a new partner as his
share, which he gains equally from Samay and Suraj. (1)
9. Profit and Loss Appropriation Account to prepared to give effect to: (1)
(a) Partnership Act, 1932
(b) Partnership Act, 1932 and Partnership Deed.
(c) Partnership Deed
(d) Partnership Deed and other Agreements.
10. Total Capital Employed in firm is Rs. 1,60,000; Normal Rate of Returns 15% and Profit for the year Rs.
2,40,000. Value of goodwill by capitalization method is (1)
(a) Rs. 16,40,000
(b) Rs. 2,40,000
(c) Rs. 14,40,000
(d) Rs. 8,40,000
11. What time period would be considered if equal amount is withdrawn by a partner every month in the
beginning of each month? (1)
(a) 7 months
(b) 6 months
(c) 5 months
(d) 6.5 months
12. Prepare Subscription Account from the information given below to show the amount to be credited to
Income and Expenditure Account of Delhi Tennis Club for the year ended 31 st March, 2019: (3)
1/4/2018 31/3/2019
Subscriptions in Arrear Rs. 6,000 Rs. 5,000
Subscription in Advance Rs. 3,500 Rs. 3,000
Dr. An Extract from Cash Book Cr.
Date Particulars Rs. Date Particulars Rs.
2018 2018
April 1 Balance in Hand 28,000 April 4 Refund of Subscriptions to
2019 members leaving town 500
March 31 Total Subscriptions
Received during the year 62,000
13. L, M and N are partners sharing profits and losses in equal proportion. On 31 st March 2016 , their
balance sheet was as follows: (4)
Liabilities Rs. Assets Rs.
Creditors 58,000 Cash 8,000
Reserve and Surplus 42,000 Debtors 75,000
Capital accounts: Less:PBDD 3,000 72,000
L 2,00,000 Stock 1,80,000
M 1,00,000 Fixed Assets 2,20,000
N 80,000 3,80,000
4,80,000 4,80,000
The partners decided that with effect from 1 st April 2016, they will share profits and losses in the ratio
of 4:2:1. For this purpose goodwill is to be valued at 2 year's purchase of the average profits of the last
four years, which were:
Year ending 31st March 2013 Rs. 20,000 (LOSS)
st
Year ending 31 March 2014 Rs. 48,000 (PROFIT)
st
Year ending 31 March 2015 Rs. 60,000 (PROFIT)
st
Year ending 31 March 2016 Rs. 80,000 (PROFIT)
They further agreed that:
(i) Provision for doubtful debts be increased by Rs. 2,000.
(ii) Stock be appreciated by 20% and fixed assets be depreciated by 10%.
(iii) Creditors be taken at Rs. 49,000.
Partners do not desire to record the revised values of assets and liabilities in the books. They
also desire to leave the reserve and surplus undisturbed.
You are required to give effect to the change in profit sharing ratio by passing a single journal
entry. Show your working clearly.
14. A,B and C were partners. Their capitals were A- Rs. 30,000; B- Rs. 20,000 and C- Rs. 10,000 respectively.
According to the partnership deed, they were entitled to an interest on capital at 5% p.a. In addition, B
was also entitled to draw a salary of Rs. 500 per month. C was entitled to a commission of 5% on the
profits after charging interest on capital, but before charging salary payable to B. Net profit for the
year Rs. 30,000 was distributed in the ratio of capitals without above appropriations. The profit was to
be shared in the ratio of 2:2:1.
Pass the necessary adjustment entry showing the workings clearly. (4)
st
15. X and Y are partners, sharing profits and losses in the ratio of 2:1. On 1 Arpil, 2018, they admit Z for
1/4th share in profits with guaranteed annual profit of Rs. 50,000 p.a. the profit for the year 2018-19
amounted to Rs. 1,52,000.
Pass necessary Journal entry regarding deficiency borne by X and Y and prepare P & L Appropriation
A/c. (4)
16. Young India Club has been established on 1st April, 2018. Following is their Receipts and Payments A/c
for the year ended 31st March, 2019:
Dr. Receipts and Payments a/c for the year ended 31 st March,2019 Cr.
Receipts Rs. Payments Rs.
To Entrance fees 5,000 By maintenance charges 2,440
To Legacies 12,000 By furniture 5,000
To Subscriptions 10,000 By rent 1,000
To Sale of Old Newspapers 1,500 By salary 4,500
To surplus from Annual dinner event 1,500 By honorarium 1,000
To Life membership fees 9,000 By Conveyance 500
By books 2,000
By balance c/d 22,560
39,000 39,000
Additional Information:
(i) Rent Outstanding Rs. 600
(ii) Legacy donation is without any specific use.
(iii) Subscriptions Outstanding for the year ended 31 st March, 2019 were Rs. 500.
(iv) Maintenance charges Rs. 100 were unpaid.
Prepare Income and Expenditure A/c for the year ended 31 st March, 2019 and the Balance
Sheet as on that date. (6)
st
17. P, Q and R were partners in a firm sharing profits in the ratio of 7:2:1. On 1 April, 2019 their B/S was
as follows: (8)
BALANCE SHEET
As on 1st April, 2019
Liabilities Rs. Assets Rs.
Capital A/cs: Land 12,00,000
P 9,00,000 Building 9,00,000
Q 8,40,000 Furniture 3,60,000
R 9,00,000 26,40,000 Stock 6,60,000
General Reserve 3,60,000 Debtors 6,00,000
WCR 5,40,000 Less: PBDD 30,000 5,70,000
Creditors 3,60,000 Cash at Bank 2,10,000
39,00,000 39,00,000
On the above date Q retired.
Following was agreed:
(i) Goodwill of the firm was valued at Rs. 12,00,000.
(ii) Land was to be appreciated by 30% and Building was to be depreciated by Rs. 3,00,000.
(iii) Value of furniture was to be reduced by Rs. 60,000.
(iv) Liability for WCR was determined at Rs. 1,40,000.
(v) Amount payable to Q was transferred to his loan account.
Prepare Revaluation A/c, Partner’s Capital A/c and the Balance Sheet of the new firm.
OR
A and B were partners in a firm sharing profits in ratio of 3:1. They admitted C for ¼ share in
profits. C was to bring Rs. 60,000 for his capital but was not in a position to bring amount of
goodwill. Balance sheet of A and B on 1 st April, 2019, the date on which C was admitted, was as
follows:
Liabilities Rs. Assets Rs.
Capital A/cs: Land & Building 40,000
A 50,000 goodwill 40,000
B 80,000 1,30,000 Plant & Machine 70,000
3,60,000 Stock 30,000
General Reserve 10,000 Debtors 35,000
WCR 40,000 Less: PBDD 1,000 34,000
Creditors 70,000 Investments 26,000
Cash 10,000
2,50,000 2,50,000
Other terms agreed upon were:
(i) Goodwill of the firm was valued at Rs. 24,000.
(ii) Land and Building was valued at Rs. 65,000 and Plant and Machinery at Rs. 60,000.
(iii) PBDD was found in excess by Rs. 400.
(iv) A liability of Rs. 1,200 included in Sundry Creditors was not likely to arise.
(v) Excess or shortfall, if any, to be transferred to Partner’s Current Accounts.
Prepare Revaluation A/c, Partner’s Capital A/c and the Balance Sheet of the new firm. (8)
