HARISH COMMERCE CLASSES Accountancy Test MM 24

83600-59858 CLASS = +2 TIME 45 MIN

1) As per section 37 of the Indian partnership Act 1932,the executors of a deceased partner would be entitled at their choice to the
interest calculated from the date of death till the date of payment on the final amount due to the partner at …………per annum.
A) 12% B) 10% C) 6% D) 5%
2) Dissolution of partnership between all partners of firm is called ……….
a) dissolution of firm b) dissolution of partnership C) dissolution of firm name D) none of these
3) State two Difference between realisaton and revaluation account .
4) Retiring partner or outgoing partner in case of public notice issue regarding his retirement is liable for
a) Is liable for firms liabilities b) Not liable for any liabilities of firm c) Is liable for obligation incurred before his retirement
d) is liable for obligation incurred brfore and after his retirement
5) A ,B,C,D were partners sharing profits in the ratio 1:2:3:4. D retires and his share was acquired equally by A and B. Goodwill was
valued 3 Years purchase of average profits of last 4 years which were 40,000. General reserve showed a balance of Rs 1,30,000 and
D capital in the balance sheet was 3,00,000 at the time of D retirement. You are required to record necessary journal entries in the
books of the firm and prepare d capital account (4 marks )
6) On 31 march 2015 the balance sheet of Punit,Rahul and Seema was as follows :
LIABILITIES AMT ASSETS AMT
CAPITALS Buildings 40,000
Punit 60,000 Machinery 60,000
Rahul 50,000 Patents 12,000
Seema 30,000 1,40,000 Stock 20,000
cash 42,000
Reserves 20,000
Creditors 14,000
1,74,000 1,74,000
They were sharing profits and loss in 5:3:2
Seema died on 1st October 2015. It was agreed between her executers and the remaining partners that :
a) Goodwill be valued at two years purchase of the average profits of the previous five years ,which were 2010-11 Rs 30,000
2011-12 Rs 26,000, 2012-13 Rs 24,000 ,2013-14 Rs 30,000 and 2014-15 Rs 40,000
c) profits for the year 2015-16 be taken as having been accrued at the same rate as that in the previous year
d) Interst on capital be provided at 10%
e) A sum of 15,000 was paid to her executors immediately
Prepare revaluation account , Seema capital account and her executors account also. (4 marks)

7) Heema and Garima were partners in a firm sharing profits in the ratio of 3:2 . on 31st march, 2015 their balance sheet was as
follows
LIABILITES AMT ASSETS AMT
Creditors 36,000 Bank 40,000
Garima husband loans 60,000 Debtors 76,000
Heema loan 40,000 Stock 2,00,000
Capital : Heema 2,00,000 Furniture 20,000
. Garima 1,00,000 3,00,000 Leasehold premises 1,00,000
4,36,000 4,36,000
On the above date the firm was dissolved . The various assets were realized and liabilities were settled as under ;
a) Garima agreed to pay her husband loan
b) leashold premises realized Rs 1,50,000 and debtors Rs 2000 less.
HARISH COMMERCE CLASSES Accountancy Test MM 24
83600-59858 CLASS = +2 TIME 45 MIN

c) Half the creditors agreed to accept furniture of the firm as full settlement of their claim and remaining half agreed to accept
5%less
d) 50% stock was taken over by heema on cash payment of Rs 90,000 and the remaining stock was sold for Rs 94,000
e) Realisation exp of Rs 10,000 ere paid by garima on behalf of firm
pass necessary journal entries for the dissolution of the firm (4 marks )

8) A, B and C are partners in a firm sharing profits and losses in the ratio 3:2:1. Their balance sheet as at 31 december 2014
LIABILTIES AMT ASSETS AMT
Creditors 30,000 Cash 18,000
Bills payable 16,000 Debtors 25,000
General reserve 12,000 Less provision for doubtful debt (3000) 22,000
Capitals A 40, 000 Stock 18,000
B 40,000 Furniture 30,000
C 30,000 1,10,000 Machinery 70,000
Goodwill 10,000
1,68,000 1,68,000
B retires on 1st January ,2005 on following terms
a) provision for doubtful debts be raised by 1000
b) stock to be depreciated by 10% and furniture by 5%
c) there is an outstanding claim for damages of 1100 and it is to be provided for
d) creditors will be written back by 6,000
e) goodwill of the firm is valued at 22,000 and it should be adjusted through capital transfer.
f) B is paid in full with cash brought in by A and C in such a manner that their capitals are in proportion to the profit sharing
ratio and cash in hand remains at 10,000
Prepare Revaluation account , partners capital accounts and balance sheet of A and C (8 marks)