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SAMPLE.P A
SAMPLE PAPER- 9
me Allowed o0 Minutes

Maximu Wats
PART I
Section - A

nstructions
From question number I to 18, attempt any 15 questions.

ase Based MCQs:

P. and R are partners in a fim
sharing profits in the ratio of 3 3:2.From
:
2021, they decided to share profits equally. On that date following balancesa
their books: appear

Workmen Compensation Reserve 72,000

Investment Fluctuation Reserve 30,000
Investments (at cost) 6,00,000
Based on the above information you are required to answer the following alteme
questions:

Q.1. If a Claim on account of Workmen's Compensation is estimated at R48,00, the:

respect of Workmen Compensation
(A) CreditP, Q and R by 8,000 each
(B) Debit P, Q and R by T8,000 each
C) Debit R by 72,000 and Credit P and Q by R1,000 each
(D) Credit P by 9,000, O by T9,000 and R by 76,000
Q.2. Ifinvestments are valued at 74,50,000, then in respect ofinvestments
(A) Debit P, Q and R by R50,000 each
(B) Debit P. Q and R by T40,000 each
(C) Debit P by R45,000; Q by 45,000 and R by R30,000
(D) Debit P by R56,250; Q by R56,250 and R by 37,500

Q.3. Ifgoodwill ofthe fim is valued at R2,40,000, then in respect of gooawu

(A) Credit P by 90,000; Q by R90,000 and R by R60,000
(B) Credit P, Q and R by R80,000 each
(C) Debit R by 20,000 and CreditP and Q by 710,000 each
(D) Debit P and Q by R10,000 each and Credit R by R20,000
then
PAPER
177
Dcbit P by27,000; O by 727,000 and R by ?18,000

R) Debit P. O andR by R24,000 cach

CDebit R by Ro,000 and C redit P and D by 73,000 each

1)Debi P'and O by 3,000 each and Credit R by 76,000

when shares are torteited, share Capilal Account is debited with

(A) Paid-up
value
of Shares (B) Called-up Share Capital
(Face) value of Shares (D) Market value of Shares
(C) Nominal
Children Toys Lid. forfeited 1,000 shares of R10 cach fully called up for of
allotment money of R2 per share, first call of R2 per share and final call of ?i per share
non-payment
400 of these shares were re-1SSued as fully paid up and amount transferred
reserve was I,200. Shares were reissued for .
to Capital
(A) 73,200 (B) 2,000
(C)4,000 (D) 7 800

. Aishwarya Ltd. forfeited 5,000 shares of R10 each fully called up for non-pay ment of final
call of 73 per share. 3,000 of these shares were reissued at 8 per share, fully paid up
What is the net balance in Share Forfeiture Account?
(A) 15,000 (B) R14,000
(C)29,000 (D) T10,000
8. When is the Partnership Act enforced?
(A) Where there is a partnership deed but there are differences of opinion between th
partners
(B) When capital contribution by the partner varies
(C) When there is no partnership deed
(D) When the partner's salary and interest on capital are not incorporated in t
partnership deed
.9. In the absence of partnership deed, the following rule will apply:
(A) No interest Loan
on
by Partner
(B) No
interest on Capital
C) Profit sharing in
Capital Ratio
(D) 6% p.a. interest on
drawings
0 Pariks and
KSha Vipasa contribute 5,00,000 and 73,00,000 respectively in a partners=
w a y of capital on which they agree to allow interest @ 8% p.a. Their protit or I
r a t i o is 3 2.The profit at the end of the year was R 14,000 before allowing inte
loss nere is a clear agreement that interest on capital will be paid even in cas
OS, then Vipasa's share of profit/loss will be
(A) Profit 730,000
(B) Profit 20,000
(C) Loss 730,000
(D) Loss R20,000
 2020, Ist
SAMPIE PAa
s128
on Ist April
2020, Ist July
o n drawina
Octobe 20/20
draws 10,000 cach March,
2021 nterest
. . Apartner ended.Ist

car
January 2021
Forthe
(13) 2,000
will b
A) R2.700 (D) 74,800

C)1,600 1osses in the ratio of? .

in a firm sharng pronts and 5:3:2.n

Q. 12. 4. B and C are partners prolil-stharing ratio to
2021. they decided to
changetheir sheet and
balance sheet and noparthers,
April appeared in the
Profit & Loss
Alc R60,000
balance of for it.
to pass an adjusting entry reflect correct treatment for the above t
undermentioned options reatmen?
Which ofthe debited by R6,000 and B's capital account will
ill be credtes
account will be
(A) C's capital
by R6,000.
account will be debited by O0,000 and A's capital account credfit
(B) B's capital
760,000.

(C) B's capital account will be credited by *6,000 and A's capital account debie
ited
76,000.
(D) B's capital account will be debited by R6,000 and A's capital account credited

T6,000.
Q. 13. A company issued 20,000 equity shares of R10 each at par payable as under:
On application 3; on allotment 4; on first call 2 and on final call I per share.
Applications were received for 50,000 shares. Allotment was made pro-rata. How mut
amount will be received in cash on allotment?
(A) R10,000 (B) R80,000
(C) Nil (D) 790,000
Q.14. A Ltd. forfeited 3,000 shares of 7100 each, 75 called-up, issued at 10%premu
paid at the time of allotment) for non-payment of first call of R20 per share. Outo
1,000 shares were re-issued as 75 paid-up for R72 per share.
Amount transferred to
Capital Reserve will be
(A) R55,000 (B) 762,000
(C) R52,000
(D) 27,00o
Q. 15. Luxmi Ltd. issued a
prospectus inviting applications for 5,00,000 shares o
premium of R25 per share, payable as follows:
On Application 7 8
On Allotment (including 74 premium)
R12 (including R7
On First Call
R10 (including 8 premium)
On Second & Final
Call premium)
A
Balance Amount andhissh
shareholder holding 300
shares failed to pay the
were forfeited after allotment and ine
will be
the first call. In the
entry for forfeiture of shares, capital
debited with:
 sP 127
r PA/ER
(B) 76,000
(D) 74,500
( A ) R 3 , 3 0 0

C)O.0mO
rBuilding
Buildi of R20,00,000 and Machinery of 75,00,000 and liabilities of
over
Ltd Lid. paid the purchase consideration by issuing 10,000 Fquity
t o 0 k

16.T
to.
T o , 0 0 , 0 0 0

100 cach at
at aa premium ot T0% and RI1,00,000 by Bank Draft. Purchase
T00
cach
of
Shares
C o n s i d e r a t i o n
will be:
(B) 25,00,000
(A) 2 2 . 0 0 , 0 0 0

C)19,00,000
(D) 21,00,000
of a tirm valued
at 2 years purcnase average profits of the last 3 years was
ot

Goodwill
17. Profits of the tirm tor tne last 3 years were 65,000; 745,000 and . .*******
.1.20.000. (B) * 70,000
( A ) 6 0 , 0 0 0

C)i.80,000
(D) 1,30,000
partners. B draws a fixed amount at the end of every month. Interest on

.18. and B are

B's drawings amounts to
AT the end or the year interest on
2wings is charged @10% p.a.
R....
74.290. Drawings
of
B were ***********

(A) 6,600 p.m. (B) 7,800 p.m.

C) 7.150 p.m. (D) 3,575 p.m.

PART

Section - B

Istructions :
>From question number 19 to 36, attempt any 15 questions.

A and B and losses in 3 :2. They admit C for 1/5 th share. In

sharing profits
. 19. are partners
future the ratio berween A and B would be 2:1. New profit sharing ratio will be :
(A) 12:8:5 (B) 8: 12:5
(C) 8:4:3 (D) 4:8:3
20. Apurva and Archita are partners. Namita was manager who received a salary of 1,10,00
such
Pyear n addition to a commission of 10% on net profits before charging
commission. Profit for the year is 4,40,000 after charging salary. Namita's commission
will be
(A) R50,000 (B) 755,000
C) 740,000 (D) 744,000
21.
Kani and Sakhi are partners with capitals of 74,00,000 and 1,00,000 respectively, They
are e to salary ot
capitals @ 10% p.a. In addition, Rani entitledher office
to interest on their is
24 of by
month and Sakhi is entitled to rent of 75,000 per month for use
thefi will be
for the year was 2,00,000. Rani's share of protit
746,000Profit
(A) 3A (B) ? 21,000
C) 51,00 (D) 71,00,000
 SP-1.130

SAMPLE P
Q.22. Under which method
(A) Super Profit method
of valuation of goodwill, normal rate of
return is not
(B) Capitalisation method
not considered PAPER-
(C) Average Profit method (D) None of the above
Q.23. X Lid. issued a
prospectus inviting applications for
6,00,000 shares of
premium of R20 per share. payable as follows 50 each a
On Application 10 (including 75
On Allotment R15 (including R6
premium)
On First Call 20
premium)
On Second & Final Call
(including R7
premium)
Balance Amount
A shareholder holding 1,000 shares failed to
pay the allotment and first call
shares were forfeited after the first call. In the money and
Premium Reserve Account will be debited entry for forfeiture of
with shares, Securities
(A) 2,000
(C) 15,000
(B) T20,000
(D) R13,000
Q. 24. New India Ltd. forfeited 500
shares of R100 each, R75
(to be paid at the time of called-up, issued
non-payment of allotment money of10%
at
for allotment) premium
(including premium) and first call of 20 T30 per share
share. Out of these, 200
re-issued as
fully paid-up for <70 per share. per shares were
Amount transferred to
(A) R6,000
Capital Reserve will be :
(C) R1,000 (B) 75,000
Q.25. Which of the (D) 2,000
following is correct about Reserve
(A) It be used to write off
can Capital'
(B) It can be used to issue Capital losses
fully
C) It can be Called up at the paid bonus shares
time of Winding
(D) It can be used to up of the Company
Q. 26. Priti, Revti and
buy back of its own shares
Shristhi are partners in a
Accounts on Ist April, firm sharing profits in
2020,
stood
during the financial year 2020-21 at
76,00,000 each. Each
3:2:. 50 0
withare
partner
As per the
provisions of their partnership deed
(a) Interest :
on
Capital was to be
allowed @5% per annum.
(6) Interest on
drawings was to be charged @8%
The net profit for
the year ended per annum.
parties
without providing for the 31st March 2021, was divided st the

In the
terms of the deed. among
rectifying entry
(A) Cr. Priti R14,000 and Dr.
(B) Dr. Priti R14,000 and Cr. Shristhi 14,000
(C) Cr. Priti R13,000 and Shristhi 14,000
Dr. Shristhi
(D) Dr. Priti R13,000 and
Cr. Shristhi
713,0000
713,000
 No

SP-131

PIFP'AIFR

were partners sharing profits

in the ratio 2:1. Esha withdrew
of 2:
a and
and Ruchi
R u
month. Interest on drawings o
and Kavya withdrew R7,500 every
KanNa
Es ha . 0 every
silent about interest on drawings
5 ,0 0 month

whereasthe partnership deed was

was
charged.
char
6 o p.a
a d j u s t m e n t
entry
In the
R1,8O0 and Dr. Ruchi ?1,800
Kavya
(A) Cr. Ri,800 and Cr. Ruchi
71,800
Dr. Kavy a 900
(B) 900 and Dr. Ruchi ?
Kavya ?
C) Cr. Cr. Ruchi F 900
Dr. Kavya 900 and
(D)
5 : 3 : 2 ratio. They decided to share
in a irm sharing profits in
4. B and Cwere
partners
purpose the goodwill of the firm was valued at
9

the future profits in 2 : 3 : 5 . For this Loss Account amounting to ?1,00,000

balance of Protit &
There was a Credit the treatment of goodwill and
2.00,000. distribute. In adjustment entry for
not want to
which they do sharing ratio :

loss due to change in the profit

Profit&
Cr. A by R60,000; Dr. C by T60,000
(A) C by T1,50,000
F1,50,000; Dr.
(B) Cr. A by
790,000; Dr. C by 790,000
(C) Cr. A by
90,000; Cr. C by 790,000
(D) Dr. A by
Sheet
in the ratio 4 : 3 2. Their Balance
partners in a firm sharing profits
.29. X, Y'and are Z Debit balance of Profit & Loss A/c 1,35,000. From
1-4-2021
showed a to the above
as at 31-3-2021
In the necessary journal entry to give effect
they will share profits equally. the Profit & Loss
Account
when X, Yand Z decided not to close
arrangement
Dr. Y by 745,000; Dr. Z by R30,000
(A) Dr. Xby F60,000;
Dr. Z by R45,000
(B) Dr. Xby R45,000; Dr. Yby R45,000;
(C) Dr. Xby 715,000; Cr. Z by R15,000
(D) Cr. Xby 715,000; Dr. Z by 15,000
other labelled as

. S0. below are two statements, one labelled as Assertion (A) and the
Given
Reason (R):
Assertion (A)
Each partner is an agent of the firm.

Reason (R)
for the firm.
partner can make purchases and sales of goods
following is correct?
Context of the above two statements, which of the
Codes:
D o t h (A) and (R) are correct and (R) is the correct reason of (A

the correct reason or(AJ.

(C A) and (R) are correct but (R) is not
(C) Only (R) is correc.
(O Both (A) and (R) are
wrong
ni

SAMPIE PAPER
as Assertion
(A nd the other
are
two
s t a t e m e n t s ,
one
labelled

labelled
below
Given
0. 31. Reason (R)

Assertion (A) partners

are entitled
to 6% p.a. interest on
pD.a
their loan to te
agreement,
of an
absence
In the
fimm.
case of profits in thef
firm
Reason (R) will be paid only in
to the firm
Interest on partner's
loan
w h i c h of the following
is core
TTect?
statements,
above two
content of the
In the

Codes: and (R) correctly

explains (A).
both are correct
(R)
(A) (A) and does not correctly explain (A).
correct but (R)
and (R) are
(B) Both (A)
incorrect.
(C) Both (A) and (R)
are

incorrect.
c o r r e c t but (R) is
(D) (A) is
one labelled as Assertion (A) and the other labelied as
are two statements,
Q.32. Given below
Reason (R):
Assertion (A)
the ratio of sacrifice is equal to
In of admission of a partner, unless otherwise stated,
case

old profit sharing ratio.

Reason (R)
based on ew
Hidden goodwill at the time of admission of a partner is the total capital
partner's share minus all partner's capital.
In the context of the above two statements, which of the following is corect?

Codes
(A) Both (A) and (R) anre correct and (R) is the correct reason ot (A)
(B) Both (A) and (R) are correct but (R) is not the correct reason of A):
(C) Only(R) is corect.
(D) Both(A) and (R) are
wrong.
Q.33. Z Lud. invitsd annlinmtntiams
 SP113%

PLEP A P E R
invited applications for issuing 2,00,000 cquity shares of ?i0 each at a
FabriCs | td. inv

ine Ihe amount was payable as follows

of I 5 per share. R5 per share (including 73 premium)
prem On Application
R8 per share (including ?5 premium)
On Allotent
R6 per share (including 74 premium)
On lirst Call
and Final Call
Balance Amount
On Second
500 shares, did not pay the irst call money and her shares
Gunjan, a
shareholder holding
shareholde

torfeited after the first call.

immediately
were
Account will be Credited by:
Share Forfeited
(B) 2,500
(A) R6,500
(D) R3,000
(C)3.500
one labelled as Assertion (A) and the other labelled as
below are two statements,
35. Given
Reason (R)
Assertion (A)
Dividend on preference shares is fixed.

Reason (R)
have a right to receive dividend before any dividend is paid on
Preference Shareholders
equity shares.

In the context of the above two statements, which of the following is correct?

Codes:
(A) Both (A) and (R) are correct and (R) is the correct reason of (A).
(B) Both (A) and (R) are correct but (R) is not the correct reason of (A).

(C) Only (R) is correct.

(D) Both (A) and (R) are wrong
30. Given below are two statements, one labelled as Assertion (A) and the other labelled as

Reason(R):
Assertion (A)
A Company has a separate legal entity.
Reason (R)
is limited the unpaid value ot their
The liability of the sharcholder's of a Company to

shares
In the context of the above statements, which one of the following is correet?
Codes
B o t h (A) and (R) are true, but (R) is not the correct explanation ot (A).

Both (A) and (R) are true and (R) is the correct explanation of (A).
(C) Both (A) and
(R) are false.
(D) (A)is false, but
(R) is true.