SPECIMEN PAPER1(With Solution)

Time 3 Hours] [Maximum Marks

arka 8
1 A ) Write one word/ term/ phrase witich can substitute each of the
following statements:
(1Expenses whiclh are paid before they a r e due.
(2) Excess of total assets over total liabilities of 'Not for Profit' concern.

(3) Liability likely future on happening of certain event.

to arise in
(4) Bills of exchange drawn and accepted without any valuable consideration.
(5)It is damaged software, cracked nearly fully functional.

Ana(1) Prepaid expenses (2) Capital Fund (3) Contingent liability

(4) Accominodation Bill (5) Pirated software

Scheme of Marking: I mark for each correct answer

. 1 (B) Do you agree or disagree with the following statements:
(1) Partner's Current Account always shows debit balance
(2) Purchase of sports equipments is a capital expenditure.
(3) New ratio minus old ratio is equal to sacrifice ratio.
(4) Retiring partner is entitled to his share of goodwill.
(5) Ratio analysis is useful for inter firm comparison.
Ans.(1) Disagree (2) Agree (3) Disagree (4) Agree (5) Agree
Scheme of Marking: 1 mark for each correct answer
Q.1 (C) Answer in one sentence only:
(1) What is fluctuating capital method?
Ans. It is a method of maintaining capital account in which only capital account
partner is opened to record all transactions relating to partners and the balance
this account goes on fluctuating every year.
(2) What is subscription?
Ans. Subscription is a major source ofincome to 'Not for profit' concern and it is paid
members regularly to enjoy the services.
(3) Why is new partner admnitted?
Ans. A new partner is admitted to meet the need of additional capital, managerial an
technical abilities.

(4) What is benefit ratio?

Ans. The ratio which the continuing partners acquire on retirement of partner is cal
as gain ratio/benefit ratio.

(5) Why is Realisation Account opened?

Ans. Realisation Account is opened to know profit or loss on realisation of assets an:
liabilities in case of dissolution of firm.
Scheme of Marking: 1 mark for each correct answer
Q.1 (D) Find odd one out:
(1) Building, Furniture, Machinery, Bills Payable.
(2) School, Hospital, Bank, Club.
(3) Notary Public, Drawer, Drawee, Payee.
Specne
Public issue,
issue, Right Right 1ssue, Reserve
Capital,
Bonus issue.
pubtion A/c, Profit and Loss Suspense A/c,
Reval Deficiency A/c, Executor's Loan A/c
1 ) Bills Payable (2) Bank
(3) Notary Public
(4) Reserve Capital (5) Deficiency A/c
Scheme of Marking: 1 mark for each correct
answer
lance Sheet of Meena and Heena who shared the profits and
The B a l a n
(10)
losses in he tio of 2:l is as under:
Balance Sheet as on 31t March. 2020
Liabilities Amt. ) Assets Amt.)
Leasehold property 20,000
Capital

Meena
1,34,000| Livestock 6,600

Heena
1,20,000 Loose tools 90,200

Creditors
53,800 Stock 86,800

Rent outstanding 10,000 Debtors 48,000

Reserve Fund 7,200 Less: R.D.D. 2,000 46,000

75,400
Bank
3,25,000 3,25,0000

On 1st April, 2020 Seema was

4 partner
admitted as on the following terms:

(11 Seema should bring in R 1,20,000 towards her capital.

is valued at R1,44,000 and Seema agreed to bring her share in the
21 Firm's goodwill
firm's goodwill by a cheque.
doubtful debts should be maintained at 7.5% on debtors.
13) Reserve for
Increase live stock by R4,400 and write off loose tools by 20%.
(4)
(5) Rent outstanding paid 79,040 in full settlement.
Prepare:
Loss Adjustment Account (2) Partner's Capital Account
(1) Profit and
Balance Sheet of the new firm.
13)
In the books of firm
Sol Profit and Loss Adjustment A/c Cr.
Dr.
Particulars Amt. (Amt. ()
Particulars Amt. () Amt.()
1,600 By Live Stock A/c 4,400
To R.D.D. A/c
18,040 By Outstanding Rent A/c 960
To Loose Tools A/c
By Revaluation Loss:
Meena Capital A/c 9,520
Heena Capital A/c 4,760 14,280
19,640 19,640
Partner's Capital Accountts Cr.
Dr.
Meena Heena Seema
Particulars Meena Heena Seema Particulars
To P/L Adj. A/c 9,520 4,760 By Balance b/d 1,34,000 1,20,000
To Balance c/d 1,53,2801,29,640 1,20,000|By Reserve
Fund A/c 4,800 2,400
By Bank A/c -1,20,000
By Goodwill A/c 24,000 12,000
1,62,8001,34,400|1,20.000
1,62,800|1,34,4001,20,000
 M/s. Meena, Heena and Seema
Balance Sheet as on 1st
April, 2020
Liabilities Amt.) Amt. () Assets Amt. R) Amt
Capital Accounts Leasehold Property
Meena
Heena
|1,53,280 Live Stock 6,600 2056
1,29,640| |Add: Appreciation 4,400 11
Seema
|1,20,000 4,02,920Loose Tools 90,200
Creditors 53,800 Less: Depreciation 18,040 721
Stock 868
Debtors 48,000
|Less: R.D.D. 3,600
44 4
|4,56,720|
Bank
2,223
4,567
Scheme of Marking: Profit and Loss Adjustment A/c -2h marks; Partner's Capital
Account-2% marks and Neuw Balance Sheet - 5 marks =Total 10 marks

OR
Q.2 Kale, Lele and Tele are sharing profits and losses as 3:2:1 respectively.
Their Balance Sheet as on 31st March, 2020 was as follows:
Balance Sheet as on 31st March, 2020
Liabilities Amt.) Assets Amt.
Capitals Cash 10,80
Kale 24,000 Debtors 18,0
Lele 18,000 Stock 12,00
Tele 12,000 Plant and Machinery
30,00
Creditors 16,800
70,800 70,80
Tele retires from the business on the above date on the following terms:
(a) Stock and Plant and Machinery to be appreciated by 5% and 10% respectively
(b) Provision for doubtful debts to be created at 5% on debtors.
(c) The provision of t 600 be made in respect of outstanding rent.
(d) Goodwill ofthe firm is valued at 18,000 and the remaining partners decided th
goodwill should be written back.
(e) The amount payable to the retiring partner be transferred to his loan account.
Prepare
(1) Profit and Loss Adjustment Account (2) Partners' Capital Accounts
(3) Balance Sheet of Kale and Lele.
Sol. In the books of firm
Dr. Profit and Loss Adjustment A/c
Particulars Amt. ) Amt. () Particulars Amt. )Amt.
To R.D.D. A/c 900 By Stock A/c bU
To Outstanding Rent A/c 600 By Plant and Machinery 3,00
A/c
To Revaluation Profit:
Kale Capital A/c 1,050
Lele Capital A/c 700

Tele Capital A/c 350 2,100

3,600 36
 Ttners Capit
Kale Lele
Account Cr.
Particulars Tele Particulars KaleLele Tele
10,800 7,200
NnduillA/c

By Balance b/d 24,000 18,000 12,000

1eles Loan A/c
15,350 By Goodwill A/c 9,000 6,000 3,000
alaceb/d 23,250 17,500 By P/L Adj. A/c 1,050 700 350
34,050 24,700 15,350
34,050 24,700 15,350
M/s. Kale and Lele
Balance Sheet as on
01-04-2020
Amt. () Amt. () Amt. () Amt. ()
Liabilities

Assets
Cash 10,800
CapitalAccounts:

23,250
Kale Debtors 18,000

Lele
17,50040,750 Less: R.D.D. 900 17,100
Tele's Loan A/c 15,350 Plant and Machinery 33,000
C r e d i t o r s
16,800 Stock 12,600
0 / s Rent
600
73,500 73,500

Scheme of Marking: Profit and Loss Adjustment A/c - 5 itemsx % mark 2% marks;
Mtner's Capital Account 14 items x 4 mark 3% marks; -

New Balance Sheet-8 ttems x mark =4 marks; = Total 10 marks

Following is the Balance Sheet of Kulkarni, Solkar and Bhave as on
31st March, 2020. They were sharing profits and losses in the ratio of

(10)
Balance Sheet as on 31t March, 2020
Liabilities
Amt.() Assets Amt. ( )
Capitals: Buildings 19,000
Kulkarni 24,000| Machinery 13,500
Solkar 21,500 Furniture 3,000
General Reserve 12,000 Stock 20,500
Kulkarni's Loan 7,500 Debtors 10,000
Creditors 12,500 Bills Receivable
6,000
Bills Payable 7,500 Bank
3,000
Profit and Loss A/c 1,500
Bhave's Capital 8,500
85,000 85,000
On the above date the firm was dissolved and the assets realised as under
(1) Building 7 18,000; Machinery; 712,000; Debtors 5,000 and Goodwill 900.
(2) Kulkarni took over furniture and stock
at 720,000 and
discount of 7 500.
agreed to pay creditors at a

(3) Solkar took over bills receivable at

5,200 and paid bills payable in full.
(4) Dissolution
expenses paid amounted 7 1,600.
5) Bhave became insolvent. No amount
was recovered from his estate.
Show: Realisation A/c;
Capital Accounts and Bank Al c.
Sol In the books of firm
Dr.
Realisation A/e
Particulars
To Sundry Assets:
Amt. () Amt. () Particular Amt. At
By Sundry Liabilities
Building 19,000
Machinery
Creditors 12,500
13,500 Bills Payable 7,500 20
Furniture
Stock
3,000 By Bank A/c:
20,500 Building 18,000
Debtors 10,000
Bills Receivable
Machinery 12,000
6,000 72,000 Debtors 5,000
To Solkar's Capital A/c Goodwill 900
Bills Payable 7,500 By Kulkarni's Capital A/c
35
To Kulkarni's Capital A/c Furniture and Stock
Creditors 12,000 By Solkar's Capital A/c 20,1
To Bank A/c Bills Receivable
Dissolution Expenses 1,600 By Realisation Loss:
5,
Kulkarni Capital A/c 6,000
Solkar Capital A/c 2,000
Bhave Capital A/c 4,000 12,0
93,100 93,10
Dr.
Partners Capital Accounts
Particulars Kulkarni Solkar Bhave Particulars
Kulkarni Solkar Bha
To Balance b/d 8,500 By Balance b/d 24,000 21,500
To P/L A/c 750 250 500 By Gen. Reserve A/c 6,000 2,0004,00 4,0
To Realisation A/c 20,000 5,200 By Realisation A/c 12,000 7,500
To Realisation A/c
6,000 2,000 4,000 By Kulkarni Cap. A/c 6,75
(Loss) By Solkar Cap. A/c 2,25
To Bhave's Cap. A/c 6,750 2,250
To Bank AMc 8,500 21,300
42,000 31,000 13,000 42,00031,000 13,0
Dr. Bank A/c
Particulars Amt. () Particulars Amt. f
To Balance b/d 3,000 By Realisation A/c 1,60
To Realisation A/c 35,900 By Kulkarni's Loan A/c 7.50
By Kulkarn's Capital A/c 8,50
By Solkar's Capital A/c 21.30
38,900 38,9

Working for Unrecovered amount from Bhave (due to insolvency):

Amount not recoverable is ?9000 shall be borne by remaining partner in their profñit|
sharing ratio i.e. a n d O r 3:1- 76,750 and 2250.

Scheme of Marking: Realisation A/c - 9 items x h mark 3 marks;

Partner's Capital Account 22 items x 4 mark 5% marks;
Bank A/c -6 items x 4 mark =1 % marks; Total 10 marks
 OR
ods to
l d goods to Sathe for ?5,000
at 5% T.D. and
on the same
same date
date drew
3 V a d y a s o l d

on Sathea
ll for 2 months. Sathe
accepted the same and returned to drew
then endorsed the bill to Joshi. Vaidya
Vaidya

date Joshi intormed vaidya about dishonour of bill and noting

due date Josh

him .50. Vaidya settled Joshi's A/c and drew a fresh bill on Sathe charge
1or tthe
O n t h e

y
paid plus interest ?100 for one month. The new bill was honoured on due
Ie
amou

rnal E
Pass Journal
d a t e

Entries
nt in the books of Vaidya.
(10)
P a s s

Journal of Vaidya
Particulars L.F. Debit()Credit ()
Date
Sathe's A/c. ***

Dr. 4,750
To Sales Alc 4,750

(Being goods
sola on
redit 5% T.D.)
Bills Receivable A/c... Dr. 4,750
To Sathe's Alc 4,750
2 months.)
(Being bill drawn for
Joshi's A/c Dr. 4,750
3) Receivable Alc 4,750
To Bills

(Being endorsement of a bill.)

Sathe's A/c . . . . Dr. 4,800
(4) 4,800
To Joshi's Alc

(Being dishonour of bill and noting charges paid by Joshi 7 50.)

DOr. 4,800
(5)Joshi'sAlc..
To Cash/Bank A/c
4,800

(Being Joshi's A/c settled.)

. Dr. 100
(6) Sathe's A/c. ****

100
To Interest A/c
(Being interest receivable.)
... Dr. 4,900
(7) Bills Receivable Alc. ***

To Sathe's Alc
4,900
bill drawn for one month with interest.)
(Being new 4,900
. Dr.|
(8) Cash/Bank Alc. 4,900
To Bills Receivable Ae
(Being honour of new bill.)
Total 33,750 33,750
to 4 1 mark each and Entries
Scheme of Marking: Entries No. l
x

to 8x 1
5 issued 7,000 Equity Shares of marks each = Total 10 marks
4 Bharat No.
Ltd. 10 each payable as follows: ( 0 8 )

OnApplication On Allotment 4
4 OnCall2
hecompany received applications for 10,000 Equity shares. The excess applications
rejected refunded. The money due on allotment and calls were received in
re and
were fortihed.
except on 100 shares the call amount w a s due. These shares
SsJournal Entries to record above transactions in the book of company
 Sol. Journal of Bharat
Ltd.

Date Particulars
Dr
Credit
LFDebit () | Credu
40,000
(1) Bank A/e
To Equity Share Application Ae A0
application money received on 10,000 Equity shares
Delng
@4 per share) Dr. 40,000|
(2) Equity Share Application A/e.
To Equity Share Capital Ale
28
To Bank Alc
12.
on 7,000 shares transferred to
(Being share application money
Share Capital A/c and balance amount refunded.) . Dr. 28,000
(3) Equity Share Allotment Alc..
*********** ******'****************

Share Capital A/c

28
To Equity
due on 7,000 shares @ 4 per share.)
(Being allotment money
.. Dr. 28,000
***** * * **********

(4) Bank A/e

**************************

28
. .

To Equity Share Allotment A/e

share allotment money received.)
(Being equity -
14,000
Share Call Alc
. Dr.
Equity *************
******************

(5) ******'******

To Equity Share Capital Alc 14 9

due 7,000 shares @ 2 per share.)
(Being call amount on

. Dr. 13,800
Bank A/c
**********************************************

(6)
To Equity Share Call A/c 13,800
(Being amount received on 6,900 shares.)
. Dr. 1,000
(7) Equity Share Capital Alc... ********* * **** **** *******

To Equity Share Call A/c

To Share Forfeiture Alc

(Being forfeiture of 100 shares for non-payment of call

money.)
Total 1,64,800 1,64.80
6 1 mark each and
of Marking: Entries No. 1 to
x
Scheme
Entry No. 7 2 marks; Total 8
marks

OR

Q.4 Explain the importance

of Compuretised Accounting System. (0%
are very important for various types of busines
Ans. Compuretised Accounting System
organisations, firms, company etc.
done by the accounting softwa
(i)Automation: All the calculations are automatically
with minimum time as compared to manual calculations. For example, onceinvoi
are processed automatically making accounting
les
are issued by computer they

time consuming.
Facilities : Multi user facility enables the businessman to
acce
(ii) Multi -
user
with more user controls outside or withr
accounting information online or offline
data can be accessed and entere
the office. It is useful to big business houses as
by many operators on different computers simultaneously.
The information and reports generated by Computerised Account
(iii) Accuracy:
software are more accurate as compared to manual accounting. All calculatio
like additions, subtractions and statistical calculations are automatically done
software.
 omputerised accounting software works faster than manual
Speed: Con
fivj

rOcess. generates all financial statements and reports with

It accounung
high accurate
customized templates (guide book) for users which allows fast and speed. It data
nas
entry
Reduction in co0st: As the financial
records are to be entered only once in tne
system the accountant will save his
time in maintaining the records. Computeristu
accounting reduces the number of employees in the organisation. Thus the volume
of job handled with the help of computerised system results in economy and 1owe
operating cost.

ril Systematic and upto date records: In a computerised accounting system when the
accounting data are entered and stored, the accounting records are automatically
updated. For example any entry related to customer updates, customer's account.

iii) Huge storage capacity: The manual accounting system requires to maintain many
books and register for each financial year. In case of computerised accounting
system, the data is stored in hard - disks, CD-ROMs, floppies that occupy fraction
of physical space and can store the data for many years.
vii) Compact: The computer can store huge volume of fnancial data ina compact way.
The financial information can be stored on the hard -disk and if required back up
can be taken on the external storage device which requires very little space.
tix) Transferability/ Sharing Information: Computerised accounting system allows
companies to share financial information with interested parties. Financial
statements and reports are printed directly from the system and also soft copy
can be transferred internally and externally through external storage devices like

hard-disks, pen drive etc.

Scheme of Marking: 1 mark for each point x8 points expected =8 marks
o.5 The Balance Sheet of Manoj, Sanjay and Vinod as on 31st March, 2020
follows: (08)
Balance Sheet as on 31st March, 2020
Liabilities Amt. () Assets Amt. ()

Capitals: Manoj 30,000 Patents 15,000

10,000 Debtors 18,000
Sanjay
Vinod 20,000 Stock 2,000

Reserve Fund 9,000 Bills Receivable 10,000

3,000 Cash at Bank 27,000
Creditors
72,000
72,000
Vinod died on 1st August, 2020 and the following adjustments were agreed:

( ) 5 of patent to be written off.

(2) Unrecorded creditors amounted ?500.

(3) Stock revalued at 2,500.

(4) Allow 12% interest on capital.
15) The goodwill of the firm is to
be valued at 2 years purchase of average profit of last
4 years. The profits were: 24,000 for 2019-20; 18,000 for 2018-19; 722,000 for
2017-18 and 26,000 for 2016-17.
death should be based
partner's share of profit upto the date of his
on
6 The deceased
the average profit of last 2 years.
 Prepare: (1) Profit and Loss Adjustment A/c
(2) Vinod's Capital A/c
(3) Worlking for share of Goodwill to Vinod and
(4) Working for share of profit to Vinod.
In the books of firm
Sol
Dr. (1) Profit and Loss Adjustment A/c
Liabilities Amt. R)|Amt. ()| Assets
3,000 By Stock A/c
Amt. RAmt.
To Patent A/c
To Creditors A/c 500 By Revaluation Loss:
Manoj Capital A/c 1,000
Sanjay Capital A/c 1,000
Vinod Capital A/c 1,000
3,500
Dr. (2) Vinod's Capital A/c
Particulars Amt.1,000 Particulars
) By Balance b/d Amt. P
To Profit and Loss Adjustment A/c
To Vinod's Executor's Loan A/c 40,133 By Reserve Fund A/c 200
(Balancing figure) By Interest on Capital A/c 3,0
By Goodwill A/c 80
By P/L Suspense A/c 15,0
L 41,133| 2,33
(3) Working for share of goodwill to Vinod:
41,13
(0)Average Profit
Total Profit 90,000 = 722,500
No. of years 4
(ii) Goodwill of the firm = Average Profit x No. of years purchase
22,500 x2 45,000
ii) Vinod's share of goodwill Goodwill of the firmx Vinod's share
45,000x = 15,000
3

(4) Working for share of profit to Vinod:

Total Profit 42,000
(i) Average Profit
2
R21,000
No. of years
(ii) Vinod's share of profit = Average Profit x Period x Vinod's share

21,000x x 2,333.33 = 2,333

12 3
Scheme of Marking: Profit and Loss Adjustment A/c - 4 items x á mark = 2 marks;
Vinod's Capital Account - 7 items x h mark = 3 % marks; Working for share of

goodwill-1 marks and Working for share ofprofit-I mark. Total 08marks
OR
Q.5 Given below is the Balance Sheet of Rajesh Ltd. (080
Balance Sheet as on 31st March, 2020
Liabilities Amt. () Assets Amt.
Share Capital 1,25,000 Fixed Assets 1,00,00

1,00,000 Sundry Debtors 1,05,00

Debentures 45,00
Reserves 25,000 Bank Balance
75,00
Bills Payable 25,000 Inventory
Sundry Creditors 50,000
L3,25,00
L3,25,000
 Additional Information:
Net Sales ? 1,00,000
12) Cost of Goods soid 75,000

3OperatingExpenses ?10,0)
Calculate: (1) GroBn Proft Ratio 12) Net Profit Patio 13) Current Rati
14) Tiquid Ratio f5) Heturn on investment Ratio
gol. ) Gross Profit
(1) Gross Profit Net Sales Cost of goods sold
1,00,000 75,00 - 725,000

Gross Profit
Gross Profit Ratio
Net Sales
1o
100 25,00 100 25%
1,00,000
Profit Gross Profit
(2) Net Operating Expenses
25,000 10,000-?15,000o
Net Profit Ratio iet Profit , 15,000
Net Sales
100 100 15%
1,00,000
(3) Current Ratiob= Current Assets
Current Liabilities
1,05,000+45,000 75,000 2,25,000 =3:1
25,000+ 50,000 75,000
(4) Liquid Ratio Liquid Assets 1,05,000 45,000 1,50,000 = 2 : 1
Liquid Liabilities 25,000 50,000 75,000

Investment Net Profit

(5) Return on 100
Capital Employed
15,000 100 6%
1,25,000 1,00,000 25,000
Scheme o f Marking: Gross Profit Ratio = 1 % marks; Net Profit Ratio = 1 marks
Current Ratio = 1 marks,; Liquid Ratio = 1 % marks; Return on Investment Ratio
(RO = 2 marks = Total 8 marks

Q.6 With the help of the Balance Sheet and Receipts and Payments Account (12)
of Adarsh Cultural Club, Mumbai.
Prepare Income and Expenditure Account for the year ended 31t March, 2020
and the Balance Sheet as on the date.
Balance Sheet as on 01.04.2019
Liabilities Amt. ) Assets Amt. )
Capital Fund 2,57,000 Buildings 2,50,000
Building Fund 50,000 Furniture 20,000
Outstanding Salary 1,300Outstanding Subscription 1,000
Cash in hand 2.400
Cash at bank 34,900
3,08,300 3,08,30o
Receipts and Payments Accounts for the year ended 31.03.2020
Receipts Amt.() Paymentts Amt. )
To Balance b/d By Salaries 35,300
Cash in Hand 2,400 By Furniture
Cash at Bank 34,900 (Purchased on 0.1.10.2019) 10,000
 To usbsriptions ByGeneral Expenses 8,A42060
2018 19 1,000 By Printing and Stationery
2019 20 48,000 By Drama Expenses 16.0
2920 21 2.000 51,000 By Balance c/d
To ronatiom for building fund 20,000 Cash in Hand 4 640
To Drara rereipts 28,000 Cash at Bank 57
1,36,300
You are also required to consider the additional information given below:
1.36.3
(1The Cub had 100 members, each paying ? 500 as annual subscription.
(2) Purniture to be depreciated at 20%
p.a.
13) Salaries included 71,300 paid for outstanding salaries for the year 2018-19.
Salaries
outstanding for the year 2019-20 were
700.
Sol In the books of Adarsh Cultural Club, Mumbai
Dr. Expenditure A/c for the year ended 31-03-2020
Income and Cr
Expenditure Amt. ()|Amt. () Income Amt. () Amt.
To Salaries 35,300 By Subscriptions: 48,000
Less 0/s of last year 1,300 |Add: 0/s of current year 2,000 50,000
34,000 By Drama Receipts 28,000
Add: 0/s of current year 700| 34,700| Less: Drama Expenses 16,000 12,000
To General Expenses 8,400
To Printing and Stationery 4,200
To Depreciatinn on Purniture 5,000
To Surplus c/d 9,700
62,000 62,000
Balance Sheet of Adarsh Cultural Club, Mumbai as on 31.03.2020
Labilities
Capital Fund
Amt. Amt.() Assets Amt. R)Amt.
Building 2,50,000
Opening Balance 2,57,000 |Furniture 20,000
|Add: Surplus 9,700 2,66,700 Add: Additions 10,000
Building Pund 50,000 30,000
Add Donations 20,000 70,000| Less:
Depreciation 5,000 25.000
Subscription received Outstanding Subscriptions
in advance 2,000 Cash in hand
2.000
Outstanding salaries 4,600
700 Cash at Bank
57.800
3,39,400 3,39,400
Scheme of Marking: Income and Expenditure A/c - 5 % marks and
New Balance Sheet - marks
6% =
Total 12 marks
Q.7 Ashok and Tanaji are partners sharing profits
and losses
respectively. Their Trial Balance as at 31t March, 2020 isin the ratio 2:3
You are required to prepare given below.
Trading and Profit and Loss A/c for the year
ending 31st March, 2020 and Balance Sheet on that date
account the given adjustments. taking into
Trial Balance as on 31t March, 2020 12
Particulars
Amt. ) Particulars Amt.
Purchases 98,000 Capitals Ashok 30,000
Patent Rights 4,000 Tanaji 40 N
Puilding 1,00,00 rident Fund
gaock(14.2019 7.000
15,000 Creditors 45,000
nting and Stationery
8,650 Sale 158,000
S u n d r yD e b t o r s

35,000 R.D.D 250

11,000 Bank Loan
W a g e sa n d S a l a r i e s

8,000 Bills Payabie

12.000
Furniture

3,000
1 0 %I n v e s t m e n t

10,000 Outstanding Wages 500

Purchased on 30.9.19

Cash 4,000
P.F.Contribution

CarriageInwards
800
1,300
2.95,750 2.95.750
Adjustments:

iClosing Stock 1s valued at the cost of 7 15,000 while its market price is t 18,000.
2 On 31 March, 2020, the Stock of Stationery was ?500.
3) Provide R.D.D. @ 5% on Debtors.
4) Depreciate Building at 5% and Patent Right at 10%
5) Interest on capital 1s to be provided at 5% p.a.
6) Goods worth ? 10,000 were destroyed by fire and Insurance company admitted claim
for 8,000.
In the books of Ashok and
Sol. Tanaji
Dr. Tradingand Profit and Loss A/e for the yearended 31st March, 2020 Cr.
Particulars Amt.(Amt.() Partieulars Amt.Amt. )
To Opening Stock 15,000 By Sales 1,58,000
To Purchases 98,000 By Goods destroyed by fire 10,000
To Wages and Salaries 11,000 By Closing Stock 15.000
To Carriage Inwards 1,300
To Gross Profit c/d 57,700
1,83,000 1.83.000
To Printing and Stationery 8,650 By Gross Profit b/d 57,700
Less: Stock of Stationery 500 8,150 By Interest on Investment
500
To P.P. Contribution 800
To Depreciation on:
Building 5,000
Patents 400 5,400
To New R.D.D 1,750
|Less: Old R.D.D. 250 1,500
To Loss by fire 2,000
To Interest on Capital
Ashok 1,500
Tanaji 2,000 3,500
o Net Profit transferred to:
Ashok Capital A/c 14,740
Tanaji Capital A/c 22,110 36,850
(2:3)
58,200D 58,200
Dr Partners' Capital Accounts
Particulars Ashok
C
Ashok Tanaji Particulars
To Balance c/d Tanaj
46.240 64.110 By Balance b/d
By Interest on Capital
30,000
1,500
40.000
40,00

Profit and Loss A/c 14,740

2,000
By 22,110
46,240 64,110
46,240 64.110
M/s. Ashok and Tanaji
Balance Sheet as on 31*t March, 2020
Liabilities Amt. ) Amt. () Assets Amt. R)| Amt.
Partners' Capitals Patent Right 4,000
Ashok 46,240 Less: Depreciation 400 3,60
Tanaji 64,110 1.10,350 Buildings 1,00,00o
Provident Fund 7,000 Less: Depreciation 5,000 95,000
Creditors 45,000 Sundry Debtors 35,000
Bank Loan 12.000 Less: New R.D.D. 1,750 33,250
Bills Payable 3,000 Furniture 8,000
Outstanding Wages 500 10% Investment 10,000
Add: Interest Receivable 500
10,500
Cash 4,000
Insurance claims 8,000
Closing Stock 15,000
Stock of Stationery 500
1.77,850 1,77,850
Scheme of Marking:
(1) Trading Account - 8 items x 4 mark = 2 marks

2) Profit and Loss Account - 4 items x 4 mark 2 marks

5 ttems with adjustment/ double figure x á mark = 2 marks

(3) Balance Sheet - 1 0items 4 mark - 2 marks

-
4 items with adjustment x
mark -
2 marks
Total Trading A/c - 2, Profit and Loss A/c - 4 s and Balance Sheet - 5 4 1 2 marks