PAPER 4 (With Solution)

SPECIMEN
[Maximum Marks: 80
[Time: 3 Hours]
Q.1 (A) Answer in one sentence only: 05
current account openedd?
(When is partners current accounts are one
Ans. When fixed capital method is maintained by partners, ened
(2) What is surplu?
Expenditure Account is kne
Ans. Excess of income over expenditure in Income and
known
as surplus.

(3) What is sacrifice ratio ?

in favour of new partner is called sacrifice ratitio.
Ans. Ratio surrendered by old partners
(4) What is capital deflciency?
ccount which he cannot pay off is cale
Ans. The debit balance of partner's capita
capital deficiency.
(5) What is the relationship between Drawer and Drawee ?
creditor and debtor.
Ans. The relationship between drawer and drawee is that of
Scheme of Marking:1 mark for each correct answer
. 1 (B) Do you agree or disagree with the following statements: (05
() The Indian Partnership Act, came into existence in the year 1945.
(2) Receipts and Payment Account contains only the transactions relating to current
year
(3) Retiring partner is called an outgoing partner.
(4) A deceased partner is not entitled to Goodwill of the firm.
(5) Purchase of fixed assets is investing cash flow.
Ans. (1) Disagree (2) Disagree (3) Agree (4) Disagree (5)AgTes
Scheme of Marking: 1 mark for each correct answer |
. 1 (C) Write one word / term/phrase which can substitute each of the
following statements: (05)
(1) Persons who form the partnership firm.
(2) The account in which selling expenses of business are recorded.
(3) All such receipts which are non -recurring in nature and not forming a part of
regular flow of incomne.
(4) The ratio in which continuing partners are benefited due to retirement of partner.
(5) The short key used to save or accept the information.
Ans. (1) Partners (2) Profit and Loss A/e (3) Capital Receipts
(4) Gain Ratio (5) Ctrl+A

Scheme of Marking: 1 mark for each correct answer

Q.1 (D) Complete the table: (05)
(1) Income Expenditure Deficit
10,000 ? 5,000
(2) Revaluation Profit Share of Ajay Share of Vijay
24,000 18,000
 Creditors Bills Payable
Third Party Liabilities
18,000 49,000
Date of Acceptance Payable after sight Due date
4 17.08.2020 3 months
Calls-in-arrears Paid up amount Called up amount
3,000 5,000
(1) 15,000 (2) 6,000 (3) 31,000 (4) 20.11.2020 (5) 2,000
| Scheme of Marking: 1 mark for each correct
answer
Ram and Mad
adan were
partners in
a firm sharing profits and losses equally
0 Following was their Balance Sheet as on 31.03.2020: (10)
Balance Sheet as on 31.03.2020
Liabilities Amt. () Assets Amt. ()

Capital Plant and Machinery 90,000

Ram 1,00,000 Furniture 15,000

Madan 1,00,000 Sundry Debtors 92,600

General Reserve 40,000 Less: R.D.D. 1.600 91,000

Sundry Creditors 68,000

55,300 Stock
Cash in Hand 4,200

Cash at Bank 27,100

2,95,300
2,95,300
On 1st April, 2020, Soham was admitted as a partner in the firm on the following
terms rd
(1) Soham is to bring in 1,00,000 as his capital. He is to be given share in future
3
profits
(2) Goodwill of the firm to be raised at 730,000. It was decided that 'Goodwill' should
not appear in the books of the new firm.
(3) Furniture to be depreciated by 10%. Stock was valued at R70,500.
Prepare:
(1) Profit and Loss Adjustment Account (2) Partners' Capital Accounts
(3) Balance Sheet of the new firm.
Sol In the books of firm
Dr. Proflt and Loss Adjustment A/c Cr.
Particulars |Amt.() Amt. () Particulars Amt.) Amt. )
To Furniture A/c 1,500 By Stock A/c 2,500|
To Revaluation Profit:
Ram Capital A/c 500
Madan Capital A/c 500 1,000

2,500 2,500
 Dr. Partner's Capital Accounts
Particulars Ram Madan Soham Particulars Ram Madan
To Goodwill A/e 10,000| 10,000 10,000|By Balance b/d 1,00,0001,00,000 3oham
To Balance c/d 1.25,5001,25,500 90,000 By CGen. Res. A/c 20,000 20,000
By Goodwill A/c 15,00015,000
By Bank A/c
By P/L Adj. A/c 500 500 00,000
1,35,500 1,35,500|1,00,000 1,35,5001,35,500| 1,O0n
M/s. Ram, Madan and Soham
Balance Sheet as on 1t April, 2020
Liabilities Amt.()Amt. () Assets Amt. ) Amt.
Capital Accounts: Plant and Machinery
Ram 1,25,500 Furniture 15,000
90.000
Madan 1,25,500 Less: Depreciation 1,500
13,500
Soham 90,000 3,41,000 Sundry Debtors 92,600
Sundry Creditors 55,300 Less: R.D.D. 1,600 91,000
Stock 68,000
Add: Appreciation 2,500 70,500
Cash in Hand 4,200
Cash in Bank
1,27,100
3,96,300| 3,96,300
Scheme of Marking: Profit and Loss Adjustment A/c - 2 marks; Partner's Capital
Accounts-4 marks and New BalanceSheet- 4 marks =Total 10 marks
OR
. 2 Ria, Maya and Chhaya are partners in a firm sharing profits and losses in
the ratio of their capitals. Their Balance Sheet as on 31-03-2020 is
as follows:
Balance Sheet as on 31s* March, 2020
(10
Liabilities Amt. ( ) Assets Amt. )
Capitals Riya 45,000 Cash 75,000
Maya 45,000 Stock 15,000
Chhaya 22,500 Motor Car 60,000
Creditors 10,000 Goodwill 9,500
Reserve Fund 7,000
Profit and Loss A/c 30,000|
1,59,500 1,59,500
On the above date Ria retired and
following adjustments were agreed:
(1) Goodwill was revalued at 7,500.
(2) Stock to be valued at 90% of its book value.
(3) Motor Car was taken over by Maya at 15% less than its book value.
(4) Maya and Chhaya contributed additional
capital of 710,000 and 7 20,000
respectively.
(5) Balance due to Ria is transferred to her loan account after
paying 50% amount due
Prepare
(1) Profit and Loss Adjustment Account (2) Partners' Capital Accounts
(3) New Balance Sheet.
emen
In the books of firm
S o l

(1) Proflt and Loss Adjustment A/e Cr.

Particulars
Amt.() Amt. () Partienlar Amt. () Amt. R)
o StockA/c 1,500By Revaluation Loss
To Motor A/c 9,000 Ria Capital A/c 4,200
Maya Capital A/c 4,200
Chhaya Capital A/c 2,100 10,500|
10,500| 10,500
Partners' Capital Accounts Cr.

Particulars Ria Maya Chhaya| Particulars Ria Maya Chhaya

To Goodwill A/c 800 800 400 By Balance b/d 45,000 45,000 22,500
Car A/c 51,000 By Res. Fund A/c 2,800 2,800 1,400
To Motor 12,000 12,000 6,000
To P/L Adj. A/c 4,200 4,200 2,100 By P/L A/c
ToCash/Bank A/c27,400 By Cash/Bank A/c 10,000 20,000
To Loan A/c 27,400
To Balance c/d 13,800 47,400|
59,800 69,800 49,900
59,800 69,800| 49,900|
M/s. Maya and Chhaya
Balance Sheet as on 31-03-2020
Assets Amt. () | Amt. )
Liabilities Amt.) Amt.) 77,600
Capitals: Cash
13,800 Stock 15,000
Maya 13,500
Chhaya 47,400 61,200 Less: Decrease 1,500
10,000 Goodwill 9,500
Creditors 2,000| 7,500
27,400 Less: Decrease
|Loan of Ria 98,600
98,600
Working for Cash: 75,000 + 10,000 +20,000 - 27,400 = 777,600.

Note: The adjustment of Goodwill can be alternatively shown in P/L Adjustment A/c.
Scheme of Marking: Profit and Loss Adjustment A/c - 3 items x % mark = 1 marks;
Partner's Capital Account -22 items x h mark - 5% marks;
New Balance Sheet - 6 items x % mark = 3 marks = Total 10 marks

Q.3 Umesh and Prakash were partners sharing profit and losses in the proportion
of 3/5 and 2/5 respectively. They dissolved their partnership fArm on
31st March, 2020, when their financial position was as under: (10)
Balance Sheet as on 31st March, 2020
Liabilities Amt.) Assets Amt.()
| Sundry Creditors 7,500 Cash at Bank 1,500
Umesh's wife's loan 15,000 Debtors 33,750
Capital Accounts: Less: R.D.D. 3,750 30,000
Umesh 69,000 Stock 67,500
Prakash 45,000 Machinery 22,500
Furniture 15,000
1,36,500 1,36,5000
(1) The assets realised as under:
Goodwill7,500; Stock 60,000; Debtors 727,000.
 (2) Machinery was taken over by Prakash at 20,000 and furniture hu,
Papers
ers Solution

value. Umesh at\ book

(3) Umesh agreed discharge his wife's loan.
to
were paid at a rebate of ?
1,500.
(4) The creditors
T h e expenses of dissolution amounted to ? 3,000
Fass necessary journal entrles in the books of the firm.
Journal of fArm
Sol.
Date
31.3.20|
Particulars
L.P.Debit (R)Credit
. Dr. 1,38,750
(1) Realisation Ale.
** ******'****************'''°**********'*'***

ToDebtor's Alc
To
To
Stock ANe
Machinery Alc
33,750
67 550
ToFurniture Alc 22,5%
(Being variousassets transferred to Realisation
A/c.)
DIC.
15,000
(2) Sundry Creditors A/c.. ****
************************.
7,500
Dr.
Umesh's wife's Loan AJc.. **********************"*****s****
15,000
Dr.
R.D.D. A/c.. ******************************°
**°************* **** . . .

3,750
To Realisation Alc
(Being various liabilities a d R.D.D. transferred to 26250
Realisation A/c.) . . Dr.
(3) Bank Alc.. * ****eo***********°* *****************°°*°*°***********
94,500
To Realisation A/c
94,500
Being assetsrealised.)
4) Prakash Capital Alc.. ***°******°**** ************ **°°°************ Dr. 20,000
To Realisation A/c
(Being machinery taken over.)
20,000
(5) Umesh Capital Ale.***** ************************** Dr. 15,000
To Realisation A/c
15,000
Beingfurniture taken over.)
(6) Realisation Alc.. ...Dr.| 3,000
To Bank A/e 3,000
(Being dissolution expenses paid.)
(7) Realisation Alc... Dr. 15,000
To Umesh Capital Alc 15,000
Being wife'sloan taken over.)
(8) Realisation AJc...
***************************** **** Dr.| 6,000
To Bank Alc 6,000
Being creditors paid off.)
(9) Umesh Capital A/c...
***.s*****4***************. Dr. 4,200
Prakash Capital Alc..
*************a************** ********** .Dr. 2,800
To Realisation A/c 7,000
(Being loss on realisation distributed.)
(10) Umesh Capital Ac. . . . . Dr. 64,800
Prakash Capital Alc... 22,200
***********°**********aas*so4**************** Dr.
To Bank A/c 87,000

(Being settlement ofaccounts.)

4,12,500 4,12,500
Total
Scheme of MarkLng: 10 Entries 1 mark for each entry
-
=1otat
 OR
draWS two bills of t2,000 and 7 5,000 on Small and Medium for 2
BEone month of the due date of bill Small retired his acceptance @ month
12% p.a
a n do ndue date Medium dishonoured his acreptance. Big paid noting charges 50.
8er On, Medium accepted 2 months bill for 73,090 inclusive of interest ?90 and
aid the balance amount by cheque. The new bill was met on due date.
paie
PAss Journal Entries in the books of Big. (10)
Journal of Big
Sol

Date
Particulars L.F.Debit)Credit)
Bills Receivable () Alc.********************** . Dr.
************************* ***** 2,000
()
To Small Alc 2,000
(Being acceptance received for 2months.)
(2) Bills Receivable (11) A/c...
******************** * *s*.tto**** Dr. 5,000
To Medium Alc 5,000
(Being acceptance receivedfor 2months.)
Cash/Bank Alc.. ....Dr. 1,,980
(3)
Rebate Alc.. 20
******************** **nssserno**s*ataea*ttr*nee .... Dr.
2.000
To Bills Receivable () Alc
(Being retirement of bill.)
.Dr. 5,050
Medium Ac..
(4) 5,000
To Bills Receivable (1) A/c
50
To Cash Alc
(Being dishonour ofbill and notingchargespaid.)_ 3,090
(5) Bills Receivable (III) Alc.. °****°°**°***********°*************°°*°°
..Dr.
3,000
To Medium Alc 90
To Interest Alc
(Being new bill received with interest.)
Dr.| 2,050
(6) Bank A/c. ****************°*******************************e********************

2,050
To Medium Alc
(Being balance amount received by cheque.)
Dr. 3,090
(7) Cash/Bank Alc. 3,090
To Bills Receivable (1II) Alc

(Being new bill honoured.)

Total 22,280 22,280
Scheme of Marking: Entries No. 1 to 4 x 1 mark each and
Entries No. 5 to 7 2 marks each 6 marks; Total 10 marks=

100 each payable at 100 on (08)

0.4 Mahi Ltd. issued 1,000 Equity Shares of ?
application. The issue was fully subscribed and shares were alloted. The company
also acquired running business of Mr. Mathur consisting of assets worth? 1,50,000
and liabilities 7 60,000. The company decided to issue shares of i 100 each to
vendors in full consideration.
Pass Journal Entries in the following cases :
() For issue of shares for cash.
(2) For purchase consideration due to vendors.
(3) For issue of shares to vendors at par.
For issue of shares to vendors at 10% discount.
5) For issue of shares to vendors at 20% premium.
 Sol. Journal of Mahi Ltd.

Date Particulars L.FDebit () Credit (

(1) (a)Bank Alc ******"****'** **s*t**'******'*****' ******"*'
Dr 1,00,000O
To Share Application Ale 1,00.000
(Being share application money
received on 1,000 shares
at 100 each.) Dr. 1,00,000
(1) 6) |Share Application Ale.
To Share Capital A/e 1,00,009
to Share
(Being share application money transferred
Capital Alc) Dr. 1,50,000
(2) Sundry Assets A/c..
To Sundry Liabilities A/c 60,000
To Mr. Mathur's A/c 90,000
(Being assets and liabilities taken over.)
(3) Mr. Mathur Alc..****************************°**********'***********
...Dr. 90,000
To Share Capital A/Nc 90,000|
(Being 900 shares of 100 each issued to vendors.)
(4) Mr. Mathur A/c.****°**************.**** **************** **** Dr. 90,000
Discount on issue of Shares A/c.. Dr.
******°**********°**°
10,000
To Share Capital A/c 1,00,000
(Being issue of 1,000 shares of 7 100 each at a discount of 10
to vendors.)
(5) Mr. Mathur A/c.. *°°*°°°°*°°°*°*°°° **°°°*°*°*****. 90,000|
To Share Capital A/e 75,000
To Share Premium Alc 15,000
(Being issue of 750 shares of T 100 each at a premium of F20|
to vendors.)
Total 6,30,000 6,30,0000
Scheme of Marking: Entries No. 1 (a) and (b) - 1 mark each =2 marks;
Entries 2to 5-1%mark each =6 marks;Total8 marks
OR
Q.4 Explain various types of Accounting Packages. 08)
Ans. Every Computerised Accounting System is implemented to perform the accounting
activities in an organisation such as recording, storing of accounting data and
information and generate reports as per the requirements of the users. To obtain
the required results computer packages are to be installed in the computer system
in an organisation. From this prospective the accounting packages are classified
into the following categories.
() Ready to use (i) Customized
(iii) Tailored (iv) Free and Open Sources.
Each of those categories offer individual features. However, the choice of the
accounting software would depend upon the suitability to the organisation
especially in terms of accounting and financial needs.
() Ready to use: This accounting software packages are readymade packages which
can be used by businees unit immediately on procurement. It is suitable for small
Scale business units havinglimited transactions. Such, software is relatively easie
to learn. Cost of installation and maintenance is very low. Training cost is not
considered and sometimes the vendor provides free of cost training. In this type
of software the level of secrecy is relatively low and the software is prone to data
frauds. Examples of Ready to use software are Tally, Quick Books, Profit Books
etc
 Customized: When ready-to-use packages available in the market are not suitable
to fulfill the user requirement, the customized packages may be helpful to fulfill the
requirements. Customized packages can he modified accounting to the need of the
enterprise.

example, Standardized Accounting Software may contain the sales voucher

and inventory status as seperate options. However, when the user requires that
inventory status to be updated immediately upon the entry of sales voucher and
report be printed, the software needs to be customized.
Customized packages are used by medium and large business organisations. Cost
of installation, maintenance and training is relatively higher. Secrecy of data and
software can be better maintained in customized software. This software allows
modification and addition to the software contents, provision for specified number
of users and their authentication etc.
Tailored: The accounting software is generally tailored in large business
organisations with multi users and geographically scattered locations. This software
requires specialised training to users. The tailored software is designed to meet the
specific requirements of the users and form an important part of the organisational
MIS. The secrecy and authenticity checks are robust in such software's and they
offer hish flexibility in terms of number of users.
(v) Free and Open Souree: The small business need an accounting software but they
do not have a big budget, then find out accounting software available on free, open
source software on the internet. These applications you can download and install
from the websites.
For examples : GNU Khata is the open source accounting software for small business
as well as personal finance software.
Scheme of Marking: 2 marks for each type x4 types =8 marks
Q.5 Vimal, Kamal and Shamal were partners sharing profits and losses in the (08)
ratio of 2:2:1respectively. Their Balance Sheet as on 31st March, 2020 was as
under:
Balance Sheet as on 31* March, 2020D
Liabilities Amt. Amt. () | Assets Amt. R) Amt. R)
Capital A/c Land and Building 50,000
Vimal 40,000 Stock 30,000
Kamal 40,000 Debtors 37,500
Shamal 20,000 1,00,000 Less: R.D.D. 2,500 35,000
Reserve Fund 10,000 Furniture 10,000
Creditors 16,000 Cash at Bank 5,000
Outstanding Expenses 4,000
1,30,000 1,30,000
died on 1t July, 2020 and the adjustments were agreed as per deed
Shamal
follows:
as

Land and Building was to be valued at ?60,000 and all debtors were good.
(2) Stock to be depreciated at 10%.
3) Interest on capital was to be allowed at 10% p.a.
The drawings of Shamal upto the date of her death amounted to ? 2,000.
he deceased partner's share of goodwill is to be valued at 2 years purchase of
average profit of last 3 years. The profits were:
2017-18 ?15,000; 2018-19 17,000 and 2019-20 13,000.
 uld beSolution
(6) The deceased partner's share of proft upto the date of her death sho

on average profit of the last two year.

You are required to prepare:
(A) ProAt and lon Adjustment A/e
\yased
(B) Shamal's Capital A/c showing the balance payable to her e e
(C Working notes for caleulation of goodwill and proft till utor.
till hthe dattor
e of death
Sol In the books of fArm
Dr. (A) ProfAt and Loss Adjustment A/e
Partlenlars Amt. () Particulars
To Stock A/c 3,000 By Land and Building A/c Amt
To Revalhuation A/e: By R.D.D. A/c

Vimal Capital A/c 3,800 2.30

Kamal Capital A/c 3,800
Shamal Capital A/c 1.900 9,500

12,500|
Dr. (B) Shamal's Capital A/c 12.36
Particulars Amt.() Particulars Ct
Amt.
To Drawings A/c 2,000 By Balance b/d
To Shamal's Executor's Loan A/c 29,150 By Reserve Fund 20,006
By Interest on Capital A/c 2,000
By P/L Adjustment A/c 500
By Goodwill A/c 1,900
By P/L Suspense A/c 6,000
750
31,150|
31,150
(C-1)Calculation of Shamal's share of Goodwill:
Average Profit = Total Profit 15,000 + 17,000 + 13,000
No. of years 3
45,000 15,000
3
Goodwill of the firm =
Average Profit x No. of years purchase
15,000 x2 730,000
Shamal's share of Goodwill =
Goodwill of the firm x
Shamal's share
=

30,000x 5
=
z6,000
(C-2)Calculation of Shamal's share of Profit
Average Profit Total Profit 17,000 13,000
=

3,000 =
15,000
No. of years 2 2
Shamal's share of
profit =

Average Profit x
Period x
Shamal's share
15,000xS R750
12
Scheme of
Marking: Profit and Loss Adjustment A/ c 4 items x mark
Shamal's Capital Account 8 itens x %-

mark 4 marks: Working for share O=

-

adwl
-1 mark and Working
for share of profit I mark. Total 08 marks.
-

= =
 following Balance Sheet of Prabath Ltd. prepare cash flow
From thee fo
5

statement.
(08)

31.03.19 31.03.20 31.03.19 31.03.20

Liabilities Assets
()
Share Capital 1,00,000 1,50,000 Computer 75,000 1,20,000|
12% Debentures 50,000 25,000 Stock 50,000 70,000

and Loss A/c 20,000 45,000 Debtors 40,000 40,000

Profit
B i l s Payable 10,000 15,000 Cash 30,00020,000
15,000 15,000
Creditors
|1,95,000 2,50,000J
1,95,000 2.50,000
sol. Cash flow
statement of Prabhat Ltd. for the year ending 31.03.2020.
Particulars Amt.() Amt. (R)
Cash flow from Operative Activities:
Closing balance of Profit and Loss A/c 45,000
Less: Opening balance of Profit and Loss A/c 20,000
25,000 (1)
Add: Increase in Current Liabilities - Bills Payable 5,000 (1)
30,000
Less: Increase in Current Assets - Stock (20,000) (1)
Net cash from Operating Activities (A) 10,000(1)
(B) Cash flow from Investing Activities:
Purchase of computer 45,000)
Net cash used in Investing Activities (B) (45,000) (1)
Cash flow from Financing Activities:
(C)
Issue of shares 50,000
Redemption of Debentures (25,000)
Net cash from Financing Activities (C) 25,000 (1
Net Decrease in cash and cash equivalent (A+B+C) (10,000) (1)
Add: Cash and cash equivalent at the beginning of the period 30,000
Cash and cash equivalent at the end of the period 20,000 (1)
Scheme of Marktng: 8 marks as shown in problem.
Q.6 Dr. Anil 8hah commenced medical practlce on 01.04.2019.
He bas prepared the following Receipts and Payment Account for
the year ended 31.03.2020. (12)
Dr. Receipts and Payments A/cfor the year ended 31.03.2020 Cr.

Receipts Amt.() Payments Amt. ()

To Cash introduced (Capital Fund) 30,000 By Furniture (1.4.19) 40,000
To Income from Visits 50,000 By Honorarium to Doctors 10,000
To Receipts from Dispensary 50,000
70,000 By Equipments (1.10.11)
To Interest received on investments 12,000|
700 By Purchase of Medicines
To Miscellaneous Receipts 300 By Compounder's salary 8,000
9,000
|By Rent of Dispensary
7,000 |
|By Conveyance charges
 By Stationery 500
By Investments 10,000
By Balance c/d 500
1,51,000 1,51,000
Additional Information:
still to be received
of the visits.
on account
(1) 6,000 were
Compounder's salary 73,000;
Bill of Stationery 7 1.060
(2) Outstanding expenses were:
and Rent of dispensary 73,000.
25% of the amount of conveyance charges were for private use.
(3)
Stock of Medicines hand was estimated at 73,000.
(4) on
at 10% p.a.
(5) Furniture and Equipments are to be depreciated
the year ended 31st March
Prepare:Income and Expenditure Account for
2020 and Balance Sheet as on that date.
Sol. In the books of Dr. Anil Shah
A/c for the year ended 31-03-2020 Cr.
Dr. Lncomeand Bxpenditure
Amt.)Amt.( ) | _ Income Amt. R)Amt. P)
Expenditure 50,000
To Honorarium to Doctors 10,000 By Income from visits

To Purchase of Medicines 12,000 Add Outstanding 6,000 56,000

9,000 By Receipts from 70,000
Less: Stock of Medicines 3,000
To Compounder's Salary 8,000 Dispensary
11,000 To Interest received on 700
Add: Outstanding 3,000
To Rent of Dispensary 9,000 Investment
Miscellaneous Receipts 300
Add: Outstanding 3,000 12,000 By
To Conveyance charges 7,000
Less: Drawings 1,750 5,250
To Stationery 500|
Add Outstanding 1,000 1,500
To Depreciation on
Furniture 4,000
Equipments 2,500 6,500
To Surplus c/d 71,750
1,27,000 1,27,000
Balance Sheet of Dr. Anil Shah as on 31.03.2020

Liabilities Amt. () Amt. () Assets Amt. (R) Amt. )

Capital Fund: Furniture 40,000
4,000 36,000
Opening Balance 30,000 Less : Depreciation
50,000
Less: Drawings 1,750 Equipments
Less: Depreciation 2,50047,500
28,250| 10,000
Add Surplus 71,750 1,00,000 Investments
4,500
Outstanding Expenses: Cash
6,000
Compounder's Salary 3,000 Visit fees Receivable
3,000
Stationery 1,000 Stock of Medicines
Rent of Dispensary 3,000 1,07,000
1,07,000
Scheme of Marking: Income and Expenditure A/c 12 items - mark =6 marks;
Balance Sheet 9items (excluding capitalfund)= % mark 4% marks and Capital
Fund-1 mark Total 12 marks
peciner

Mamta and Samta are partners in partnership sharing profits and losses in
. 7 the ratio of 3:2. From the following Trial Balance and adjustments given

below, you required to prepare Trading and Proft and Loss A/c for the
are
(12)
vear ended 31st March, 2020 and Balance Sheet on that date.
Trial Balance as on 31-03-2020
Particulars Amt. () Particulars Amt. ( )
opening Stock 20,000 Capitals Mamta 90,000
200 Samta 60,000
Discount
25,000 Current A/c: Manta 3,000
pebtors
1,200 General Reserve 20,000
nsurance
Prepaid Insurance 300 Sales 80,800

Freight 400|
Goodwill 20,000|
5,000
Cash
Motive Power 3,500
15,000
Wages
Export Duty 1,200
60,000
Purchases
12% Debentures (01.07.19) 20,000
Furniture 30,000|
Plant and Machinery 50,000
Current A/c: Samta 2,000
2,53,800
2,53,800
Adjustments: its cost
was 30,000 which was above
(1) Stock on hand on 31.03.2020 at market price
by 5,000.
sold 27th March, but no entry was passed in thhe
(2) Goods worth 10,000 were on

books.
for Discount on debtors 1%.
(3) Create R.D.D. @ 6% and Reserve
for deposit of power meter.
(4) Motive power included 2,000 paid
were included in wages 5,000. Depreciate
(5) Wages paid for installation of Machinery
Machinery by 10%.
Sol. In the books of M/s. Mamta and Samta
for the year ended 31st March, 2020 Cr
Dr. Trading and Profit and Loss A/c
Particulars Amt. () Amt. () Particulars Amt.() Amt.R)
20,000 By Sales 80,800
To Opening Stock
60,000 Add: Unrecorded 10,000 90,800
To Purchases
25,000
To Freight 400 By Closing Stock
to Motive Power 3,500
Less: Deposit 2,000 1,500|
To Wages 15,000
Less: Machinery 5,000 10,000
To Gross Profit c/d 23,900
1,15,800
1,15,800
 To New R.D.D. 2,100 By Gross Profit b/d
9litiDn
To Discount
2.3
200 By Interest on Debentures
Add: New R.F.D.D. 329 529
To insurance 1,200
To Export Duty 1,200
To Depreciation on
Machinery 5,500|
To Net Proft trd. to:
Mamta Current A/c 9,103
Samta Current A/c 6,068 15,171
25,700
M/s. Mamta and Samta
25,700
Balance Sheet as on 31t March, 2020
Liabilities Amt. () Amt. () Assets Amt. R) Amt.
Capitals Debtors 25,000
Mamta 90,000 Add: Unrecorded 10,000
Samta 60,000 1,50,000 35,000
Current A/cs: Less: New R.D.D. @ 6% 2,100
Mamta 3,000
32,900
Add: Net Profit 9,103 12,103 Less: New R.F.D.D. @ 1% 329 32,571
Samta
(2,000)| Prepaid Insurance
300
Add: Net Profit
6,0684,068 Cash 5,000
General Reserve 20,000 12% Debentures 20,000
Add: Interest Receivable 1,800 21,800
Furniture
30,000
Goodwill 20,000
Plant and Machinery
50,000
Add: Wages 5,000
55,000
Less: Depreciation 10% 5,500 49,500
Closing Stock 25,000
Power Deposit
2,000
1,86,171 1,86,171
Scheme of Marking:
Trading A/Vc 4 items x 4 mark =1 mark;
G.P. and 3 items with adjustments = 4 items x % mark = 2 marks
Profit and Loss A/c: 6 items x % mark 1% marks;
=

2 items with
Balance Sheet adjustments/double
1 3 items % mark 6% marks
x =
figure x
% mark 1 mark; =

Total 1rading A/c - 3; Profit and Loss A/c = 2% marks and Balance Sheet - 6% marAS
| Total 12 Marks.