Part-A
(Long Answer Type Questions)
The following is the receipts and payments account of jolly Club for the ¡rst year ended 31
st March 2012:
Additional information:
(i) Salaries outstanding Rs. 200.
(ii) Rent due Rs. 100.
(iii) Subscriptions to be received Rs 400
(iv) Depreciation on furniture 10%
Prepare Income and Expenditure Account for the year March 2012 and Balance sheet as on that date.
Or
From the following information derived from the books of Jammu Club, show the relevance items will appear in opening
and closing balance sheet and in the Income and Expenditure Account for the Year ended 31-03-2012:
Additional Information:
(i) Subscription outstanding 31-03-2011 Rs 18000
(ii) Subscription outstanding 31-03-2010 Rs 21000
(iii) Subscription receive in advance 31-03-2010 Rs 7000
1. The partnership agreement of Mohsin and Ganesh provide that :
(i) pro¡t will be shared equally.
(ii) Mohsin will be allowed a salary of Rs 400. P.M
(iii) Ganesh who manages the sales departmental will be allowed a commission equal to 10% of the net
pro¡t after allowing Mohsin salary.
(iv) 5% interest will be changed on partner’s annual drawings. Mohsin Rs. 800 and Ganesh Rs. 700.
(v) The net pro¡t for the year ending March 31, 2012 amounted to Rs. 40000
Prepare Firm’s Pro¡t and Loss Appropriation Account.
Or
X and Y are partners sharing pro¡t and losses in the ratio 2 : 1. Their capital were Rs 40000 and Rs 30000
respectively.
Show distribution of pro¡t in each of the following cases:
Case A: Pro¡ts are Rs. 15000 and deed is silent as regards to interest on capital.
Case B: Pro¡ts are Rs 15000 and deed provides for interest @10% p.a on capital
Case C: Pro¡ts are Rs 5600 and deed provides for interest on capital @10% p.a
Case D: Pro¡ts are Rs 5600 and the deed provides for interest on capital @10% p.a even if there is a loss
Case E: Losses are Rs 2000 and the deed provides for interest on capital @10% p.a even if there is a loss.
3 ¡rm earned net pro¡t during the last ¡ve years as follows:
(i) Rs. 7000
(ii) Rs. 6500
(iii) Rs 8000
(iv) Rs. 7500
(v) Rs 6000
The capital investment of the ¡rm is Rs 40000. A fair return on Capital in the market is 12%. Find out the value of
Goodwill of the business if it is based on the three year purchase of average super pro¡ts of the past ¡ve years.
Or
A and B are partners in 3:2 ratio. C is admitted. A gave 1/5 of his share to C while B gave 1/10 of his share to C. Find out
(a) new pro¡t sharing ratio and sacri¡ce ratio.