MODEL ANSWER - AUGUST MONTLY TEST ACCOUNTANCY

MODEL ANSWER

Ans.1 No gain ratio for C.

Ans.2 Executors Loan a/c

Ans.3 Outsider Liabilities

Ans.4

Gain ratio :

A : 11/15 - 6/15 = 5/15

C: 4/15 – 5 /15 = -1/15

Goodwill = Rs 1,80,000

A’s share (gain) = 5/15 x 1,80,000 = 60000

B’s share (sacrifices)= 4/15 x 1,80,000 =48000

C’s share (sacrifices)= 1/15 x 1,80,000 = 12000

Journal entry

A’s Capital a/c     Dr      60000

To B’s Capital a/c                                  48000

To C’s Capital a/c                                  12000

(Being treatment of goodwill on B’s retirement)        

Ans.5

Total Profit = 14000+18000+16000-10000+16000 = Rs 54000

Average profit = 54000 / 5 = Rs 10800

Profit upto A’s death = 10800 x 3/12 x 1/3 = Rs 900

Journal Entry

Profit and Loss Suspence a/c     Dr  900

   To A’s Capital a/c                                      900

(being profit upto A’s death credited to his account)

Ans.6

Journal Entry

1.       Cash a/c     Dr  40000

To  Realisation a/c      40000

(Being excess amount received from creditors)

2.       Cash a/c      Dr  400

                   To Realisation a/c   400

               ( Being amount received from bad debts previously written off)

3.       X Capital a/c     Dr 900

Y Capital a/c   Dr 900

  To Realisation a/c       1800

(Being shares taken over by partners)

4.       Realisation a/c     Dr     42000

To X Capital a/c                              21000

To Y Capital a/c                              21000

(Being realization profit transferred to partners capital a/c)

             

Ans.7

Revaluation a/c
To Stock	800	By loss transfer to
To RDD	500	A Capital	5150
To Creditors	3000	B Capital	2575
To Pl and Mach	6000	C Capital	2575
	10300		10300

Capital a/c
Particular	A	B	C	Particular	A	B	C
To Goodwill	4000	2000	2000	By bal b/d	16000	12000	12000
To Pl and Mach	12000		6000	By general reserve	4000	2000	2000
To Revaluation	5150	2575	2575	By Cash	7150
To Cash		9425	425
To bal c/d	6000		3000
	27150	14000	14000		27150	14000	14000

Cash a/c
To bal b/d	10000	By B's Capital	9425
To A's Capital	7150	By C's Capital	425
		By bal c/d	7300
	17150		17150

Balance Sheet after retirement of B
Liabilities	Amt	Assets	Amt
Capital A	6000	Stock	7200
Capital C	3000	Debtors	9500
Creditors	15000	Cash	7300
	24000		24000

Ans.8 

Realisation a/c
To Sundry Assets		By Creditors	30000
Debtors	25000	By Bank Loan	5000
Stock	35000	By Karan Capital (Stock)	15750
Furniture	40000	by Cash (stock)	20125
Machinery	60000	By Cash (Assets Real)	80000
To Cash( o/s)	2000	By Cash (Drs)	32700
To Cash (Crs & B.Loan)	35000	By Cash (Invest)	25000
To Profit transferred to
Karan Capital	5788
Sandeep Capital	5787
	208575		208575

CAPITAL A/C
PARTICULAR	KARAN	SANDEEP	PARTICULAR	KARAN	SANDEEP
To Realisation	15750		By bal b/d	100000	50000
To Cash	97538	63287	By reserves	7500	7500
			by Realisation	5788	5787
	113288	63287		113288	63287

CASH A/C
To bal b/d	40000	By Realisation (crs & b.loan)	37000
To Realisation (stock)	20125	By Karan Capital	97537
To Realisation( assets)	80000	By Sandeep Capital	63288
To Realisation (Drs)	32700
To Realisation (Invt)	25000
	197825		197825