KIPS COLLEGE

ISB-RWP-GRW-FSD-LHR-KSR-MTN

CLASS: SY SUBJECT: Accounting FLP-2

Time: 03:00 Hours Marks: 100 DATE: 07–04–2018
Name: ____________________________Class: ________________ Roll No. ________________
Qno.1 Choose the correct statement: - (10)
1- At the time of admission of a new partner in partnership, goodwill raised should be written off in:
(a) Gaining ratio (b) New profit sharing ratio (c)Old profit sharing ratio (d) Sacrifice ratio
2- It is prepared to calculate the profit or loss of old partners on the admission of a new partner:
(a) Revaluation account (b)Realization account (c) Profit & loss account (d) All of these
3- Revaluation account is also known as:
(a) Revaluation account (b) Profit & loss adjustment account (c)Profit & loss account (d) Capital
account
4- Revaluation profit or loss is credited or debited to old partner’s capital accounts in:
(a) Gaining ratio (b) New profit sharing ratio (c) Old profit sharing ratio (d) Sacrifice
ratio
5-On admission of a partner, the decrease in the value of assets should be debited to:
(a) Revaluation account (b) Realization account (c) Assets account (d) New partner’s capital account
6- On admission of a partner, the decrease in the value of assets should be debited to:
(a) Revaluation account (b) Realization account (c) Assets account (d) Partners capital account
7-The increase in the value of liabilities on the admission of a new partner should be credited to:
(a) Revaluation account (b) Liabilities account (c)Profit and loss account(d) Partners capital account
8- The decrease in the value of liabilities on the admission of a new partner should be credited to:
(a) Profit and loss adjustment account (b) Liabilities account (c) Profit and loss account
(d) Partners capital account
9- Profit on revaluation should be credited to:
(a) Revaluation account (b) Liabilities account (c) Assets account (d) Old partners capital
account
10- The decrease in the value of building, stock on the admission of a partner should be debited to:
Building account (b) Stock account (c) ‘a’ & ‘b’ (d) Revaluation account
11- It sets out the terms on which partners agreed to form a partnership:
(a) Partnership agreement (b) Partnership deed (c) “a” & “b” (d) None
12- In the absence of an agreement, profit and loss are divided by partners in the ratio of:
(a) Capital (b)Time devoted by each partner (c) Equally (d) Interest on capital
13- In the absence of an agreement, interest on drawings is to be charged by the firm at the rate
of:
(a) 5% p.a. (b) 6% p.a. (c) 10% p.a. (d) None of these
14- In the absence of an agreement, interest on loan advanced by a partner to the firm is allowed
at the rate of:
(a) Six per cent (b) Five per cent (c) Twelve per cent (d) Seven per cent
15- The partnership act is:
(a) 1932 (b) 1912 (c) 1962 (d) 1984
16- When capital is introduced by a partner, we should be debited to:
(a) Cash account (b) Capital account (c)Current account (d) Loan account
17- Partner’s current accounts should be opened when capital accounts are:
(a) Fixed (b) Fluctuating (c) Current (d) Nominal
18- The maximum amount which each partner will draw from the business in anticipation of the
share of profit is his:
(a) Drawings (b) Profit (c) Loss (d) Capital
19- The current account of a partner:
(a) Will always have a credit balance (b) Will always have a debit balance
(c) May have a debit balance or a credit balance (d) none of these
20- The relation between person who have agreed to share the profits of a business carried on by
all or any one of them acting for all is called:
(a) Sole proprietorship (b) Partnership (c) Joint stock company (d) Individual
 KIPS COLLEGE
ISB-RWP-GRW-FSD-LHR-KSR-MTN

CLASS: SY SUBJECT: Accounting FLP-2

Time: 03:00 Hours Marks: 100 DATE: 07–04–2018

Short Questions: (10X2 = 20)

(1) Realization Account (2) Dissolution of firm

(3) Dissolution by court (4) Growing ratio and sacrifice ratio
(5)Revaluation Method (6) Memorandum Revaluation Account
(7) Profit and loss appropriation account (8) Dissolution on happening of certain contingencies
(9) Dissolution by Agreement (10) Define firm
(11) Active Partner (12) Sleeping partner (13) Junior Partner

Section II
Long Questions: (20 X 3 = 60)
Q1: A company issued 20,000 shares of Rs.10 each to general public at 10% premium. Applications
were received for 35000 shares. Shares were allotted and money was refunded to the applicants of
15000 shares.
Record the above transactions in the books of the company and draft the Balance Sheet.
Q2: Imran textiles Ltd. acquired the business of M/s Noor and Sons. The assets and liabilities of
M/s Noor & Sons at book value are given below:
Land & Building 50, 000 Sundry Creditors 10, 000
Machinery 40, 000
Furniture 14, 000
Debtors 5000

The purchase consideration is to be paid by the company in fully paid up shares of Rs. 10 each. Pass
the journal entries if the shares are issued:
(a) At par (b) At 10% Discount (c) At 10% Premium
Q3: Pass the following entries of debentures in each case:
(i) Debentures issued at Rs. 90 and redeemable at Rs. 100
(ii) Debentures issued at Rs. 100 and redeemable at Rs. 110.
(iii) Debentures issued at Rs. 110 and redeemable at Rs. 100.
(iv) Debentures issued at Rs. 90 and redeemable at Rs. 110.
(v) Debentures issued at Rs. 100 and redeemable at Rs. 100.
Q4: On 1st July 2001, a firm purchased machinery worth rupees 50, 000 and spend 5000 on its
installation. On July, 2003, a firm purchased another machine worth Rs. 30, 000 on April 2004 first
machine was sold at Rs. 40000.
Depreciation rate is 10% on original cost method.
Prepare machinery account for 5 years.
A company purchased a truck for rupees 400000
Residual value is 20000.
Life of truck is 10 years.
Rate of depreciation is 15%. Prepare truck account for 5 years.