REVISION TEST SERIES-1 JULY( LEVEL-BEGINNER)
ACCOUNTANCY (055)
1. Danish, Zaid, and Mihir who were sharing profits and losses equally decided to share the future profits and losses in
the ratio to 5:4:3 with effect from 1st April 2023. An extract of their Balance Sheet as of 31st March 2023 is:
Investment Fluctuation Fund Rs. 85,000, where Investment (cost) Rs. 8,00,000 revalued at market value Rs. 7,06,000.
Journalise the entry.
2. David and Garry are partners in a firm with a capital of Rs. 90,000 and Rs. 80,000 respectively. Zenith brings Rs.70,000
as his capital for 1/4th share in profits. Zenith’s share of goodwill will be?
3. Ayan, Azan, and Aqib are partners carrying on the furniture business. Ayan withdrew Rs. 5,000 at the end of each
month. Azan withdrew Rs.10,000 at the end of each quarter. IOD @ 12% p.a.
4. Kate and Vincent were partners in a firm. On 1st April 2022, the firm had assets of Rs.90,000 including cash of Rs.
8,000. The partners’ capital accounts showed a balance of Rs. 70,000 and reserves constituted the rest. The normal rate
of return is 30% and the average profits of the firm are valued at Rs. 47,000. You are required to find out the value of
goodwill of the firm at 4 years' purchase of super profits.
5. Arjun and Bhim were partners in a firm sharing profits in the ratio 3:2. On 31st March 2023 their capitals were ₹
1,29,000 and ₹ 1,08,000 respectively, Divisible Profits for the year ended 31st March 2023 were ₹ 50,000. Interest on
capital was also provided at @10% p.a. by the partnership deed. Determine interest in Arjun’s Capital for the year
ended. 31.03.2023.(*)
6. Riddhi, Siddhi, and Vidhi were partners sharing profits and losses in the ratio of 7:5:3, w.e.f, 1 April 2023 they decided
to share future profits and losses in the ratio of 5:4:1. Goodwill of the firm on the date of reconstitution was valued at
₹ 3,00,000. The following balances also appear on the date of reconstitution.
General Reserve ₹ 2,40,000
Deferred Revenue Expenditure ₹ 1,80,000
Profit and Loss (Dr.) Balance ₹ 7,20,000
Partners decided to continue with the above three balances in the books of the firm. Pass necessary entries in the books
of the firm. Show your work clearly.(*)
7. Aman and Biswas were partners sharing profits and losses in the ratio of 3:2. They admitted Chetan as a new partner
for a 25% share. The balance sheet of Aman and Biswas was as follows on March 31, 2023.
Liabilities ₹ Assets ₹
Creditors 50,000 Bank 40,000
Employee Provident Fund 60,000 Stock 60,000
Provision on DD 10,000 Debtors 1,00,000
General Reserve 40,000 Furniture 1,20,000
IFR 50,000 Building 1,60,000
Aman`s Capital 2,00,000 Investment 50,000
Biswas`s Capital 1,50,000 Goodwill 30,000
5,60,000 5,60,000
Chetan was admitted on the following terms:-
a) The market value of the Investment is ₹ 20,000.
b) There was a bad debt amounting to ₹ 6,000 and a provision for doubt. Debts are to be maintained at ₹ 9,000.
c) The building was undervalued by 20%.
d) The stock was overvalued by 20%.
e) The goodwill of the firm was valued at ₹ 1,00,000 and Chetan brings his share of goodwill in cash.
f) Chetan was to bring ₹1,30,000 as capital.
Prepare Revaluation Account and Partner’s Capital Account(*)
8. Rey and Ley Associates have three partners named Rakesh, Leena, and Sanjana. Their Capitals were ₹ 4,00,000; ₹
2,40,000 and ₹ 1,60,000 respectively. Sanjana retired on March 31, 2023, and sold her share of profits by taking ₹
30,000 from Rakesh and ₹ 20,000 from Leena. Determine the new ratio.(*)
9. Find a New Profit-sharing Ratio and Gaining and sacrificing ratio.
a) X, Y, and Z are partners in the ratio of 3: 2: 1. Y retired and his share was taken by the remaining partners in 1:2.
b) A and B are partners sharing profits and losses in the ratio of 3 : 2. They admit C for 1/5th share in the profit. C
acquires 1/5th of his share from A and 4/5th share from B.
