SECTION - A 20 *1 =20

1. A partner’s capital account was credited with ₹80,000 during the year. Which of the
following can be the possibility for such a credit in his capital account?
A. Opening Balance
B. Drawings during the year
C. Loss during the year
D. Capital introduced

2. On 1st July 2024, A, B and C entered into partnership sharing Profits & Losses in the ratio
5:3:2. C was guaranteed that his share of profits will not be less than ₹60,000 p.a.
Deficiency, if any, will be borne by A and B equally. For the year ended 31st March 2025,
firm incurred loss of ₹1,25,000. Deficiency will be borne by A and B as:
A. A ₹30,000 and B ₹30,000
B. A ₹43,750 and B ₹26,250
C. A ₹42,500 and B ₹42,500
D. A ₹35,000 and B ₹35,000

3. Pali Limited offered 2,00,000 shares of ₹10 each at a premium of ₹2 per share.
Applications were received for 1,95,000 shares, which were duly allotted. The amount was
payable as ₹3 on Application (including ₹1 premium), ₹6 on Allotment (including ₹1
premium), and balance on Call. Manoj, holding 6,000 shares, failed to pay allotment money
and his shares were immediately forfeited. Out of the forfeited shares, 4,000 shares were
reissued at ₹11 per share as fully paid up. The amount of Capital Reserve will be:
A. ₹16,000
B. ₹12,000
C. ₹8,000
D. ₹18,000

4. Pista Ltd. took over running business of Vista Ltd. comprising Assets of ₹45,00,000 and
Liabilities of ₹7,50,000 and in consideration issued them 30,000, 9% debentures of ₹100
each at 5% discount and a cheque of ₹10,00,000. Determine the amount of Goodwill or
Capital Reserve.
A. Goodwill ₹9,00,000
B. Capital Reserve ₹9,00,000
C. Goodwill ₹1,00,000
D. Capital Reserve ₹1,00,000
5. Bala and Lala were partners in a firm with Capitals of ₹24,00,000 and ₹16,00,000. They
admitted Mala as a new partner for 1/3 share for which she brings ₹20,00,000 as capital.
There was Investment and Investment Fluctuation Reserve appearing in the books at
₹2,50,000 and ₹50,000 respectively. Bala took over 40% of the Investments at ₹80,000 and
remaining Investments were valued at ₹1,10,000. By what amount will the Revaluation
Account be affected?
A. Debited ₹60,000
B. Credited ₹60,000
C. Debited ₹10,000
D. Credited ₹10,000

6. Jai and Veeru were in partnership sharing Profits & Losses in the ratio 5:3. Their Capitals
were ₹10,00,000 and ₹8,00,000 respectively. The firm also had Reserves of ₹7,00,000.
Normal rate of return was 10%. Firm made average profits of ₹2,30,000 for the year ended
March 31, 2025 (after adjustment of loss of machinery of book value ₹2,00,000 by fire
against which insurance claim of ₹1,50,000 was admitted). Value of goodwill as per
Capitalisation of Super Profits will be:
A. ₹10,00,000
B. ₹3,00,000
C. ₹18,00,000
D. Nil

7. On 1st August 2024, Tom, Jerry and Tyke entered into partnership with capitals of
₹5,00,000 each. Interest on Drawings was to be charged @6% p.a. For the year ended
March 31, 2025, Tyke withdrew ₹80,000. What amount of Interest on Drawings will be
charged from Tyke?
A. ₹4,800
B. ₹1,600
C. ₹3,200
D. ₹2,400

8. A, B and C were partners sharing Profits & Losses in the ratio 7:2:1. B died. A took over
1/20 from his share and remaining share was taken over by C. Determine the new Profit-
sharing Ratio.
A. 4 : 1
B. 7 : 1
C. 71 : 29
D. 3 : 1
9. X, a partner, was assigned to look after the dissolution process and was allowed
remuneration of ₹15,000. Actual realisation expenses amounted to ₹20,000, being paid by
another partner Y. By what amount will the Realisation Account be debited?
A. ₹20,000
B. ₹35,000
C. ₹5,000
D. ₹15,000

10. Arun and Barun were partners sharing Profits & Losses in the ratio 3:2. They admitted
Charan into partnership for 20% share. Charan was to bring proportionate Capital and
brought ₹3,50,000 (including ₹50,000 for goodwill). If adjusted capital of Arun after
Revaluation Gain/Loss, Accumulated Profits/Losses and Goodwill treatment was ₹8,40,000,
what was Barun’s Capital after adjustments?
A. ₹5,60,000
B. ₹3,60,000
C. ₹12,00,000
D. ₹6,60,000

11. Building was appearing in the books at ₹20,00,000 which was overvalued by 25%. What
amount will be shown in the Balance Sheet of a reconstituted firm for Building?
A. ₹25,00,000
B. ₹16,00,000
C. ₹24,00,000
D. ₹15,00,000

12. Arun, Basu and Tarun were partners sharing Profit & Loss in the ratio 5:3:2. Their firm
was dissolved on March 31, 2025. On this date, the following assets and liabilities were
appearing in their books: Building ₹2,00,000; Furniture ₹80,000; Stock ₹70,000; Goodwill
₹10,000; Debtors ₹40,000; Cash ₹20,000; Creditors ₹50,000; Arun’s Loan ₹60,000; Tarun’s
Brother’s Loan ₹30,000. Assets realised for ₹3,40,000. Determine the amount of Realisation
Gain/Loss.
A. Realisation Loss ₹80,000
B. Realisation Gain ₹60,000
C. Realisation Loss ₹60,000
D. No Gain or Loss
13. John and Sourabh were partners sharing Profit & Loss equally. They decided to share
future Profit & Loss in the ratio 3:2. Their manager Arya met with an accident in the office
and his claim for compensation amounted to ₹50,000. The firm had a Workmen
Compensation Reserve of ₹80,000. Which of the following is correct?
A. ₹50,000 will be provided as claim out of Reserve and balance ₹30,000 distributed in old
ratio.
B. ₹50,000 will be provided as claim out of Reserve and balance ₹30,000 distributed in new
ratio.
C. ₹50,000 will be provided as claim out of Reserve and balance ₹30,000 credited to
Revaluation Account.
D. ₹50,000 will be provided as claim out of Reserve and balance ₹30,000 carried forward
without any treatment.

14. Assertion (A): Fluctuating Capital Account can show debit balance.
Reason (R): Losses and Drawings can be more than Capital Balance.
A. Both A and R are correct and R is the correct explanation of A
B. Both A and R are correct but R is not the correct explanation of A
C. A is correct but R is incorrect
D. Both A and R are incorrect

15. Prafful Limited forfeited 15,000 shares of ₹20 each on which ₹8 (including ₹2
premium) was paid. Out of these 13,000 shares were re-issued @ ₹19 per share as fully
paid up. Determine the amount of Share Forfeited balance.
A. ₹90,000
B. ₹91,000
C. ₹12,000
D. ₹16,000

16. Dawn Ltd. purchased Equipment and paid ₹2,20,000 by cheque and issued 16,000
equity shares of ₹10 each at 25% premium. The purchase consideration will be:
A. ₹3,40,000
B. ₹4,20,000
C. ₹3,80,000
D. ₹2,00,000

17. X, Y and Z were partners sharing Profit & Losses in the ratio 5:3:2. Y retired, and he
gifted half of his share to X and remaining half was taken over equally by X and Z. Determine
the new Profit-sharing Ratio.
A. 29 : 11 B. 13 : 7

C. 1 : 1 D. 5:2
18. Raghav and Sahil were partners sharing Profit & Loss in the ratio 5:3. Their capital
balances were ₹7,20,000 and ₹2,80,000 respectively. There were balances of General
Reserve of ₹5,00,000 and Deferred Revenue Expenditure of ₹4,00,000 in the books of the
firm. They admitted Ojasv into partnership for 20% share for which he brings ₹4,00,000 as
capital. Determine the goodwill share of Ojasv.
A. ₹5,00,000
B. ₹1,00,000
C. ₹1,20,000
D. ₹60,000

19. Anuj and Karthik were partners in the form sharing profit and losses in the ratio of 5 : 4
anuj withdrew 20000 in the beginning of every alternate month starting from 1st April
2023 during the year ended 31st March 2024 . Interest on Anuj drawings @6%p.a for year
ended 31st March 2024 will be :

A . 8400

B. 1200

C .4200

D. 3600

20. 4000 shares of 10 each were forfeited for non payment of second and final call of 2 per
share the minimum amount that the company must collect at the time of tissue of these will
be:

A . 8000

B . 32000

C . 40000

D . 48000