Q.I.

----------~ CBSE Sample Question Paper 2020

How are the following items presented in financial statements of a Not-for- Profit organisation:
(a) Tournament Fund '80,000 {b) Tournament expenses '14,000 (l rnark)
Ans.
Balance Sheet of Not-for- Profit organisation as on _ _
Liabilities Amount ( ') A..etl
Tournament Fund Amount{')
80,000
66,000
Less: Tournament expenses
(WQQ)
Q.2. Calculate the amount of medicines consumed during the year ended 31st March, 2019:
(3 marks)
Particulars Amount ( ' )
Opening Stock of Medicines
50,000
Closing stock of Medicines
45,000 more than opening stock
Amount paid for medicines during the year
2,00,000
Opening Creditors
20,000
Closing Creditors
50% of opening creditors
OR
Distinguish between Income and Expenditure Account and Receipt and payment Account on basis of:
(i) Nature (ii) Nature of items (iii) Period (3 marks)
Ans. Statement Showing Expenditure on Medicine consumed during the year ending 31st March,2019:
Particulars Amount (?)
Amount paid for medicines during the year 2,00,000
Add: Opening Stock of medicines 50,000
Less: Closing stock of medicines (95,000)
Less: Opening Creditors (20,000)
Add: Closing creditors I 0,000

Medicine consumed during the year

1,45,000
OR
Basis of distinction Income and Expenditure Account
Receipt and Payment Account
Nature
It is like as profit and loss account, hence is a It is the summary of the cash book, hence a real
nominal account. account.
Nature of Items
It records items of revenue and expense nature only. It records receipts and payment of cash and bank.
Period
Items in Income and Expenditure account relate Receipts and payments items may relate to
to the current period. preceding and succeeding periods.
Q.3.
From the following Receipts and Payments Accounts of Rolaxe Club, for the year ended 31st March, 2019,
prepare Income and Expenditure Account for the year ended 31st March, 2019. (6 marks)

Receipts Amount C) Payments Amount r>

To Balance b/d By Advenisement 13,100
Cash in hand 17,050 By Rent rates and Taxes 14,000
Current ale with bank 18,570 By Repairs 15,000
To Donations 20,000 By Printing and Stationery 16,000
To Proceeds from charity Show 16,200 By Government Bonds 5,000
To Subscription 52,000 By Telephone Expenses 1,000
To Life membership fees 5,250 By Furniture (purchased on 1st July, 2018) 70,000
To Entrance Fees 6,000 By Balance dd
To Interest on investment@ 7% for the 7,2Q9.- Cash in hand
3,170
5,000
1,42,270 1,42,270
 Additional Information:
(i) Depreciate furniture by 15% p.a.
(ii) There were 416 Life Memb 3 •
. , ers on 1.3.20 I 8 the subscription payable by each member, ro be a life time
mem b er 1s 125
(iii) Subscription outstanding on 31st March, 2018 ' 6,000
Subscription outstanding on 31st March, 20 J9 7,000
Subscription received in advance on 31st March, 2018 '4,000
Subscription received in advance on 31st March, 2019 '5,000
Ans.
Dr. Income and Expenditure Account for the year ended 31st March,2019 Cr.
Expenditure Amount ( ') Income Amount n
To Advertisement 13,100 By Donations 20,000
To Rent, Rares and Taxes 14,000 By Proceeds from Charity show 16,200
To Repairs 15,000 By Subscription 52,000
To Printing and Stationery 16,000 By Entrance fees 6,000
To Telephone expenses 1,000 By Interest on investments 7,200
To Depreciation on furniture 7,875
(70,000 X 15/100 X 9/12)
To Surplus (excess ofincome over expenditure) 34,425
1,01,400 1,01,400

Working Notes: Calculation of income from subscriptions for the year ended 31st March, 2019:
Dr Subscription Account Cr
Amount ( ') Particulars Amount(')
Particulars
6,000 By Subscription in advance at end 4,000
To Subscription in arrears in the beginning 52,000
52,000 By Receipts and Payments Ne
To Income and Expenditure Ale (Bal Fig.) 7,000
5,000 By Subscription in arrears at end
To Subscription in advance at end
63,000
63,000
 Accounting ftor N ot-1or-Pro6t
1:
Organisations
f;,ne allowed : 45 min.
fl,J The basis of accounting of preparing 'In d . , Maximum M11rlu : 20
'<.: • come an Expenduure Account of a not-for-profit organisation is
----- (Fill in the blank) 1 mark
fl 2 Following items are related to Aisko Club for ch d d M .h
'<-' e year en e 31 arc , 2019.

1,50,000
Tournament Fund Investments
1,50,000
Income from Tournament Fund Investments
18,000
Tournament Expenses
12,000
Prizes Paid
5,000
Additional Information: Interest Accrued on Tournament Fund Investments ' 6,000.
How much balance of Tournament Fund will be shown in the Balance Sheet of Aisko Club as on 31 March,
2019?
(a) ' 1,56,000 (b) ' 1,62,000
(c) ' 1,51 ,000 (d) ' 1,57,000 (Choose the correct alternative) I mark

Q.3 What is the treatment of the following items in the financial statements of a not-for-profit organisation?
(a) Life Membership Fees (b) Subscriptions received in advance
(c) Legacy 3 marks
Q.4 From the following information, calculate the amount of subscriptions due for the year ended 31.3.2020 if there
are 1,000 members and each paying '300 p.a. as subscription. 3 marks
Particulars I Amount (' )
Subscriptions received during the year 2019-20 3,00,000
Subscriptions received in advance as on 31.3.2020 36,800
Subscriptions outstanding as on 1.4.2019 32,000
Subscriptions received in advance as on 1.4.2019 25,000

CalcuIate t h e amoun t o f stationery to be debited to Income and Expenditure Ale for the year ending 31 3March,
marks
2020:
\ Amount ( ' )
Particulars
10,000
Cash purchases of stationery
61,000
Payment to creditors of stationery
20,000
Book value of stationery sold
7,000
Creditors for stationery on 1.4.2019
14,750
Creditors for stationery on 31.3.2020
20,000
Stationery on 1.4.2019 25,000
Stationery on 31.3.2020 11,000
Advance paid for stationery to creditors on 31.3.2020
 .~ ~-:--- - - - -- - - - - -- - - - - - - - - -- -- - - - - - - ----.. .
Q.6 From the following extract of Receipts and Payments Account of Sonic club and the given additional inform .
show the Salaries items in the Income and Expenditure Account for the year ending 31st Dec. 2020
1
an: : ,

Balance Sheet as on 31st December, 2020. c

An Extract of Receipts and Payments Account for the year ending 31st December, 2020
Receipts I Amount (' ) I Payments j Amount (' )
By Salaries
2019 20,000
2020 2,80,000
2021 18,000
Additional Information: Salaries outstanding on 31.12.2019 '25,000; Salaries outstanding on 31.12.2020
... 45,000 and Salaries paid in advance on 31.12.2019 '10,000 3 marks
Q.7 Following Receipt and Payment Account was prepared from the cash book of Delhi Charitable Trust for the year
ending December 31, 2020
Dr. Receipt and Payment Account for the year ending December 31, 2020 Cr.
Receipts / Amount ( ') / Payments I Amount( ' )
To Balance b/d By Charity 11,500
Cash in hand 11,500 By Rent and taxes 3,200
Cash at bank 12,600 By Salary 6,000
9,000 By Printing 600
To Donation
42,800 By Postage 300
To Subscription
18,000 By Advertisements 4,500
To Legacies
4,500 By Insurance 2,000
To Interest on investment
200 By Furniture 21,600
To Sale of old newspapers
By Investment 23,000
By Balance cl d:
Cash in hand 9,900
Cash at bank 16,000
98,600 98,600

Prepare Income and expenditure account for the year ended December 31,2020, and a balance sheet as on that
date after the following adjustments:
(a) It was decided to treat one-third of the amount received on account of donation as income.
(b) Insurance premium was paid in advance for three months.
(c) Interest on investment ... 1,100 accrued was not received.
(d) Rent ... 600: salary --900 and advertisement expenses ... 1,000 outstanding as on December 31, 2020.
6 marks
 Accounting for Not-for-Prof'it Organisations
r;rne allowed : 45 min. Maximum Marks : 20
Q.l AdJ·ustment for outstanding and prepai'd expenses are not reco rded .m Receipts
. an d Payments Account because
(Complttt tht smttnct) 1 mark
Q.2 From the following information, calculate what amount of subscription to be credited in the Income and
Expenditure Account of Bharat Sports Club for the year ending 3 1 March, 201 9.

Particulars I For the year cruled .11 st I For the year ended JI st
March, 2018 March, 2019
Advance Subscription 8,000 9.500
Outstanding Subscription 7,000 12,500
During year, the dub received '1,20,000 as subscription which included ' 5,000 for the year ending 3 1st March,
2018. (Choose tht correct alternative) 1 mark
(a) '1,37,000 (b) '1,24,000
(c) '1,35,000 (d) '1 ,19,000

Q.3 Distinguish between Receipts and Payments Account and Income and Expenditure Account on the basis of:
(i) Basis of Accounting (ii) Period (iii) Closing Balance 3 marks

Q.4 From the following information calculate the amount of 'Spores Material' co be debited to Income and
Expenditure Account of Young Football Club for the year ended 31st March, 2020.

Particulars I Amount (' )

Opening Srock of Spores Material 21,000
Closing Stock of Sports Material 24,000
Opening Creditors Srock of Sports Material 23,500
Closing Creditors Stock of Spores Material 27,000

During the year the creditors for sports material were paid '1 ,10,000. 3 marks

Q.5 From the following particulars , prepare Income and Expenditure account of a not-for-profit organisation for
the year ending 31.3.2020: 6 marks
Details I Amount ( ')
Fees collected, including '80,000 on account of the previous year 5,20,000
30,000
Fees for the year outstanding
Salary paid , including '5,000 on account of the previous year 68,000
3,000
Salary outstanding at the end of the year
8,000
Entertainment expenses
25,000
Tournament expenses
18,000
Meeting Expenses
7,000
Traveling Expenses
Purchase of Books and Periodicals, including '31,000 for purchase of Books 40,000
15,000
Rene
6,000
Postage, telegrams and telephones
18,000
Printing and Stationery
25,000
Donations received
Q.6 The following is the Receipts & Payments Account of Queen's Club for the year ended March 31st 2020.
Receipts I Amount (') I Payments I Amount( ')
To Balance b/d 1,82,000 By Salanes 1,66,000
To Subscriptions 1,80,000 By Stationery 32,000
To Tournament Fund 1,64,000 By Rent 48,000
To Interest on investments 65,000 By Telephone expenses 8,000
To Donations 1,12,000 (paid up to 31 July 2020) 78,000
To Sale-concert tickets 2,47,000 By Sports Material 5,00,000
By Investments @6% p.a. 24,000
By Miscellaneous Expenses 58,000
By Concert Expenses 36,000
By Balance cl d
9,50,000 9,50,000
Additional information: {a) Subscriptions include '12,000 for 2018-19 and '18,000 for 2020-21. {b) Stock of
stationery on 31st March, 2019 and 2020 was '7,200 & '5,400 respectively. Stock of Sports material at the
beginning and end of the year was '12,000 and '21,000 respectively. {c) Rent includes '4,000 paid for March,
2019. Rent for March, 2020 is outstanding. (d) The value of Building as on 31st March 2019, was '8,00,000
and you are required to write off depreciation at 10%. The value of investments on 31st March, 2019 was
'10,00,000 and the club made similar additional investments during the year on 1st October, 2019.
Prepare the Income & Expenditure Account of the club for the year ended March 31st 2020. 6 marks
 Accounting for Not-for-Profit Organisations
firne allowed : 45 min. Maximum Marks : 20
nd
Q.1 Receipts a Payments Account of a club on 31.3.2020 shows a receipt of '5,250. There were 416 life
2 9 th
memberson 31.3, 0l e subscription payable by each member, to be a life time member is '125. How many
cotal life members are there on 31.3.2020? How much amount of total life membership fees has been added to
the capital fund on 31.3.2020? I mark

Q.2 Which of the ~allowing _is never shown on the 'Payment side' of Receipts and Payments Account but is shown as
an expense while preparmg Income and Expenditure Account? (Choou the co"ect alternative) I mark
(a) Depreciation on fixed assets (b) Outstanding expenses
(c) Loss on sale of fixed assets (d) All of the above
Q.3 From the following information, calculate the amount of income from subscriptions co be shown in the Income
and Expenditure Account for the year ended 31-3-2020: 3 marks

Details I Amount (' )

Subscriptions received during the year 2019-2020 3,40,000
Subscriptions outstanding as on 31-3-2020 47,000
Subscriptions received in advance as on 31-3-2020 35,000
Subscriptions outstanding as on 1-4-2019 28,000
Subscriptions received in advance as on 1-4-2019 25,000

Q.4 How would you treat the following items in the case of a 'not-for-profit' organisation for the year endinksg
31.3.2020? · · 3 mar

Deta1·t s Amount ( ' )

Tournament Fund 40,000
Tournament Expenses 14,000
Receipts from Tournament 16,000
Table Tennis match expenses 4,000

Q.5 The Receipt and Payment Account of Harimohan charitable institution is given:
Receipt and Payment Account for the year ending March 31, 2020

Receipts I Amount ( ' ) I Payments Amount ( ' )

To Balance b/d By Furniture 3,000

22,000 By Investments 55,000
Cash at Bank
8,800 By Advance for building 20,000
Cash in Hand
32,000 By Charities 60,000
To Donations
50,200 By Salaries 10,400
To Subscriptions
60,000 By Rent and Taxes 4,000
To Endowment fund
24,000 By Printing 1,000
To Legacies
I
3,800 By Postage 300
To Interest on Investment '
800 By Advertisements 1,100
To Interest on Deposits
500 By Insurance 4,800
To Sale of old newspapers
By Balance c/d:
Cash at bank 32,000
Cash in hand 10,500
2,02,100 2,02,100
 Prepare Income and Expenditure Account for the Year ended on March 31 , 2020 after considering the follow·
(i) Trear 50% of the amount received on account of Legacies and Donations as income. Ing:
(ii) Liabilities to be provided for are:
Rent ' 800; Salaries '1 ,200 ; advertisement ' 200.
(iii) ' 2,000 due for interest on investment was not actually received. 6 marks
Q.6 Prepare Income and Expenditure Account and Balance Sheet for the year ended March 31, 2020 from the
following Receipt and Payment Account and Balance Sheet of culture club: 6 marks
Receipt and Payment Account for the year ending March 31, 2020

Receipts I Amount( ' ) I Payments I Amount( ' )

To Opening cash balance 12,000 By Furniture 4,000
To Sub~cription By Telephone expenses 800
2018-19 2,000 By Salary
2019-20 22.000 24,000 2018-19 1,000
To Entrance fees 2,800 2019-20 4.000 5,000
To Locker rent 1,000 By Newspapers 700
To Life membership fee 1,200 By Sundry expenses 1,000
To Government grant 11,000 By Defence bonds 18,000
By Land 20,000
By Closing cash balance 2,500
52,000 52,000
Balance Sheet for the year ending March 31, 2019
Liabilities I Amount (') I Assets ! Amount (' )
Advance locker rent 200 Cash in hand 12,000
Subscription received in Advance 1,000 Outstanding subscription 3,000
Outstanding salary 2,000 Building 35,000
Loan 10,000
Capital fund 36,800
50,000 50,000
 Objective Type Questions 2.1

1. By virtue of Section 464 of the Companies Act, 2013 the Central Government is empowered to prescribe maximum number
of partners in a firm but the number of partners cannot be more than _____ (Choose the correct alternative)
(a) so (b) 100
(c) 20 (d) 10
2. The partnership deed should be properly drafted and prepared as per the provisions of the _____ and preferably
registered with the (Fill in the blanks)
3. Persons who have entered into partnership with one another are individually called and collectively called
(Fill in the blanks)
4. Partnership firm cannot have a separate legal entity. True/False? Give reason.
s. The central government has prescribed the maximum number of partners in a firm to be _____ under the act
(Fill in the blanks)
6. There cannot be a partnership with an oral agreement between the partners. True/False? Give reason.
7. Piyush and Yash purchase and sell land on a frequent basis for the purpose of making profits. They will be called
partners. True/False? Give reason.
8. Roshni and Gloriya join hands to construct a charitable hospital to help the underprivileged section of the society. They are
said to be in partnership. True/False? Give reason .
9. The business of a partnership concern may be carried on by all the partners or any of them acting for all. This is called the
element of _____ between all the partners. (Fill in the blank)
10. "The business of a partnership concern may be carried on by all the partners or any of them acting for all:' The above
statement has two implications. First, that there exists a relationship of mutual agency between all the partners. Which of
the following statement highlights the second implication of the given statement? (Choose the correct alternative)
(a) The agreement between partners should be to carry on some business.
(b) A partner can bind other partners by his acts and also is bound by the acts of other partners with regard to business
of the firm.
(c) Every partner is entitled to participate in the conduct of the affairs of its business.
(d) Each partner is liable jointly with all the other partners and also severally to the third party for all the acts of the firm
done while he is a partner
11. Which of the following elements of the nature of partnership is so important that there would be no partnership, if this
element is absent? (Choose the correct alternative)
(a) Agreement (b) Sharing of profit
(c) Lawful business (d) Mutual agency
12. "The liability of a partner for acts of the firm is unlimited." Which of the following statement best describes the unlimited
liability of a partner? (Choose the correct alternative)
(a) Each partner is liable jointly with all the other partners and also severally to the third party for all the acts of the firm
done while he is a partner.
(b) A partner's private assets can also be used for paying off the firm's debts.
(c) A partner can be declared insolvent on his failure to pay the firm's debts.
(d) All of the above
 h document containing terms of the agreement among th e partners o f a ft rm .,s called (~,·ii ,·n the blank)
13 T e r
14. The clauses of a partnership deed can be altered. _ _ _ _1i_r_u_e/False? Give reason.
· Which of the following cannot be a content of the partnership deed? (Choose the correct alternative)
15
· (a) Rules regarding operation of Bank Accounts
(b) The rights, duties and liabilities of each partner
(c) Method of settlement of disputes among the partners
(d) None of the above

16. can a partner be exempted from sharing the losses in a firm? If yes, under what circumstances?
17. Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They contributed equal
amounts and purchased a building for '2 crores. After a year, they sold it for '3 crores and shared the profits equally. Are
they doing the business in partnership ? Give reason in support of your answer.
18. A partnership firm has SO members. All the partners have agreed to admit Ram and Mohan as new partners. Can Ram and
Mohan be admitted? Give reason in support of your answer.
19. Valid partnership can be formulated even without a written agreement between the partners. True/False? Give reason.
20. Each partner carrying on the business is the principal as well as the agent for all the other partners.
True/False? Give reason.
21. Methods of settlement of dispute among the partners can't be part of the partnership deed. True/False? Give reason.
22. The business of the firm can be conducted even by one partner. True/False? Give reason.
23. A, Band C decided that interest on capitals will be provided to each partner @ 5% p.a. But after one year C wants that no
interest on capital is to be provided to any partner. State how 'C' can do this?
24. A firm should have a partnership deed because _ _ _ __ (Complete the sentence)
25. A group of people wants to form a partnership firm . The maximum number of partners can be ______ and the
name of the Act is (Fill in the blanks)
 Objective Type Questions 2.2
1. Interest on Partner' s loan is debited to _ _ _ _ _ and credited to
,. _ _ . _ . (Fifi in the blanks}
2. A and Bare partners in a firm without a partnership deed. A 1s an active partner and claims a salary of '18 ooo
State with reasons whether the claim is valid or not. ' per month.
3. Ram and Mohan are partners in a firm without any partnership deed. Their capitals are: Ram '8 oo 000 d M
, , an ohan
'6,00,000. Ram is an active partner and looks after the business. Ram wants that profit should be shared in proporti
capitals. State with reason whether his claim is valid or not. on of
4. A partnership deed provides for the payment of interest on capital but there was a loss instead of profits during the year
2019-20 .At what rate will the interest on capital be allowed? (Choose the correct alternative}
(a) 9% p.a. (b) 6% p.a.
(c) The rate specified in the partnership deed. (d) No interest on capital will be allowed.
5. In the absence of partnership deed, the profits of a firm are divided among the partners: (Choose the correct alternative}
(a) In the ratio of capital (b) Equally
(c) In the ratio of time devoted for the firm's business (d) According to the managerial abilities of the partners
6. In the absence of Partnership Deed, interest on loan of a partner is allowed: (Choose the correct alternative)
(i) @ 8% per annum. (ii) @ 6% per annum.
(iii) no interest is allowed. (iv) @ 12% per annum.
7 . In the absence of partnership agreement, interest on drawings of a partner is charged: (Choose the correct alternative)
(i) at 6% per annum . (ii) at 9% per annum.
(iii) at 12% per annum. (iv) no interest is charged.
8. Kanha, Neeraj and Asha were partners in a firm. They admitted Raghav their landlord as a partner in the firm. Raghav
brings sufficient amount of capital and goodwill premium for his share in the profits. Raghav had given a loan of '1,00,000
@ 10% p.a. interest to the partnership firm before he became the partner. Now the accountant of the firm is emphasizing
that the interest on loan should be paid @ 6% p.a . Is he right in doing so ? Give reason in support of your answer.
9. Alka, Barkha and Charu are partners in a firm having no partnership agreement. Alka, Barkha and Charu contributed
'2,00,000, '3,00,000 and '1,00,000 respectively. Alka and Barkha desire that the profits should be divided in the ratio of
capital contribution. Charu does not agree to this. How will you settle the dispute?
10 Mand N are partners having capitals of '50,000 and '1,00,000 respectively. on 1 April 2020, p was admitted with a capital
· of '2,00,000. At t~e end of the ye_ar 2020, the firm earned a profit of ' 30,000. How should the profits be distributed among
partners, if there 1s no partnership deed? (Choose the correct alternative)
(a) Equally . (b) In the ratio of 1:2:4
(c) In the ratio of l: 2 :3 (d) None of the above
ll. Xand Yare equal ~a~ners. They had advanced a loan of '40,000, contributed equally to the firm on 1st August, 2019. The
partnership deed is silent regarding the payment of interest on loan. What amount of interest on loan is payable to X, if
the firm closes its books of account on 31st March every year? (Choose the correct alternative)
(a) Nil (b) '2,400
(c) '1,600 (d) '800
12. You and your friends Amit and Vinod are partners in a firm sharing profits and losses equally. State, who is correct in the
following case? Give reasons also.

Amit has provided a capital of '50,000 whereas Vinod provided '10,000 only as capital. Vinod, however, has provided
'20,000 as loan to the firm. There is no partnership agreement. Vinod claims interest of '1,200, whereas you and Amit do
not want to give any interest.

13. A and B are equal partners with fixed capitals '1,00,000 and '80,000 respectively. Interest on capital is paid @ 6% p.a.
During the year ended on 31st Dec., 2020, the firm incurred a loss of '20,000. A claims interest on capital, whereas B does
not agree. Settle their dispute.
14. Shyam had advanced a loan to the firm. He claims interest @ 10% per annum. State whether the claim is valid if the
partnership agreement is silent on the above matter. Give reason in support of your answer.
15. Sanjana and Vanshika are partners in a firm. Sanjana wants interest on capital to be credited @ 6% per annum. State
whether the claim is valid if the partnership agreement is silent on the above matter. Give reason in support of your
answer.
16. If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner.
True/False? Give reason.
17. Interest on partner's loan is to be given@ 12% p.a. if the deed is silent about the rate. True/False? Give reason.
18. The Partnership Deed is silent on payment of salary to partners. Arnita, a partner, claimed that since she managed the
business, she should get a monthly salary of '10,000. Is she entitled for the salary? Give reason.
19. Akshat, Bilal and Charu are partners dealing in the sale of sports equipment. Akshat, without the knowledge of Bilal and
Charu, is also running the business of supplying sports equipment to a few sports clubs in which his son is a member. He is
earning good profits from this business but did not inform Bilal and Charu about this. Was Akshat correct in doing so?
2
0, Interest on money advanced by a partner to the firm beyond the amount of his capital for the purpose of business is paid
@ 6% p.a. True/False? Give reason.
2
1. Interest on partner's loan shall be paid even if there are losses in the business. True/False? Give reason.
 ~=~-----------------
Objective Type Questions 2.5

1. X and Y are partners sharing profits and losses in the ratio of 3 2 h I fi d I I f · 1 SO 000 d · 2 00 000
respectively. The partnership deed provides for : av ng xe cap ta s o , , . an , ,
·n ,ooo. Interest on capital@ 8% p.a. The Net Profit of the firm during 2019-20 was

In what ratio the appropriation of profit will be made?

(a) 3 : 2 (b) 1 : 1
(c) 3 : 4 (d) 4 : 3
2. A and Bare partners in a firm sharing profit In the ratio of 3 : 2. Their Balance Sheet as on 31 March 2020 Is given below:

Liabilities
I Amount(') I Assets ' Amount ( I
A's Capital 30,000 Drawings:
B's Capital 1Q.QQQ 40,000 A 4,000
B Z.QOQ 6,000
Other Assets 34,000
40,000 40,000

Net Profit during the year ·s,ooo was divided without providing for interest on capital @ 10% p.a.
What will be the amount of Interest on A's Capital ?
(a) '3,000 (b) Nil
(c) ' 3,100 (d) ' 2,700
3. Under which of the following situation interest on partners' capitals shall not be provided?
(a) If the firm has incurred net loss during the year.
(b) If partners' capitals are equal and their profit sharing ratio is also equal.
(c) Both (a) and (b)
(d) If the net profit is less than the total amount payable to partners as interest on capitals.
4. Anna and Bobby were partners sharing profits and losses in the ratio of 5 : 3. On 1st April, 2019 their capital accounts
showed balances of ' 3,00,000 and '2,00,000 respectively. The partnership deed provided for interest on capital @10%
p.a. and the firm earned a profit of '45,000 for the year ended 31st March, 2020. The interest on partners' capitals will be :
(a) ' 30,000 and ' 20,000 respectively
(b) ' 27,000 and '18,000 respectively
(c) ' 22,500 and '22,500 respectively
(d) None of the above
5. Following is the extract of the Balance Sheet of, Neelkanth and Mahadev as on March 31, 2020, who share profits and
losses in the ratio of 3:2:
Balance Sheet as at March 31, 2020

10,00,000 Sundry Assets 30,00,000

Neelkanth's Capital
Mahadev's Capital 10,00,000
Neelkanth's Current Account 1,00,000
Mahadev's Current Account 1,00,000
Profit and Loss Appropriation (March 2020) 8,00,000
30,00,000
30,00,000

During the year Mahadev's drawings were '30,000. Profits during 2019-20 is '10,00,000. Profits were distributed without
providing interest on partners' capitals.
The interest on capitals @ 5% p.a for the year ending March 31, 2020 will be:
(a) '20,000 and '31,500 respectively
(b) '50,000 each
(c) '25,000 each
(d) '27,000 and '18,000 respectively
1. Interest on drawings is always calculated for full year on the total drawings. True/False? Give reasons.
2. If the drawings are made at regular intervals, as on the first day of each month, interest on drawings is calculated for an
average period of______ (Choose the correct alternative)
(a) 6.5 months (b) 6 months
(c) 5.5 months (d) 7.5 months
3. The average period in months for charging interest on drawings for the same amount withdrawn at the beginning of each
quarter is________ (Fill in Blanks)
4. A and B are partners in a firm having capitals '5,00,000 and '10,00,000 respectively. The partnership deed provides for
charging interest on drawings @ 5% p.a. A withdrew '40,000 for his personal use during the year 2019-20. B withdrew
'2 1 00I 000 from his capital 1.1.2020. The amount of interests that will be charged on partners' drawings are:
(Choose the correct alternative)
(a) A '1,000; B '5,000 (b) A '2,000; B '10,000
(c) A '1,000; B Nil (d) A '2,000; B Nil
 ~
. g of eve,, montn Ju, .,, _. (Choose the corre~t ~it'ui 9.20.
ernoti
. ount in the beginnrn drawings? ~e)
5. Yash, a partner withdraws a fixed am I I tion on interest on ½ onths
What will be the average period for ca cu a (b) 5: z ~onths .
(a) 6½ months (d) 2½ ount of interest that will be charged
th
(c) 3½ months h If year during 20 2o; e am (Choose the correct alte,in ~er
the end of each a Oti~ej
6 If a partner withdraws '10,000 at
· . · . (b) '2 000
drawings @ 10% p.a. is. , '
(a) '1,000 (d)
5
oo . 2019 _2 0. What interest will be charged on .
(c) '250 . . of each half year during (Choose the correct alte,n,,}is
. hd 'SO 000 at the beginning ~uvej
7. A partner wit rew ,
drawings@ 5% p.a .? (b) ' 1,250
375
(a) :i,soo (d) - i, January to June, 2020. What will be the avera
1
(c) 3, 750 . t at the end of every mon th from (Choose the correct alternati ~
8. A partner withdraws a fixed amo;n wings? h \le
period for calculating interest on ra . (b) 5 ½ mont s
(a) 6½ months (d) 2½ months .
(c) 3½ months ·thdrew 'l,000 p.m. regularly on the first day of ever'f
Ram and Shyam are partners sharing profits/losses equally. _R:;e:1 on drawings is charged @ 5% p.a. What will be the
9. month during the year 2019-20 for personal expenses. If m (Choose the correct alternative)
interest on the drawings of Ram? (b) ' 27
(a) 'SO (d) '325
(c) '600 . t ovides that interest on drawings should be charged
10. Verma and Kaul are partners in a firm . The partnership agreemen pr

@ 6% p.a. . . What will be the interest on Kaul's drawings during the year
2019
Kaul withdrew '3,000 per quarter, starting from April Ol, · (Choose the correct alternative)
2019-20?
(b) '90
(a) ' 180
(c) '270 (d) '450 . .
Himanshu withdrew '2,SOO at the end of each month. The Partnership deed provides for charging the interest on drawings
ll. @ 12% p.a. What will be the interest on Himanshu's drawings for the year ending 31st December, 2017? .
(Choose the correct alternative)
(a) '300 (b) '137.50
(c) '1,650 (d) ' 1,800
12. Bharam is a partner in a firm. He withdraws ' 3,000 at the starting of each month for 12 months. The books of the firm
closes on March 31 every year. The interest on drawings @ 10% p.a. will be: (Choose the correct alternative)
(a) '300 (b) '1,950
(c) '3,600 (d) '1,650
13. Amit and Bhola are partners in a firm. They share profits in the ratio of 3:2. As per their partnership agreement, interest
on drawings is to be charged @ 10% p. a. Their drawings during 2020 were '24,000 and '16,000, respectively.
What will be the interest on partners' drawings based on the assumption that the amounts were withdrawn evenly,
throughout the yea~: (Choose the correct alternative)
(a) Interest on Amit s Drawings, ' 1,200 and Interest on Bhola's drawings '800
(b) Interest on Amit's Drawings, '2,400 and Interest on Bhola's drawings '1 600
(c) Interest on Amit's Drawings, '14,400 and Interest on Bhola's drawings
(d) None of the above '
'9
600

14. Dev withdrew '10,000 on 15th day of every month Int t d . t

on Dev's drawings will be: · eres on rawmgs was to be charged @ 12% per annum. lnte~esJ
(a) '14,400 (Choose the correct alternat1ve
(c) '1,200 (b) '7,200
(d) None of these
15. ?ne of the partners in a partnership firm has withdrawn '9 0 e
mter~st on drawings at the rate of 6% per annum will be· , 00 at the end of each quarter, throughout the year. :he)
(a) 540 · (Choose the correct alternatlV
(c) '810 (b) '2,160
(d) None of these
 Accounting for Part b• ,
ners tp Fmns - Basic Concepts
lJowed : 45 min.
f;,ne a Maximum Mar/ts : 20
A and B are partners in a firm sharing profit 111
· h. .
Q.l t c ratio of 3 : 2. Th eir Balance Sheet on 3 1.3.20 is given bc:low:

Drawings:
40,000 A 4,000
B 2...QQQ 6.000
O ther Assets 34 .000
40,000 40,000
Net Profit during the year '5,000 was divided without pro 'd' c • • I @ I 001.
v1 111g wr 111ccresr on cap1 ra ro p. a.
What will be the amount of Interest on A's C · I) · ) k
apita • (Choose the correct alterrultlve I mar
(a) '3,000 (b) Nil (c) '3 , I00 (d) ' 2,700
Q.2 X and Y are part~ers sharing profits and losses in the ratio of 3 : 2 having fixed capitals of ' 1,50,000 and
'2,00,0~0 respectively. T~e partnership deed provides for interest on capital @ 8% p.a. The Net Proflt of the
firm dunng 2019-20 was 21,000. In what ratio the appropriation of profit will be made?
(Choose the correct alternative) 1 mark
(a} 3 : 2 (b) 1 : 1 (c) 3 : 4 (d) 4 : 3
Q.3 A and B are partners. The net divisible profit as per Profit and Loss Appropriation Ne is '2,50,000. The total
interest on partner's drawing is '4,000. Ns salary is '4,000 per quarter and B's salary is '40,000 per annum. The
net profit/loss earned during chis year was: (Choose the correct alternative) 1 mark
(a) '3,02,000 (b) '1,98,000 (c) '3,06,000 (d) '2,50,000
Q.4 Explain briefly the provisions of the Indian Partnership Act, 1932 if there is no express agreement on
(i) Remuneration for firm's work (ii) Interest on Advances (iii) Interest on Drawings. 3 marks
Q.5 Rajiv and Sanjeev were partners in a firm. Their partnership deed provided that the profits shall be divided as:
First '20,000 to Rajeev and the balance in the ratio of 4 : 1.
The profits for the year ended 31st March, 2020 were '60,000 which had been distributed among the partners.
On 1-4-2019 their capitals were Rajeev '90,000 and Sanjeev '80,000. Interest on capital was co be provided
@ 6% p.a. While preparing the profit and loss appropriation interest on capital was omitted.
Pass necessary rectifying entry for the same. Show your workings clearly. 4 marks
Q.6 The partnership agreement between Maneesh and Girish provides that: (i) Profits will be shared equally.
(ii) Maneesh will be allowed a salary of '400 p.m. (iii) Girish who manages the sales department will be allowed
a commission equal to 10% of the net profits, after allowing Maneesh's salary. (iv) 7% p.a. interest will be
allowed on partner's fixed capital. (v) 2.5% p.a. interest will be charged on partner's annual drawings irrespective
of the period of drawings. (vi) The fixed capitals of Maneesh and Girish are '1,00,000 and '80,000, respectively.
Their annual drawings were '16,000 and 14,000, respectively. The net profit for the year ending March 31,
2020 amounted to '40,000.
Prepare firm's Profit and Loss Appropriation Account for the year ending March 31, 2020. 4 marks
Q,7 (a) Ram and Shyam were partners in a firm sharing profits in the ratio of 3 : 5. Their Fixed Capitals were: Ram
'5,00,000 and Shyam '9,00,000. After the accounts of t~e year had been closed, it was ~ound that inte~est
on capital at 1Oo/oper annum as provided in the partnership agreement has not been credited to the Capital
Accounts of the partners. Pass a necessary entry to rectify the error.
(b) X, y an d z are partners sh arm
· g profits and losses in the ratio of 3:2:1. After the final
. accounts
. have. been
Prepared 't di
, 1 was scovere
d that interest on drawings @ 5% p.a. had not
th
been taken mto
d' ·
cons1derat1on. The
· ofth e partners were : X ·15 ,000·, y '12 ,600·' Z '12 ' 000.Give e necessary a JUstmg( journal entry.
drawmgs
3 + 3) 6 marks
 Accounting for Not-for-Profit Organisations and Accounting for Partnership Finns
Time allowed : 1 hr. 30 min. Maximum Marks : 40
Q.l Receipt and Payment Account is equivalent to profit and loss account . True/Falu? Give reason. \ mark
Q.2 Which of the foll owing is not incl uded in the major sources of income of not-for-profit orga nisations?
(a) Government grants (b) Legacies
(c) Income from investments (d) None of these (Choou the correct alternative) \ mark
Q.3 Roshni and Gloriya join hands to construct a charitable hospital to help the underprivileged section of the
society. They are said to be partnership. True/False? Give reason. I mark
Q.4 Interest on Partner's Loan is debited to _ _ _ _ _ and credited to _ _ _ _ _ (Fill in the blanks) l mark
Q.5 Which of the following transactions is always recorded in the partner's capital account irrespective of whether the
partners capitals are fixed of fluctuating? (Choose the correct alternative) 1 mark
(a) Interest on partner's loan (b) Additional capital introduced
(c) Permanent withdrawal of capital (d) Both (b) and (c)
Q.6 On the basis of the information given below calculate the amount of Stationery to be debited to the 'Income and
Expenditure Account' of Good Health Spores Club for the year ended 31st March 2020:
Particulars I 1.4.2019 c> I 31.3.2020 (' )
Stock of Stationery 8,000 8,000
Creditors for Stationery 9,000 9,000
Stationery purchased during the year ended 31 .3.2020 was '47,000. 3 marks
OR
Present the following items in the Balance Sheet of Queen's Club as at 31st March, 2020:
Details j Amount (')
Capital fund (1st April, 2019) 10,80,000
Building fund (1st April, 2019) 4,80,000
Donation received for Building 6,00,000
10% Building fund Investment (1st April, 2019) 4,80,000
Interest received on Building Fund Investments 48,000

Additional Information: Expenditure on construction of building '3,60,000. Construction work is in progress

and has not yet been completed. 3 marks
Q.7 From the Receipt and Payment Account given below, prepare Income and Expenditure Account of Clean Delhi Club:
Dr. Receipt and Payment Account for the year ending March 31, 2020 Cr.
Receipts j Amount ( ') j Payments I Amount ( ')
To Balance b/d (Cash in hand) 3,200 By Salary 1,500
To Subscriptions 22,500 By Rent 800
To Entrance Fees 1,250 By Electricity 3,500
To Donations 2,500 By Taxes 1,700
To Rent of hall 750 By Printing and Stationery 380
To Sale of investments 3,000 By Sundry expenses 920
By Books purchased 7,500
By Govt. bonds purchased 10,000
By 10% Fixed deposit (31.12.2019) 5,000
By Balance cl d
Cash in hand 400
Cash at bank .L.iQ.Q 1,900
33,200 33,200
3 marks

.
 Q.8 Distinguish between fixed capital and fl
(iii) Credit Balance. OR
Explain the following features of p
M arc h 31
.

h'
.
uctuatmg capital on the basis of (i) Adjustments (ii) Fixed : : : ~
.
artners 1p: (a) Liability of Partnership (b) Mutual Agency (c) Agreement
-
Q.9 On st, 202 0, t h e balances · h • I · ·
fi fl dd . tn t e capita accounts of Ekta, Ankit and Chahat after making adJuscments
ohr prho i~s an rawmg_s wlered' l ,50,000, ' 2, 10,000 and '2,70,000 respectively. Subsequently it was discovered
t at t e mterest on capita an drawing h d b . d - h "- r h d d h 20
• 1 20 000 D · h Ek . s a een omme . f e prone ror t e year en e 31st Marc , 20 was
. • •al . · ~rmg t _e yehar ta Withdrew ' 24 ,000 and Ankit and Chahat each withdrew a sum of '24,000
10st
tn equ a _mel ~ts lllbt e middle of each quarter. The interest on drawings is to be charged @ 5% p.a. and
interest on capita 1s to e a1lowed @ lQOA Th "- h , • h
. . o p.a. e prone s armg ratio among t e partners was l : 2 : 3.
Showing your working notes clearly, pass the necessary rectifying entry. 4 marks
OR
A and B are partners in a firm sharing profits in 3 : 2. On 31.3.2020, Balance Sheet of che firm was as follows:

Sundry Assets 80,000

80,000
80,000 80,000
The pr~fit of '80,000 for the year ended 31.3.2020 was divided between the partners without allowing interest
on_capital@ 12% ~er an~um and a salary to A at '1,000 per month. During the year A withdrew '10,000 and
B 20,000. Pass a smgle Journal entry to rectify the error.
Q.10 Kavica and Pradeep are partners, sharing profits in the ratio of 3 : 2. They employed Chandan as their
manager, to whom they paid a salary of '750 p.m. Chandan deposited '20,000 on which interest is payable
@9% p.a. At the end of 2020 (after the division of profit), it was decided that Chandan should be treated
as partner w.e.f. Jan. 1, 2017 with I/6th share in profits. His deposit being considered as capital carrying
interest @ 6% p.a. like capital of other partners. Firm's profits after allowing interest on capital were as
follows: 2017 - Profit '59,000; 2018 - Profit '62,000; 2019 - Loss '4,000; 2020 - Profit '78,000.
Record the necessary journal entry to give effect to the above. . 4 marks
OR
A, B and C are partners in a firm sharing profits in the ratio of 3: 1: 1. Their capitals as on 1.4.2019 were '4,00,000,
'1,60,000 and '1,20,000 respectively. Their partnership deed provides for: (a) Interest on capitals @2.5% p.a.,
(b) Salary to A '18,000 p.a., (c) Commission to B @10% of divisible profit after charging such commission.
On 1 October 2018 Chad advanced '1,00,000 to the firm beyond the amount of his capital for the purpose of
business. Net Profit for the year 2019-20 from the business of the firm was '80,000 after charging interest on C's
loan. Before the accounts were closed, it was discovered that C was carrying on a business of the same nature with
that of the firm and earned a profit of 'l 0,000 from that business. So, he was held liable as per the provisions of the
Partnership Act, 1932. Prepare Profit and Loss Appropriation Ne for the year ended 31 March, 2020.
Q.11 X and Y are partners in a firm sharing profits and losses in the ratio of 2: 1. Their fixed capitals are '5,00,000 and
'3,00,000 respectively. Interest in capital is allowed@ 9% p.a. while interest on drawings is charged 12% p.a. X
is allowed a salary of '4,000 per month. Interest on Y's loan of '2,00,000 is to be provided @ 6% p.a. During
the year ended 31 march, 2020, X's drawings were '60,000 and Y's drawings were '72,000. 5% of the net profit
is to be transferred to general reserve. Incomplete Profit and Loss Appropriation Account for the year ended 31st
March, 2020 prepared by the firm is given below:
Incomplete Profit & Loss Appropriation Account for the year ended 31st March 2020

Particulars I Amount (') I Assets I Amount (')

To Interest on Capital: By Profit & Loss Ne (Net Profit) ················
X's Current Ne ................ By Interest on drawings:
Y's Current Ne ................ ................ X's Current Ne ................
To Salary: Y's Current Ne ................ ················
X's Current Ne ................
To General Reserve 15,000
To Profit transferred to:
X's Current Ne ················
Y's Current Ne ················ ················
················ ················
Complete the Profit and Loss Appropriation Account ofX and Y for the year ended 31st March, 2019. 6 marks
Q.12 Namanjyot Society showed the following position:
Balance Sheet as at 31st March, 2020

Capital Fund
l ,iahili1ic,

Subscription received in advance

:: .
,\111011111 ( · > I
Furniture
Cash at Bank
A"cts Amou,u ( ' )
•I III

Cash in Hand
94,000
Dr. Receipt and Payment Account for the year ending March 31, 2020
Cr.
R<·u ·ip1, I ,\111011111 ( · > I PaynH·nh I Amount( ' )
To Balance b/d By Computers ( 1. 102019) 1,00,000
Cash at Bank 30,000 By Office Expenses 29,00Q
Cash at Hand 2.4....Q_Q.Q 54,000 By Electric Charges 1s,ooo
To Sale proceeds of old newspaper 900 By Postage and Stationary 9,000
To Locker's Rent 7,000 By 10% Investments (on 1.12.2019) 60,00Q
To Interest on Investments 1,600 By Balance c/d
To Entrance Fees 50,000 Cash at Bank 80,000
To Life Membership Fees 1,00,000 Cash in Hand 32,200 1, 15,500
To Membership Subscriptions 98,000
To Subscriptions for Relief Fund I 7,000
3,28,500 3,28,500
Additional Information:
(i) Computers were to be depreciated @ 60% p.a. and furniture @ 10% p .a.
(ii) Subscription included '20,000 received in advance.
(iii) Electric charges outstanding '10,000.
Prepare Income and Expenditure Account for the year ending 31st March, 2020 and the Balance Sheet on that date.
6 marks
Q.13 From the following Receipt and Payment Account of Jan Kalyan Club, prepare Income and Expenditure Account
for the year ending March 31, 2020.
Dr. Receipt and Payment Account for the year ending March 31, 2020 Cr.
- - - Receipts ] Amount ( ' ) I Payments j Amount ( ' )
To Cash in hand as on 1.4.2019 6,800 By Salaries 24,000
To Subscription 60,200 By Traveling Expenses 6,000
To Donation 3,000 By Stationery 2,300
To Sale of furniture (Book value ' 6000) 4,000 By Rent 16,000
To Entrance fee 800 By Repair 700
To Life membership fee 7,000 By Books purchased 6,000
To Interest on investment 5,000 By Building purchased 30,000
(@ 5% for full year) By Cash in hand as 31.03.2020 1,800
86,800 86,800
Additional Information:

f P~rticulars f As on 01.04.2019 f As on 31.03.2020

(i) Subscription received in advance 1,000 3,200
(ii) Outstanding subscription 2,000 3,700
(iii) Stock of stationery 1,200 800
(iv) Books 13,500 16,500
(v) Furniture 16,000 8,000
(vi) Outstanding rent 1,000 2,000
6 marks
 Accounting for Partnership Firms
. e allowed : 45 min.
ft¢ Maximum Marks : 20
Dev withdrew '10,000 on 15th day of . .
Q, 1 Interest on Dev's drawings will be: every month. Interest on drawings was 10 be charged @ 12% per annum.
-14 400 (b) - (ChooJt thu omct altmianve) I mark
(a) ' d . I 7 •200 (c) ' 1,200 (d) None of these
Q. Under fixe capita method, the partn er's capita
• I acco unt balance always remains fixed.
2
· d Ah True/False? Give reasons. 1 mark
' I(anha,R NheeraJb an
• · a c-nrm. They admitted Raghav their Landlord as a partner in t he
sffia .were partners '"
Q3
fi:m· alg av fn~lgsoosuooloClent amount of capital and goodwill premium for his share in the profits. Raghav had
given a oan fo h fl, , . @ 10% p·a· interest· to t he partnership firm before he became the partner. Now t he
accou~tan~ 0 t. e ir~ is _emphasizing that the interest on loan should be paid @ 6% p.a.
Is he right m doing so . Give reason in support ofyour answer. 1 mark
Q.4 Jain, ?upta, and Singh were partners in a firm. Their fixed capitals were : Jain '4,00,000 ; Gupta '6,00,000
and Si~gh I0,0_0,~00. _They were sharing profits in the ratio of their capitals. The firm was engaged in the
processing and diSrnbuuon of flavoured milk. The partnership deed provided for interest on capital at 10% per
annum. During the year ended 31st March 2020 the firm earned a profit of '1,47,000.
Showing your working notes clearly, prepare Profit and Loss Appropriation Account of the firm. 3 marks
OR
On 1.4.2019, Brij and Nandan entered into partnership to construct toilets in government girls schools in the
remote areas of Uttarakhand. They contributed capitals of '10,00,000 and '15,00,000 respectively. Their profit
sharing ratio was 2 : 3 and interest allowed on capital as provided in the Partnership Deed was 12% per annum.
During the year ended 31.3.2020, the firm earned a profit of '2,00,000.
Prepare Profit and Loss Appropriation Account of Brij and Nandan for the year ended 31.3.2020. Show your

workings clearly.
Q.5 On March 31st, 2020, the balances in the capital accounts ofEsha, Manav and Daman after making adjustments
for profits and drawings were '3,20,000, '2,40,000 and '1,60,000 respectively. Subsequently, it was discovered
that the interest on capital and drawings had been omitted. The profit for the year ended on 31st March, 2020
was '90,000. During the year, Esha and Manav each withdrew a sum of '48,000 in equal instalments in the
middle of every month and Daman withdrew '60,000. The interest on drawings was to be charged @ 5% p.a.
and interest on capital was to be allowed @ 10% p.a. The profit sharing ratio of the partners was 3 : 2 : 1.
Showing your workings clearly pass the necessary rectifying entry. 6 marks
Q.6 On 1 April 2019, Sameer and Yasmin commenced a business in partnership with their fIXed capitals of
'15,00,000 and '10,00,000 respectively. They agree to share profits in the ratio of 3:2.
The books are closed on March 31, every year. Interest on capitals, salary and commission for partners are
allowed even if it involves the firm to incur a loss. Interest on capital is provided @5% p.a. and Interest on

drawing is charged @ 12% p.a.

3,00,000
Additional capital contributed on July 1, 2019 20,000
30,000
Drawings (during 2019-2020) 20,000
Salary 7,000
10,000
Commission 60,000 40,000
Share in loss for the year 2019-2020
Calculate the amount of net profit during the year 2019-20 and prepare partners' capital and current accounts.
8 marks