Model Test Paper 3 Time Allowed: 3 Hours Maximum Marks, General Instructions: As per Model Test Paper 1 PartA (Accounting for Partnership Firms and Companies) the Balance Sheet of the firm of Nita Compensation Reserve. ant kmen compensation claim J 1. On the date of admission of Ajay as a partner, Rita showed balance of & 80,000 in the Workmen Choose the correct option to record the effect of a wo % 90,000 on the accounts of the partnership firm. (a) The Revaluation Account to be credited with % 10,000. (8) The Revaluation Account to be debited with = 10,000. ; (© The Capital Accounts of Nita and Rita to be debited with = 90,000. (d) The Capital Accounts of Nita and Rita to be credited with % 90,000. jy i i io of 3 . Dis admit 2. A, Band Care partners sharing profits and losses in the ratio o ta The new profit-sharing ratio between A, B, C and D will be 3: 3: 2 2. Goodwill of thy firm is valued at % 1,80,000. D brings his share of goodwill by cheque. Journal enta| for adjustment of goodwill will be: (@ Premium for Goodwill Ale Dr. % 36,000 To A’s Capital A/c % 18,000 To B's Capital A/c = 12,000 To C’s Capital A/e 6,000 () Premium for Goodwill A/c Dr. % 36,000 t To A's Capital A/c % 18,000 To B's Capital A/c & 18,000 (©) C’s Capital Ale Dr. 6,000 Premium for Goodwill A/c wDr. % 36,000 To A’s Capital A/c 36,000 To B's Capital A/c 6,000 (@) None of the above. 3. Assertion (A): Rent paid to a partner is transferred to the debit of Profit & Loss Accout Reason (R): Rent paid to a partner is a charge against the profits. i In the context of above two statements, which of the following is correct? (a) Assertion (A) is correct but Reason (R) is incorrect. | (6) Both Assertion (A) and Reason i correct explanation of Assertion can anal (is not’ () Both Assertion (A) and Reason (R) are incorrect. (® Both Assertion (A) and Reason (R) ; explanation of Assertion (A). @®) are correct, and Reason (R) is the cor"Model Test Papers 4, MS7 Alpha Ltd. forfeited a share of € 100 issued at a premium of 20% for non-payment of first call of € 30 per share and final call of 10 per share. The minimum price at which this share can be reissued is (@ 740. (b) 760. ( %20. @ 7100. Or Coco Light Ltd. issued prospectus inviting applications for 10,000, 10% Debentures. The issue was oversubscribed to the extent of 15,000 debentures. Applications for 3,000 debentures were sent letter of regret and remaining applicants were allotted debentures. Shiva was allotted 700 debentures under pro rata category. How many debentures he must have applied for? (@) 1,000. (b) 940. (© 740. @ 840. re Anil, Sunil and Ramesh are partners sharing profits and losses in the ratio of 5:4: 2. On Ist April, 2024, they decided to share future profits & losses in the ratio of 4:3: 2. On this date, General Reserve was % 87,250 and loss on revaluation of assets and liabilities was % 13,000. They also decided that adjustment should be made without affecting the book figures of assets and liabilities. Which of the following option reflect the correct treatment of the above information? (@) Ramesh’s Capital Alc Dr. % 3,000 To Anil’s Capital A/c % 750 To Sunil’s Capital A/c % 2,250 (®) Anil’s Capital Ale wDr. % 3,000 To Ramesh’s Capital A/c 2750 To Sunil’s Capital A/c 2,250 (© Sunil’s Capital A/e Dr. % 3,000 To Anil’s Capital A/c 2750 To Ramesh’s Capital A/c % 2,250 @) None of the above. Or Profits of a firm for the last four years were as follows: Year (2023-24 I 2022-23 2021-22 2020-21 Profits 2) 90,000 L__ t60.000) 1,30,000 [50,000 Additional Information: , On 1st April, 2022, a major repair cost of € 1,00,000 incurred at the time of Paes second hand machine was debited to Profit & Loss Account. Depreciation is © arge four years is @ 10% p.a. on written down value method. The average profit of the last @ 272,750. (b) % 32,250. a (© % 92,750. @ % 50,250.AN rue ow o— M58 ay he partnership deed is___ | intl S- Interest on capital of a partner provided for 1% pa. i @) @6% Can © oomen co Anyrate. anor, @8%pa. m, at the time of its dissolution, v3 . ip fir 7. Choose the correct order in which @ Dear oes apply the amount realised from the sale of f its a! o by the partners, towards the payment of including any amount contriby ty P Partner's loan Q Firm's debts R_ Balance of partner's capital ; “ S Surplus divided amongst the partners in their profit-shariny @ P,QRS © PSR | © S,P,Q,R @ @P,R,S f 8. Star Ltd. issued 1,00,000, 9% Debentures of € 100 each at 10% discount and redeematy,| at a premium. Loss on Issue of Debentures was € 20,00,000 which was written off frog Statement of Profit & Loss. The amount at which each debenture will be redeemeq (a) 7105. (b) % 110. (© %115. (d@) % 120. Or Prabhat Ltd. issued 50,000, 8% Debentures of & 100 each at a discount of 5% an redeemable at a premium. Loss on Issue of Debentures was written off —& 3,00,000 | from Securities Premium and % 7,00,000 from Statement of Profit & Loss. What is th g ratio f premium payable per debenture on redemption? Sy @eo () %15 © %5 (@ %20 ul son (R) are Correct, by Assertion (A), 10. A, Band C entered int to ‘ in the ratio of 3:2:1. A berg ni? OM 1st October, 2028 t interest on Capital @ 5S%paa, ean Suaranteed that Cs shareot ot of ne ‘2. would not be less th, ° croft ate : 7 after allow 30, P 000 p.a. Capital contributie” (uModel Test “apers 11. 1 13. 4. M59 were A-% 3,00,000; B-% 2,00,000 and C-% 1,00,000. Profit for ; ,00, -% 1,00,000. the year ended 3st March, 2024 was ® 1,20,000. Deficiency to be charged to A will be nv @ %2,500. (6) 5,000. (© %7,000. (d) No Deficiency is to be charged. Or Aman and Chaman are partners in a firm. On 1st July, 2023, Aman advanced loan of %6,00,000 to the firm. There is no partnership deed. On 31st March, 2024, Aman was entitled to get the following amount as interest on loan: @ % 36,000. (b) % 18,000. (© %9,000. (@ % 27,000. fet) Gross Profit of a partnership firm is ¥ 20,50,000 and indirect expenses (before manager’s commission) are = 70,000. Manager is entitled to a commission of 10% on net profit after charging his commission. Manager’s Commission will be (@ %1,95,000. (® %2,00,000. (©) &1,80,000. (d) %1,98,000. {1 Select the correct statement from the following options: (a) A debentureholder gets dividend on his debentures from the company even if the company has incurred loss. (® A debentureholder receives interest on his debentures from the company only if the company has earned profit. (© Adebentureholder receives interest on his debentures from the company only after dividend has been paid by the company to its shareholders. @ A debentureholder receives interest on his debentures from the company even if the company has incurred loss. a BILT Ltd. issued for subscription 2,00,000 shares of t 10 each at a premium of %2 per share payable 7 (including premium) on application and balance on allotment. Applications were received for 6,00,000 shares. Applications for 3,00,000 shares were rejected and pro rata allotment was made to remaining applicants. The due amount was duly received. Amount received on allotment will be () %3,00,000. (b) % 4,00,000. © %5,00,000. (@ %6,00,000. ) Aaa and Naresh are partners sharing profits in the ratio of 5 : 3. They admitted : re Ce sth share of profits, for which he paid % 2,40,000 towards capital os ae itor goodwill. Capitals are to be proportionate in profit-sharing jaurabh’s Capital. Capital balances for each partner will be () %6,00,000; & 2,40,000 and ¥ 2,40,000. (©) % 6,00,000; & 2,40,000 and & 3,60,000. ©) %6,00,000; & 3,60,000 and ¥ 2,40,000. © %6,00,000; % 3,60,000 and ¥ 8,60,000. aM60 “| in the beginning of each month throughout the yg awn nts are withdi ca me t on drawings 16 15. Ifequal a f 0 calculate interes formula Rate of Interest , 5.5 @ Total Drawings * — 0 Rate of Interest , 65 (b) Total Drawings* 90-12 Rate of Interest & (© Total Drawings 39032 Rate of Interest , 5 (@ Total Drawings * 700 12 01 r . f each quarter and interest on drawin, i ithdrew € 16,000 at the end of € t i Seay q1, "440 at the end of accounting year, ie., 31st March, 2024. Wha was e h is the rate of interest on drawings charged? @ 6%p.a. (b) 8% p.a. (© 10% pa. @ 12% pa. \ At the time of dissolution of ‘partnership firm if amount paid for a liability is not give of the liability is paid. 1 4 it is assumed the - @ Market Value (b) Book Value (©) Book Value or Market Value, whichever is higher (@ Book Value or Market Value, whichever is less Hemant and Daksh were partners in a firm sharing profits in the ratio of 5 : 3. Thee} fixed capitals on 31st March, 2024 were: Hemant t 60,000 and Daksh 80,000. They| agreed to allow interest on capital @ 12% p.a. Profit of the firm for the year endei| 31st March, 2024 before allowing interest on capital was € 12,600. Pass necessary Journal entries for the above transactions in the books of the firm| Also show your Working Notes clearly. a 18. Ankit, Bobby and Kartik were partners in a fit i i irm shai 5:7: 8. Their fixed capitals were: ace eae Ankit—z 5,00,000; Bobby— 7,00, i , provided for the following: 1000 and Kartik—X 8,00,000. Their partnership de a ware on capital @ 10% pa. ii) Sala ra Ine 10,000 per month to Kartik. crest on drawings @ 12% p.a. Ankit withdrew % 40,001 2023 and Kartik withdrew % 30, ft! 17.Model Test Papers M.61 Asha, Bhim and Chitra are partners in a firm. For the year ended 31st March, 2024, profit of the firm %1,20,000 was distributed equally among them, without giving effect to the following terms of the partnership deed. @ Bhim’s guarantee to the firm that the firm would earn profit of at least % 1,35,000. Shortfall, if any in profit will be met by him. (ii) Profits to be shared in the ratio of 2: 2:1. You are required to pass the necessary Journal entries to rectify the error in accounting. (3] 19. Apple Orchards Ltd. purchased machinery for % 50,00,000 from Passi Machines on 1st January, 2024. It paid the amount as follows: (@) Issued a cheque of & 10,00,000 dated 1st February, 2024; and () by taking loan from bank of 40,00,000. It issued 50,000, 10% Debentures of € 100 each to bank as Collateral Security. Pass the Journal entries in the books of Apple Orchards Ltd. assuming that the company has not recorded the issue of debentures as Collateral Security. Or Premium Energy Ltd. took over the business of Premium Transmission Ltd. having assets of & 2,00,00,000 and liabilities of = 50,00,000 for a consideration of % 1,88,00,000. The consideration was paid by (@) issuing a cheque of € 18,00,000; (b) issuing 1,00,000, 8% Preference Shares of 100 each at a premium of % 10 each, redeemable at par; (© Balance amount was paid by taking a loan from Bank and 90,000, 12% Debentures of Z 100 each as Collateral Security. Pass the Journal entries in the books of Premium Energy Ltd. for payment of consideration and Bank Loan, including issue of debentures as Collateral Security. [3] 20. Calculate goodwill of a firm on the basis of three years’ purchase of the weighted average profit of the last four years. Profits of these four years ended 31st March, were: Year Ended 31st March, 2021 31st March, 2022 | 31st March, 2023 31st March, 2024 Profit ®) 404,000 49600 | 40000 | _—_ 600000 The weights assigned to each year ended 31st March are: 2021—1; 2022—2 2023-8 and 2024—4, You are provided with the following additional information: (® On 31st March, 2023, a major plant repair was undertaken for © 1,20,000 which was accounted as expense. It is to be capitalised for goodwill calculation subject to adjustment of depreciation @ 10% p.a. on Reducing Balance Method. (i) Closing Stock for the year ended 31st March, 2022 was overvalued by = en ek 3]21. Farm Land Ltd. issued 60,000 shares of & 10 each at a premium of 82 per s 5 SE XH hare pa as% 3 on application, ® 5 (including premium) on allotment and the balance on first My final call. Applications were received for 92,000 shares. Shares were allotted as foto! (@ Applicants of 40,000 shares 30,000 shares, (ii) Applicants of 50,000 shares 30,000 shares, and iti i Nil. (Gi) Applicants of 2,000 shares Nil, i Rajesh, who had applied for 800 shares in Category (i) and Somesh, who wa; 600 shares in Category (ii) did not pay the allotment money. You are required to: / (@) Calculate the amount received on allotment of shares; (6) Pass the Journal entries for the amount received as allotment mone. Calls-in-Arrears Account; and y (© Explain how Calls-in-Arrears will be shown in the Note to Accou Share Capital. S allott,, Y usin, nts oy, u 22. A, B, Cand Dare partners in a firm sharing profits and losses in the ratio 4: 3.9 Their Balance Sheet as at 31st March, 2024 was as under -—~ Liabilities z Assets z Capitals: Fixed Assets A 2,00,000 Current Assets. B 150,000, c 1,00,000 D 50,000 | 5,00,000 Sundry Creditors 80,000 Workmen Compensation Reserve 60,000 i 640000] on 23. From the 1st April, 2024, partners decided to share future profits in 3:1:2: 41a. For this purpose, goodwill of the firm was valued at ¥ 90,000. The partners also agt- for the following: @ The claim for Workmen compensation ha: (@) To adjust the capitals of the partner opening Partners’ Current Accounts, You are required to prepare Revaluation Acco On 1st April, 2023, Mehar Lt premium of 6%, redeemable balance of € 30,000 in Securities Premium Account. @ Pass re peaury Journal entries for issue of debe issue of Debentures’ utilising Seeuriti, i baad g Securities Premi s been estimated at € 70,000. rs according to new profit-sharing ratio unt and Partners’ Capital Accounts. 4, issued ® 10,00,000, 7% Debentures of & 100 each at a premium of 4% after five years, The company hat ntures and for writing off ‘Los um Account at the end of the li® ‘es Account’ for the year ended Bist, 2024. 2024. The company paid interest on acter eres fF the year ending Bist Me ” debentures annually on 31st March. YPMonet 1e06 capers M.63 (@ Kranti Limited forfeited following Equity Shares of 10 each of € 2 per share. (@ 700 shares issued to Rakesh for the non-payment of second and final call of % 3 per share. (ii) 500 shares issued to Gopal for the non-payment of first call of ¥ 2 per share and second and final call of = 3 per share. issued at a premium Forfeited shares were reissued to Rajesh for = 11 per share fully paid. Pass the entries to record the forfeiture and reissue of shares. (b) Shiv Ltd. forfeited 2,000 shares of % 10 each (fully Called-up) for non-payment of the allotment money of & 6 per share including % 2 as premium. Of these, 1,500 shares were reissued to Gaurav at % 9 per share fully paid. Journalise the above transactions regarding the forfeiture and reissue in the books of Shiv Ltd. (6) 24, Amit and Balan are partners in a firm sharing profits in the ratio of 2 : 1. Chander is admitted in the firm for 1/4th share in profits. He brings % 3,00,000 as his capital. The Balance Sheet of Amit and Balan as at 31st March, 2024 was as under: BALANCE SHEET OF AMIT AND BALAN as at 37st March, 2024 — Liabilities z= Assets z Creditors 1,20,000 | Cash at Bank 1,50,000 General Reserve 60,000 | Debtors 80,000 Workmen Compensation Reserve 30,000 | Stock 1,50,000 Capital A/cs: Machinery 2,50,000 Amit 5,20,000 Building 400,000 Balan 3,00,000 | _8,20,000 1030,000 Other terms of the agreement are as under: (@ Chander will bring & 1,20,000 as his share of goodwill. (ii) Building was valued at % 4,50,000 and Machinery at ¥ 2,30,000. (iii) Provision for Doubtful Debts is to be created @ 6% on debtors. (iv) A workmen compensation of % 12,000 to be adjusted against the Workmen Compensation Reserve. The balance of the reserve is not to be distributed and be adjusted by opening Chander’s Current Account. Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the new firm. Or Ganesh, Harish and Anil were partners sharing profits and losses equally. Harish died on 30th June, 2022. Following entry was passed for the treatment of goodwill: Date _| Particulars ur] ong) | co®@ Ganeshis Capital A/c 24,000 Anils Capital A/c 12,000 To Harish’s Capital A/c 36,000) (Goodwill adjusted by debiting g ) _t—__BEE SIE Sy x Harish’s share of profit till date of death was estimated as % 60,000, based on «i previous year's profit. Amount payable to Harish’s executor on the date of death nl determined as % 3,30,000 without considering the following: Unrecorded asset (Furniture) taken by Harish earlier € 50,000. Unrecorded liabilities assumed by the executors of Harish & 5,000. (@ What is the correct amount due to Harish’s executors? (ii) Pass the necessary Journal entry to record Harish’s share of the profit up to th, date of death. (i) Pass the Journal entries relating to Harish's Executors Account till fing settlement if he was paid % 60,000 on 30th June, 2022 and balance was to 4, paid in two equal annual instalments starting from 30th June, 2023 togethe, with interest rate as specified in Section 37 of the Indian Partnership Act, 8 25. Sagar, Virat and Anoop were partners in a firm sharing profits in the ratio of 3: 1:1, On 31st March, 2024, they decided to dissolve their firm. On that date their Balanc, Sheet was as follows: BALANCE SHEET OF SAGAR, VIRAT AND ANOOP as at 31st March, 2024 Liabilities Z| Assets uy Creditors 11500 | Bank 6000 Loan 3,500 | Debtors 48,400 Capitals: Less: Provision for Doubtful Debts 2,400) 46,000 Sagar 50,000 Stock-in-Trade 16000 Virat 25,000 Furniture 2,000 ‘Anoop 14,000 | 89,000 | Sundry Assets 34000 104,000 1,04000 It was agreed that: @ Sagar was to take Furniture at % 2,600 and Debtors amounting to % 40,000 a % 34,400 and creditors of € 10,000 were to be paid by him at this figure. (i) Virat was to take stock-in-trade at % 14,000 and some of the Sundry Assets a % 28,800 (being 10% less than the Book Value). (ait) Anoop was to take remaining Sundry Assets at 90% of the book value and assum: the responsibility for the discharge of the loan. (uv) es remaining debtors were sold to a debt collecting agency for 50% of the bod value. The expenses of dissolution ® 600 were paid by Anoop, | | Prepare Realisation Acco 1 tnt, Bank Account and Partners’ Capital Accounts. (6 26. Casio Ltd. was formed with authorised capi equity shares of € 10 each. The company allotted 4,Moaet fe08 eee - . M.65 The company did not make call during the year. Applications were recei shares. All money were duly received except the allotment Tamey on en eee aanich were forfeited. Later 500 of the forfeited shares were reissued at € 0 nor ne GO per share, &8called-up. “Answer the following questions on the basis of the above information: L State the amount of Authorised Capital of the company. . (@) © 5,00,000 (b) %8,00,000 (o €12,00,000 (@ %12,30,000 IL State the amount of Issued Capital. (@ © 2,00,000 () % 30,000 (o € 2,70,000 (@ %2,50,000 IIL State the amount of Subscribed and Fully Paid-up Capital. (@ © 1,60,000 (6) &1,00,000 (© % 70,000 (@ %2,00,000 1V. State the amount of Subscribed but not Fully Paid-up Capital. (@ © 1,20,000 (&) % 1,48,000 (© © 1,60,000 (@ %2,00,000 V. State the balance of Forfeited Shares Account’ after reissue of shares. (@ %6,000 (&) & 7,500 (2 € 8,000 (@ %5,000 VI. State the amount of share capital which will be shown in the Balance Sheet of the company. @ %2,20,000 (© % 2,29,500 (b) %2,25,000 (d) % 2,25,500 [6] PartB (Analysis of Financial Statements) 27. Which of the following transactions results in increase in both Current Ratio and Quick Ratio? @ Sale of Non-current Asset for Cash. (©) Sale of Stock-in-trade at loss. (b) Cash payment of a Non-current Liability (d) Purchase of Stock-in-trade for Cash. Or Which of the following is a tooV/tools of Analysis of Financial Statements? (®) Cash Flow Statement. (ii) Statement of Profit & Loss. (iii) Notes to Accounts. (iv) Balance Sheet. Choose the correct option: @ @ () @ and Gi) © @ @, (i) and (iv) it a— 28, 29. 30. Equity and Liabilities 2024) | 20237 Surplus, ie, Balance in Statement of Profit & Loss 11,00,000 | 5,000 Dividend Payable 31. An Aid to Accountancy—CBsr y, From the following information, calculate ‘Proprietor’s Funds’: Current Assets % 20,00,000 Non-current Assets % 40,00,000 Long-term Borrowings % 25,00,000 Proprietary Ratio 25% (@ %10,00,000 (6) % 14,00,000 (©) = 24,00,000 (d) 7 15,00,000 Objective of analysis of financial statements is / (a) to determine liquidity and long-term solvency of the enterprise. (B) to determine operating efficiency with which resources are utilised in generat, revenue. (© to determine profitability with respect to sales and investment. (@) All of the above. Or Current Liability as per Schedule III of the Companies Act, 2013 is that liability whic) (@) Expected to be settled in the company’s normal operating cycle. (6) Due tobe settled within 12 months after the reporting date, i.e., Balance Sheet d;; (©) Held primarily for the purpose of being traded. (@) All of the above. Following is the extract of Balance Sheet of Max Ltd. for the year ended 31st March, 200 31st March, | 31st 50,000 Additional Information: Proposed Dividend in the years ended 31st M: ee ee ‘arch 2023 and 2024 were & 7,00,000 2: Which of the fol] Items? ‘Owing options is correct as Net Profit before Tax and Extraordit @) %6,40,000. b) © %11,40,000, (®) %8,40,000. @) %13,00,000 Classify the following it — Balance Shean 8 items under the ma; or heads and sub. 8 company as per Sch, 0 (0 Provision for Warrantiog, ®t of the Compan i) Income received in Advance (ii) Licenses and Franchises (iv) Building under Construction, () Investment in Land and Buea: suild: (i) Finished Goods, 8 Cong-term), heads (if any) in ‘ies Act, 2013:eS ‘Model Test Papers M67 go, From the following Balance Sheet of Aman India Ltd. as at 31st March, 2024, prepare Comparative Balance Sheet: Note No.] 3istMarch, | 31st March, 2023) Particulars Ps [EQUITY AND LIABILITIES 4. Shareholders’ Funds (a) Share Capital 280,000 | 1,80,000 (6) Reserves and Surplus 110,000 | 1,00,000 2. Non-Current Liabilities Long-term Borrowings 0,000 | 20,000 ey Current Liabilities Trade Payables 50,000 Total '5,10,000 Ml, ASSETS 1, Non-Current Assets (0), Property Plantand Equipmentand Intangible Assets: whit (i) Property, Plant and Equipment 2,80,000 | — 1,80,000 ‘| i) Intangible Assets 50,000 30,000 (6) Non-current investments 80,000 50,000 te 2. Current Assets (@) Inventories 70,000 30,000 (6) Cash and Cash Equivalents 30,000 40,000 Total 5,10,000 3,30,000 3] 33. (a) Cash Revenue from Operations (Cash Sales) 60% of Credit Revenue from Operations Operations & 5,20,000, Closing Trade Receivables (Credit Sales). Revenue from £80,000, Opening Trade Receivables 3/4th of Closing Trade Receivables. Compute Trade Receivables Turnover Ratio. . : (6) Calculate Operating Profit Ratio if Operating Ratio is 20%. oh + wm P or Fe @ Current Liabilities € 1,60,000, Liquid Ratio is 1.5 : 1 and Current Ratio 2.5: 1. Calculate Inventory (Stock), Quick Assets and Current Assets. (®) Revenue from Operations 7,20,000, Gross Profit 20% on Revenue from Operations, (it Operating Expenses ® 36,000. Calculate Operating Profit Ratio. ia] 34, y % © Calculate Cash Flow from Investing Activities for the year ended S1st March, 2024 _——ftom the following information: 'articule = Be Bist March, 2024 2) | 31st March, 2023 %) hecuna teY 15,00,000 12,00,000 126 nen (2,40,000) (1,80,000) Good 4,00,000 3,00,000 Patens 1,20.000at me An Aid to Accountancy —CBsp Additional Information: 1. During the year ended 31st March, 2024, Machinery costing & 1,50,000 , sold at a loss of % 30,000. 2. Depreciation charged during the year was % 1,00,000. 3. Additional Investments were purchased on 1st July, 2023. (i) From the following particulars, calculate the Cash Flow from Operating Activit + Profit earned during the year 2023-24 was % 1,00,000 after considering ¢ following item: Particulars z Depreciation on Fixed Assets 40 Amortisation of Goodwill 20 Transfer to Reserve : 28 Gain on Sale of Land MW Loss on Sale of Furniture 5 Provision for Tax 40,01 ¢ Following is the position of Current Assets and Current Liabilities: Particulars [ closing ® | Openings Trade Receivables, 4800 Trade Payables : 000 Inventories 400 Outstanding Expenses 1,600 Provision for Tax