AS PER NEW SYLLABUS MARKS: 80 MARKS
Q1. Attempt any THREE of the following. (15 marks)
A. Answer in one sentence only: (5 MARKS)
(1) What is Partnership Deed?
Ans: A partnership deed is a written agreement duly stamped, signed and registered document containing the terms and conditions of the partnership.
(2) What is Bill of Exchange?
Ans. A bill of exchange is a negotiable instrument containing an unconditional order signed by the maker directing a certain person to pay a certain sum of money only to the bearer of the instrument.
(3) What do you mean by Scrap Value of an asset?
Ans: The net amount which is expected to be realised on the final disposal of a fixed asset is called ‘scrap value’.
(4) What are Noting Charges?
Ans: Noting charges are the fees charged by the Notary Public for noting the dishonour on the face of the bill and in his official register.
(5) What is Single Entry System?
Ans. It is an unscientific system of recording transactions where only one aspect of the transaction is recorded.
B. Write the word / Term / Phrase which can substitute each of the following statement:
1. A person who draws a bill of exchange. (Drawer)
2. Winding up of partnership business. (Dissolution of partnership firm)
3. The credit balance of Profit and Loss Account. (Net Profit)
4. An excess of assets over liabilities. (Capital)
5. The account which shows change in the values of assets. (Revaluation Account)
C. Select the most appropriate alternative from the given below and rewrite the statement:
1. There are ______ parties to a bill exchange. (Three)
a. Three b. Two c. Four d. Five
2. In case of dissolution assets and liabilities are transferred to ____ account. (Realisation)
a. Bank b. Partner's Capital c. Realisation d. Partner's Current.
3. When goodwill is withdrawn by old partners _________ Account is credited. (Cash or Bank)
a. Cash or bank b. Capital c. Revaluation d. Profit and Loss adjustment.
4. Generally incomplete records are maintained by ______ (Trader)
a. Trader b. Company c. Society d. Government
5. Excess of income over expenditure is termed as _____(Surplus)
a. Deficit, b. Profit c. Surplus d. Loss
D. State whether the following statements are True or False.
1. Single entry system is based on certain rules and regulations. (False)
2. Not for profit concern do not have profit motive. (True)
3. Bill of exchange is an instrument in writing, containing an unconditional order. (True)
4. A bill of exchange is signed by the person on whom it is drawn. (True)
5. Realisation loss is not transferred to insolvent partner's capital account. . (False)
E. Prepare bill of exchange from the following details. (5 marks)
Drawer - Shekhar Desai, Shastri Road, Mahad.
Drawee – Sharad Verma, Narayan Peth, Pune.
Amount - Rs. 3500/-
Period - 3 months.
Payee - Mukund Pande, Panvel
Date of Bill Drawn – 21st June, 2007
Date of Acceptance - 23rd June, 2007
Q2. Following is the records of Mr. Raj were kept on single entry system. ( March 2009 board exam questions) (MODIFIED)
OR
Particulars
|
31.3.2013
|
31.3.2014
|
Stock
Furniture
Plant and machinery
Loan taken
Bank balance
Debtors
Creditors
|
15000
53500
42500
21000
1900
43000
18000
|
14000
44000
55500
21000
2100
35000
14900
|
Mr. Raj invested Rs. 4000 in the business. Also he had withdrawn Rs. 15000 for his private expenses from business. Rs. 500 to be provided for bad debts. Depreciate plant and machinery @5% and furniture @ 5%.
Prepare : (1) statement of affairs as on 31.3.2013. (2) statement of affairs as on 31.3.2014. (3) statement of profit and loss for the year ended on 31.3.2014.
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OR
Q2. A. State the Objectives of Analysis of Financial Statements.(4)
(B) What is Cash Flow Analysis? (4)
Q3. The Balance Sheet of Rajkumar and Rajendra kumar as on 31st March, 2012 is set out below, they share profits and losses in the ratio of 2:1.
Balance sheet as on 31st March, 2012
They agreed to admit Dhirajkumar on 1st April, 2012 as a partner into the firm on the following terms.
OR
4. Anjali of Nagpur sold goods worth Rs. 25,000 to Rupali of Amaravati. On next day Ruapali paid Rs. 10,000 in cash and accepted two months bill for the balance drawn by Anjali. Anjali discounted the bill at 12% p.a. with her bank. Before due date, Rupali finds herself unable to make payment of the bill; and requests Anjali to renew it. Anjali accepts the proposal on the condition that Rupali should pay Rs. 5,000 in cash and accept new bill for one month along with interest Rs. 200 for the balance. These arrangements were carried through. The new bill was met on due date. Give journal entries in the books of Anjali.
Balance sheet as on 31st March, 2012
| Liabilities | Amount Rs. | Assets | Amount Rs. |
| Capital A/c Rajkumar Rajendrakumar General Reserve Creditors | 150000 120000 80000 | Buildings Furniture Stock Debtors Cash Profit and Loss A/c | 100000 30000 60000 300000 30000 30000 |
| 550000 | 550000 |
1. Dhirajkumar to bring Rs. 60000 as capital and Rs. 45000 as goodwill, which is to be retained in the business. He will be entitled to 1/4 th share of profit of the firm.
2. 50% of General Reserve is to remain as Reserve for doubtful debts.
3. Furniture is to be depreciated by 5%
4. Stock is to be revalued at Rs. 65,000.
5. Creditors of Rs. 5000 are not likely to claim and hence should be written of.
6. Rent of Rs. 2,000 due but not received has not been recorded in the books.
Pass necessary journal entries in the books of new firm and prepare Balance sheet of the new firm.CLICK FOR ANSWER
OR
Sanil, Nitish, Sapna were partners in a firm sharing profits and losses in the proportion of 1/2 , 1/3, 1/6 respectively. Their Balance Sheet as on 31st March, 2012 was as follows:
Balance Sheet as on 31 - 03 - 2012
Liabilities
|
Amount
|
Assets
|
Amount
|
Bills Payable
Capitals:
Sanil
Nitish
Sapna
|
30000
80000
50000
30000
|
Machinery
Furniture
Sundry Assets
Stock
Debtors
Bank
|
40000
5000
60000
30000
32000
23000
|
190000
|
190000
|
Sapna decided to retire on 1st April, 2012 on following terms:
1. Goodwill of the firm will be valued at Rs. 30,000.
2. Furniture war taken over by Sanil for Rs. 4,700.
3. Make a Provision for unpaid expenses Rs. 1,700.
4. Out of the amount due to Sapna Rs. 7,500 to be paid by cheque and the remaining amount to be transferred to her loan account.
Prepare Profit and Loss Adjustment Account, Partners’ Capital Accounts and Balance sheet of New firm on 1st April, 2012.
4. Anjali of Nagpur sold goods worth Rs. 25,000 to Rupali of Amaravati. On next day Ruapali paid Rs. 10,000 in cash and accepted two months bill for the balance drawn by Anjali. Anjali discounted the bill at 12% p.a. with her bank. Before due date, Rupali finds herself unable to make payment of the bill; and requests Anjali to renew it. Anjali accepts the proposal on the condition that Rupali should pay Rs. 5,000 in cash and accept new bill for one month along with interest Rs. 200 for the balance. These arrangements were carried through. The new bill was met on due date. Give journal entries in the books of Anjali.
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Q5. X and Y are equal partners.
The following is their Balance Sheet as on 31st March, 2012.
Liabilities
|
Rs.
|
Rs.
|
Assets
|
Rs.
|
Rs.
|
X’s Capital
Y’s Capital
Reserve Fund
X’s Loan
Creditors
|
40000
30000
8000
2000
15000
|
Building
Machinery
Furniture
Debtors
Less: R.D.D.
Stock
Investments
Commission Receivable
Bank
|
8800
- 800
|
30000
10000
12000
8000
20000
4000
1000
10000
| |
95000
|
95000
|
The firm was dissolved on 31st March, 2012
(i) The Assets realised as follows:
Stock Rs. 19,000, Debtors Rs. 7,500, Machinery Rs. 11,000, Building Rs. 14,000
ii. Y took over the investments Rs. 5000 and Furniture at Book Value.
iii. X agreed to accept Rs. 1500 in full settlement of his Loan Account.
iv. Dissolution expenses amounted to Rs. 2000.
v. Commission Receivable could not be recovered.
Prepare Realisation Account, X’s Loan Account, Capital Accounts and Bank Account.
Q6. From the following Receipt and Payment account of Patan
Sports Association, Patan and the adjustments. You are required to prepare
Income and Expenditure Account for the year ended 31st March,
2004 and a Balance sheet as on that date. (12)
Receipts and Payments Account for the year ended 31st March
2004.
Receipts
|
Amount
(Rs.)
|
Payments
|
Amount
(Rs.)
|
To Balance b/d
|
4160
|
By Salaries
|
5500
|
To Subscription:
|
By Entertainment Expenses.
|
2580
|
|
2003 – 04
|
16000
|
By Lighting
|
1000
|
2004 – 05
|
412
|
By General Expenses
|
1536
|
To Donation
|
2000
|
By Taxes
|
500
|
To Receipts from Entertainment
|
3644
|
By Investments
|
12000
|
To Interest on Investment
|
324
|
By Printing and Stationery
|
944
|
To Entrance Fees
|
4500
|
By Expenses of 2002 – 03
|
2400
|
To Prize Fund
|
3000
|
By Fixed Deposit
|
4000
|
By Bank Balance
|
3000
|
||
By Balance C/d
|
580
|
||
34040
|
34040
|
Adjustments:
(1) There
are 450 members paying an annual subscription of Rs. 40 each.
(2) Salary
outstanding on 31st March, 2004 was Rs. 1,000.
(3) Building
stood in books Rs. 60,000 and furniture at Rs. 4,600 on 1st April,
2003. Write off depreciation on these assets @ 2% and 10% respectively.
(4) Interest
on investment @ 5% has accrued for 3 months.
(5) The
capital fund was Rs. 66,360 on 1st April, 2003.
(6) 60%
of the entrance fee is to be capitalised.
Q7. Kamesh and Mani are partners sharing profits and losses in equal ratio. From the following Trial Balance you are required to prepare Trading and profit and Loss Account for the year ended 31st December, 2005 and Balance sheet as on that date after taking into consideration the additional information.
Debit Balance
|
Amount
|
Credit Balance
|
Amount
|
Land and Building
|
44500
|
Capital : Kamesh
|
60000
|
Plant
|
9750
|
Mani
|
40000
|
Drawings: Kamesh
|
3000
|
Sales
|
57000
|
Mani
|
2000
|
Sundry Creditors
|
9500
|
Opening Stock
|
26000
|
Reserve for Doubtful Debts
|
500
|
Wages
|
5000
|
Outstanding Expenses
|
500
|
Purchases
|
34500
| ||
Carriage inwards
|
700
| ||
Office expenses
|
2270
| ||
Rent, Rates and Taxes
|
1750
| ||
Insurance
|
480
| ||
Motor Van (addition on 1st July Rs. 10,000)
|
20,000
| ||
Salaries
|
1750
| ||
Bad debts
|
950
| ||
Debtors
|
14600
| ||
Cash at Bank
|
250
| ||
167500
|
167500
|
Additional Information:
1. Closing stock on 31st December, 2005 was at cost Rs, 40, 000/- and Market price Rs. 50,000/-
2. Depreciate Plant at 10% p.a. and Land and Building @ 20% p.a. Depreciate Motor van by 10% p.a.
3. The goods for Rs. 5, 600 purchases and received on 25th December, 2002 were not recorded in the purchase book.
4. Insurance is paid for the year ended 31st March 2005.
