omtexclasses.com: Accounts October 2014 Board Question Paper Solution

Accounts October 2014 Board Question Paper Solution

Accounts October Board Question Paper Solution [15]

Q1. Attempt any Three of the Following sub – questions: [5]

(A) Answer the following in ‘one’ sentence each:

(1) What is ‘balance sheet’?

Ans. A Balance Sheet is a statement showing the financial position of the business in the form of its assets and liabilities on a particular date.

(2) What is ‘deficit’?

Ans. Excess of expenditure over income shown by Income and Expenditure Account represents deficit for the financial year.

(3) What is ‘Sacrifice ratio’?

Ans. A ratio which is surrendered or given up by the old partners in favour of a newly admitted partner is called sacrifice ratio.

Formula: Sacrifice Ratio = Old Ratio – New Ratio.

(4) What is ‘allotment of shares’?

Ans. Allotment of shares means after considering the demand of the applicants, accepting application forms up to certain fixed number as per the resolution passed in the meeting of the board of directors.

(5) Who is a ‘drawer’?

The person who draws or makes the bill of exchange is called the drawer. He is the creditor. He will receive the money from debtor.

(B) Write a word / term / phrase which can substitute each of the following statements: [5]

(1) Debit balance on realisation account.

Ans. loss on realisation of Assets and Liabilities

(2) The three extra days which are allowed over and above the period of the bill.

Ans. Days of grace or Grace days.

(3) Expenses which are due but not paid at the end of the year.

Ans. Outstanding expenses.

(4) A statement similar to a balance sheet.

Ans. Statement of Affairs.

(5) An asset which can be converted into cash immediately.

Ans. Liquid asset.

(C) Select the most appropriate answer from the alternatives given below and rewrite the sentences: [5]

(1) The profit or loss from revaluation on retirement of partners is shared by _____________

(a) all the partners

(b) the remaining partners

(d) none of these

(2) Purchase of stationery is a ________ expenditure.

(a) capital

(b) revenue

(d) deferred revenue

(3) _____________ means payment of the bill before due date.

(a) Discounting of bill

(b) Retirement of bill

(d) Endorsement of bill

(4) Generally incomplete records are maintained by the __________

(a) trader

(b) company

(d) government

(5) The interest on drawings is transferred to ___________ side of the profit and loss account.

(a) debit

(b) credit

(d) liability

(D) State whether the following statements are True or False: [5]

(1) The debenture holder is the owner of the company. [False]

(2) The person, to whom or as per his order amount of bill is payable, is a payee. [True]

(3) Government is not interested in the analysis of financial statement. [False]

(4) On its dissolution the cash or bank account is closed automatically. [True]

(5) A bill can’t be deposited into a bank for collection. [False]

(E) Prepare a specimen of a Bill of Exchange from the following information. [5]

Drawer: Rahul Chaudhari, 105 Ghodbunder Road, Thane.

Drawee: Prakash Patil, 207, Ganga Road, Nashik.

Payee: Sonal Chaudhari, M.G. Road, Dhule.

Period of Bill: 60 days.

Amount of bill: Rs. 10,000

Date of Bill : 15^th December, 2013

Date of acceptance: 18^th December, 2013.

Q2. Mrs. Asha keeps her books on Single Entry System and gives the following information: [8] [Click Here For Answer]

Particulars	31.3.2011	31.3.2012
Cash at Bank	10000	64000
Sundry debtors	50000	80000
Stock in Trade	60000	10000
Furniture	40000	40000
Machinery	100000	100000
Bills Payable	10000	10000
Sundry Creditors	30000	40000

Mrs. Asha withdrew from business Rs. 30,000 for personal use. She further introduced fresh capital of Rs. 50,000.

Depreciation is to be charged @ 10% p.a. on furniture and machinery.

Prepare:

(a) Statement of affairs as on 31.3.2011

(b) Statement of affairs as on 31.3.2012

(A) What are the investing activities of cash flow? [4] [Click Here for Answer]

(B) State the limitations of analysis of financial statements. [4] [Click Here for Answer]

Q3. Anil and Sunil were partners sharing profits and losses in the ratio of 2:1 respectively. Their Balance Sheet was as follows: [10] [Click Here for Answer]

Balance Sheet as on 31^st March, 2010

Liabilities	Amount	Assets	Amount
Capital A/cs		Cash at Bank	4000
Anil	24000	Debtors	15000
Sunil	16000	Stock	23500
Trade Creditors	26000	Furniture	5000
Anil’s Loan A/c	6500	Building	25,000
	72,500		72,500

On 1^st April, 2010, Ram is admitted in the partnership on the following terms:

(1) Ram should bring in cash of Rs. 12,000 as capital for 1/5^th share in future profit.

(2) Goodwill A/c is raised in the books of the firm for Rs. 4,500.

(3) Building is revalued at Rs. 28,000 and the value of stock be reduced by Rs. 1,500.

(4) Reserve for doubtful debts be provided at 5% on debtors.

Prepare:

(a) Profit and Loss Adjustment account.

(b) Capital Accounts of partners.

Q3. Supriya, Surakha and Sujata were partners sharing profits and Losses in the ration of 2:2:1 respectively. Their Balance Sheet as on 31st March, 2012 was as follows: [Click Here for Answer]

Balance Sheet as on 31^st march, 2012

Liabilities	Amount	Assets	Amount
Capital A/c		Land and Building	50000
Supriya	40000	Stock	30000
Surekha	40000	Debtors 37500
Sujata	20000	(-) R.D.D. -2500	35000
Reserve Fund	10000	Furniture	10000
Creditors	16000	Cash at Bank	5000
Outstanding Expenses	4000
	130000		130000

Sujata died on 1^st July, 2012 and the adjustments were agreed to as per the deed as follows:

(1) Land and Building to be valued at Rs. 60,000 and all debtors were good.

(2) Stock be depreciated by 10%.

(3) The drawing of Sujata up to the date of her death amounted to Rs. 2,000.

(4) Interest on capital was to be allowed at 10% p.a.

(5) The deceased partner’s share of goodwill is to be valued at 2years’ purchase of average profit of last 3 years.

The profits were:

2009 – 10 = Rs. 15000

2010 – 11 = Rs. 17000

2011 – 12 = Rs. 13000

(6) The deceased partner’s share of profit up to the date of her death should be based on average profit of the last two years.

You are required to prepare:

(a) Profit and Loss Adjustment Account.

(b) Sujata’s Capital Account showing the balance payable to her Executor’s Loan Account.

Q4. On 14th May, 2012 Rohit sold goods on credit to Devidas for Rs. 30,000 on the same date Rohit draws a bill on Devidas for Rs. 30,000 at 4 months. Devidas accepted it an returned to Rohit. [Click Here for Answer]

On 17^th June, 2012 rohit discounted the bill with his bank @ 10% p.a.

On due date Devidas finds himself unable to make payment of the bill and requests Rphit to renew it.

Rohit accepted the proposal on the condition that Devidas should pay Rs. 10,000 on account along with interest Rs. 500 in cash and should accept a new bill for the balance at 2 months.

These arrangements were carried though.

Give Journal Entries in the Books of Rohit.

Q5. Uday and Prabhakar are partners sharing profit and losses in the proportion of 3/5 and 2/5 respectively. They dissolved their partnership firm on 31st March, 2012 when their financial position was as under. [Click Here For Solution]

Balance Sheet as on 31^st March, 2012

Liabilities	Amount	Assets	Amount
Sundry creditors	15000	Cash at bank	3000
Uday’s wife’s loan	30000	Debtors 67500
Capital A/c		(-) R.D.D. -7500	60000
Uday	138000	Stock	135000
Prabhakar	90000	Machinery	45000
		Furniture	30000
	273000		273000

The assets were realised as under:

Goodwill Rs. 15,000, Stock Rs. 1,20000 and Debtors Rs. 54,000.

Machinery was taken over by Prabhakar at Rs. 40000 and furniture by Uday at book value.

Uday agreed to discharge his wife’s loan.

The creditors were paid at a rebate of Rs. 3,000

The expenses of dissolution amounted to Rs. 6000

Pass necessary Journal Entries in the books of the firm.

Q5. Milind and Co. Ltd. Issued 20,000 equity shares of Rs. 100 each payable as under: [10]
[Click Here for Answer]

On Application Rs. 20 per share.

On Allotment Rs. 35 per share.

On First Call Rs. 25 per share.

On Second call Rs. 20 per share.

The Company received applications for 30,000 equity shares. Applications for 20,000 shares were accepted and allotted shares. Applications for 10,000 shares were rejected and refunded in full.

The money due on allotment and both the calls was received in full.

The expenses of issue amounted to Rs. 5000.

Pass necessary journal entries in the books of the company.

Q6. From the following Balance Sheet and Receipts and Payments A/c of Vidya mandir High School, Alibag. Prepare Income and Expenditure Account for the year ended 31st March, 2008 and Balance Sheet as on that date. [Click Here For Answer]

Balance Sheet as on 1^st April, 2007

Liabilities	Amount	Assets	Amount
Entrance Fees	6000	Furniture	16800
Capital Fund	103800	Laboratory	20000
		Library	25000
		Investment	40000
		Cash in hand	1000
		Cash at bank	3000
		Outstanding Tuition Fees	4000
	109800		109800

Receipts and Payments Account for the year ended 31^st March, 2008

Receipts	Amount	Payments	Amount
To Balance b/d		By Furniture Purchased	5400
Cash in hand	1000	By Salaries	60000
Cash at bank	3000	By Rent	28000
To Tuition Fees	80000	By Sundry Expenses	15200
To Term Fees	26200	By Annual gathering expenses	11300
To Government grant	16000	By Insurance	4000
To Donation of library	30000	By closing Balance
To Interest on Investment	2000	Cash at bank	34300
	158200	158200

Adjustments:

1. Tuition fees still receivable are Rs. 10,000.

2. Salaries still payable are Rs. 30,000

3. Insurance premium is paid for one year ending 30.9.2008.

4. Rent paid in advance Rs. 4000.

5. Depreciate furniture and library at 10%.

Depreciation to be charged on the closing balances of the assets.

Q7. Jitesh and Lailesh are in partnership sharing profits and losses in the ratio of 2:1. From the following Trial Balance and adjustments given below, you are required to prepare Trading and Profit and Loss A/c for the year ended 31st March, 2013 and the Balance Sheet as on that date: [15] [Click Here For Solution]

Trial Balance as on 31^st March, 2013.

Particulars	Debit	Credit
Prepaid Insurance	800
Insurance	2000
R.B.D.D.		1000
Discount	800
Postage and telephone	3200
Salaries	56000
Debtors and Creditors	66000	68000
Wages	24000
Opening Stock	48000
Carriage	1000
Purchases and Sales	193200	301600
Return inwards and outwards	5600	9200
Bank overdraft		120800
Plant & Machinery	24000
Land & Building	176000
Capital
Jitesh		52000
Lailesh		48000
Total	600600	600600