OMTEX CLASSES: Book Keeping & Accountancy March 2016 Board Paper

Book Keeping & Accountancy March 2016 Board Paper

Book Keeping & Accountancy

March 2016 Board Paper

Q. 1. A. Answer the following questions in one sentence each. [5]

(1) What is bad debts?

Ans. An amount irrecoverable from debtors is known as bad debts.

(2) What is surplus?

Ans. Excess of income over expenditure in case of not for profit concern is known as surplus.

(3) What are Noting Charges?

Ans. Fee charged by Notary public for noting the dishonoured inland bill are known as noting charges.

(4) What is Gain Ratio?

Ans. The proportion in which continuing partners are benefitted, due to retirement or death of a partner is termed as gain ratio.

(5) What do you mean by Analysis of Financial Statement?

Ans. Critical evaluation of financial statement to measure the profitability, solvency and growth of the organisation is known as Analysis of Financial Statement.

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

(1) Expenses which are paid before due.

Ans. Prepaid expenses

(2) Excess of expenditure over income of 'not for profit' concerns.

Ans. Deficit

(3) Payment of the bill before due date.

Ans. Retirement of bill

(4) An account opened to find out the profit or loss on sale of assets and settlement of liabilities.

Ans. Realisation account.

(5) A statement similar to balance sheet.

Ans. Statement of Affairs.

(1) If shares are issued at its face value, it is called as issue at _____________.

(a) premium.

(b) discount.

(d) none of these.

(2) A person who accepts the bill is called __________

(a) drawer.

(b) acceptor.

(d) creditor.

(3) The capital in the beginning of the accounting year is ascertained by preparing ______________

(a) closing statement of affairs.

(b) cash account.

(d) opening statement of affairs.

(4) If any asset is taken over by partner from firm his capital A/c will be ____________

(a) credited

(b) debited

(d) none of these

(5) The proportion in which old partners make a sacrifice is called ___________ ratio.

(a) capital

(b) gaining

(d) new

(D) State whether the following statements are True or False. (5)

(1) The interest on capital is an income of the firm. (False)

(2) The inland bill which is drawn in and payable in the same country. (True)

(3) The debenture holder is owner of the company. (False)

(4) Purchase of fixed asset is operating cash flow. (False)

(5) Noting charges are payable to the Notary public, in case of honour of a bill. (False)

(E) Prepare a specimen of Bill of Exchange from the following information: (5)

(1) Drawee : M.P. Shinde, Siddharth Nagar, Panchgani.

(2) Drawer: M.M. Shaikh, Satara Road, Sangli.

(3) Period of bill : 90 days.

(4) Amount of bill : Rs. 12,800/-

(5) Date of bill : 10th March, 2013.

(6) Date of Acceptance: 14th March, 2013.

Answer:

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Q. 2. Mrs. Meena of Bilaspur has not kept proper books of accounts, following information is provided to you. (8)

Particulars	31.3.2012	31.3.2013
	Amount (Rs. )	Amount (Rs.)
Machinery	50000	50000
Furniture	50000	30000
Debtors	18000	25000
Creditors	18000	20000
Stock	30000	42000
Outstanding Expenses	1500	-
Prepaid Expenses	-	500
Cash at bank	28000	40000

Further information:

(1) Mrs. Meena introduced additional capital as on 1st October, 2012 by selling her personal car is Rs. 10,000.

(2) She paid her daughter's college fees from business bank account Rs. 3,000.

(3) Depreciate machinery by 5% p.a.

(4) Provide 2% on debtors for Bad and Doubtful debts.

(5) Interest on capital is to be provided @ 5% p.a. and on drawings @ 5% p.a.

Prepare: Opening and closing statement of affairs and statement of profit or loss for the year ended 31st March, 2013.

Solution: [Click Here for Answer]

(A) What are the components of 'Current Ratio'?

Ans. [Click Here for Answer]

(B) What are the different cash inflows and cash outflows of investing activities?

Ans. [Click Here for Answer]

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Q. 3. Rani and Geeta are partners sharing profits and losses 3:2 respectively. Their position on 31st March, 2013 was as follows: [10]

Balance sheet as on 31st March, 2013.

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)	Amount (Rs.)
Capital Accounts		Building		100000
Rani	100000	Furniture		10000
Geeta	75000	Stock		31000
Creditors	10000	Debtors	50000
Bills Payable	5000	Less: R.D.D.	-1000	49000
General Reserve	15000	Bank Balance		15000
	205000			205000

On 1st April, 2013 hey admitted suvarna on the following terms:

(1) Suvarna should bring in cash Rs. 1,00,000 as capital for 1/5 th share in future profit and Rs. 25,000 as goodwill.

(2) Building should be revalued at Rs. 1,25,000.

(3) Depreciate furniture @ 12.5 % and stock @ 10% p.a.

(4) R.D.D. should be maintained as it is.

(5) The Capital Accounts of partners should be adjusted in their new profit sharing ratio through bank account.

Prepare: Profit and loss adjustment account, capital account and balance sheet of the new firm.

Solution: [Click Here for Answer]

Q3. The balance sheet of 'Anand Traders, Wardha' is as follows.

Partners share profits and losses as 5/10 , 2/10, 3/10.

Balance Sheet as on 31st March, 2013.

Liabilities	Amount (Rs.)	Assets		Amount (Rs.)
Capital Accounts		Plant and machinery		32,000
Sunil	36,000	Factory Building		40,000
Pankaj	32,000	Stock		20,400
Paresh	17,600	Debtors	16,800
Creditors	21,200	Less: R.D.D.	800	16,00
General Reserve	14,000	Cash		12,400
	1,20,800			1,20,800

Pankaj retired from the business on 1st April, 2013 on the following terms:

(1) The assets were revalued as under .....

(i) Stock at Rs. 28,000.

(ii) Factory building is appreciated by 10%.

(iii) Reserve for doubtful debts is to be increased up to Rs. 1,000.

(iv) Plant and machinery is to be depreciated by 10%

(2) The goodwill of the retiring partner is to be valued at Rs. 8,000 and the remaining partners decided that goodwill be written back in their new profit sharing ratio which will be 5:3.

(3) Amount due to Pankaj is to be transferred to his loan account.

Prepare : (a) Profit and Loss adjustment account

(b) Capital account of partners.

Answer: [Click Here for Answers]

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Q4. Raja of Nagpur draws a bill on Pradhan of Bhandara for Rs. 6,000 at 3 months. Pradhan accepted and returned it to Raja. Raja then sent the bill to bank for collection.

On due date, Pradhan finds himself unable to make payment of the bill and requests Raja to renew it. Raja accepted a proposal on the condition that, Pradhan should pay Rs. 1,000 on account along with interest Rs. 250 in cash and should accept new bill for the balance at 2 months. These arrangements were carried through. Afterwards, one month before due date of new bill Pradhan retired his acceptance by paying Rs. 4,850.

Give Journal entries in the books of Raja of Nagpur. [10]

Answer: [Click Here for Answers]

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Q5. A, B, and C were partners sharing profits and losses in the proportion of 2:2:1. Following is their balance sheet as on 31st March, 2013. [10]

Balance sheet as on 31st March, 2013

Liabilities	Amount (Rs. )	Assets	Amount (Rs.)	Amount (Rs.)
Capital Account		Machinery		25000
A	30000	Stock		10000
B	10000	Debtors	27500
C	10000	Less: R.D.D.	1500	26000
General Reserve	3000	Investment		12000
Creditors	20000	Profit and Loss A/c		9000
A’s Loan Account	4000	Bank		2000
Bills Payable	7000
	84000			84000

On the above date, the partners decided to dissolve the firm.

(1) Assets were realised as -

Machinery Rs. 22,500, Stock Rs. 9,000, Investment Rs. 10,500, Debtors Rs. 22,500

(2) Dissolution expenses were Rs. 1,500.

(3) Goodwill of the firm realised Rs. 12,000

Pass the necessary journal entries int he books of the firm.

Answers: [Click Here for Answers]

Q5. Kisan Co. Ltd. Miraj, issued Rs. 50,000 shares at par Rs. 10 each, payable Rs. 3 on application, Rs. 4 on allotment and the balance on the final call. All the shares were fully subscribed and paid except a shareholder Mr. D. Kapse having Rs. 1,000 shares could not pay the final call. Mr. D. K. Kapse paid the call - in - arrears amount together with interest after four months of due date of final call. Company charged interest on the arrears received as per table ‘A’.

Pass journal entries to record these transactions assuming that call - in - arrears and interest money received from Mr. D. Kapse in the books of Kisan Co Ltd. Miraj.

Ans. [Click Here for Answers]

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Q. 6. Marathi Vishwa Kosha Centre, Wai, has given you the following information from which, you are required to prepare. (i) Income and Expenditure Account for the year ending on 31.03.2013, (ii) Balance Sheet as on 31.03.2013.

Receipts and Payment Account for the year ending 31.03.2013

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
To Balance b/d		By Stationery	5000
Cash in hand	13000	By Furniture [Purchased on 01.01.2013]	50000
To Locker Rent	5000	By Investments	1,00,000
To Entrance Fees	19000	By Expenses of Drama	33500
To Sale of old newspapers	1500	By Postage and telegram	2,500
To Receipts from Drama	78,500	By Magazines and Newspapers	4000
To Legacies	1,10,000	By Salaries	22,000
To Miscellaneous Receipts	8000	By Balance c/d
		Cash in Hand	3000
		Cash at bank	1,10,000
	330000		330000

Additional Information:

(1) Capital fund on 01.04.2012, was Rs. 1,08,000.

(2) Legacies are to be capitalized.

(3) Outstanding salary Rs. 3,000.

(4) 50% of entrance fees is to be capitalized.

(5) Depreciation on Furniture @ 10% p.a.

Solution: [Click Here For Anwers]

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Q7. From the following Trial Balance and adjustments of M/s Apeksha and Pratiksha; you are required to prepare Trading and Profit and Loss account for the year ended 31st March 2013 and Balance sheet as on that date:

Trial Balance as on 31.03.2013

Particulars	Debit Amount (Rs.)	Credit Amount (Rs.)
Capital Accounts
Apeksha		60000
Pratiksha		35000
Purchases and Sales	46700	85000
Sundry Debtors and Creditors	28000	25000
Bills Receivable and Bills Payable.	9600	7800
Opening Stock	18000
Wages	9900
Investment	13500
Postage and Telegrams	3600
Insurance	1200
Plant and machinery	40700
Furniture	18000
Cash in hand	2500
Carriage	3200
Bad debts	400
Prepaid rent	7000
Salaries	10500
	212800	212800

Adjustments:

(1) The closing stock is valued at Rs. 31,000

(2) Outstanding wages Rs. 1,400.

(3) Depreciate furniture at 10% p.a.

(4) Insurance Rs. 500 is paid in advance.

(5) Provide for further bad debts of Rs. 1,500.

(6) Goods worth Rs. 2,000 withdrawn by Apeksha for her domestic use but not recorded in the books of account.

Answer: [Click Here for Answers]

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Book Keeping & Accountancy March 2016 Board Paper