MARCH 2008 ACCOUNTS QUESTION PAPER

March 2008

Book-Keeping and Accountancy

Time : 3 Hours Marks : 100

Q.1 Attempt any FOUR of the following sub-question: (20)

(A) Answer in one sentence. (5)

1. What is a Balance Sheet?

2. What is Single Entry System?

3. What do you mean by Fixed Installment Method?

4. What is Goodwill?

5. When Joint Bank A/c is opened?

(B) Write the word/term/phrase which can substitute each of the following

statements : (5)

1. A partner who lends only his name to the film.

2. Concerns established for providing services.

3. Profit earned over and above normal profit.

4. A temporary partnership without firm name.

5. A person who endorse the bill.

(C) Match the following pairs: (5)

Group 'A'	Group 'B'
1.     Unpaid expenses 2.     Single Entry System 3.     Computer 4.     Co-venture 5.     Maker of a bill	1.       1.     Electronic device 2.     Partnership firm 3.     Drawee 4.     Asset side 5.     Unscientific 6.     Liability side 7.     Drawer 8.     Joint venture

(D) Select the most appropriate alternative from those given below: (5)

1.      

1.     subscription received in advance during the accounting year is ________.

a.     an income (b) an expense (c) an asset (d) a liability

2.     Depreciation is charged only on the _________.

a.     current assets (b) intangible assets (c) immovable assets (d) fixed assets

3.     Brain of computers is _________.

a.     microprocessor (b) RAM (c) DRAM (d) DOS

4.     Unsold stock of Joint Venture taken over by Co-venturer is credited to _______.

a.     Co-venturers' A/c (b) Joint Venture A/c (c) Joint Bank A/c (d) Stock A/c

5.     A one month's bill drawn on 31 st January, 2007 will be matured on ________.

(a) 3^rd March, 2007 (b) 28^th February, 2007 (c) 29^th February, 2007

(d) 2^nd march, 2007

(E) State whether True / False (with reasons): (5)

1. Receipts and Payments A/c is a Nominal A/c.

2. Drawee has no right to discount the bill with Bank.

(F) From the following details prepare a format of Bill of Exchange: (5)

Shri. Amar Patil, Guruwar Peth, Karad, draws a Two months bill on Mehul Maniyar, Mul, payable to Yogesh Ghatkar, CIDCO. Aurangabad, on 31^st December, 2007 for

Rs. 9,500. Shri. Mehul Maniyar accepted it on 2^nd January, 2008.

Q.2 M/s Jalaram Mill, Mul, showed a debit balance of Rs. 32,000 to the Machinery A/c on 1^st April, 2001 (Original cost of the Machinery was Rs. 40,000). On 1^st October, 2001 the Mill bought

additional Machinery for Rs. 15,000 and spent Rs. 1,000 for its installation.

One more machinery costing Rs.20,000 was purchased on 31^st March, 2003.

Depreciation is charged on 31^st March, every year at 10% p.a. under the Diminishing Balance Method.

On 31^st March, 2004, the machinery which was purchased on 1^st October, 2001 was sold for Rs. 12,000.

Prepare - Machinery A/c and Depreciation A/c for the years 2001 - 2002.

2002 - 2003 and 2003 - 2004.

OR

(A) Maruti and Dinesh are carrying on a business in partnership for last 5 years. Goodwill of the firm is to be valued at 2 years purchased at last 5 years average profit. The profits and losses were as under :

(5)

Year	Amount
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005	Rs.19,000 (Profit) Rs.33,000 (Profit) Rs.18,000 (Loss) Rs.14,000 (Profit) Rs.32,000 (Profit)

Calculate the value of Goodwill of the firm.

(B) Explain the importance of computer in modern age. (5)

Q.3 Priti owed to Manisha Rs. 9,000. Priti accepted the bill drawn by Manisha for the amount at

4 months.

Manisha endorsed the same bill to Shital.

Before the due date, Priti approached Manisha for renewal of the bill.

Manisha agreed on thee condition that Rs. 3000 be paid immediately together with interest on

the remaining amount at 8% p.a for 3 months and Priti should accept a new bill.

These arrangements were carried through.

However, before due date Priti became insolvent and only 50% of the amount could be

recovered from her estate.

Give Journal Entries in the books of Manisha. (12)

OR

Journalise the following transactions in the books of Motilal:

1.     Bhavna informed Motilal that Jvoti's acceptance for Rs. 3,600 endorsed to Bhavna has

been dishonoured and noting charges have been Rs. 150.

1.     Anil renews his acceptance to Motilal for Rs. 3,400 by paying Rs. 900 in cash and

accepting a new bill for the balance plus interest at 8% p.a. for 3 months.

1.     Prabhakar retired his acceptance to Motilal for Rs. 4,000 by paying Rs. 3,850 in cash

2.     Bank informed Motilal that Arun's acceptance of Rs. 7,000 Which was discounted with

hank was been dishonoured with noting charges Rs. 100.

Q.4 Yashpal of Udgir and Balu of Latur entered into joint Venture to consign 300 machines to Amol of Amravati to be sold on their joint risk which is in the proportion of 2:3 respectively . Yashpal sent 120 machines at Rs. 300 each paid freight Rs. 700 and sundry expenses Rs.300.

Balu sent 120 machines at Rs. 250 each and paid for insurance Rs. 500 and carriage Rs. 500.

Amol sold all the machines at Rs. 400 each.

He spent Rs. 4,000 for advertisement and Rs. 1,000 for godown charges.

Amol deducted 5% commission on sales and sent Rs. 80,000 to Yashpal and balance to Balu by bank draft.

Prepare

1.     Joint Venture A/c

2.     Balu's A/c

3.     Amol's A/c

In the Ledger of Yashpal. (12)

Q.5 Mrs. Archana keeps her books on Single Entry System & gives the following information: (10)

Particulars	31.3.2006	31.3.2007
Cash at Bank Sundry debtors Stock in trade Furniture Machinery Bills Payable Sundry Creditors	5,000 25,000 30,000 20,000 50,000 5,000 15,000	32,000 40,000 50,000 20,000 50,000 5,000 20,000

Mrs. Archana withdrew from business Rs. 15,000 for personal use. She further introduced fresh capital of Rs. 25,000.

Depreciation is to be charged @10% p. n. on Furniture and Machinery.

Prepare :

1.     Statement of Affairs as on 31.3.2006.

2.     Statement of Affairs as on 31.3.2007.

3.     Statement of Profit and Loss for the year ending 31.3.2007.

Q.6 Following is the Receipts and Payaments A/c of Phoenix Cricket Club, Patan. (16)

Dr. Receipts and Payments Accounts for the year ended 31 ^st March, 2007 Cr.

Receipts	Amount Rs.	Payments	Amount Rs.
To balance b/d To Subsciption 2005-06 2006-07 2007-08 To Donation To Entertainment receipts To Interest To Entrance fees	1,040 85 4,000 103 1,200 876 81 1,000	By Salaries By Entertainment expenses By Electricity charges By General expenses By Rent and Taxes By Investments By Printing and Stationery By Expenses of 2005-06 By Fixed Deposit By Balance c/d	1,300 645 234 350 120 3,000 241 600 1,000 895
	8,385		8,385

Information :

1.     Club and 450 members paying an annual subscription of Rs. 10 each.

2.     Rs. 20 is still in arrears towards subscription for the year 2005-06.

3.     Carry forward Rs. 20 for rent paid in advance.

4.     Outstanding salary Rs. 200.

5.     Land and Building Rs. 15,000 and Furniture Rs. 1,150 in standing in the books on 1^st April, 2006 on which depreciation at 5% and 20% is to be written off respectively.

6.     Capital fund on 1.4.2006 was Rs. 16,695.

7.     50% of the entrance fees and full domain are to be capitalized.

Prepare : From the above Receipts and Payments A/c and information, Income and Expenditure A/c for the year ended 31^st March, 2007 and Balance Sheet as on that date.

Q.7 Swati, Swity and Sweta were partners sharing profits and losses equally.

Following is their Trial Balance for the year ended 31^st March, 2006.

Trial Balance as on 31 ^st March, 2006 (20)

Particulars	Debit Rs.	Credit Rs.
Purchase and Sales Salaries Stock (1.4.2005) Debtors and Creditors Bills Receivable and Bills Payable Land and Building Returns Wages Cash at Bank Insurance Advertisement Furniture Rent and Taxes Interest Capitals : Swati Swity Sweta	1,04,000 11,300 28,000 24,200 62,400 48,300 6,300 25,100 30,000 4,500 9,300 18,700 4,700	1,95,300 36,000 18,100 2,600 4,800 60,000 40,000 20,000
	3.76,800	3,76,800

Adjustments :

1.     Closing stock is valued at Rs. 37,500.

2.     Depreciate Furniture @10% p.a. and Land and Building @5% p.a.

3.     Goods of Rs. 3,000 are purchased on 31.3.2006 are included in the closing stock but the entry is not passed in the books.

4.     Insurance is prepaid to the extent of Rs. 1,500.

5.     Salaries of Rs. 3,400 and wages of Rs. 4,700 are outstanding.

6.     Write off Rs. 1200 as bad debts from Debtors and provide 5% for Reserve for Doubtful Debts.

Prepare: Trading A/c and Profit and Loss A/c for the year ended 31^st March, 2006 and Balance Sheet as on that date.