Q.1. Attempt any FOUR sub- questions of the following: (20)
A] Answer in one sentence
each:
(1) What is depreciation?
Ans: Continuous, gradual and permanent reduction in the
value of a fixed asset brought about by the factors like wear and tear, passage
of time or similar other facts etc., is called depreciation.
(2) When bill is said to be honoured?
Ans: A
bill of exchange is said to be honoured or met when the acceptor makes payment
on its due date.
(3) What is Trial Balance?
Ans: Trial Balance is a statement showing the list of
balances of all the ledger accounts on a particular date.
(4) Under which method of depreciation, amount
of depreciation changes every year?
Ans: Under
“Reducing Balance Method”, the amount of depreciation changes every year.
(5) What are the methods of valuation of
goodwill?
Ans: There
are two methods of valuation of goodwill viz. (i) Average Profit Method and
(ii) Super Profit Method.
B] Write
a word/term/phrase which can substitute each of the following statement:-
(1) A credit balance on Profit and loss
Accounts :- Net Profit
(2) Excess of expenditure over income in case
of “Not for Profit Concern” :- Deficit
(3) A temporary partnership formed for carrying
out a particular venture :- Joint
Venture
(4) The method of calculating depreciation in
which depreciation remains constant every years :- Original cost method / Straight line method
(5) Expenses due but not paid:- Outstanding Expenses
C] Match the following :-
Group A
|
Answers
|
(1) Depreciation
|
- Fixed Assets
|
(2) Super
profit
|
- Normal Profit – Average Profit
|
(3) Noting
charges
|
- Dishonour of bill
|
(4) Co-venturers
|
- Partners of Joint Venture
|
(5) Input
Device
|
- Mouse
|
D] Select the most appropriate alternative from those given below:
(1) Wages paid for erection of machinery
should be debited to Machinery
Account.
(a) Machinery (b)
Wages (c) Trading (d) Profit & Loss
(2) If a bill is drawn on 23rd
October, 2011, for the three months, it will be due for payment on 25th Jan., 2012
(a) 26th Feb, 2012 (b) 27th Jan, 2012 (c)
25th Jan, 2012 (d) 26th
Jan, 2012
(3) The opening capital is greater than the
closing capital, then the difference is Loss
(a) Loss (b)
Profit (c) Assets (d) Liabilities
(4) There are three parties to a bill of exchange.
(a) One (b)
two (c) Three (d) Four.
(5) Excess of the total assets over the total
liabilities in the statement of affairs denotes Capital
(a) Profit (b)
Drawings (c) Deficit (d) Capital
E] State True or False with
the reasons.:-
(1) Goodwill is a tangible
asset of the business.
Ans: This
statement is FALSE.
Reasons:
(1)
Goodwill is the monetary value of the reputation of
the business organization as measured in terms of its expected future profit.
(2)
Goodwill is an intangible asset because its
existence cannot be verified by our senses.
(2) The main object of ‘not
for profit’ organization is to earn profit.
Ans: This
statement is FALSE.
Reasons:
(1)
A ‘Not for Profit’ concern is established to
provide service to society or general public by undertaking various non-trading
activities.
(2)
Thus, it never undertakes trading activities to
earn profit.
F] Prepare a Proforma of a
Bill of Exchange.
(1) Drawer:
Subhash Suryawanshi, Main Road
(2) Drawer:
Madhukar Bharati, Amboli Road
(3) Payee: Manoj
Desai, Amboli
(4) Period: 60 days
(5) Date of Bill: 25th May, 2011
(6) Date of
Acceptance: 28th May, 2011
(7) Amount of Bill: `.
5,700.
