March 2012 Accountancy Paper

Q1. Attempt any Four of Sub – Questions of the following.

(A)     Answer in ' one' sentence each.

(1)     What is partnership deed?

(2)     Which accounts are normally kept under single entry system?

(3)     Which account is credited when depreciation is charged on asset?

(4)     What is the relationship between co – ventures?

(5)     What do you mean by intangible asset?

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

(1)     A list of debit and credit balances of all ledger accounts.

(2)     The major source of revenue to a non – trading concern from its members.

(3)     Date on which payment of a bill is to be made.

(4)     The account in which banking transactions of joint venture are recorded.

(5)     Excess of average profit over normal profit.

(C)     Match the following.

Group 'A'	Group 'B'
a.        Bad debts. b.        Excess of assets over liabilities. c.        Notary public d.        Credit balance of Joint venture A/c e.        Operating system	1.        Dishonour of cash bill 2.        Indicates profit of Joint venture. 3.        Indicates of loss of Joint venture 4.        System software 5.        Drawings 6.        Capital 7.        Recoverable amount from debtors 8.        Non – recoverable amount from debtors.

(D)    Select the most appropriate alternative from those given below and rewrite the sentences:

(1)     A gift given by a legal representative as per the will is called.…

a.        Donation         b. Subscription       c. Entrance fees      d. Legacy

(2)     Gradual and permanent decrease int he value of an asset is called …

a.        Scrap value     b. Cost price            c. Loss     d. Depreciation

(3)     A bill which is drawn in one country and made payable in other country is called

a.        Inland bill        b. Hundi  c. Foreign bill          d. Promissory note

(4)     Co-venturers' liability is ……

a.        Limited            b. Fixed   c. Unlimited            d. Specific

(5)     Physical devices of computer system are known as ……

a.        Software         b. Hardware            c. Programme         d. Humanware

(E)     State with reasons whether the following statements are true / false.

(1)     Indian cricket association prepares profit and loss account.

(2)     When the amount of bill is paid on its due date, it is said to be retired.

(F)     Prepare a format of bill of exchange from the following information.

(1)     Drawer:           Mr. Avadhoot Raktade, 586, Main road, Ajara.

(2)     Drawee:          Mr. Mukund Aglawe, 133, Chandni Chowk, Panvel.

(3)     Amount : Rs. 8,800

(4)     Period : Two months

(5)     Date of bill : 1^st May , 2010.

(6)     Date of Acceptance : 5^th May 2010.

Q2. M/s. J.P. Company,  purchased a motor lorry for Rs. 8,00,000 on 1^st April, 2007 company purchased a second – hand motor for Rs. 3,60,000 on 1^st October, 2008. The company charges depreciation @10% p.a. on original cost. The financial year of the company ends on 31^st March every year. On 30^th September 2009, the second – hand lorry was sold for Rs. 2,80,000. Prepare: Motor Lorry's account for the years 2007 – 2008, 2008 – 2009, 2009 – 2010 and journal entries for the year 2009 – 2010.                                       OR

Following is the Balance sheet of Usha and Sushila who share profits and losses equally.

Balance sheet as on 31^st March, 2010

Liabilities	Amount	Assets	Amount
Capital: Usha Sushila Creditors Bills Payable	200000 100000 60000 40000	Land and Building Machinery Debtors Stock Bank	150000 100000 80000 40000 30000
	400000		400000

The net profits for the last three years were Rs. 60,000, Rs. 80,000 and Rs. 1,00,000.

It was decided to calculate the value of goodwill at 2 ½ years purchase of super profit taking into consideration the standard rate of return on the capital employed at 15% Calculate the value of goodwill.

(B) What is a Computer? Explain limitations of computerized accounting system.

Q4. Surekha and Sangita decided to undertake a venture jointly.

They agreed to share profits and losses in the ration of 3:2. Surekha supplied from her own stock goods worth Rs. 4,00,000 and paid Rs. 9,900 for freight and Rs. 2400 for insurance. Sangita purchased goods of Rs. 3,90,000 for the venture and paid Rs. 14,000 for selling expenses.

Sangita accepted a bill for 3 months of Rs. 1,90,000 drawn by Surekha as an advance. The bill was discounted immediately by Surekha for Rs. 1,84,000 and the amount of discount was charged to Joint Venture Account. Sangita sold all the goods for Rs. 10,00,000. At the end of the venture, the accounts were settled. Give journal entries in the books of Surekha.

Q5.  Mr. Prabhakar is a retail trader. He had no proper methods of accounting. But the following information is made available to you. [March 2012]

Particulars	1.4.2009	31.3.2010
Sundry Debtors Sundry Creditors Bank Overdraft Stock Cash in hand Bills Receivable Furniture Motor van Computer 10% Govt. Bonds	45000 60000 80000 65000 2000 60000 10000 80000 60000	50000 70000 40000 80000 8000 80000 10000 80000 120000 10000

Adjustments.

1.        On 1^st October, 2009 Mr. Prabhakar had withdrawn Rs. 40000 for his personal use.

2.        10% Government Bonds were purchased of Rs. 10,000 on 1^st October, 2009.

3.        He had also withdrawn Rs. 30000 for his daughter’s marriage.

4.        Depreciate furniture by 10% and write off Rs. 2000 from motor van.

5.        Rs. 2000 is written off as bad debts and provide 5% R.D.D. on debtors.

6.        Allow interest on capital at 10% p.a.

7.        Charge interest on drawings Rs. 2,000.

Prepare after taking into consideration the adjustments.

Opening statement of affairs of 1.4.2009.

Closing statement of affairs of 31.3.2010.

6.. Following is the Receipts and Payments Account and additional information of Kalpana Hospital, Sakri. (March 2012)

Receipts and Payments account for the year ended 31^st March, 2010

Receipts	Amount	Payments	Amount
To Balance b/d To Subscriptions 200 8 – 2009 2009 – 2010 2010 – 2011 To Donations To Life Membership Fees To Hospital Receipts (Revenue)	6000 7500 95000 15000 55000 25000 150000	By Medicines By Honorarium to Doctors By Ambulance Maintenance By Hospital Equipments Purchased By Furniture Purchased By Fixed Deposits By Balance C/d	10000 75000 44000 30000 25000 100000 69500
	353500		353500

Additional Information:

i.                     Outstanding subscription for 200 9 – 2010 is amounted to Rs. 5000.

ii.                    Hospital Equipments and Furniture were purchased on 1.10.2009 and both were to be depreciated at 20% p.a.

iii.                  Life membership fees are to be capitalized.

iv.                   Donations represent donations for Building fund.

v.                    Staff salary for the current year is outstanding Rs. 7500.

vi.                   On 1.4.2009, the hospital had the following assets and liabilities: Land and Building Rs. 250000, Investments Rs. 50000, Ambulance Rs. 1,02,500, Bank Loan Rs. 2,00,000.

vii.                 Capital fund as on 1.4.2009 was amounted to Rs. 2,16,000.

Prepare: Income and Expenditure Account for the year ending 31^st March, 2010 and the Balance Sheet as on that date.

7.  Following is the Trial Balance of Jitesh and Pritesh. The partners share profits and losses equally. [March 2012]     Trial balance as on 31^st March, 2010

Particulars	Debit balances	Credit balances
Capital – Jitesh Pritesh Bills Receivable and Bills Payable Opening Stock Purchases and Sales Returns Salaries Wages Conveyance Commission Miscellaneous Expenses Warehouse Rent Brokerage Dock charges Insurance Goodwill Land and Building Shares in Bajaj Ltd. Cash in hand Sundry Debtors and Creditors Motor van	40000 70000 194000 3000 15600 28400 2200 3200 9000 3000 4200 4800 76000 180000 50000 3600 56000 60000	200000 120000 50000 363000 4000 6000 60000
	803000	803000

Adjustments

1.        Closing stock was valued at Rs. 75000.

2.        Depreciate land and building and motor van at 5% p.a.

3.        Insurance is paid for the year ended 31^st May, 2010.

4.        Jitesh has taken goods of Rs. 3000 for his personal use.

5.        Books of Rs. 8,000 were destroyed by fire and the Insurance Company admitted a claim of Rs. 6,400 only.

6.        Commission due but not received Rs. 1600

Prepare after taking into account the adjustments.

Trading and Profit and Loss account for the year ended 31^st March 2010 and Balance sheet as on that date.