MODEL QUESTION PAPERR NO. I
Q. 1. Attempt any Three of the following. [15]
A. Answer in one sentence only:
1. What is Balance Sheet?
2. What is Bad Debts?
3. What is Bill of Exchange?
4. What is Single Entry
System?
5. When is Realisation
account is opened?
B. Write the word / Term / Phrase which can substitute each of
the following statement:
1. A person who draws a bill
of exchange. (Drawer)
2. Winding up of partnership
business. (Dissolution of Partnership).
3. The credit balance of
Profit and Loss Account. (Net profit)
4. An excess of assets over
liabilities. (Capital)
5. The account which shows
change in the values of assets. (Revaluation Account)
C. Select the most appropriate alternative from the given below
and rewrite the statement:
1. There are ______ parties
to a bill exchange. (Three)
a. Three b. Two c.
Four d. Five
2. In case of dissolution
assets and liabilities are transferred to ____ account. (Realisation )
a. Bank b. Partner's Capital c. Realisation d. Partner's Current.
3. When goodwill is
withdrawn by old partners _________ Account is credited. (Cash or Bank)
a. Cash or bank b. Capital c.
Revaluation d. Profit and Loss
adjustment.
4. Generally incomplete
records are maintained by ______ (Trader)
a. Trader b. Company c.
Society d. Government
5. Excess of income over
expenditure is termed as _____(Surplus)
a. Deficit, b. Profit c.
Surplus d. Loss
D. State whether the following statements are True or False.
1. Single entry system is
based on certain rules and regulations. (False)
2. Not for profit concern do
not have profit motive. (True)
3. Bill of exchange is an
instrument in writing, containing an unconditional order. (True)
4. A bill of exchange is
signed by the person on whom it is drawn. (True)
5. Realisation loss is not
transferred to insolvent partner's capital account. (False).
E. Prepare a bill of exchange from the following details.
Drawer :
Soundariya, Neelam Bhawan, Kalyan
Drawee : Sugandi, Dastur Nagar, Amaravati
Payee : Umesh
, Deogad
Period : 90 days
Amount : Rs.
7,555
Date of bill : 15th
March 1995
Accepted on : 20th
March 1995
Q2. Following records of Mr. Raj were kept
on single entry system. (March 2009) [Ans]
[8 MARKS]
|
Capital At the Beginning 116900
|
Capital At the End 114700
|
Trading Profit 8800
|
Net Profit 3325
|
|
Particular
|
31.3.2006
|
31.3.2007
|
|
Stock
Furniture
Plant and
Machinery
Loan taken
Bank
Balance
Debtors
Creditors
|
15000
53500
42500
21000
1900
43000
18000
|
14000
44000
55500
21000
2100
35000
14900
|
Mr. Raj invested Rs. 4000 in
the business.
Also he had withdrawn Rs.
15,000 for his private expenses from business.
Rs. 500 to be provided for
bad debts.
Depreciate plant and
machinery @ 5% and furniture @5%
Prepare:
i.
Statement of Affairs as on 31.3.2006.
ii.
Statement of Affairs as on 31.3.2007.
iii.
Statement of Profit and Loss for the year ended on
31.3.2007.
OR
Q2. A. State the Objectives of Analysis of Financial Statements.(4)
(B) What is Cash Flow
Analysis? (4)
Q3. The Balance Sheet of
Rajkumar and Rajendra kumar as on 31st March, 2012 is set out below, they share
profits and losses in the ratio of 2:1.
[Ans. Profit and loss
Adjustment A/c (Profit ) 10500, Tally = 570500]
Balance sheet as
on 31st March, 2012 [10 MARKS]
|
Liabilities
|
Amount Rs.
|
Assets
|
Amount Rs.
|
|
Capital A/c
Rajkumar
Rajendrakumar
General Reserve
Creditors
|
200000
150000
120000
80000
|
Buildings
Furniture
Stock
Debtors
Cash
Profit and Loss
A/c
|
100000
30000
60000
300000
30000
30000
|
|
550000
|
550000
|
They agreed to
admit Dhirajkumar on 1st April, 2012 as a partner into the firm on the
following terms.
1.
Dhirajkumar to
bring Rs. 60000 as capital and Rs. 45000 as goodwill, which is to be retained
in the business. He will be entitled to 1/4 th share of profit of the firm.
2.
50% of General
Reserve is to remain as Reserve for doubtful debts.
3.
Furniture is to be
depreciated by 5%
4.
Stock is to be
revalued at Rs. 65,000.
5.
Creditors of Rs.
5000 are not likely to claim and hence should be written of.
6.
Rent of Rs. 2,000
due but not received has not been recorded in the books.
Pass necessary
journal entries in the books of new firm and prepare Balance sheet of the new
firm.
OR
Sanil, Nitish,
Sapna were partners in a firm sharing profits and losses in the proportion of
1/2 , 1/3, 1/6 respectively. Their Balance Sheet as on 31st March, 2012 was as
follows: [Ans. P/L Adj. Loss 2000, Sapna's loan a.c 27167, Tally = 212200]
Balance Sheet as
on 31 - 03 - 2012
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Bills Payable
Capitals:
Sanil
Nitish
Sapna
|
30000
80000
50000
30000
|
Machinery
Furniture
Sundry Assets
Stock
Debtors
Bank
|
40000
5000
60000
30000
32000
23000
|
|
|
190000
|
|
190000
|
Sapna decided to
retire on 1st April, 2012 on following terms:
1. Goodwill of the
firm will be valued at Rs. 30,000.
2. Furniture war
taken over by Sanil for Rs. 4,700.
3. Make a
Provision for unpaid expenses Rs. 1,700.
4. Out of the
amount due to Sapna Rs. 7,500 to be paid by cheque and the remaining amount to
be transferred to her loan account.
Prepare Profit and
Loss Adjustment Account, Partners’ Capital Accounts and Balance sheet of New
firm on 1st April, 2012.
Q4. Minal draws a bill on Usha for Rs. 5,000 at 3 months. Usha accepts the
bill and return to Minal. Minal discounted the bill @ 12 % p.a. with the bank. On
Maturity Usha finds herself unable to make payment of the bill and requested
Minal to renew the bill. Minal accepts the proposal on the condition that Usha
should Pay Rs. 2,000 in cash and accept a new bill at one month along with interest
at 10% p.a. These arrangements were carried through. Usha retires the bill by
paying Rs. 3015/- Pass Journal Entries in the books of Minal. [10 MARKS]
Q5. X and Y are equal partners. The following is their
Balance Sheet as on 31st March, 2012. [10 MARKS]
[Ans. Realisation
A/c Loss :18,000, Amount paid to X = 35000 Y = 8000 bank A/c Total = 61500]
|
Liabilities
|
Rs.
|
Rs.
|
Assets
|
Rs.
|
Rs.
|
|
X’s Capital
Y’s Capital
Reserve Fund
X’s Loan
Creditors
|
40000
30000
8000
2000
15000
|
Building
Machinery
Furniture
Debtors
Less: R.D.D.
Stock
Investments
Commission
REceivable
Bank
|
8800
- 800
|
30000
10000
12000
8000
20000
4000
1000
10000
|
|
|
95000
|
95000
|
The firm was
dissolved on 31st March, 2012
(i) The Assets
realised as follows:
Stock Rs. 19,000,
Debtors Rs. 7,500, Machinery Rs. 11,000, Building Rs. 14,000
ii. Y took over
the investments Rs. 5000 and Furniture at Book Value.
iii. X agreed to
accept Rs. 1500 in full settlement of his Loan Account.
iv. Dissolution
expenses amounted to Rs. 2000.
v. Commission Receivable
could not be recovered.
Prepare
Realisation Account, X’s Loan Account, Capital Accounts and Bank Account.
OR
ABC Industries Co. Ltd
issued 15000 equity shares of Rs. 100 each. Payable as follows:
On Application : Rs. 20, On
Allotment : Rs. 30. On First Call : Rs. 25. On Second call :Rs: 25
The company received
application for 12000 shares. All the applications were accepted and shares
were allotted. The company made both calls.
One shareholding holding 400
shares failed to pay the final call. His shares were forfeited.
Pass journal entries in the
books of ABC industries Co. Ltd.
Q6. Dr. Narendra commenced practice in the month of April 2007. He prepared
the following Receipts & Payments Account for the year ended 31st
March, 2008. [12 MARKS]
Ans.
|
Surplus : 3895
|
Balance sheet
Total 9300
|
Receipts and Payments A/c
For the year ended 31st March, 2008
|
Receipts
|
Amount
|
Payments
|
Amount
|
|
To Cash
To Visits
To Sundry
Receipts
|
10000
7000
400
|
By Furniture
By Equipment
By Drugs
By Salaries
By Rent
By conveyance
By Stationery
By Lighting
By periodicals
By Drawings
By Balance c/d
|
1500
2500
2000
1000
500
700
100
125
100
4375
4500
|
|
17400
|
17400
|
- Rs 200 were to be
received on account of visits.
- Unpaid Salaries Rs. 200
- 60% of conveyance is
for private purposes.
- Value of drugs on hand
was estimated at Rs. 1,000.
- Depreciate furniture
and equipment by 10%
- Prepare Income and Expenditure account and
balance sheet.
Q7. From the following Trial Balance of M/s Sonia and Sufi, you are
required to prepare Trading Profit and Loss Account for the year ended 31st
December, 2004 and the Balance sheet as on that date. [15 MARKS]
Ans.
|
GROSS PROFIT 34200
|
GROSS LOSS 20700
|
PARTNER CAPITAL ACOUNT
BALANCE 155200-129650
|
TALLY 487350
|
Trial
Balance as on 31.12.2004
|
Particulars
|
Debit (Rs.)
|
Credit (Rs.)
|
|
Sonia’s Capital
Sufi’s capital
Sonia’s Drawing
Sufi’s Drawing
Stock on 1 – 1 – 2004
Bills Receivable
Purchases
Sales
Bills Payable
Return In ward
Return Outward
Plant and Machinery
Loose Tools
Patents
Sundry Debtors
Sundry Creditors
Cash at Bank
Wages
Salaries
Rent and Taxes
Insurance
Printing and Stationery
Power and Fuel
|
14, 450
10, 000
2, 00, 000
25, 000
2, 75, 000
5, 000
1, 00, 000
25, 000
25, 000
1, 25, 000
77, 550
19, 000
17, 500
7, 500
3, 000
2, 000
3, 500
|
1, 80, 000
1, 50, 000
4, 00, 000
60, 000
4, 500
1, 40, 000
|
|
9, 34, 500
|
9, 34, 500
|
Adjustments:
1. Stock as on 31st December, 1978 Rs. 1,
30,000 and its market value were Rs. 1, 40,000.
2. Write off Rs. 1000 for bad & Provide for Bad and
Doubtful debts at 5% on Sundry Debtors.
3. Goods worth Rs. 1000 were distributed as free samples.
4. Prepaid Insurance Rs. 750.
5. Depreciate Plant and Machinery by 10% p.a. and Patent
by 15% p.a.
6. Outstanding Salaries Rs. 2,500
7. Uninsured goods worth Rs 1200 were lost by fire.
