ACCOUNTS PAPER ONE AS PER NEW SYLLABUS MAHARASHTRA STATE BOARD

OMTEX CLASSES                      ACCOUNTS PAPER I

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?

ANS. A balance sheet is a statement of assets and liabilities which shows financial position of business at the end of the year. 

2. What is Bad Debts?
Ans. The amount due from debtors which is irrecoverable is known as bad debts. 

3. What is Bill of Exchange?
Ans. A bill of exchange is a negotiable instrument containing an unconditional order signed by the maker directing a certain person to pay a sum of money only to the bearer of the instrument. 

4. What is Single Entry System?
Ans. A system of recording transaction in which only one aspect of the business transaction are recorded. It is an unscientific method of recording transaction. 

5. When is Realisation account is opened?
Ans. Realisation account is opened when there is a need to find profit or loss made on Realisation of assets and liabilities during the winding up of partnership firm.  

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 When goodwill is withdrawn by old partners _________ Account is credited.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                 :         15^th March 2012

     Accepted on                :         20^th March 2012

Q2.  Mrs. Archana keeps her books on single entry system and gives the following information.

Particulars	31-3-13	31 – 3 – 14
Cash at bank Sundry debtors Stock in trade Furniture Machinery Bills payable Sundry creditors	5000 25000 30000 20000 50000 5000 15000	32000 40000 50000 20000 50000 5000 20000

  

1.      Mrs. Archana withdrew from business Rs. 15,000 for personal use.

2.      She further introduced fresh capital of Rs. 25,000.

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

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OR

Q2. A. State the Objectives of Analysis of Financial Statements.(4)

(B) What is Cash Flow Analysis? (4)

Q3. Snehal and Meenal are equal partners in a business. Their Balance Sheet is as follows:

Balance Sheet as on 31^st March, 2012

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital A/c			Premises		20500
Snehal	80000		Investments		10500
Meenal	45000	125000	Equipments		5000
Creditors		26000	Bills Receivable		18000
Bank Loan (Taken on 1.1.2012)		40000	Debtors	110000
			(-) R.D.D.	-11000	99000
			Profit & Loss A/c		6600
			Bank		31400
		191000			191000

They agreed to admit Kamal on 1^st April, 2012 on the following terms:

1. She should bring Rs. 50000 towards her capital for ¼ th share in future profit.

2. Goodwill A/c be raised in the books of the firm for Rs. 40,000.

3. R.D.D. to be maintained at 5% on debtors.

4. Premises to be valued at Rs. 30,000 and Equipments to be written off fully.

5. Interest at the rate of 15% p.a. is due on bank loan.

6. Creditors allowed a discount of Rs. 1,100 and they were paid off immediately.

Pass necessary Journal Entries to record the above scheme of admission.

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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]

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Q5. Ganesh and Chandan were partners sharing profits and losses in the proportion of 3:2. They dissolve partnership firm on 31^st March, 2011 when their position was as follows:

Balance Sheet as on 31^st March, 2011.

Liabilities	Amount	Amount	Assets	Amount	Amount
Sundry Creditors		25000	Debtors	112500
Bank Overdraft		20000	Less: R.D.D.	-12500	100000
Reserve Fund		30000	Stock		225000
Capital A/c			Furniture		50000
Ganesh		230000	Motor Car		75000
Chandan		150000	Cash in Hand		5000
		455000			455000

 The Assets realised as follows: Debtors Rs. 90,000, Stock Rs. 2,00,000, and Goodwill Rs. 25000,, Motor Car was taken over by Ganesh for Rs. 70,000 and Furniture by Chandan for Rs. 60,000.

The Creditors were paid Rs. 22500 in full settlement. The expenses of realisation amounted to Rs. 10,000.

Pass necessary journal entries in the books of the firm.

Solution

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 31^st March, 2008. [12 MARKS]

Ans.

Surplus : 3895

Balance sheet Total 9300

Receipts and Payments A/c For the year ended 31^st 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

1. Rs 200 were to be received on account of visits.
2. Unpaid Salaries Rs. 200
3. 60% of conveyance is for private purposes.
4. Value of drugs on hand was estimated at Rs. 1,000.
5. Depreciate furniture and equipment by 10%





Prepare Income and Expenditure account and balance sheet.

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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 31^st 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 31^st 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. 

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