HSC ACCOUNTS MODEL QUESTION PAPER FOR BOARD EXAM

Q1. Answer any four of the following.                                             (20 marks)

A. Answer the following.          (5)

1. What is fluctuating capital method?
2. What is fixed capital method?
3. What is current account?
4. What is partnership deed?
5. What is partnership?

B. Write word/term/phrase which can substitute each of the followings:         (5)

1. List of debit and credit balances of the ledger accounts.
2. Part of the final accounts prepared on the basis of indirect expenses and indirect incomes of the business. Or An account showing net profit or net loss of business.
3.  Statement showing the financial position of a business in the form of its assets & liabilities as on a particular date.
4. Transport expenses paid on goods bought.
5. Expenses paid during the current accounting year but applicable to the next accounting year.

C. Match the pairs.          (5)

	A		B
1. 2. 3. 4. 5.	Income and expenditure account Specific fund Receipts & payments accounts Balance sheet Stock of stationery	1. 2. 3. 4. 5. 6. 7.	Summary of receipts and payments Profit or loss Financial position of a concern Assets side of balance sheet Debit side of income & expenditure accounts Deficit or surplus Liabilities side of balance sheet.

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

1. Debit Balance in Profit and Loss Account shows _______________
1. Net profit
2. Gross profit
3. Net loss
4. Gross loss
2. A bill of exchange must be accepted by ___________________
1. A drawer
2. A payee
3. An endorsee
4. A drawee
3. At the end of the financial year balance of Depreciation account is transferred to _______________
1. Depreciation account
2. Asset account
3. Trading account
4. Profit and loss account.
4. In the absence of partnership deed the partners share the profit and loss of the firm _____________
1. In the ratio of capital
2. Equally
3. As per rights in management
4. On the basis of experience.
5. ____________ has to ultimately bear the noting charges.
1. Drawer
2. Drawee
3. Endorser
4. Bank

E. State True / False with reasons. (Any Two)    (5)

1. Under fixed capital method for each partner two accounts are maintained.
2. Under fixed instalment method depreciation is charged on the diminishing value of the asset.
3. Interest on partner’s drawings is debited to Profit and loss appropriation account.

F. Prepare a bill of exchange from the following information:

Drawer: Vilas Patil, 21. M.G. Road, Pune

Drawee: Vikas Pawar, 31. S.V. Road, Nasik.

Payee: Viraj Potade, 41, A.B. Road, Sholapur,

Period: 2 months

Amount: Rs. 7,500/-

Date of Bill: 1^st January, 2007.

Date of acceptance: 3^rd January, 2007.

Q2. M/s Mangrulkar & Co. purchased machinery on 1^st October, 2000 costing Rs. 56,000. On the same date firm spent Rs. 4000 for its erection. On 1^st April, 2001 additional machinery was purchased for Rs. 30,000. The machine costing Rs. 8000 on 1^st October, 2000 was sold out on 31^st March, 2003 for Rs. 6,000. On the same date a new machine costing Rs. 28,000 was purchased. Every year on 31^st March depreciation is charged at 10% p.a. on the cost price of machinery. Prepare: Machinery A/c and Depreciation A/c for three years, i.e. 2000 – 01 , 2001 – 02 and 2002 – 03 in the books of the firm.

OR

Calculate the value of goodwill of the firm from the following information.

i.                    Total capital employed in the business is Rs. 4,00,000.

ii.                 Net profits of the firm for the past three years were Rs. 53,800, Rs. 45,350, Rs. 56,250.

iii.               Normal rate o f return at 10%.

iv.                Goodwill is to be valued at three years purchase of super profit.

AND

Explain the role of computer in accounting.

Q3. Rupa purchased goods from Deepa on credit for Rs. 10,000 and accepted a bill drawn by Deepa for four months. Deepa discounted the bill with her bank for Rs. 9,700. Before due date, Rupa approached Deepa with a request to renew the bill. Deepa agreed but with the condition that Rupa should pay Rs. 6000 with interest of Rs. 120 and accept a new bill for the balance. The arrangements were duly carried out. New bill is met on the due date. Pass the necessary journal entries in the books of Deepa.

OR

Journalise the following transactions in the books of Ashwin.

a.      Bank informed that Sachin’s acceptance for Rs. 5750 sent to bank for collection had been honoured and bank charges debited were Rs. 50.

b.      Nitin renewed his acceptance for Rs. 7,200 by paying Rs. 2,200 in cash and accepting a new bill for the balance plus interest @ 8% p.a. for 3 months.

c.       Discharged our acceptance to Pravin for Rs. 4250 by endorsing Bhavin’s acceptance to us for Rs. 4,000.

d.      Jatin who had accepted Ashwin’s bill of Rs. 8500 was declared insolvent and only 40% of the amount could be recovered from his estate.

Q4. Ramsingh of Rampur and Narsingh of Nagpur entered into Joint Venture. They decided to send 500 TV sets to Harsingh of Hyderabad on their joint risk. They share profits and losses in the ratio of 3/5 and 2/5 respectively. Ramsingh sent 300 sets at Rs. 2,500/- each and paid Rs. 17,000/- for the expenditure of sending the goods. Narsingh sent 200 TV sets at Rs, 2,000/- each and paid Rs. 13,000 for the expenditure of sending the goods. Ramsingh advanced to Narsingh Rs. 50,000/- on account of Joint Venture. All the TV sets were sold by Harsingh for Rs. 14,00,000/- from which he deducted 3% for his expenses and 2% commission on total sales and he remitted Rs. 10,00,000 to Ramsingh and the balance amount to Narsingh. The co – venturers closed their venture and settled their accounts. Prepare: Joint Venture A/c, Narsingh A/c, Harsingh A/c in the books of Ramsingh.

Q5. Mr. Suryakant maintains books on single entry and who gives you the following information.

Particulars	31-3-2006	31-3-2007
Cash in hand Cash at bank Stock Sundry debtors Investments Furniture Machinery Sundry creditors Outstanding expenses	500 2500 20000 25000 20000 10000 25000 10000 3000	2000 5000 30000 40000 20000 25000 40000 10000 2000

 Additional information

1.       Mr. Suryakant introduced further capital of Rs. 20000 on 1^st July, 2006 and had withdrawn Rs. 10,000 during the year.

2.      Interest on capital is allowed at 10% p.a.

3.      Additions to furniture and machinery were made on 1^st October, 2006

4.      Write of deprecation on furniture and machinery at 10% p.a.

5.      Create reserve for doubtful debts at 5% on sundry debtors.

6.      Prepare: a. statement of affairs. b. statement of profit and loss for the year ended 31^st March, 2007.

Q6. From the following Balance sheet and Receipts and Payments Account of Padmavati High School, Thane, prepare Income and Expenditure account for the year ended 31-03-2007 and balance sheet as on that date.

Balance sheet as on 31^st March, 2006

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Entrance fees Capital fund	30000 519000	Furniture Computer laboratory Library Investment Cash in hand Cash at bank Outstanding Tuition Fees	84000 100000 125000 200000 5000 15000 2000
	549000		549000

Receipts and Payment Account for the year ended 31^st March, 2007

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
To balance b/d Cash in hand Cash at bank To Tuition Fees To Term Fees To Government Grant (salary) To Sundry receipts To sale of old newspapers To interest on investments To Donation of library	5000 15000 400000 120000 104500 11000 500 10000 150000	By Furniture purchased By Salaries By rent By Sundry expenses By Stationery By Annual gathering expenses By repairs of buildings By Insurance By Balance c/d Cash in Hand Cash at Bank	52000 300000 140000 27000 49000 24000 32500 2000 44500 127000
	816000		816000

Adjustments:

1.       Tuition fees receivable Rs. 150000

2.      Salary still payable Rs. 150000

3.      Rent paid in advance Rs. 20000

4.      Insurance premium is paid for one year ending 30-9-07

5.      Depreciate furniture and library at 10% and computer laboratory at 20%. Depreciation is to be charged on the closing balance of assets.

Q7. Ram and Sham are partners sharing Profits & Losses in the ratio of 2:3. Their trial balance as on 31^st March, 2005 is given below. You are required to prepare Trading A/c and Profit & Loss A/c For the year ending 31^st March, 2005 and a Balance sheet as on that date after taking into account the given adjustments.

Trial Balance as on 31^st March, 2005

Particulars	Amounts	Particulars	Amounts
Purchases Patent rights Buildings Stock(1-4-2004) Printing & Stationery Sundry Debtors Wages & Salaries Audit Fees Sundry Expenses Furniture 10% investment (purchased on 1-10-2004) Cash Provident fund contribution Carriage inward General expenses	98, 000 4, 000 1, 00, 000 15, 000 1, 750 35, 000 11, 000 700 3, 500 8, 000 10, 000 4, 000 800 1, 300 2, 700	Capitals: Ram Sham Provident Fund Creditors Bank Loan Sales Reserve for doubtful debts Purchase Returns.	30000 40000 7000 45000 12000 158000 250 3500
	295750		295750

Adjustments

1.      Closing stock is valued at Rs. 18, 000 which is 20% above the cost price.

2.     On 31^st March, 2005 the stock of stationery was Rs. 500.

3.     Reserve for bad and doubtful debts at 5% on debtors.

4.     Depreciate building at 5% and Patents at 10%

5.     Interest on capital is to be allowed @5%.

6.     Goods worth Rs. 10, 000 were destroyed by fire. The insurance company admitted a claim for Rs. 8, 000/-.