ACCOUNTS PAPER TWO WITH ANSWER FOR PRACTICE AS PER NEW SYLLABUS MAHARASHTRA STATE BOARD

OMTEX CLASSES              ACCOUNTS SAMPLE PAPER
AS PER NEW PAPER PATTERN MODEL QUESTION PAPER NO. TWO

Q. 1. Attempt any Three of the following.  [15]

A. Answer in one sentence only:
1. What do you mean by freight?
Ans. Transport charges paid to shipping company, railways or airways for carrying goods are called freight. 

2. What is meant by Reconstitution of Partnership?
Ans. Reconstitution of partnership means change in the relationship between the partners and the form of partnership. It includes admission, retirement or death of partner from an existing firm. 

3. Who is a drawer?
Ans. A person who draws a bill is known as drawer. He is the creditor and he has to receive the money from the debtor. 


4. What is dissolution of partnership firm??
Ans. Dissolution of partnership firm means complete closure of partnership firm. 

5. Define call - in - advance?
Ans. When some shareholders pay future amount of calls in advance, is called calls - in advance. 


B. Write the word / Term / Phrase which can substitute each of the following statement:
1. Payment of the bill before due date. (Retirement of bill)
2. Debit Balance in Realisation Account. (Realisation Loss)
3. Stock in hand at the end of the accounting year. (Closing Stock)
4. A Statement similar to Balance sheet. (Statement of Affairs)
5. Name of intangible Assets having a value. (Goodwill.)

C. Select the most appropriate alternative from the given below and rewrite the statement:
1. Noting charges must be borne by ____ (Drawee)
a. Drawer   b. Drawee c. Payee   d. Endorser
2. Realisation Account is _____ on realisation of assets. (credited)
a. Debited  b. Credited   c. Deducted   d. Added.
3. Increase in the value of assets should be ____ to profit and loss adjustment account. (Credited)
a. Debited  b. Credited   c. Added   d. Deducted
4. The capital balances are ascertained by preparing ________ (Statement of affairs)
a. Statement of affairs.   b. Cash Account  c. Drawing Account.  d. Debtors account. 
5. Income and Expenditure Account is a ______ (Nominal Account)
a. Capital Account.   b. Real Account   C. Personal Account  d. Nominal Account.

D. State whether the following statements are True or False.
1. All transactions are recorded in Single Entry System. (False)
2. Receipts and Payment Account do not have any opening Balance. (False)
3. A bill can't be deposited into bank for collection. (False)
4. Drawee can transfer the ownership of the bill. (False)
5. On Dissolution, cash or bank account is closed automatically. (True)

E. Prepare a bill of exchange from the following details.

On 10th March, 2013 Rajesh Bhoyar, Gandhinagar, Nagpur draws a 2 months bill for Rs. 3,000 on Samir Choudhary, Main Road, and Belapur. Samir Choudhary accepted the bill on 15th March 2013.



Q2.  The following information is available from Ram’s records:
Ans.

Beginning Capital 83000
End Capital  81000
Trading Profit  27000
Net Profit  25000

Particular
1.4.06
31.3.07
Creditor
Bank overdraft
Bank balance
Plant and machinery
Furniture
Debtors
Stock
5,000
-
10,000
10,000
4,000
30,000
34,000
8,000
15,000
-
20,000
4,000
52,000
28,000
Ram had withdrawn Rs.5000 for personal expenses and Rs. 4000 for son’s marriage. Out of business funds, he had also purchased a residential building costing Rs.20000, which is not shown in the above balance. Additions to Machinery were made on 1/04/06. Dep. at 10 %p.a. should be provided on plant and machinery. Find out Ram’s net profit for the year ended 31st march 07.


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OR
Q2. A. State the Objectives of Analysis of Financial Statements.(4)
(B) What is Cash Flow Analysis? (4)

Q3. The Balance Sheet of Ramakant and Shyamkant who shared the profits in the ratio of 2:1 is as under:

Balance Sheet as on 31 st March, 2012


Liabilities
Amount
Amount
Assets
Amount
Amount
Capital: Ramakant
134000

Leasehold Property

20000
Shyamkant
120000
254000
Livestock

6600
Creditors

51000
Loose Tools

90200
Rent Outstanding

10000
Stock

84800
Reserve Fund

7200
Debtors
48000

Current A/c: Ramakant

2800
(-) R.D.D.
-2000
46000



Bank

75400



Current A/c: Shyamkant

2000

On 1st April, 2012 Umakant was admitted as 1/4th partner on the following terms:

1. He brings equipments of Rs. 80,000 as his capital.

2. Firm's Goodwill is valued at Rs. 1,44,000 and Umakant agreed to bring his share in firm's goodwill by cheque.

3. R.D.D. should be maintained at 7.5% on debtors.

4. Increase the value of livestock by Rs. 2,600 and write off loose tools by 20%.

5. Outstanding rent paid Rs. 9040 in full settlement.

Pass necessary journal entries to record the above scheme of admission.


OR
 Pai, Amba and Manoj are partners in a firm sharing profit and losses in the proportion to their capitals. Their Balance Sheet as on 31st March 2012 is as follows.
[Ans. Profit on Revaluation Rs. 1800, Pai's loan A/c 37720 Balance sheet total 150800]
Liabilities
Amount
Assets
Amount
Capitals:
Pai
Amba
Manoj
Creditors
Outstanding Expenses
Profit and Loss A/c

30000
30000
15000
7000
15000
20000
Cash
Stock
Debtors
Plant
Building
Motor Van
Goodwill
3000
12000
20000
13000
20000
31000
18000
117000
117000
On the above date Pai retired and the following adjustments have been agreed upon.
1.   Goodwill was valued at Rs. 15,000
2.   Assets and liabilities were revalued as under Debtors Rs. 17,000 stock at 90% of book value Building Rs. 35,000. Plant Rs. 11500, Motor Van Rs. 29500 and outstanding expenses Rs. 18,000.
3.   Amba and Manoh contributed additional capital of Rs. 20,000 and Rs. 10000 respectively.
4.   Balance due to Mr. Pai is transferred to his loan account after paying him Rs. 1000.
Prepare: Profit and loss Adjustment A/c, Partner’s Capital A/c and balance Sheet of new firm.

Q4. On 1st March, 2013. Ramchandra sold goods to Raman worth Rs. 8,000/- and Raman accepted the Bill for Rs. 8,000/- at 3 months drawn by Ramchandra. Ramchandra discounted the bill with his bank @ 6% p.a. On due date the bill was dishonoured and Raman requested Ramchandra to accept Rs. 4,000/- immediately and draw upon him a new bill for the remaining amount at 3 months together with an interest @ 10% p.a. Ramchandra agreed. The second Bill was duly honoured. Give Journal entries in the books of Ramchandra.  [Solution]  [10 MARKS]


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Q5. Devendra and Ganesh were partners sharing profits and losses in the ratio of 3:2. They dissolved the partnership firm on 31st March, 2013 when their position was as follows.:


Balance Sheet as on 31. 03. 2013

Liabilities
Rs.
Rs.
Assets
Rs.
Rs.
Sundry Creditors
12,500
Debtors
56250
Bank overdraft
10,000
(-) R.D.D.
( - ) 6250
50,000
Reserve Fund

15,000
Stock

1,12,500
Capital Accounts


Furniture

25,000
Devendra
1,15,000

Motor Car

37,500
Ganesh
75000
190000
Cash in hand

2500


227500


227500

The assets realised as follows:
(1) Debtors Rs. 45,000, stock Rs. 1,00,000 and goodwill Rs. 12,500
(2) Motor car was taken over by Devendra for Rs. 35,000 and furniture by Ganesh for Rs. 30,000.
(3) The creditors were paid Rs. 11,250 in full settlement.
(4) The realisation expenses were Rs. 5,000.
Pass necessary journal entries in the books of the firm.



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. Subhash Raje started practice as a medical practitioner on 1st April, 2007. He gives you the Receipts & Payments Accounts for the year 2007 – 08 and the adjustments to be made. Prepare his Income and Expenditure Account and Balance sheet for 2007 -08.
[Ans.]
Surplus   80800
Tally   148200

Receipts and payments account for the year ended 31st March, 2008.
Receipts
Amount
Payments
Amount
To Cash Introduced
To Visits
To Receipts From Dispensary
To Sundry Receipts
107500
84000
64000
12000
By Furniture
By Equipment
By Drugs
By Salary
By Rent
By Conveyances
By Stationery
By Lighting
By Journals
By Drawings
By Balance c/f
50000
40000
35000
24000
6000
18000
5600
10000
1200
37700
40000
267500
267500
Adjustments:
1.   Receipts in arrears are: Visits Rs. 11,500 and Dispensary Rs. 9,000.
2.   The outstanding salaries are Rs. 1,800 and the outstanding expenses on drugs are also Rs. 3,000.
3.   40% of the amount spent on conveyance was for domestic use.
4.   Stock of drugs in hand at the close of the year was worth Rs. 4,200.
5.   Depreciate furniture at 5% p.a. and equipments at 10% p.a.  Furniture and equipment purchased on 1st April 2007.

Q7. Misha and Latha are partners sharing profits and losses in the ratio of 2 : 1. From the following Trial Balance prepare Trading and Profit and loss account for the year ending 31st December, 2004.
G.P. 28100
N.P 12154
Partner's Capital Account 68103-33951
Tally 133855

                                      Trial Balance as on 31.12.2004
Particulars
Debit (Rs.)
Credit (Rs.)
Stock (1st January)
Sundry Debtors
Bills payable
Purchases
Wages
Returns Outward
Salaries
Office Expenses
Insurance
Plant & Machinery
Sundry Creditors
Rent
Sales
Reserve for Doubtful Debts
Travelling Expenses
Returns Inward
Land and Building
Bills Receivable
Bank
Misha’s capital
Latha’s capital

10, 000
28, 000

40, 000
8, 500

2, 700
2, 446
1, 300
30, 000

1, 800


1, 400
3, 500
44, 800
3, 400
6, 655


10, 101


2, 500




21, 500

60, 000
400





60, 000
30, 000
1, 84, 501
1, 84, 501
Adjustments:

1.   Closing stock was valued at Rs. 26,500.
2.   Provide 10% Depreciation on Plant and Machinery.
3.   Goods worth Rs. 1000 were distributed as free samples.
4.   Prepaid Insurance Rs. 300.
5.   Maintain Reserve for Doubtful debts at 1% of Sundry debtors.
6.   Outstanding rent for the current year Rs. 200.
7.   Goods worth Rs. 100 were taken over by Latha for her personal use, but no entry is made in the books.


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