Tuesday, January 10, 2017

Book Keeping & Accountancy July 2016 Board Paper

Book Keeping & Accountancy July 2016 Board Paper


Book Keeping & Accountancy


July 2016 Board Paper


Q. 1. A. Answer the following questions in one sentence each. [5]


(1) What is Trial Balance?


Ans. Trial balance is a statement showing the list debit and credit balances of all the ledger accounts on a particular date.


(2) What shows credit balance of revaluation account?


Ans. Profit on Revaluation Account.


(3) What are ‘convertible debentures’?


Ans. Convertible Debentures; - Convertible Debentures are those which can be converted either partly or wholly into equity shares after the completion of a definite period. The rate of interest and date of conversion is decided at the time of issue. The interest is paid up to the date of conversion. On conversion the debenture holders are eligible for dividends and other rights and privileges of shareholders.


(4) Who is ‘Payee’?


Ans. Payee is the person or party to whom the amount of bill is made payable.


(5) What is single entry system?
Ans. A bookkeeping system that only records one aspect of each business transaction. i.e. either debit or credit is called single entry system.


(B) Write a word / term / phrase which can substitute each of the following statements: (5)


(1) The accounts which are prepared at the end of each financial year.


Ans. Trading and Profit and Loss Account.


(2) The fees paid by a person who wants to become a life member of the concern, for his whole life.


Ans. Life membership fees.


(3) The acknowledgement of debt under common seal of company.


Ans. Debenture Certificate


(4) Payment of the bill before its due date.


Ans. Retirement of Bill.


(5) Critical evaluation of financial statement to measure profitability.


Ans. Analysis of financial statement

(C) Select the most appropriate alternative from those given below and rewrite the statements. (5)


(1) All indirect expenses are debited to ____________ account.


(a) Trading
(b) Capital
(c) Profit and Loss
(d) Current


(2) Share of profit of a deceased partner till the date of death is ____________


(a) debited to profit  and loss adjustment account.
(b) credited to profit and loss adjustment account.
(c) debited to profit and loss suspense account.
(d) credited to profit and loss suspense account.


(3) If any asset is taken over by a partner from the firm, his capital account will be ______________


(a)  credited
(b) debited
(c) added
(d) none of these


(4) There are ____________ parties to the Bill of Exchange.


(a) two
(b) three
(c) four
(d) five


(5)  Further capital introduced during the year is _________ from closing capital in order to find out the correct profit.


(a) added
(b) deducted
(c) divided
(d) ignored


(D) State whether the following statements are True or False. (5)


(1) All receipts are the items of revenue income. [False]


(2) At the time of dissolution loan from partner will be transferred to realisation account. [False]


(3) A Bill of Exchange is a negotiable instrument. [True]


(4) Acceptance without making any change in the terms of bill is called general acceptance. [True]


(5) Ratio analysis is useful for inter - firm comparison. [True]


(E) Prepare a specimen of Bill of Exchange from the following information: (5)


Shri Arjun Patil, 104, Shivaji Nagar, Ambajogai draws a two months bill on Shri Tukaram Magdum,  Daulat Road, Halkarni, Kolhapur payable to Shri Ranveer Patil, Mondha, Parali Vaijanath on 23 rd August, 2013 for Rs. 7550. Shri Tukaram Magdum accepted it on 28th August, 2013 for Rs. 7500 only.


Answer:


☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺


Q. 2. Mrs. Shailaja keeps her books under single entry system and gives the following information.  (8)


Particulars
1.4.2012
31.3.2013

Amount (Rs. )
Amount (Rs.)
Investments

12000
Bank overdraft

10000
Bills payable
5000
8000
Creditors
26500
31500
Furniture
9000
19000
Debtors
35000
50000
Stock
15000
19000
Bank Balance
18000
28000


Further information:


(1) Mrs. Shailaja withdrew Rs. 4000 for her personal use. She received Rs. 15,000 from her father as gift, which she brought into the business.


(2) Additional furniture was purchased on 01.10.2012. Depreciate furniture by 10% p.a.


(3) Write off Rs. 1,000 as bad debts and provide 5% R.D.D. on debtors.


Prepare: Opening and closing statement of affairs and statement of profit or loss for the year ended 31st March, 2013.


OR


(A) Explain the limitations of analysis of financial statements.




(B) Explain the operating activities on cash flow.




☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺


Q. 3. Following is the balance sheet of Harish and Girish:


Balance Sheet as on 31st March, 2010


Liabilities
Amt.
Amt.
Assets
Amt.
Amt.
Creditors

38000
Cash in Hand

37000
Bills Payable

46000
Stock

21000
Profit & Loss A/c

16000
Debtors
46000

Capital A/c


(-) R.D.D.
-6000
40000
Harish
100000

Equipments

12000
Girish
140000
240000
Furniture

25000



Plant

85000



Buildings

120000


340000


340000


They admitted Shirish on 1st April, 2010 on the following conditions:


1. For his 1/3 rd share in the future profits, Shirish brings Rs. 2,00,000 as his capital.


2. It is decided to raise goodwill by Rs. 90,000 and write off fully after Shirish Admission.  


3. Equipments and Plant are to be depreciated by 20% and 10 % respectively and Building is to be appreciated by 15%.


4. Bills Payable were retired for Rs. 35,000.


5. All debtors are to be considered good.


6. Furniture of the book value Rs. 12,000 was taken over by Harish at 40% of the book value.


Prepare, Revaluation A/c. Partners' Capital A/c and Balance Sheet of the new firm.




OR


Anita, Sunita and Kavita were partners sharing profits and losses in the ratio 3:3:2. Their Balance Sheet as on 31st March 2013 is as below:


Balance Sheet as on 31st March, 2013.
Liabilities
Amount
(Rs.)
Assets
Amount
(Rs.)
Capital Accounts

Building
10000
Anita
11000
Machinery
10700
Sunita
15000
Furniture
10000
Kavita
8000
Debtors
5000
Creditors
10000
Stock
6600
Reserve fund
4000
Cash
6600

48900

48900


On 1st April, 2013, Mrs. Kavita retired from the firm on the following terms:


(1) Goodwill of the firm is to be valued at Rs. 4,000, however, only Kavita’s share in it is to be raised in the books and written off immediately.


(2) Assets to be revalued as under:
Stock Rs. 6,300; Machinery Rs. 10,000; Furniture Rs. 10,200.


(3) R.D.D. to be maintained at 10% on debtors.
(4) Rs. 100 to be written off from creditors.
(5) The amount payable to Mrs. Kavita is to be transferred to her loan account.


Prepare :


(1) Profit and loss adjustment account.
(2) Partner’s capital account, and
(3) Balance Sheet of new firm as on 01.04.2013.


Q.4. Journalise the following transactions in the books of Jaydeep. [10]


(A) Arvind renews his acceptance of Jaydeep of ` 7,000 with interest ` 500 for two months.
(B) Bank informed Jaydeep that Mahadev’s acceptance of ` 4,000 which was discounted and
dishonoured. Bank charged noting charges ` 80.
(C) Hanumant informed Jaydeep that Kazi’s acceptance for ` 7,000 endorsed to Hanumant has been dishonoured, noting charges `85.
(D) Datta honoured his acceptance of `4,900, which was sent to bank for collection. Bank debited ` 100 for bank charges.
(E) Radhika retired her acceptance to Jaydeep of ` 9,000 by paying ` 8,700.




Q5. Rahul, Rohit and Ramesh were partners in a firm sharing profits and losses in the ratio of 2:2:1 respectively. The Balance Sheet as on 31.03.2013 was as follows: [10]


Balance Sheet as on 31st Mar, 2013


Liabilities
Amount
(Rs. )
Assets
Amount
(Rs.)
Amount
(Rs.)
Sundry Creditors
20000
Cash at Bank

8000
Bills Payable
5000
Debtors
16000

General Reserve
6000
Less: R.D.D.
-1000
15000
Rahul’s Loan A/c
16000
Stock

20000
Capital Account

Plant and Machinery

30000
Rahul
25000
Furniture

6000
Rohit
10000
Ramesh’s Capital Account

3000






82000


82000


The firm was dissolved on the above date:


(1) Assets realised as follows:
Debtors Rs.  9,000, Plant and Machinery Rs. 26,000, Stock Rs.  14,000, and Furniture Rs.  3,000.


(2) The creditors were paid Rs. 18,000, in full settlement and the bills payable were paid in full.


(3) The realisation expenses amounted to Rs. 3,000.


(4) Ramesh became insolvent and was able to bring in only Rs. 1,800 from his private estate.


Prepare:
(1) Realisation account
(2) Partner’s capital account and
(3) Bank account.




OR


Q5. Mahakali Co. Ltd. Chandrapur issued 1,000, 12% debentures of ` 100 each, payable ` 20 on application and the balance on allotment. Applications were received for 1,500 debentures, out of which, applications for 900 were allotted fully, applications for 400 were allotted 100 debentures and remaining were rejected. All dues received.
Journalise the transactions and also show Balance Sheet.


☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺


Q. 6. Following is the receipts and payments account of Chamber of Commerce, Chandgad for the year ending 31.03.2013 and some additional information. You are required to prepare the Income and Expenditure Account for the year ending 31.03.2013 and Balance Sheet as on that date.


Receipts and Payment Account for the year ending 31.03.2013


Receipts
Amount
(Rs.)
Payments
Amount
(Rs.)
To Balance b/d
(Cash at Bank)
11960
By Printing & Stationery
6950
To Subscriptions (including Rs. 2,500 For 2011-2012)
36,500
By Repairs
2,100
To Sale of Furniture (Book value Rs. 18,000)
12,000
By Rent
8,500
To Donations
27000
By Books
20000
To Admission Fees
(Revenue)
5050
By Travelling Expenses
2000


By Investments
40000


By Insurance
1700


By Balance c/d
[Cash at Bank]
11200









92510

92510


Additional Information:


Particulars
01.04.2012
Amount
31.03.2013
Amount
Outstanding Subscriptions
Furniture
Building fund
Capital fund
Investments
3,000
32,000 1,45,000 1,51,960 2,50,000
5,000
?
?
?
?


(2) Neglect depreciation on the part of furniture sold during the year, but depreciate the remaining furniture by Rs. 1,000.
(2) Donation is received for building fund.




☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺


Q7. Dhiraj and Suraj are partners sharing profits and losses in the ratio of 2:1. From the following Trial Balance and adjustments, prepare Trading and Profit and Loss account for the year ended 31st March, 2013 and balance sheet as on that date:


Trial Balance as on 31.03.2013


Particulars
Amount
Rs.
Particulars
Amount
Rs.
Opening Stock Purchases
Plant and Machinery Furniture
Carriage
Wages
Bills Receivable Sundry Debtors Conveyance
Salaries
Cash in hand
Land and Building Bad debts
Patents
32,000 64,000 30,000 18,500
1,500 30,000 5,000 32,000 4,000 10,500 14,750 83,500 1,750 25,000
Sales
Sundry Creditors Return Outward Capital Accounts’
Dhiraj
Suraj
1,93,500 16,500 2,500

90,000 50,000

352500

352500


Adjustments :
(1) Closing stock: Cost price RS. 25,000 and market price Rs. 30,000.
(2) An amount of Rs.  3,500 spent for repairs to building is debited to building account.
(3) Depreciate plant and machinery and building at 5% p.a.
(4) Included in wages in advance given to workers Rs. 3,000.
(5) Provide Rs. 1,500 for bad and doubtful debts on debtors.



☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺☺