March 2009 Accounts Question paper

March 2009

Book-Keeping and Accountancy

Time : 3 Hours Marks : 100

Q.1 Attempt any FOUR of the following sub-question: [20]

(A) Answer in one sentence. (5)

1. What is Statement of Profit or Loss?

2. What is Reducing Balance Method?

3. What are the Methods of Valuation of Goodwill?

4. What do you mean by Debit balance of Joint Venture Account?

5. When do you mean by Discounting of Bill?

(B) Write the word/term/phrase which can substitute each of the following

statements: (5)

1. The balance which cannot be recovered from the debtors.

2. An accounting system where rules of debit and credit are not followed.

3. Money value of business reputation.

4. A person entered into a joint venture.

5. The Gift received from legal representative as per the will of a deceased person.

(C) Match the following pairs: (5)

Group 'A'	Group 'B'
1.      Opening stock 2.      Fixed installment method 3.      Software 4.      Joint bank account 5.      Subscription	1.        1.      Amount of depreciation remains constant 2.      Trading account 3.      Revenue income 4.      Capital income 5.      Balance sheet 6.      Converting symbolic language 7.      Separate set of books 8.      Utility programme

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

1.       

1.      Interest on the capital of Partner is debited to ________.

1.      Trading account (b) Profit and Loss account

(c) Partner's capital account (d) Partner's current account

1.       

1.      Computer is a / an _________.

1.      Mechanical device (b) Automation device

(c) Electronic device (d) Electric device

1.       

1.      Joint venture is a _________.

1.      Trading concern (b) Non-trading concern

(c) Religious concern (d) Public concern

1.       

1.      A donation received for a specific purpose is a _______.

(a) Capital Receipt (b) Revenue Receipt

(c) Liability (d) Asset

1.       

1.      A bill drawn and accepted on 12^th June, 2007 for two months will be due for payment on ________.

(a) 12^th August, 2007 (b) 15^th August, 2007

(c) 16^th August, 2007 (d) 14^th August, 2007

(E) State whether True / False (with reasons): (5)

1. Non-commercial concerns with 'no profit' base prepare income and expenditure

Account in place of profit and loss account.

2. Nothing charges are borne by Drawer.

(F) From the following details prepare a format of Bill of Exchange: (5)

1. Drawer : Mrs. Archana Patil, Vikram Nagar, Patan.

2. Drawee : Mrs. Nalini Maniyar, Jalaram Krupa, Mul.

3. Payee : Mrs. Sheela Ghatkar, Mangal Yog CIDCO,

Aurangabad.

4. Amount of bill : Rs.17,575.

5. Period of bill : 60 days

6. Date of bill : 28^th December, 2007

7. Accepted on : 2^nd January, 2008

8. Accepted for : 90 days

Q.2 M/s. J.K Company, Maroda, purchased machinery for Rs.80,000 on 1^st April, 2002.(10)

Company purchased additional machinery for Rs.36,000 on 1^st October, 2003.

The company charges depreciation @ 10% p.a. on the original cost.

The financial year of the company ends on 31^st March each year.

On 30^th September, 2004 a part of the machinery, original cost of which was Rs.30,000 on 1^st April, 2002 was sold by the company for 22,000.

Prepare Machinery Account for 3 years and give Journal Entries for the year 2002-2003.

OR

(A) The net profits of Suchak Trading Company after providing taxation for the past five years are as under: (5)

Year	Amount (Rs.)
2001-02 2002-03 2003-04 2004-05 2005-06	80,000 85,000 92,000 1,05,000 1,18,000	Profit Profit Profit Profit Profit

The capital employed in the business is Rs.8,00,000.

The normal rate of return expected in this type of industry is 10% p.a.

Calculate the value of goodwill at 'two' times of super profit.

(B) What are the Characteristics of Computer? (5)

Q.3 Sanjay drew on Pappu a bill for Rs.12,000 at 3 months. Pappu accepted it. (12)

On the same day Sanjay discounted the bill with his bank at 10%p.a.

On due date Pappu dishonoured the bill. Noting charges were Rs.200.

Pappu paid Rs.4,000 in cash and accepted a new bill for balance amount.

Sanjay endorsed the new bill to Vinayak.

Pass Journal entries in the books of sanjay and show sanjay's account in the ledger of Pappu.

OR

Journalise the following transactions in the books of Ranbir.

1.      Sonam informs Ranbir that Salman's acceptance for Rs.3,200 endorse to Sonam has been dishonoured and the noting charges amounted to Rs.80.

2.      Ravindra renews his acceptance to Ranbir for Rs.4,800 by paying Rs.1,800 in cash and

accepts a fresh bill for the balance, plus interest at 12%p.a. for 2 months.

1.      Dilip's acceptance to Ranbir for Rs.8,000 is retired one month before the due date at a

discount of 12%p.a.

1.      The bank informs Ranbir that Shirin's acceptance for Rs.5,500 to Ranbir discounted with

the bank earlier has been dishonoured and the noting charges amounted to Rs.75.

Q.4 Shivaji of Solapur and Sambhaji of Satara entered into a joint venture to purchase and sale goods and agreed to share profits and losses in the proportion of 3:2 respectively. (12)

Shivaji sent goods of Rs.75,000 to Sambhaji for sale.

Shivaji paid Rs.5,000 for freight and insurance.

He drew a bill for Rs.30,000 on Sambhaji.

Sambhaji paid Rs.3,000 for carriage.

Sambhaji sold Goods for Rs.1,25,000 and paid selling expenses Rs.2,500.

He remitted the balance to shivaji after charging 5%commission on sales.

Coventurers settled their accounts.

Give Journal Entries in the books of Shivaji.

Q.5 Following records of Mr. Raj were kept on single entry system. (10)

Particulars	31.3.2006 Rs.	31.3.2007 Rs.
Stock Furniture Plant and Machinery Loan taken Bank balance Debtors Creditors	15,000 53,500 42,500 21,000 1,900 43,000 18,000	14,000 44,000 55,500 21,000 2,100 35,000 14,900

Mr. Raj invested Rs.4,000 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:

1.      Statement of Affairs as on 31.3.2006.

2.      Statement of Affairs as on 31.3.2007.

3.      Statement of Profit and Loss for the year ended on 31.3.2007.

Q.6 The following is the Receipts and Payments Account of Modern Sports Club, Satara, for the

year ended on 31^st March, 2007. (16)

Dr. Receipts and Payments Accounts for the year ended 31 ^st March, 2007 Cr.

Receipts	Amount Rs.	Payments	Amount Rs.
To balance b/d To Subscription To Entrance fees To Interest on Investments To Proceeds from Matches To Life member fees	1,490 13,600 520 840 5,180 5,000	By Upkeep the Garden By Wages By Salary By Printing By Postage By Bank balance By Balance c/d	9,500 2,360 7,000 210 930 190 5,000 1,400
	26,630		26,630

Adjustment :

1.      Ledger balances of the Club as on 31.3.2006 were : Capital fund Rs.66,430, Club house and ground Rs.40,000, Investments Rs.18,640, Furniture Rs.6,400 and Outstanding subscription Rs.600.

2.      Printing includes Rs.200, Upkeep of garden includes Rs.500 and Subscription includes Rs.400 for the previous year.

3.      Entrance fees are to be capitalized.

4.      The Rotary Club of Satara owed Rs.210 for the use of club hall.

5.      Provide 10% depreciation on furniture.

6.      Subscriptions outstanding for the current year were Rs.1,000.

Prepare: Income and Expenditure Account for the year ended 31^st March, 2007 and Balance Sheet

as on that date.

Q.7 From the following Trial Balance and Adjustments of Kumbhar and Maroti you are required to

prepare Trading and Profit and Loss Account for the year ended on 31^st March, 2005 and Balance

Sheet as on that date. (20)

Debit Balance	Rs.	Credit Balance	Rs.
Stock (1.4.2004) Salary and Wages Cash Purchases Sundry expenses Wages Bills Receivable Travelling Expenses Bad Debts Factory Expenses Commission Investments Debtors Tools and Equipments Furniture Goodwill Building	35000 4200 10000 225200 13600 12000 6000 2000 3000 8000 4000 20000 40000 6000 12000 21000 50000	Sales Discount Creditors Bank Overdraft Interest on Investment Capitals: Kumbhar Maroti	330000 4000 20000 10000 8000 60000 40000
	472000		472000

Adjustments:

1.      Partners share Profits and Losses in the ratio of their Capitals.

2.      Closing stock is valued at Cost Price Rs.40,000 and at Market Price Rs.45,000.

3.      Kumbhar has withdrawn goods worth Rs.1,200 for his own use, but no entry is made in the books.

4.      Uninsured goods worth Rs.12,000 were lost by fire.

5.      Rs.450 are to be written off as bad debts.

6.      Unpaid Expense :

Salary and Wages Rs.800

Rent Rs.1,200.

7. Depreciate building @ 7 ½ % p.a.