Book Keeping & Accountancy March 2016 Board Paper
Book Keeping & Accountancy
March 2016 Board Paper
Q. 1. A. Answer the following questions in one sentence each. [5]
(1) What is bad debts?
Ans. An amount irrecoverable from debtors is known as bad debts.
(2) What is surplus?
Ans. Excess of income over expenditure in case of not for profit concern is known as surplus.
(3) What are Noting Charges?
Ans. Fee charged by Notary public for noting the dishonoured inland bill are known as noting charges.
(4) What is Gain Ratio?
Ans. The proportion in which continuing partners are benefitted, due to retirement or death of a partner is termed as gain ratio.
(5) What do you mean by Analysis of Financial Statement?
Ans. Critical evaluation of financial statement to measure the profitability, solvency and growth of the organisation is known as Analysis of Financial Statement.
(B) Write a word / term / phrase which can substitute each of the following statements: (5)
(1) Expenses which are paid before due.
Ans. Prepaid expenses
(2) Excess of expenditure over income of 'not for profit' concerns.
Ans. Deficit
(3) Payment of the bill before due date.
Ans. Retirement of bill
(4) An account opened to find out the profit or loss on sale of assets and settlement of liabilities.
Ans. Realisation account.
(5) A statement similar to balance sheet.
Ans. Statement of Affairs.
(C) Select the most appropriate alternative from those given below and rewrite the statements. (5)
(1) If shares are issued at its face value, it is called as issue at _____________.
(a) premium.
(b) discount.
(c) par.
(d) none of these.
(2) A person who accepts the bill is called __________
(a) drawer.
(b) acceptor.
(c) payee.
(d) creditor.
(3) The capital in the beginning of the accounting year is ascertained by preparing ______________
(a) closing statement of affairs.
(b) cash account.
(c) statement of profit or loss.
(d) opening statement of affairs.
(4) If any asset is taken over by partner from firm his capital A/c will be ____________
(a) credited
(b) debited
(c) added
(d) none of these
(5) The proportion in which old partners make a sacrifice is called ___________ ratio.
(a) capital
(b) gaining
(c) sacrifice
(d) new
(D) State whether the following statements are True or False. (5)
(1) The interest on capital is an income of the firm. (False)
(2) The inland bill which is drawn in and payable in the same country. (True)
(3) The debenture holder is owner of the company. (False)
(4) Purchase of fixed asset is operating cash flow. (False)
(5) Noting charges are payable to the Notary public, in case of honour of a bill. (False)
(E) Prepare a specimen of Bill of Exchange from the following information: (5)
(1) Drawee : M.P. Shinde, Siddharth Nagar, Panchgani.
(2) Drawer: M.M. Shaikh, Satara Road, Sangli.
(3) Period of bill : 90 days.
(4) Amount of bill : Rs. 12,800/-
(5) Date of bill : 10th March, 2013.
(6) Date of Acceptance: 14th March, 2013.
Answer:
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Q. 2. Mrs. Meena of Bilaspur has not kept proper books of accounts, following information is provided to you. (8)
Particulars | 31.3.2012 | 31.3.2013 |
Amount (Rs. ) | Amount (Rs.) | |
Machinery | 50000 | 50000 |
Furniture | 50000 | 30000 |
Debtors | 18000 | 25000 |
Creditors | 18000 | 20000 |
Stock | 30000 | 42000 |
Outstanding Expenses | 1500 | - |
Prepaid Expenses | - | 500 |
Cash at bank | 28000 | 40000 |
Further information:
(1) Mrs. Meena introduced additional capital as on 1st October, 2012 by selling her personal car is Rs. 10,000.
(2) She paid her daughter's college fees from business bank account Rs. 3,000.
(3) Depreciate machinery by 5% p.a.
(4) Provide 2% on debtors for Bad and Doubtful debts.
(5) Interest on capital is to be provided @ 5% p.a. and on drawings @ 5% p.a.
Prepare: Opening and closing statement of affairs and statement of profit or loss for the year ended 31st March, 2013.
Solution: [Click Here for Answer]
OR
(A) What are the components of 'Current Ratio'?
(B) What are the different cash inflows and cash outflows of investing activities?
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Q. 3. Rani and Geeta are partners sharing profits and losses 3:2 respectively. Their position on 31st March, 2013 was as follows: [10]
Balance sheet as on 31st March, 2013.
Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | Amount (Rs.) |
Capital Accounts | Building | 100000 | ||
Rani | 100000 | Furniture | 10000 | |
Geeta | 75000 | Stock | 31000 | |
Creditors | 10000 | Debtors | 50000 | |
Bills Payable | 5000 | Less: R.D.D. | -1000 | 49000 |
General Reserve | 15000 | Bank Balance | 15000 | |
205000 | 205000 |
On 1st April, 2013 hey admitted suvarna on the following terms:
(1) Suvarna should bring in cash Rs. 1,00,000 as capital for 1/5 th share in future profit and Rs. 25,000 as goodwill.
(2) Building should be revalued at Rs. 1,25,000.
(3) Depreciate furniture @ 12.5 % and stock @ 10% p.a.
(4) R.D.D. should be maintained as it is.
(5) The Capital Accounts of partners should be adjusted in their new profit sharing ratio through bank account.
Prepare: Profit and loss adjustment account, capital account and balance sheet of the new firm.
Solution: [Click Here for Answer]
OR
Q3. The balance sheet of 'Anand Traders, Wardha' is as follows.
Partners share profits and losses as 5/10 , 2/10, 3/10.
Balance Sheet as on 31st March, 2013.
Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | |
Capital Accounts | Plant and machinery | 32,000 | ||
Sunil | 36,000 | Factory Building | 40,000 | |
Pankaj | 32,000 | Stock | 20,400 | |
Paresh | 17,600 | Debtors | 16,800 | |
Creditors | 21,200 | Less: R.D.D. |
| 16,00 |
General Reserve | 14,000 | Cash | 12,400 | |
1,20,800 | 1,20,800 |
Pankaj retired from the business on 1st April, 2013 on the following terms:
(1) The assets were revalued as under .....
(i) Stock at Rs. 28,000.
(ii) Factory building is appreciated by 10%.
(iii) Reserve for doubtful debts is to be increased up to Rs. 1,000.
(iv) Plant and machinery is to be depreciated by 10%
(2) The goodwill of the retiring partner is to be valued at Rs. 8,000 and the remaining partners decided that goodwill be written back in their new profit sharing ratio which will be 5:3.
(3) Amount due to Pankaj is to be transferred to his loan account.
Prepare : (a) Profit and Loss adjustment account
(b) Capital account of partners.
(c) Balance sheet of new firm.
Answer: [Click Here for Answers]
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Q4. Raja of Nagpur draws a bill on Pradhan of Bhandara for Rs. 6,000 at 3 months. Pradhan accepted and returned it to Raja. Raja then sent the bill to bank for collection.
On due date, Pradhan finds himself unable to make payment of the bill and requests Raja to renew it. Raja accepted a proposal on the condition that, Pradhan should pay Rs. 1,000 on account along with interest Rs. 250 in cash and should accept new bill for the balance at 2 months. These arrangements were carried through. Afterwards, one month before due date of new bill Pradhan retired his acceptance by paying Rs. 4,850.
Give Journal entries in the books of Raja of Nagpur. [10]
Answer: [Click Here for Answers]
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Q5. A, B, and C were partners sharing profits and losses in the proportion of 2:2:1. Following is their balance sheet as on 31st March, 2013. [10]
Balance sheet as on 31st March, 2013
Liabilities | Amount (Rs. ) | Assets | Amount (Rs.) | Amount (Rs.) |
Capital Account | Machinery | 25000 | ||
A | 30000 | Stock | 10000 | |
B | 10000 | Debtors | 27500 | |
C | 10000 | Less: R.D.D. |
| 26000 |
General Reserve | 3000 | Investment | 12000 | |
Creditors | 20000 | Profit and Loss A/c | 9000 | |
A’s Loan Account | 4000 | Bank | 2000 | |
Bills Payable | 7000 | |||
84000 | 84000 |
On the above date, the partners decided to dissolve the firm.
(1) Assets were realised as -
Machinery Rs. 22,500, Stock Rs. 9,000, Investment Rs. 10,500, Debtors Rs. 22,500
(2) Dissolution expenses were Rs. 1,500.
(3) Goodwill of the firm realised Rs. 12,000
Pass the necessary journal entries int he books of the firm.
Answers: [Click Here for Answers]
OR
Q5. Kisan Co. Ltd. Miraj, issued Rs. 50,000 shares at par Rs. 10 each, payable Rs. 3 on application, Rs. 4 on allotment and the balance on the final call. All the shares were fully subscribed and paid except a shareholder Mr. D. Kapse having Rs. 1,000 shares could not pay the final call. Mr. D. K. Kapse paid the call - in - arrears amount together with interest after four months of due date of final call. Company charged interest on the arrears received as per table ‘A’.
Pass journal entries to record these transactions assuming that call - in - arrears and interest money received from Mr. D. Kapse in the books of Kisan Co Ltd. Miraj.
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Q. 6. Marathi Vishwa Kosha Centre, Wai, has given you the following information from which, you are required to prepare. (i) Income and Expenditure Account for the year ending on 31.03.2013, (ii) Balance Sheet as on 31.03.2013.
Receipts and Payment Account for the year ending 31.03.2013
Receipts | Amount (Rs.) | Payments | Amount (Rs.) |
To Balance b/d | By Stationery | 5000 | |
Cash in hand | 13000 | By Furniture [Purchased on 01.01.2013] | 50000 |
To Locker Rent | 5000 | By Investments | 1,00,000 |
To Entrance Fees | 19000 | By Expenses of Drama | 33500 |
To Sale of old newspapers | 1500 | By Postage and telegram | 2,500 |
To Receipts from Drama | 78,500 | By Magazines and Newspapers | 4000 |
To Legacies | 1,10,000 | By Salaries | 22,000 |
To Miscellaneous Receipts | 8000 | By Balance c/d | |
Cash in Hand | 3000 | ||
Cash at bank | 1,10,000 | ||
330000 | 330000 |
Additional Information:
(1) Capital fund on 01.04.2012, was Rs. 1,08,000.
(2) Legacies are to be capitalized.
(3) Outstanding salary Rs. 3,000.
(4) 50% of entrance fees is to be capitalized.
(5) Depreciation on Furniture @ 10% p.a.
Solution: [Click Here For Anwers]
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Q7. From the following Trial Balance and adjustments of M/s Apeksha and Pratiksha; you are required to 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 | Debit Amount (Rs.) | Credit Amount (Rs.) |
Capital Accounts | ||
Apeksha | 60000 | |
Pratiksha | 35000 | |
Purchases and Sales | 46700 | 85000 |
Sundry Debtors and Creditors | 28000 | 25000 |
Bills Receivable and Bills Payable. | 9600 | 7800 |
Opening Stock | 18000 | |
Wages | 9900 | |
Investment | 13500 | |
Postage and Telegrams | 3600 | |
Insurance | 1200 | |
Plant and machinery | 40700 | |
Furniture | 18000 | |
Cash in hand | 2500 | |
Carriage | 3200 | |
Bad debts | 400 | |
Prepaid rent | 7000 | |
Salaries | 10500 | |
212800 | 212800 |
Adjustments:
(1) The closing stock is valued at Rs. 31,000
(2) Outstanding wages Rs. 1,400.
(3) Depreciate furniture at 10% p.a.
(4) Insurance Rs. 500 is paid in advance.
(5) Provide for further bad debts of Rs. 1,500.
(6) Goods worth Rs. 2,000 withdrawn by Apeksha for her domestic use but not recorded in the books of account.
Answer: [Click Here for Answers]
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