HIGH SECONDARYQUESTIONS PAPER 2012-20

 

2012

SUB-ACCOUNTACY

FULL MARKS: 100

                                                                            PASS: 30                                                               TIME:3 HOURS     

Q.1. (A) Fill in the blanks with appropriate word:-            1x4=4

          i.            Income and expenditure accounts records transaction of Revenue nature.

        ii.            On admission, unrecorded assets brought into accounts are credited to Revaluation accounts.

      iii.            A company can issue shares at a discount only if at least One year has elapsed since the company became entitled to commence the business.

      iv.            If a partner takes over an asset, such partner’s capital accounts is Debited.

   (B) Chose the correct alternatives:-      1x2= 2                                        

        i.            Subscription received in advance is treated as:

(a)   An income  (b) An asset  (c) A liability  (d) Capital

      ii.            Profit on revaluation of assets and liabilities is shared by the old partners in:

(a)   Sacrificing ratio (b) New ratio  (c) Old ratio  (d) Gaining ratio 

   (C) State whether the following statements are true or false:   1x2= 2

        i.            Dissolution of firm and dissolution of partnership are two legal concepts. True

      ii.            Discount on reissue of forfeited shares cannot exceed the amount received on forfeited shares. True

 

Q.2. Give the adjustment entry required for recording interest on capital when capital account is maintained under fixed capital method.   (2)

Q.3. What is meant by “Gaining ratio” on retirement of a partners?       (2)

Q.4. What is meant by “Loss on issue of debenture”?       (2)

Q.5. What are the types of Financial statements analysis?          (2)

Q.6. What do you mean by ratio analysis?           (2)

Q.7. Mention three features of Receipts and payment accounts?     (3)

Q.8. Mention three situations when valuation of goodwill becomes necessary?     (3)

Q.9. Write three points of distinction between shares and debentures?    (3)

Q.10. Give three characteristics of an ideal financial statement?     (3)

Q.11. Give three objectives of ratio analysis?       (3)

Q.12. From the following information, ascertain the amount of subscription to be credited to the income and expenditure account for the year 2012.         (5)

        i.            Subscription received during the year Rs.11750 (including Rs. 1000 for 2011 and Rs 500 for 2013)

      ii.            Subscription received in 2011 for 2012 Rs. 700.

    iii.            Subscription outstanding on 31^st December 2012 Rs. 900.

OR

Q. Give points of Distinctions existing between Receipts and payment accounts and income and Expenditure account.     (5)

Q.13. A and B are partners sharing profits in the ratio of 5:4. They admit C in the firm for 1/4^th share of profit. C takes 3/16^th from B. C brings in Rs. 25000 as capital and Rs. 8000 as premium for goodwill. The partner’s withdraw 40% of their respective share of premium. Pass necessary journal entries on C’s admission.       (5)

OR

Q. What is super profit? What are the steps to be followed for valuation of goodwill under super profit method?

Q.14. Can a company issue shares at a premium? If so, state the purpose for which the share premium account can be utilised?    (5)

OR

Q. Distinguish between equity share and preference shares giving five points of difference?

Q.15. Show by means of journal entries how you will record the following issue:     (5)

(a) A. Ltd. Issues 6000, 10% debenture of Rs. 100 each at a discount of 5%, redeemable at the end of 5 year at par.

(b) B. Ltd. Issue 7000, 11% debenture of Rs 100 each at par, redeemable at the end of 5 year at a premium of 5%.

(c) X. Ltd. Issue 8000, 12% debenture of Rs 100 each at a discount of 5%, redeemable at the end of 5 year at premium of 5%.

OR

Q. What is meant by redemption of debenture? State any three method of redemption of debenture.(2+3=5)

Q.16. Name the major heading under which the liabilities side of a company’s balance sheet is organised and presented?    (5)

OR

Q Discuss any five limitation of financial statements?

Q.17. Prepare a comparative income statements of Sunny Ltd. with the help of the following information. (5)

Particulars	2011	2012
Sales Cost of Goods sold Administrative expenses Income tax	6,00,000 40% of sales 20% of gross profit 50%	8,00,000 50% of sales 15% of Gross profit 50%

 

OR

What do you understand by financial statement analysis? Discuss its importance to management. (Any four points).   (1+4=5)

Q.18. Ascertain Cash flows from operating activities under the direct methods from the following data related to the accounting year 2010-11     (5)

           Total sales: 44,000 (cash Rs 4,000, credit Rs 40000)

           Cash received from customers: 35,000

           Closing Account receivable: 8000

           Cash paid to suppliers: 42,000

           Cash paid to employees: 7000

           Furniture purchased from (m/s. decorators on credit): 9,000

           Income tax paid: 3000

           Donation paid: 1000

           Office expenses, total Rs 6000, paid: 3000

OR

Q. What is cash flow statement? Briefly explain any four objectives of preparing a cash flow statement.(1+4=5)

Q.19. Choudhary and Barua are partners in a firm sharing profit and losses in the ratio 50:50 respectively. The trial balance of the firm as on 31^st march, 2011 was as follows:         (8)

Trial Balance

Particulars	Amount	Particulars	Amount
Machinery Furniture Building Debtors General expenses Insurance Salaries Bad debts Cash in hand Stationery 10% investment Drawing: Choudhury                   9,000 Barua                          12,000 Closing stock	51,000 4,500 45,000 31,500 460 800 8,400 450 510 900 15,000     21,000 21,000	Capital: Chouhdury                    40,000 Barua                             40,000 Creditors Bank overdraft Provision for doubtful debt Wages outstanding Trading account (Gross profit)	80,000 32,500 12,000 1,800 150 74070
	2,00,520		2,00,520

Prepare profit and loss account, profit and loss Appropriation account for the year ended 31^st march, 2011 and a balance sheet as at that date after taking into consideration the following.

a.      Outstanding Expenses- Salaries Rs 300, interest on bank overdraft Rs 225.

b.      Machine worth Rs 15,000 purchased on 1^st October, 2010.

c.       Provide depreciation on machinery and furniture @10% p.a. and on building @ 2 ½ % p.a.

d.      Interest on capital to be allowed @ 10% p.a.

e.      Prepaid insurance Rs 150

f.         Partners are entitled to salary of Rs 1,000 per annum each.

 

Q.20. Ashok publications Ltd. issue 3000 shares of Rs 10 each, payable as follow:               (8)

           On Application Rs 2

           On Allotment Rs 3

           On first call Rs 2 and the balance when required

3200 shares were applied for, application for 3000 was accepted by the directors and the balance application was rejected and money returned. Allotment money was duly received and first call was received on 2959 shares. Pass journal entries in the books of the company for the above transaction.

OR

Q. What do you mean by ‘forfeiture of share’? Discuss the procedure of forfeiture of share and re-issue of such share.

 

Q.21. Kumar and Gaurav are partners sharing profit and losses as three-fourth and one-fourth. They agreed to dissolve their firm. On the date of dissolution, they have following Balance sheet:     (8)

 

Liabilities	Amount	Assets	Amount
Capital Account: Kumar        40,000 Gaurav       35,000 Creditors Loan from Mrs. Gaurav	75,000 16,000 13,000	Land and building Plant and Machinery Sundry Debtors    22,000 Less: reserve           2,000 Bill receivable Cash in hand	50,000 18,000   20,000 7,500 8,500
	1,04,000		1,04,000

The Assets Realised as follows:

        i.            Land and Building Rs 48,000

      ii.            Sundry Debtors Rs 18,000

    iii.            Goodwill Rs. 16,500

Kumar took over plant and machinery at 5% more than the book value. Gaurav agreed to discharged his wife’s loan. Creditors are paid Rs. 12,000 in full settlement of their claim and expenses on realisation amounted to Rs. 700. You are required to show Realisation Account, Cash account and Capital of the partners on dissolution.

OR

Q. What do you mean by Dissolution of a firm? Mention Difference between dissolution of a firm and partnership.

Q.22. X, y and Z were partners in firm sharing profit in 5:3:2 ratio. On 31^st march, 2011 Z retired from the firm. On the date of Z’s retirement, the Balance sheet of the firm was as follows:        (8)

Balance sheet of X, Y, Z as at 31^st march 2011

Liabilities	Amount	Assets	Amount
Creditors Bill payable Outstanding rent Provision for legal claims Capital: X- 1,27,000 Y- 90,000 Z-71,000	27,000 13,000 22,500 57,500       2,88,000	Bank Debtor                          20,000 Less: Reserve                    500 Stock Furniture Land and Building	80,000   19500 21000 87,500 2,00,000
	4,08,000		4,08,000

On Z’s retirement it was agreed that;

(a)   Land and building will be appreciated by 5% and furniture will be depreciated by 20%.

(b)   Provision for doubtful debts will be made at 5% on debtor and provision for legal claim will be made at Rs. 60,000.

(c)    Good will of the firm was valued at Rs 60,000

(d)   Rs. 70,000 from Z’s Capital Account will be transferred to his loan account and the balance will be paid to him by cheque.

Prepare Revolution Account, partners capital accounts and balance sheet of X and Y after Z’s retirement.

OR

Explain the term “Reconstitution of a firm”. Mention the situations when such reconstitution of a firm takes place.    (3+5=8)

 2013

SUBJECT-ACCOUNTACY

FULL MARKS: 100

 PASS: 30               

TIME: THREE HOURS                      

1.       (a) Fill in the blanks with appropriate word: 1x4 = 4

                                i.            A Receipts and Payments account is prepared on Cash basis of accounting.

                              ii.            When Partner’s Capital Account is fixed, then Partner’s Current Account is prepared.

                            iii.             Goodwill is the extra earning capacity of a business.

                             iv.            Unrecorded assets when realized are credited to Realization Account.

          (b) Choose the correct alternative:      1x2=2

                                i.            An Income and Expenditure Account reveals:

(a)    Cash Position (b) Surplus or Deficit (c) Capital Fund (d) None of the above.

                              ii.            The portion of capital which can be called up only on the winding up of the company is called:

a)      Authorized Capital (b)Issued capital (c) Uncalled capital (d) Reserve capital.

                            iii.             

         (c) State whether the following statements are true or false: 1x2=2

                                i.            Discount on reissue of forfeited shares cannot exceed the amount received on forfeited shares.    True

                              ii.            Interest on Debenture is payable only when a company earns profits.   False

Q.2. What is sacrificing ratio?      2

Q.3. Give two grounds on which a court may dissolve a firm.    2

Q.4. Name any two items that can be shown under sub head “Reserves and Surplus”.      2

Q5. Give two objectives of cash flow statement.        2

Q.6. What is joint life policy? 2

Q.7. What are the sources of Cash Flow?      3

Q.8. Explain average profit method of valuation of goodwill.           3

OR

Q.What are the circumstances when a revaluation of assets and liabilities becomes    necessary?           3

Q.9. Mention the uses of Securities Premium.          3

OR

Q.Mention three advantages of issuing debentures. 3

Q.10. What are contingent liabilities? Mention any two items.        3

OR

Q.What is the importance of Financial Analysis?       3

Q.11. From the following information, calculate Current Ratio:                   3

Particulars	Amount
Inventory Debtors Cash Creditors Bills receivable Advance Tax Bills Payable Bank overdraft Debentures Accrued Interest	55,000 40,000 37,000 48,000 20,000 4,000 28,000 4,000 2,00,000 4,000

 

Q.12. The Star Cricketer club had a cash balance of Rs.500 and a Bank balance of Rs.1,000 on 1.4.2011. From the following details, prepare a Receipts and Payments account for the year ended 31.03.2012:        5

Particulars

Amount

Subscription received for the year Subscription outstanding on 31.03.12 Subscription for 2010-11 received during the current year Life member fees received Donation for club house received Rent paid for the year Advance rent paid Sale of Furniture (book value Rs.600) Honorarium to coach Sports expenses Construction of club house Salary Printing and Stationery Postage and Telegram Maintenance Grant Depreciation during the year Salary Outstanding on 31.03.2013 Outstanding Salary on 01.04.2011 paid during the year Cash in hand on 31.03.2012 Stationery in hand on 31.03.2012

16000 2000 1000 5000 10000 6000 600 500 5000 8000 9000 4500 400 600 1000 1000 500 500 1400 100

 

Q.13. Pari and Pooja are partners sharing profits as 3:2. Their capitals are 80,000 and 60,000 respectively as on 01.04.2011. Net profit of the business for the year 2011-12 was Rs. 40,000 before considering the following:-    5

(i) Interest on Capital @ 5% p.a.

(ii) Salary to Pooja Rs.6000 p.a.

(iii) Commission to Pooja @ 10% of Net Profit after deducting Interest on capital and Salary but before charging such commission. Prepare a profit and Loss Appropriation Account for the year ended on 31.03.2012.

Q.14. Rohan and Sohan are partners sharing profits and losses in the ratio of 3:2. Mohan joins the firm as a new partner for 1/4^th share of future profit. Mohan brings Rs.20000 as capital and required amount of premium. The goodwill of the firm was valued at Rs. 30000. Give journal entries assuming that partner’s capitals are fixed.    5

OR

Q.A and B are partners sharing profits and losses A – 75% and B – 25% respectively. Their Balance sheet as on 31.03.2012 is given below:     5

Liabilities	Amount	Assets		Amount
Sundry Creditors Profit and Loss Account Capital Accounts: A - 30000 B – 20000	40000 10000     50000	Cash Sundry Debtors Less: Provisions for Bad debts Stock Furniture Plant and Machinery	16000 1000	20000   15000 35000 5000 25000
	100000			100000

X was admitted as a new partner on the following terms:

(i) That Plant and machinery is to be reduced by 25%.

 (iii) Bad debts amounted to Rs.1750 and are to be written off.

(iv) There was an unrecorded typewriter valued at Rs.5000.

(ii) Furniture is to be depreciated by 10%.

(v) Outstanding legal charges estimated at Rs.1250.

Prepare a Revaluation Account.

Q.15. What is a Sinking fund? How is it created?      5

Q.16. A Company has issued Rs.100000, 10%Debenture at 5% discount repayable at 5% premium after 4 years. Give journal entries for issue and show the loss on issue of debentures account over 4 years.       5

Q.17. What are the uses and importance of financial statements?         5

OR

Q.What are the limitations of Financial Statement Analysis?       5

Q.18. How would you compute the amount due to a Retiring Partner?       5

Q.19. X, Y and Z are in a partnership sharing profits in the proportion of 5:3:2. On 31.03.2011 their Balance sheet was as under:              8

Liabilities	Amount	Assets	Amount
Creditors Reserve Capital Account: X – 35000 Y – 20000 Z – 15000	7000 10000       70000	Building Machinery Stock and Debtors Patents Cash	20000 30000 18000 6000 13000
	87000		87000

X died on 01.10.2011. It was agreed between his executors and the remaining partners that:

        i.            Goodwill is valued at 2 years purchase of the average profit of the previous 5 years which were:

2006-07=15000, 2007-08=13000, 2008-09=12000, 2009-10=15000, 2010-11=20000.

      ii.            Patents are valued at Rs.8000, Machinery at Rs.28000, and Building at Rs.30000.

    iii.            Profit for the year 2011-12 is taken as having accrued at the same rate as the previous year.

     iv.            Interest on Capital is provided at 10% p.a.

       v.            A sum of Rs.11500 was to be paid to his executors immediately.

Prepare X’s Capital Account and his Executor’s Account at the time of his death.

Q.20. Karan Ltd. decided to issue 10,000 shares of Rs.100 each at a discount of 10%, payable as follows:

On Application-Rs.30

On Allotment-Rs.40 [After deducting discount]

Balance on 1^st and final call.

The company received 9000 applications. All the shares were duly accepted and allotted. All the calls were duly made and all call money received accordingly. Give Journal Entries and prepare a Balance Sheet.

OR

Q.Ram, Shyam and Mohan were in partnership sharing profits and losses in the ratio of 3:2:1. On 01.01.2010 Shyam retires from the firm. On that date the Balance Sheet of the firm was as follows:              8

Liability	Amount	Assets	Amount
Sundry Creditors Reserve Bills Payable Capitals: Ram     - 20000 Shyam  - 15000 Mohan-12000	30,000 6000 2600       47,000	Cash in Hand Investments Debtors                         15000 Less: Provision               1500 Stock Furniture Premises	600 25000   13500 18500 8000 20000
	85600		85600

The terms of retirement were:

(i) Goodwill is to be valued at Rs.12000.

(ii) Furniture to be depreciated by Rs.1000.

(iv) Provision for bad debts to be increased by Rs.400.

(v) Premises to be appreciated by Rs.5000.

(v) Investments were sold at book value and the amount due to Shyam was paid off.

Pass Journal Entries to record the necessary adjustments for retirement of Shyam.

Q.21. Sahiba and Dhruba are partners in a firm. The trial Balance of the firm as on 31.03.2011 was as follows: 8

Trial Balance

Debit	Amount	Credit	Amount
Machinery Goodwill Patents Sundry Debtors Cash in Hand Closing Stock on 31.3.2011 Investments Depreciation on Machinery Establishments Carriage outward Taxes Telephone charges Conveyance Drawings: Sahiba   - 5000 Dhruba - 4000 Salaries Bank Charges	54000 10000 20000 21000 1000 25000 10000 6000 10000 1000 500 3600 800     9000 8000 100	Capital: Sahiba    -50000 Dhruba  -40000 Sundry Creditors Interest on Investment Sundry Receipts Bank overdraft Outstanding Wages Trading Account (Gross Profit) Discount Bills Payable	90000 5000 400 200 10000 500 71000 900 2000
	180000		180000

Prepare a Profit and Loss Account and a Profit and Loss Appropriation Account for the year ended 31.03.2011 and also a Balance Sheet as on that date after taking into consideration the following adjustments:

(i) Write off Rs.1000 as bad debts and provide a 5% provision on sundry debtors for doubtful debts.

(ii) Interest on investments accrued Rs.600.

(iii) Interest on Partner’s Capital is allowed @ 5% p.a.

(iv) Create a General Reserve by taking Rs.5000 out of profits.

Q.22. Fair Deal Ltd. invited applications for the issue of 2000, 10%Debentures of Rs.100 each at a discount of 10% payable Rs.30 on application on 1^st May, 2010, Rs.30 on allotment (after deducting discount) on 1^st June, 2010 and balance on first and final call on 1^st July, 2010. All the debentures were fully subscribed. Debentures money was duly called and paid up.  Give the Journal Entries and show how the debentures and Debenture Discount will be shown in the Balance sheet of the company.              8

OR

Q.Janta Iron Ltd. has forfeited the following shares of Rs.10 each fully called up for non-payment of allotment and call moneys.                8

a)      200 shares held by A who has paid Application money of Rs.2 each only.

b)      300 shares held by B who has paid application and allotment money of Rs.2 and Rs.3 each respectively.

c)      400 shares held by C who has paid application, allotment and first call money of Rs.2, Rs.3 and Rs.2 each respectively.

All the above forfeited shares have been re-issued at a discount of 10%. Expenses on re-issue amounted to Rs.500. Give the journal entries in the books of Janta Iron Ltd.

 

2014

SUBJECT-ACCOUNTACY

FULL MARKS: 100

 PASS: 30               

TIME: THREE HOURS                      

Q.1. (a) Fill in the blanks with appropriate word:-

        i.            Life membership fee is a Capital receipt.

      ii.            Interest on Partner’s loan is to be credited to his Loan Account.

    iii.            If there is any profit on revaluation of assets and liabilities, the same will be shared by Old partners in their Old ratio.

     iv.            The amount due to the retiring partner is transferred to his Loan account in case it is not paid immediately.

  (B) Choose the correct alternative:

        i.            If the business is sold as a going concern, cash balance is also transferred to Realization Account.

(a) Revaluation (b) Realization

      ii.            Rate of Interest on calls in arrears charged according to Table ‘A’ is 10%

(a)   5% (b) 6% (c) 7% (d) 8%

                     (Ans Changed As per Companies act, 2013)

  (C) State whether the following statements are true or false:

        i.            Debenture holders are the owners of the company.  False

      ii.            Company’s shares are generally transferable.    True

Q.2. What is a capital fund?     2

Q.3. Mention any two rights of a partner?     2

Q.4. What is hidden goodwill?            2

Q.5. What is Reserve capital?            2

Q.6. Give any two distinctions between shares and debentures?      2

Q.7. Mention any six statutory books to be maintained by a company?      3

Q.8. Explain the accounting treatment of loss on issue of debentures in the books of a company?            3

Q.9. Give the major heads on the “Equity and Liabilities” side of a company’s Balance Sheet.      3

OR

Q.What is trend analysis? Mention its usefulness.     3

Q.10. How would you calculate the amount payable to the executor of a deceased partner?        3

11. Mention three situations under which a firm may be dissolved without intervention by court.                        3

OR

Q. X Ltd. company forfeited 800 shares of Rs.10 each issued at par for non-payment of 1^st call Rs.2 and final call Rs.3 each. Out of these, 500 shares are re-issued at 10% discount. Give journal entries in the books of the company.             3

Q. 12. Calculate Acid-Test Ratio from the following             5

Current Assets Rs. 50,000.

Current assets include the following:-

Stock Rs.14,000.

Pre-paid Expenses Rs. 1000.

Current liabilities Rs.20000. Current liabilities include Bank overdraft Rs.5000.

Q.13. From the following information, calculate cash flow from operating activities using Direct Method: 5

Particulars (Debit)	Amount	Particulars (Credit)	Amount
To Cost of goods sold To Gross Profit c/d   To Salary To Insurance To Depreciation To Income Tax To Net Profit	1,30,000 70000	By Sales     By Gross Profit b/d	2,00,000
	2,00,000		2,00,000
	20,000 2,000 5,000 8,000 35,000		70,000
	70,000		70,000

Additional Information:-

        i.            Debtors – Opening Balance Rs.15000, Closing Balance Rs.20000.

      ii.            Creditors – Opening Balance Rs.10000, Closing Balance Rs.12000.

    iii.            Stock – Opening Balance Rs.7000, Closing Balance Rs.10000.

     iv.            At the end of the year, outstanding salary Rs.2000 pre-paid insurance Rs.400 and Income tax outstanding Rs.1000.

Q.14. From the following items of Receipt and Payment Account of South India Club, prepare moan Income and Expenditure Account for the year ended 31.03.2013:                    5

Salaries Paid Lighting Expenses Stationery (Including Rs.400 for the previous year) Subscription received (Including Rs.1000 received in advance and Rs. 750 for previous year) Net proceeds of refreshment room Miscellaneous Expenses Interest paid on loan for 3 months Rent and Rates (Including Rs.500 prepaid) Locker’s Rent received

55000 5500 4000 44000 30000 3000 1200 4500 4900

Additional Information:- On 31.3.2013, subscription in arrear was Rs. 4700 and interest on loan was outstanding for 9 months.

Q.15. What is Partnership Deed? Mention its four principal clauses.                       5

Q. 16. Neer and Sameer are partners in a firm sharing profits in the ratio of 5:3. On 1^st January 2012, their capitals were Rs.35,000 and Rs.25,000 respectively. On that date, they admitted Barun as a new partner for 1/5^th share in the profit. Barun brought in Rs. 20,000 as capital and Rs.8,000 for his premium for goodwill. Pass necessary Journal Entries in the books of the firm on Barun’s admission. The new profit sharing ratio will be 3:1:1.                           5

Q. 17. S, T and U were partners in a firm sharing profits in the ratio of 1:2:2. On 15.2.2013, S died and new profit sharing ratio of T and U was agreed to be 3:2. On S’s death, the goodwill of the firm was valued at Rs.60, 000. Calculate the gaining ratio and pass the necessary Journal Entries on S’s death for treatment of goodwill without opening goodwill account.    5

OR

Q. State the legal requirements for issuing shares at a discount.     5

Q.18. Guwahati Engineering Limited issued 10000 6% Debentures of Rs.10 each at a discount of 5% but repayable after 5 years at a premium of 10%. Show the entries in the books of the company and also the accounting treatment of loss on issue of debentures for 5 years.                       5

Q.19. Amal and Bimal are two partners in a firm. They share profits in the ratio of 3:2. Following is their Balance Sheet as on 31.12.2012 on which date they dissolved their partnership firm:                                  8

Balance Sheet

Liabilities	Amount	Assets	Amount
Capital: Amal  - 20000 Bimal – 15000 Reserve Fund Creditors	35000 5000 20000	Fixed Assets Stock Debtors Cash Profit and Loss Account	30000 10000 15000 3000 2000
	60000		60000

Assets are realized as: Fixed Assets Rs.28000, Stock Rs.8000 and Debtors Rs.13000. Creditors were paid at a discount of 10%. Expenses of realization were Rs.1500. Pass Journal Entries in the books of the firm.

Q.20. Jugmug Limited has an authorized capital of Rs.10,00,000 divided into 1,00,000 equity shares of Rs.10 each. The directors decided to issue 50000 shares to the public at a premium of 10% payable as follows:                                 8

On Application: Rs.3

On Allotment: Rs. 5 (Including Premium) and the Balance on 1^st and final call.

The company received application for 60000 shares. The directors decided to reject the excess application and the money thereon was refunded. The calls were made and call money duly received. Give Journal Entries, prepare a Cash Book and a Balance Sheet in the books of the company.

Q.21. The following is the Trial Balance of X and Y firm as on 31.3.2013:             8

Trial Balance

Debit	Amount	Credit	Amount
Fixed Assets Advance Income Tax Salaries Taxes Miscellaneous Expenses Bills Receivable Sundry Debtors Closing Stock Charity Investment Bank Balance Drawings: X                 12000 Y                   8000	453000 200 16000 800 1000 1800 42800 20000 1400 30000 15600     20,000	Reserve Fund Outstanding Wages Bad Debt Provision Sundry Creditors Capital: X                 240000 Y                 160000 Profit from Joint Venture Profit from Branch Trading Account (Gross Profit)	19000 600 1400 55600     4,00,000 1000 400 124600
	602600		602600

Prepare Profit and Loss Account and Profit and Loss Appropriation Account for the year ended 31.3.2013 and a Balance Sheet as on that date after taking into consideration the following adjustments:

        i.            The Partners are entitled to Interest on Capital @ 5% and they are charged interest on drawings: X – 300 and Y – 200.

      ii.            Transfer 10% of the net profit to Reserve Fund.

    iii.            Provide manager’s commission @5% on net profit before charging such commission.

     iv.            Bad Debt reserve is to be increased to 5% on debtors.

       v.            Interest on investment accrued Rs.500.

Q. 22. Swadip Petrochemicals Ltd. issued 10000 12% Debentures of Rs.100 each. Give Journal Entries for issue and redemption of debentures in the books of the company under the following situations:                 8

        i.            Issued at par and redeemable after 5 years at par.

      ii.            Issued at Par and redeemable after 5 years at a premium of 5%.

    iii.            Issued at a premium of 5% and redeemable after 5 years at par.

     iv.            Issued at a premium of 5% and redeemable after 5 years at a premium of 10%.

OR

Q.Explain the different methods of redemption of debentures.                               8

 

2015

SUBJECT-ACCOUNTACY

FULL MARKS: 100

 PASS: 30               

TIME: THREE HOURS                      

Q.1. (a) Fill in the blanks with appropriate word:                          1x4=4

        i.            If a partner takes over a liability of the firm, the partner’s capital account is _____.

      ii.            A partner acts as an _____ for the firm.

    iii.            When Partner’s Capital Accounts are fixed, then their _____ accounts.

     iv.            _____ is the extra earning capacity of a firm.

     (B) Choose the correct alternative:                                            1x2=2

        i.            In the event of death of a partner, the amount of general reserve is transferred to the Partner’s Capital Accounts in:

(a)   New Profit sharing ratio. (b) Old Profit sharing ratio. (c) Capital ratio. (d) None of the above.

      ii.            Balance Sheet shows:

(a)   Financial Position of a Company. (b)Profit or Loss of a Company. (c) Cash flow of a Company. (d) None of the above.

    (C) State whether the following statements are true or false: 1x2=2             

        i.            The decreased partner’s executor is entitled to a share of Profit for the period up to his / her death.

      ii.            A Preference shareholder gets interest at a fixed rate.

Q.2. State any two features of a Not-for-profit organization?           2                                             

Q.3. A, B and C are partner sharing profits in the ratio of 2:2:1. C retires. A and B have decided to share future profits and losses in the ratio of 2: 1. Calculate the gaining ratio.    2

Q.4. Mention any two features of debentures?                                 2

Q.5. Mention any two methods of valuation of goodwill?     2

Q.6. X Ltd. Decided to forfeit 1,000 shares of Rs. 10 each for non-payment of allotment money for Rs. 4 each and 1^st and final call money of Rs. 3 each. Give journal entry for the forfeiture of shares.        2

Q.7. X, Y and Z are partners sharing profits in the ratio 3:2:1. It is now agreed that they will share the future profits equally. Goodwill of the firm is valued at Rs. 60,000. And the same does not appear in the books. Pass necessary journal entries.                       3

Q. 8. Briefly explain any three objectives of analysis of financial statements.         3

OR

From the following calculate Current Ratio:

Particulars	Amount
Sundry Debtors Stock Prepaid Expenses Bank Overdraft Dividend payable 10% Debenture Machinery Sundry creditors	50,000 40,000 2,000 10,000 10,000 40,000 50,000 38000

Q.9. What do you mean by Forfeiture of Shares? Discuss the procedure of forfeiture of shares?3

Q.10. What is meant by Common Size Statements? Mention any two uses of Common Size statements.        3

OR

Q. Give any three distinctions between sacrificing ratio and gaining ratio. 3

 

Q.11. Mention any three objectives of Receipts and Payment Account.       3

 

Q. 12. Given the new format of the Balance Sheet of a Company (main heading only) as per the requirement of schedule VI of the Companies Act, 1956.                       5

OR

Q. Distinguish between a Company’s Balance Sheet and Balance Sheet of a Partnership Firm?     5

 

Donation received Entrance fee received Donation received for Building Furniture purchased Salary paid for the year Salary paid in advance Repair to Building Rent received Wages paid Outstanding Salaries Depreciation of furniture Maintenance Grant Subscription received : For 2012-13 For 2013-14 For 2014-15 Life Membership Fees Balance of Bank on 31-03-14

18,000 6,000 90,000 18,000 10,500 2,000 1,500 1,500 6,000 1,500 2,000 900   8,000 25,000 1,000 4,000 1,35,000

Q.13. Assam Cricket Club has a Cash and Bank Balances of Rs. 1,600 and Rs. 20,000 respectively on 01-04-2013. From the following details, prepare a Receipts and Payments Account for the year ended 31-03-2014.       5

 

Q.14. X Ltd. made a profit of Rs. 500000 after considering the following items:     5

	Amount
Goodwill written off Depreciation on Fixed Assets Loss on Sale of Machinery Provision for doubtful debt Gain on sale of land	5,000 50,000 20,000 10,000 7,500

Additional Information:

Particulars	31-03-2014	31-03-2013
Bills Receivable Prepaid Expenses Bills Payable Expenses Payable	78,000 3,000 51,000 20,000	52,000 2,000 40,000 34,000

Calculate Cash and Operating Activities for the year ended 31^st March, 2014.

OR

Q.What is Cash Flow statement? Briefly explain any four objectives of preparing a Cash Flow statement.                 1+4=5

Q.15. From the given information, calculate the stock Turnover Ratio:                   5

Sales                                                    =          Rs. 4,00,000

Gross Profit Ratio                                =                      25%

Opening Stock was 1/3^rd of the value of the Closing stock.

Closing Stock was 30% of Sales.

OR

Q.How are the accounts settled between partners on the dissolution of a Partnership Firm?5

Q.16. The Balance Sheet of A, B and C who were sharing profits in proportion to their Capitals stood as follows on 31^st March, 2014:

Balance Sheet

Liabilities	Rs.	Assets	Amount
Sundry Creditors Capital Accounts :     A -18,000     B -13,500     C - 9,000	14,400       40,500	Cash at Bank Sundry Debtors Stock Investments Land of Building	5,500 4,900 8,000 11,500 25,000
	54,900		54,900

B retired on the above date on the following terms and conditions:

a)      That stock is depreciated by 6%.

b)      That a provision for doubtful debts be created @ 5% on the Debtors.

c)      That Land and Buildings be appreciated by 20%.

d)      That the Goodwill of the entire firm is fixed at Rs. 10,800 and B’s share goodwill be adjusted into the accounts of A and C who are going to share future profits in the ratio of 5: 3 (No Goodwill account is to be raised.)

Pass the necessary journal entries in the books of the firm.             5

OR

Q. Explain the issue of Shares at par, at a discount and at a premium.

Q. 17. A, B and C were partners in a firm sharing profits in the ratio 5:3:2. On 31^st March, 2013, their Balance Sheet was as follows:

Balance Sheet

Liabilities	Amount	Assets	Amount
Creditors Reserves Capital :     A - 30,000     B  -25,000     C - 15,000	11,000 6,000       70,000	Buildings Machinery Stock Debtors Cash at Bank	20,000 30,000 10,000 19,000 8,000
	87,000		87,000

A died on 1^st October, 2013. It was agreed between his executors and the remaining partners that:

        i.            Goodwill to be valued at 2.5 years purchase of the average profits of the previous four years which were:

Year	Profit (Rs.)
2009-2010 2010-2011 2011-2012 2012-2013	13,000 12,000 20,000 15,000

      ii.            Machinery and Building be valued at Rs. 28,000 and Rs. 25,000 respectively.

    iii.            Profit for the year 2013-14 is taken as having accrued at the same ratio as that of the previous year.

     iv.            Interest on capital is provided at 10% p.a.

       v.            The mount due to A shall be transferred to his Executor’s Account.

            Prepare A’s Capital Account as on the date of his death.                  5

 

Q.18. A and B are partners sharing profits in the ratio of 3:2. Their Balance Sheet as on 31.03.14 was as follows:

Balance Sheet

Liabilities	Amount	Assets	Amount
Capital :     A - 10,000     B - 2,000 General Reserve Sundry Creditors	12,000 2,500 7,500	Sundry Assets Profit & Loss A/c	17,000 5,000
	22,000		22,000/-

The firm is dissolved on the above date. Assets are realised at Rs. 13,500. Dissolution expenses came to Rs. 250 Give journal entries to close the books of the firm.   5

Q.19. Prity and Jyoty are partners in a firm sharing profits in the ratio of 3:2. The Trial Balance of the firm as on 31-03-2014 was as follows:-

Trial Balance

Particulars	Debit Amount	Particulars	Credit Amount
Debtors Furniture Machinery Salaries Insurance Premium on Machinery Bad Debts Cash in hand Rent Back charges Carriage Outward Depreciation on Furniture Drawings :     Prity     Jyoty	10,000 10,000 31,000 13,200 1,200 200 10,400 6,000 420 1,450 1,000   4,000 2,500	Trading A/c (G.P.) Bad debt recovered Sundry receipts Provision for bad debts Commission Creditors Rent Payable Bills Payable Capital A/c :     Prity     Jyoty	41,120 600 1,000 800 250 10,000 200 2,400   20,000 15,000
	91370		91,370

Prepare the Profit and Loss A/c and the Profit and Loss Appropriation A/c of the firm for the year ended on 31-03-14 and a Balance Sheet as on that date after considering the following adjustments:                                8

        i.            Machinery is to be depreciated by 10%.

      ii.            Provision for bad debt is to be increased by Rs. 200.

    iii.            Prity was to receive, salary @ Rs. 300 per month.

     iv.            Interest on Capital is allowed @ 5% p.a.

Q.20. X Ltd. Issued 2,000 shares of Rs. 100 each at a premium of Rs. 20 payable as follows:

Rs. 30/- on Application.

Rs. 50/- on Allotment (including securities premium Rs. 20)

Rs. 40/- on First Call & Final Call.

All the shares were duly subscribed for, called up and paid up, except Miss Nitu who holding 300 shares failed to pay First & Final call money. Show entries in the Cash Book and Journal of the company for the above transactions.                              8

Q. 21. Give journal entries in respect of the following:                     8

        i.            Debentures issued at par, redeemable at a premium.

      ii.            Debentures issued at a premium, redeemable at par.

    iii.            Debentures issued at a discount, redeemable at par.

     iv.            Debentures issued at a discount, redeemable at premium.

OR

Q. What is meant by Redemption of Debentures? Discuss briefly any three methods of the Redemption of Debentures.                     2+6=8

Q.22. Ram and Shyam are partners sharing profits and losses in the ratio of 3:1. Their Balance Sheet as on 31-03-2014 is given below:

Balance Sheet

As on 31-03-2014

Liabilities	Rs.	Assets	Rs.
Capital : Ram     -  60,000 Shyam -  40,000 Reserve Sundry Creditors	1,00,000 20,000 80,000	Plant & Machinery Furniture Stock Debtors Cash at Bank	50,000 10,000 70,000 15,000 55,000
	2,00,000		2,00,000

Hari was admitted as a new partner on the following conditions:-

a)      That Hari bring Rs. 40,000 for his capital and Rs. 20,000 for the premium.

b)      That Hari will get 1/3^rd share in future profit.

c)      That the value of stock is be reduced by Rs. 7,000

d)      That the value of Plant and Machinery is to be depreciated by 20%.

e)      Furniture is to be reduced by 10%.

f)       Bad debts amounted to Rs. 2,000 and are to be written off.

g)      There was an unrecorded computer valued at Rs. 10,000 and the same is to be brought into books now.

Prepare a Pre-valuation Account, Partner’s Capital Account and the re-constituted Balance Sheet after Hari’s admission.                               3+2+3=8

OR

Q. Who are the users of financial statement? Explain the information they require from financial statements. 3+5=8

2016

SUBJECT-ACCOUNTACY

FULL MARKS: 100

 PASS: 30               

TIME: THREE HOURS                      

Q.1. (A) Fill in the blanks with appropriate word:             1x4=4

a)      In the absence of Partnership Deed, a Partner who advances money to the firm beyond the amount of his / her capital is entitled to get interest thereon at the rate of 6 % per annum as per Partnership Act, 1932.

b)      The members of a Partnership business are collectively known as Firm.

c)      The amount due to the retiring partner is transferred to his / her Loan Account in case it is not paid immediately.

d)      In case of fixed capital, a partner’s Capital Account always shows a Credit balance.

        (B) Choose the correct alternative:                 1x2=2

        i.            Financial Statements of a company include:

(a)   Balance Sheet. (b) Profit and Loss Account. (c) Cash flow Statement. (d) All of the above.

      ii.            Profit and Loss Account is also known as Income statement.

   (C) State whether the following statements are true or false:              1x2=2

        i.            Interest on Partner’s capital is debited to Partner’s Capital Account. False

      ii.            Debenture holders are creditors of the company. True

Q.2. State the meaning of Not-for-Profit organization.                     2

Q.3. A and B are partners sharing profits in the ratio 3: 2. C is admitted as a new partner for 1/5^th share in the future profits. Calculate the new profit sharing ratio.           2

Q.4. Mention any two distinctions between shares and debentures.            2

Q.5. A Ltd. forfeited 500 shares of Rs. 10/- each, Rs. 8/- paid, for non-payment of final call of Rs. 2/- each. Give Journal entry of forfeiture of share.               2

Q.6. A and B are partners in a firm sharing profits in the ratio of 3: 2. Their capitals as on April, 1^st  2014 were Rs. 2, 00,000/- and Rs. 1, 80,000/- respectively. On October 1 2014, A introduced an additional capital of Rs. 50,000 and on January, 1^st  2015, B introduced Rs. 70,000/-. Interest on capital is allowed at 10% p.a. Calculate interest on capital for both the partners for the year ending March, 31, 2015.             2

Q.7. Explain any three objectives of preparing a Cash Flow statement.       1x3=3

OR

Q.From the following details, calculate Current Ratio and Liquid Ratio:                  3

Machinery 8% Debenture Bank Overdraft Sundry Creditors Prepaid Expenses Stock Sundry Debtors

1,00,000 80,000 20,000 76,000 4,000 80,000 1,00,000

 

Q.8. Mention any three items that can be shown under the heading “Reserves & Surplus” in a company’s Balance Sheet.                 1x3=3

OR

Q. Give three objectives of financial statement analysis.                  1x3=3

Q. 9. What is meant by Comparative Statements? What do they show?                  1+2=3

                                                OR

Q. Explain the Capitalization method of valuation of Goodwill.

Q.10. Mention any three distinctions between Fund-based Accounting and Non-fund based Accounting.                      1x3=3

OR

Q.Mention three features of a non-trading organization.

Q.11. Mention any three limitations of Financial Statements.          1x3=3

 

Q.12. From the following Receipts and Payments Account for the year ended 31^st December, 2015 and other details of the Sankardev Club, prepare an Income and Expenditure Account for the year ended 31^st December, 2015:                   5

Receipts	Amount	Payments	Amount
Cash in hand on 1.1.15 Subscriptions:         2014=900         2015=20,000         2016=2,000 Sale of Newspapers Life Membership Fees Donation Donation for Buildings Interest Maintenance Grant	12,000       22,900 100 5,000 6,000 8,000 200 3,000	Salaries Honorarium Travelling Expenses Sport Expenses Investments Construction of Buildings Rent Scholarship Cash in hand on 31-12-15	14,000 3,000 2,000 5,000 10,000 7,000 2,000 1,000 13,200
	57,200		57,200

Additional Information:

a)      Outstanding Subscription Rs. 2,500.

b)      Outstanding Salaries Rs. 1,000.

c)      Subscription for 2015 Rs. 400. Received in 2014.

OR

Q.Mention any five distinctions between Receipts and Payments Account and Income and Expenditure Account.                 5

Q.13. From the following details, calculate cash from Investing and Financing Activities:  5

Particulars	1-4-2014	31-3-2015
Machinery at Cost Accumulated Depreciation Capital Bank Loan	60,000 15,000 45,000 15,000	75,000 18,000 52,500 -----

During the year, machinery costing Rs. 15,000/- Was sold at a loss of Rs. 3,000. Depreciation on machinery charges during the year amounted to Rs. 9,000.

OR

Q. Explain any five advantages of Cash Flow Statement.                  1x5=5

Q.14. From the following details, calculate Gross Profit and Sales:              2 ½ x2=5

Average Stock = 60,000/-

Stock Turnover Ratio = 6 times.

Selling Price is 20% above cost.

OR

Q.Name any five ratios used for analyzing the liquidity position of a Firm.             1x5=5

Q.15. Partha, Pranoy and Prasanna are partners sharing profits and losses in the ratio of 3: 2: 1. On 31^st March, 2015, their Balance Sheet stood as follows:

Balance Sheet

Liabilities	Amount	Amount	Rs.
Capitals :     Partha :         80,000     Pranoy :        60,000     Prasanna :    50,000 General Reserve Sundry Creditors	1,90,000 24,000 48,000	Buildings Plant & Machinery Inventory Debtors Bank	90,000 86,000 50,000 31,000 5,000
	2,62,000		2,62,000

Pranoy retires on that date under the following terms:

a)      The Goodwill of the firm is valued at Rs. 36,000.

b)      Plant & Machinery is to be depreciated by 10%.

c)      Inventory and Buildings are to be appreciated by 20% and 10% respectively.

Give necessary Journal entries in the books of the firm.                   5

OR

Q.Explain the procedure of forfeiture of shares.                   5

Q.16. Anupam, Binoy and Chandan were partners in a firm sharing profits in the ratio of 2:3:5. On 31^st March, 2014, their Balance Sheet was as follows:

Balance Sheet

Liabilities	Amount	Assets	Amount
Capitals :     Anupam   -     60,000     Binoy        -     50,000     Chandan  -     30,000 Reserve Creditors Bills Payable	1,40,000 12,000 20,000 2,000	Cash at Bank Debtors Bills Receivable Stock Furniture Machinery	16,000 30,000 8,000 20,000 60,000 40,000
	1,74,000		1,74,000

Anupam died on 1^st October, 2014. It was agreed between his executors and the remaining partners that:

                    i.            Goodwill will be valued at 3 years purchase of the average profits of the last four years which were :

Year	Profit
2010-11 2011-12 2012-13 2013-14	30,000 40,000 40,000 40,000

 

                  ii.            Machinery and Furniture be valued at Rs. 36,000/- and Rs. 56,000/- respectively.

                iii.            Profit for the year 2014-15 be taken as having accrued at the same rate as that of the previous year.

                 iv.            Interest on capital be provided at 10% p.a.

                   v.            The amount due to Anupam shall be transferred to his Executor’s Loan Account.

Prepare Anupam’s Capital Account as on the date of his death.                   5

OR

Q.What are the causes of retirement of a Partner from a Partnership firm (any five causes)                    1x5=5

Q.17. R, M and H were in partnership sharing profits and losses in the ratio of 8: 5: 3 respectively. The firm’s balance sheet as on 31^st March, 2015 was as under:

Balance Sheet

Liabilities	Amount	Assets	Amount
Capitals :     R          -    5,000     M        -    2,000     H         -    1,000 Sundry Creditors Bank Loan	8,000 2,953 5,500	Current Account : R        -       2,195 M       -       1,733 H        -       1,520 Machinery Stock Sundry Debtors Cash	5,448 1,050 6,059 3,572 324
	16,453		16,453

 

It was resolved to dissolve the partnership as on that date. The assets were realised as follows:

Machinery Stock Sundry Debtors

600 5,230 3,555

 

Prepare Realization Account.                         5

                                                                                     OR

Q.What do you mean by dissolution of a Partnership? State three grounds for dissolution of Partnership.                  2+3=5

Q.18. Give the new format of the Balance Sheet of a Company (main headings only) as per the requirements of revised Schedule – VI of the Companies Act, 1956.                           5

OR

Q.How would you compute the amount due to a deceased Partner’s Executor?     5

Q.19. Following is the Trial Balance of SUDIP AND PRADIP as on 31^st March, 2015:                       8

Particulars	Amount	Particulars	Amount
Plant & Machinery Publicity Freight on sales Buildings Goodwill Sundry Debtors Bad debt Cash at Bank Investments Cash in hand Salaries Stock General Expenses Drawings:                  Sudip    - 5,000                  Pradip  - 3,000	35,000 5,000 2,140 69,000 15,000 48,200 1,400 5,620 10,000 170 28,850 10,000 5,500     8,000	Capital Accounts :              Sudip    -  50,000              Pradip  - 30,000 Trading Account --Gross Profit Creditors Bank Loan Commission Outstanding Freight Provision for doubtful debt Bills Payable	80,000   85,700 44,560 21,000 4,420 200 1,000 7,000
TOTAL	2,43,880	TOTAL	2,43,880

Prepare the Profit & Loss Account and the Profit & Loss Appropriation Account of the firm for the year ended 31^st March, 2015 and a Balance Sheet as on that date after taking into consideration the following additional information:

a)      Depreciation Plant & Machinery @ 10% p.a.

b)      Prepaid Publicity Rs. 500

c)      Outstanding Salaries Rs. 1,150

d)      Provide for doubtful debt @ 5% on Sundry Debtors.

e)      Partners will get interest on capital @ 5% p.a.

Q.20. Assam Tea Ltd. has an authorized capital of Rs. 10, 00,000/- divided into Rs. 1, 00,000 equity shares of Rs. 10/- each. The directors decided to issue 50,000 shares to the public at a premium of 10% payable as follows:

On Application Rs. 3/-

On Allotment (including premium) Rs. 5/-

And the balance on 1^st and final call.

The company received applications for 60,000 shares. The directors decided to reject the excess applications and the money thereon was refunded. All the shares were duly subscribed for, called up and paid up. Give Journal entries and prepare a Cash Book in the books of the Company.                                  8

OR

Write short notes on:              2x4=8

a)      Call in Arrear.

b)      Calls in Advance.

c)      Preference Share.

d)      Right Share.

Q.21. Tata Motors Ltd. invited applications for the issue of 3,000, 10% debentures of Rs. 100/- each at a discount of 10% payable Rs. 30/- on application, Rs. 30/- on allotment (after deducting discount) and the balance on first and final call. All the debentures were subscribed and the debenture money was duly called and paid up. Give Journal entries and show how Debentures Account will be shown in the Balance Sheet of the Company.     8

OR

Q. Give the accounting entries for issue of debentures under different situations with imaginary figures. (any four situations)                   2x4=8

Q.22. A and B are two partners sharing profits and losses in the ratio of 3: 2. Their Balance Sheet as on 31^st March, 2015 was as follows:

Balance Sheet

Liabilities	Amount	Assets	Amount
Capital :      A = 30,000      B = 25,000 General Reserve Sundry Creditors	55,000 5,000 15,000	Land & Buildings Plant & Machinery Furniture Stock Debtors Cash in Hand	30,000 20,000 10,000 5,000 8,000 2,000
	75,000		75,000

On 01-4-2015, C was admitted as a new partner for 1/4^th share in the future profits on the following conditions:

a)      C will bring Rs. 20,000/- as Capital and Rs. 6,000/- as premium for goodwill.

b)      The Land & Buildings will be revalued at Rs. 35,000.

c)      Plant & Machinery and Furniture will be depreciated by 5% and 10% respectively.

d)      Stock will be reduced by Rs. 2,000.

Give Journal entries and prepare the Balance Sheet of the firm after C’s admission.                                 6+2=8

OR

Q. Give the Accounting entries relating to forfeiture and re-issue of shares with imaginary figures.         8

2017

SUBJECT-ACCOUNTACY

FULL MARKS: 100

 PASS: 30               

TIME: THREE HOURS                      

1. (A) Fill in the blanks with appropriate word/words:                             1x4=4

                    i.            Unrecorded assets when realized are credited to ____ Account.

                  ii.            When Partner’s Capital Accounts are fixed, their ____ Accounts are prepared.

                iii.            Partner’s Loan Account is paid before payment of ____.

                iv.            If a partner takes over a liability of the firm, the partner’s capital account is ____.

     (B) Choose the correct alternative:                                                        1x2=2

                    i.            Financial Statements are

(a)   Summarized reports of recorded facts. (b)Detailed reports of the recorded facts. (c)Summarized reports of only cash transactions. (d)None of the above.

                  ii.            Financial Statements of a company include:

(a)   Only Balance Sheet.(b) Only Profit and Loss Account.(c) Only Cash Flow Statement. (d) All of the above.

                

      (C) State whether the following statements are True or False:                      1x2=2

                    i.            Financial analysis is used only by the creditors.

                  ii.            The deceased partner’s executor is entitled to a share of profit for the period upto his/her death. True

Q.2. What is a Capital Fund?              2

Q.3. Ram, Shyam and Hari are partners sharing profits in the ratio of 2:2:1. Hari retires. Ram and Shyam have decided to share future profits and losses in the ratio of 2:1. Calculate the gaining ratio. 2

Q.4. Mention any two features of debentures.                      2

Q.5. Assam Tea Ltd. decided to forfeit 1,000 shares of Rs. 20/- each for non-payment of allotment money of Rs. 5/- each and 1^st and final call money of Rs. 2/- each. Give journal entry for the forfeiture of shares.             2

Q.6. Mention any two methods of valuation of Goodwill.                             2

Q.7. What are the sources of Cash Flows as per AS-3 (Revised)?                  3

OR

Q.From the following details, calculate Current Ratio:         3

	Amount
Sundry Debtors Stock Prepaid Expenses Sundry Creditors Bank Overdraft Interest Payable Debentures Buildings	10,000 8,000 6,000 8,000 2,000 2,000 50,000 1,00,000

8. Explain the meaning of financial statements.                    3

OR

Q.What is trend analysis? Mention its usefulness.                             1+2=3

Q.9. What is Common Size Statement? What do they show?                        1+2=3

OR

Q.Explain any one Method of Valuation of Goodwill.                                    3

10. State any three features of Receipts and Payments Account.                 3

OR

Q.Explain the meaning of Fund-based Accounting.               3

Q.11. Mention any three limitations of Financial Statements.                      1x3=3

Q.12. Guwahati Sports Club has a Cash and Bank balances of Rs. 5,000 and Rs. 10,000 respectively on 01/04/2015. From the following details, prepare a Receipts and Payments Account for the year ended 31/03/2016                5

Particulars	Rs.
Entrance fees received Donation received Donation received for Building Computer purchased Salary paid Repair to Building Rent received Wages paid Outstanding salaries Depreciation on Furniture Maintenance Grant received Subscription received Life Membership Fees received Cash in hand on 31/03/2016	8,000 10,000 10,000 12,000 5,000 6,000 5,000 3,000 2,800 13,000 8,000 10,000 10,000 40,000

OR

Q.Mention any five distinctions between Receipts and Payments Account and Income and Expenditure Account.    5

 

Q.13. From the following information, ascertain “Cash Flow from Investing Activities”:

Particulars	Rs.
Land and Buildings purchased during the year Additional furniture purchased during the year Investments purchased Investments sold Loss on Sale of Investments Plant and Machinery sold during the year Dividend received Interest received Sale of land Profit on Sale of land	2,00,000 50,000 50,000 1,00,000 5,000 40,000 15,000 20,000 3,00,000 1,50,000

OR

Q.Explain the meaning of Cash Flow Statement. Mention any three objectives of Cash Flow Statement.          2+3=5

Q.14. From the following information, calculate (i) Current Assets (ii) Current Liabilities and (iii) Quick Ratio.        5

            Working Capital = Rs. 40,000

            Current Ratio = 2:1

            Stock = Rs. 30,000

OR

Q.What do you mean by Activity Ratios? Explain the method of calculating any one of Activity Ratios.     2 ½ +2 ½=5

Q.15. The Balance Sheet of Ram, Shyam and Hari who were sharing profits in proportion to their capital stood as follows on 31^st March, 2016:

Balance Sheet

Liabilities	Rs.	Assets	Rs.
Sundry Creditors General reerve Capital Account:      Ram:              20,000      Shyam:          20,000      Hari:              10,000	10,000 6,000       50,000	Cash at Bank Sundry Debtors Stock Investments Buildings	5,000 6,000 9,000 10,000 30,000
	60,000		60,000

Shyam retired on the above date on the following terms and conditions:

        i.            That stock be depreciated by Rs. 1,000

      ii.            That Building be appreciated by 20%.

Pass the necessary journal entries and prepare the opening Balance Sheet of the new firm. 5

OR

Q.Explain the issue of shares at par, at a discount and at a premium.

 

Q.16. A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. Their Balance Sheet as on 31/03/16 was as follows:

Liabilities	Rs.	Assets	Rs.
Sundry Creditors Capital Account:      A:       =       20,000      B:       =       10,000      C:       =       20,000	4,000       50,000	Buildings Machinery Stock Debtors Cash at Bank	20,000 16,000 4,000 15,000 5,000
	60,000		60,000

A died on 30/09/2016. Under the agreement, the executors of the deceased partner were entitled to:

a)      Amount outstanding to the credit of partner’s capital account.

b)      Interest on capital at 12% per annum.

c)      Share of goodwill on the basis of four year’s purchase of the average profit of last three years.

d)      Share of profit from closing of the last financial year to the date of death on the basis of last year’s profit.

e)      Profits for the last three years were:

Year	Profits
2013-14 2014-15 2015-16	8,000 12,000 7,000

Prepare A’s capital Account on the date of his death.                                   5

OR

Q.How would you compute the amount due to a retiring partner or the executors of a deceased partner?             5

Q.17. Akash and Bikash are partners sharing profits in the ratio of 3:2. Their Balance Sheet as on 31/03/2016 was as follows:

Balance Sheet

Liabilities	Rs.	Assets	Rs.
Capital:       Akash =   12,000       Bikash =    8,000   General Reserve Sundry Creditors	20,000   10,000 10,000	Sundry Assets	40,000
	40,000		40,000

The firm is dissolved on the above date. Assets are realized at Rs. 60,000 Dissolution expenses came to Rs. 2,000. You are required to Pass journal Entry.                         5

OR

Q.Explain any five distinctions between Revaluation Account and Realisation Account.     5

Q.18. What do you mean by preliminary expenses? Mention the items which are usually included in the list of preliminary expenses.                                                2+3=5

OR

Q.Give the new format of the Balance Sheet of a company (main headings only) as per the requirements of the revised Schedule-VI of the Companies Act.                                        5

Q.19. Following is the Trial Balance of ANIMA and PRATIMA as on 31^st March, 2016:       

Dr.                                                                   Trial Balance                                                              Cr.

Particulars	Rs.	Particulars	Rs.
Machinery General Expenses Furniture Salaries Cash in hand Investments Cash at Bank Bad debt Sundry Debtors Buildings Publicity	50,000 5,000 10,000 20,000 5,000 12,000 8,000 2,000 40,000 50,000 8,000	Capital:       ANIMA           =      60,000       PRATIMA       =      40,000   Trading Account----- Gross Profit   Sundry Creditors Commission	1,00,000     90,000   10,000 10,000
	2,10,000		2,10,000

Prepare the Profit & Loss Account and the Profit & Loss Appropriation Account of the firm for the year ended 31^st March, 2016 and a Balance Sheet as on that date after taking into consideration the following additional information:                                      8      

        i.            Depreciate Machinery @ 10% per annum.

      ii.            Partners will get interest on capital @ 10% per annum.

Q.20. NE Traders Ltd. issued 5,000 shares of Rs. 20 each at a par payable as follows:

            Rs. 5/- on Application

            Rs. 5/- on Allotment

            Rs. 5/- on First Call

            Rs. 5/- on Second and Final Call

All the shares were duly subscribed for, called up and paid up. Show the necessary entries in Cash Book and Journal of the company for the above transactions.                          8

OR

Q.Write short notes:                           2x4=8

a)      Minimum Subscription.

b)      Authorized share Capital.

c)      Reserve Capital.

d)      Preference share.

Q.21. Give the journal entries in respect of the following:                                        8

a)      Debentures issued at par, redeemable at a premium.

b)      Debentures issued at a premium, redeemable at par.

c)      Debentures issued at a discount, redeemable at par.

d)      Debentures issued at a discount, redeemable at premium.

OR

Q.Explain the different methods of redemption of debentures.                               8

Q.22. Ram and Shyam are partners in a firm sharing profits and losses in the ratio of 3:1. Their Balance Sheet as on 1^st April, 2016 was us under:

Balance Sheet

Liabilities	Rs.	Assets	Rs.
Sundry Creditors Reserve Capital:       Ram       =     30,000       Shyam   =     24,000	12,000 9,000     54,000	Cash at Bank Goodwill Sundry Assets	6,000 12,000 57,000
	75,000		75,000

On that date, Barun was admitted as a new partner. He paid Rs. 30,000/- towards his capital, but was unable to bring his share of Goodwill of Rs. 6,000/- in cash. The new profit sharing ratio was agreed to be 3:2:2.

Pass Journal entries in the books of the new firm and show the Balance Sheet of the new firm.                            8

OR

Q.What do you mean by debenture? Explain any six points of distinctions between shares and debentures.         2+6=8

2018

SUBJECT-ACCOUNTACY

FULL MARKS: 100

 PASS: 30               

TIME: THREE HOURS                      

1. (A) Fill in the blanks with appropriate word/words:                             1x4=4

        i.            The interest due to the retiring partner is transferred to his Revaluation account in case t is not paid immediately.

      ii.            A partner acts as agent of the firm.

    iii.            In case of fixed capital, a partner’s capital account always shoes a -------------- balance.

    iv.            Unrecorded assets when realized are credited to Realization account.

     (B) Choose the correct alternative:                                                        1x2=2

                                i.            Balance Sheet shows:

(a)   Financial Position of a Company. (b)Profit or Loss of a Company. (c) Cash flow of a Company. (d) None of the above.

                              ii.            Financial Statements are

(a)   Detailed reports of recorded facts. (b)Detailed reports of the cash transaction only.            (c)Summarized reports of recorded facts (d) Summarized reports of the financial institutions only.         

      (C) State whether the following statements are True or False:               1x2=2

                    i.            Interest n partner’s capital is credited to partners Drawings account.            False

                  ii.            Life membership fee is a revenue receipt.           False

Q.2. State any two features of a not-for-profit organization.                    2

Q.3. What is a Common size statement?                      2

Q.4. Mention an two distinctions between shares and debentures.              2

Q.5. What do you mean by forfeiture of shares?           2

Q.6. What do you mean by comparative statement?                          2

Q.7. Explain the meaning of cash flow from financing Activities?                      3

OR

Q. From the following information, calculate stock turnover ratio:     3

   Sales = 4, 00,000

  Average Stock= 55000

 Gross Loss ratio = 10%

Q.8. Mention any three objectives f financial statement analysis?        3

                                                OR

Q. Briefly explain the nature of financial statements.             3

Q.9. Mention any three limitation of financial statements.                3

Q. Explain the meaning of Ratio Analysis.

Q10. Mention any three distinctions between fund-based accounting and Non-fund-based Accounting.3

                                                                                 OR

Q. What do you mean y income and expenditure Accounts?

Q.11. Amar and Bahadur are partners of a firm sharing profits in the ratio of 3:2. They admit Mery as a new partners for ¼th share in the future profits. The new profit sharing ratio between Amar and Bahadur is agreed to be 2:1. Calculate their sacrificing ratio.                            3

OR

Q. Ranjana, Sadhana and kamona are partners sharing profits in the ratio of 4:3:2. Ranjana retires and Sadhana and Kamona agree to share future profits in the ratio of 5:3. Calculate the gaining ratio.

Q.12. From the following Receipts and Payments account for the year ended 31^st March, 2017 and other details of KAZIRANGA SPORTS CLUB, prepare an income and Expenditure account for the year ended 21^st March, 2017.                                                                                                                                        5

Receipts and Payment Account

Receipts	Rs.	Payments	Rs.
Cash in hand on 01.04.16 Subscription: 2015-16 :  1000 2016-17 :  30000 2017-18 :  2000 Donation Interest Donation for buildings Life membership fees	10000       33,000 7000 3000 10000 7000	Salaries Honorarium Sports expense Rent Travelling Expenses Purchase of Furniture Cash in hand on 31.03.17	8000 5000 2000 3000 2000 35000 15000
	70000		70000

Additional information:

        i.            Outstanding salaries= 2,000

      ii.            Prepaid rent = 1,000

OR

Q. Explain the steps in preparation of income and expenditure account

Q.13. Charles Ltd. Made a profit of Rs. 1,00,000/-  after charging depreciation of Rs. 20,000/- on assets and a transfer to general reserve of Rs30,000/-. The goodwill written off was Rs. 7,000/- and gain on sale of machinery was Rs 3,000/-. Other information available to you (changes in the value of current assets and current liabilities) are debtors showed an increase of Rs. 6,000/- ; creditors an increase of Rs.10,000/-; prepaid  expenses an increase of Rs.200/-; bills receivable a decrease of Rs3,000/-; bills payable a decrease of Rs.4,000/- and outstanding expenses a decrease of 2,000/-. Ascertain cash flow from operating activities.                                                                                                      5

OR

Q. Explain the terms:

(a) Cash equivalents

(b) Cash flows

Q.14. Mention any five objectives of Ratio Analysis.                                                                         5

OR

Q. Calculate current assets of a company from the following information:

Stocks turnover ratio =4 times

Stocks at the is Rs. 20,000/-more than the stock at the beginning.

Sales Rs 3, 00, 000/- and gross profit ratio is 20% of sales.

Current liabilities = Rs40, 000/-

Quick ratio =0.75

Q.15. Shyam, Gagan Ram are partners sharing profits in the ratio 2:2:1. On 31^st march, 2017, their balance sheet was as follows:                                                                                                            2 ½ x2 ½ =5

Balance sheet

Liabilities	Rs	Assets	Rs
Sundry creditors Reserve Capital:          Shyam : 20,000/-          Gagan : 10,000/-           Ram :   10,000/-	50,000 10,000           40,000	Cash Debtors Stock Machinery buildings	5,000 20,000 25,000 20,000 30,000
	1,00,000		1,00,000

 

Gagan retired on that date and shyam and Ram aggred to share future profits in the ratio 5:3.

Swtock , machinery and buildings were revalued at Rs 20,000/-, Rs 15,000/- and Rs 45,000/- respectively.

Prepare revaluation account and partners’ capital account.

OR

Prepare the new format of the balance sheet of a company with the major headinds only.

Q.16. Mohit, sholan and rahul were partners sharings profits in the ratio of 2:2:1. Their balance sheet as on 31^st march 2017 was as follows:                                                                           5

Liabilities	Rs	Assets	Rs
Capital :      Mohit :    30,000/-      Shohan : 20,000/-      Rahul /-:  20,000 General Reserve Creditors	70,000       5,000        25,000	Fixed Assts Stock Sundry debtors Cash at bank	60,000 10,000 20,000 10,000
	1,00,000		1,00,000

Shohan died on june 30, 2017. It was agreed between the remaining partners and his executors that :

        i.            Goodwill will be valued at Rs.50,000/-

      ii.             internet on capital be provided at 10% p.a.

    iii.            profit for yhe year 2017-18 be taken as having accrued at the same rate as that of the previous year which was Rs 40,000/-

     iv.            The amount due to shohan shall be transferred to his Executors’ Loan Account

Prepare Shohan’s capital account as on the date of his death.

OR

What is Partnership Deed? Mention any three distinctions between Fixed and Fluctuating Capital Accounts of partners.

Q.17. SONU and ASHU were partners sharing profits in the ratio of 3:1. Their balance sheet as on 31^st march 2017 was as follows:                                                                                                            5

Liabilities	Rs	Assets	Rs
Creditors Loan Capital :    SONU = 50,000/-    ASHU = 50,000/-	10,000 20,000     1,00,000	Cash at bank Sundry Assets   Profit and loss Account	20,000 70,000   40,000

 

The  firm was dissolved on the above date. The assets were realized at Rs 50,000/- Creditors were paid at a discount of 205 SONU agreed to pay off the Loan. Realisation expenses were Rs 2,000/-. Prepare Realisation Account, Bank Account and Partners Capital Account.

OR

 Q. What do you mean by Dissolution of a partnership? State three grounds for Dissolution of Partnership.

Q.18. Explain the term ‘Over-subscription and Under subscription of Share.      2 ½ X2= 5

                                                                        OR

Q. What is a preference share? Mention the different types of preference shares.

Q.19. Followings is the Trail balance of Ram and SHyam as on 31^st March, 2017:                      8

Particulars	Rs	Particulars	Rs
Plant and machinery  Freight on sales Publicity Land and Buildings Sundry Debtors Bad debt Cash at bank Investments Cash in hand Salaries Rent Stock Drawings :   RAM =        6,000    SHYAM =10,000	10,000 3,000 2,000 50,000 10,000 2,000 15,000 8,000 1,000 12,000 8,000 25,000     16,000	Capital account      RAM =     36,000      SHYAM =40,000   Trading account -Gross Profit Creditors Bank Loan Bills payable	76,000   60,000 12,000 8,000 6,000
	1,62,000		1,62,000

Prepare a profit and Loss Account and the profit and loss appropriation account of the firm for the year ended 31^st march , 2017 and a balance sheet as on that date , after taking into consideration the following additional information:

          i.            outstanding salaries Rs 3,000/-

        ii.            Ram will get a commission of Rs 10,000/-

Q. 20. Hunda limited issued 10,000 equity shares of 100 each payable as follows:                         8

      Rs20/- on application

      Rs 30/- on allotment

      Rs20/- on first call

      Rs 30/- on second and final call.

10,000 shares were applied for and allotted. All money due was received with the exception of both the calls on 300 shares held by SUPRIYA. These shares were forfeited. Give necessary journel entries.

OR

Q. write shot notes on:

(1) Re-issue of forfeited shares

(2) Calls in arrears

(3) Calls in advance4

(4) Reserve capital.

Q.21. X Ltd issued 5000, 16% debentures of Rs.100/- each at a discount of 5% repayable after 5 years at a premium of 5%

  You are required to pass necessary journal entries and show the “Loss on issue of Dentures Account” over the period of Five years.                                                                                                               8

Q.22. A and B are partners sharing profit in the ratio of 3:2. Their balance sheet as on 31^st march, 2017 was as follows:                                                                                                                                   8

Liabilities	Rs.	Assets	Rs.
Sundry Creditor Capital        A    30000        B    20000	20000     50000	Cash in hand Sundry Debtors Stock Furniture Machinery	3000 12000 15000 10000 30000
	70000		70000

 

C was admitted as a new partner on the following term and condition:

        i.            C will bring Rs 15000 for capital and Rs 5000 for his share of Goodwill for 1/6^th share in the future profits.

      ii.            The value of stock to be reduce by Rs.2000 and that of machinery be increased by Rs 8000/-

    iii.            The Value of Furniture to be Fixed at Rs 9000/-

Pass journal entries in the books of the firm and prepare the Balance sheet of the new firm.      8

 OR

Q. Give journal entries on dissolution of a partnership firm in respect of the following:       1x8=8

                                i.            For transfer of assets.

                              ii.            For sale of assets.

                            iii.            If any partner takes over any asset.

                             iv.            For payment of liabilities.

                               v.            For payment of realization expenses.

                             vi.            For realization of unrecorded assets.

                           vii.            For transfer of the balance of General Reserve Account.

                         viii.            For payment of partner’s Loan

 

 

 

 

 

2019

ACCOUNTACY

FULL MARKS: 100

 PASS: 30               

TIME: THREE HOURS          

The figures in the margin indicate full marks for the question.

1. (A) Fill in the blanks with appropriate word/words:                             1x4=4

                    i.            The liability of every shareholder of a company is____________.

                  ii.            Outstanding subscription is shown on the liability side of the balance sheet.

                iii.            If a partner takes over a liability of the firm, the partner’s capital account is Credit.

                iv.            Current ratio is the relationship between Current assets and current liabilities.

     (B) Choose the correct alternative:                                                        1x2=2

                    i.            Annual report is issued by a company to its:

(a)   Directors (b) Auditors (c) Shareholders (d) Management

                  ii.            Financial Statements of a company include:

(b)   Only Cash Flow Statement. (b) Only Profit and Loss Account.(c) Only Balance Sheet.          (d) All of the above.      

      (C) State whether the following statements are True or False:                      1x2=2

                iii.            The deceased partner’s is entitled to a share of profit for the period upto his death. True

                iv.            Profit or loss on revaluation of assets and liabilities is distributed among ole partners in sacrificing ratio.

Q.2.Give tow distinctions between a not-for-profit organization and a trading organization.     2

Q.3. A and B are two partners sharing profit and losses in the ratio of 3:2. C is admitted as a new partner for 3/10^th share which he acquires 2/10^th from A and 1/10^th from B. calculate new profit sharing ratio.                               2

OR

Q. Give two conditions under which a partnership firm is dissolved.

Q.4. mention any two features of a debenture.                         2

Q.5. what is the meaning of cash flow from investing activities?                       2

Q.6. what is meant by “super profit” in relation to valuation of goodwill?                 2

Q.7. mention three objectives of preparing financial statements.                       3

Q.8. calculate liquid ratio from the following information:                 3

Stock =                                          Rs.50,000/-

Debtors =                                     Rs.80,000/-

Bills re4ceavable =                     Rs.10,000/-

Advance tax =                             Rs. 4,000/-

Cash =                                      Rs. 30,000/-

Creditors =                              Rs. 60,000/-

Bills payable =                        Rs. 40,000/-

Machinery =                           Rs. 50,000/-

Bank Overdraft =                   Rs.4,000/-

Debentures =                         Rs. 70,000/-

OR

Q. what is comparative statement? Mention two objectives of preparing comparative statement.

Q.9. what are contingent liabilities? Mention any two items.                    1+2=3

OR  

Q. Explain the average profit method of valuation of goodwill.

Q.10. calculate amount of medicines consumed to be shown in the income and expenditure A/c for the year ended 31-12-2018:                           3

                                                                                01-01-2018                31-12-2018

                                                                                   (Rs.)                                (Rs.)

Stock of medicines                                               3,000                                  500

Creditors for medicines                                       2,000                                 1,300

Amount paid for medicines during 2018 was Rs. 10,800/-

OR 

Q. Mention any three distinctions between receipts and payments A/c and income and expenditure A/c.

Q.11. mention any three limitations of financial statements.             3

OR  

Q. Write three objectives of preparing Realization Account.

Q.12.north east club had a cash balance of Rs.20,000/- and bank balance of Rs. 35,000/- respectively on 01/04/2017. From the following the details prepare a Receipts and payments payments account for the year ended 31/3/2018.

Subscription received                            2016-17                                           30,000     2017-18                                           2, 25,000     2018-19                                           10,000                                    Donation for building                                                                      Entrance Fee                                                                                     Life membership fee                                                                         Printing and stationery Lighting expense                                                                   Rent and taxes paid                                                                            Telephone charges                                                                               Postage                                                                                                  Salaries                                                                                                    Insurance                                                                                                Interest received                                                                                    Locker rent received                                                                              Purchase of furniture cash in hand as on 31-03-2018

2,65,000   60000 23000 20000   38750 26250 17000 2600 2000 88000 15000 18000 42000 2,00,000 23,400

                                                                                OR

Explain in brief the treatment of the following items in preparation of income and expenditure account:

        i.            Subscription

      ii.            Life membership fee

    iii.            General donation

     iv.            Specific donation

       v.            Legacy

Q.13.What is cash flow statement? Explain its three limitations.     2+3=5

OR

From the following information calculate the cash from operating activities:

Profit and loss A/c Bills receivable Provision for depreciation Outstanding wages Prepaid insurance Goodwill Provision for doubtful debts Debtors Cash and bank balance	2016 (Rs.)	2017 (Rs.)
	3,00,000 20,000 60,000 18,000 6,000 40,000 10,000 1,20,000 30,000	2,50,000 18,000 80,000 15,000 9,000 32,000 14,000 80,000 25,000

 

Q.14.Abusiness has a current ratio of 1:2:1. If the working capital is Rs. 1,80,000. Calculate current assets and stock.                    5

OR

Q. What are profitability ratios? What is the significance of gross profit and operating profit ratio?

Q.15. A, B and C were partners sharing profits in the ratio of 3:2:1 respectively. Balance sheet of the firm as at 31^st march, 2017 stood as follows

Liabilities	Rs.	Assets	Rs.
Sundry creditor Capital      A : 20,000      B : 7,500      C : 12,500	16,000       40,000	Building Debtors Stock Patent Bank	23,000 7,000 12,000 8,000 6,000
	56,000		56,000

 

“B” retired on the above date on  the following:

        i.            Building to be appreciated by Rs.8,800.

      ii.            Provision for doubtful debts be made @ 5 %  on debtors.

    iii.            Goodwill of the firm be valued at Rs. 9,000

Pass necessary journal entry.

OR

What is share forfeiture? State the procedure of forfeiture of shares.    2+3=5

16. What is partnership deed? Mentions its four principal clauses.       1+4=5

OR

Following is the balance of P, Q and R as on march 31, 2018.        5

Liabilities	Rs.	Assets	Rs.
Sundry creditors General reserve Capital accounts :       P : 30,000      Q : 20,000      R :  20,000	16,000 16,000       70,000	Bills receivable Furniture Stock Sundry debtors Cash at bank Cash in hand	16,000 22,600 20,400 22,000 18,000 3,000
	1,02,000		1,02,000

Q. Died on June 30, 2018. Under the agreement the executors of the deceased partner were entitled to

a)      Amount standing to the credit of partner’s capital A/C.

b)      Interest on capital @ 5% p.a.

c)      Share of goodwill on the basis of twice the average of the past three year’s profit.

d)       Share of profit from the closing of the last financial year to the date of death on the basis of last year’s profit (2017-18).

e)      Profits for the last three years were:

Year                          profits (Rs)

2015-16                     12,000/-

2016-17                     16,000/-

2017-18                     14,000/-

Prepare Q’s capital account on the date of his death.

17. Distinguish between realization account and revaluation account.       5

OR

A and B are partners sharing profit equally. Balance sheet on September 2018 was as follows :

Liabilities	Rs.	Assets	Rs.
Creditors Bills payable Reserve fund Capitals :       A : 20,000       B : 20,000	11,200 1,800 6,000     40,000	Sundry assets	59,000
	59,000		59,000

The firm is dissolved on the above date. Assets are realized at Rs. 49600. Creditors allowed a discount of 2% and dissolution expenses came to Rs. 544.

Give journal entries to close the books of the firm.

Q.18 Discuss the process for allotment of shares of a company in case of oversubscription.     5

OR

Prepare a comparative income statement from the following particulars:

Particulars	2017	2018
Sales Cost of goods sold Administrative expenses Other income Income tax	4,00,000 2,00,000 40,000 20,000 60,000	5,00,000 3,00,000 1,00,000 30,000 70,000

 

Q.19 following is the trial balance of Rana and Raju as on 31^st march, 2018:       8

Trial balance

Particulars	Rs.	Particulars	Rs.
Machinery Furniture Rent Salaries Debtors Cash in hand Cash at bank Drawings         Rana =  4,000         Raju =   3,000 Closing Commission	10,000 20,860 19,740 9,000 40,500 16,300 45,000     7,000 12,500 5,000	Capital      Rana =  65,000      Raju =  40,000 Creditors Commission Bank loan Trading account Gross profit	1,05,000 18,400 300 5,000   57,200
	1,85,900		1,85,900

Prepare the profit and loss and profit and loss appropriation account for the year ended 31^st march, 2018 and a balance sheet of the firm as on that date after taking into consideration the following additional information:

        i.            Depreciate machinery @ 10% p.a and furniture @20% p.a

      ii.            Partners will get interest on capital @5 % p.a

    iii.            Raju is entitled to a salary of Rs. 1,800 p.a

     iv.            The profit sharing ratio between Rana and Raju was 3:2.

Q.20 M.S limited issued 1,000 equity shares of Rs. 100 each payable as follows:

On application – Rs. 25 per share

On allotment –   Rs. 25 per share

On first call –      Rs. 20 per share

On final call –      Rs. 30 per share

All the shares were duly subscribed for, called- up and paid-up, except Mr. A holding 400 shares did not pay the final call money.  Show the entries in the cash book and journal of the company for the above transactions.

OR

Write short notes on:

a)      Redemption of debentures

b)      Loss on issue of debentures

c)      Minimum subscription

Q.21.  S.K. Ltd. Issued 1,000, 12% Debenture of Rs. 100 each. Give journal entries for redemption of the debentures in the books of the company under the following conditions:     2+3+3=8

        i.            Issued at par and Redeemable at par after 5 year.

      ii.            Issued at par and redeemable at a premium of 5% after 5 year.

    iii.            Issued at a premium of 5% redeemable at par after 5 years.

OR

Write short-notes on: (2x4=8)

        i.            Authorized Share capital

      ii.            Call-in-Arrear

    iii.            Pro-Rata Allotment

     iv.            Preference Share.

Q.22. Vimal and Himal are partners in a firm sharing profits and losses in the ratio 3:2 Their balance sheet as on 31^st December, 2018 was as under:                                 8

Liabilities	Rs.	Assets	Rs.
Sundry Creditors Capital Accounts:                  Vimal         60,000                  Himal         32,000   Profits and Loss A/c	20,000       92000   20,000	Cash Debtors Machinery Stock Goodwill	14,000 18,000 50,000 40,000 10,000
	132,000		1,32,000

 

On date Kailash was admitted as a new partner . he paid Rs 40,000s his capital and Rs. 20,000 for his share of goodwill. The new profit sharing ratio was agreed to be 2:1:1.

Pass journal entries in the books and show the balance sheet of the new firm.

OR

What is goodwill? Mention four factors affecting the goodwill of a firm. Mention three conditions when valuation of goodwill becomes necessary.