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    Accounts Test No. 3

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    AMIN BUHARI ABDUL KHADER
    The document contains 5 questions related to bills of exchange and partnership goodwill valuation. It asks about the definition of terms like bill of exchange, grace days, due date, and acceptance. It also provides details of bills of exchange like the drawer, drawee, payee, amount, period, and dates. It gives profit/loss details of a partnership firm over 5 years and asks to calculate goodwill valued at 2 years purchase of average profits. It also describes transactions related to renewal of bills and provides insolvency details to be journalized.

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    Accounts Test No. 3

    Uploaded by

    AMIN BUHARI ABDUL KHADER
    430 views4 pages
    The document contains 5 questions related to bills of exchange and partnership goodwill valuation. It asks about the definition of terms like bill of exchange, grace days, due date, and acceptance. It also provides details of bills of exchange like the drawer, drawee, payee, amount, period, and dates. It gives profit/loss details of a partnership firm over 5 years and asks to calculate goodwill valued at 2 years purchase of average profits. It also describes transactions related to renewal of bills and provides insolvency details to be journalized.

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    © Attribution Non-Commercial (BY-NC)

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    The document contains 5 questions related to bills of exchange and partnership goodwill valuation. It asks about the definition of terms like bill of exchange, grace days, due date, and acceptance. It also provides details of bills of exchange like the drawer, drawee, payee, amount, period, and dates. It gives profit/loss details of a partnership firm over 5 years and asks to calculate goodwill valued at 2 years purchase of average profits. It also describes transactions related to renewal of bills and provides insolvency details to be journalized.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    430 views4 pages

    Accounts Test No. 3

    Uploaded by

    AMIN BUHARI ABDUL KHADER
    The document contains 5 questions related to bills of exchange and partnership goodwill valuation. It asks about the definition of terms like bill of exchange, grace days, due date, and acceptance. It also provides details of bills of exchange like the drawer, drawee, payee, amount, period, and dates. It gives profit/loss details of a partnership firm over 5 years and asks to calculate goodwill valued at 2 years purchase of average profits. It also describes transactions related to renewal of bills and provides insolvency details to be journalized.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    1. Answer the following Questions.

    (5 marks)
    i. What is bill of exchange?
    ii. What do you mean by goodwill?
    iii. What is do you mean by grace days?
    iv. What is due date?
    v. Who is acceptance of the bill?
    2. Drawer : Abhijit Patil, Vikram nagar, Patna. (5 marks)
    Drawee : Tejas Kapare, Kothrud, Pune.
    Payee : Amey Patki, Nagpur.
    Amount : Rs. 9500
    Period : 80 days
    Term : After sight
    Date of Bill Drawn : 1st June 2008
    Date of Acceptance : 11th June 2008
    Accepted bill for Rs. : 9000 only.
    3. Maruti and Dinesh are carrying on a business in partnership for last 5 years. Goodwill
    of the firm is to be valued at 2 years purchase of last 5 years’ average profit. The
    profits and losses were as under. (5 marks)

    1. Answer the following Questions. (5 marks)


    i. What is inland bill?
    ii. What is foreign bill?
    iii. What is noting charges?
    iv. What is protesting?
    v. What is Draft?
    2. Drawer : Namdev Tukaram, Paithan.
    Drawee : Nivruti Sopan, Dehu.
    Payee : Vitthal Pandurang, Pandharpur.
    Amount : Rs. 5,111
    Period : 3 months
    Date of Bill : 17th August, 1995
    Date of Acceptance : 20th August, 1995

    3. The books of a business showed that the capital employed on 31stDecember, 1992
    was Rs.1, 00,000/-. Profits for the last five years are 1988, 1989, 1990, 1991 & 1992
    were Rs, 60,000, Rs, 55,000, Rs, 75,000, Rs, 85,000 & Rs, 65,000 respectively.
    Goodwill is valued at 2 years purchase of the Super profit of the business. N.R.R. is
    10%.
    Year Amount
    (Rs.)
    2000 – 19000(Pro
    2001 fit)

    2001 – 33000(Pro
    2002 fit)

    2002 – 18000(Los
    2003 s)

    2003 – 14000(Pro
    2004 fit)

    2004 – 32000(Pro
    2005 fit)
    Calculate the value of goodwill of the firm.

    4. Priti owed Manisha Rs. 9000. Priti accepted the bill drawn by Manisha for the amount
    at 4 months. Manisha endorsed the same bill to Shital. Before the due date, Priti
    approached Manisha for renewal of the bill. Manisha agreed on the condition that Rs.
    3,000 be paid immediately together with interest on the remaining amount at 8% p.a.
    for 3 months and Priti should accept a new bill. These arrangements were carried
    through. However, before due date Priti became Insolvent and only 50% of the
    amount could be recovered from her estate. (12 marks)
    5. Journalise the following transactions in the books of Motilal.
    i. Bhavna informed Motilal that Jyoti’s acceptance for Rs. 3,600 endorsed to
    Bhavna has been dishonoured and noting charges have been Rs. 150.
    ii. Anil renews his acceptance to Motilal for Rs. 3,400 by paying Rs. 900 in cash
    and accepting a new bill for the balance plus interest at 8% p.a. for 3 months.
    iii. Prabhakar retired his acceptance to Motilal for Rs. 4,000 by paying Rs. 3850 in
    cash.
    iv. Bank informed Motilal that Arun’s acceptance of Rs. 7000 which was
    discounted with bank has been dishonoured with noting charges Rs. 100.

    4. On 1st January, 1982 Shri Jameersheth of Jalgaon sold goods to Shri Nanchand of
    Nanded for Rs. 80,000. On the same date Shri Jameersheth drew a bill on Shri
    Nanchand for the same amount for three months. Shri Nanchand accepted the bill
    and returned the same to Shri Jameersheth on 4th January, 1982. Shri Jameersheth
    discounted the bill with the banker at 10 % p.a. On the due date bank informed that
    the bill was dishonoured and Shri Nanchand requested Shri Jameersheth to accept Rs.
    40000 immediately and draw upon him the new bill for the remaining amount for two
    months together and interest at 12% p.a. Shri Jameersheth agreed and the second
    bill was duly honoured. Pass the necessary Journal entries in the books of Shri
    Jameersheth of Jalgaon and show Shri Jameersheth’s account in the books of Shri Nanchand of
    Nagpur. (12 marks)
    5. Journalise the following transactions in the books of Rahul.
    a. Pradeep informed Rahul that, Vijay’s acceptance for Rs. 1,000 endorsed to
    Pradeep has been dishonoured. Noting charges amounted to Rs. 50.
    b. Nilesh renews his acceptance to Rahul for Rs. 600 by paying Rs. 200 in cash
    and accepting a fresh bill for balance plus interest at 12% p.a. for 3 months.
    c. Prashant’s acceptance to Rahul for Rs. 3,000 retired one month before due
    date at a discount of 12% p.a.
    d. Bank informs Rahul as to the dishonour of Aviraj’s acceptance for Rs. 1,000
    to Rahul, discounted with the bank. Noting charges are Rs. 20.

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