The document provides information for a test with 5 sections and 10 total questions. It includes questions that require one sentence answers, identifying terms, selecting the most appropriate option, stating if statements are true or false, preparing an accounting format, and preparing various accounting statements and journal entries. The document tests accounting knowledge related to topics like discounting, non-recurring expenses, balance sheets, single entry accounting, partnership admissions and dissolution.
The document provides information for a test with 5 sections and 10 total questions. It includes questions that require one sentence answers, identifying terms, selecting the most appropriate option, stating if statements are true or false, preparing an accounting format, and preparing various accounting statements and journal entries. The document tests accounting knowledge related to topics like discounting, non-recurring expenses, balance sheets, single entry accounting, partnership admissions and dissolution.
The document provides information for a test with 5 sections and 10 total questions. It includes questions that require one sentence answers, identifying terms, selecting the most appropriate option, stating if statements are true or false, preparing an accounting format, and preparing various accounting statements and journal entries. The document tests accounting knowledge related to topics like discounting, non-recurring expenses, balance sheets, single entry accounting, partnership admissions and dissolution.
The document provides information for a test with 5 sections and 10 total questions. It includes questions that require one sentence answers, identifying terms, selecting the most appropriate option, stating if statements are true or false, preparing an accounting format, and preparing various accounting statements and journal entries. The document tests accounting knowledge related to topics like discounting, non-recurring expenses, balance sheets, single entry accounting, partnership admissions and dissolution.
2. Who is called a minor partner? 3. What do you mean by freight? 4. When is the gain ratio to be calculated? 5. What do you mean by non-recurring expenses?
(B) Write the word/term/phrase which can substitute each of the following statements:- 5
1. A bill of exchange drawn and accepted for a value received.
2. The debentures where no charge is created on the assets of the company. 3. Expenses which are paid before they become due. 4. Profit & Loss Account appearing on asset side of the balance sheet. 5. Credit balance in Realisation Account.
(C) Select the most appropriate alternative from those given below:- 5
1. Non cash items are not recorded in ___________.
2. In Statement of Profit or Loss, Interest on Capital is shown as ________.
(a) addition (b) subtraction (c) multiplication (d) division 3727/Page 1 P.T.O. 3. Transfer of title of bill from debtor to creditor is known as ___________.
4. The document inviting offers from public to subscribe its shares is called _________.
(a) share certificate
(b) minutes book (c) prospectus (d) regret letter
5. Bills Payable is ___________.
(a) Long term loan
(b) Liquid asset (c) Net Loss (d) Current Liability
(D) State whether the following statements are True or False:- 5
1. Equity Shareholder enjoys preferential rights.
2. Returns Inward is deducted from sales. 3. Retirement of a partner leads to dissolution of the firm unless otherwise agreed upon. 4. Realisation Loss is not transferred to insolvent partner’s capital account. 5. Single entry system is based on certain rules and principles.
(E) From the following details prepare the format of Bill of Exchange:- 5
Drawer : Mr. Piush Pawar, Patel Road, Parner
Drawee : Ms. Ragini Rastogi, Ramnagar, Raipur Payee : M/s. Soham Surgicals, Satnam Marg, Satara Date of bill : 5th December 2017 Date of acceptance : 6th December 2017 Duration : 60 days Amount : ` 18,000
3727/Page 2 2. Nidhi provides following information for his business under Single Entry System:- As on 1.4.2016 As on 31.3.2017 Particulars ` ` Debtors 24,000 36,000 Creditors 15,000 18,000 Stock 16,200 21,500 Cash & Bank 13,800 20,500 Tools 8,000 8,000
Additional Information:- 1. Depreciate Tools at 10% p.a. 2. Write off bad debts ` 1,000. 3. Additional Capital introduced during the year was ` 10,000. 4. Drawings during the year were ` 16,000. 5. Stock was found to be undervalued by ` 3,000 on 31.03.2017
You are required to prepare:-
1. Statement of Affairs as on 1st April 2016 2. Statement of Affairs as on 31st March 2017 3. Statement of Profit/Loss for the year ended on 31st March 2017 8
OR
2. (A) What are Common Size statements? 4
(B) Write any four objectives of Financial Statement Analysis. 4
3. Following is the Balance Sheet of Karun & Varun who were sharing profits & losses in the ratio 3:2:-
3727/Page 3 P.T.O. On 1st April 2017 Arun was admitted to the firm on the following terms :- 1. The new profit sharing ratio will be 3:1:1. 2. Arun should bring ` 30,000 as his share of goodwill in the firm and ` 40,000 as his capital. 3. Building be valued at 90% of its book value. 4. Machinery & Stock to be reduced by 5% & 10% respectively. 5. Reserve for doubtful debts to be maintained at 5% on debtors.
You are required to prepare :-
1. Revaluation Account. 2. Partner’s Capital Account. 3. Balance Sheet after the admission of Arun. 10
OR
3. Following is the balance sheet of Happy, Lucky and Sad who were partners sharing profits and losses in the ratio 3:1:1:-
Balance Sheet as on 31st March 2016
Liabilities ` Assets ` Capital : Happy 20,000 Machinery 20,000 Lucky 15,000 Furniture 15,000 Sad 10,000 Debtors 15,000 General Reserve 2,500 Cash 5,500 Creditors 8,000 55,500 55,500
Sad died on 31st December 2016.
1. Machinery was to be valued at ` 23,000 & Furniture at ` 14,500. 2. Drawings of Sad to the date of death amounted to ` 6,000. 3. Interest on Capital was to be allowed at 10% p.a. 4. Interest on Drawings was to be charged at 6% p.a. for 9 months. 5. His share of Goodwill to be calculated on the basis of two year’s purchase of last four year’s average profits. 6. His share of profit up to the date of death to be based on the profit of the previous year. 7. Previous Year’s profit figures were:- 2012-13 ` 35,000, 2013-14 ` 30,000, 2014-15 ` 15,000, 2015-16 ` 20,000.
You are required to prepare Sad’s Capital Account showing the amount payable to his legal heir and Give the working of Goodwill & Profit. 10
3727/Page 4 4. On 1st July 2016, Kavya draws a bill for ` 1,00,000 on Mohini for 4 months period. The bill is duly accepted and returned to Kavya. One month after, Kavya discounted the bill with bank at 18% p.a.
On due date, Mohini dishonoured her acceptance. Bank paid noting charges ` 2,250. Mohini requested to renew the bill for further period of 2 months. Kavya agreed and took the bill back from the bank. Kavya received new acceptance for 40% amount of the bill with full amount of noting charges and cheque for 60% balance plus interest at 12% p.a.
Before the due date, Mohini was declared insolvent and 30% of the amount due could be recovered from her private estate.
Write journal of Kavya for the above bill transactions. 10
5. Following is the Balance Sheet of Swaraj, Veeraj and Dhanraj who were partners sharing profits & losses in the ratio 1:2:3. Their Balance Sheet as on 31st March 2017 was as follows:-
Balance Sheet as on 31st March 2017
Liabilities ` Assets ` Capital: Swaraj 4,000 Machinery 14,500 Veeraj 8,000 Furniture 3,500 Dhanraj 13,000 Fixtures 6,000 Contingency Reserve 3,000 Investments 6,000 Worksmen Compenstion Stock 7,500 Fund 1,750 Trade Debtors 4,500 Creditors 7,000 Cash in hand 1,500 Swaraj’s Loan 5,000 Profit & Loss A/c 2,250 Veeraj’s Loan 4,000 45,750 45,750 The firm was dissolved on this date.
1. The assets realized: Machinery ` 10,000, Investments ` 3,500 and Debtors `
3,500. 2. Swaraj took over his loan. 3. Stock was taken over by Veeraj for ` 7,000. 4. Veeraj’s Loan was paid in full. 5. Furniture & Fixtures were taken over by Dhanraj at 10% less than the book value. 6. Realisation expenses amounted to ` 1,450. 7. In addition, an outstanding liability for ` 1,250 was finally settled at ` 1,100 and paid off immediately. 3727/Page 5 P.T.O. 8. Liability towards Worksmen Compensation Fund was settled & paid off at ` 1,000. 9. The Creditors were paid ` 6,000 in full settlement of their claim.
Prepare necessary Ledger Accounts in the books of the firm. 10
OR
5. Chandan Ltd. issued 2,000 5% Debentures of `100 each repayable at the end of the 10th year. Pass journal entries in the books of Chandan Ltd. presuming that:
a. They were issued at 5% discount and redeemable at par.
b. They were issued at par and redeemable at premium of 4%. c. They were issued at 5% discount and redeemable at 4% premium. d. They were issued at 5% premium and redeemable at par. Also give a journal entry for expenses on issue of debentures ` 6,000. 10
6. Following is Receipt and Payment Account of ‘Noble Engineering College’, Satara:-
Receipts & Payment Account for the year ended on 31st March 2017 Receipts ` Payments ` To Balance b/d By Salary: Cash in Hand 7,975 Teaching Staff 4,25,250 Cash at Bank 50,035 Non Teaching Staff 90,500 To Interest on Fixed Deposit 25,500 By Electricity 25,950 To Subscriptions 12,900 By Books 28,900 To Life Membership Fees 10,250 By Furniture 22,500 To Donations 3,18,000 By Stationery 9,975 To Tuition Fees 5,60,000 By 8% Fixed Deposit (31/3/17) 3,75,000 To Term Fees 1,00,450 By Balance c/d To Admission Fees 27,500 Cash in Hand 6,750 To Sundry Receipts 3,465 Cash at bank 1,31,250 11,16,075 11,16,075 Additional Information:- 1. Balances of some of the assets & liabilities were: Particulars 01/04/2016 31/03/2017 Books 2,75,000 2,87,500 Furniture 1,07,500 1,00,000 Building Fund 4,67,500 ? 8% Fixed Deposit 4,00,000 ? Capital Fund 3,73,010 ? 3727/Page 6 2. 50% of Donations are for building fund and the balance is to be treated as revenue income. 3. Outstanding Subscription ` 2,100. 4. Life Membership Fees are capitalized, Term Fees & Admission Fees are to be treated revenue.
You are required to prepare Income & Expenditure Account for the year ended on 31st March 2017 and Balance Sheet as on that date. 12
7. Following is the trial balance of Surendra and Rajendra :-
Trial Balance as on 31st March 2017
Debit Credit Particulars Particulars ` ` Salary 24,000 Sales 2,20,000 Postage 3,500 Sundry Creditors 1,45,400 Opening Stock 47,000 Bills Payable 80,000 Machinery 1,40,000 10% Bank Loan 1,20,000 Advertisement 10,000 (w.e.f. 01/10/2016) Import Duty 4,200 Outstanding Salary 11,800 Bad Debts 2,000 Capital : Surendra 90,000 Purchases 1,97,000 Rajendra 90,000 Sundry Debtors 91,600 Bills Receivable 33,400 Carriage Outward 3,600 Wages 28,000 Printing & Stationery 9,200 Cash & Bank 3,700 Leasehold Premises 1,60,000 Total 7,57,200 Total 7,57,200 Adjustments:- 1. Closing Stock was valued at ` 60,000. 2. Postal Stamps of ` 500 and Stationery of ` 800 remained unused. 3. Goods worth ` 5,000 were distributed as free samples. 4. Leasehold Property is to run for 10 years w.e.f. 1st October 2016. 5. Depreciate Machinery at 10% p.a. 6. Mr. Devendra, our customer became insolvent & could not pay his debt of ` 3,000.
You are required to prepare Trading and Profit & Loss Account for the year ended on 31st March 2017 and Balance Sheet as on that date. 15
