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Sample Question Paper Accountancy

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Sample Question Paper

Accountancy (320)

Time: 3 Hours Maximum Marks: 100


Note:
i. This question paper consists of 47 questions in all.
ii. All questions are compulsory. Internal choices are given wherever required.
iii. Marks are given against each question.
iv. Attempt these questions as per the instructions given for each of the questions.
v. Section A consists of 36 questions from Qu. 1 to 36.
vi. Section B consists of 11 questions from Qu. 37 to 47.
SECTION-A
1. Which of the following transactions is entered into the Journal Proper? (1)
a. Cash Payment to an employee for expenses
b. Cash purchase of goods for resale
c. Correction of an error
d. Credit purchase of goods for resale
2. What will be the effect of the following transaction on the accounting (1)
equation?
Goods sold on credit to Ram (costing ₹ 20,000 for ₹ 25000)
₹25000); Liabilities, (₹ 25000); and Capital, 0
a. Assets, ((₹25000);
b. Assets, (₹ tal, ₹ 5000
( 20000); Liabilities, (₹ 25000), and Capital,
c. Assets, Liabilities and Capital
d. None of these.
3. Error of principle is (1)
a) Credit purchase of machinery is recorded in the purchase book.
b) Credit purchase of machinery is recorded in the journal proper.
c) Credit purchases of goods are recorded in the purchase book.
d) None of these
4. After providing the trial balance the accountant finds that the total of debit (1)
side is short by Rs 2500. This difference will be
a) Credited to suspense account
b) Debited to suspense account
c) Adjusted to any of debit balance account.
d) Adjusted to any of credit balance account
5. Which of the following is not an item of income of non trading concerns?
non-trading (1)
a) Entrance fees b) Interest
c) Government aid d) Salary
6. The trial balance of firm shows Debtor ₹ 40,000, Bad debts ₹ 200 and (1)
Provision for doubtful debts at ₹ 1400. A 5% provision for doubtful debts is
to be created on debtors. The amount of debtors to be shown on Assets
a) ₹ 36400 b) ₹ 38000
c) ₹ 41200 d) None of these
7. Out of the following items, which is shown in the ‘Receipts and Payments (1)
A/c’ of not-for-profit
profit organization
a) Subscription in received in advance
b) Last year subscription received
c) Current year subscription received
d) All of these
8. At the time of dissolution of partnership an unrecorded asset taken by Ram a (1)
partner is debited to:
a) Ram Capital account b) Realisation account
c) Cash account d) None of these
9. (1)
Ram, Sita and Geeta are equal partners. Ram and Sita died in a car accident;
this accident results in?

a. Dissolution of partnership
b. Dissolution of firm
c. Dissolution of partnership as well as firm
d. None of the of the above
10. Which account is used for the revaluation of assets and reassessment of (1)
liabilities?
a. Reassessment account
b. Revaluation Account
c. Asset Account
d. Liabilities Account
11. Super Profit = Actual Profit – ................. (1)

a. Simple Profit
b. Average Profit
c. Normal Profit
d. Actual Average Profit
12. i) The discount on re issue of forfeited shares is debited to ____ account
re-issue (1)
a) Share capital b) Share forfeited
c) Bank d) Discount on issue of share
shar
13. i) When shares are forfeited, the Share Capital account is debited with: (1)
a. Nominal value of shares b. up value of shares
Called-up
c. Paid-up
up value of shares d. Market value of shares

14. i) If a share of ₹ 10 is issued at a premium of ₹ 3 on which the full amount (1)


has been called and ₹ 8 (including premium) paid is forfeited the capital
account should be debited with :
a) 5 b) 8 c)10 d)13
Fill in the blanks: (1x2)
15 A mathematical expression, which shows that the ____ and ____ are equal,
is known as the accounting equation.
16 Give one word answer for the following: (1x2)
i. In which basis of accounting, income statement will show relatively
higher income if there are items of prepaid expenses and accrued income.
ii. Another name for Journal is
17 Complete the following sentence:
sentence (1x2)
On the basis of impact on ledger accounts errors can be____ and ____
18 Give one word answer to the following: (1x2)
(i) Wrong totaling of account is
(ii) Software that are developed not for any specific user but for
the users in general is known as
19 Give one word answer (1x2)
i. In which condition a partnership firm is deemed to be dissolved?
ii. The credit balance of Revaluation account shows
20 Fill in the blanks: (1x2)
i. The firm is dissolved by ............... when a partner becomes of unsound
mind.
ii. The terms and conditions of retirement of a partner are normally provided
in the...............
21. Write the names of affected accounts in the following transactions
transactions: (1x4)
(i) Furniture purchased from Shahrukh
(ii) Commission paid by cheque
(iii) Started business with cash
(iv) Credit purchases of goods
22. Give a name of the accounting error for the following transactions (1x4)
i. Purchase of Furniture is entered in the Purchase Book
ii. Sales Book is totalledRs.25,000 instead of its ` 25,600.
iii. Repairs of building is debited to Building A/c
iv. Ankita ‘s A/c was to be debited by `Rs. 4500 and Nikita’s A/c was to
be debited by Rs.5500 while Ankita’s A/c was debited by Rs. 5500
and that of Nikita’s A/c by Rs.4500.
23. Give one word answer to the following questions: (1x4)
(i) The manager is entitled to a commission of 10% on Net profit
after charging such commission. If Net profit is Rs 110000,
calculate the manager’s commission.
(ii) The amount by which debit side exceeds the credit side of Profit
& Loss A/c is shown as?
(iii) Subscription of Rs. 3,200 has been received for 2020 and Rs
550 for 2021. How much amount will be shown as subscription
received in the Receipts & PaymentsAccount for 2020?
(iv) From which side of R eceipts and Payments A/c is taken the
Receipts
item of entrance fees to the credit of Income and Expenditure
A/c?
24. Give onee word answer of the following :
(i) When a company receives applications for more number of (1x4)
shares than offered for subscription it is a case of?
(ii) shares are issued to the promoters of the company in lieu of
the services provided by them during the incorporation of the
company. The issue price of these shares is normally debited
to which account?
(iii) in which fund, the balance of the reserve and
an surplus,
whether positive or negative, should be reflected.
(iv) 250 shares of Rs 10 each issued at a premium of Rs 4 per
non payment of call money, of Rs 2 per
share forfeited for non-payment
share premium as called with allotment is paid.
25 Explain the concept of operating profit with the help of an example. (2)
26. (i) State the meaning and any two factors affecting Goodwill. (2)
OR
(ii) In what circumstances, a firm is dissolved by the agreement.
27. (i) Explain the meaning of gaining ratio with its formula. (2)
OR
(ii) Differentiate between Dissolution of Partnership and Dissolution of
Partnership Firm.
28. i. What is over subscription? (2)
OR
ii. What is nominal value? Enumerate the different ways of issue of shares
29. i. Explain the steps to convert incomplete records to complete records. (3)
OR
ii. What do you mean by abnormal loss? Also, explain the adjustment entries
of it.
30. Calculate cost of goods sold and gross profit from the following (3)
information.
Particulars Amount (₹)
Sales 125000
Sales return 1000
Opening stock 12800
Purchases 64000
Direct expenses 8400
Closing stock 14400

Subscription received during the year 2021 -20,000


Subscription outstanding as on 31st December 2021 -1,500
Subscription received in the year 2020 on account of year 2021 -600
Subscription received in the year 2021 for outstanding amount of the year
2020- 200
Subscription received in the year 2021 for the year 2022-
2022 1000
Calculate the amount of subscription re ceived to be shown in the Income
received
and Expenditure Account for the year adding 31st Dec, 2021.
31. i. Explain the accounting treatment of goodwill on retirement of a partner.
partner
OR
ii. What will be the treatment of Accumulated Reserves and Profit/Loss on (3)
the date of dissolution
dissolution.
32. State the meaning of forfeiture of shares. What will be the consequences of (3)
forfeiture of shares.

33. i. Explain the procedure of allotment of shares on pro rata basis.


pro-rata (3)
OR
ii. What is meant by ‘Shares Issued at Premium? State the purpose for which
Premium can be utilized.
34. i. From the following Trial Balance of M/s Vihaan Brothers prepare Trading (5)
and Profit and Loss Account for the year ended 31st March 2017 and
Balance Sheet as on that date.
Particulars Dr balance Particulars Cr balance
Cash in hand 1000 Capital 140000
Motor car 50000 Discount 4000
Received
Drawings 96000 Sales 4,60,000
Legal charges 3000 Creditors 92000
Plant & 120000 Interest on 10400
Machinery Investment
Investment 80000 Purchase return 7600
Opening stock 70000 Bills payable 68000
Sales Return 5000
Salaries 24000
Discount 1200
Received
Carriage Inward 3600
Wages 42000
Postage 800
Debtors 120000
Interest 3000
Insurance 2400
premium
Purchases 160000
782000 782000
Closing stock as on 31.3.2017 Rs 56,000

OR
ii. The following is the Receipts and Payments Account of Help AID
Society of India for the year ended 31st December, 2021.

Receipts and Payments A/C


Receipts Amount Payment Amount
Balance b/d 8400 Salaries 12000
Subscriptions 7800 Rent 6000
Entrance fees 600 Purchase of 28000
Vans
Government 32000 Expenses of 8400
Grant motor vans
Donation for 25000 Laundry 5200
Building Fund Charges
Interest Received 2800 Drugs and 10000
incidental
charges
Publicity 4000
expenses
Balance c/d 3000
76600 76600
Additional Information
1. Subscription outstanding amounted to Rs.2,500
2. Interest accrued but not received Rs 600
3. Salary outstanding is Rs 1,200
4. Provide depreciation on Motor Van @ 20%
Prepare Income & Expenditure A/c.
35. Ram, Shyam and Mohan are partners sharing profits and losses in the ratio (5)
of 3: 3: 2. Their balance sheet as on 31st March 2017 was as follows:
Liabilities Amount Assets Amount
Sundry creditors 1,20,000 Cash at bank 1,85,000
General Reserve 1,80,000 Sundry Debtors 2,20,000
Capital accounts Stock 6,00,000
Ram 10,00,000
Shyam 7,50,000
Mohan 7,50,000
Machinery 7,95,000
Building 10,00,000
28,00,000 28,00,000
Partners decided that with effect from 1st April 2017, they would share
profits and losses in the ratio of 4: 3: 2.
It was agreed that:
i. Stock be valued at Rs5,50,000
ii. Machinery is to be depreciated by 10%.
iii. A provision for doubtful debts is to be made on debtors @5%.
iv. Building to be appreciated by 20%.
v. A liability for Rs 12,500 included in sundry creditors is not likely
to arise. Partners agreed that the revised values are to be recorded
in the books. They do not, however want to distribute the general
reserve.
partners and the revised balance
You prepare capital accounts of the partners
sheet.
36. i. M/s ABC Ltd. was registered with a capital of Rs 10,00,000 divided into (5)
equity shares of Rs 100 each. The company offered to public 5000 shares at
a premium of Rs 20 per share. The amount on shares was payable as:
Rs 25 on application
Rs 50 (including Rs 20 premium) on allotment
Rs 20 on first call and Rs 25 on final call.
Applications were received for 7500 shares. Shares were allotted to the
applicants on prorata basis. X’s who was allotted 50 shares did not pay the
allotment money. He also failed to pay the first call. His shares were
forfeited. Y's holding 20 shares did not pay the first call. Final call was not
made. Make journal entries in the books of the company.
OR
w capital of ₹ 900000 divided into 9000
ii. B Products Ltd. registered with
equity shares of₹
of₹ 100 each. The company issued prospectus inviting
applications for 5000 equity shares of ₹ 100 each payable as
₹ 20 on application,
₹ 30 on allotment,
call. Applications were
₹20 on first call and balance on second call.
received for ₹ 4000 shares. Rohit to whom 160 shares were allotted
failed to pay final call money and these shares were forfeited. Of the
forfeited shares, 60 shares were reissued to Sukhi credited as fully
paid for ₹ 90 per share. Makee Journal entries. Prepare an extract of
the balance sheet.

Section-B

Attempt any one of the Optional Module


OPTIONAL MODULE-1
37. Which of the following transactions will improve the quick ratio? (1)
a. Sale of goods for cash b. Sale of goods on credit
c. Issue of new shares for cash d. All of these
38. Which of the following is an example of Cash outflow from financing (1)
activities?
a. Issue of Debentures b. Issue of Equity
c. Payment
nt of dividends to shareholders d. Issue of preference
39. Which one of the following is an example of an extra ordinary Items (1)
a. Loss from earthquake b. Normal loss
c. Loss by theft d. Income tax
40. Cash balance ₹ 15000: Trade Receivables ₹ 35000; Inventory ₹40000; Trade (1)
Payables ₹ 24000 and Bank Overdraft is ₹ 6000. Current ratio will be:
a. 3.75:1 b. 3:1
c. 1:3 d. 1:3.75
41. Opening Inventory ₹ 100000; Closing Inventory ₹ 150000; Purchases ₹ (1)
60000; Carriage ₹ 25000; wages ₹ 200000. Inventory Turnover Ratio will
be.
a. 6.6 times b. 7.4 times
c. 7 times d. 6.2 times
42. Provision for taxation is an example of which expense?
expe (1)
a. Non Operating b. Operating
c. Cash flow d. Cash Outflow

43. Complete the following sentences: (1x2)


(i) Liquid ratio means liquid assets divide by
(ii) Prepaid expenses are an example of
44. What do you mean by Operating and Investing activities as per Cash flow (2)
statement?
45. Equity Ratio from the following data: Long term debts = ₹ (2)
Calculate Debt--Equity
50000 and Shareholder fund ₹ 150000

46. Explain the accounting treatment of interim dividends in cash flow (3)
statement.
47. Following are the Balance sheets of A Ltd. Prepare Cash Flow Statement. 5
Particulars Note 31st March 31st March
no 2017 2016
EQUITY AND LIABILITIES
1. Shareholders’ funds
a. Share Capital
b. Reserves and Surplus 250000 200000
2. Current Liabilities 23000 10000
Trade payables
Total 45000 70000
318000 318000
II. Assets
1. Non-Current
Current Assets
Fixed assets - Tangible 66000 50000
Assets (Land)
2. Current assets
a. Investment 90000 80000
b. Trade receivables 115000 12000
c. Cash and Cash Equivalents 47000 30000
Total 318000 280000
Note to Accounts
Particulars 31st March 31st March
2017 2016
1.Reserves and Surplus i.e., Balance in
i
Statement of Profit & Loss 23000 10000
2.Calculate gross profit ratio and net profit ratio from the following
figures. Revenue from operations (Sales) Rs. 1,50,000
Cost of revenue from operations Rs. 1,20,000
Operating expenses Rs. 12,000
OPTIONAL MODULE -2

37. What is DBMS? (1)


a. Collection of queries b. High level language
c. Programming language d. Stores, modifies and retrieves data

38. ____ Is one of the popularly used Data Base Management System to (1)
create, store and manage database.
a. Ms word b. Ms dance
b. Ms pain d. MS Access

39. Which of the following is not an example of DBMS? (1)


a. MySQL b. MSAccess
b. IBMDB2
DB2 d. Google

40. After collecting and analyzing all requirements of an organization, a (1)


Conceptual diagram is developed for the database known as
diagram
a. EN diagram b. ET diagram
c. ER diagram d. None of these
41. Pie chart don’t have more than categories: (1)
a) Ten b)Twenty Five
c)Seven d) Three
42. The default extension of MS Access(2007) file is:
is (1)
a).accbd b).exl
b)
c).doc d).exe

43. Complete the following sentence-


sentence (1x2)
Relationship between tables is established with the help of _____ key and
______ key

44. What do you mean by Charts and State any two basic elements of it. (2)
45. Explain OLE object. (2)

46. Explain the various items of deductions used in payroll accounting. (3)

47. Create an imaginary accounting database for a company using MS Access - (5)
2007.
Accountancy (320)
Suggestive Marking Scheme
Ques Details Notes Marks
No.
Section-A
1 C --- 1
2 D --- 1
3 A --- 1
4 A 1
5 D 1
6 B 1
7 D 1
8 A 1
9 C 1
10 A 1
11 A 1
12 B 1
13 B 1
14 C 1
15 (i) Liabilities and assets --- 1x2
16. (i) Accrual Basis --- 1x2
(ii) Original book of entries/Primary Book of entries
17 (i) One sided error and two-sided
two errors --- 1x2
18 (i) Error of Commission --- 1x2
(ii) Readymade Software
19 (i) On retirement of a partner 1x2
(ii) Gain/Profit
20 (i) Court 1x2
(ii) Partnership Deed
21 (i) Furniture A/C and Shahrukh A/C --- 1x4
(ii) Commission A/C and Bank A/C
(iii) Cash A/C and Capital A/C
(iv) Goods A/C and Creditors A/C
22 (i) Principle Error 1x4
(ii) Commission Error
(iii) Principle Error
(iv) Compensating Error
23 (i) 10000 1x4
(ii) Net Loss
(iii) 3750
(iv) Receipts
24 (i) Over subscription 1x4
(ii) Goodwill A/C
(iii) Sahreholders’s fund
(iv) Credited by Rs 2000
25 Operating profit is the excess of gross profit over operating expenses. Gross Profit is the
excess of net sales revenue over cost of goods sold. Operating expenses includes office 2
and administration expenses, selling and distribution expenses, cash discount allowed,
interest on bills payable and other short-term
short debt, bad debts and so on.
26(i)  Goodwill is the value of the reputation of a firm in respect of the profit earned in 2
future over and above the normal profit.
 Factors affecting Goodwill-
Goodwill Location and Nature of business
(ii) A firm is dissolved when
 all the partners give consent or
 as per the terms partnership agreement
27(i) The ratio in which retiring partner’s share is distributed amongst continuing partners is 2
known as gaining ratio.
Gain of a partner is New Ratio – Existing Ratio Gain of an exising partner = His New
Share - His Existing (old) Share
(ii) Dissolution of a firm means that the firm closes its business and comes to an end. While
dissolution of a partnership means termination of old partnership and a reconstitution of
firm due to admission, retirement and death of a partner. In dissolution of a partnership thet
remaining partners may agree to carry on the business under a new agreement.
28(i) When company receives applications for more number of shares than the number of shares 2
offered to the public for subscription it is a case of over subscription. A company
comp cannot
allot more shares than what it has offered.
(ii)  Face value of a share is the par value of the share. It is also known as the Nominal
value or denomination of a share
 (i)For consideration other than cash
(ii)For cash
29(i) The steps involved in conversion are : 3
i. Prepare Cash and Bank Summary
ii. Prepare Total Debtors Account to ascertain the missing information
iii. Prepare Bills Receivable Account to ascertain the missing information
iv. he missing information
Prepare Total Creditors Account to ascertain tthe
v. Prepare Bills Payable Account to ascertain the mising information
vi. Prepare Opening Statement of Affairs to find out capital in the beginning.
vii. Now, prepare Trading Account, Profit and Loss Account and Balance Sheet
from the various information given in the question and from the computation
made as above.
viii. Before preparing the Financial Statements, Trial Balance may also be prepared
to check the arithmetical accuracy.
(ii) Abnormal losses occur because of fire, earthquakes or accidents. These may destroy some
fixed assets of the firm. In such case an Asset Account is credited and the Profit and Loss
Account is debited. The debit may be spread over two or three years.

Stock of goods may also be destroyed or damaged by fire, or other causes. It is obvious
that because of this, the value of the stock will be lower than otherwise. This will reduce
the amount of gross and net profit. It is, however, better to ascertain the gross profit which
would have been earned without the loss since this enables the firm to judge its trading
operations properly. To nullify the effect of loss of stock, the Trading Account is credited
with the cost of the goods destroyed. If the goods destroyed are not insured then the cost
price of the goods destroyed is debited to Profit and Loss Account. If the goods are
insured, then the claim admitted by the insurance company is deducted and the claim not
admitted is debited to the Profit and Loss Account.
The adjusting entries are as follows :
(i) Accidental Loss of Stock A/c or Loss by Fire ...Dr. [Total Value of Abnormal
Loss]
To Trading A/c
(ii) Insurance Claim or Insurance Co. ...Dr. [Amount of Insurance Claim] Profit and
Loss A/c ...Dr. [Value of Irrecovered
Ir Loss]
To Accidental Loss of Stock A/c [Total Value of Abnormal Loss] Insurance
Company’s Account will be shown as an asset in Balance Sheet
Note : If stock is not insured, following entry will be passed.
Profit and Loss A/c ...Dr. [Total Value of Abnormal Loss]
To Trading A/c
30 Net sales (Sales-Sales
Sales Returns i.e., 125000 – 1000) 124000 3
Less : Cost of goods sold
Opening Stock 12800
Add Purchases 64000
Add Direct Expenses 8400
Less : Closing Stock (14400) 70800
Gross Profit 53200
Or
Gross profit = Net sales – cost of goods sold = 124000 – 70800= 53200
31 (i) In case of retirement of a partner, the goodwill is adjusted through partner’s capital 3
accounts. The retiring partner’s capital account is credited with. his/her share of goodwill
The journal entry
and remaining partner’s capital account is debited in their gaining ratio. The
is made as under:
Remaining Partners’ Capital A/c Dr. (individually)
To Retiring Partner’s Capital A/c
(Retiring partner’s share of goodwill adjusted to remaining partners in the gaining ratio)
Normally the goodwill is not shown in the books of the firm. If at the time of retirement/
death of a partner, goodwill appears in the Balance Sheet of the firm, it will be written off
by debiting all the partners’ capital accounts in their existing profit sharing ratio and
crediting the goodwill account.
In such a case, the following journal entry is made:
Partners’ Capital A/c Dr (including retiring partner’s capital A/c)
To Goodwill A/c
 (Existing goodwill written-off)
written
(ii) Any balance of accumulated reserves (e.g. general reserves), Profit and Loss Account
(Cr.), Reserve Fund and other reserves on the date of dissolution will be credited to the
Partners’ Capital accounts on the basis of profit sharing ratio. The following journal entry
will be recorded :
Profit and Loss A/c Dr.
General Reserve A/c Dr.
Any Other Fund Dr.
To Partners’ Capital A/c (Individually)
(Transfer of profit and reserve)
32  Forfeiture of shares means cancellation of membership of a shareholder due to non 3
payment of calls made by the company.
 Forfeiture of shares amount to
 Cancellation of the membership of the defaulting shareholder and
Reduction of share capital of the company.
33(i)  In case the shares being over subscribed one of the scheme of allotment of shares 3
to applicants is to allot in the ratio of shares for which applications are entertained
by the company for allotment and the number of shares company has offered for
subscription.
tion. This is called allotment of shares on pro
pro-rata basis.
 In case of pro-rata
rata allotment the excess money received on applications is
transferred to Share Allotment A/c from Share Application A/c.
In case a shareholder fails to make payment on allotment and call money of shares held by
him/her, the unpaid amount will be calculated as under: (i) Number of shares applied for
allotment = Total Share Allotted Total No. of Shares Applied×Shares Alloted to Defaulter
(ii) Excess Applications Received = Number of of shares applied for (as per step) – number
of shares allotted (iii) Excess application money received = Excess number of applied
shares × money called per share on application. (iv) Amount unpaid on allotment =
Amount due on allotment – Excess application money adjusted towards allotment
(ii)  If a company issues its shares at a price more than its face value, the shares are said
to have been issued at Premium.
 According to Section 78 of this Act, the amount of premium can be utilised for :
(i) Issuing fully-paid
paid bonus shares
(ii) Writing off preliminary expenses, discount on issue of shares and
debentures, underwriting commission or expenses on issue;
(iii) Paying premium on redemplion of Preference shares or Debentures;
By Back of Shares.
34(i) Trading A/c 5
for the year ended 31st March, 2017
Particular Amount Particular Amount
Opening stock 70000 Sales 4,60,000 455000
Less Sales return 5000
Purchases 80000 152400 Closing stock 56000
Less purchase return
7600
Wages 42000
Carriage inward 3600
Gross profit 243000
transferred to Profit
& Loss a/c
511000 511000

Profit & Loss A/c


For the year ended 31st March, 2017
Particular Amount Particular Amount
Salaries 24000 Gross Profit 243000
transferred from
Trading A/c
Insurance premium 2400 Discount received 4000
Discount allowed 1200 Interest on Investment 10400
Postage 800
Interest 3000
Legal charges 3000
Net profit Transferred 223000
to Capital A/c
257400 257400

Balance sheet
As on 31st March 2017
Liabilities Amount Asset Amount
Bills payable 68000 Cash in hand 1000
Creditors 92000 Debtors 120000
Capital 140000 Closing stock 56000
Add Net profit Investment 80000
223000

Less drawings 96000


267000 Motor car 50000
Plant & Machinery 120000

427000 427000
34(ii) Books of Help AID Society of India
Income & Expenditure A/c for the year ending December 31, 2021
Receipts and Payments A/C
Expenditure Amount Income Amount
Salaries 13200 Subscriptions 10300
12000 7800

Add: Outstanding Add: Outstanding


1200 2500
Rent 6000 Entrance fees 600
Expense of Motor Van 8400 Government Grant 32000
Laundry Charges 5200 Interest 3400
2800

Add: Interest Accrued


600
Drugs and incidental 10000 Deficit i.e., Excess of 6100
charges expenditure over
income
Publicity expenses 4000
Depreciation on 5600
Motor Van
52400 52400
35 Capital accounts 5
Particular Ram Shyam Mohan Particular Ram Shyam Mohan

To 7500 By Bal b/d 10,00,000 7,50,000 7,50,000


Shyam’s
Capital/c
To 5000 By 27000 27000 18000
Mohan’s Revaluation
capital a/c
a/c

To bal 1014500 784500 773000 By Ram’s 7500 5000


c/d capital a/c

1027000 784500 773000 1027000 784500 773000

Balance sheet
As at 1st April 2017
Liabilities Amount Assets Amount
Sundry 107500 `Cash at bank 1,85,000
creditors
General 1,80,000 Sundry Debtors 2,09,000
Reserve 2,20,000
Less Provision
for doubtful
debts 11000
Capital Stock 5,50,000
accounts
Ram
1014500
Shyam
784500
Mohan
773000
Machinery 715,500
Building 12,00,000
28,59,500 2859500
36(i) M/s ABCLtd 5
Journal Entries
Date Particular L.F.no Debit Credit
1. Bank A/c Dr. 187500
To Share Application A/c
(Application money received) 187500
2. Share Application A/c Dr 187500
To Equity Share Capital A/c
To Share Allotment A/c
(Application money of 5000 125000
share transferred to share 62500
Capital A/c on their allotment
and remaining adjusted
towards shares allotment)
3. Share Allotment A/c Dr. 250000
To Equity Share Capital A/c
15,0000
To Securities Premium A/c
100000
(Allotment money due
including premium)
4. Bank A/c Dr. 185625
To Share Allotment A/c 185625
(Allotment money received)
5. Share First Call A/c Dr. 100000
To Equity Share Capital A/c 100000
(First call money due)
6. Bank A/c Dr. 98600
Call-in-arrears
arrears A/c Dr. 400
To Share First Call A/c
99000
(First call money received of
4930 shares of 20 share debited
to calls-in-arrears
arrears A/c)
7. Share Capital A/c Dr. 3750
Securities Premium A/c Dr. 1000
To Share Forfeited A/c
To Share Allotment A/c 1875
To share First Call A/c 1875
(Forfeiture of 50 shares on non 1000
payment of allotment and call
money)

(ii)
Extract of Balance sheet of B Products Ltd.
As at ….
Particular Note no. Rs
1. Equity and liabilities 1
1. Shareholder’s fund
a. Share capital 397000
Note Particulars Amount
No.
1. Share capital 900000
Authorized capital
9000 Equity shares of Rs 100 each
Issued capital 500000
5000 equity shares of Rs 100 each
Subscribed Capital
Subscribed and fully Paid capital
3900 Equity shares of Rs 100 each
390000
Add : forfeited shares ( 100 of Rs 70
each ) 70000 390000

Optional Module-1
37 A 1
38 C 1
39 A 1
40 D 1
41 B 1
42 A 1
43. (i) Current liabilities 1x2
(ii) Fictitious Assets
44  (a) Operating activities are the principal revenue generating activities of the 2
enterprise.
 (b) Investing activities include the acquisition and disposal of long term assets and
long-term
other investments not included in cash equivalents.

45(i) Debt equity Ratio = 2


Debts ( Total Long Term Loans) / Equity(Shareholders Fund)
= 50000/150000
= 1:3
46  The following procedure is followed 3
(a) The amount of interim dividend paid during the year is shown as outflow of
cash in cash flow statement.
(b) It will be added back to the profits for the purpose of calculating cash provided
from operating activities.
(c) No adjustment is necessary if the cash provided from operating activities is calculated
on the basis of revised figure of net profit.
47(i) A Ltd 5
Cash flow Statement
For the year ended 31st March, 2017
Particular Rs Rs
Cash flow from operating activities
Profit for the year ( difference between
closing and opening surplus, i.e. Balance
in Statement of Profit and Loss ) ( Rs
23000 – Rs 10000) 13000
Add : decrease in Current Asset and
increase in Current Liabilities 5000
Decrease in Trade Receivables 18000

Less : Increase
se in Current Asset and
Decrease in Current Liabilities :
Increase in Inventories ( 10000)
Decrease in Trade Payables (25000) (35000)
Cash used in Operating activities (17000)

Cash flow from Investing activities


Cash payment for Land Purchased (16000)
Cash used in Investing activities (16000)

Cash flow from financing activities

Cash proceeds from Issue of shares 50000


Cash flow from financing activities 50000

Net increase in Cash and Cash 17000


Equivalents
Add: Cash and Cash equivalents in the 30000
beginning

Cash and cash Equivalents at the end 47000


Optional Module-2
Module
37 C 1
38 B 1
39 B --- 1
40 C --- 1
41 C 1
42 A 1
43. Primary and foreign 1x2
44 A Chart/graph is a pictorial presentation of data. 2
basic elements of the chart.
1. The chart area : The entire chart including all elements.
2. The plot area: In a 2-D
D chart, the area is bounded by the X and Y axis. In a 33- D
chart, the area is bounded
unded by the three (X, Y and Z) axis.
Any two
45 Stands for Object Linking and Embedding, Refers to object such as photograph, bar code, 2
image or any other document created in another application
46  Professional Tax (Applicable in some states) (PT): It is a statutory deduction 3
according to the legislature of the State Government.
 Provident Fund (PF): It is a statutory deduction, as part of social security. It is
decided by the Government under the Provident Fund Act and is computed as a
percentage of (Basic Pay + Dearness Pay, if applicable).
 Tax Deduction at Source (TDS): It is a statutory deduction, which is deducted
monthly towards Income Tax liability of an employee. It is essentially an
apportionment of yearly Income Tax liability over 12 months.
 Recovery of Loan Installment (LOAN): Any amount signified by the employee for
deduction
duction on account of any loan taken up by him/her.
47(i) 1. Create file Accounting Transaction 5
2. Create Table1, Table 2 and Table 3 and save as Account type, Accounts and Vouchers
respectively.
3. In the design view, define the data fields and fill in the data in the tables.
4. Establish a relationship between tables.
5. Create query and Generate Reports

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