Accountancy March 2006 Eng
Content
Total No. of Questions : 21
Code No. March / April, 2006
30-NS
ACCOUNTANCY
Time : 3 Hours ( English Version ) SECTION – A Answer any eight questions, each carrying two marks. 1. 2. 3. 4. 5. 6. State any two features of Single Entry System. What is partnership ? What is Revaluation account ? Give the Journal entry for realisation expenses paid on dissolution of firm. State any two types of shares of a public company. Under what headings are the following items shown in the company's Balance sheet ? a) b) 7. 8. 9. Share premium Preliminary Expenses. 8 × 2 = 16 Max. Marks : 90
What is Depreciation ? State any two features of Receipts and Payments Account. What is manual accounting ?
10. What is master file ? SECTION – B Answer any three questions, each carrying six marks. 3 × 6 = 18
11. Savitha, a partner withdrew Rs. 1,000 on 1st of every month for the half year ending 30th June, 2004. Calculate the interest on drawings at 6% p.a. under product method. 12. Kiran, Naveen and Sunil are partners sharing profits and losses in the ratio of 2 : 2 : 1. Kiran retires. His share is taken over by Naveen and Sunil in the ratio of 3 : 2. Calculate the new profit and loss sharing ratio.
13. X, Y and Z are partners sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as on 31. 12. 2004 was as follows : Liabilities S. Creditors Bills payable Reserve fund Capitals : X Y Z 20,000 20,000 10,000 Rs. 20,000 6,000 24,000 Cash Debtors Stock Furniture Machinery Assets Rs. 6,000 24,000 20,000 10,000 40,000
1,00,000
1,00,000
X died on 31st March, 2005 and his executors were entitled for : a) b) c) His capital balance as on the date of last Balance Sheet. His share in Reserve fund. His share of Goodwill. The Goodwill of the firm was valued at Rs. 36,000. d) His share of accrued profit calculated on the basis of last year’s profit. The profit of last year was Rs. 18,000. e) Interest on capital upto the date of death at 6% p.a.
Show X’s Capital account. 14. Anand Company Limited forfeited 1,000 shares of Rs. 10 each for nonpayment of 1st call at Rs. 2 per share and final call at Rs. 2 per share. These shares were forfeited and reissued as fully paid at Rs. 7 per share. Give the necessary Journal Entries. 15. State the disadvantages of computerised accounting.
SECTION – C Answer any four from the following questions, each carrying fourteen marks : 4 × 14 = 56
16. Manu kept his books under Single entry system and provides you the following information : Particulars 1. 1. 2005 Rs. 6,000 3,000 — 20,000 16,000 10,000 — 50,000 14,000 — 31. 12. 2005 Rs. 8,000 4,000 2,000 25,500 20,000 10,000 4,000 50,000 16,000 30,000
Cash at Bank B/R B/P Debtors Creditors Furniture Investments Buildings Stock Motor car ( 30. 6. 2005 )
During the year, Manu withdrew Rs. 5,000 for personal use. He also paid Rs. 2,000 as medical expenses for his son and introduced additional capital of Rs. 8,000. Adjustments : a) b) c) d) Depreciate Furniture and Motor car at 10% P.A. Appreciate building by 20%. Of the debtors Rs. 500 is irrecoverable and provide R.B.D. at 5% on debtors. Rent due but not paid Rs. 1,000 and interest due but not received Rs. 400. Prepare : i) ii) Statement of Profit or Loss Revised Statement of Affairs.
17. Rajesh and Ramesh are partners sharing profits and losses in the ratio of 2 : 1. Their Balance Sheet as on 31. 12. 2005 was as follows : Balance Sheet Liabilities Creditors Bank loan Reserve Profit & Loss a/c Capitals : Rajesh Ramesh 90,000 70,000 Rs. 50,000 20,400 15,000 15,000 Cash Vehicles Bills receivable Debtors Less : Reserve Stock Furniture Machinery 70,000 4,000 66,000 62,000 20,000 60,000 Assets Rs. 2,400 30,000 20,000
2,60,400 Kiran is admitted into partnership on the following terms : a)
2,60,400
He should bring Rs. 80,000 as capital for 4 th share and Rs. 30,000 towards goodwill.
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b) c) d) e) f)
Goodwill is withdrawn by the old partners. Machinery is depreciated by 10%. Furniture is written down by Rs. 2,000. Increase R.B.D. by Rs. 2,400. An amount of Rs. 4,400 due to a creditor, is not likely to be claimed and hence to be written off.
Prepare : i) ii) Revaluation account Partners' Capital accounts and
iii) New Balance Sheet.
18. On 1.1.1996 a firm purchased a machinery costing Rs. 30,000. On 1. 7. 1998 it sold a part of the machinery costing Rs. 12,000 ( on 1. 1. 1996 ) for Rs. 8,800 and on the same date a new machinery was purchased for Rs. 15,000. Depreciation was to be charged annualy at 10% p.a. on the diminishing balance method. Show the Machinery Account and Depreciation Account for the first four years. 19. Anitha and Sunitha are partners sharing profits and losses equally. Their Balance Sheet as on 31. 12. 2004 was as follows : Liabilities Bills Payable Creditors Anitha's loan Vanitha’s loan Reserve fund Capitals : Anitha Sunitha 50,000 50,000 Rs. 6,000 20,000 5,000 5,000 30,000 B/R Debtors Less : R.B.D. Stock Investment Furniture Machinery Buildings 1,66,000 28,000 2,000 26,000 40,000 12,000 14,000 20,000 40,000 1,66,000 Assets Cash at Bank Rs. 10,000 4,000
On the above date the firm was dissolved. a) The assets realised as follows : Bills Receivable Stock Building b) c) Rs. Rs. Rs. 3,800 39,000 50,000 Debtors Machinery Rs. Rs. 25,800 19,000
Investment was taken over by Anitha at Rs. 10,000 and furniture was taken over by Sunitha at Rs. 12,000. Dissolution expenses Rs. 2,600.
Prepare : i) ii) Realisation Account Partners' Capital Accounts
iii) Bank Account.
20. Following is the Balance Sheet and Receipts and Payments Account of Hosanagar Sports Club, Hosanagar. Balance Sheet as on 31. 12. 2000 Liabilities Outstanding Salary Capital Fund Rs. 2,000 32,500 Assets Cash balance Outstanding subscription Sports materials Furniture Rs. 7,300 1,200 16,000 10,000
34,500 Receipts and Payments A/c for the year ended 31. 12. 2001 Receipts To balance b/d ,, Subscription ,, Entrance fees ,, Sale of old newspaper ,, Sale of old sports materials ,, Rent 1,200 7,000 Rs. 7,300 38,000 2,000 200 Payments By Salary
,,
34,500
Rs. 10,000
Purchase of Sports materials 6,000 20,000 10,000 300 400 1,300 7,700 55,700
,, Investments ,, Fixed Deposit ,, Postage ,, General Expenses ,, Light charges ,, Balance C/d
55,700
Adjustments : a) b) c) d) e) Subscriptions outstanding for the year 2001 — Rs. 3,000 Subscriptions received in advance for the year 2002 — Rs. 1,000 Depreciate sports materials by Rs. 5,000 and furniture by Rs. 500 Capitalise entrance fees Outstanding Salaries Rs. 1,800 and light charges Rs. 300.
Prepare : i) ii) Income and Expenditure Account Balance Sheet as on 31. 12. 2001.
21. Following is the Trial Balance of Rani Company Ltd., Gulbarga. Trial Balance as on 31.12.2004 Particulars Debit Rs. — Credit Rs. 2,50,000
Share Capital ( 25,000 shares of Rs. 10 each ) Reserve Fund Salary Furniture Building 10% Debentures Opening Stock Purchases and sales Returns Goodwill Investment Calls in Arrears
— 10,000 30,000 2,10,000 — 40,000 1,30,000 5,000 60,000 40,000 10,000
1,25,000 — — — 50,000 — 2,10,000 10,000 — — — Contd. ………
Particulars
Debit Rs. 25,000 — 30,000 6,000 7,000 8,000 20,000 20,000 90,000 34,000 7,75,000
Credit Rs. — 20,000 — — — — — 10,000 1,00,000 — 7,75,000
Cash at Bank Profit & Loss Account Vehicles Printing expenses Freight Audit fees Interim dividend Bills receivable & payable Debtors and Creditors Wages
Adjustments : a) b) c) d) Stock on 31. 12. 2004 Rs. 55,000. Depreciate Furniture and Building by 5% Provide R.B.D. at 5% on debtors. Transfer Rs. 10,000 to Reserve Fund.
Prepare Final Accounts.
Code No. March / April, 2006
30-NS
ACCOUNTANCY
Time : 3 Hours ( English Version ) SECTION – A Answer any eight questions, each carrying two marks. 1. 2. 3. 4. 5. 6. State any two features of Single Entry System. What is partnership ? What is Revaluation account ? Give the Journal entry for realisation expenses paid on dissolution of firm. State any two types of shares of a public company. Under what headings are the following items shown in the company's Balance sheet ? a) b) 7. 8. 9. Share premium Preliminary Expenses. 8 × 2 = 16 Max. Marks : 90
What is Depreciation ? State any two features of Receipts and Payments Account. What is manual accounting ?
10. What is master file ? SECTION – B Answer any three questions, each carrying six marks. 3 × 6 = 18
11. Savitha, a partner withdrew Rs. 1,000 on 1st of every month for the half year ending 30th June, 2004. Calculate the interest on drawings at 6% p.a. under product method. 12. Kiran, Naveen and Sunil are partners sharing profits and losses in the ratio of 2 : 2 : 1. Kiran retires. His share is taken over by Naveen and Sunil in the ratio of 3 : 2. Calculate the new profit and loss sharing ratio.
13. X, Y and Z are partners sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as on 31. 12. 2004 was as follows : Liabilities S. Creditors Bills payable Reserve fund Capitals : X Y Z 20,000 20,000 10,000 Rs. 20,000 6,000 24,000 Cash Debtors Stock Furniture Machinery Assets Rs. 6,000 24,000 20,000 10,000 40,000
1,00,000
1,00,000
X died on 31st March, 2005 and his executors were entitled for : a) b) c) His capital balance as on the date of last Balance Sheet. His share in Reserve fund. His share of Goodwill. The Goodwill of the firm was valued at Rs. 36,000. d) His share of accrued profit calculated on the basis of last year’s profit. The profit of last year was Rs. 18,000. e) Interest on capital upto the date of death at 6% p.a.
Show X’s Capital account. 14. Anand Company Limited forfeited 1,000 shares of Rs. 10 each for nonpayment of 1st call at Rs. 2 per share and final call at Rs. 2 per share. These shares were forfeited and reissued as fully paid at Rs. 7 per share. Give the necessary Journal Entries. 15. State the disadvantages of computerised accounting.
SECTION – C Answer any four from the following questions, each carrying fourteen marks : 4 × 14 = 56
16. Manu kept his books under Single entry system and provides you the following information : Particulars 1. 1. 2005 Rs. 6,000 3,000 — 20,000 16,000 10,000 — 50,000 14,000 — 31. 12. 2005 Rs. 8,000 4,000 2,000 25,500 20,000 10,000 4,000 50,000 16,000 30,000
Cash at Bank B/R B/P Debtors Creditors Furniture Investments Buildings Stock Motor car ( 30. 6. 2005 )
During the year, Manu withdrew Rs. 5,000 for personal use. He also paid Rs. 2,000 as medical expenses for his son and introduced additional capital of Rs. 8,000. Adjustments : a) b) c) d) Depreciate Furniture and Motor car at 10% P.A. Appreciate building by 20%. Of the debtors Rs. 500 is irrecoverable and provide R.B.D. at 5% on debtors. Rent due but not paid Rs. 1,000 and interest due but not received Rs. 400. Prepare : i) ii) Statement of Profit or Loss Revised Statement of Affairs.
17. Rajesh and Ramesh are partners sharing profits and losses in the ratio of 2 : 1. Their Balance Sheet as on 31. 12. 2005 was as follows : Balance Sheet Liabilities Creditors Bank loan Reserve Profit & Loss a/c Capitals : Rajesh Ramesh 90,000 70,000 Rs. 50,000 20,400 15,000 15,000 Cash Vehicles Bills receivable Debtors Less : Reserve Stock Furniture Machinery 70,000 4,000 66,000 62,000 20,000 60,000 Assets Rs. 2,400 30,000 20,000
2,60,400 Kiran is admitted into partnership on the following terms : a)
2,60,400
He should bring Rs. 80,000 as capital for 4 th share and Rs. 30,000 towards goodwill.
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b) c) d) e) f)
Goodwill is withdrawn by the old partners. Machinery is depreciated by 10%. Furniture is written down by Rs. 2,000. Increase R.B.D. by Rs. 2,400. An amount of Rs. 4,400 due to a creditor, is not likely to be claimed and hence to be written off.
Prepare : i) ii) Revaluation account Partners' Capital accounts and
iii) New Balance Sheet.
18. On 1.1.1996 a firm purchased a machinery costing Rs. 30,000. On 1. 7. 1998 it sold a part of the machinery costing Rs. 12,000 ( on 1. 1. 1996 ) for Rs. 8,800 and on the same date a new machinery was purchased for Rs. 15,000. Depreciation was to be charged annualy at 10% p.a. on the diminishing balance method. Show the Machinery Account and Depreciation Account for the first four years. 19. Anitha and Sunitha are partners sharing profits and losses equally. Their Balance Sheet as on 31. 12. 2004 was as follows : Liabilities Bills Payable Creditors Anitha's loan Vanitha’s loan Reserve fund Capitals : Anitha Sunitha 50,000 50,000 Rs. 6,000 20,000 5,000 5,000 30,000 B/R Debtors Less : R.B.D. Stock Investment Furniture Machinery Buildings 1,66,000 28,000 2,000 26,000 40,000 12,000 14,000 20,000 40,000 1,66,000 Assets Cash at Bank Rs. 10,000 4,000
On the above date the firm was dissolved. a) The assets realised as follows : Bills Receivable Stock Building b) c) Rs. Rs. Rs. 3,800 39,000 50,000 Debtors Machinery Rs. Rs. 25,800 19,000
Investment was taken over by Anitha at Rs. 10,000 and furniture was taken over by Sunitha at Rs. 12,000. Dissolution expenses Rs. 2,600.
Prepare : i) ii) Realisation Account Partners' Capital Accounts
iii) Bank Account.
20. Following is the Balance Sheet and Receipts and Payments Account of Hosanagar Sports Club, Hosanagar. Balance Sheet as on 31. 12. 2000 Liabilities Outstanding Salary Capital Fund Rs. 2,000 32,500 Assets Cash balance Outstanding subscription Sports materials Furniture Rs. 7,300 1,200 16,000 10,000
34,500 Receipts and Payments A/c for the year ended 31. 12. 2001 Receipts To balance b/d ,, Subscription ,, Entrance fees ,, Sale of old newspaper ,, Sale of old sports materials ,, Rent 1,200 7,000 Rs. 7,300 38,000 2,000 200 Payments By Salary
,,
34,500
Rs. 10,000
Purchase of Sports materials 6,000 20,000 10,000 300 400 1,300 7,700 55,700
,, Investments ,, Fixed Deposit ,, Postage ,, General Expenses ,, Light charges ,, Balance C/d
55,700
Adjustments : a) b) c) d) e) Subscriptions outstanding for the year 2001 — Rs. 3,000 Subscriptions received in advance for the year 2002 — Rs. 1,000 Depreciate sports materials by Rs. 5,000 and furniture by Rs. 500 Capitalise entrance fees Outstanding Salaries Rs. 1,800 and light charges Rs. 300.
Prepare : i) ii) Income and Expenditure Account Balance Sheet as on 31. 12. 2001.
21. Following is the Trial Balance of Rani Company Ltd., Gulbarga. Trial Balance as on 31.12.2004 Particulars Debit Rs. — Credit Rs. 2,50,000
Share Capital ( 25,000 shares of Rs. 10 each ) Reserve Fund Salary Furniture Building 10% Debentures Opening Stock Purchases and sales Returns Goodwill Investment Calls in Arrears
— 10,000 30,000 2,10,000 — 40,000 1,30,000 5,000 60,000 40,000 10,000
1,25,000 — — — 50,000 — 2,10,000 10,000 — — — Contd. ………
Particulars
Debit Rs. 25,000 — 30,000 6,000 7,000 8,000 20,000 20,000 90,000 34,000 7,75,000
Credit Rs. — 20,000 — — — — — 10,000 1,00,000 — 7,75,000
Cash at Bank Profit & Loss Account Vehicles Printing expenses Freight Audit fees Interim dividend Bills receivable & payable Debtors and Creditors Wages
Adjustments : a) b) c) d) Stock on 31. 12. 2004 Rs. 55,000. Depreciate Furniture and Building by 5% Provide R.B.D. at 5% on debtors. Transfer Rs. 10,000 to Reserve Fund.
Prepare Final Accounts.
