Accounts Paper Ii

 

 OMTEX CLASSES

Bismillah

B.K & ACCOUNTANCY

80 MARKS

Q.1 (A) FILLS IN THE BLANKS

2.30HOURS

5 Marks

1.   Not for Profit concerns prepare _____ account instead of profit and loss account. (Trading, Income and Expenditure, Cash, Receipt and Payme Payments) nts) 2.  A bill drawn on 23rd November, 2006, for two months will be due for payment on _____ (25 th February, th

th

th

2007; 27  January, 2007, 25  January, 2007, 26  January, 2007) 3.   Noting Charges are are paid whe when n a bill is ______ (honoured, (honoured, dishonoured, dishonoured, renewed, retired) retired) 4.  Subscription received in advance during the accounting year is ________(an income, an expenditure, an assets, a liability) 5.  Under Single Entry System only______Accounts are opened. (real, personal, nominal, real and nominal)

(B) GIVE ONE WORD

5 Marks

1.  The method of capital account in which capital balances of partners change every year. 2.  Excess of credit side over debit side of revaluation account. 3.  An expenditure which is not recurring nature. 4.  The debit balance of trading Account. 5.  Assets which is held in a business for a long period.

(C) STATE STATE WHETHER WHETHER THE FOLLOWING STATEMENTS STATEMENTS ARE ARE TRUE TRUE OR FALSE

1.  Discount allowed to Debtors is called Bad debts. 2.   Not for profit concerns concerns do not have profit profit motive. 3.  The Goodwill brought in by the new partner is shared by all partners. 4.  The Balance Sheet is a nominal account. 5.  Return inward is deducted from Purchase.

(D) Answer the following questions in one sentence only:

1.  What do you mean by 'Not for Profit' concern? 2.  What does 'Surplus' mean? 3.  What is 'deficit'? 1

5 Marks

5 Marks

 

4.  What is single entry System? 5.  What is statement of Affairs? Q2. Rani keeps her books on single entry & following information is disclosed.  Particulars  Particul ars

(8 marks)

31.3.06

31.3.07

Cash

18,000

27,000

Stock

15,000

18,750

Debtors

30,000

45,000

Furniture

7,500

7,500

Sundry creditors

26,250

31,500

Bills payable

-

9,000

Loan from ‘y’  ‘y’ 

-

3,000

Investments

-

15,000

Rani transferred Rs150 each month during first half year and Rs.100 each month for the remaining period from her  business to her her private banking banking account by way way of drawing, drawing, and took away away Rs.350 worth of goods goods for private use. use. She sold her private car for Rs.3, 500 and proceeds were utilised for business. Furniture to be depreciated depreciated by 10% and Reserve for Doubtful debts to be maintained at 5% on debtors. Prepare opening and closing statement st atement of affairs and also profit and loss statement statement for the year ending 31/03/07.

st

Q.3. The Balance Sheet of Shrihas and Madan as on 31  March, 2012 is set out below, they share profits and st

losses in the ration of 2:1. Balance sheet as on 31  March, 2013 (10 mark marks) s)

Liabilities

Rs.

Assets

Rs.

Shrihas's capital

40000

Building

20000

Madan's Capital

30000

Furniture

6000

General Reserve

24000

Stock

12000

Creditors

16000

Debtors

60000

Cash

6000

Profit and Loss A/c

6000

2

 

110000

110000

They admitted Prasanna on 1st April, 2013 as a partner on the following terms: t erms: 1.  Prasanna to bring Rs. 12,000 12,000 as capital and Rs. 9,000 aass a Goodwill which is to retained in the bu business. siness. He will be entitled to ¼ th share of profits of the firm. 2.  50% of General Reserve is to remain as Reserve for Doubtful Debts. 3.  Furniture is to be depreciated by 5%. 4.  Stock is to be revalued Rs. 13,000. 5.  Creditors of Rs. 1000 are not likely to claim and hence should be written off. 6.  Rent of Rs. 400 due not received has not been recorded in the books. Pass necessary necessary Journal Entries in the books of the firm. fir m.

’

Q.4. The following information is available from Ram s records:

(10 marks)

 Particular

1.4.06

31.3.07

Creditor

5,000

8,000

Bank overdraft

-

15,000

Bank balance

10,000

-

Plant and machinery

10,000

20,000

Furniture

4,000

4,000

Debtors

30,000

52,000

Stock

34,000

28,000

Ram had withdrawn Rs.5000 for personal expenses and Rs. 4000 for son s marriage. Out of business funds, he ’

had also purchased a residential building costing Rs.20000, which is not shown in the above balance. Additions to ’

Machinery were made on 1/04/06. Dep. at 10 %p.a. should be provided on plant and machinery. Find out Ram s net  profit for the year ended ended 31st march 07.

st

Q.5 From Receipts and payments account of Western Gymkhana for the year ended 31  March, 2007 & other information, prepare Income & Expenditure account for the year ended on & a Balance Sheet as at that date. (12 marks) 3

 

Receipts

Amount

Payments

Amount

To Balance B/F

1,040

By salaries

1300

By Entertainment Expenses

645

To Subscriptions for: 2006

85

By Electric charges

234

2007

4000

By General Expenses

350

2008

103

By Rates and Taxes

120

To Donations

1200

By Investments

3000

To Entertainment Receipts

876

By Stationery and Printing

241

To Interest

81

By Expenses of 2006

600

To Entrance Fees

1000

By Fixed Deposit

1000

By Balance c/f

895

8385

8385

i. 

The Gymkhana has 450 members paying an annual subscription of Rs. 10/- each.

ii. 

Rs. 20/- is still in arrears towards subscription subscription for the year 2006.

iii. 

Carry forward Rs. 20/- for rates paid in advance.

iv. 

Provide Rs. 200/- for salaries outstanding.

v. 

The Gymkhana owns Land and Building standing in the books of Rs. 15,000/- and Furniture standing at Rs. 1,150, on which depreciation at 5% and 20% respectively is to be written off.

vi. 

The Capital Fund as on 1  April, 2006 was Rs. 16,695/-

vii. 

50% of the Entrance Fees is to be capitalised. Donations are capitalis capitalised. ed.

st

4

 

st

Q6. Following is the Trial Balance of Kalavati and Lilavati as on 31  March, 2005 who shares Profits and Loses to the ratio of 3:2. Interest on capital was allowed at 5% p.a. (20 Marks)

st

Trial Balance as on 31  March, 2005 Debit Balance

Rs.

Credit Balance

Rs.

Opening Stock

10000

Return Outward

1250

Sundry Debtors

14100

Sundry Creditors

15800

Purchases

20000

Sales

35000

Wages

4250

R.B.D.D. A/c.

200

Salaries

1350

Capital A/c.

Office expenses

1223

Kalavati

35000

Discount

650

Lilavati

10000

Rent, Rates & Taxes

900

Loan at 9%

2000

Plant & Machinery

15000

(Taken on 1.10.2004)

Return Inward

1750

Land & Building

20000

Cash at Bank

7327

Current A/c : Kalavati

2100

Lilavati  

600 99250

99250

Additional Information

1.  Closing stock was valued at Rs. 20,500. 2.  Unpaid wages Rs. 750. 3.  Outstanding salary Rs. 657. 4.  Provide depreciation on Plant & Machinery at 10% p.a. and on land & building at 5% p.a. 5.  Write of Rs. 100 as bad debts and provide R.B.D.D. at 5% on debtors. 5

 

6.  Rent, Rates and Taxes prepaid Rs. 100. st 7.  Prepare Trading A/c and Profit & Loss A/c for fo r the year ending 31  March, 2005 and a balance sheet as on that

date.

 ST 

1  PRELIMINARY EXAMINATION All the Very Best  

6