Accountancy

IIBS INDEPENDENT PU COLLEGE PREPARATORY EXAMINATION II PU

ACCOUNTANCY

MARKS:100

SECTION-A

I ANSWER ANY EIGHT

8X2=16

1.what is single entry system? 2. What is current capital method? 3. What is Revalution account? 4. what is gain ratio? 5. what is calls in arrears? 6. what is share premium? 7. What is debenture? 8. Give the meaning of Depreciation. 9. what is realization account? 10. What is proposed dividend?

SECTION-B II ANSWER ANY THREE.

6X3=18

11. A and B are equal partners A’s drawings during the year 2010 had been as fol lows:    

st

Rs. 1000 on 31  Jan st Rs. 2000 on 1  June th Rs. 2000 on 30  August st Rs.3200 on 1  December

Calculate interest on drawings 12% p.a. under product method. 12. X and Y are partners 3:2 they admit Z. future future profits and losses are are to be shared 8:7:5 8:7:5 find out Sacrifice ratio. 13. The Bajaj company limited forfeited 600 shares of Rs. 100 each for non-payment of first call money Rs.25 per share and final call Rs.15 per share as fully paid up. Reissued Rei ssued at Rs. 80 per share. Give journal entries. 14. Write any 6 difference between Shares and Debentures. 15. X,Y and Z are partners ratio 3:2:1. Capital balance on 1-1-2005 Rs.20000, Rs. 20000 and Rs. 10000. His st executors are entitled for X died on 31  march 2005.

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His capital balance Interest on capital at 6% p.a Share of reserve fund Rs. 24000 Share of goodwill. The firm value Rs. 36000 His last year profit 18000.

SECTION-C III ANSWER ANY FOUR.

4X14=56

16. Mr. Ravi keeps his books under single entry system. He gives you following information’s. PARTICULARS

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1-1-2005

31-12-2005

Cash 1000 2000 B/R 4000 8000 Debtors 6000 9500 Stock 7000 8500 Furniture 4000 4000 Machinery 10,000 10,000 Creditors 8000 5000 B/P 1500 500 During the year Ravi has withdrawn Rs. 3500/- and brought Rs 800/- as additional capital. Depreciate furniture at 5% and machinery 10% There are outstanding salary 200/- and prepaid rent Rs. 400. Prepare Statement of Affairs and statement of P/l and Revised Statement of Affairs.

17. Ram and Sham are partners sharing P/L in the ratio 5:3 their balance-sheet on 31-3-2011 Liabilities Bank overdraft Loan Creditors Reserve Fund Capital A/cs Ram 50,000 Sham 30,000

Amount 20000 79000 40000 16000

Assets Cash Stock Debtors B/R Building Plant & Machinery Computers

80,000 2,35,000 th They admit Bhim for 1/5  share in future profits on following terms:      

Amount 15000 35000 45000 10000 60000 40000 30000 2,35,000

Bhim should bring Rs.40000 as capital He should pay Rs. 24000 towrds Goodwill and amount retained in business. Depreciate computers and machinery at 15% each Appreciate building by Rs.25000 RDD 10% on Debtors. Outstanding printing bill Rs 2000. Prepare Revalution account, Partners Capital A/c and Balance Sheet of new firm.

18. M1, M2 and M3 are partners ratio 3:2:1 Balance Sheet as on 31-12-2007

Liabilities

Amount

Assets

Amount

Creditors B/P K’s Loan Reserve Fund Capital Accounts: M1 90,000 M2 60,000 M3 30,000

60,000 18,000 40,000 36,000

Bank B/R Stock Debtors Car Investment Furniture Machinery P/L A/c

30,000 24,000 40,000 80,000 20,000 30,000 26,000 60,000 24,000

1,80,000 3,34,000

3,34,000

a. Assets realized as follows: b. c. d. e. f.

Stock-44000, Debtors-90000, Machinery-56000, B/R-20000 Furniture is taken over by M1 at Rs. 30000 Investment is took over by M2 at Rs. 40000 Car is took over by M3 at Rs.14600 Creditors & B/P were paid off at 10% discount Dissolution expenses Rs. 8000 Prepare Realisation A/c , Capital A/c and Bank A/c.

19. On 1-1-2005 a firm acquired lease costing Rs. 50,000/- for a term of 4 years. It is purposed to depreciate

lease by annuity method charging 5% interest with reference to annuity tables to write off Rupee 1 at 5% over a period of 4 years. The amount charged is 0.282012. show lease account and interest Account. 20. The Bajaj company Ltd gives you its trial balance as on 31-12-2011 Sl. No.

Name of Accounts

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

Share Capital(2500x10) Reserve Fund Salary Furniture Building 10% Debentures Opening stock Purchases and Sales Returns Goodwill Investments Calls in arrears Cash at Bank P/L A/c Vehicles Printing Freight Audit Fees Interim divened B/R & B/P Debtors & Creditors

Debit

Credit

2,50,000 1,25,000 10,000 30,000 2,10,000 50,000 40,000 1,30,000 5000 60,000 40,000 10000 25000

2,10,000 10000

20000 30000 6000 7000 8000 20000 20000 90000

10000 100000

22

Wages

34000 7,75,000

7,75,000

Adjustments:  Stock on 31-12-2001 Rs 55000  Depreciate furniture and Building 5% each  Provide RDD at 5% on Debtors  Transfer Rs. 10000 to Reserve fund  10% debenture interest outstanding for 1 year Prepare Trading and P/L account, P/L Appropriation, Balance Sheet. SECTION-D

IV ANSWER ANY TWO OF THE FOLLOWING

2X5=10

21. Prepare capital accounts of two partners under fluctuating capital system with 5 imaginary figures. 22. How do you treat the following in absence of partnership deed? a. b. c. d. e.

Interest on capital Interest on drawings Interest on loan Distribution of Profit & loss Salary or Commission to partners

23. Prepare opening statement of affaires with imaginary figures.

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IIBS INDEPENDENT PU COLLEGE PREPARATORY EXAMINATION IPU

ACCOUNTANCY

MARKS:100

SECTION-A

I ANSWER ANY SEVEN QUESTIONS

2x7=14

1. What is book-keeping? 2. What is personal account? 3. Who is solvent person? 4. What do you mean by Drawings? 5. Write any two features of Journal 6. What is contra entry? 7. What do you mean by ‘bad debts’? 8. Give the meaning of Gross profit. 9. What do you mean by Two-column cash book? 10. What is Voucher? SECTION-B II ANSWER ANY FOUR QUESTIONS

5X4=20

11. Briefly explain any five accounting concepts. 12. Classify the following into Personal, Real and Nominal A/c a. Cash A/c f. Advertisement A/c b. Rent A/c g. Furniture A/c c. Canara Bank A/c h. Chandan Hospital A/c d. Salary A/c i. Machinery A/c e. Commission A/c  j. Mahesh’s A/c 13. Prepare the personal A/c of Mr. Sagar. 2013 March 5 Debit balance in Sagar’s A/c  2013 March 10 Sold goods to Sagar 2013 March 15 Bought goods from him 2013 March 20 Sagar returned goods 2013 March 25 Sagar purchased goods from us 2013 March 30 Received from Sagar in full settlement

Rs. 33000 4200 5500 200 2800 4500

14. Prepare purchase book for the month of March 2013 in the books of Vidya Stationery March 01 Purchased 50 text books from Nuthan Publishers at 100 per copy. March 07 Bought Pens from Quick Suppliers Rs 4000 March 15 Credit Purchases from Veer Rs. 1000 worth March 16 Cash Purchases from Varun Traders Rs.2000 March 26 Purchase 10 dozen note books from Great Publishers Rs. 4500

15. Record the following transactions in an analytical petty cash book under imprest system and balance it. 2013 Jan 1 Received a cheque 500 2013 Jan 6 Paid cartage 50 Jan 8 Paid for postage 75 Jan 10 paid travelling charges 60 12 purchase stationary 40 15 paid wages 50 20 paid for news paper bill 50 24 refreshment 25 30 paid to Santosh 50 16. Prepare a trial balance as on 31/3/2013 Sl.no Name of accounts Amount 1. Capital 24000 2. Opening Stock 8500 3. Furniture 2600 4. Purchases 8950 5. Sales 22500 6. Purchase returns 1900 7. Sales returns 350 8. Discount received 970 9. Carriage inward 300 10. Cash 25570 SECTION-C III ANSWER ANY FOUR QUESTIONS

14X4=56

17. Journalise the following transactions: 2012 Jan 1, Anand started business with cash Rs.1,00,000 2, open a bank A/c – Rs.30000 4, Purchase goods from Adarsh Rs.20000 6, Sold goods to Rahul Rs.15000 10, Bought goods from Suresh on Credit Rs. 15000 13, Sold goods to Suman on credit Rs. 20000 16, received cheque from Suman Rs. 19500 20, cheque given to Ajay on account Rs. 10,000 22, Rent paid by Cheque RS.2000 23, deposit into bank Rs.16000  jan 25, withdraw money from bank Rs.10000 26, received commission Rs. 2000 28, withdraw money for personal use Rs. 5000 29, paid salaries Rs.4000 18. Journalise the following transactions & post them in Ledger accounts & balance it Mar 1 Commenced business with cash Rs. 80,000 & Furniture 20,000. 3 Deposit into state bank Rs.10,000 & Canara Bank Rs. 20,000 5 Purchase goods Rs.3000 & Stationery Rs. 2000 7 Sold goods Rs.2000 & Machinery Rs.5000 9 Withdrew money for personal use Rs.7000 15 Received commission Rs. 500 & Discount Rs. 1000 20 Paid salary Rs. 2000 & Rent Rs.3000

19. Enter the following transactions in THREE column cash book M ay 1 Balance of cash in hand Rs.60,000 & at bank Rs.30,000 2 Sold goods for cash Rs. 2,500 4 Paid cash into bank Rs. 2000 6 Received a cheque from Mahesh Rs.5000 & discount Rs. 100 8 Karthik directly paid into our account Rs.5000 10 Drew from bank for office use Rs. 3000 12 Paid Naresh half in cash & half by cheque Rs.4000 14 Paid Satya by cheque Rs. 2000 in full settlement of his account Rs. 2150 16 Drew a cheque for personal use Rs.1000 20 Cash received from sale of building Rs. 2 0000 22 Paid for insurance by cheque Rs. 6000 27 Paid to Ganesh & earned discount @ 2% Rs. 5000 29 Paid salary staff by cheque Rs. 8000 30 Paid rent by cheque Rs. 6000 20. Mr Hari keeps his books under single entry system: Particulars Furniture Machinery Building Stock Debtors Bills Receivable Creditors Bills Payable Bank loan

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1/1/2010 15,000 50,000 1,00,000 25,000 20,000 5,000 15,000 10,000 12,000

31/12/2010 15,000 50,000 1,00,000 25,000 26,000 10,000 25,000 8,000 10,000

During the year he withdrew for personal use Rs.15,000 and invested further capital Rs.18,000 Write off bad debts Rs.1000 Prepaid salary Rs. 6000 Appreciate building by 20% Allow interest on opening capital @ 5% p.a.

Prepare statement of affairs, statement of P/L & revised statement 21. From the following trial balance of Shri Ram prepare trading account, Profit & loss account & Balance sheet Sl.No 1. 2. 3. 4. 5. 6. 7.

Name of account Capital Drawings Opening stock B/R & B/P Purchase & Sales Returns Debtors & Creditors

Debit -------40,000 1,00,000 20,000 4,14,000 10,000 64800

Credit 2,00,000 --------------24,000 6,50,000 14,000 48000

8. Salaries 9. Wages 10. Machinery 11. Furniture 12. Rent &Tax 13. Insurance 14. Printing charges 15. Cash 16. Bank

44000 38400 120,000 20,000 14000 5200 6000 800 38,800 9,36000

--------------------------------------------------------9,36000

Adjustments Closing Stock valued at 72,000 Depreciation on Machinery @5% & Furniture 2000 Outstanding Expnses: Wages-1600 & Rent-400 Insurance Prepaid -600 Bad debts -500 & RDD 5% on Debtors Prepare Trading A/C, Profit/Loss A/C & Balance-Sheet. SECTION-D     

IV

Answer any Two

2x5=10

22. Write the accounting Equation & Findout the missing figures. Assets Liabilities Capital ? 1,70,000 3,00,000 5,20,000 4,00,000 ? 3,80,000 ? 5000 1,00,000 20,000 ? ? 30,000 20,000 23. Draft a specimen of debit note. 24. Prepare accounting cycle.

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