Accounts Question Paper Omtex Classes

1. Attempt the following sub - questions: ( Any 4 from A, B, C, D, E & F) (A) Answer in one sentence each: 5 1. What is depreciation? 2. When is a bill said to be honoured? 3. What is a Joint venture account? acc ount? 4. What is normal profit? 5. What do you mean by single entry system?

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(B) Write a word/ term/ phrase/ which can substitute each of the following statements: s tatements: 5 1. A credit balance of Joint venture account. 2. Discount given by holder to acceptor on retirement of bill of exchange. 3. A temporary partnership formed for carrying out a particular venture. 4. An accounting system where rules of debit and credit are not followed. 5. The part of a computer which is popularly regarded as the heart and brain of computer. (C) Match the following pairs:

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Group Grou p ‘A’ ‘A’

Group ‘B’

1. Single entry system 2. Co - venturers 3. Computer 4. Statement similar to Balance Sheet 5. Super Profit

a. Statement of Affairs.  b. Average profit - normal profit c. 1932 d. Unscientific e. Partners in Joint Venture f. An electronic device h. Liability side

(D) Select the most appropriate alternative from the given below and rewrite the sentences: 5 1. Wages paid for erection of machinery should be debited to _________ account. a. Machinery b. Wages c. Trading d. Profit & loss 2. If a bill drwan on 23rd October, 2011, for three months, it will be due for payment on ________ a. 26th Feb, 2012. b. 27th January, 2012 c. 25th January, 2012 d. 26th January, 2012 3. Expenses incurred by the co - venturer for Joint venture are credited to _____ account. a. Joint venture b. Joint Bank c. Co - venturer’s d. Expenses 4. Calculation or comparisions of data are done in the _________ of a computer. a. Control unit b. Primary memory c. Arithmetic & Logic unit d. Secondary memory  5. Depreciation per annum = a. Life period of an asset

Cost of the xed assets - ......................... ................................ ....... Estimated working life of xed assets b. Scrap value

c. Selling Price

d. Cost price

E. State, with reasons, whether the following statements are True or False: 1. Depreciation increases the value of fixed assets. 2. Goodwill has no realisable value.

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F. Prepare a Bill of Exchange from the following information: 5 Miss Sunita S. Sawant, 21, Gokhale Naka, Ratnagiri, draws a bill of exchange for a period of 3 months on Miss Amruta A. Nakashe, 34, Bazarwadi, Raipathan, Rajapur, on 1st February, 2012 for Rs. 39, 500. Amruta  A. Nakashe accepted the bill on 5 th February, 2012. 2. (A) The books of a business showed that the capital employed on 31st December, 1992 was Rs.1, 00,000/-. Profits for the last five years are_1988, 1989, 1990, 1991 & 1992 were Rs, 60,000, Rs, 55,000, Rs, 75,000, Rs, 85,000 & Rs, 65,000 respectively. Goodwill is valued at 2 years purchase of the Super profit of the  business. NRR is 10%. 5 2. (B). Explain about the components of computer hardware?

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3. A. Shri Oriental computer company, Kolhapur, purchased computers for Rs. 1,00,000 on 1st July, 2008. On 1.10.2009 the company purchased additional computers for Rs. 80,000 and spent Rs. 2,000 on their installation. On 1st October, 2010 the company sold out computers costing costing Rs. 40,000 purchased on 1st July 2008, for Rs. 26,000 and on the same date new computers were purchased for Rs. 40,000. The company charges depreciation at the rate of 10% p.a. on Reducing Balance Method. The financial year of the company ends on 31st March, every year. Prepare : computers account and depreciation account for the years 2008 - 09, 2009 - 2010 and 2010 - 2011. 12 3. B. M/s Anjali trading company, Satara, purchased a Machiney for Rs. 3,70,000 on 1st April, 2008 and spent Rs. 30,000 on its erection. On 1st Oct. 2008 Company purchased an additional machinery of Rs. 2,00,000. The company decided to depreciate the Machinery @ 10% p.a. on Fixed Instalment Method. On 31st March, 2011 the company sold one machine purchased on 1st April, 2008 having the original cost Rs. 1,00,000 for Rs. 75,000. Financial year of the company closes on 31st March every year. Prepare Machinery Account and Depreciation account for the years 2008 - 09, 09 - 10, 10 - 11. 12 4. A. Madhav and Pranav entered into a joint venture to purchase and sell the goods. They decided to share the profits and losses in the proportion of their initial contribution. They opened a Joint Bank Account by depositing Rs. 3,60,000 and Rs. 2,40,000 respectively. They made following expenses from Joint Bank Account. Purchase of goods Rs. 2,70,000 carriage and insurance Rs. 48,000, selling expenses Rs. 18000. The goods were sold for Rs. 3,06,000. The venture was closed and the co venturers settled their accounts.  You are required to prepare : Joint venture A/c, Co - venturers’ A/c, Joint Bank A/c in the books of Joint venture. 12 4. B. Madhuri and Mayuri decided to undertake a business venture jointly and agreed to share the profits and losses in the ratio 3/4th and 1/4th respectively. Madhuri supplied from her own stock goods Rs. 14,50,000 and Paid Rs. 18,000 for carriage and freight, while Mayuri supplied goods of Rs. 13,60,000 and spent Rs. 15,000 for sundry  expenses. Madhuri then drew a bill on Mayuri for Rs. 1,00,000 as an advance, and Mayuri sold all the goods for Rs. 30,50,000. Give Journal entries in the books of Madhuri, assuming that at the end of the venture all accounts  were settled. 12 5. Mayuri keeps her books on Single Entry System and the following information is disclosed. Particulars Cash in hand Stock in Trade Debtors Furniture Sundry Creditors Bills Payable 10 % investments Bank Overdraft Plant and Machinery

31.03.2010 20,500 45,000 32,000 47,500 29,000 6,000 30,000 21,000 80,000

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31.03.2011 38,000 48,750 42,000 47,500 28,000 9,000 45,000 10,000 1,20,000

1. Ms Mayuri transfered Rs. 1000 each month during the first half year and Rs. 1500 each monnth for the remaining period from her business to her private banking account by way of drawings and took away  Rs. 2500 worth of goods for private use. 2. Ms Mayuri sold her private furniture for Rs. 18,000 and proceeds were invested in the business as on 1-10-2010. 3. Furniture and Plant and Machinery are to be depreciated by 10% p.a. each and Reserve for dubtful debts is to be maintained at 5% on debtors. Addition to Plant and Machinery were made on 1st July, 2010. 4. New investments were purchased on 1st October, 2010.

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1. Attempt the following sub - questions: questions: ( Any Any 4 from A, B, B, C, D, E & F) (A) Answer in one sentence each: 5 1. What is Partnership? 2. What is Partnership deed? 3. What do you mean by fixed instalment method of depreciation? 4. What is retirement of a bill? 5. What do you mean by credit balance of Joint venture account?

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     B

(B) Write a word/ term/ phrase/ which can substitute each of the following statements: s tatements: 5 1. Money value of reputation of the business. 2. All the physical devvices of a computer system that we can see or touch. 3. A temporary partnership formed for carrying out a particular venture. 4. Drafting a new bill in cancellation of old bill at the request of drawee. 5. A gradual, continuous and permanent reduction in the value v alue of fixed assets due to its use,  wear and tear or any other cause. (C) Match the following pairs:

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Group ‘B’ a. Sale price of used assets. 1. Fixed Instalment method.  b. Charges for erection of machinery. machinery. 2. Depreciation c. Depreciation goes on changing every year. 3. Residual value. d. Asset on which depreciation is not provided. 4. Written Down value method. e. Fixed assets. 5. Installation Charges. f. Excess of selling price over its book value. g. Current Assets h. Amount of depreciation remains constant every year. Group ‘A’

(D) Select the most appropriate alternative from the given below and rewrite the sentences: 5 1. The opening capital is greater than the closing capital, then the difference is is _______ a. Loss b. Profit c. Assets d. Liability  2. At the end of financial year, balance of depreciation account is transferred to _______ a. Asset account b. Trading Account c. Profit and loss A/c c. None of these. 3. A bill of exchange is called a ________ by one who is entitled to receive the amout due on it. a. Bills Payable b. Draft c. Bills Receivable d. Promissory note. 4. Expenses of Joint venture business are debited to ______________ a. Joint Bank A/c b. Joint venture A/c c. Co - Venturer’s A/c d. Debenture A/c 5. Modern visual display devices use _______ a. LCD b. CRT c. GPS d. CAS

E. State, with reasons, whether the following statements are True or False: 5 1. If the partnership deed is silent, partners share profits and losses in their capital ratio. 2. The expenditure incurred on installation of machinery is revenue expenditure. F. Prepare a Bill of Exchange from the following information: Drawer: Subhash Suryawanshi, Main Road, Ajara. Drawee: Madhukar Bharati, Amboli Road, Sawantwadi. Payee: Manoj Desai, Amboli Period: 60 days.

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2. A. The average net profit expected in the business by ABC firm is Rs, 36,000 per year. The average capital employed in the business by the firm is Rs, 2, 00,000. The Rate of interest expected from capital invested in the business is 10%. The remuneration of the partners is estimated to Rs, 6,000 P.a. Calculate the value of goodwill based on 2years purchase of super profit. 5 2. B. Write the importance of computer in modern age.

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3.A. On 1st April 2007, Ranjana Traders, Ratnagiri, purchased Furniture Furniture for Rs. 2,60,000. Estimated life of the furniture is 10 years and scrap value of the furniture is Rs. 40,000. The furniture was sold on 31st March 2011 for Rs. 90,000. The accounts are closed on 31st March, every year. 12 From the above information, prepare Furniture Account and Depreciation Account for the years 2007 - 08, 2008 - 09, 2009 - 10 and 2010 - 11 by charging depreciation under Fixed Instalment method. 3.B. The Machinery account shows a debit balance of Rs. 15,000 on 1st April, 2005. This machinery was originally  purchased on 1st Oct., 2002 for Rs. 20,000. On 1st April, 2005 a new machinery was purchased for Rs. 45,000. On 1st July, 2005 he again purcchased the machinery costing Rs. 15,000 and spent Rs. 1,000 for its erection. On 1st January, 2006 the machine purchased on 1st Oct., 2002 was sold for Rs. 15,500. On 31st March every year, depreciation is charged at 10% p.a. on cost price. Prepare machinery account and depreciation account in the books of Mr. Prasad Kumar for the year ended on 31st March, 2006. 12 4. A. Yahoo and Google entered into joint venture to purchase the land and sell the plots. Yahoo and Google contributed Rs. 3,00,000 each with which they opened a ‘Joint Bank Account’. The following payments were made from Joint Bank Account. (a) Purchase of Land Rs. 3,00,000 (b) Development expenses Rs. 1,00,000 (c) Legal charges Rs. 40,000  Yahoo paid registration fees Rs. 30,000. ¾ of the land was sold for Rs. 5,00,000. Remaining land was taken over at agreed value of Rs. 60,000 by Google. 12 Pass Journal Entries and Prepare Joint Bank Account, Joint Venture Account and Co-Venturers Accounts. 4. B. Mr. Anand of Akola entered into a joint venture with Mr. Bakshi of Srinagar and Mr. Mirza of Agra on the following arrangements: (a) Bakshi will purchase blankets and Mirza will purchase carpets and both will send the goods for sale to Anand; (b) Anand will sell the goods at the best possible price and send the remittance to Bakshi and Mirza in accordance with their dues. (c) Profits will be shared equally among the three parties.  Accordingly, Bakshi purchased 50 blankets at Rs. 100 each and spent Rs. 120 for freight. Mirza purchased 100 carpets for Rs. 100 each spent Rs. 100 each and spent 380 for freight. Anand sold all the blankets and carpets for Rs. 25,000 and his expenses amounted to Rs. 380. He paid the dues to both Bakshi and Mirza. Pass the necessary Journal Entries in Anand’s Journal and show joint venture A/c and the co-venturer’s A/c. 12 5. Following records of Mr. Raj were kept on single entry system. 12 Particulars 31.3.2006 31.3.2007 Mr. Raj invested Rs. 4000 in the business. Also he 15000 14000 had withdrawn Rs. 15000 for his private expenses from Stock  53500 44000  business. Rs. 500 to be provided for bad debts. Depreciate Furniture Plant and Machinery  42500 55500 plant and macinery @ 5% and furniture @ 5%. 21000 21000 Loan Taken Prepare : (1) Statement of Affairs as on 31.3.2006. 1900 2100 Bank Balance (2) Statement of Affairs as on 31.3.2007. 43000 35000 Debtors (3) Statement of Profit and Loss for the year ended on 18000 14900 Creditors 31.3.2007.

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1. Attempt Attempt the following sub - questions: ( Any 4 from A, B, C, D, E & F) (A) Answer in one sentence each: 5 1. What do you mean by Fixed instalment method of depreciation? 2. What is bill of exchange? 3. What are noting charges? 4. What do you mean by debit balance of Joint venture account? 5. What is goodwill?

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     C

(B) Write a word/ term/ phrase/ which can substitute each of the following statements: 5 1. A system of accounting which records personal accounts and cash account. 2. Money value for which asset is sold after its useful life. 3. An account opened in the bank in the joint name of the co venturers. 4. The father of modern computer. 5. Excess of average profit over and above its normal profit. (C) Match the following pairs: Group ‘A’

1. Co venturers liability  2. Co venturer 3. Joint Venture A/c 4. ExPenses of Joint venture 5. Joint Bank A/c

5 Group ‘B’ a. Nominal Account  b. Joint venture A/c Debit side c. Seperate set of books of accounts. d. Joint venture A/c Credit side e. Limited f. Joint venture g. Real account h. Unlimited

(D) Select the most appropriate alternative from the given below and rewrite the sentences: 1. Before acceptance, a bill of exchange is called a _______ a. Promissory note b. Draft c. Hundi d. Negotiable instrument. 2. A one month bill drawn on 31st January, 2007, will mature on __________ a. 3rd March, 2007 b. 28th February, 2007 c. 27th February, d. 2nd March, 2007 3. Super profit = Average profit less _________ a. net dividibile profit b. normal profit c. gross profit d. net profit 4. Unsold stock of goods of Joint venture taken over by the Co - venturers is credited to ___ a. Co - venturer’s A/c b. Joint venture A/c c. Jont Bank A/c d. Stock A/c 5. Under fixed instalment method, depreciation is calculated on _________ a. Original cost b. Written down value c. scrap value d. depletion

E. State, with reasons, whether the following statements are True or False: 1. Drawee has no right r ight to discount the bill with the Bank. 2. Drawer and Payee of a bill of exchange may be one and the same person.

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F. Prepare a Bill of Exchange from the following information: Drawer: Pragati Thombre, 54, Suryamahal, Girgaon, Mumbai - 400 004 Drawee: Sulochana, 10, Kailash Bhavan, Nagpur - 440 012.

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2. A. The capital of a partnership firm is Rs. 3,00,000. Profit for the last 4 years was Rs. 32,500, Rs. 35,000, Rs. 36,000 and Rs. 39,000. The reasonable return on the capital employed is 11%. Calculate the value of  goodwill on the basis 3 years purchase of super profit. 5

2. B. Write the importance of computer in modern age.

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3.A. Ashok builders, Amaravati purchased machinery on 1st April, 2008 for Rs. 1,60,000 and spent Rs. 2000 on its installation. On 1st October, 2009 another machinery was purchased for Rs. 2,00,000. On 1st January, 2011, they sold half of the machinery purchased on 1st April 2008 for Rs. 55,000. On the same day they purchased new machinery for Rs. 1,00,000. On 31st March every year they  charge depreciation at the rate of 10 % p.a. under Fixed Insalment Method. Prepare machinery account and depreciation account for three years ending 31st March 2011. 3.B. On 1st April, 2008 Gurudas Traders, Sangli purchased a building for Rs. 20,00,000. On 1st October 2008, an extension was made to the above building by spending Rs. 10, 00 ,000. On 1st October, 2010, half of the building was sold through a broker for Rs. 12,50,000 and brokerage Rs. 5,000 was paid. Depreciation is charged on 31st March, every year @ 10 % p.a. under the Diminishing Balance Method. Prepare the Building A/c and the Depreciation A/c for the three year ending 31st March, 2011. 12 4. A. Mangesh and Mahesh entered into Joint Venture to produce an Advertisement firm for Sanket Traders’s at a Contract Price of Rs. 80,000. They opened a Joint Bank Account with Bank of Maharashtra in which Mangesh deposited Rs. 20,000 and Mahesh Rs. 40,000. They agreed to share profits and losses equally. Mangesh purchased raw film for Rs. 16,000 and Mahesh a Camera for Rs. 7,000. They paid from Joint Bank  Account: Artist’s Fees –Rs. 36,000, Hire of Sets – Rs. 4,000 and Technician’s Charges – Rs. 20,000. The film was completed but due to certain defects in films the contract price reduced by 10%, the amount received by cheque from Sanket Traders. At the end of the venture, the Camera was sold for Rs. 5,000 and Mangesh took over the Unused Film for Rs. 1,000. Prepare: Joint Venture Account, Joint Bank Accounts and Co-Venturers Accounts. 4. B. Yashpal of Udgir and Balu of Latur entered into Joint Venture to consign 300 machines to Amol of   Amravati to be sold on their joint risk which is in the proportion of 2:3 respectively.  Yashpal sent 180 machines at Rs.300 each and paid freight Rs. 700 and sundry expenses Rs. 300. Balu sent 120 machines at Rs. 250 each and paid for insurance Rs. 500 and carriage Rs. 500.  Amol sold all machines at Rs.400 each. He spent Rs. 4,000 for advertisement and Rs. 1,000 for godown charges. Amol deducted 5% commission on sales and sent Rs. 80,000 to Yashpal and  balance to Balu by bank draft. Prepare: (i) Joint Venture A/c (ii) Balu’s A/c (iii) Amol’s A/c in the ledger of Yashpal. 5. Mrs. Archana keeps her books on single entry system and gives the following information. 12 Particulars 31.3.2006 31.3.2007 Additional information 5000 32000 Cash at bank  Mrs. Archana withdrew from business Rs. 15,000 for personal 25000 40000 Sundry debtors use. 30000 50000 Stock in trade She further introduced fresh capital of Rs. 25,000. Depreciation 20000 20000 Furniture is to be charged @10% p.a. on Furniture and Machinery. 50000 50000 Machinery  Prepare: (i) Statement of Affairs as on 31-3-2006 5000 5000 Bills payable (ii) Statement of Affairs as on 31-3-2007 Sundry creditors (iii) Statement of profit or loss for the year ending 31-3-2007.

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1. Attempt the following sub - questions: ( Any 4 from A, B, C, D, E & F) (A) Answer in one sentence each: 5 1. What is depreciation? 2. When is a bill said to be honoured? 3. What is a Joint venture account? 4. What is normal profit? 5. What do you mean by single entry system?

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(B) Write a word/ term/ phrase/ which can substitute each of the following statements: 5 1. A credit balance of Joint venture account. 2. Discount given by holder to acceptor on retirement of bill of exchange. 3. A temporary partnership formed for carrying out a particular venture. 4. An accounting system where rules of debit and credit are not followed. 5. The part of a computer which is popularly regarded as the heart and brain of computer. (C) Match the following pairs:

5

Group Grou p ‘A’ ‘A’

1. Single entry system 2. Co - venturers 3. Computer 4. Statement similar to Balance Sheet 5. Super Profit

Group ‘B’

a. Statement of Affairs.  b. Average profit - normal profit c. 1932 d. Unscientific e. Partners in Joint Venture f. An electronic device h. Liability side

(D) Select the most appropriate alternative from the given below and rewrite the sentences: 1. Before acceptance, a bill of exchange is called a _______ a. Promissory note b. Draft c. Hundi d. Negotiable instrument. 2. A one month bill drawn on 31st January, 2007, will mature on __________ a. 3rd March, 2007 b. 28th February, 2007 c. 27th February, d. 2nd March, 2007 3. Super profit = Average profit less _________ a. net dividibile profit b. normal profit c. gross profit d. net profit 4. Unsold stock of goods of Joint venture taken over by the Co - venturers is credited to ___ a. Co - venturer’s A/c b. Joint venture A/c c. Jont Bank A/c d. Stock A/c 5. Under fixed instalment method, depreciation is calculated on _________ a. Original cost b. Written down value c. scrap value d. depletion

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3. A. Shri Oriental computer company, Kolhapur, purchased computers for Rs. 1,00,000 on 1st July, 2008. On 1.10.2009 the company purchased additional computers for Rs. 80,000 and spent Rs. 2,000 on their installation. On 1st October, 2010 the company sold out computers costing costing Rs. 40,000 purchased on 1st July 2008, for Rs. 26,000 and on the same date new computers were purchased for Rs. 40,000. The company charges depreciation at the rate of 10% p.a. on Reducing Balance Method. The financial year of the company ends on 31st March, every year. Prepare : computers account and depreciation account for the years 2008 - 09, 2009 - 2010 and 2010 - 2011. 12 3. B. M/s Anjali trading company, Satara, purchased a Machiney for Rs. 3,70,000 on 1st April, 2008 and spent Rs. 30,000 on its erection. On 1st Oct. 2008 Company purchased an additional machinery of Rs. 2,00,000. The company decided to depreciate the Machinery @ 10% p.a. on Fixed Instalment Method. On 31st March, 2011 the company sold one machine purchased on 1st April, 2008 having the original cost Rs. 1,00,000 for Rs. 75,000. Financial year of the company closes on 31st March every year. Prepare Machinery Account and Depreciation account for the years 2008 - 09, 09 - 10, 10 - 11. 12 4. Mayuri keeps her books on Single Entry System and the following information is disclosed. Particulars

31.03.2010

12

31.03.2011

1. Ms Mayuri transfered Rs. 1000 each month during the first half year and Rs. 1500 each monnth for the Cash in hand 20,500 38,000 remaining period from her business to her private banking Stock in Trade 45,000 48,750 account by way of drawings and took away  Debtors 32,000 42,000 Rs. 2500 worth of goods for private use. Furniture 47,500 47,500 2. Ms Mayuri sold her private furniture for Rs. 18,000 and Sundry Creditors 29,000 28,000 proceeds were invested in the business as on 1-10-2010. Bills Payable 6,000 9,000 3. Furniture and Plant and Machinery are to be depreciated by  10 % investments 30,000 45,000 10% p.a. each and Reserve for dubtful debts is to be Bank Overdraft 21,000 10,000 maintained at 5% on debtors. Addition to Plant and Machinery  Plant and Machinery 80,000 1,20,000  were made on 1st July, 2010. 4. Ne New inv estme stmen nts wer were purc purchase hased d on 1s 1st Octo ber, 20 2010. 5. Inte Interest on on capit capital al is allowe llowed d @ 10% 10% p.a. p.a. Prepar reparee: (1) Openi penin ng stat statemen ementt of Af f  f airs. airs. (2 (2)) Clos Closing st statem atemeent of  A   A ffairs ffairs. (3) St Statem atemeent of P of Profit or Los Loss for the  y ear end ending 31 31st March, March, 20 2011. 5. On 1st March, Ramchandra sold goods to Raman worth Rs. 8,000/- and Raman accepted the Bill for Rs. 8,000/at 3 months drawn by Ramchandra. Ramchandra discounted the bill with his bank @ 6% p.a. On due date the bill  was dishonoured and Raman requested Ramchandra to accept Rs. 4,000/- immediately and draw upon him a new   bill for the remaining amount at 3 months together with an interest @ 10% p.a. Ramch andra agreed. The second  bill was duly honoured. Give Journal entries in the books of Ramchandra. 10

6. From the following Trial Balance and Adjustments of Kumbhar and Maroti you are required to prepare Trading Trading and Prot and Loss Account for the year ended on 31st March, 2005 and Balance Sheet as on that date.  Trial Balance Balance as on 31st March, 2005 2005