Accounts Test No. 3. Bills Of Exchange

OMTEX – CLASSES T O TA L

M A R K S

C H A P T E R T I M E :

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N A M E :

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A C C O U N T S . T E S T S N O . 3

B I L L S O F E X C H A N G E G O O D W I L L - 4 5 M I N . O N LY.

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1. Calculate the good will from the following information goodwill is valued at three years purchase of average profit of the last six years. Profit and losses of the business in the last six years are as follows, (5 marks) st 1 year, Rs, 40,000(Profit) 2nd Year, Rs, 60,000(Profit) 3rd Year, Rs, 10,000(Loss) 4th Year, Rs, 50,000(Profit) 5th Year, Rs, 30,000 (Loss) 6th Year, Rs, 80,000(Profit)

(5 marks) 3. Rupali accepted a bill for Rs. 2,000/- drawn by Deepali at three months. Deepali got the bill discounted with her bank for Rs. 1,900. Before the due date Rupali approached Deepali for renewal of the bill. Deepali agreed on the condition that Rs. 1,000/- be paid immediately together with interest on the remaining amount at 6% p.a. For balance Rupali should accept a new bill for three months. These arrangements were carried through but afterwards, Rupali become Insolvent and only 40 % of the amount could be recovered from her estate. Give journal entries in the books of Deepali. (12 marks)