Accounts Test No. 4

Friday, May 15, 2009 1. Answer the following Questions.

(10 marks)

i.

ii. What is Draft? iii. Who are coventurers? iv. What is v. What is vi. What is vii. What is viii.What is ix. What is x. What is xi. What is

do you mean by grace days? due date? acceptance of the bill? inland bill? foreign bill? noting charges? protesting? bill of exchange?

2.

3.

Drawer : Drawee : Payee Amount : Period : Date of Bill Date of Acceptance

Kallis, Jaipur Sachin, Mumbai. : Ganguly, Kolkata. Rs. 5,000. 4 months : 17th August, 1995 : 20th August, 1995

(5 marks)

4. 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. N.R.R. is 10%. (5 marks)

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 at 10% p.a. Ramchandra agreed. The second Bill was duly honoured. Give Journal entries in the books of Ramchandra. (12 marks)

6. Journalize the following transactions in the books of Kamesh:

(12 marks) Nanda informs Kamesh that Shanti’s acceptance for Rs. 4,000 endorsed to Nanda has been dishonoured and noting charges have been Rs. 100 ii. Ashok renews his acceptance to Kamesh for Rs. 2400 by paying Rs. 800 in cash and accepting a new bill for the balance plus interest @ 12 p.a. for 3 months. iii. Deva’s acceptance to Kamesh Rs. 12,000 is retired one month before its due date at a discount of 12% p.a. iv. The bank informs Kamesh that Sudhakar’s acceptance for Rs. 4,000 has been dishonoured and it has paid noting charges Rs. 80. i.

7. Ashok, Kishor & Anup undertook the construction of an office building at a contract price of Rs. 10,00,000. Receivable in cash Rs. 6,00,000 and Rs, 4,00,000 in shares. They agreed to

Friday, May 15, 2009 share profits and losses equally. They opened the joint bank a/c and contributed the following amount. Ashok – Rs. 3,00,000, Kishor - Rs. 3,00,000, and Anup – Rs.2,00,000. Ashok paid Rs. 10,000 as architect fees, Kishor brought in the venture mixture of Rs. 25,000 and Anup brought in motor truck of Rs. 55,000. The following transactions were made from Joint bank A/c. Purchase of material Rs. 4, 50,000, Plant – Rs. 30,000 and freight and wages – Rs. 1, 50,000. At the close of the venture, Ashok took away the unused material worth Rs. 8,000. Kishor took away the mixture worth Rs. 15,000 and Anup took away the truck worth Rs. 35,000. The scrap value realised of the plant was Rs. 6,000. The Contract price was received in full and Kishor took over the shares for Rs. 4,10,000. Prepare Joint Venture A/c, Joint Bank A/c & co – ventures A/c. (12 marks)

8. X, Y and Z entered into a Joint Venture to sell a certain plot of land. They contributed Rs. 25,000 each. They purchased land of 5,000 sq. m. at Rs. 10 per sq. m. 1/5th of the land was left over for public roads and the balance was divided into 8 plots of equal size. A plan was got prepared for Rs. 2,000 and other expenses were Rs. 3,500. 5 plots were sold @ Rs, 15 per sq. m. and 3 plots were sold @ Rs. 14 per sq. m. Prepare joint venture A/c Joint Bank A/c and Co – Venture’s A/c. (12 marks)

Friday, May 15, 2009 I.

Answer the following Questions. (10 marks) 1.

2. Who is endorsee? 3. What do you mean by goodwill? 4. What is endorsement of Bill? 5. What is retirement of the bill? 6. What is Hundies? 7. Who is Drawer? 8. Who is Drawee? 9. Who is endorser? 10. Who is payee? 11. What is joint venture? II.

Friday, May 15, 2009 III.

IV.

V.

VI.

VII.

VIII.

Drawer : M.S. Dhoni, Chennai, Tamil Nadu (5 marks) Drawee : Sehwag, Delhi Payee : Dravid, Bangalore. Karnataka. Amount : Rs. 5,000 Period : 60days. Date of Bill : 10th May, 2009 Accepted on : 15th May, 2009 The present average net profit of Braful, Shobha partnership firm before detecting partner’s remuneration is Rs, 27,000 p.a. The capital employed in the business by the partner Braful Rs, 1, 00,000 & Shobha Rs, 50,000. The profit expected from the total capital invested is 10% p.a. The total remuneration is estimated to be Rs, 6,000 per annum. Find out the value of goodwill on the basis of 2 years purchase of super profit. (5 marks) Premlal sold goods to Sunderlal worth Rs. 10,000/- and Sunderlal accepted the bill for Rs. 10,000/- at 3 months drawn by Premlal. Premlal Discounted the bill with his bank @ 6 % p.a. on due date the bill was dishonoured and Sunderlal requested Premlal to accept Rs. 4,000 immediately and draw upon him a new bill for the remaining amount at 3months together with an interest at 10% p.a. Premlal agreed and the second bill was duly honoured. Give the Journal entries in the books of Premlal. (12 marks) Journalise the following transactions in the books of Kailash. (12 marks) a. Sandeep informs Kailash that Vila’s acceptance for Rs. 8,000 endorsed to Sandeep has been dishonoured. Noting Charges amounted to Rs. 200. b. Kalpana renews her acceptance to Kailash for Rs. 7,500 by paying Rs. 3,500 in cash and accepting a fresh bill for the balance plus interest at 10% p.a. for 3 months. c. Uma retired her acceptance to Kailash for Rs. 3,000 by paying Rs. 2,900 in cash. d. Kailash sent a bill of Anita for Rs. 6,000 to bank for collection. But Bank informed that the bill has been dishonoured by Anita. Girish, Manish and Rajnish undertake the construction of an office building at a contract price of Rs. 10, 00,000. The contract price is to be received Rs. 6,00,000 in cash and Rs. 4,00,000 in fully paid shares of that company. They decide to share profits and losses equally. They opened a joint bank account and contributed the following amounts: Girish Rs. 2,00,000 Manish Rs. 2,00,000 Rajnish Rs. 1,00,000. Girish pays Rs. 10,000 as the fees of the Architect. Manish Brings into the venture Mixer worth Rs. 25,000. Rajnish brings into the venture the motor truck worth Rs. 55,000. The following expenses were made from the Joint Bank Accounts. Purchase of Materials Rs. 3, 50, 000,Purchase of Plant Rs. 30, 000, Freight and Wages Rs. 1, 50, 000. At the close of the venture, Girish took over the unused material worth Rs. 8,000; Manish took back mixer worth Rs. 15000 and Rajnish took back the truck worth Rs. 35,000. The scrap value of the plant was realised at Rs. 6,000. The contract price was received in full and Manish took over the shares at the value of Rs. 4, 10,000 Prepare the Joint venture A/c, Co – Venture’s A/c and Joint Bank A/c. (12 marks) Sudhir and Narendra Signed a contract jointly to construct an office building for Abhay Enterprises Ltd. The contract price was Rs. 2,50,000. They opened a Joint Bank Account and deposited Rs. 1, 20,000 and Rs. 60,000 respectively. They agreed to share the profits and losses in the ration of 3/5th and 2/5th respectively. The following transaction was made from the Joint Bank Account. Wages Rs. 70,000 Materials purchased Rs. 1,25,000 Apart from the above transactions, Sudhir supplied material of Rs. 12,000 and Narendra paid the architect’s fees Rs. 2500. On completion of the construction, Abhay Enterprises Ltd. paid full amount. There was unused stock of materials which was taken over by Narendra at Rs. 15000. Prepare Joint Venture Account, Joint Bank Account and Co – venture’s Account. (12 marks)

Friday, May 15, 2009