Acounts Papaer Ii Preliminary Examination 2008 - 09

-------------------------OMTEX CLASSES---------------------------Q1. Answer any four of the following. (20 marks) A. Answer the following. (5) 1. What is Balance Sheet? 2. Who is co – venture? 3. What is Super Profit? 4. What is Endorsement of Bill? 5. What is Good will of the firm. B. Write word/term/phrase which can substitute each of the followings: (5) 1. Reputation of a firm expressed in terms of money. 2. Payment of expenses before they have become due. 3. Payment of bill of exchange before its due date at rebate. 4. The person on whom the bill of exchange is drawn. 5. The account that is credited when depreciation is charged. C. Match the pairs. (5)

1 . 2 . 3 .

A Depreciation Dishonour of bill Joint Venture Goodwill Co – Venturers

1 . 2 . 3 .

4 .

4 .

5 .

5 .

B Temporary Partners Intangible Asset Wear and tear Notary public Temporary partnership Tangible Asset

6 . D. Select the most appropriate alternative from those given below: (5) 1. Debit Balance in Profit and Loss Account shows _______________ a. Net profit b. Gross profit c. Net loss d. Gross loss 2. A bill of exchange must be accepted by ___________________ a. A drawer b. A payee c. An endorsee d. A drawee 3. At the end of the financial year balance of Depreciation account is transferred to _______________ a. Depreciation account b. Asset account c. Trading account

d. Profit and loss account. 4. In the absence of partnership deed the partners share the profit and loss of the firm _____________ a. In the ratio of capital b. Equally c. As per rights in management d. On the basis of experience. 5. ____________ has to ultimately bear the noting charges. a. Drawer b. Drawee c. Endorser d. Bank E. State True / False with reasons. (Any Two) (5) 1. Under fixed capital method for each partner two accounts are maintained. 2. Under fixed instalment method depreciation is charged on the diminishing value of the asset. 3. Interest on partner’s drawings is debited to Profit and loss appropriation account. F. Prepare a bill of exchange from the following information: Drawer: Vilas Patil, 21. M.G. Road, Pune Drawee: Vikas Pawar, 31. S.V. Road, Nasik. Payee: Viraj Potade, 41, A.B. Road, Sholapur, Period: 2 months Amount: Rs. 7,500/Date of Bill: 1st January, 2007. Date of acceptance: 3rd January, 2007.

Q. 2. Attempt any one of the following. A. The following is the balance sheet of M/s Anna and Chunna as on 31st March 1995. Balance sheet as on 31st march, 1995.

Liabilities

Amoun t

Capital Anna Chunna Creditors Profit/ Loss A/c

Assets Machin ery

1,64,0 00 Building 40,000 Plant 35,000 Stock 3,040 Debtor Bank 2, 42, 040

Amoun t 10,000 26,000 56,000 56,000 19,040 75,000 2, 42, 040

Net profits for the past 3years are 1st year Rs, 43,350, 2nd year Rs, 36870, 3rd year Rs, 32,280. Normal rate of return on capital employed is 10%. Calculate the value of goodwill at 2years purchase of the average super profit. [5 marks]

B. Explain the importance of computer in modern age OR 2. M/s Jalaram Mill, Mulund, showed a debit balance of Rs. 32,000 to the Machinery A/c on 1st April, 2001(Original cost of the Machinery was Rs. 40,000). On 1st October, 2001 the Mill bought additional Machinery for Rs. 15,000 and spent Rs. 1,000 for its installation. One more machinery costing Rs. 20,000 was purchased on 31st March, 2003. Depreciation is charged on 31st March, every year at 10% p.a. under the Diminishing Balanced Method. On 31st March, 2004, the machinery which was purchased on 1st October, 2001 was sold for Rs. 12000. Prepare Machinery A/c and Depreciation A/c for the years 2001 – 2001, 2002 – 2003 and 2003 – 2004. (February, 2008).

3. On 1st January, 1982 Shri Jameersheth of Jalgaon sold goods to Shri Nanchand of Nanded for Rs. 80,000. On the same date Shri Jameersheth drew a bill on Shri Nanchand for the same amount for three months. Shri Nanchand accepted the bill and returned the same to Shri Jameersheth on 4th January, 1982. Shri Jameersheth discounted the bill with the banker at 10 % p.a. On the due date bank informed that the bill was dishonoured and Shri Nanchand requested Shri Jameersheth to accept Rs. 40000 immediately and draw upon him the new bill for the remaining amount for two months together and interest at 12% p.a. Shri Jameersheth agreed and the second bill was duly honoured. Pass the necessary Journal entries in the books of Shri Jameersheth of Jalgaon and show Shri Jameersheth’s account in the books of Shri Nanchand of Nagpur. OR 3. Journalize the following transactions in the books of Maharaja. i. Ayub informs Maharaja that Sadashiv’s acceptance for Rs. 2,000 endorsed by Ayub has been dishonoured, noting charges amounted to Rs. 150 j. Pankaj renews his acceptance to Maharaja for Rs. 1200 by paying Rs. 400 in cash and accepting a fresh bill for the balance plus interest at 12% p.a. for 3 months. k. Vaibhav’s acceptance to Maharaja for Rs. 6000 retired one month before the due date at a discount of 12%p.a. l. Bank informs Maharaja as to the dishonour of Kasam’s acceptance for Rs. 2000 to Maharaja discounted with Bank noting charges Rs. 200.

4. Raghu and Ramesh entered into a joint venture to produce an advertisement film for Bharati Traders, at a contract price of 40,000. Raghu contributed Rs. 10, 000 and Ramesh Rs. 20,000 and opened a joint account in the bank with these contributions. Raghu purchases from his own funds raw film for Rs. 8, 000 and a Camera for Rs. 7,000 for joint venture. They Paid from the Joint Bank Account: Artist’s fees Rs. 18, 000, Hire of sets Rs. 2,000 and technician Charges RS. 10,000. The firm was completed but due to certain defects in the firm, the contract Price was reduced by 10% the amount being received by cheque from Bharati Traders. At the end of venture, the camera was sold for Rs. 5,000 and Ramesh took over the unused film for Rs. 400. Raghu and Ramesh shared profit and losses in the proportion of 1:2 and settled account of the venture. Prepare the Joint venture Account the Joint Bank account and the accounts of the Co – ventures.

5. On 1st April, 2004 Saikripa enterprises purchased two computers of Rs. 40,000 each. On 1st October, 2004 they purchased one more computer for Rs. 40,000. On 1st October, 2006 they sold one of the computer, which was purchased on 1st April, 2004 for Rs. 18,780. Depreciation on computers was provided @10% p.a. on diminishing balance method and the financial year closes on 31st March every year. Prepare Computer account and depreciation account for the years 2004-05, 2005-06 and 2006-07. (October 2008)

6. From the following information, prepare Income and Expenditure account for the year ended 31st March, 2008 and a Balance Sheet as on that date.

Receipts

To Cash in hand (1.4.2007) To Subscriptions 2006 – 07 2007 – 08 2008 – 09 To proceeds from Drama To Entrance Fees To Interest on Securities To sale of Old Furniture

Amou Payments nt 2000 By Bank Overdraft

Amou nt 2300

By Salaries

5000

150 By Furniture 1010 By Investments in 0 Securities 75 By Printing and Stationery 2475 By Cost of Staging 600 drama 500 By Sundry Expenses 100 By Cash at Bank 1600 0 By Cash in Hand

1500 2000 1000 200 1300 2500 200 1600 0

1. The society has 1000 members, each paying an annual subscription of Rs. 12. 2. Subscriptions of Rs. 10 pertaining to the year 2006 – 07 are still in arrears. 3. Value of Stationery at hand on 31st March, 2007 was Rs. 500 and on 31st March, 2008 was Rs. 350. 4. 90% of Entrance Fees are to be treated as Capital receipts. 5. Salary of Rs. 4700 for the current year is unpaid. 6. Balances as on 31st March, 2007: Investment Rs. 15000, Building Rs. 50000, Furniture Rs. 500. 7. Depreciate building by 7 ½ % and furniture by 10%.

7. Dalal & Raja are partners sharing profit and losses equally. From the following Trial Balance of the firm, prepare Trading a/c Profit and Loss A/c and Balance sheet for the year ending 31.12.1997. Trial Balance as on 31.12.1997

Debit Stock

Rs. 20,000

Credit Capital Accounts:

Rs.

Purchases

1,30,200

Dalal

15,000

Sales Return

500

Raja

15,000

Debtors

20,000

Current Accounts

Wages

6,000

Dalal

2,000

Royalties

1,000

Raja

2,000

Furniture

5,000

Sales

1,70,500

Machinery

30,000

Purchase Return

3,200

Advertisement for 4 years

4,000

Commission

300

Salary

3,000

Provident Fund

2,000

Provident fund contribution

500

Interest on Provident fund investments.

200

2,000

Provident fund investment

500

Reserve for Doubtful debts

Insurance

3,000 2,30,700

Creditors

Cash

500 20,000

Drawings : Dalal Raja

3,500 1,500 2,30,700

Adjustments. 1. Closing stock: Cost price Rs. 25,000. Market Price Rs. 30,000/2. Dalal has taken goods worth Rs. 500 for his personal use. 3. Goods amounting Rs. 3,000 were sold and dispatched on 27.12.1997 but no entry was made in the sales book. 4. Prepaid insurance Rs. 100. 5. Depreciation Furniture by 15%, Machinery by 20% 6. Write off bad debts Rs. 400/- and provide for reserve for doubtful debts at 3% on debtors

Saturday, October 18, 2008