ACCOUNTS QUESTION PAPER

Omtex classes	i st PRELIMINARY EXAMINATION	BOOK KEEPING & ACCOUNTANCY	GROUP: a
TIME: - 3 HRS	DATE: - 16.11.2010	DAY -  tuesday	MARKS: -100

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)

	A		B
1. 2. 3. 4. 5.	Depreciation Dishonour of bill Joint Venture Goodwill Co – Ventures	1. 2. 3. 4. 5. 6.	Temporary Partners Intangible Asset Wear and tear Notary public Temporary partnership Tangible Asset

D. Select the most appropriate alternative from those given below:     (5)

1. Debit Balance in Profit and Loss Account shows _______________
1. Net profit
2. Gross profit
3. Net loss
4. Gross loss
2. A bill of exchange must be accepted by ___________________
1. A drawer
2. A payee
3. An endorsee
4. A drawee
3. At the end of the financial year balance of Depreciation account is transferred to _______________
1. Depreciation account
2. Asset account
3. Trading account
4. Profit and loss account.
4. In the absence of partnership deed the partners share the profit and loss of the firm _____________
1. In the ratio of capital
2. Equally
3. As per rights in management
4. On the basis of experience.

5. ____________ has to ultimately bear the noting charges.
1. Drawer
2. Drawee
3. Endorser
4. 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: 1^st January, 2007.

Date of acceptance: 3^rd January, 2007.

Q2. Ravindra Trading company. Ambajogai Purchased machinery for Rs. 55,000/- on 1^st April, 1996 and spent Rs. 5,000/- on its fixation and erection. In the same year on 1^st October, additional machinery costing Rs. 40,000/- was purchased. On 1^st October, 1998 the machinery purchased on 1^st April, 1996 became obsolete and was sold for Rs. 43,000/- On 1^st January, 1999, a new machinery was also purchased for Rs. 20,000.

Depreciation was provided annually on 31^st March at the rate of 10% per annum on Fixed Instalment Method. Prepare Machinery A/c and Depreciation A/c for the years 1996 – 97, 1997-98, 1998-99. (March 2005 Board exam Question).

OR

Q2. (A) The books of a business showed that the capital employed on 31^st 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%.

&

Q2. (B) Importance of computer in accounting.  

Q3. Anil sold goods to Ravindra for Rs. 6000. Ravindra accepted Anil’s bill for Rs. 6000 payable after 3 months. After a month, Anil discounted the bill with his bank at 10% p.a. On the due date, Ravindra dishonoured his acceptance. Ravindra paid Rs. 3000 to Anil and accepted a fresh bill for 3 months for the balance including interest @ 8% p.a. Anil sent the bill to bank for collection. On due date, Ravindra honoured the bill. Pass the journal entries in the books of Anil. (October 2002 board exam questions).

OR

Q3. Journalize the following transactions in the books of Motilal:

a.        Bhavna informed Motila that Jyoti’s acceptance for Rs. 3600 endorsed to Bhavna has been dishonoured and noting charges have been Rs. 150.

b.       Anil renews his acceptance to Motilal for Rs. 3400 by paying Rs. 900 in cash and accepting a new bill for the balance plus interest at 8% p.a. for 3 months.

c.        Prabhakar retired his acceptance to Motilal for Rs. 4000 by paying Rs. 3850 in cash.

d.       Bank informed Motilal that Arun’s acceptance of Rs. 7000 which was discounted with bank has been dishonoured with noting charges Rs. 100. (March 2008 board exam questions)

Q4. Ajay and Abhijeet were partners in a Joint Venture sharing profits and losses in the proportion of 4/5 and 1/5 respectively. Ajay supplied goods to the value of Rs. 25000 and incurred expenses amounting to Rs. 2700. Abhijeet also supplied goods to the value of Rs. 7000 and his expenses amounted to Rs. 400. Abhijeet sold all the goods for Rs. 46000. Abhijeet is entitled to a commission at 5% on sales. Abhijeet settled Ajay’s account by bank draft. Prepare Joint venture account and Abhijeet account in the books of Ajay. (March 2006 board exam questions.)  

Q5. Mrs. Archana keeps her books on single entry system and gives the following information: (March 2008 board exam question)

Particulars	31.3.2006	31.3.2007
Cash at bank Sundry debtors Stock in trade Furniture Machinery Bills payable Sundry creditors	5000 25000 30000 20000 50000 5000 15000	32000 40000 50000 20000 50000 5000 20000

Further information:

1.      Mrs. Archana withdrew from business Rs. 15000 for personal use.

2.      She further introduced fresh capital of Rs. 25000.

3.      Depreciation is to be charged @ 10% p.a. on Furniture and Machinery.

Prepare : (1) statement of affairs as on 31.3.2006. (2) statement of affairs as on 31.3.2007. (3) statement of profit and loss for the year ended on 31.3.2007.

Q6. Sanjay, Ajay and Vijay undertook the construction of building at a contract price of Rs. 6,00,000 payable in cash Rs. 4,00,000 and in the form of debentures of company Rs. 2,00,000. They shared profits and losses in the ration of 3:2:1 respectively. They opened a Joint Bank account wherein they deposited the following amounts. Sanjay Rs. 3,00,000, Ajay Rs. 2,00,000 and Vijay Rs. 1,00,000.

The following payments are made out through Joint bank account.

1.      Purchase of materials Rs. 2,50,000.

2.      Payment of wages Rs. 77,000.

3.      Purchase of plant Rs. 45,000 and

4.      Other charges Rs. 11,000.

Sanjay bring the truck of Rs. 40,000. Ajay brings in the material of Rs. 55,000. Vijay brings mixer worth Rs. 10,000. At the close of venture the unused materials were taken by Sanjay for Rs. 5,000. Ajay took over the mixer and plant for Rs. 27,000. The truck was sold in the market for Rs. 22,000. The contract price was received as per ther agreement and Vijay agreed to take over the debentures at Rs. 1,90,000.

Prepare : Joint venture account, Joint Bank account and Co – ventureres account. (March 2008 board exam questions)

Q7.  Following is the Trial Balance of Premlal and Sundarlal as on 31^st March 2006.

Trial balance as on 31^st March, 2006.

Particulars	Amount	Particulars	Amount
Stock on 1-4-2006 Purchases Drawings: Premlal Sundarlal Sales return Wages : productive Unproductive Salaries Rent, rates and insurance Bad debts Discount allowed Machinery Building Sundry debtors Cash Government bonds	90000 225000 33000 30000 7200 10500 1800 18600 10200 1200 3900 45000 108600 153000 1000 2000	Sales Purchase returns Discount received Sundry creditors Capital : Premlal Sundarlal Bank overdraft	375000 3000 3000 90000 105000 135000 30000
	741000		741000

1.      Closing stock was valued on 31.3.2006 at market price Rs. 60,000 which was 20% above its cost price.

2.      Outstanding productive wages Rs. 600

3.      Rent, Rates and insurance include insurance Rs. 1600 paid for one year ending on 30^th June 2006.

4.      Maintain Reserve for doubtful debts at 5% on debtors.

5.      Depreciate buildings by 5% and machinery at 10% p.a.

6.      Goods costing Rs. 2500 were distributed as free samples for which no record has been made in the books.

7.      Six months interest is due on Bank Overdraft at 10% p.a.

Prepare trading and profit and loss account for the year ended 31^st March 2006 and Balance Sheet as on that date. (September 2008 board exam questions)