March 2011 Accounts Board Exam Question Paper

Q1. Attempt any four sub – questions of the following:

A.      Answer in ‘One’ Sentence each:

1.       What is fixed capital method?

2.       What do you mean by capital expenditure?

3.       Under which method of depreciation, amount of depreciation, changes every year?

4.       What is retirement of Bill of Exchange?

5.       What do you mean by credit balance of Joint Venture Account?

B.      Write a word / term/  phrase which can substitute each of the following sentences:

1.       The statement showing list of Debit and Credit balances of all ledger accounts.
Ans. Trial balance

2.       Fees paid by persons to become members of a ‘Not for Profit’ concern.
Ans. Entrance Fees Or Admission Fees

3.       Excess of Average Profit over Normal Profit.
Ans.  Super Profit

4.       The person who endorses a bill.
Endorser

5.       A temporary partnership formed for carrying out a particular venture.
Ans. Joint Venture

C.      Match the following pairs:

Group A	Group B
1.       Accured income 2.       Impersonal accounts are not maintained 3.       RAM 4.       Agent who sells goods of joint venture 5.       Installation charges	a.       Single entry system b.      Volatile Memory c.       Asset Side d.      Charged paid for erection of New machinery e.      Liability side f.        Double Entry g.       Non – volatile memory h.      Entitled for commission on sale

Ans. (1-c), (2 - a) , (3 - b), (4 - h) , (5 - d)

D.      Select the most appropriate alternative from those given below and rewrite the sentences:

1.       Income and expenditure account includes items of __________ nature only.

a.       Capital

b.      Revenue

c.       Fixed

d.      Non – recurring

2.       Noting charges are paid when a bill is ____________

a.       Honoured

b.      Dishonoured

c.       Renewed

d.      Retired

3.       Unsold stock of Joint Venture taken over by co – venture is credited to ___________

a.       Co-venturer’s account

b.      Joint venture account

c.       Joint bank account

d.      Stock account

4.       Under single entry system, additional capital brought in during the year is __________ closing capital in order to calculate profit.

a.       Added to

b.      Deducted from

c.       Added twice to

d.      Deducted twice from

5.       Subscription received in advance during the account year is ____________

a.       An income

b.      An expenditure

c.       An asset

d.      A liability

E.       State with reasons whether the following statements are True or false.

1.       While calculating the average profit, the losses are ignored.(False)

2.       Drawer and payee of a bill of exchange may be one and the same person.(True)

F.       Prepare a bill of exchange from the following information.

Shri Suraj Patil, Bazarpeth, Sawantwadi, draws a bill for a period of 4 months on Anita Desai, M.G. Road, Pune, on 1^stJanuary, 2011 for Rs. 19500. Anita Desai accepted the bill on 4^thJanuary, 2011.

Q2. Shri Yashraj and Company, Kolhapur, purchased furniture for Rs. 60000 on 1.4.2007.

                On 1.10.2009 the company sold out a part of the furniture for Rs. 6000. The original cost of which on 1.4.2007 was Rs, 12000. The company charges depreciation at the rate of 10% p.a. on Reducing Balance method. The financial year of the company ends on 31^st march, every year.

Prepare : Furniture account and depreciation account for the years 2007 – 08,  2008 – 09, 2009 – 2010.

OR

A. Following is the Balance Sheet of Anil and Sunil.

Balance sheet as at 31^st march, 2008

Liability	Amount Rs.	Assets	Amount Rs.
Capitals: Anil Sunil Profit & loss a/c Creditors Bank Overdraft	360000 240000 60000 93000 87000	Machinery Computer Stock in Trade Debtors Cash	360000 60000 270000 126000 24000
	840000		840000

The Profit and Loss for the last 5 years were:

Years	2003 – 04	2004 – 05	2005 – 06	2006 – 07	2007 – 08
Rs.	150000 Profit	180000 Profit	72000 Profit	12000 Loss	60000 Profit

You are required to calculate the value of Goodwill at 5 years’ purchase of super assuming that the normal rate of return is 10% on capital employed in the similar business.

B. Explain in brief, the importance of computers in modern age.

Q3. Ms. Smita purchases goods from Mr. Ramesh on 1^st April, 2010 for Rs. 36,000. Smita accepts a bill for 2 months drawn by Ramesh for the same amount on the same day.

Ramesh discounts the bill with the Bank for Rs. 35,100 on 2^ndApril, 2010. On due date the bill is dishonoured, noting charges are Rs. 60.

Smita pays Rs. 18000 in cash with noting charges. A fresh bill drawn by Ramesh is accepted by her for the balance including interest Rs. 450 for two months.

The new bill is retired one month before the due date at the rebate of Rs. 250.

Pass journal entries in the books of Ms. Smita.

OR

Journalise the following transactions in the books of Mr. Vivek.

a.       On 1^st January, 2010, Sameer informs Vivek that mahesh’s acceptance for Rs. 32,000 endorsed to Sameer has been dishoured. Nothing charges Rs. 800.

b.      On 1^st February, 2010 Subhash renews his acceptance of Vivek for Rs. 30,000 by paying Rs. 14,000 in cash and accepting a fresh bill for the balance plus interest @ 10% p.a. for 3 months.

c.       On 5^th February, 2010 Dinesh retired his acceptance to Vivek for Rs. 12000 by paying Rs. 11600 in cash.

d.      On 1^st March, 2010. Vivek sent a bill on Sohan for Rs. 20000 to Bank for collection. Bank informed that the bill has been dishonoured by Sohan.

Q4. Rokadimal of Rajkot and Gunjal of Pune, entered into a Joint venture to purchase and sell goods and agreed to share profit and losses in the proportion of 4:1 respectively.

Rokadimal sent goods of Rs. 400000 to Gunjal for sale. Rokadimal paid Rs. 11500 for carriage. Rokadimal drew a bill of Rs. 95000 on Gunjal, Which he accepts. Rokadimal discounted this bill with the bank for Rs. 92000.

The amount of discount is to be treated as Joint venture expenditure. Gunjal paid Rs. 13500 for advertisement. Gunjal sold all the goods for Rs. 500000. Gunjal paid Rs. 7000 for selling expenses and he is entitled for a commission on sales at 5%. Coventurers settled their account.

Give journal entries in the books of Gunjal of Pune.

Q5. Following incomplete information is available from the records maintained by Mr. Premnath.

Particulars	1.4.2009	31.3.2010
Cash balance Bank balance Sundry debtors Stock Furniture Creditors 10% Bank loan	12000 26000 20000 24000 24000 20000 20000	13000 30000 26000 26000 24000 20000 20000

Additional information:

1.       Mr. Premnath introduced additional capital in the business amounted to Rs. 15000 on 1^st January, 2010. .

2.       He has paid life insurance premium Rs. 10000 from the business account and withdrew goods worth Rs. 5000 for his personal use.

3.       Write off Rs. 1000 as bad and maintain reserve for doubtful debts at 5% on remaining debtors.

4.       Provide depreciation at 5% p.a. on furniture.

5.       The closing balance of sundry creditors has been overvalued by Rs. 2000 in the books of account.

6.       Provide interest on capital and Bank loan @ 10% p.a.

Prepare

1.       Statement of affairs as on 1.4.2009.

2.       Statement of affairs as on 31.3.2010 and

3.       Statement of Profit and loss for the year ended 31^st March, 2010.

Q6. Following is the Balance sheet and Receipts and Payments account of the Memorial Hospital, Sawantwadi. Prepare Income and Expenditure account for the year ended on 31.03.2010 and a balance sheet as on that date.

Balance Sheet as on 01.04.2009

Liability	Amount	Assets	Amount
Capital Fund: Outstanding Salaries Medical Bill unpaid	1004000 22000 6000	Cash in hand Cash at bank Land and building Furniture Equipment Outstanding subscriptions	6000 34000 800000 70000 120000 2000
	1032000		1032000

Receipts and payments account for the year ending 31^stMarch, 2010

Receipts	Amount	Payments	Amount
To Balance b/d Cash in hand Cash in Bank To Subscription (Including Rs. 2000 for last year) To Sale of furniture (Book value Rs. 30000) To Donations (Revenue) To Life Membership Fees	6000 34000 130000 20000 40000 25000	By Salaries A/c (including of the last year) By Medicines By Equipment purchase By Taxes By General Expenses By Balance C/d Cash in Hand Cash at Bank	110000 52000 20000 3000 8600 15400 50000
	259000		259000

Consider the following adjustments:

1.       Outstanding subscription Rs. 12000

2.       Capitalize the amount of membership fees.

3.       Prepaid Taxes Rs. 500.

4.       Outstanding Salary Rs. 12000.

5.       Write off depreciation Rs. 20000 from Land and Building and Rs. 30000 from Equipment.

6.       Outstanding Medicines Bill as on 1.4.09 is still due.

Q7. From the following Trial balance of M/s Sanjay and Vijay, you are required to prepare Trading and Profit and Loss account for the year ended on 31^stMarch, 2010 and Balance Sheet as on that date after taking into consideration the additional information given below.

Trial balance as on 31^st March, 2010

Particulars	Debit balances	Credit balances
Sundry debtors and creditors Bills Receivable and Bills Payable Purchases and sales Return inward Salaries and Wages Carriage outward Insurance premium Postage and Telegram Plant and machinery Advertisement Import duty Bad debts Printing and stationery Cash in Hand Leasehold premises Opening stock Dividend received Outstanding Audit fees 10% bank Loan (Taken on 1.10.09) Capital : Sanjay Vijay	45800 28200 98500 2000 26000 1800 2200 1750 70000 3000 2100 1000 2400 1850 80000 12000	72700 40000 110000 1500 4400 60000 45000 45000
	378600	378600

Additional information:

1.       Closing stock was valued at Rs. 25000

2.       Unused Postage Stamps of Rs. 250

3.       Uninsured goods worth Rs. 8000 were stolen from the godown.

4.       Leasehold property is to be run for 10 years w.e.f. 1. 10. 2009.

5.       Depreciate Plant and Machinery at 10% p.a.

6.       Out customer Mr. Ajay Became insolvent and could not pay his debts of Rs. 2000.