Accounts Model Question papers for practice

1.)    Attempt any FOUR of the following:

(A.) Write the word/phrase/term which can substitute each of the following statements:-

1. Accounts prepared on the basis of indirect expenses and income of
   the business to ascertain the net results of the business
2. The expenditure incurred for purchase and installation etc. of an asset.
3. Debit balance of Capital account which partner cannot pay.
4. Parties to joint venture business.
5. Profit earned over and above normal profit.

(5)

(B) Answer in one sentence:

1. What is the principle for valuation of closing stock.
2. What journal entry is passed when the goods are supplied by the 
   coventurer from his own stock for joint venture under no separate book method.
3. What is revenue expenditure .
4. Why is Partnership Deed necessary?
5. Give one advantage of single Entry.

(5)

(c) Multiple chioce:

1. Receipts due to sale of fixed assets or Investment is -------------
   (a) Deferred Revenue Receipt (b) Capital Receipt (c) None of these (d) Revenue Receipt.
2. Discount on bill discounted by the coventurer with the bank is debited to--------------
   (a) Joint Venture Account (b) Bill of Exchange Account (c) Coventurer Account 
   (d) Joint Bank Account.
3. Receipt and paymen Account records Receipt and Payment of ----------------
   (a) Capital nature only (b) Revenue nature only (c) Both capital and Revenue nature
   (d) None of these
4. Interest on partners drawings is debited to -----------------A/C
   (a) Partner's Capital Account (b) Trading Account (c) profit and Loss Account.
   (d) Profit and loss appropriation Account.
5. The bill drawn on 9th June 2000 for 67 days will be due for payment on ------------
   (a) 15th August (b) 13th August (c) 16th August (d) 14th August.

(5)

(d) Match the following pairs:

Column A	Column B
Coventurer Indian partnership Act Notary public partner's Salary Entarance Fees	1932 Deducted from Net Profit May be Capitalised Temparary Partner Deducted from Gross Profit permanent partners 1956 Noting and prostesting of bill of exchange

(5)

(e) State True/False with reasons: (ANY TWO)

1. A bill of exchange can be endorsed only once.
2. Income earned but not received is a liability.
3. Charitable institutions prepare Profit and Loss account.

(5)

(F) Prepare a Bill of Exchange from the following details:-

1. Drawer :- Mr.Govind Devji,Juhu,Mumbai-400049.
2. Drawee:- Miss Kokilaben.Jaipur
3. Payee :- Miss Gitaben Pune
4. Amount :- Rs 1,75,000.
5. Period :- Three Months.
6. Date of Bill :- 26 January,2007.
7. Accepted on :- 27th January 2007.

(10)

Q 2 On 1st April 2000 Mr. Amar purchased one Machinery costing Rs.4,00,000.
On 1st July, 2001 additional machinery was purchased for Rs.2,50,000. On 1st October 2003 one more machinery was purchased for Rs 60,000 On 31 December 2004 First machinery was sold for Rs 1,40,000. On 1st July 2005 second Machinery was sold at a loss of Rs.23,000. Charge Depreciation @ 10% p.a. under Fixed method and Prepare Machinery Account From 1st April 2000 to 31st March 2006 in the books of Mr. Amar

OR

(5)

(5)

Q 2 A From the following information find out Goodwill of the firm 
valued at 2.5 years purchase of average profit of last 5 years.

2000	Rs.5,000	(Loss)
2001	Rs.18,000	(profit)
2002	Rs.26,500	(profit)
2003	Rs.22,500	(profit)
2004	Rs.13,000	(profit)

You are asked to calculate the amount of Goodwill of the firm

Q 2 (b) Explain importance of computer in modern age.

(12)

3.On 1st May 2007 Mr X sold goods worth Rs 40,000 to Mr. Y and received one acceptance for Rs 40,000 at 4 months ,which was discounted by the holder @12% p.a. On the due date Mr.Y paid Rs 10,000 in Cash and accepted a new bill @ 15% p.a. for 2 months but again on the due date Mr. Y could not honour his acceptance and noting charges incurred by the holder of the bill Rs 200. Mr y accepted a new bill for the balance amount at one month and this bill was endorsed to Mr Z at a discount of Rs 30. The bill was retired by the acceptor at a discount of
Rs 10. Pass journal entries in the books of Mr.X & 
Show Mr.X's Account in the books of Mr.Y .

OR

(12)

Q 3 A Show what Journal Entries would be passed in the books of Mr. Mahesh Yogi to record the following transactions?

1. Mr. Mahesh Yogi gave his acceptance to Mr. Rajnish for Rs 800 
   in full settlement of Rs 815 due to him.
2. Received from Mr.Gagangiri a bill of Rs 2,000 drawn by Mr. Asharam on Mr. Ramdeo.
3. Our Banker informs us that they have met our acceptance of Rs 3,500 to Mr.Murari bapu.
4. Endorsed Mr. Raj's acceptance of Rs 5,000 to Mr. Amar in payment of 
   our own acceptance given to him of like amount.
5. Mr. Mr.Amar endorsed the above bill to Mr. Rajnish.
6. Discounted Murari Bapu's acceptance of Rs 3000 at 6% p.a. 2 months before due date.

(12)

Q 4 Mr.A of Mumbai and Mr.B of Pune entered into a joint venture to Sale the goods with the help of Mr.C(Agent) of Goa at a joint risk of 3:2. 
Mr.A supplied goods worth Rs 5,60,000 and incurred Rs 7,000 for carriage 
and Rs. 3,000 for other charges. 
Mr.B supplied Goods worth Rs. 5,50,000 and paid Rs. 4,000 for other charges.
Mr. A advanced Rs. 1,00,000 to Mr.B on account of Joint venture. 
Mr.B accepted a bill for Rs. 30,000 drawn by Mr.A this bill was discounted for Rs. 29,500 and discount was charged to joint venture account.
Mr. C sold all the goods for Rs. 16,00,000 and Mr. C should be allowed 3% commission on sales and 2% for expenses. 
Mr. C remitted Rs 8,00,000 to Mr. A by a bank draft and balance amount to Mr.B by one month's bill. Mr. A and Mr. B settled the account by bank draft. 
Show in the books of Mr.A joint venture account,Mr.B's account and Agent Mr.C's account and show account of Mr.A in the books of Mr.B.

(10)

Q 5 Mr.B maintains his books of accountson on single entry system.
The following information is available from his books of accounts.
On 1st April 2006 his assets and liabilities were:-
Sundry Creditors 1,25,000 Cash at Bank 88,000 Outstanding Expenses 5,000 Stock 60,000 
Plant and Machinery 2,82,000 Furnitures and Fixtures 64,000,land and Building 2,50,000 
On 31st March 2007 his assets and liabilities were:-
Sundry Creditors Rs.62,000 Cash at Bank Rs.1,18,000 prepaid Expenses Rs.16,,000 Stock Rs.2,50,000, Machinery Rs.2,00,000,Debtors Rs.72,000. Furnitures Rs.44,000,land and Building Rs.3,50,000, Motor Car Rs.55,000
During the accounting period his drawing were Rs 44,000 and addition to capital 
Rs 68,000, He took away goods worth Rs. 3,000 for personal use. He donated goods worth 
Rs. 4,500. Depreciation on Machinery 10% p.a. Furniture @ 10 % p.a. and on Building @ 5% p.a.
Bad Debts Rs 2000 and BDR @ 5% p.a.Interest on capital @ 5% p.a. 
You are required to prepare

1. Opening statement of affairs.
2. Closing statement of affairs.
3. Statement of profit or loss.
4. Revised Balance Sheet.

(16)

Q 6 Receipts and payments Account of Nasik Gymakhana for the year 
ended 31st March 2005 is as under; 

Receipts and payments Account of Nasik Gymakhana for the year ended 31st March 2005

Receipts	Amt. Rs	Payments	Amt. Rs
To Balance (1.4.2004)	4,125	By Salaries	12,000
To Donation	31,290	By Taxes	3,450
To Subscription	22,335	By Wages	4,320
To Entrance Fees	3,600	By Printing & Stationary	1,890
To Interest	3,990	By Repairs	2,850
To Surplus from Tournaments	8,100	By postage	360
		By periodicals	3,690
		By Balance (31.3.2005)	44,880
	73,440		73,440

Additional Information:

1. Subscription to periodicals included Rs. 60 paid for the previous year
   and Rs.90 for the next year.
2. 50% of Entrance fees should be credited to Building Fund Account.
3. On 1st April 2004 Credit balance of Building Fund was Rs.3,000
4. 10% of the surplus income from tournaments is to be transferred
   to Building Fund Account for the next five years.
5. Donations are to be transferred to Capital Fund.
6. Outstanding Liabilities as on 31st March 2005, Wages Rs. 450, Stationary Rs. 216, Furniture Brought.Rs. 750.
7. Subscription received included Rs.120 for the next year.
8. Other Assets as on 1st April 2004 : Building Rs. 33,000,
   Furniture Rs.9,600, Investment Rs.9,000, Motor Cycle Rs. 9600.
9. Depreciate Building 15% and Motor Cycle by 10% and Furniture by Rs. 350.

You are required to prepare Income and Expenditure account and Balance sheet.

(20)

Q 7  Miss Sania & Miss Lakhani provide the following balances as on 31st March,2005 and requests you to prepare Trading & profit & loss Account & Balance Sheet as on that Date.

Name of Account	Rs		Name of Account	Rs
Sania's Drawing	1,40,000		productive Wages	7,60,000
Return Outward	50,000		Machinery	6,40,000
Leasehold Premises	14,99 ,000		Discount allowed	61,000
Lakhani's Capital	7,64,000		Opening Stock	2,40,000
Sales	74,40,000		Bank Overdraft	1,06,500
Lakhani's Drawings	2,00,000		Cash on Hand	62,000
Interest received	36,000		Goodwill	25,000
Outstanding Salary	46,000		General expenses	48,000
Trade Expenses	2,40,000		Debtors	13,40,500
Stationery	76,500		Discount Received	43,500
Suppliers	6,15,000		Bad Debts	18,000
Sanias's Capital	8,40,000		Rent from Tenant	59,000
Purchases	40,50,000		Furniture	6,00,000

Adjustments:-

1. Closing Stock Rs 12,40,000.
2. Outstanding productive wages Rs 30,000. & pre paid
   trade expenses Rs 60,000.
3. Goods amounting to Rs 15,000 were withdrawn by Sania but omitted 
   from the books of Account.
4. Bad Debts Written off Rs 40,500 & create B.D.R. @ 2% on Debtors.
5. Stock of stationery at the end Rs 16,500.
6. Depreciate all fixed Assets by 10%.
7. Rent Receivable from Tenant Rs 6,000.
8. Allowed Interest on Capital @ 5% p.a.

___________________--------------------__________++++++++-----------**********//////////////$$$ $$$$$$ $$$$$$$$$$$$$$@@@@@@@@@@@@@@@!!!!!!!!!!!!!!!!!!!!! ------------------------

( 1.) Attempt any FOUR of the following:
(A.) Write the word/phrase/term which can substitute each of the following statements:-

1. A person who draws the bill.
2. Debit balance of Profit and Loss account.
3. A partner who only lends his name to the firm.
4. Partners of Joint Venture business.
5. Expenses due but not paid

(5)

(B) Answer in one sentence:

1. What is Depreciation?
2. Who is Holder of a Bill?
3. What is a Partnership Deed?
4. What do you mean by partner's Current A/C
5. What is Balance Sheet?

(5)

(c) Multiple chioce:

1. Receipts due to sale of fixed assets or Investment is -------------
   (a) Deferred Revenue Receipt (b) Capital Receipt (c) None of these (d) Revenue Receipt.
2. Discount on bill discounted by the coventurer with the bank is debited to--------------
   (a) Joint Venture Account (b) Bill of Exchange Account (c) Coventurer Account 
   (d) Joint Bank Account.
3. Receipt and payment Account records Receipt and Payment of ----------------
   (a) Capital nature only (b) Revenue nature only (c) Both capital and Revenue nature
   (d) None of these
4. Interest on partners drawings is debited to -----------------A/C
   (a) Partner's Capital Account (b) Trading Account (c) profit and Loss Account.
   (d) Profit and loss appropriation Account.
5. The bill drawn on 9th June 2000 for 67 days will be due for payment on ------------
   (a) 15th August (b) 13th August (c) 16th August (d) 14th August.

(5)

(d) Match the following pairs:

1. Depreciation
2. Dishonour of Bill
3. Subscription Received
4. Goodwill
5. Fluctuating Capital Method

1. Income & Expenditure A/C
2. Intangible Asset
3. Profit & Loss Dr Side
4. Noting Charges
5. Statement of Profit
6. Fixed Asset
7. Capital Balance remain constant
8. Capital Balance changes every year

(5)

(e) State True/False with reasons:

1. When the amount of the bill is paid on its due date it is said to be retired.
2. Joint Venture is a temporary partnership

(5)

(F) Prepare a Bill of Exchange from the following details:-

1. Drawer :- Mrs. Pamela Anderson, Big Boss, Lonavala,
2. Drawee:- Mrs. Dolly Bindra, Malad Mumbai,
3. Payee :- Mrs. Shweta Tiwari
4. Amount :- Rs 1,75,000.
5. Period :- Three Months.
6. Date of Bill :- 15th November 2010
7. Accepted on :- 16th November 2010

(10)

Q 2 On 1st April 2000 Mr. Ben-Hur purchased one Machinery costing Rs.8,00,000.
On 1st July, 2001 additional machinery was purchased for Rs.2,60,000. On 1st October 2003 one more machinery was purchased for Rs 1,60,000 On 31 December 2004 First machinery was sold for Rs 5,40,000. On 1st July 2005 second Machinery was sold at a loss of Rs.23,000. Charge Depreciation @ 10% p.a. under Fixed method and Prepare Machinery Account From 1st April 2000 to 31st March 2006 in the books of Mr. Ben-Hur

OR

(5)

(5)

Q 2 A From the following information find out Goodwill of the firm 
valued at 2.5 years purchase of average profit of last 5 years.

2000	Rs.16,000	(Loss)
2001	Rs.28,000	(profit)
2002	Rs.26,500	(profit)
2003	Rs.42,500	(profit)
2004	Rs.19,000	(profit)

Q 2 (b) Explain importance of computer in modern age.

(12)

3.On 1st May 2007 Mr Clint Eastwood sold goods worth Rs 60,000 to Mr. Lee Van Cleef and received one acceptance for Rs 50,000 at 4 months and a cross Cheque for the balance amount .the acceptance was discounted by the holder @12% p.a. On the due date Mr.Lee Van Cleef paid Rs 20,000 in Cash and accepted a new bill @ 15% p.a. for 2 months but again on the due date Mr. Lee Van Cleef could not honour his acceptance and noting charges incurred by the holder of the bill Rs 500. Mr Lee Van Cleef accepted a new bill for the balance amount at one month and this bill was endorsed to Mr Blondie at a discount of Rs 100. The bill was retired by the acceptor at a discount of Rs 50 Pass journal entries in the books of Mr Clint Eastwood & Show Mr. Clint Eastwood Account in the books of Mr. Lee Van Cleef.

OR

(12)

Q 3 A Show what Journal Entries would be passed in the books of Mr. Sanju Baba to record the following transactions?

1. Mr. Sanju Baba gave his acceptance to Mrs Manyata Dutt for Rs 9800 
   in full settlement of Rs 10,000 due to her
2. Received from Mr. Tony Khosla a bill of Rs 2,000 drawn by Mr. Mani Shankar on Mr. Gulshan Grover
3. Our Banker informs us that they have met our acceptance of Rs 3,500 to Mrs.Richa Sharma
4. Endorsed Mr. Raj's acceptance of Rs 8,000 to Mr. Amar in payment of 
   our own acceptance given to him of like amount.
5. Mr. Mr.Amar endorsed the above bill to Mr. Rajnish.
6. Discounted Murari Bapu's acceptance of Rs 3000 at 6% p.a. 2 months before due date.

(12)

Q 4 Mr.Amardeep of Bhambla and Mrs. Asha of Mandi entered into a joint venture to Sale the goods with the help of Miss Kangana of Shimla at a joint risk of 3:2. 
Mr.Amardeep supplied goods worth Rs 5,60,000 and incurred Rs 7,000 for carriage and Rs. 3,000 for other charges. 
Mrs. Asha supplied Goods worth Rs. 5,50,000 and paid Rs. 4,000 for other charges.
Mr.Amardeep advanced Rs. 1,00,000 to .Mrs. Asha on account of Joint venture. 
Mrs. Asha accepted a bill for Rs. 30,000 drawn by Mr.Amardeep this bill was discounted for Rs. 29,500 and discount was charged to joint venture account.
Miss Kangana sold all the goods for Rs. 16,00,000 and She should be allowed 3% commission on sales and 2% for expenses. 
Miss Kangana remitted Rs 8,00,000 to Mr. Amardeep by a bank draft and balance amount to Mrs. Asha by one month's bill. Mr. Amardeep and Mrs. Asha settled the account by bank draft. 
Show in the books of Mr.Amardeep joint venture account,Mrs. Asha's account and Miss Kangana 's account.

(10)

Q 5 Mr.Moses maintains his books of accounts on single entry system.
The following information is available from his books of accounts.
On 1st April 2009 his assets and liabilities were:-
Sundry Creditors 1,25,000 Cash at Bank 1,88,000 Outstanding Expenses 5,000 Stock 60,000 
Plant and Machinery 2,82,000 Furnitures and Fixtures 64,000,land and Building 2,50,000 
On 31st March 2010 his assets and liabilities were:-
Sundry Creditors Rs.62,000 Cash at Bank Rs.4,18,000 prepaid Expenses Rs.16,,000 Stock Rs.2,50,000, Machinery Rs.2,00,000,Debtors Rs.72,000. Furniture Rs.44,000,land and Building Rs.3,50,000, Motor Car Rs.75,000
During the accounting period his drawing were Rs 72,000 and addition to capital Rs 10,000, Depreciation on Machinery 10% p.a. Furniture @ 10 % p.a. and on Building @ 5% p.a.
Bad Debts Rs 2000 and BDR @ 5% p.a.Interest on capital @ 5% p.a. 
You are required to prepare

1. Opening statement of affairs.
2. Closing statement of affairs.
3. Statement of profit or loss.

(16)

Q 6. From the following Receipts and payments Account of Western Gymkhana for the year ended 
31st March 2007 and other information , prepare Income and Expenditure Account for the year ended and Balance Sheet as on that date.

Receipts	Amt. Rs	Payments	Amt. Rs
To Balance b/d	1,040	By Salaries	1,300
Subscription		By Entertainment Expenses	645
2006	85	By Electric Charges	234
2007	4,000	By General Expenses	350
2008	103	By Rates and taxes	120
To Donations	1,200	By Investments	3,000
To Entertainment Receipts	876	By Stationery and printing	241
To interest	81	By Expensesof 2006	600
To Entrance Fees	1,000	By Fixed Deposit	1,000
		By balance c/f	895
	8,385		8,385

1. The Gymkhana has 450 members paying an annual subscription of
   Rs 10 each. Rs. 20 is still in arrears towards subscription for the year 2006.
2. Carry forward Rs. 20 for rates paid in advance.
3. Provide Rs. 200 for salaries outstanding.
4. The Gymkhana owns land & Building standing in the books of Rs. 15,000 
   and Furniture standing at Rs.1,150,
   on which depreciation at 5% and 15% respectively is to be written off.
5. Interest for 3 months at 12% p.a. is outstanding on Investments.
6. The Capital Fund as on 1.4.2006 was Rs.16,695.
7. 50% of the entrance fees are to be capitalised.
8. Donations are to be capitalised.

(20)

7 Miss.Kangana and Miss. Katrina are partners sharing profits and losses in the ratio 3:2. From the following information prepare Trading and profit and loss account for the year ended as on 31st December,2005 and Balance Sheet as on that date.-
Adjustments:

1. Closing Stock was valued at Cost Price Rs.63,000, Market Price Rs.55,000.
2. Stock of Stationery Rs. 4,500.
3. Goods worth Rs. 10,000 were destroyed by fire and Insurance company admitted a claim of Rs.7,000.
4. Outstanding Expenses: Rent-Rs.2,000 and Salary-Rs.1,500.
5. Goods purchased but omitted from books of accounts Rs 18,000.
6. Provide depreciation at 10% p.a on Machinery and 5% on Furniture.
7. Partners are to be allowed 8% interest on Capital account
8. Write off Rs 1,000 as Bad Debts and create 5% B.D R. on Debtors.
9. Included in Travelling Expenses personal travelling of Miss Kangana Rs.2,500.
10. Included in Carriage, Carriage outward Rs.2,000.

Trial Balance as on 31st December, 2005

Particulars	Debit Rs	Credit Rs
Land and Building	60,000
Machinery	46,000
Salary and Wages	22,000
cash at Bank	32,000
Cash in Hand	11,100
Office Expenses	21,000
Motor Vans	68,000
Miss katrina's Capital		2,00,000
Miss.Kangana's Capital		1,47,000
Carriage	5,000
Purchase and Sales	2,80,000	3,90,000
Returns	2,000	5,500
Bad Debts	2,000
Debtors and Creditors	1,52,800	85,000
Rent	11,100
Bills Payable		68,000
Printing and Stationery	24,500
Travelling Expenses	8,500
Stock(1-1-2004)	45,000
Insurance	8,500
Discount	3,000
Advertisement	15,000
Furniture	78,000
Total	8,95,500.	8,95,500.

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( 1.) Attempt any FOUR of the following:
(A.) Write the word/phrase/term which can substitute each of the following statements:-

1. Realisable amount of the fixed asset at the end of its estimated life.
2. Amount remain unpaid at the end of the accounting period.
3. A bill before acceptance.
4. Credit balance of Profit and Loss Appropriation Account.
5. List of Debit and Credit balances of the Ledger Accounts.

(5)

(B) Answer in one sentence:

1. What are noting charges?
2. When is Joint Bank account opened?
3. What do you mean by deferred revenue expenditure?
4. What is the entry for assets taken over by a partner of a firm?
5. What is single entry system.

(5)

(c) Multiple choice:

1. When Partner's Capitals are fixed interest on capital is credited to________ Accounts.
   (a) Drawings (b) Current (c) Loan (d) Capital
2. Rapid examining of every item in a computer's list of data__________
   (a) Scanning (b) doing fast (c) examining fast (d) Planning
3. Income and Expenditure Account records Receipt and Payment of ----------------
   (a) Capital nature only (b) Revenue nature only (c) Both capital and Revenue nature
   (d) None of these
4. The co-adventurers agree to share _____or_______arising out of business.
   (a) profit or Loss (b) receipt or payment (c) income or expense (d) gain or loss
5. Outstanding expenses should be _______from gross profit to get net profit. 
   (a) deducted (b) added (c) ignored (d) eliminated

(5)

(d) Match the following pairs:

1. Entrance Fees
2. Retirement of bill
3. Subscription Received in Advance
4. Computer
5. Single Entry

1. Payment before due date
2. Speed
3. Statement of Affairs
4. Liabilities side
5. Not for profit concern
6. General Reserve
7. Due Date
8. Donation

(5)

(e) State True/False with reasons:

1. Foreign bills are drawn in sets of three.
2. A Not for profit organisation never undertake trading activities.

(5)

(F) Prepare a Bill of exchange from the following details:-

1. Drawer :- Shyamal Vora, A/06 Gujrat Society, Nehru Road,Vile parle (EAST) Mumbai 400057
2. Drawee:- Siddarth Mataliya, 501,Krishna Villa, Chapal Lane, Santacruz (WEST) Mumbai 400054
3. Payee :- Mr. Ankit Shah
4. Amount :- Rs 20,00,000
5. Period :- One Month.
6. Date of Bill :- 29th November 2010
7. Accepted on :- 29th November 2010

(10)

Q 2 On 1st April 2000 M/S Hemisha & Co. purchased one Machinery costing Rs.4,80,000. On the same date firm spent Rs.20,000 for its erection.. On 1st July, 2001 additional machinery was purchased for Rs.80,000. The machine costing Rs.2,00,000 on(1st April,2000) was sold out on 30th June, 2003 at a profit of Rs 15,000. On the same date a new machine costing Rs.1,50,000 was purchased. On 1st January 2004 balance of first Machinery was sold at 10% less of BOOK VALUE. Every year on 31st March depreciation at the rate of 10% on W.D.V. of machinery was charged
Show Machinery Account from 1st April 2000 to 31st March 2004

OR

(5)

(5)

Q 2 A From the following information find out Goodwill of the firm 
valued at 2 years purchase of average profit of last 3 years.

2005	Rs.36,000	(Loss)
2006	Rs.18,000	(profit)
2007	Rs.26,500	(Loss )
2008	Rs.8,500	(Loss
2009	Rs.56,000	(profit)

Q 2 (b) Explain the functions of computer.

(12)

3.On 1st April 2010 Miss Shreya sold goods worth Rs 40,000 to Miss Sheela and received Rs 2,000 by chaque and an acceptance for the balance amount at three months,which was discounted by the holder @10% p.a..On the due date Miss Sheela paid Rs.10,000 and for balance amount accepted a new bill at one month @ 15% p.a. The bill was sent to Bank for collection but on the due date Miss Sheela paid Rs 25,000 by cheque and accepted a new for the balance amount at one month.On the due date of the new bill Sheela was declared insolvent and her account was written off as bad debts. Show Journal of Sheela

OR

(12)

Q 3 A Show what Journal Entries would be passed in the books of Miss Sruti to record the following transactions?

1. our Banker informed us that Miss Bindu's acceptance for Rs 8,000 dishonoured and noting charges Rs 100 due from Miss Bindu.
2. Mr. Hari's acceptance to us for Rs 2,500 dishonoured and Rs 25 paid by Miss Sonali,the holder in due course.
3. Miss Payal's acceptance to Miss Leena for Rs 5,000 returned dishonoured & We paid noting charges Rs 70 as endorsee.
4. Necessary amount received from concern party with reference to above bill.
5. Our acceptance to Miss Tannu for Rs 500 duly honoured by issuing a promissory note of similar amount.
6. Mr. Ajit's acceptance to us retired before due date by accepting Rs 980 in full settlement of Rs 1,000.

(12)

Q 4 Harsh Naman and Mohit undertook the construction of a building at a contract price of Rs.20,00,000 payable by Bank Draft Rs 14,00,000 and debentures of Rs.6,00,000 They shared profits and losses in the ratio of 1/2, 1/3, 1/6 respectively. They opened a Joint Bank Account. wherein they deposited the following amounts 
Harsh Rs 4,00,000 Naman Rs 3,00,000 and Mohit Rs 2,50,000 
The following payments are made out through Joint Bank Account.

  Purchase of materials Rs 6,50,000 Purchase of Plant Rs 3,45,000 Payment of Wages Rs 2,85,000 Other Charges Rs 1,20,000 Harsh brings the truck of Rs.2,00,000, Naman brings in the material of Rs.3,00,000, Mohit brings mixer worth Rs.50,000.

  the unused materials were taken by Harsh for Rs.50,000.Naman took over the mixer and plant for Rs.85,000. The truck was sold in the market for Rs.1,50,000. 
The contract price was received as per the agreement and Harsh agreed to take over the debentures at a discount of Rs 20,000. The venture was closed. Show Journal entries.

(10)

Q 5 Mr. Kunal and Pranav are partners sharing profits and Losses in the ratio of 5:3 Following Balance Sheet is available as on 1st April 2010 You are required to find out Profit or Loss
as on 30th September 2010.

Liabilities  Kunal's Capital  Pranav's Capital  General Reserve  Creditors  Bank Loan  Total	Rs  2,50,000  1,80,000  40,000  3,70,000  50,000  8,90,000
Assets  Building  Machinery  Stock  Debtors  Bank  Total	Rs  3,00,000  2,40,000  50,000  2,05,000  95,000  8,90,000

1. On 30th September 2010,Assets and Liabilities were as fallow:- 
   Bills Receivable 56,000 Debtors 4,35,000,Furniture 60,000 Motor Car 2,40,000, Creditors 1,50,000 Fixed Deposits 85,000 Bank Balance 32,000, Bills Payable 90,000.Creditors for New Machinery purchased on 1st July 2010 for Rs 1,00,000
2. Charge Depreciation @ 20% P.A. On Closing Balance of Fixed Assets.
3. During the Period Kunal Introduced Rs 60,000 as further capital.
4. Partners Drawings Kunal Rs 30,000 and Pranav Rs 50,000.
5. Bankers took away stock in full satisfaction of Bank Loan Account.
6. Bad Debts amounted to Rs 5,000 and BDR @ 10% on Debtors A/C
7. Credit Interest on Opening Capital balance @10% p.a.
8. Show Closing Statement of affairs, Statement of Profit and Loss , Partner's Capital Accounts

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Q 6. From the following information,Prepare Income and Expenditure Account
for the year ended 31st March 2008 and Balance sheet as on that date.

1. The Society has 1,500 members,each paying annual subscription of Rs. 12.
2. Subscription of Rs. 100 pertaining to the year 2006-2007 are still in arrears.
3. Value of Stationery at hand on 31st March 2007 was Rs. 200 and on 31st March 2008 was Rs.150.
4. Entrance Fees are to be treated as Capital receipts.
5. Salary of Rs. 700 for Current year is Unpaid.
6. Balance as on 31st March 2007:Investment Rs.4,500 Building Rs. 25,000 Furniture Rs.200.
7. Depreciate Building by 2.5% and Furniture by 5%.

Receipts	Amt. Rs	Payments	Amt. Rs
To Cash in hand(1.4.2007)	1,750	By Bank overdraft	2,500
To Subscriptions:-		By Salaries	5,300
2006-2007	150	By Furniture	2,000
2007-2008	14,100	By Investments in Securities	4,000
2008-2009	75	By printing and Stationery	800
To proceeds from Drama	2,500	By Cost of Staging Drama	1,500
To Entrance Fees	800	By Sundry Expenses	1,300
To Interest on Securities	500	By Cash at Bank	2,500
To Sale of old Furniture	200	By cash in Hand	175
	20075		20075

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Q 7 Miss Shreya and Miss Hemisha. are partners sharing profit and losses in the ratio of 2:1. The following is their trial balance as on 31st March 2007.Prepare Trading and Profit and loss account for the year ended 31st March 2007 and Balance Sheet as on that date.

Adjustments:- Closing Stock valued at Rs 40,000. Discounted bills dishonoured on 31st March 2007 for Rs 1,000, No entry is passed for the same. Provide for bad debts Rs 1,000 and Provision for bad and doubtful debts @ 5% on Debtors Write off 20% of Shop Fitting and charge 10% p.a. Depreciation on Land and Building. Interest on capital is to be allowed @ 5% p.a. Miss Shreya is to be allowed salary Rs 6,000 p.a. Interest on Deposits with Suppliers Due Rs 250. Any difference in Balance Sheet must be assumed as Suspense Account.

Particulars	Amount Rs	particulars	Amount Rs
Capital Miss Shreya	40,000	Capital Miss Hemisha	60,000
Land and Building	52,000	Shop Fittings	60,000
Debtors	60,000	Creditors	80,000
Purchases	50,000	Sales	1,02,500
Purchase Return	4,000	Sales Return	2,000
Loan to Miss Sruti	23,000	12% Loan from Mr.N	27,000
Interest on Loan (Cr)	2,300	Interest on Loan (Dr)	2,700
Bad Debts	1,300	Bad Debts Recovery	1,700
Deposits with Suppliers	50,000	Discount Earned	4,000
Drawings Shreya	7,000	Drawings Hemisha	3,000
Bank Balance	15,000	Bills payable	40,000
Bills Receivable	4,200	Opening Stock	5,000
Bank Overdraft	13,700	Goodwill	40,000