SHRIKRISHNA ONLINE TEACHING IN ACCOUNTING

MODEL QUESTION PAPER 1

(Based on H.S.C. Examination of Maharashtra State-India)

 Time 3 Hours        XII COMMERCE (BOOK-KEEPING & ACCOUNTANCY)                         Marks 100

       

1.    Attempt any four of the following: -                                                                                         20

(A) Write the word, term or phrase which can substitute each of the following.                                    

(1) Amount that a fixed asset is expected to realise on its disposal.

(2) The person who endorses the bill.

(3) Credit   balance of joint venture account.

(4 )Expenses paid in advance for the period which has not expired

(5) Excess of average profit over normal profit.

 

  (B)Match the following pairs.  

                                                                                                         

Column A	Column B
(1) Outstanding  expenses	(1) Paying the amount of  the bill  before its maturity
(2) Retirement of a bill	(2) Liabilities side
(3) Joint Bank Account	(3) Discounting of a bill
(4) New profit sharing Ratio	(4) Expenses paid in advance.
(5) Super  profit	(5) Written agreement
	(6) Admission of partner
	(7) Valuation of Goodwill
	(8) Separate books of accounts are maintained

 

?State whether following statement is true or false.

                                                                                                                                                                                                         

     (1) Expenses of dissolution are debited to Realisation account

(2) Bill of Exchange needs acceptance. 

(3) Outstanding Income is a Liability.

         (4)Three grace days are always added to arrive at Average Due Date.

(5) Interest on capital is not allowed as per Partnership Act, 1932.

 

(D) Answer in one sentence only.

 

 (1) What is depreciation?

 (2) Mention the parties to bill of exchange.     

 (3) What is a Balance Sheet?

 (4) What is the relation between co-ventures?

 (5) When is Goodwill Account raised in the books of the firm?

 

 (E) Fill in the blanks:                                                                                                                                    

    (1)  Balance of depreciation account is transferred to 厖..

    (2) All direct expenses are   debited to ?. Account

    (3) The drawer becomes an   厖?on acceptance of a bill.

    (4) A joint venture is a 厖?  Partnership

    (5 ) A bill drawn and accepted for mutual accommodation is called 厖..

 

 (F) Prepare a bill of Exchange from the following details.                                                                                                                                       

 

On 1st January, 2003  , Prabhakar  Patil  of  Shivaji Nagar Pune  draws a 3 months bill for Rs10000 on Ramesh Deshpande, M.G.Road Solapur .Ramesh accepts the bill on 3rd January, 2003.

 

   2 .     Babita  purchased machinery for Rs 20000 on 1^st January 1996.

She purchased additional machinery of Rs 10000 on 1^st July 1996. On 1^st January 1998 she sold  machinery purchased on 1^st July 1996 for Rs 9500.On the same date she purchased additional machinery for Rs 8000. Depreciation is charged   at 10% p.a. on diminishing balance method on 31^st December in each year.

Show  Machinery account and Depreciation account for three years.. (12 Marks)

                              OR

(a)    Find out the Average Due Date.

Date of Bills	Amount Rs.	Term
1-1-1983 10-2-1983 15-3-1983	4,000 5,000 7,000	3 months 2 months 1 months

 

 (b)  The capital employed of a firm is Rs 160000. His profits for last  four years were Rs 32000, Rs 35000, Rs 10000 (Loss), Rs 43000.Normal rate of returns in the business is 10%.Calculate goodwill at 4 years purchase of the super profit.  (6 Marks)

 

  3.     Smita sold goods to Sudha  for Rs 3,000 on January 1, 2003. Sudha accepted the bill for the amount   payable after 3 months. Smita discounted the bill with her bank at 12 % p.a .On the due date , the bill was dishonoured. Smita  paid in cash the amount due to bank on dishonour of the bill. Sudha  paid half the amount of the bill  together with interest  of Rs 100 and  accepted a bill for the balance  at 3 months. Before the due date of the second bill Sudha became bankrupt and only 40 paisa in the rupee was received from her estate as first and final dividend. Give journal entries in the books of  Sudha and Sudha抯  account in the books of Smita.   (12 marks)                                              OR

 For mutual accommodation Dolly drew upon Julie a bill for Rs. 18000 for 3 months, which was accepted by Julie.  Dolly discounted the bill   with her bank   for Rs 17400 and remitted one third  of the proceeds to Julie.

Before the due date, Julie draws another bill for Rs 24000 on Dolly in order to meet funds to meet the first bill, the second bill is discounted for Rs 23700   with the help of which first bill is met and Rs 3800 are remitted to Dolly. Before the due date of second bill, Dolly becomes insolvent and Julie receives a dividend of 50 paisa in the  rupee in full satisfaction..  Draft journal entries in the books of Dolly and Julie.

 

4.Amey and Santosh  entered  in to joint venture and undertook a building construction for Sandeep   Traders ltd. Nanded  at an agreed price of Rs 300,000.Amey brought in Rs 60000 and Santosh Rs 40,000.They agreed to share profits and losses equally. They also agreed to accept contract amount as Rs 1,80,000 in cash and Rs 120000 in fully paid shares of the company. After the completion of contract they  received the full contract amount.

         The other details are as under: Wages Rs 60,000, and materials Rs 80,000. Amey supplied material for Rs 15,000 and paid legal charges Rs 6000. Santosh paid labour charges Rs 6000. Amey agreed to accept all the shares at an agreed valuation of Rs 112000.Santosh took up the unused material for Rs 8000.Prepare Joint Venture Account, Joint Bank Account and Covertures Accounts.  (12 marks)

5.    Kamal and  Amruta are partners in a firm, sharing profits and losses in the ratio of 3:2.Their Balance sheet on 31^st December 2002 was as under.

Liabilities	Amount	Assets	Amount
Sundry creditors	20000	Cash in hand	24000
Bills Payable	4000	Sundry Debtors 20000 Less: R.D.D    -  1500	18500
Kamal抯 capital	40000	Stock	12500
Amruta抯 capital	30000	Investments	18000
General Reserve	20000	Plant and Machinery	12000
		Land and Building	29000
Total	114000		114000

 

On 1^st January 2003 they are to admit Mrunal on the following terms.

1 ) Mrunal should be given 1/4^th share in future profits and for that She should bring Rs 20000 as capital.

2) Goodwill of he firm is raised at   Rs 30000

3) An amount of Rs 1000 is to be provided for outstanding bill for repairs..

4) Depreciate Plant and Machinery 7.5% 4) Appreciate Land and Building by 20%.

5) Stock is valued at Rs 10500 and Investments at Rs  24000.

6) R.D.D. should be maintained at 6% of sundry debtors.

Or

Mohan, Sohan and Rohan were partners in a business sharing profit and losses in the ratio of 2:1:1 respectively.  Their Balance Sheet as on 31st December 1986 was as follows:

Balance Sheet as on 31/12/1986

      Mohan died  on 1st April 1987.

      (1)  The partnership Deed provided that: (a) the deceased partner抯 share of profit upto date of his death should be based on the average profits of the last two years profit.  (b) his shar of goodwill should be calculated at three years purchase of the average of the profits for the last four years profits which were: 1983 ?Rs. 16,000/-, 1984 ?Rs. 12,000, 1985 ?Rs. 8,000/-, 1986 Rs. 4,000/-.     (2)        Land and Building was to be revalued at Rs. 7,000/- and R.D.D. was to be created at Rs. 200/-.

      (3)  Interest on capital was to be allowed at 10% p.a. and charged interest on drawings Rs. 100/-.

      (4)  The drawings of Mohan upto the date of his death amounted to Rs.1,000/-.

      Prepare: (a) Profit and Loss Adjustment A/c. (b) Give working of share of profit and share of goodwill of Mohan.  (c) Mohan抯 Capital A/c showing amount payable to his executors.

Prepare Profit and Loss Adjustment Account, Partner抯 capital Accounts and Balance Sheet of the new firm.  (12 marks)

 

6.  Following is the balance sheet of   Asha, Nisha and Nirasha who were sharing profits and losses in the equal ratio  They dissolved the partnership firm on 31^st December 2000 when their position was as under.

                                          Balance Sheet as on 31^st December, 1998

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Sundry creditors	3000	Goodwill	3500
Bills Payable	2500	Land and Building	6000
Asha抯 Loan	10500	Plant and Machinery	12000
Capitals:		Investments	8000
Asha	25000	Stock	6000
Nisha	20000	Debtors           6000 Less: R.D.D.     1000	5000
		Cash at Bank	10000
		Nirasha抯 Captal	4500
		P/L Account	6000
	61000		61000

The assets realised as under.

(a)    Debtors Rs 1600, Investments Rs 5000, land and building Rs 8000.

(b)     Stock was taken by Asha at 25% below and Plant by Nisha at book value.

(c)     Creditors were paid at a rebate of Rs 400.

(d)    The expenses of realisation amounted to Rs 1500.

(e)    Asha agreed to accept Rs 22500 in full settlement of her loan account.

(f)     Nirasha is insolvent and only 50 paisa in a rupee could be recovered from her private estate.

Pass necessary journal entries in the books of the firm.  (12 Marks)

7   Raja, Rani and Gulam were partners sharing profits & losses in the ratio of 2:2:1 respectively.  The Trial Balance of their firm on 31^st Dec. 2002 was as follows:

Trial Balance

Prepare trading and profit & loss Account for the year ended 31^st Dec. 1979 and the Balance sheet as on hat date after making the following adjustments:

Goods worth Rs.3000 were destroyed by fire and Insurance Company admitted the claim for Rs. 1800. (2) Outstanding Expenses were Wages of Rs.500 and Electricity Rs.300.

(3)Closing stock was valued at Rs. 24000. (4) Provide for Doubtful debts @ 5% of Debtors. (5) Depreciate building. By 5%, Machinery by 10%.and Motor car by 10% (20 Marks)