ACCOUNTS IMPORTANT QUESTIONS TO PRACTICE FOR BOARD EXAMS


DEPRECIATION QUESTION FOR PRACTICE 

1. M/s. J.K Company, Maroda, purchased machinery for Rs.80,000 on 1st April, 2002.
Company purchased additional machinery for Rs.36,000 on 1st October, 2003.
The company charges depreciation @ 10% p.a. on the original cost.
The financial year of the company ends on 31st March each year.
On 30th September, 2004 a part of the machinery, original cost of which was Rs.30,000 on 1st April, 2002 was sold by the company for 22,000. Prepare Machinery Account for 3 years and give Journal Entries for the year 2002-2003. (Ans. 65600)

2. 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 A/c and depreciation A/c for years 2004-05, 2005-06 and 2006-07. (Ans 59940)

3. Renuka Trading Company Ambajogai purchased furniture on 1st April, 2002 for Rs.50,000. In The same year on 1st October additional furniture was purchased for Rs.20,000. On 1st October, 2003 the furniture purchased on 1st April, 2002 was sold for Rs.30,000 and on the same date, new furniture was purchased for Rs.25,000. The company charges depreciation at 10% p.a. on Reducing balance method.
Prepare Furniture A/c and Depreciation A/c for three years ending on 31-3-03, 31-3-04 and 31-3-05. (Ans. 36765 at the end of third year)

4. M/s Jalaram Mill, Mul, 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 Balance Method. On 31st March, 2004, the machinery which was purchased on 1st October, 2001 was sold for Rs. 12,000. Prepare - Machinery A/c and Depreciation A/c for the years 2001 – 2002, 2002 - 2003 and 2003 - 2004. [ANS. 41, 328]

JOINT VENTURE QUESTION FOR PRACTICE 

Q 1 Kirish, Roshan and Mohan undertook the construction of a building at a contract price of Rs.25,00,000 payable by Bank Draft Rs 20,00,000 and debentures of Rs.5,00,000 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 Kirish Rs 3,00,000 Roshan Rs 5,00,000 and Mohan Rs 7,00,000 The following payments are made out through Joint Bank Account.  Purchase of materials Rs 8,50,000 Purchase of Plant Rs 1,45,000 Payment of Wages Rs 5,85,000 Other Charges Rs 2,20,000 Kirish brings the truck of Rs.1,00,000, Roshan brings in the material of Rs.3,50,000, Mohan brings mixer worth Rs.80,000. The unused materials were taken by Kirish for Rs.70,000. Roshan took over the mixer and plant for Rs.1,05,000. The truck was sold in the market for Rs.80,000. The contract price was received as per the agreement and Kirish agreed to take over the debentures at a discount of Rs 5,000. The venture was closed. Show Joint Venture Account, Joint Bank Account, Co-Venturers Capital Accounts .


     In the books of Joint venture
Joint venture A/c
Particulars
JF
Rs.
Rs.
Particulars
JF
Rs.
Rs.
To Joint Bank’s A/c
Purchase of materials
Purchase of Plant
Payment of wages
Other charges

To Kirish’s A/c
(Truck brought)
To Roshan’s A/c
(Material Brought)
To Mohan’s A/c
(Mixer Brought)

To Debentures A/c
(Discount made on
Debentures)

To Profit Made On
Joint Venture A/c
To Kirish
To Roshan
To Mohan



8,50,000
1,45,000
5,85,000
2,20,000














210000
140000
70000




18,00,000

1,00,000

3,50,000

80,000


5000







4,20,000
By Joint Bank A/c
{Contract Price Received
in the form of Bank Draft}
By Debentures A/c
{Contract Price was received
 in the form of debentures)
By Kirish’s A/c
{Unused materials were
taken over}
By Roshan’s A/c
{Mixer % Plant took over}
By Joint Bank A/c
{Truck  was sold in
the market}



20,00,000


5,00,000


70,000


1,05,000

80,000



2755000



2755000

Co venturers’ A/c
Particulars
JF
Kirish
Roshan
Mohan
Particulars
JF
Kirish
Roshan
Mohan
To Joint venture A/c
To Debentures A/c



To Joint Bank A/c
(Balancing Figure)

70,000

4,95,000



45000
1,05,000





8,85,000






8,50,000
By Joint Bank’s A/c
By Joint Venture’s A/c
By Joint Ventures A/c
(Profit)


3,00,000
1,00,000

2,10,000


5,00,000
3,50,000

1,40,000
7,00,000
80,000

70,000


6,10,000
9,90,000
8,50,000


6,10,000
9,90,000
8,50,000

Joint Bank A/c
Particulars
JF
Rs.
Rs.
Particulars
JF
Rs.
Rs.
To Krish’s A/c
To Roshan’s A/c
To Mohan’s A/c
To Joint Venture A/c
To Joint Venture A/c



3,00,000
5,00,000
7,00,000
80,000
20,00,000

By Joint venture A/c
By Kirish’s A/c
By Roshan’s A/c
By Mohan’s A/c


18,00,000
45000
8,85,000
8,50,000



35,80,000



35,80,000

Debentures A/c
Particulars
JF
Rs.
Rs.
Particulars
JF
Rs.
Rs.
To Debentures A/c



5,00,000
By Kirish’s A/c
By Joint Ventures A/c
(Balancing Figure)


4,95,000
5000



5,00,000



5,00,000


Q 2 Mr Philip and Mr Anand entered into a joint venture to consign Pump sets to Mr Vasanth to be sold on their joint risk which is in the ratio of 2:1 respectively.
Mr Philip sent 900 pump sets at Rs 1,000 each, paying carriage Rs 18,000, Insurance Rs 12,000 and for other expenses Rs 11,000 in cash. Mr Anand sent 600 pump sets @ Rs 1,500 each, paying Rs 20,000 carriage and Rs 16,000 for other expenses. Mr .Philip advance Rs 40,000 to Mr Anand on account of Joint Venture. All the Pump sets were sold by Mr Vasanth for Rs 2,000 each, Mr Vasanth is to be allowed 2% commission on Sales & 3% for expenses. Mr. Vasanth remitted Rs. 1,00,000 to Mr. Philip and balance amount to Mr. Anand. Co-Venturers settled their accounts. Prepare in the books of Mr Anand, Joint venture A/C Mr Philip's A/C and Mr Vasanth's A/C. (Ans. Profit 973000, Balance in Philip account is 15,29,667)

Q 3 Mr.Krishna of Mumbai and Miss Radha of Pune entered into a joint venture to sale the goods with the help of their agent Mr.prem of Ratlam. Mr. Prem is to be allowed 3% commission on sales and 2% for expenses. Mr.Krishna advanced Rs 1,00,000 to Miss Radha on account of Joint Venture. Mr. Krishna supplied goods worth Rs. 7,00,000 to Mr. Prem on account of Joint venture and incurred Rs.20,000 for expenses.Miss Radha supplied goods worth Rs 5,00,000 to Mr. Prem and incurred Rs 10,000 on account of carriage outward. Miss Radha accepted a bill at 2 months for Rs 1,00,000 drawn by Mr.Krishna which is discounted by the holder @ 10% p.a. All the goods were sold by Mr. Prem for Rs 20,00,000. Mr. Prem remitted Rs 10,00,000 to Mr.Krishna and balance amount to Miss Radha. Joint Venture was closed accounts were settled with the help of Bank account. Prepare in the books of Mr.Krishna Joint venture account, Miss Radha's A/C and Mr. Prem's account [ANS. PROFIT 6,68,333 AND BALANCE IN RADHA ACCOUNT IS 55834]

Q 4 Govind of Churchgate and Gopal of Bandra entered into a joint venture to purchase and sell cycles.they decided to share profit and loss equally. Govind purchased 200 cycles at Rs 800 each and paid Rs 1,200 for carriage Rs 2,500 for insurance and draws a bill for Rs 8,000 on Gopal which was duly accepted by Gopal. The bill was discounted for Rs.7,500. Gopal purchased 300 cycles at Rs 700 each and spent Rs 20 per cycle for carriage and Rs 8,000 for selling expenses. Govind sold 150 cycles at Rs 1,250 each.All the remaining cycles for venture were sold by Gopal at Rs.1,000 each.Joint Venture was completed and both the parties settled their accounts Show in the books of Govind., Joint Venture Account and Gopal's Account. [ANS. PROFIT 149300, BALANCE IN GOVIND ACCOUNT IS 43350] 

Q 5 Mr. Munna of Mehsana and Mr. pappu of Palanpur entered into a joint venture sharing profit and losses in the ratio of 4:3.Mr.Munna sent 1,200 bags of Sugar @ Rs.600 each paying for freight and other charges Rs. 27,000 and Mr. pappu sent 1,400 bags of Sugar @ Rs 700 each paying insurance Rs. 16,000 and other expenses of Rs. 11,000. Mr.Munna advanced to Mr.pappu Rs. 2,00,000 on account of the venture. All the bags of the Sugar were sold by Mr. Chintu for Rs.18,00,000 of which he deducted 4% for his expenses and 5% for his commission .Mr. Chintu remitted total amount to Mr. Munna by a bank draft .  They settle the Accounts by bank draft.
Show in the books of Munna Joint Venture A/C, Pappu's A/C. [ANS. LOSS 1,16,000, BALANCE IN PAPPU ACCOUNT IS 757286 ]

Q 6.Mr.Keshav of Mathura and Mr. Krishna of Vrandavan entered into a joint venture to sale the goods with the help of their agent Mr. Arjun of Jaipur. Mr. Arjun is to be allowed 4% commission on sales and 5% of Net sales for expenses.
Mr. Keshav advanced Rs 2,00,000 to Mr. Krishna on account of joint venture. Mr. Keshav supplied goods worth Rs. 9,00,000 to Mr. Arjun on account of Joint venture and incurred Rs.30,000 for expenses.
Mr. Krishna supplied goods worth Rs 6,00,000 to Mr. Arjun and incurred Rs 10,000 on account of carriage outward. Mr. Krishna accepted a bill at 3 months for Rs 1,00,000 drawn by Mr.Keshav which is discounted by the holder for Rs ,97,000. All the goods were sold by Mr. Arjun for Rs 18,00,000.
Mr. Arjun remitted Rs 10,00,000 to Mr.Krishna and balance amount to Mr. Keshav. Joint Venture was closed accounts were settled with the help of Bank account. Show Journal of Keshav. [ANS. PROFIT 95000, BALANCE IN KRISHNA A/C 757500]

BILL OF EXCHANGE QUESTIONS FOR PRACTICE ( FIRST DAY)

1. Sanjay drew on Pappu a bill for Rs.12,000 at 3 months. Pappu accepted it. (12)
On the same day Sanjay discounted the bill with his bank at 10%p.a.
On due date Pappu dishonoured the bill. Noting charges were Rs.200.
Pappu paid Rs.4,000 in cash and accepted a new bill for balance amount.
Sanjay endorsed the new bill to Vinayak.
Pass Journal entries in the books of sanjay and show sanjay's account in the ledger of Pappu.

2. Journalise the following transactions in the books of Ranbir.
a)    Sonam informs Ranbir that Salman's acceptance for Rs.3,200 endorse to Sonam has been dishonoured and the noting charges amounted to Rs.80.
b)    Ravindra renews his acceptance to Ranbir for Rs.4,800 by paying Rs.1,800 in cash and accepts a fresh bill for the balance, plus interest at 12%p.a. for 2 months.
c)     Dilip's acceptance to Ranbir for Rs.8,000 is retired one month before the due date at a discount of 12%p.a.
d)    The bank informs Ranbir that Shirin's acceptance for Rs.5,500 to Ranbir discounted with the bank earlier has been dishonoured and the noting charges amounted to Rs.75.

3. Shridhar owed Rs. 24,000 to Giridhar,hence accepted a bill drawn on him by Giridhar at 3 months on 12th March, 2007. On the same date Giridhar endorsed it to Murlidhar. On 12th June, 2007 Shridhar requested Giridhar for the renewal of the bill. Giridhar agreed on the condition that Shridhar should pay half the amount due immediately by cheque and should accept a bill for the balance along with interest @ 10% p.a. for 2 months. These arrangement were carried through. On the same date, Giridhar sent the new bill to the bank for collection. On the due date, the new bill was honoured and bank charges debited were Rs. 100. Give Journal Entries and show Shridhar's A/c in the books of Giridhar.

4. Journalise the following transactions in the books of Ashwin . (12)
(a) Bank informed that Sachin's acceptance for Rs. 5,750 sent to bank for collection had been honoured and bank charges debited were Rs. 50.
(b) Nitin renewed his acceptance for Rs. 7,200 by paying Rs. 2,200 in cash and accepting a new bill for the balance plus interest @ 8% p.a. for 3 months.
(c) Discharged our acceptance to Pravin for Rs. 4,250 by endorsing Bhavin's acceptance to us for Rs. 4,000
(d) Jatin who had accepted Ashwin's bill of Rs. 8,500 was declared insolvent and only 40% of the amount due could be recovered from his estate.

5. Prakash owes Subhash Rs.20,000.Prakash accepted a bill for three months drawn by Subhash for Rs.20,000. Subhash discounted the bill with bank @ 10% p.a. immediately. On the due date the bill was dishonoured. Noting charge amounted to Rs.100 paid by Bank. Prakash paid half the amount of the bill and the full amount of the noting charges and accepted a fresh bill for the balance including interest Rs.500. Pass journal entries in the books of Subhash and show Prakash Account. (12)
OR
6. Journalise the following transactions in the books of Sharad.
(a) Hemant informed Sharad that Vasant's acceptance for Rs.5,000 endorsed to Hemant has been dishonoured and noting charges amounted to Rs.50.
(b) Pramod renews his acceptance to Sharad for Rs.15,000 by paying Rs.5,000 in cash and accepting a fresh bill for balance plus interest @ 10% p.a. for three months..
(c) Shishir retired his acceptance to Sharad for Rs.7,600 by paying Rs.7,500 in cash.
(d) Sharad sent a bill of Amol for Rs.10,000 to bank for collection. But bank informed that the bill has been dishonoured by Amol.

7. Journalise the following transactions in the books of ‘Avadhoot’.
a.        Nandini informs Avadhoot that Nisha’s acceptance for Rs. 5000 endorsed to Nandini has been dishonoured. Noting charges amounted to Rs. 100.
b.       Dhanashri renews her acceptance to Avadhoot for Rs. 2400 by paying Rs. 1200 in cash and accepting a new bill for the balance plus interest at 12% p.a. for 3 months.
c.        Honagekar’s acceptance to Avadhoot Rs. 6000 retired one month before its due date at a discount of 20% p.a.
d.       Bank informs to Avadhoot that the dishonour of Shashikala’s acceptance for Rs. 4000 discounted with the bank. Noting charges amounted to Rs. 70.
e.        Avadhoot sent a bill of Pravin for Rs. 6000 to the bank for collection.

8. Journalise the following transactions in the books of Mr. Vivek.
a.         On 1st 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 1st 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 5th February, 2010 Dinesh retired his acceptance to Vivek for Rs. 12000 by paying Rs. 11600 in cash.
d..         On 1st 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.


SINGLE ENTRY SYSTEM QUESTIONS FOR PRACTICE 

1.  Following records of Mr. Raj were kept on single entry system. 
Particulars
31.3.2006
Rs.
31.3.2007
Rs.
Stock
Furniture
Plant and Machinery
Loan taken
Bank balance
Debtors
Creditors
15,000
53,500
42,500
21,000
1,900
43,000
18,000
14,000
44,000
55,500
21,000
2,100
35,000
14,900
Mr. Raj invested Rs.4,000 in the business.
Also he had withdrawn Rs.15,000 for his private expenses from business.
Rs.500 to be provided for bad debts.
Depreciate plant and machinery @ 5%and furniture @5%.
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.
[CAPITAL AT THE END OF THE YEAR 114700, CAPITAL AT THE BEGINNING OF THE YEAR 116900, TRADING PROFIT 8800, NET PROFIT 3325] 

2. Harshada keeps her books on single entry system and following information is disclosed by her: (10)
Particulars
31-3-2005
Rs.
31-3-2006
Rs.
Cash at bank
Stock in Trade
Debtors
Furniture
Sundry Creditors
Bills Payable
Loan from Vimal
Investments
10,000
8,000
15,000
20,000
20,000
1,000
-
-
15,000
10,000
25,000
20,000
30,000
5,000
3,000
12,000
Harshada had withdrawn Rs.2,500 in cash and took goods worth Rs.500 for her private use from business.
She sold her private car for Rs.10,000 and invested it as additional capital.
Furniture is to be depreciated by 10% and Reserve for Doubtful Debts is to be maintained @ 5% on Debtors.
Prepare Opening and Closing Statement of Affairs and Profit / Loss statement for the year ending 31.03.2006.
[CAPITAL AT THE END OF THE YEAR 44,000, CAPITAL AT THE BEGINNING OF THE YEAR 32000, TRADING PROFIT 5000, NET PROFIT 1750] 

3. Mr. Balasaheb is dealing in the business of fruits. He maintains his accounting record with single entry. The following figures are taken from his record. 
Particulars
Balance as on
1.4.2004
Balance as on
31.3.2005
Land and Building
Machinery
Furniture
Sundry Debtors
Stock
Cash Balance
Bills Receivable
Sundry Creditors
Bank Overdraft
Bank Balance
40,000
30,000
10,000
20,000
10,000
5,000
5,000
25,000
5,000
-
50,000
40,000
10,000
40,000
25,000
15,000
5,000
25,000
-
10,000
Mr. Balassheb introduced Rs. 10,000 as further capital.
He spent Rs. 45,000 from the business for his daughter's marriage.
Depreciate Land and Building by Rs. 5,000
Create 5% Reserve for Doubtful Debts on Sundry Debtors.
Prepare:
1.       Opening Statement of Affairs.
2.       Closing Statement of Affairs.
3.       Statement of Profit and Loss.
[CAPITAL AT THE END OF THE YEAR 170000 , CAPITAL AT THE BEGINNING OF THE YEAR 90000 , TRADING PROFIT 115000, NET PROFIT 108000] 


4. 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 1st 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 31st March, 2010.

[CAPITAL AT THE END OF THE YEAR 79000, CAPITAL AT THE BEGINNING OF THE YEAR 66000, TRADING PROFIT 6025, NET PROFIT 2575] 

NPO TO BE PRACTICED FOR BOARD EXAM (2ND DAY)
1.     The following is the Receipts and payments Account of Modern Sports Club, Satara, for the year ended on 31stMarch, 2007.

Receipts and Payments Account for the year ended on 31st March, 2007.
Receipts
Amount
Payments
Amount
To Balance b/d
To Subscription
To Entrance Fees
To Interest on Investments
To Proceeds from Matches
To Life member fees
1490
13600
520
840
5180
5000
By Upkeep of Garden
By wages
By Salary
By Ground rent
By Printing
By Postage
By Bank balance
By Balance c/d
9500
2360
7000
210
930
190
5000
1440
26630
26630
Adjustments:
1.        Ledge balances of the club as on 31.3.2006 were
Capital fund Rs. 66,430, Club house and ground Rs. 40,000, Investments Rs. 18,640, furniture Rs. 6,400, Outstanding subscription Rs. 600.
2.      Printing includes Rs. 200, Upkeep of garden includes Rs. 500 and Subscription includes Rs. 400 for the previous year.
3.      Entrance fees are to be capitalized.
4.      The Rotary club of Satara owed Rs. 210 for the use of club hall.
5.      Provide 10% depreciation on furniture.
6.      Subscriptions outstanding for the current year were Rs. 1,000.
Prepare _
Income and Expenditure account for the year ended 31st March, 2007 and Balance Sheet as on that date. [SURPLUS 300, TALLY 72250]

2. From the following Balance Sheet and Receipts and Payments A/c of Padmavati High School,
Thane, prepare Income and Expenditure A/c for the year ended 31-03-2007 and balance sheet as
on that date. (16)                Trial Balance Sheet as on 31 st March, 2006
Debit Balance
Amount
Rs.
Credit Balance
Amount
Rs.
Entrance Fees
Capital Fund
30,000
5,19,000
Furniture
Computer Laboratory
Library
Investment
Cash in Hand
Cash at Bank
Outstanding Tuition Fees
84,000
1,00,000
1,25,000
2,00,000
5,000
15,000
20,000
5,49,000
5,49,000

Receipts and Payment Account for year ended 31 st March, 2007
Receipts
Amount
Rs.
Payments
Amount
Rs.
To Balance b/d
Cash in Hand
Cash at Bank
To Tuition fees
To Terms fees
To Government grant (Salary)
To Sundry receipts
To Sale of old newspapers
To Interest on investments
To Donation of library

5,000
15,000
4,00,000
1,20,000
1,04,500
11,000
500
10,000
1,50,000
By Furniture purchased
By Salaries
By Rent
By Sundry expenses
By Stationery
By Annual gathering expenses
By Repairs of buildings
By Insurance
By Balance b/d
Cash in Hand
Cash at Bank
52,000
3,00,000
1,40,000
27,000
49,000
24,000
32,500
20,000

44,500
1,27,000
8,16,000
8,16,000
Adjustment :
1.        Tuition fees receivable Rs. 1,50,000.
2.        Salary still payable Rs. 1,50,000.
3.        Rent paid in advance Rs. 20,000.
4.        Insurance premium is paid for one year ending 30-09-07.
5.        Depreciate furniture and library at 10% and computer laboratory at 20%. Depreciation to be charged on the closing balances of assets.

[SURPLUS 17400, TALLY 866400]

3.  Dr. Arjun Patil commenced Medical practice on 1.04.2006. He has prepared the following Receipts and Payments Account for the years 31.03.2007. (16)
Receipts and Payments Account For the year 31 st March, 2007
Receipts
Amount
Rs.
Payments
Amount
Rs.
To cash introduced
(Capital Fund)
To Income from Visits
To Receipts from Dispensary
To Miscellaneous receipts
To Interest received on Investment
To Receipts from Operation fees
30,000

40,000
80,000
1,000
500
10,000
By Furniture
By Honorarium to Doctor
By Equipments
By Purchase of Drugs
By Compounders Salary
By Rent of Dispensary
By Conveyance charges
By Stationary
By Operation Expenses
By Lighting
By Journals and Newspapers
By Telephone expenses
By Investment
By Balance c/d
(Closing balance)
40,000
10,000
50,000
10,000
12,000
6,000
2,000
600
8,000
400
800
500
7,200
14,000
Total
1,61,500
1,61,500
Adjustment:
1.        Rs.5,000 were still to be received on account of the visits.
2.        Compounders salary of Rs.3,000 and Bill of stationary Rs.1,000 and Rent of dispensary Rs.1,000 are outstanding.
3.        25% amount of conveyance charges were for private use.
4.        Stock of Drugs on hand was estimated at Rs. 2,000.
5.        Furniture and Equipments are to be depreciated at 10%.
Prepare - Income and Expenditure Account for year ended 31st March, 2007 and Balance Sheet as on that date from the above information. [SURPLUS 74700, TALLY 109200]

4. Following is the summary of Receipts and Payments of Jay Bajrangbali Vyayam Shala, Ajara for the year ending on 31.03.2007. (16)
Receipts and Payments Accounts
For the year ended on 31 st March, 2007
Receipts
Amount
Rs.
Payments
Amount
Rs.
To balance b/d
To Subsciption
2005-06
2006-07
To Donation for Building
To Receipts from Entertainments
To Interest
To Entrance fees
41,600

4,120
1,60,000
50,000
36,440
3,240
45,000
By Salary
By Lighting
By General Expenses
By Entertainment Expenses
By Taxes paid
By Printing and Stationery
By Expenses paid of 2005-06
By Investment
By Fixed Deposit with Ajara Urban Bank
By Balance c/d
55,000
10,000
15,360
25,800
5,000
9,440
24,000
1,20,000
40,000
35,800
Total
3,40,400
Total
3,40,400
Adjustment :
1.        Jay Bajrangbali Vyayam Shala has 4500 members paying annual subscription of Rs.40 each.
2.        Provide for outstanding salary Rs.5,000.
3.        On 1.4.2006 the assets stood as under :
(a) Land and Building Rs.60,000
(b) Furniture Rs.46,000
Depreciate the above assets at 10% p.a.
1.        Interest on Investment Rs.2,000 is not received.
2.        Capital Fund was Rs.1,27,720 on 1.4.2006.
3.        50% of the entrance fees is to be capitalized. Prepare:
Income and Expenditure Account for the year ended 31st March, 2007 and Balance Sheet as on that date. [SURPLUS 107980, TALLY 313200]

5. 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 31st March, 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

44000
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.
[DEFICIT 39,100, TALLY 10,07,900]


6. Following is the Receipts and Payaments A/c of Phoenix Cricket Club, Patan. (16)
Dr. Receipts and Payments Accounts for the year ended 31 st March, 2007 Cr.
Receipts
Amount
Rs.
Payments
Amount
Rs.
To balance b/d
To Subsciption
2005-06
2006-07
2007-08
To Donation
To Entertainment receipts
To Interest
To Entrance fees
1,040

85
4,000
103
1,200
876
81
1,000
By Salaries
By Entertainment expenses
By Electricity charges
By General expenses
By Rent and Taxes
By Investments
By Printing and Stationery
By Expenses of 2005-06
By Fixed Deposit
By Balance c/d
1,300
645
234
350
120
3,000
241
600
1,000
895
8,385
8,385
Information :
1.        Club and 450 members paying an annual subscription of Rs. 10 each.
2.        Rs. 20 is still in arrears towards subscription for the year 2005-06.
3.        Carry forward Rs. 20 for rent paid in advance.
4.        Outstanding salary Rs. 200.
5.        Land and Building Rs. 15,000 and Furniture Rs. 1,150 in standing in the books on 1st April, 2006 on which depreciation at 5% and 20% is to be written off respectively.
6.        Capital fund on 1.4.2006 was Rs. 16,695.
7.        50% of the entrance fees and full domain are to be capitalized.
Prepare : From the above Receipts and Payments A/c and information, Income and Expenditure A/c for the year ended 31st March, 2007 and Balance Sheet as on that date.
[SURPLUS 1907, TALLY 20605]

FINAL ACCOUNT QUESTIONS FOR PRACTICE (2ND DAY)

1.  From the following Trial Balance and Adjustments of Kumbhar and Maroti you are required to
prepare Trading and Profit and Loss Account for the year ended on 31st March, 2005 and Balance
Sheet as on that date. 
Debit Balance
Rs.
Credit Balance
Rs.
Stock (1.4.2004)
Salary and Wages
Cash
Purchases
Sundry expenses
Wages
Bills Receivable
Travelling Expenses
Bad Debts
Factory Expenses
Commission
Investments
Debtors
Tools and Equipments
Furniture
Goodwill
Building
35000
4200
10000
225200
13600
12000
6000
2000
3000
8000
4000
20000
40000
6000
12000
21000
50000
Sales
Discount
Creditors
Bank Overdraft
Interest on Investment
Capitals:
Kumbhar
Maroti
330000
4000
20000
10000
8000

60000
40000
472000
472000

Adjustments:
1.        Partners share Profits and Losses in the ratio of their Capitals.
2.        Closing stock is valued at Cost Price Rs.40,000 and at Market Price Rs.45,000.
3.        Kumbhar has withdrawn goods worth Rs.1,200 for his own use, but no entry is made in the books.
4.        Uninsured goods worth Rs.12,000 were lost by fire.
5.        Rs.450 are to be written off as bad debts.
6.        Unpaid Expense :
Salary and Wages Rs.800
Rent Rs.1,200.
7. Depreciate building @ 7 ½ % p.a.

[G.P. 103000, N.P. 70000, TALLY 200800]

2. Following is the Trial Balance of Premlal and Sundarlal as on 31 st March, 2006. (20)
Trial Balance as on 31 st March, 2006
Debit Balance
Amount
Rs.
Credit Balance
Amount
Rs.
Stock on 1-4-2005
Purchases
Drawings :  Premlal
Sundarlal
Sales Return
Wages :Productive
Unproductive
Salaries
Rent, Rates and Insurance
Bad Debts
Discount allowed
Machinery
Building
Sundry Debtors
Cash
90,000
2,25,000
33,000
30,000
7,200
10,500
1,800
18,600
10,200
1,200
3,900
45,000
1,08,600
1,53,000
3,000
Sales
Purchase Returns
Discount received
Sundry Creditors
Capital : Premlal
Sundarlal
Bank Overdraft
3,75,000
3,000
3,000
90,000
1,05,000
1,35,000
30,000
7,41,000
7,41,000
Adjustments:
1.        Closing stock was valued on 31-03-2006 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. 1,600 paid for one year ending on 30th June, 2006.
4.        Maintain Reserve for doubtful debts at 5% on debtors.
5.        Depreciate building by 5% and machinery at 10% p.a.
6.        Goods costing months interest is due on Bank Overdraft at 10% p.a.
Prepare: (1) Trading and Profit and Loss A/c for the year ended 31st March, 2006 and
(2) Balance Sheet as on that date.
[G.P. 97200, N.P.43320, TALLY 342420]

3. Ganga and Godawari are partners sharing profits and losses equally the Trial Balance of their firm on 31st March, 2007 was as following. (20)
Trial Balance as on 31 st March, 2007
Particulars
Debit Balance
Rs.
Credit Balance
Rs.
Stock (1-4-2006)
Purchases and Sales
Return Inward
Carriage
Power and Fuel
Wages
Trade Expenses
Debtors and Creditors
Salaries
Insurance
Postage
Commission
Plant and Machinery
Furniture
Advertisement
Building
Drawings :
Ganga
Godawari
CAPITAL:
Ganga
Godawari
12% Bank loan taken on 1.10.2006
Cash in hand
80,000
4,00,000
30,000
7,500
40,000
35,000
8,000
80,000
72,000
6,000
3,000
8,000
2,00,000
80,000
15,000
4,00,000

8,000
10,000




7,500

7,68,000





60,000



12,000








2,50,000
2,50,000
1,50,000
14,90,000
14,90,000
Adjustments:
1.        Stock on 31.3.2007 was valued at Cost price Rs. 1,00,000 and Market price Rs. 1,20,000.
2.        Depreciate plant and Machinery and Buildings at 20% and 10% respectively.
3.        Insurance is paid for one year ending on 30.06.2007.
4.        Goods withdrawn by Ganga for her personal use of Rs. 10,000 during the year were not recorded in the books.
5.        Provided Rs. 10,000 as Bad debts and Reserve for Doubtful Debts is to be maintained at 5% on Debters.
Prepare : Trading Account, Profit and Loss Account for the year ending on 31st March, 2007 and
Balance Sheet as on that date after making the above adjustments.

[G.P. 285500, N.P. 84500, TALLY 775500]

4. Ashok and Tanaji are Partners sharing Profits and Losses in the ratio 2:3 respectively. (20)
Trial Balance as on 31 st March, 2007
Particulars
Amount
Rs.
Particulars
Amount
Rs.
Purchases
Patents Right
Building
Stock (1.4.2006)
Printing and Stationery
Sundry Debtors
Wages and Salaries
Audit fees
Sundry expenses
Furniture
10% Investment (Purchased on 30.09.2006)
Cash
Provident Fund Contribution
Carriage Inwards
Travelling Expenses
98,000
4,000
1,00,000
15,000
1,750
35,000
11,000
700
3,500
8,000
10,000
4,000
800
1,300
2,700
Capitals :
Ashok
Tanaji
Provident Fund
Creditors
Bank Loan
Sales
Reserve for Doubtful Debts
Purchase Return

30,000
40,000
7,000
45,000
12,000
1,58,000
250
3,500
2,95,750
2,95,750
Adjustments :
1.        Closing stock is valued at the Cost of Rs.15,000 while its Market Price Rs.18,000.
2.        On 31st March, 2007 the stock of stationery was Rs.500.
3.        Provide reserve for bad and doubtful debts at 5% on debtors.
4.        Depreciate building at 5% and patent rights at 10%.
5.        Interest on capitals is to be provided at 5% p.a.
6.        Goods worth Rs.10,000 were destroyed by fire.
7.        The Insurance company admitted a claim for Rs.8,000.
[G.P. 61,200 N.P. 40350,   TALLY 177850]

5. 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 31st March, 2010 and Balance Sheet as on that date after taking into consideration the additional information given below.
Trial balance as on 31st 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.        Our customer Mr. Ajay Became insolvent and could not pay his debts of Rs. 2000.
[G.P. 28400, N.L.32000, TALLY 238100]

6. Swati, Swity and Sweta were partners sharing profits and losses equally.
Following is their Trial Balance for the year ended 31st March, 2006.
Trial Balance as on 31 st March, 2006 (20)
Particulars
Debit
Rs.
Credit
Rs.
Purchase and Sales
Salaries
Stock (1.4.2005)
Debtors and Creditors
Bills Receivable and Bills Payable
Land and Building
Returns
Wages
Cash at Bank
Insurance
Advertisement
Furniture
Rent and Taxes
Interest
Capitals :
Swati
Swity
Sweta
1,04,000
11,300
28,000
24,200
62,400
48,300
6,300
25,100
30,000
4,500
9,300
18,700
4,700
1,95,300


36,000
18,100

2,600






4,800

60,000
40,000
20,000
3.76,800
3,76,800
Adjustments :

1.        Closing stock is valued at Rs. 37,500.
2.        Depreciate Furniture @10% p.a. and Land and Building @5% p.a.
3.        Goods of Rs. 3,000 are purchased on 31.3.2006 are included in the closing stock but the entry is not passed in the books.
4.        Insurance is prepaid to the extent of Rs. 1,500.
5.        Salaries of Rs. 3,400 and wages of Rs. 4,700 are outstanding.
6.        Write off Rs. 1200 as bad debts from Debtors and provide 5% for Reserve for Doubtful Debts.

Prepare: Trading A/c and Profit and Loss A/c for the year ended 31st March, 2006 and Balance Sheet as on that date.






September Question Paper with solutions (GO THROUGH IT ON 26TH FEBRUARY, 2013)

Q. 1     Attempt any FOUR sub-questions of the following:                                                      (20)

A]         Answer in ‘One’ sentence each:                                                                                       (5)

            (1)        What is Partnership Deed?
Ans:     A partnership deed is a written agreement duly stamped, signed and registered document containing the terms and conditions of the partnership.
            (2)        What is CPU?
Ans:     The central processing unit is that hardware part of a computer that controls the entire working of the computer, processes the commands and data, and outputs the result.
            (3)        What do you mean by Scrap Value of an asset?
Ans:     The net amount which is expected to be realised on the final disposal of a fixed asset is called ‘scrap value’.
            (4)        What are Noting Charges?
Ans:     Noting charges are the fees charged by the Notary Public for noting the dishonour on the face of the bill and in his official register.
[5]        What is the relationship between the Co-ventures?
Ans:     The relationship between the co-ventures is similar to that of temporary partners i.e., principal and agent.

B]         Write a word / term / phrase which can substitute each of the following statements: (5)
            (1)        An intangible asset which has realisable value:- Goodwill.
(2)        An organisation not having object of earning profit:- Not for Profit Concern / Non-trading organisation.
            (3)        Credit balance on Joint Venture Account:- Profit on Joint Venture.
(4)        A system which have no hard and fast rules for accounting:- Single Entry System.
            (5)        A movable mark on the display screen of computer:- Cursor.

C]         Match the following pairs:                                                                                     (5)
Group ‘A’
Answers
(1)       Fixed Asset
(2)       Statement of Affairs
(3)       Co-venturers’ Liabilities
(4)       Dishonour of Bill
(5)       Active Partner
-  Plant & Machinery
-  Single Entry System
-  Unlimited
-  Noting Charges
- Takes Active Part in the Partnership

D]         Select the most appropriate alternative from those given below and rewrite the sentences:  (5)
(1)        Single entry system is Incomplete.
            (a)  Complete               (b)  Scientific               (c)  Incomplete (d)  Accurate
(2)        Credit balance of Trading account shows Gross Profit.
            (a)  Net Profit   (b)  Net loss                 (c)  Gross Profit            (d)  Gross loss
(3)        A person to whom a bill is endorsed is the Endorsee
            (a)  Endorser               (b)  Endorsee               (c)  Drawer                   (d)  Drawee
(4)        Income and expenditure account is Nominal Account.
            (a)  Real A/c                (b)  Nominal A/c     (c)  Personal A/c      (d)  Capital  A/c
(5)        Amount contributed by co-venturer’s is debited to Joint Bank Account.
            (a)  Joint venture account                              (b)  Joint Bank account                                 (c)  Co-venturer’s account                                   (d)  Shares’ account

E]         State with reasons whether the following statements are True / False:       (5)
            (1)        Public Library is a “Not for Profit” concern.
Ans:     This statement is TRUE.
Public Library is setup not to earn profit but to serve the society. Hence, it is a not for profit concern.
            (2)        Payment of bill after due date is called “Retirement of Bill”.
Ans:     This statement is FALSE.
Payment of the bill before the due date is called Retirement of Bill.
F]         Preparation a Formate of Bill of Exchange from the following information: (5)
(1)        Drawer:-  Ankur Shah, Anand Park, Borivali (W), Mumbai: 90.
            (2)        Drawee:-  Sharad Shah, Anand Sadan, Bandra (W), Mumbai: 50.
            (3)        Payee:-    Anish Shah, Anand Mahal, Kandiwali (W), Mumbai: 57.
            (4)        Amount:-  Rs. 15,555.
            (5)        Period :     3 months.
            (6)        Date of Bill:-  1st January, 2008.
            (7)        Date of Acceptance:-  3rd January, 2008
            (8)        Accepted for :-   Rs. 12,000.


Q. 2      Shantikunj Company, Rajoli purchased furniture worth Rs. 38,400 and paid Rs.1,600 for installation charges on 1stJanuary, 2004.                                                       (10)
            On 31st March every year, the company charged depreciation @ 10% p.a. on original cost.
            On 1st Oct.2004 the company purchased an additional furniture costing Rs.24,000.
            The company sold furniture for Rs. 31,500 on 31st December 2005, which was purchased on 1stJanuary 2004.
            Company purchased a new furniture worth Rs. 20,000 on 31st March, 2006.
            You are required to prepare Furniture account and depreciation account for the years 2003-2004, 2004-2005 and 2005-2006.
In the books of Shantikunj Company
Date
Particulars
JF
Amt Rs.
Date
Particulars
JF
Amt Rs.

1-1-04


To Cash / Bank A/c





By Depreciation A/c
By Balance c/d



1,000
39,000
40,000
31-3-04
31-3-04

40,000
40,000








1-4-04
1-10-04


To balance b/d
To Cash / Bank A/c



39,000
24,000
31-3-05

31-3-05

By Depreciation A/c
(4000 + 1200)
By Balance c/d


5,200

57,800
63,000
63,000








1-4-05
31-3-06


To balance b/d
To Cash / Bank


57,800
20,000
31-12-05
31-12-05
31-12-05
31-3-06
31-3-06
By Cash / Bank A/c
By Profit & Loss A/c
By Depreciation A/c
By Depreciation A/c
By Balance c/d

31,500
500
3,000
2,400
40,400
77,800
77,800








1-4-06
To balance b/d

40,400







40,400



40,400
Depreciation A/c.
Date
Particulars
JF
Amt Rs.
Date
Particulars
JF
Amt Rs.
31-3-04
To Furniture A/c

1,000
31-3-04
By Profit & Loss A/c

1,000



1,000



1,000
31-3-05
To Furniture A/c

5,200
31-3-05
By Profit & Loss A/c

5,200



5,200



5,200
31-12-05
To Furniture A/c
To Furniture A/c

3,000
2,400
31-3-06
By Profit & Loss A/c

5,400



5,400



5,400
OR

Q. 2 A] Calculate the value of goodwill at 3 times the average profit of last 5 years. The profits were:        
Year
Profit / Loss Amount
2001 – 2002
2002 – 2003
2003 – 2004
2004 – 2005
2005 – 2006
Rs. 14,500    Profit
Rs.   9,000    Loss
Rs. 16,700    Profit
Rs.   9,500    Profit
Rs. 13,300    Profit
Solution:
M/s _______________________
VALUATION OF GOODWILL
AVERAGE PROFIT METHOD
      Average Profit =  Total Profit – Total Losses
                                            No. of years
                                    =  54,000 – 9,000
                                                5
                                    =  45000    =  9000
                                            5
Goodwill =  Average Profit ´ No. of years Purchase
                =    9,000   ´    3
                =  27,000


B]         What are the features of Accounting Software Tally?                                       (5)
Ans:     Tally is very popular software package for Financial Accounting and Inventory Management. The salient features of Tally are:
(1)           It is simple and at the same time can be customized according to the individual needs of the user. It can prepare, compare and consolidate the accounts of different branches of the same company as well as those of different companies under the same management simultaneously.
(2)           As the accounting information is keyed in, Tally posts them to the respective ledger accounts.
(3)           In Tally, it is possible to manifest one single transaction in multiple currencies and to view all reports in terms of one or more currency.
(4)           Tally can record and maintain various ledgers. It can prepare Trial Balance. It can also prepare income statements, i.e. Trading Account and Profit and Loss Account as well as financial statements including Balance Sheet. Cash flow and Fund flow statements can also be generated as and when required.
(5)           Tally can also prepare Bank Reconciliation Statement.

Q. 3     Bhagyashri sold goods worth Rs. 24,000 to Rupa.                                            (12)
            On the next day Rupa paid Rs. 10,000 in cash and accepted 4 months bill for the balance amount drawn by Bhagyashri.
            Bhagyashri discounted the bill at 10% p.a. after one month with her bank.
            On due date Rupa dishonoured her acceptance and noting charges amounted to Rs. 200.
            Rupa paid half the amount of the bill and full amount of noting charges.
            Rupa accepted a new bill at 2 months for the balance amount plus interest Rs. 100.
            Pass necessary journal entries in the books of Bhagryashri.
In the books of Bhagyashri
Journal Entries
Date
Particulars
LF
Debit (Rs.)
Credit (Rs.)
? 1
Rupa A/c………………………………Dr.
     To Sales A/c
(Being goods sold)

24,000

24,000
2
Cash A/c………………………………Dr.
     To Rupa A/c
(Being cash received from Rupa)

10,000

10,000
3
Bills Receivable A/c…………………Dr.
     To Rupa A/c
(Being bill drawn and accepted due after 4 months)

14,000

14,000
4
Bank A/c………………………………Dr.
Discount A/c…………………………Dr.
     To Bills Receivable A/c
(Being bill discounted with bank @ 10% after one month)

13650
350


14,000
5
Rupa A/c……………………………….Dr.
     To Bank A/c
(Being bill dishonoured and incurred noting charges)

14,200

14,200
6
Cash / Bank A/c……………………..Dr.
     To Rupa A/c
(Being part payment received along with noting charges)

7,200

7,200
7
Rupa A/c………………………………..Dr.
     To Interest A/c
(Being interest received)

100

100
8
Bills Receivable A/c…………………..Dr.
     To Rupa A/c
(Being new bill drawn and accepted due after 2 months along with interest)

7,100

7,100



90,600
90,600
OR
Q. 3     Journalise the following transactions in the books of Kantilal.                         (12)
(a)   Sandhya informed Kantilal that Sawan’s acceptance for Rs. 16,000 endorsed to Sandhya has been dishonoured. Noting charges amounted to Rs. 300.
(b)   Nalini renews her acceptance to Kantilal for Rs. 6,000 by paying Rs. 2,000 in cash and accepting a fresh bill for the balance plus interest at 12% p.a. for 3 months.
(c)   Punam’s acceptance to Kantilal Rs. 10,000 retired one month before the due date at a discount of 6% p.a.
(d)   Bank informed Kantilal that the bill of Rs. 8,000 has been dishonoured by Meenakshi which was sent to bank for collection.
In the books of Kantilal
Date
Particulars
LF
Debit (Rs.)
Credit (Rs.)
a
Sawan A/c……………………………..Dr.
     To Sandhya A/c
(Being endorsed bill dishonoured and incurred noting charges)

16,300

16,300
b (i)
Nalini A/c……………………………….Dr.
     To Bills Receivable A/c
(Being bill dishonoured)

6,000

6,000
(ii)
Nalini A/c……………………………….Dr.
     To Interest A/c
(Being interest due)

120

120
(iii)
Cash A/c………………………………..Dr.
     To Nalini A/c
(Being part payment received)

2,000

2,000
(iv)
Bills Receivable A/c…………………..Dr.
     To Nalini A/c
(Being new bill drawn and accepted along with interest due after 3 months)

4,120

4,120
c
Cash / Bank A/c……………………..Dr.
Discount A/c…………………………..Dr.
     To Bills Receivable A/c
(Being bill retired)

9,950
50


10,000
d
Meenakshi A/c…………………………Dr.
     To Bank for collection A/c
(Being bill sent to bank for collection dishonoured)

8,000

8,000



46540
46540




Q. 4     Shrimant and Ramakant of Aurangabad entered into a Joint Venture to sell computers and share the profit or loss in the proportion of 1 : 2.                          (12)
            Shrimant contributed Rs. 7,50,000 and Ramakant contributed Rs. 15,00,000 and the amount was deposited into Joint Bank Account.
            Shrimant bought 60 computers at Rs. 35,000 each and paid for them from Joint Bank Account.
            Ramakant bought 15 computers at Rs. 30,000 each and paid Rs. 15,000 for insurance and Rs. 6,000 for freight from his private cash.
            60 computers were sold for Rs. 38,500 each 15 computer damaged in transit were repaired by Shrimant at a total cost of Rs. 15,000 from his private cash.
            They were finally sold by Shrimant at Rs. 40,000 each.
            The accounts between parties were duly settled.
            Prepare:
            (1)   Joint Venture A/c            (2)  Co-venturer’s A/c (3)  Joint Bank A/c

Joint Venture Account
Particulars

Rs.
Particulars

Rs.
To Joint Bank A/c
(Purchase)
To Ramakant A/c
Purchase   
Insurance
Freight
To Shrimant A/c
(Repairs)
To Profit A/c
Shrimant
Ramakant



450000
15000
  6000



108000
216000
21,00,000




471000
15000



324000
By Joint Bank A/c
By Joint Bank A/c

23,10,000
600000


2910000


2910000
Co-ventures A/c
Particulars
Shrimant
Ramakant
Particulars
Shrimant
Ramakant



To Joint Bank A/c



873000



2187000
By Joint Bank A/c
By Joint Venture A/c
By Joint Venture A/c
By Joint Venture A/c
750000

15000
108000
1500000
471000

216000

873000
2187000

873000
2187000
Joint Bank A/c
Particulars
Rs.
Particulars
Rs.
To Shrimant A/c
To Ramakant A/c
To Joint Venture A/c
To Joint Venture A/c
750000
1500000
2310000
600000
By Joint Venture A/c
By Shrimant A/c
By Ramakant A/c
2100000
873000
2187000

5160000

5160000

Q. 5     Mr. Anand gives you the following information:                                                           (10)
Particulars
31-03-2003 (Rs.)
31-03-2004 (Rs.)
Cash
5,000
6,000
Bank
15,000
18,000
Debtors
10,000
8,000
Stock
8,000
12,000
Furniture
12,000
12,000
Creditors
2,000
6,000
Bills Payable
2,000
-
            During the year Mr. Anand introduced Rs. 4,000 as further capital in the business. He has withdrawn cash Rs. 20,000 out of which he spent Rs. 15,000 on 1-10-2003 for purchase of scooter for business use.
            Adjustments:
(1)           Depreciate furniture @ 10% p.a.
(2)           Depreciate scooter @ 20% p.a.
(3)           Create provision for doubtful debts @ 5% of the debtors as on 31-03-2004.
(4)           Provide interest on capital at 10% p.a.
Prepare:
(1)           Statement of Affairs as on 31-03-2003.
(2)           Statement of Affairs as on 31-03-2004.
(3)           Statement of Profit or loss for the year ended 31-03-2004.
“DO IT YOURSELF”
Q. 6     From the following Receipt and Payment account of Patan Sports Association, Patan and the adjustments. You are required to prepare Income and Expenditure Account for the year ended 31st March, 2004 and a Balance sheet as on that date.    (16)
            Receipts and Payments Account for the year ended 31st March 2004.
Receipts
Amt. (Rs.)
Payments
Amt. (Rs.)
To Balance b/d
4,160
By Salaries
5,500
To Subscription:

By Entertainment Exp.
2,580
2003-04                16,000

By Lighting
1,000
2004-05                     412
16,412
By General Expenses
1,536
To Donation
2,000
By Taxes
500
To Receipt from Entertainment
3,644
By Investments
12,000
To Interest on Investment
324
By Printing & Stationery
944
To Entrance Fees
4,500
By Expenses of 2002-03
2,400
To Price Fund
3,000
By Fixed Deposit
4,000


By Bank Balance
3,000


By Balance c/d
580

34,040

34,040

Adjustments:
(1)           There are 450 members paying an annual subscription of Rs. 40 each.
(2)           Salary outstanding on 31st March, 2004 was Rs. 1,000.
(3)           Building stood in books Rs. 60,000 and furniture at Rs. 4,600 on 1st April, 2003. Write off depreciation on these assets @ 2% and 10% respectively.
(4)           Interest on investment @ 5% has accrued for 3 months.
(5)           The capital fund was Rs. 66,360 on 1st April, 2003.
(6)           60% of the entrance fee is to be capitalised.
Income & Expenditure A/c for the years ended 31-3-2004
Expenditure
Rs.
Rs.
Income
Rs.
Rs.
To Entertainment Exp.
To Salaries
Add: Outstanding
To Lighting
To General Expenses
To Taxes
To Printing & Stationery
To Depreciation
     Building
     Furniture

To Surplus

5,500
  1,000





1,200
    460
2,580

6,500
1,000
1,536
500
944


1,660

11198
By Donation
By Receipt from Entertainment
By Interest on Investment
Add: Interest
By Entrance Fees
Less: Capitalised
By Surplus




324
   150
4,500
  2,700
2,000
3,644



474

1,800
18,000



25,918


25,918
Balance Sheet as on 31-3-2004
Liabilities
Rs.
Rs.
Assets
Rs.
Rs.
Capital Fund
Add: Entrance Fees

Add: Surplus

Price Fund
Outstanding Salary
Subscription paid in advance
66,360
   2,700
69,060
  11198




80258

3000
1000
412
Building
Less: Depreciation
Furniture
Less: Depreciation
Investments
Add: Interest
Fixed Deposit
Bank Balance
Cash
Subscription receivable
60,000
   1,200
4,600
    460
12,000
    150

58,800

4,140

12,150
4,000
3,000
580
2,000


84670


84670

Q. 7     From the following Trial Balance of Kamlesh and Maharajan and given adjustments, prepare a Trading Account, Profit and Loss account for the year ended 31st March, 2007 and a Balance Sheet as on that date.                                                                 (20)
Dr.                               Trial Balance as on 31st March 2007                                           Cr.
Particulars
Amt. (Rs.)
Particulars
Amt. (Rs.)
Opening Stock
45,000
Capital A/c

Purchases
2,25,000
    Kamlesh
25,000
Plant and Machinery
75,000
    Mahajan
20,000
Carriage
16,800
Sales
4,50,000
Factory Rent
1,500
Discount Received
750
Insurance
1,050
Sundry Creditors
15,000
Sundry Debtors
60,000
Bad debts Reserve
200
Office Rent
3,000
Bills Payable
2,000
Printing & Stationery
600


Advertisement
15,000


Bills Receivable
3,000


Drawings:  Kamlesh
3,500


                 Mahajan
2,500


Salaries
18,000


Wages
20,000


Furniture
7,500


Royalty
1,000


Cash at Bank
14,500



5,12,950

5,12,950
The following adjustment are required:
(1)           Closing stock was valued at Cost price Rs. 35,000 and Market Price 40,000.
(2)           Plant– Machinery & Furniture are to be depreciated at 6% & 10% p.a respectively.
(3)           Maintain Reserve for Doubtful Debts @ 2 ½ % on Sundry Debtors.
(4)           Outstanding Expenses:  Factory Rent Rs. 300;          Office Rent Rs. 600.
(5)           Interest on capital to be allowed at 6% p.a.
(6)           Prepaid insurance was Rs. 100.
Trading Account for the year ended 31-3-2007
Particulars
Rs.
Rs.
Particulars
Rs.
Rs.
To Opening Stock
To Purchases
To Carriage
To Factory Rent
Add: Outstanding
To Wages
To Royalty
To Gross Profit c/d



1,500
     300
45,000
2,25,000
16,800

1,800
20,000
1,000
1,75,400
By Sales


By Closing Stock

4,50,000


35,000


4,85,000


4,85,000
Profit and Loss A/c for the year ended 31-3-2007
Particulars
Rs.
Rs.
Particulars
Rs.
Rs.
To Insurance
Less: Prepaid
To Office Rent
Add: Outstanding
To Printing & Stationery
To Advertisement
To Salaries
To Bad Debts
Add: New Bad Debts

Add: New R.D.D.

Less: Old R.D.D.

To Depreciation
Plant & Machinery
Furniture
To Interest on Capital
Kamlesh
Mahajan
To Net Profit
Kamlesh
Mahajan
1,050
    100
3,000
    600



-
          -
-
   1,500
1,500
     200


4,500
    750

1,500
   1,200

64,375
64,375

950

3,600
600
15,000
18,000





1,300



5,250


2,700


1,28,750
By Gross Profit b/d
By Discount Received

1,75,400
750


1,76,150


1,76,150
Partner’s Capital A/c
Particulars
Kamlesh
Mahajan
Particulars
Kamlesh
Mahajan
To Drawings

To Balance c/d
3,500

87,375
2,500

83,075
By Balance b/d
By Interest on Capital
By Net Profit b/d
25,000
1,500

64,375
20,000
1,200

64,375

90,875
85,575

90,875
85,575
Balance Sheet as on 31-3-2007
Liabilities
Rs.
Rs.
Assets
Rs.
Rs.
Capital
Kamlesh
Mahajan

Sundry Creditors
Bills Payable
Outstanding Expenses
Factory Rent
Office Rent

87,375
  83,075




300
    600


1,70,450

15,000
2,000


900
Plant & Machinery
Less: Depreciation
Sundry Debtors
Less: New R.D.D.
Bills Receivable
Furniture
Less: Depreciation
Cash at Bank
Closing Stock
Prepaid Insurance
75,000
   4,500
60,000
  1,500

7,500
   750

70,500

58,500
3,000

6,750
14,500
35,000
100


1,88,350


1,88,350

“ALL THE BEST FROM OMTEX CLASSES”

Note: - If any of your friend asks this assignment then please give them the Xerox copy and tell them to practice. 

5 comments:

  1. please give answer to the questions if not the whole solution. thank you

    ReplyDelete
  2. Depricate Q.3 what is the correct answer? please tell me now as I have the board exam of B.K tomorrow.

    ReplyDelete
  3. it is 13455 as on 1.4.05

    ReplyDelete
  4. the ans given is correct.

    ReplyDelete