THE HOME OF SUCCESS
Q1. Answer Any four of the following. (20 marks)
A. Answer the following. (5)
- What is Balance Sheet?
- Who is co – venture?
- What is Super Profit?
- What is Endorsement of Bill?
- What is Good will of the firm?
B. Write word/term/phrase which can substitute each of the followings: (5)
- Reputation of a firm expressed in terms of money.
- Payment of expenses before they have become due.
- Payment of bill of exchange before its due date at rebate.
- The person on whom the bill of exchange is drawn.
- The account that is credited when depreciation is charged.
C. Match the pairs. (5)
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Dishonour of bill
Co – Ventures
Wear and tear
D. Select the most appropriate alternative from those given below: (5)
- Debit Balance in Profit and Loss Account shows _______________
- Net profit
- Gross profit
- Net loss
- Gross loss
- A bill of exchange must be accepted by ___________________
- A drawer
- A payee
- An endorsee
- A drawee
- At the end of the financial year balance of Depreciation account is transferred to _______________
- Depreciation account
- Asset account
- Trading account
- Profit and loss account.
- In the absence of partnership deed the partners share the profit and loss of the firm _____________
- In the ratio of capital
- As per rights in management
- On the basis of experience.
- ____________ has to ultimately bear the noting charges.
E. State True / False with reasons. (Any Two) (5)
- Under fixed capital method for each partner two accounts are maintained.
- Under fixed instalment method depreciation is charged on the diminishing value of the asset.
- Interest on partner’s drawings is debited to Profit and loss appropriation account.
F. Prepare a bill of exchange from the following information:
Drawer: Vilas Patil, 21. M.G. Road, Pune
Drawee: Vikas Pawar, 31. S.V. Road, Nasik.
Payee: Viraj Potade, 41, A.B. Road, Sholapur,
Period: 2 months
Amount: Rs. 7,500/-
Date of Bill: 1st January, 2007.
Date of acceptance: 3rd January, 2007.
Q2. Vishal Traders, Bombay, purchased Machinery on 1-1-1970 for Rs. 68,000 and paid installation charges Rs. 2,000 and decided to depreciate the machinery at 10% per annum under the fixed instalment system. On 1-7-1972 machinery having an original cost of Rs. 10,000 was sold for Rs. 5,000 and on the same date new machinery was purchased for sr. 10,000. Prepare machinery account and depreciation account for 1970, 71 & 72 assuming the accounts of the firm are closed on every 31st December.
Q2. (A) The books of a business showed that the capital employed on 31st December, 1992 was Rs.1, 00,000/-. Profits for the last five years are_1988, 1989, 1990, 1991 & 1992 were Rs, 60,000, Rs, 55,000, Rs, 75,000, Rs, 85,000 & Rs, 65,000 respectively. Goodwill is valued at 2 years purchase of the Super profit of the business. NRR is 10%.
Q2. (B) Write a short notes on uses of computer in modern age.
Q3. Ameet draws a bill for Rs. 7500 on Tushar for four months. Ameet discounts the bill with the bank at 8%p.a. On the due date Tushar requested Ameet to accept Rs. 4,700 (including Rs. 200 for interest) and to draw a bill for the balance of three months. Ameet agrees this proposal. Before the due date of the new bill Tushar retires the bill for Rs. 2960. Pass the journal entries in the books of Tushar and open Tushar’s account in the books of Ameet.
Q3. Journalize the following transactions in the books of Kamesh:
a. Nanda informs Kamesh that Shanti’s acceptance for Rs. 4,000 endorsed to Nanda has been dishonoured and noting charges have been Rs. 100
b. Ashok renews his acceptance to Kamesh for Rs. 2400 by paying Rs. 800 in cash and accepting a new bill for the balance plus interest @ 12 p.a. for 3 months.
c. Deva’s acceptance to Kamesh Rs. 12,000 is retired one month before its due date at a discount of 12% p.a.
d. The bank informs Kamesh that Sudhakar’s acceptance for Rs. 4,000 sent to bank for collection has been honoured. Bank charges debited Rs. 40.
e. Our acceptance to Shanthi for Rs. 5000 is settled by endorsing Malliga’s acceptance to us for Rs. 4,800.
Q4. Anil and Sunil entered in to a joint venture to consign 500 bales of cotton to Mukesh to be sold on their joint risk. Anil sends 150 bales at Rs. 300 each and pays Rs. 2000 for freight and insurance. Sunil purchases 350 bales at Rs. 250 each paying for insurance and other charges Rs. 4000. Anil advances a cheque of 12,000 to Sunil and also accepts a bill for the same amount drawn by Sunil which was discounted by Sunil@ 90% of its value. Mukesh sold all the bales @ Rs. 400 each. The expenses incurred by Mukesh are Rs. 5000 and his commission was 10% of the sales value. Mukesh remits Rs. 100000 to Sunil and the balance to Anil by a cheque. Venturers settle their accounts by a draft. Prepare Joint venture account, Sunil’s account and Mukesh’s account in the books of Anil.
Q5. Mrs. Archana keeps her books on single entry system and gives the following information.
Cash at bank
Stock in trade
Mrs. Archana withdrew from business Rs. 15,000 for personal use.
She further introduced fresh capital of Rs. 25,000. Depreciation is to be charged @10% p.a. on Furniture and Machinery.
Prepare: (i) Statement of Affairs as on 31-3-2006
(ii) Statement of Affairs as on 31-3-2007
(iii) Statement of profit or loss for the year ending 31-3-2007.
Q6. Suresh and Ramesh entered into a joint venture to construct a building at a contract price of Rs. 7,00,000. They agreed to share profits and losses in the ratio of 2:1. Suresh deposited Rs. 5,00,000 and Ramesh Rs. 1,00,000 into joint bank. The transactions were as follows.
- Purchase of materials Rs. 3,50,000
- Tools and equipment Rs. 1,00,000.
- Wages Rs. 1,20,000
- Architect fees Rs. 25,000
Besides these, Suresh supplied material worth Rs. 15,000 and Ramesh supplied material worth Rs. 13,500. Building was ready and contract price received. Prepare Joint venture A/c, Joint Bank A/c & Co – Venturer’s A/c.
Q.7. 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.
Trial Balance as on 31st March, 2005
Salary and Wages
Tools and Equipments
Interest on Investment
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 is to be written off as bad debts.
6. Unpaid expenses:
Salary and Wages Rs. 800
Rent Rs. 1,200
Depreciate building @ 7 ½ % p.a.