i st PRELIMINARY EXAMINATION
BOOK KEEPING & ACCOUNTANCY
TIME: - 3 HRS
DATE: - 16.11.2010
DAY - tuesday
Q1. Attempt any four of the following. (20 marks)
- Answer in one sentence each. (5 marks)
1. Which types of expenses are debited to trading account?
2. What is Reserve Fund?
3. Who is an endorser?
4. What is goodwill?
5. Why is Joint Bank Account opened?
- Write the word/term/phrase which can substitute each of the following statement: (5 marks)
1. A statement showing financial position of the business.
2. Making the payment of bill before its due date.
3. List of debit and credit balances of the ledger accounts.
4. The relationship between persons who have agreed to share profit or loss in Joint Venture Business.
5. A Partner who only lends his name to the firm.
- Match the following pairs. (5 marks)
1. Partnership deed
2. Fixed capital method.
3. Unexpired expenses
4. Temporary Partnership
5. Pure Single Entry System
- Select the most appropriate alternative from hose given below each statement. (5 marks)
1. Reserve for discount on ______________ has a debit balance.
c. Bills Receivable
d. Loan advanced.
2. Income Statements and Balance Sheet are prepared in a systematic and scientific manner under ________________
a. Double Entry System.
b. Single Entry System
c. Partial Entry System.
d. Indian System.
3. Before accepting a bill, it is called a _________
4. Valuation of goodwill depends upon ________ capacity of business.
5. If two or more persons come together to carry on a business activity for a short period, it is known as ___________
a. Joint venture
d. Stock exchange
- State with reason whether the following statements are true of false. (5 marks)
1. Scrap value of asset reduces the amount of annual depreciation.
2. When the amount of the bill is paid on the due date, it is said to be retired.
- Prepare bill of exchange from the following details. (5 marks)
Drawer - Shekhar Desai, Shastri Road, Mahad.
Drawee – Sharad Verma, Narayan Peth, Pune.
Amount - Rs. 3500/-
Period - 3 months.
Payee - Mukund Pande, Panvel
Date of Bill Drawn – 21st June, 2007
Date of Acceptance - 23rd June, 2007
Q2. 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 computers, which was purchased on 1st April, 2004 for Rs. 18780.
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 – 2005, 2005 – 2006, 2006 – 2007. (September, 2008 board exam question)
Q2. (A) For the purpose of valuation of goodwill it was agreed to consider net profits of the last 4 years and goodwill is to be calculated at one year’s purchase of average net profits of last 4 years. The profits were
Q2. (B) Explain the importance of computer in modern age.
Q3. Anjali of Nagpur sold goods worth Rs. 25,000 to Rupali of Amaravati. On next day Ruapali paid Rs. 10,000 in cash and accepted two months bill for the balance drawn by Anjali. Anjali discounted the bill at 12% p.a. with her bank. Before due date, Rupali finds herself unable to make payment of the bill; and requests Anjali to renew it. Anjali accepts the proposal on the condition that Rupali should pay Rs. 5,000 in cash and accept new bill for one month along with interest Rs. 200 for the balance. These arrangements were carried through. The new bill was met on due date. Give journal entries in the books of Anjali.
Q3. Journalize the following transactions in the books of M/s Tirupati:
1. Kailas informed Tirupati that Ameet’s acceptance for Rs. 1,000/- endorsed to him, has been dishonoured. Noting Charged amounted Rs. 40/-.
2. Vilas renews his acceptance to Tirupati for Rs. 800/- by paying Rs. 400/- in cash and accepting a fresh bill for the balance plus interest at 12% p.a. for 3 months.
3. Kalpana’s acceptance to tirupati for Rs. 6,000 retired one month before due date at a discount of 10% p.a.
4. Bank informs Tirupati the dishonor of Kavita’s acceptance of Rs. 2,500 discounted with Bank. Noting charges Rs. 50/-.
Q4. Harsha and Varsha entered into a joint venture to buy and sell computers and share the profit or loss in the proportion of 2:1 respectively. Harsha purchased 10 computers @ Rs. 40000 each and paid Rs. 12,000 for transport charges, insurance charges, etc. Varsha bought 8 computers @ 42000 each and spent Rs. 10000 on freight and insurance. Harsha sold 8 computers @ 48,000 each and paid selling expenses Rs. 2000 and took over one computer at an agreed price of Rs. 32000 for personal use. Remaining computer were sold by varsha @ Rs. 45000 each and spent Rs. 2500 on miscellaneous expenses. The co – ventures closed their venture and settled their accounts. Prepare the Joint venture A/c and the co – venture’s account in the books of Harsha.
Q5. Following is the records of Mr. Raj were kept on single entry system. ( March 2009 board exam questions)
Plant and machinery
Mr. Raj invested Rs. 4000 in the business. Also he had withdrawn Rs. 15000 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.
Q6. Ashok, kishor and Anup undertook the construction of office building at a contract price of Rs. 10,00,000. The contract price is to be received in cash Rs. 6,00,000 and Rs. 4,00,000 in shares of that company.
They opened a Joint bank account and contributed the following amounts: Ashok – Rs. 3,00,000, Kishor – Rs. 3,00,000 and Anup Rs. 2,00,000. Ashok pays Rs. 10,000 towards an Architect’s fee, Kishor brings into the venture mixer of Rs. 25,000. Anup brings into venture a truck worth Rs. 55,000.
The following transactions were made from the joint bank account
1. Purchase of material Rs. 4,50,000.
2. Payment of wages Rs. 1,50,000.
3. Purchase of plant Rs. 30,000.
At the close of the venture. Ashok took over the unused material worth Rs. 8,000. Kishor took back the mixer worth Rs. 15,000. Anup took back truck worth Rs. 35,000. The scrap value of plant realised Rs. 6,000.
The contract price was received as agreed and Kishor took over shares at a value of Rs. 4,10,000.
Prepare : (1) Joint venture account (2) Joint bank account (3) Co – venturer’s account. (October 2006 , board exam questions)
Q7. Following is the Trial Balance of Kalavati and Lilavati as on 31st March, 2005 who share profits and losses in the ration of 3:2. Interest on capital was allowed @5% p.a.
Trial balance as on 31st March, 2005
Rent, rates and taxes
Plant and machinery
Land and buildings
Cash at bank
Current account :Kalavati
Capital accounts : Kalavati
Loan @ 9% p.a. (taken on 1-10-2004)
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1. Closing stock was valued at Rs. 20,500.
2. Unpaid wages Rs. 750; outstanding salary Rs. 657.
3. Write off Rs. 100 as bad debts and provide R.D.D. at 5% on debtors.
4. Provide depreciation and plant and machinery at 10% p.a. and on Land and building at 5% p.a.
5. Rent, Rates & Taxes were prepaid Rs. 100.
6. Bills payable included a dishonoured bill of Rs. 3000.
Prepare Trading account and profit and loss account for the year ending 31st March, 2005 and a balance sheet as on that date. (October 2006 board exam questions.)