MARCH 2008 ACCOUNTS QUESTION PAPER


March 2008
Book-Keeping and Accountancy
Time : 3 Hours Marks : 100
Q.1 Attempt any FOUR of the following sub-question: (20)
(A) Answer in one sentence. (5)
1. What is a Balance Sheet?
2. What is Single Entry System?
3. What do you mean by Fixed Installment Method?
4. What is Goodwill?
5. When Joint Bank A/c is opened?
(B) Write the word/term/phrase which can substitute each of the following
statements : (5)
1. A partner who lends only his name to the film.
2. Concerns established for providing services.
3. Profit earned over and above normal profit.
4. A temporary partnership without firm name.
5. A person who endorse the bill.
(C) Match the following pairs: (5)
Group 'A'
Group 'B'
1.     Unpaid expenses
2.     Single Entry System
3.     Computer
4.     Co-venture
5.     Maker of a bill
1.      
1.     Electronic device
2.     Partnership firm
3.     Drawee
4.     Asset side
5.     Unscientific
6.     Liability side
7.     Drawer
8.     Joint venture
(D) Select the most appropriate alternative from those given below: (5)
1.      
1.     subscription received in advance during the accounting year is ________.
a.     an income (b) an expense (c) an asset (d) a liability
2.     Depreciation is charged only on the _________.
a.     current assets (b) intangible assets (c) immovable assets (d) fixed assets
3.     Brain of computers is _________.
a.     microprocessor (b) RAM (c) DRAM (d) DOS
4.     Unsold stock of Joint Venture taken over by Co-venturer is credited to _______.
a.     Co-venturers' A/c (b) Joint Venture A/c (c) Joint Bank A/c (d) Stock A/c
5.     A one month's bill drawn on 31 st January, 2007 will be matured on ________.
(a) 3rd March, 2007 (b) 28th February, 2007 (c) 29th February, 2007
(d) 2nd march, 2007
(E) State whether True / False (with reasons): (5)
1. Receipts and Payments A/c is a Nominal A/c.
2. Drawee has no right to discount the bill with Bank.
(F) From the following details prepare a format of Bill of Exchange: (5)
Shri. Amar Patil, Guruwar Peth, Karad, draws a Two months bill on Mehul Maniyar, Mul, payable to Yogesh Ghatkar, CIDCO. Aurangabad, on 31st December, 2007 for
Rs. 9,500. Shri. Mehul Maniyar accepted it on 2nd January, 2008.
Q.2 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.
OR
(A) Maruti and Dinesh are carrying on a business in partnership for last 5 years. Goodwill of the firm is to be valued at 2 years purchased at last 5 years average profit. The profits and losses were as under :
(5)
Year
Amount
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
Rs.19,000 (Profit)
Rs.33,000 (Profit)
Rs.18,000 (Loss)
Rs.14,000 (Profit)
Rs.32,000 (Profit)
Calculate the value of Goodwill of the firm.
(B) Explain the importance of computer in modern age. (5)
Q.3 Priti owed to Manisha Rs. 9,000. Priti accepted the bill drawn by Manisha for the amount at
4 months.
Manisha endorsed the same bill to Shital.
Before the due date, Priti approached Manisha for renewal of the bill.
Manisha agreed on thee condition that Rs. 3000 be paid immediately together with interest on
the remaining amount at 8% p.a for 3 months and Priti should accept a new bill.
These arrangements were carried through.
However, before due date Priti became insolvent and only 50% of the amount could be
recovered from her estate.
Give Journal Entries in the books of Manisha. (12)
OR
Journalise the following transactions in the books of Motilal:
1.     Bhavna informed Motilal that Jvoti's acceptance for Rs. 3,600 endorsed to Bhavna has
been dishonoured and noting charges have been Rs. 150.
1.     Anil renews his acceptance to Motilal for Rs. 3,400 by paying Rs. 900 in cash and
accepting a new bill for the balance plus interest at 8% p.a. for 3 months.
1.     Prabhakar retired his acceptance to Motilal for Rs. 4,000 by paying Rs. 3,850 in cash
2.     Bank informed Motilal that Arun's acceptance of Rs. 7,000 Which was discounted with
hank was been dishonoured with noting charges Rs. 100.
Q.4 Yashpal of Udgir and Balu of Latur entered into joint Venture to consign 300 machines to Amol of Amravati to be sold on their joint risk which is in the proportion of 2:3 respectively . Yashpal sent 120 machines at Rs. 300 each paid freight Rs. 700 and sundry expenses Rs.300.
Balu sent 120 machines at Rs. 250 each and paid for insurance Rs. 500 and carriage Rs. 500.
Amol sold all the machines at Rs. 400 each.
He spent Rs. 4,000 for advertisement and Rs. 1,000 for godown charges.
Amol deducted 5% commission on sales and sent Rs. 80,000 to Yashpal and balance to Balu by bank draft.
Prepare
1.     Joint Venture A/c
2.     Balu's A/c
3.     Amol's A/c
In the Ledger of Yashpal. (12)
Q.5 Mrs. Archana keeps her books on Single Entry System & gives the following information: (10)
Particulars
31.3.2006
31.3.2007
Cash at Bank
Sundry debtors
Stock in trade
Furniture
Machinery
Bills Payable
Sundry Creditors
5,000
25,000
30,000
20,000
50,000
5,000
15,000
32,000
40,000
50,000
20,000
50,000
5,000
20,000
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. n. on Furniture and Machinery.
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 ending 31.3.2007.
Q.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.
Q.7 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.

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