Bismilla h

OMTEX CLASSES

B.K & ACCOUNTANCY

80 MARKS 5 Marks

2.30HOURS

Q.1 (A) FILLS IN THE BLANKS

1. Not for Profit concerns prepare _____ account instead of profit and loss account. (Trading, Income and Expenditure, Cash, Receipt and Payments) 2. A bill drawn on 23rd November, 2006, for two months will be due for payment on _____ (25th February, 2007; 27th January, 2007, 25th January, 2007, 26th January, 2007) 3. Noting Charges are paid when a bill is ______ (honoured, dishonoured, renewed, retired) 4. Subscription received in advance during the accounting year is ________(an income, an expenditure, an assets, a liability) 5. Under Single Entry System only______Accounts are opened. (real, personal, nominal, real and nominal)

(B) GIVE ONE WORD

5 Marks

1. The method of capital account in which capital balances of partners change every year. 2. Excess of credit side over debit side of revaluation account. 3. An expenditure which is not recurring nature. 4. The debit balance of trading Account. 5. Assets which is held in a business for a long period.

(C) STATE WHETHER THE FOLLOWING STATEMENTS ARE TRUE OR FALSE 1. Discount allowed to Debtors is called Bad debts. 2. Not for profit concerns do not have profit motive. 3. The Goodwill brought in by the new partner is shared by all partners. 4. The Balance Sheet is a nominal account. 5. Return inward is deducted from Purchase.

5 Marks

(D) Answer the following questions in one sentence only: 1. What do you mean by 'Not for Profit' concern? 2. What does 'Surplus' mean? 3. What is 'deficit'? 1

5 Marks

4. What is single entry System? 5. What is statement of Affairs? Q2. Rani keeps her books on single entry & following information is disclosed. Particulars Cash Stock Debtors Furniture Sundry creditors Bills payable Loan from y Investments 31.3.06 18,000 15,000 30,000 7,500 26,250 (8 marks) 31.3.07 27,000 18,750 45,000 7,500 31,500 9,000 3,000 15,000

Rani transferred Rs150 each month during first half year and Rs.100 each month for the remaining period from her business to her private banking account by way of drawing, and took away Rs.350 worth of goods for private use. She sold her private car for Rs.3, 500 and proceeds were utilised for business. Furniture to be depreciated by 10% and Reserve for Doubtful debts to be maintained at 5% on debtors. Prepare opening and closing statement of affairs and also profit and loss statement for the year ending 31/03/07.

Q.3. The Balance Sheet of Shrihas and Madan as on 31st March, 2012 is set out below, they share profits and losses in the ration of 2:1. Balance sheet as on 31st March, 2013 (10 marks) Liabilities Shrihas's capital Madan's Capital General Reserve Creditors Rs. Assets 40000 Building 30000 Furniture 24000 Stock 16000 Debtors Cash Profit and Loss A/c Rs. 20000 6000 12000 60000 6000 6000

110000

110000

They admitted Prasanna on 1st April, 2013 as a partner on the following terms: 1. Prasanna to bring Rs. 12,000 as capital and Rs. 9,000 as a Goodwill which is to retained in the business. He will be entitled to th share of profits of the firm. 2. 50% of General Reserve is to remain as Reserve for Doubtful Debts. 3. Furniture is to be depreciated by 5%. 4. Stock is to be revalued Rs. 13,000. 5. Creditors of Rs. 1000 are not likely to claim and hence should be written off. 6. Rent of Rs. 400 due not received has not been recorded in the books. Pass necessary Journal Entries in the books of the firm.

Q.4. The following information is available from Rams records: Particular Creditor Bank overdraft Bank balance Plant and machinery Furniture Debtors Stock 1.4.06 5,000 10,000 10,000 4,000 30,000 34,000

(10 marks) 31.3.07 8,000 15,000 20,000 4,000 52,000 28,000

Ram had withdrawn Rs.5000 for personal expenses and Rs. 4000 for sons marriage. Out of business funds, he had also purchased a residential building costing Rs.20000, which is not shown in the above balance. Additions to Machinery were made on 1/04/06. Dep. at 10 %p.a. should be provided on plant and machinery. Find out Rams net profit for the year ended 31st march 07.

Q.5 From Receipts and payments account of Western Gymkhana for the year ended 31st March, 2007 & other information, prepare Income & Expenditure account for the year ended on & a Balance Sheet as at that date. (12 marks) 3

Receipts To Balance B/F To Subscriptions for: 2006 2007 2008 To Donations To Entertainment Receipts To Interest To Entrance Fees

Amount 1,040

Payments By salaries By Entertainment Expenses

Amount 1300 645 234 350 120 3000 241 600 1000 895 8385

85 4000 103 1200 876 81 1000

By Electric charges By General Expenses By Rates and Taxes By Investments By Stationery and Printing By Expenses of 2006 By Fixed Deposit By Balance c/f

8385 i. ii. iii. iv. v. The Gymkhana has 450 members paying an annual subscription of Rs. 10/- each. Rs. 20/- is still in arrears towards subscription for the year 2006. Carry forward Rs. 20/- for rates paid in advance. Provide Rs. 200/- for salaries outstanding.

The Gymkhana owns Land and Building standing in the books of Rs. 15,000/- and Furniture standing at Rs. 1,150, on which depreciation at 5% and 20% respectively is to be written off.

vi. vii.

The Capital Fund as on 1st April, 2006 was Rs. 16,695/50% of the Entrance Fees is to be capitalised. Donations are capitalised.

Q6. Following is the Trial Balance of Kalavati and Lilavati as on 31 st March, 2005 who shares Profits and Loses to the ratio of 3:2. Interest on capital was allowed at 5% p.a. (20 Marks) Trial Balance as on 31st March, 2005 Debit Balance Rs. Credit Balance Rs.

Opening Stock Sundry Debtors Purchases Wages Salaries Office expenses Discount Rent, Rates & Taxes Plant & Machinery Return Inward Land & Building Cash at Bank Current A/c : Kalavati Lilavati

10000 14100 20000 4250 1350 1223 650 900 15000 1750 20000 7327

Return Outward Sundry Creditors Sales R.B.D.D. A/c. Capital A/c. Kalavati Lilavati Loan at 9% (Taken on 1.10.2004)

1250 15800 35000 200

35000 10000 2000

2100 600 99250 99250

Additional Information

1. Closing stock was valued at Rs. 20,500. 2. Unpaid wages Rs. 750. 3. Outstanding salary Rs. 657. 4. Provide depreciation on Plant & Machinery at 10% p.a. and on land & building at 5% p.a. 5. Write of Rs. 100 as bad debts and provide R.B.D.D. at 5% on debtors.
5

6. Rent, Rates and Taxes prepaid Rs. 100. 7. Prepare Trading A/c and Profit & Loss A/c for the year ending 31st March, 2005 and a balance sheet as on that
date.

1ST PRELIMINARY EXAMINATION All the Very Best