Duration: 2 Hours

Success Academy
Book-Keeping Accounting

Marks: 45

Q.1. Given below is the Trial balance of M/s Manav and Ishwar on 31 st March, 2007, partners share
profits and loss equally. Prepare Trading

& Profits and Loss account for the year ended 31 st

March, 2007 and the balance sheet at on that date.

Particulars
Manav' Capital Account
Ishwar's Capital Account
Stock On 1.4.2006
Machinery
Purchases
Sales
Furniture
Ishwar's Drawings
Sundry Debtors
Sundry Creditors
Salaries
Insurance
General Expenses
Advertisement ( For 3 Years)
Interest And Commission
Prepaid Taxes
Reserve For Doubtful Debt

Debit

Credit
50,000
50,000

40,000
60,000
80,000
1,18,000
26,000
4,000
37,000
55,000
12,000
5,000
8,000
3,000
3,000
2,000
2,77,000

1,000
2,77,000

Additional Information :
1. On 31st March 2007 market value of closing stock was Rs. 42000.
2.

Goods amounting to Rs. 200 supplied to Ishwar were included in debtors

3.

Provide Outstanding Salaries Rs.2000

4. Depreciated Machinery by 10 %
5. The reserve at 5% be created for doubtful debt on debtors
Q.2. Akbar owed to Birbal Rs.6,000. Akbar accepted the bill drawn by Birbal for the amount at 4
months. After one month Birbal discounted the bill with the bank for discount @ 10% p.a. Before
the due date Akbar approached Birbal with the request for renewal of the bill. Birbal agreed on
the condition that Rs.4,000 to be paid immediately in cash together with interest on remaining
amount at 12%p.a. for 3 months and for the balance Akbar should accept new bill at 3 months.
These arrangement were carried through. Birbal endorsed the new bill to Jodha. Akbar met the
bill on due date.
Pass the Journal entries in the books of Birbal.
OR

Q.2. Journalise the following transactions in the books of Mahesh:

(a) Nilesh informs Mahesh that Rajesh's acceptance for Rs. 12,000 endorsed to Nilesh has been

dishonoured. Noting charges amounted to Rs. 250.

(b) Ramakant renews his acceptance to Mahesh for Rs. 5,000 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) Kiran retired his acceptance to Mahesh for Rs. 2,000 by paying Rs. 1,900 in cash.
(d) Mahesh sent a bill of Satish for Rs. 10,000 to bank for collection. But bank informed
that bill has been dishonoured by Satish. Noting Charges paid Rs.50

Q.3. Badam, Kaju and Pista were partners sharing Profit and losses in the ratio of 1:2:3
respectively. Their Balance Sheet as on 31st March,2011 was as follows.
Liabilities
Amount
Asset
Amount
Capital Account
Machinery
29,000
Badam
8,000 Furniture
22,000
Kaju
16,000 Fixture
12,000
Pista
26,000 Investment
12,000
Contingency Reserve
6,000 Trade Debtors
9,000
Workmans compensation fund
3,500 Cash in Hand
3,000
Creditors
24,000 Profit and Loss A/c
4,500
Kajus Loan
8,000
91,500
91,500
The firm was dissolved as on that date and the asset realized as follows:
1. Machinery Rs.20,000, Investment Rs. 7,000 and Debtors Rs.7,000.
2. Kajus Loan was paid in full.
3. Furniture and fixture were taken over by Pista at 10% less than the book value.
4. Realization expenses amounted to Rs 2,900.
5. Liabilities towards workmens compensation fund is estimated to be Rs.2,000 and has to
be paid off.
6. The creditors were paid Rs.22,000 in full settlements of his claims.
Prepare: 1. Realisation Account 2. Capital Account of all Partners 3. Cash Account.

Q.4. Following is the Balance Sheet of Tina and Mina on 31st March,2012.
in the ratio of 3:2
Liabilities
Amount Asset
Sundry Creditors
2,00,000 Cash
General Reserve
48,000 Stock
Capital Accounts
Sundry Debtors
Tina
1,40,000 Furniture
Mina
1,40,000 Plant and Machinery
Land and Building
5,28,00
0

They share profits & losses

Amount
20,000
80,000
1,50,000
38,000
1,40,000
1,00,000
5,28,000

They decide to admit Jina on 1st April,2012 into partnership on the following terms:
1. He should bring Rs.40,000 as his share of goodwill, which is to be retained in the
business.
2. He should bring 50,000 as a capital for 1/4th share in future profits.

3. Land and building is to be increased by Rs. 50,000 & Plant and machinery to be
reduced to Rs.1,00,000
4. A provision of 5% on debtors to be made for doubtful debts.
5. The excess capital of Tina and Mina over their due proportion of sharing profit in the firm is to be
transferred to their respective Loan Account.
Prepare profit and Loss Adjustment account, partners Capital Account and Balance Sheet of the new
firm.

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Success Academy
Duration : 2 Hours

Book-Keeping Accounting

Marks : 45

Q.1. Following is the Trial balance of Tina and Meena sharing profits and losses 2 : 3. You are
required to prepare a Trading and Profits and Loss account for the year ended 31 st March 2007
and balance sheet as on that date.
Debit Balances
Stock ( 1.4.2006 )
Return Inwards
Carriage
Motive Power
Wages
Trade Expenses
Salaries
Insurance
Works Manager Salary
Plant And Machinery
Advertising
Office Rent ( 10 Months)
Drawings : Tina
Meena
Building
Cash on Hand
Purchases
Sundry Debtors
Adjustment :

Rs.
44,000
10,000
4,000
6,000
56,000
4,000
39,000
7,400
2,600
76,000
8,000
10,000
14,000
6,000
24,000
3,000
170,000
72,000
5,56,000

Credit Balances
Sales
Creditors
Commission Received
Bank Loan
Capital A/C
Tina
Meena

Rs
3,37,000
40,000
4,000
15,000
60,000
100,000

5,56,000

1. Stock on 31st March, 2007 was valued at cost price Rs. 80000 and market price Rs. 72000
2. Depreciate Plant and machinery 20%.
3. Bad debt were Rs. 2000 and an R.D.D is to be created at 5% on Debtors
4. Carriage on purchase of machinery Rs. 1000 recorded as carriage.
5. Partners allowed interest on Capital @ 10% p.a.
Q.2. On 1st March, Devendra sold goods to Raman worth Rs.8000 and Raman accepted the bill for
Rs.8000 at 3 months drawn by Devendra. After one month Devendra discounted the bill with his
bank at 6% p.a. On due date the bill was dishonoured and Raman requested Devendra to accept
Rs. 4000 immediately and draw up on him a new Bill for the remaining amount at 3 months
together with interest at 10% p.a. Devendra agreed. Before one month of due date of second bill,
Raman retires the bill discount of @ 12% p.a.
Give Journal entries in the books of Devendra.
OR

Q.2. Journalise the following transactions in the books of Sharad :

a. Prakash informed Sharad that Gopal's acceptance for Rs. 10,000 endorsed to
Prakash has been dishonoured. Noting charges amounted to Rs. 200.
b. Rajan renews his acceptance to Sharad for Rs. 5,000 by paying Rs. 2,000 in cash together
with
interest @ 8% p.a. on remaining amount for 2 months and accepting a fresh bill for the
balance amount.
c. Jagdish retired his acceptance to Sharad for Rs. 1,000 by paying Rs. 960 in cash.
d. Sharad sent a bill of Shirish for Rs. 8000 to bank for collection and bank informed Sharad
that
bill has been honoured by Shirish. Bank charges Rs.200.

Q.3. The following is the Balance Sheet as on 31st March, 2010 of M/s. Teena & Meena.
Liabilities
Capital Account:
Teena
Meena
Reserve Fund
Loan from Teena
Bills Payable
Sundry Creditors

Amount
1,50,000
1,50,000
30,000
3,000
6,000
30,000
3,69,000

Asset
Cash at Bank
Furniture
Investment
Machinery
Building
Debtors
24,000
Less: R.D.D 3,000

Amount
18,000
90,000
30,000
90,000
120,000
21,000
3,69,000

The
1.
2.
3.

firm was dissolved as on 31st March,2010 and the assets realized as under:
Teena took-over Investments at Rs. 27,600.
Meena took- over furniture at Rs.84,000.
The assets were realized as follows: Debtors Rs.22,500, Machinery Rs.84,000 Building
Rs.115000.
4. The Creditors were paid off at a discount of Rs.900, Bills Payable were paid in full.
5. Dissolution expenses were Rs.4,200.
6. Teena and Meena were sharing profit and losses in the ratio of 3:2.
Prepare: 1. Realisation Account 2. Capital Account of all Partners 3. Bank Account.

Q.4. Dhiraj and Niraj are partners in a firm sharing profit and losses in the ratio of 3:2.

Their Balance sheet as on 31st March, 2012

Liabilities
Amount
Capital Account
Dhiraj
50,000
Niraj
50,000
Sundry Creditors
10,000
General Reserve
70,000
Bills Payable
7,000

was as follows:
Asset
Land and Building
Plant and Machinery
Furniture
Stock
Sundry Debtors
Cash

1,87,000

Amount
35,000
49,000
2,100
28,700
63,000
9,200
1,87,000

They agreed to admit Suraj in their partnership on 1 April, 2012 on the following terms:
1) The new profit sharing ratio will be 3:1:1.
2) Suraj should bring Rs.15,000, as his share of goodwill in the firm and Rs.20,000 as his
capital
3) Land and building valued at 90% of its book value.
4) Plant and machinery and stock to be reduced by 5% and 10% respectively.
5) Reserve for doubtful debts to be provided as 5% on debtors.
6) The capitals of all partners are to be adjusted in their new profit sharing ratio by
Making adjustment in cash on the basis of new partners Capital.
Prepare profit and Loss Adjustment account, Capital Account and Balance Sheet of the new firm.
st

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