OMTEX CLASSES

“THE HOME OF SUCCESS”

ACCOUNTS MODEL PAPER FOR BOARD EXAMINATION

Q1. Answer any four of the following. (20 marks)

A. Answer the following. (5)

1. What is fluctuating capital method?
2. What is fixed capital method?
3. What is current account?
4. What is partnership deed?
5. What is partnership?

B. Write word/term/phrase which can substitute each of the followings: (5)

1. List of debit and credit balances of the ledger accounts.

2. Part of the final accounts prepared on the basis of indirect expenses and indirect incomes of
the business. Or An account showing net profit or net loss of business.
3. Statement showing the financial position of a business in the form of its assets & liabilities as
on a particular date.
4. Transport expenses paid on goods bought.
5. Expenses paid during the current accounting year but applicable to the next accounting year.

C. Match the pairs. (5)

A B
1. Income and expenditure account 1. Summary of receipts and payments
2. Specific fund 2. Profit or loss
3. Receipts & payments accounts 3. Financial position of a concern
4. Balance sheet 4. Assets side of balance sheet
5. Stock of stationery 5. Debit side of income & expenditure
6. accounts
7. Deficit or surplus
Liabilities side of balance sheet.

D. Select the most appropriate alternative from those given below: (5)

1. Debit Balance in Profit and Loss Account shows _______________

a. Net profit
b. Gross profit
c. Net loss
d. Gross loss
2. A bill of exchange must be accepted by ___________________
a. A drawer
b. A payee
c. An endorsee
 OMTEX CLASSES
“THE HOME OF SUCCESS”
ACCOUNTS MODEL PAPER FOR BOARD EXAMINATION
d. A drawee
3. At the end of the financial year balance of Depreciation account is transferred to
_______________
a. Depreciation account
b. Asset account
c. Trading account
d. Profit and loss account.
4. In the absence of partnership deed the partners share the profit and loss of the firm
_____________
a. In the ratio of capital
b. Equally
c. As per rights in management
d. On the basis of experience.
5. ____________ has to ultimately bear the noting charges.
a. Drawer
b. Drawee
c. Endorser
d. Bank

E. State True / False with reasons. (Any Two) (5)

1. Under fixed capital method for each partner two accounts are maintained.
2. Under fixed instalment method depreciation is charged on the diminishing value of the asset.
3. Interest on partner’s drawings is debited to Profit and loss appropriation account.

F. Prepare a bill of exchange from the following information: (5)

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.
 OMTEX CLASSES
“THE HOME OF SUCCESS”
ACCOUNTS MODEL PAPER FOR BOARD EXAMINATION

Q2. M/s Mangrulkar & Co. Purchased machinery on 1st October, 2000 costing Rs. 56,000. On the
same date firm spent Rs. 4000 for its erection. On 1st April, 2001 additional machinery was purchased
for Rs. 30,000. The machine costing Rs. 8000 on 1st October, 2000 was sold out on 31st March, 2003
for Rs. 6,000. On the same date a new machine costing Rs. 28,000 was purchased. Every year on 31st
March depreciation is charged at 10% p.a. on the cost price of machinery. Prepare: Machinery A/c and
Depreciation A/c for three years, i.e. 2000 – 01 , 2001 – 02 and 2002 – 03 in the books of the firm.
(10)
OR

Calculate the value of goodwill of the firm from the following information.
i. Total capital employed in the business is Rs. 4,00,000.
ii. Net profits of the firm for the past three years were Rs. 53,800, Rs. 45,350, Rs. 56,250.
iii. Normal rate o f return at 10%.
iv. Goodwill is to be valued at three years purchase of super profit.
(5)
AND
Explain the role of computer in accounting. (5)

Q3. Rupa purchased goods from Deepa on credit for Rs. 10,000 and accepted a bill drawn by Deepa
for four months. Deepa discounted the bill with her bank for Rs. 9,700. Before due date, Rupa
approached Deepa with a request to renew the bill. Deepa agreed but with the condition that Rupa
should pay Rs. 6000 with interest of Rs. 120 and accept a new bill for the balance. The arrangements
were duly carried out. New bill is met on the due date. Pass the necessary journal entries in the books
of Deepa.
(12)
OR

Journalise the following transactions in the books of Ashwin.

a. Bank informed that Sachin’s acceptance for Rs. 5750 sent to bank for collection had been
honoured and bank charges debited were Rs. 50.
b. Nitin renewed his acceptance for Rs. 7,200 by paying Rs. 2,200 in cash and accepting a new
bill for the balance plus interest @ 8% p.a. for 3 months.
c. Discharged our acceptance to Pravin for Rs. 4250 by endorsing Bhavin’s acceptance to us for
Rs. 4,000.
d. Jatin who had accepted Ashwin’s bill of Rs. 8500 was declared insolvent and only 40% of the
amount could be recovered from his estate.
(12)
 OMTEX CLASSES
“THE HOME OF SUCCESS”
ACCOUNTS MODEL PAPER FOR BOARD EXAMINATION

Q4. Ramsingh of Rampur and Narsingh of Nagpur entered into Joint Venture. They decided to send
500 TV sets to Harsingh of Hyderabad on their joint risk. They share profits and losses in the ratio of
3/5 and 2/5 respectively. Ramsingh sent 300 sets at Rs. 2,500/- each and paid Rs. 17,000/- for the
expenditure of sending the goods. Narsingh sent 200 TV sets at Rs, 2,000/- each and paid Rs. 13,000
for the expenditure of sending the goods. Ramsingh advanced to Narsingh Rs. 50,000/- on account of
Joint Venture. All the TV sets were sold by Harsingh for Rs. 14,00,000/- from which he deducted 3%
for his expenses and 2% commission on total sales and he remitted Rs. 10,00,000 to Ramsingh and
the balance amount to Narsingh. The co – venturers closed their venture and settled their accounts.
Prepare: Joint Venture A/c, Narsingh A/c, Harsingh A/c in the books of Ramsingh.

(12)

Q5. Mr. Suryakant maintains books on single entry and who gives you the following
information.

Particulars 31-3-2006 31-3-2007

Cash in hand 500 2000
Cash at bank 2500 5000
Stock 20000 30000
Sundry debtors 25000 40000
Investments 20000 20000
Furniture 10000 25000
Machinery 25000 40000
Sundry creditors 10000 10000
Outstanding expenses 3000 2000

Additional information

1. Mr. Suryakant introduced further capital of Rs. 20000 on 1st July, 2006 and had withdrawn
Rs. 10,000 during the year.
2. Interest on capital is allowed at 10% p.a.
3. Additions to furniture and machinery were made on 1st October, 2006
4. Write of deprecation on furniture and machinery at 10% p.a.
5. Create reserve for doubtful debts at 5% on sundry debtors.
6. Prepare: a. Statement of affairs. B. Statement of profit and loss for the year ended 31st March,
2007.

(10)
 OMTEX CLASSES
“THE HOME OF SUCCESS”
ACCOUNTS MODEL PAPER FOR BOARD EXAMINATION

6. Dr. Subhash Raje started practice as a medical practitioner on 1st April, 2007. He
gives you the Receipts & Payments Accounts for the year 2007 – 08 and the adjustments
to be made. Prepare his Income and Expenditure Account and Balance sheet for 2007 -
08.

(16)

Receipts and payments account for the year ended 31st March, 2008.

Receipts Amount Payments Amount

To Cash Introduced 107500 By Furniture 50000

To Visits 84000 By Equipment 40000

To Receipts From Dispensary 64000 By Drugs 35000

To Sundry Receipts 12000 By Salary 24000

By Rent 6000

By Conveyances 18000

By Stationery 5600

By Lighting 10000

By Journals 1200

By Drawings 37700

By Balance c/f 40000

267500 267500

Adjustments:

1. Receipts in arrears are: Visits Rs. 11,500 and Dispensary Rs. 9,000.

2. The outstanding salaries are Rs. 1,800 and the outstanding expenses on drugs are also Rs. 3,000.

3. 40% of the amount spent on conveyance was for domestic use.

4. Stock of drugs in hand at the close of the year was worth Rs. 4,200.

5. Depreciate furniture at 5% p.a. and equipments at 10% p.a.

6. Furniture and equipment purchased on 1st April 2007.

 OMTEX CLASSES
“THE HOME OF SUCCESS”
ACCOUNTS MODEL PAPER FOR BOARD EXAMINATION

Q7. Ram and Sham are partners sharing Profits & Losses in the ratio of 2:3. Their trial
balance as on 31st March, 2005 is given below. You are required to prepare Trading A/c
and Profit & Loss A/c for the year ending 31st March, 2005 and a Balance sheet as on
that date after taking into account the given adjustments.
(20)
Trial Balance as on 31st March, 2005
Particulars Amounts Particulars Amounts
Purchases 98, 000 Capitals:
Patent rights 4, 000 Ram 30000
Buildings 1, 00, 000 Sham 40000
Stock(1-4-2004) 15, 000 Provident Fund 7000
Printing & Stationery 1, 750 Creditors 45000
Sundry Debtors 35, 000 Bank Loan 12000
Wages & Salaries 11, 000 Sales 158000
Audit Fees 700 Reserve for doubtful debts 250
Sundry Expenses 3, 500 Purchase Returns. 3500
Furniture 8, 000
10% investment (purchased on 1-
10-2004) 10, 000
Cash 4, 000
Provident fund contribution 800
Carriage inward 1, 300
General expenses 2, 700
295750 295750

Adjustments

1. Closing stock is valued at Rs. 18, 000 which is 20% above the cost price.
2. On 31st March, 2005 the stock of stationery was Rs. 500.
3. Reserve for bad and doubtful debts at 5% on debtors.
4. Depreciate building at 5% and Patents at 10%
5. Interest on capital is to be allowed @5%.
6. Goods worth Rs. 10, 000 were destroyed by fire. The insurance company admitted a claim for Rs.
8, 000/-.