THE HOME OF TEXTIIND PRELIMINARY EXAMINATION OF ACCOUNTS
Accounts Preliminary ExaminationTotal Marks 100
Amount - Rs. 5775/-Period - 50 daysDate of Bill Drawn – 15
March, 1995Date of Acceptance – 19
March, 1995 (Accepted for only Rs. 5700)
On 1-1-2002 Champaklal & Sons purchased furniture for Rs. 15000. On 1-7-2002 additionalfurniture was purchased for Rs. 8000. On 30-6-2003 the furniture purchased on 1-1-2002 was skid for Rs.12,000.The firm charges depreciation @ 10% p.a. under the reducing balance method.Prepare Furniture account, for the years 2002, 2003, 2004 assuming that accounting year of the firm iscalendar year and depreciation account for the year ending 31 – 12 - 2003.
Find out value of goodwill from the following. Net profits for last 5 years are Rs. 30,000; Rs.36,000; Rs. 24,000; Rs. 4,000; Rs. 14,000. Goodwill to be valued at 3 years purchase of averagenet profit.
Explain 'Abacus’ as a phase in the history of computer.
Ans. It was in about 400 B.C., that a sort of adding machine called ABACUS was invented inChina. It consists of a rectangular frame. The rods or wires are fitted to the frame which carrysound beads. Abacus is still being used in some countries. Counting id done by shifting the beadsfrom one side to another. It is proved that an expert operator of abacus is faster in calculationsthan a clerk using a calculator.
Softy accepted a bill of Rs. 20,000 drawn by Kwality at 3 months. Kwality got the bill discountedwith his bank for Rs. 19,500. Before the due date softy approached Kwality for renewal of the bill. It wasagreed to pay Rs. 15,000 immediately together with interest on the remaining amount a 10% for 3 monthsand for the balance Softy should accept a new bill for 3 months. These arrangements were carriedthrough. But afterwards softy became insolvent and only 40% of the amount could be recovered from hisestate. Pass necessary Journal entries in the books of Softy & show Kwality’s account in Softy’s ledger.
(12 marks)OR Q3.
Raj sold goods worth Rs. 7,000 to Dev & Rs. 9,500 to Chetan on credit on 31-1-2004. On 1-2-2004, Dev accepted a bill of Rs. 5,000/- at 2 months paid cash Rs. 1,900 in full settlement of his account. On the same date Chetan accepted a bill for the due amount at 3 months.Raj discounted the first bill at 6% p.a. and sent the second bill to bank for collection. Onthe due date of the first bill, Dev approached bank for renewal of bill. Raj accepted on thecondition that Rs. 3000 be paid immediately, along with the interest on the balance Rs. 40 &accepts a fresh bill for the balance amount. These arrangements were carried through.Raj honoured his acceptance on the due date. However Dev became insolvent ÷nd of 20% could be recovered from his estate. (
Ram and Shyam entered into joint venture to prepare building for a private firm who agree to pay Rs. 2,00,000 on the completion of the work. A bank account was opened in their joint namesRam contributing Rs. 25,000 and Shyam Rs. 25,000. They share the profits and losses in the ration2:3 respectively. Payments made out of the joint bank account where:Purchase of equipmentsRs. 15,000Hire Charge for equipmentsRs. 12,000WagesRs. 85,000MaterialsRs. 20,000