HSE.@ Reg NO. sneer nants 249 . Rébruary 2008 i a Part-II ACCOUNTANCY Maximum : 80 Scores ‘Time : 2% Hours oa Cool off time : 15 Minutes / General Instructions to Candidates : © There is a ‘Cool off time’ of 15 minutes in addition to the writing time of 2% hrs. ‘You are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’. Use the ‘cool off time! to get familiar with questions and to plan your answers. Read queations carefully before answering. All questions are compulsory and only internal choice is allowed. When you select a question, all the sub-questions must be answered from the same quostion itself. Calculations, figures and graphs should’be shown in the answer sheet itself. © Malayalam version of the questions is also provided. @ Give equations wherever necessary. aaagnem: © citasls mamrenies ayoos 15 aati ‘yd eoad oxo ' persotldlanyo, > cramer’ ecs24sadhee! Sree aG)Z{MIGMD, ARLABUGYDD apr Aleawe engmrmoams aos © pormoemd agymymater ayn! earned (aaron ytoJo Cuowensmo. © cE saNEysmiBanzo Hae ag)¥kH6mMo. © aqaanaynmid prmonayoak omanasmsyerny oflowmodl n1e.2108 \6mBg}0 mam 2.2100) Mmidiad cers Harm aansemsjcanenseosns. © amass mygayendd, alleosrad, (road, agra: Sere enig\ tearm p6r20@)1d).266mM0. © epaRyRIgE MoAER Maca jen odrIS,aHEMo. Le aanayrnd nermogmaayo mabelagsens. / K27 1 7.0.)1. When the Manager is entitled to a commission of 10% on profits after charging such commission, it is calculated on profits before charging commission by the formule... a) 10/90 ) 10/110 2 Identify the events not amenable to accounting treatment : a) Salary paid to an employee b) The firm appointed an efficient Manager ©) Commission received 4@) Borrowing of money from abank b) 10/100 d) 90/100 8. Single entry system is also known as... a) Imprest system. b) Mercantile system * ©) Incomplete system d) Cash system 4 Depreciation is provided on a) Current assets b) Fictitious assets ©) Fixed assets d) Land 5. The item ‘commission received in b) Assets ) Liabilities 4) Expenses a @) @ a) eadkumo aMisigea eoamaiad aBlemjo 10% aradlasse aoamatosy aonigcine gerd, ngirnods uameasc elfesymaias ayayen eoaanies a) 10/90 ©) 10/110 b) 10/100 @) 90/100 a) erossred ends paremas.emomac om @sand agra? a) Salary paid to an employee b) The firm appointed an efficient Manager ¢) Commission received d) Borrowing ofmoneyfromabank (1) TICES ag BE MINIAD eves eons AGETIO anche ssyery, a) Imprest system. b) Mercantile system. ¢c) Incomplete system ) Cash system w@ amaizomo aamanowejemat .. expeieiciesoen a) Current assets: b) Fictitious assets c) Fixed assets d) Land a yond) melasyern sai’ a6 Which of the followings a special software package used for computerised accounting ? a) Microsoft Excel b) MS-DOS * ©) Tally d) Microsoft Access 7. A Bill of Exchange drawn on 25% April, 2006 made payable after three months becomes due on... a) 25" July, 2006 b) 1% July, 2006 ©) 30! July, 2006 )28" July, 2006 8. Ifstock at the beginning or at the end is missing, the same can be ascertained with: the help a) Debtors Account b) Creditors Account c) Statement of Affairs d) Memorandum Trading Account 9. Mr. Mohan whose records are incomplete, you are required to ascertain his profit or loss for the year ended 31" Dec., 2006 from the following details : Capital on 1* January, 2006 Rs. 1,00,000, Capital introduced on 1* July, 2006 Rs. 25,000. Drawings during the year Rs. 30,000 Capital on 31% December, 2006 Rs. 1,20,000. K-27 w a) a % @ miygnsomins meaevendisndley Basermocshagyon amvonifionad agesoens? a) Microsoft Excel b) MS-DOS © Tally d) Microsoft Access a) ay, aommmoencuutioctay 2006 agate 25-00 afwalt agocowsioa eniiglar aceon agemaxnoationye, a) 25° July, 2006 b) 1% July, 2006 ¢) 30% July, 2006 d) 28 July, 2006 ay miapoadion may eacucrvom Madialdiayerd aayago ogi’ acc agemem area NSonsd moukanyo. a) Debtors Account b) Creditors Account ¢) Statement of Affairs d) Memorandum Trading nt, a amon agi cyenttayss Araydqnarm mosreqscaxr eioeMay aomes! woMoDoIEYL. Capital on 1" January, 2006 Rs. 1,00,000. Capital introduced on 1* July, 2006 Rs. 25,000. Drawings during the year Re. 30,000 Capital on 31" December, 2006 Rs. 1,20,000. @ (7.0)10. n. 12, 13. Asian Co. Pvt. Ltd. acquires a piece of land for Rs, 20,00,000 for expansion purpose, After 5 years, the value of land came to Rs. 35,00,000 and at the time of preparing the Balance Sheet, the accountant does not consider the increase in the value of land. Do you agree with the accountant ? If so, on what grounds ? “Preparation of Trial Balance is compulsory for constructing final accounts and ensuring reliability ofthe accounts”. How do you react to this statement ? Mr, Sanu, who is a stationary merchant, during the previous year, occasionally had taken over the stationary from the stock for the use of his children, While preparing Trading & P/L“A/e, he considers it as an expense, Is he right ? If s0, prove your answer by highlighting the relevant accounting principle. Find the odd one out from the following and state the reasons. a)i) Sales Day Book ii) Bills Payable Book iti) Cash Book iv) Bills Receivable Book b)i) Share Capital ii) Debentures ili) Sundry Creditors iv) Long-term loans. @) (2) @) 10. i 12, 13. ogg xm 20,00,000 aynuost cungycuosedl. 5 atossersienjactatio eurgatiors alla: 35,00,000 enc aidatlag, eocuavem autatio eoentiay, oes’ gyrxnsaisiewos; amoehanyryaenso? aoeero alysmarenges, “anand waynes EgpnoETyMamzo, MROsrTETRLGIOS Allapmyyo Qogzeucyommyemaimyo (Cod ernexdoy eamsonxanoe” ciesad sorstamod ogenascn (ilasc6lenycmy, eony age ayer aiapaumdes enscrayemy, sFirr7ciBasto alaiagpyoa) crermempcxcoyeniinoa nag! agsyome.noenajea soo. agrnad a1semcy caamactias sesiam allenoa amegano acer afidanymy, ©P Msais) cadimnsamo? getorg aqnnvediend elitriafd og! ~ aud Meanermainn ap mTAETOYoADZS, 0006 enetianjemje o.aKgye. a)i) Sales Day Book ii) Bills Payable Book iii) Cash Book iv) Bills Receivable Book b)i) Share Capital ii) Debentures iii) Sundry Creditors iv) Long-term loans. 249 (@) (2) @) @)14. 15, 16. 17. An expense is recognised when a payment is made. State whether the statements correct as per the accounting principle ? Identify the principle behind it. From the following facts, you are required to determine the amount oftotal sales. Opening stock Rs. 7,500 Purchases Rs. 22,500 Direct expenses Rs. 2,000 Closing stock Rs. 8,000 Goods are sold at profit of 20% on sales. Mention three areas of application of a computer in a business organisation. How will you treat the following items in Final accounts if, it is 18, 19. K-27 given in the Trial Balance? a) Outstanding liabilities b) Interest on Capital ©) Prepaid expenses Distinguish between a Debit Note and a Credit Note. Though both book-keeping and accounting are complementary and supplementary to each other, but there is some marked difference between the two. List out three points of differences. @) (3) @) (a) @) 14 15. ats 17 18, 1 “aaieinyang aoiadenymat emcumnezemovaers” go alnAkmo moaerversest nicboa slong mosiucomantich vadlasaeno? cqgenoent (nfibrda fa? (2) moe%gIO@M ALaieeBaonmyRyD- Bowl AAdBgjen mse eye corinne, Opening stock Rs. 7,500 Purchases Rs. 22,500 Direct expenses Rs. 2,000 Closing stock Rs. 8,000 Goods are sold at profit of 20% on sales, «) enfin aeniys® gniawoctonyen Aye (sivom amma agewgioe eos, (3) MoOvejoayTn allasead weed MHEKEMB cnezocoonsmenled AQEBAN OOHOTHME GoLsroerse roomflesyo: a) Outstanding liabilities b) Interest on Capital ¢) Prepaid expenses (3) oavenlig emogo oxeicwe emosjo warlexee ruymjorve ag? @) nas Aaflenaje emacrvensnsiayo BAD ERAS AY nwo cuymsKrvENE gyre «s) P.T.0.)20. 21. A trader keeps the amount of provision for doubtful debts at 5% on debtors. The balance of provision on 1 January, 2006 was Rs. 750, On 31" December, 2006, the balance of debtors and bad debts shows an amount of Rs. 20,000 and Rs. 360 respectively. Show the Bad Debts Account and Provision for Bad Debts Account, Sales Rs. 20,000; purchases Rs. 12,000; opening stock Rs. 5,000; closirig stock Rs. 4,000 and direct expenses Rs. 2,000. Find out cost of goods sold and the gross profit. How will you rectify the following ? a) The total of the purchases day book is overcast by Rs. 3,000. b) The returns inwards book is excess totalled by Rs. 5,000, ©) The legal charges paid Rs, 2,750is omitted to post from the Cash Book. d) The payment of Rs. 5,000 to Mr. Dixon is-posted to the credit of his account. “ (4) 20. a1, a] SzjOIsBN00 SgaIOEE Asante 5% wyRays emyod Sinesaral ayy, ayseomeld 750 ays go goevanties gerd. 2006 aufimesns® 31o¥ 20,000 jas Mguompend, eysoown 350 aya ag mneBiampe. snsoeuS anwenigins wmeoervenyo BioJoAasK® ennod evo anvenigied ananrvengo myoooone (4) Bone Heaccienilgasale cen owmengos allgaliarmo accom Siadadlqlo ArsraaNshonjete, Sales Rs. 20,000; purchases Rs. 12,000; opening stock Rs. 5,000; closing stock Rs. 4,000 | and direct expenses Rs. 2,000. (4) maevg4omyern, Salsa smpeadd ag st05m afyerso0? a) The total of the purcbasés day ~ book is overcast by Rs. 3,000. b) The returns inwards book is excess totalled by Rs. 5,000. ) The legal charges paid Rs. 2,750 is omitted to post from the Cash Book. 4) The payment of Rs, 6,000 to Mr. Dixon is posted to the credit of his account. (4)2 23. From the following particulars, you are required to classify the items into revenue expenditure, capital expenditure, revenue receipt and capital receipt, a) Discount received b) Machinery purchased ¢) Dividend received 4) Borrowed loan from bank ©) Salery paid ) Issued share capital g) Acquisition of patent 1h) Sale of land and building From the details given below, ascertain the cost ofraw materials consumed during the year ended 31* March, 2007. conten 6,000 Stock of raw materials as on 31/3/2007 Rs. 5,000 Purchases of raw material during the year Rs. 85,750. Carriage on purchase of faw materials Rs. 3,800 Returns outwards Rs. 2,750. Mr. Anil got three months bill from Mr. Sunil for Rs. 8,000. On the due date, the bill was dishonoured, noting charges being Rs. 100. Give journal entries for the dishonour in the Journal of Mr. Anil assuming : a): the bill was retainied by “Mr. Anil b) the bill was endorsed to Mr. Hari ©) the bill was discounted with the bank for Rs. 4,800 @) the bill was sent to the bank for collection. @ 6) 23. moxgyowjmaaw ayewm oasiai, euqaom siatein!, acaimy cuajeome 2QAt mae Baap, a) Discount received b) Machinery purchased ©) Dividend received 4) Borrowed loan from bank ©) Salary paid ® Issued share capital 8) Acquisition of patent +h) Sale of land and building MOQ OQAMaMderion Qalensa ermromiayer Qrsemoile yet coer NaTye Stock of raw materials as on 1/1/2006 Rs. 6,000 Stock of raw materials as on 31/3/2007 Rs. 5,000 Purchases of raw material during the year Rs. 85,750 Carriage on purchase of raw materials Rs, 3,800 Returns outwards Rs, 2,750. apy cuenieny aoaiiad agen aren aycmyaoe Scc0cHUF AER 5000 ajsaES oy snfigl yA agem cyjeniasd arimye ef ant 2y, @oeCCIUT dieumve anligh lacisoriacayss, moses antemodi 100 ajas cried. eoergyomyem eetan.as ayemgied — ealgy ahemieart joe coring nyse essBemn® ogeenom gysym40? a) the bill was retained by ‘Mr. Anil ) the bill was endorsed to Mr. Hari ©) the bill was discounted with the bank for Rs. 4,800 4) the bill was sent to the bank for collection. (P.T.0.) 249 @ (4) (5)26, Record the following transactions 26, aoeegjomm peaiogad enoaioecs in the Cash Book of Mr. Gopalan 20M ayariayes art cap OBS with discount, cash and bank Sypeel engeciad agyyayes (a0) column during the month of January, 2007. (10) 2007 Jan 1 Balance of cash in hand Rs, 6,000 ” ” Balance of cash at bank Rs. 74,000 ” 3° Sold goods for cash Rs. 82,000 ” 4 Cash deposited into bank Rs. 14,000 ” 5 Paid wages in cash Rs. 42,000 "7 Received cheque for Rs. 8,800 from Mr. X and discount allowed to him Rs, 200. ” 8 Withdrew from bank for office use Rs. 10,000 - ~— 12 Paid by cheque for Rs. 12,000 to Mr. Y and discount allowed by him Rs, 400 20 Purchased furniture by cheque Rs, 2,000 30 Withdrew from bank for personal use Rs. 7,000. OR. 249 OR From the following Trial Balance @oorgoaymn (em siser@eryo of a sole trader Mr. Nath as on . Foadiryo paswoutlas aout 31-3-2007, you are required to 2g ayeRiayes osname emocraerd prepare Trading and Profit and wapcoanye (40) Loss Account and Balance Sheet for the financial year ended 31-3-2007, ao) Particulars Dr. Cr. . | @s) (Rs.) Capital "| 40,000 Freehold property 10,800 Depreciation on property 1,200 Insurance prepaid (1-4-2006) 300 Stock (1-4-2006) 14,360 Furniture and Fittings 5 1,500 Insurance . H 3,000 Purchases 67,350 Sales 80,410 turns Inwards 1,590 Return Outwards . 2,520 Office Expenses 5,100 Bad Debts 1,310 Carriage Outwards 1,690 Carriage Inwards 1,450 Creditors for Expenses 400 Discount . 160 Salaries and Commission 4,950 Accounts Receivable and Payable 11,070 4,700 Cash at Bank 2,610249 > Adjustments : 1. Stock in hand Rs. 10,500 2, Insurance prepaid Rs. 330, 8. Carriage inwards include Rs. 50, carriage paid for the purchase of furniture. 4 4) Make provision Rs. 1,070 for doubtful debts against Accounts Receivables. (Hint : Add prepaid expenses on 1-4-2006 with the insurance.) 27. Given below is the Receipts and 27, moevgjomym aueay ealacy Payments Account of the City amanego Encwieamijon edie Hospital for the year ending cudleceria} mil aanoenighiqgeleng 31-12-2006. You are required to once eneeroend OUI. (gy prepare the Final Accounts of the hospital for the year ended 31-12-2006. (10) Receipts Amount | Payments Amount 7 (Rs.) (Rs,) To Donations 11,500 | By Salaries 17,500 ‘To Subscription to By Medicines 5,250 charity fund 5,000 : To Registration Fees 4,500 | By Diet Expenses 4,900. |... ‘To Consultation Fees 8,760 | By Charities . 3,500 ‘To Medicines . 8,600 | By Furniture 3,000 j ‘To Surgery 5,950 | By Surgical Instruments | 2,200 : To Laboratory. fee 2,300 | By Surgery & Dispensary 1,825 i ToDiet 6,200 | By Electric installation 1,250 Expenses To Miscellaneous 720 | By Electricity charges 425 By Insurance (Rs. 135 paid for the year ending 31-12-2007) 180 By General Expenses 1,500 By Balance : Cash — 990 Bank 6,000 | 6,990 48,520 48,520Donations and Registrations are to be capitalised, On. 31-12-2006, Rs, 350 was outstanding for medicines purchased and stock of medicines amounted to Rs, 450. Provide a full year’s depreciation on furniture and electric installation expenses at 10% and surgical instruments at 20% . Charities are to be met out of Charity fand. K-27 pee 91,600