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R.A.ARTS, M.K. COMMERCE & S.R.

RATHI
SCIENCE COLLEGE, WASHIM
Practice Paper 2015-16
Sub- I.T.A. (B.Com. II)
Time : Three Hours

Marks : 70

N.B. (1) All the FIVE question are compulsory.


(2) All questions carry equal marks.
1.

(a) Write on Casual Income.


(b) Write on Agriculture Income.
(c) Explain the Meaning of Total Income.
OR
(d) What do you mean by previous year.
(e) Write on Gross Income.
(f) Explain the meaning of Partly Exempted Income.

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2. Shri. Krishna Mohan is lecturer in a college. Following are


the details of his income for previous year 2014-15 :
Basic salary @ 15,000 p.m., Dearness allowance
@ Rs. 2,000 p.m., CCA Rs. 2,400, House rent allowance
Rs. 3,000 p.m., Remuneration as examiner Rs. 1,000.
He is a member of statutory provident fund to
which he contributes 8% of his salary, the college the
contributing an equal amount. During the previous year he
spent Rs. 2,000 on books purchased for teaching purpose
and used his own scooter for personal as well as college
work. He lives in a rented house the rent payable being Rs.

5,000 p.m. He was sent by the college to attend reorientation seminar. The college spent Rs. 2,000 for the
purpose including his first class fare to and from, seminar
fees. Etc.
Compute Shri Krishna Mohan's taxable salary income
for the assessment year 2015-16.
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OR
Akhil own three houses in Bangalore. The
municipal valuations of which are Rs. 22,000, 36,000
and Rs. 31,000 respectively. The following are further
details about three houses.
(i)
The first house built in 2002 has been let out on a
monthly rent of Rs. 3,500. The expenses in connection
with this house are land revenue Rs. 100, Fire insurance
premium Rs. 800, interest on loan for construction of
the house Rs. 4,000, municipal taxes Rs. 1,500. The
house remained vacant for two months. Unrealised rent
of the current year amounts to Rs. 7,000. The assessing
officer has been satisfied about this unrealised rent.
(ii) The second house was built in 1986 and it is used for
owner's residential purposes. In connection with this
house Rs. 800 was spent on repairs, Rs. 200 was paid as
fire insurance premium. The house remained vacant for
three months as the owner had to stay in Chennai in a
rented house in connection with her profession. He paid
interest on loan Rs. 32,000.
(iii)The construction of third house was completed on 30
June, 2004 and from 1st July, 2004 it was letout for
residential purposes on a rent of Rs. 2,500 p.m.

Municipal tax Rs. 3,200 and interest on loan Rs. 16,000


were paid during the year 2014-15.
Compute her income from house property for the
A.Y. 2015-16.
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3.

4.

5.

(a) Write on deduction U/S 80U.


(b) Write on Self-Assessment.
(c) Write on Re-assessment.
OR
(d) Write on deduction U/S 80 D.
(e) Write on deduction U/S 80C.
(f) Write on deduction U/S 80 DDB.
(a) Explain the Rights of Company Auditors. 03
(b) Explain the Duties of Company Auditor.
(c) Explain the Power of Company Auditors.
OR
(d) Give The Liabilities of a Company Auditor.
(e) Explain The Secret Reserves.
(f) Explain The Auditors Report / Audit Report.
(a) Write on advantages of Internal Check System.
(b) Advantages of Audit Progremme.
(c) Explain the deference between Verification
and Vouching.
OR
(d) What are the Criminal liabilities of Auditors?
(e) Write the Provision regarding Appointment of
Auditors.
(f) Writes on kinds of Dividend.
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6. What are points to be considered during the audit of a


Banking Company ?
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OR
What are points to be considered during the audit of a
Insurance Company ?
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R.A.ARTS, M.K. COMMERCE & S.R. RATHI


SCIENCE COLLEGE, WASHIM
Practice Paper 2015-16
Sub- F.A.C. (B.Com. II)
Time : Three Hours

Marks : 70

N.B. (1) All the FIVE question are compulsory.


(2) All questions carry equal marks.
1.

(a) What is a Ledger?.


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(b) Explain Meaning & Definition of Bookkeeping. 03
(c) Following are the transaction of Shri. Rohit
Kumar in the month of March 2015:
Date
Particulars
Amount
March 5
Cash Purchases
2,20,180
March 11
Credit purchases from
41,140
Krushna.
March11
Discount received from
1,140
Krushna.
March 23
20,000
Cash paid to Krushna.
March 26
3,20,000
Cash sales
March 31
20,000
Sales to Anil on credit
Give the Journal entries of above transaction.
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(d) Enter the following transaction in the Two
Column Cash Book of Mr. Daksha.
2015
Rs.
March 15.
Cash Balance
14,000
March 20.
Received from Jitu
3460
March 31.
Purchase Goods for
5,500

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OR
(e) Explain the Classification of Accounts.
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(f) Explain Sub-division or classification of Journal.03
(g) Record the following transaction of March 2015
in Sales Book of Ankit Brothers:
2015
Rs.
March 5. Sold goods to Rohit & Co.
30,000
March 8. Sold Goods to Bhushan Brothers 50,000
March 10. Sold goods to Sunil & Co.
60,000
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(h) Prepare a Trial Balance on the basis of following balance.
Capital
19600
Cash in hand
270
Cash at bank
2,200
Purchases
70,800
Sales
90,700
Sales returns
2,260
Carriage
1,640
Rent and taxes Salaries
860
Salaries
3,640
Debtors
6,480
Creditors
4,700
Drawing
1,250
General expenses
250
Furniture
850
Computer
14,000
Carriage outward
200
Lease of premises
10,000
Insurance.
300

2.

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(a) What is meant by Suspense Account?


(b) From the following information prepare
production Account for the year ended on 31st
March 2015:
Opening stock:
Raw material
10,000
Work in material
7,000
Finished goods
12,000
Closing stock:
Raw material
4,000
Work in Progress
8,000
Finished goods
15,000
Purchase of Raw materials
60,000
Purchase returns
500
Sales
90,000
Sales returns
2,000
Wages
4,500
Power
2,600
Carriage inward
2,000
.
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(c) Prepare Trading A/c for the year ended 31
March 2015 with following balances:
Opening stock
35,000
Purchases
1,10,000
Sales
2,00,000
Purchases Return
3,000
Sales return
4,000
Carriage
7,000
Wages
18,000

Coal and Gas


Salary
Closing stock

13,750
21,000
90,000
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(d) Prepare Profit and Loss Account for the year


ending 31st March 2015:
Gross Profit
10,00,000
Salary
3,00,000
Audit fee
10,000
Bad debit
70,000
Interest (Cr.)
50,000
Rent Receive
12,000
Contribution to provident fund
2,00,000
Depreciation on Building
2,40,000
Commission (Cr.)
40,000
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OR
(e) Why the rectification of errors is necessary?
(f) Prepare a Balance sheet as on 31st March 2015
with help of the following information:
Cash in hand
14,700
Creditors
2,800
Outstanding rent
100
Closing stock
1,600
Capital
20,000
Net Loss
4,800
Drawing
1,800

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(g) Give the entries to rectify the following errors:
(i) Wages paid for installation of Machinery

3.

Rs. 500 were


debited to the wages Account.
(ii) Rs. 350 paid for the purchase of office furniture
were charged to office expenses Account.
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(h) From the information given below prepare a
Profit and Loss account for the year ended 31st
March 2015:
Gross profit
94,000
Salaries
19,500
Rent and Taxes
6,500
Insurance
900
Bad debts
1,200
Trade Expenses
4,800
Profit on sale of investment
8,000
Interest earned
600
Additional Information:
(1) Receivable Rent Rs. 3,000
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(a) Why depreciation has been charged?
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(b) What is difference between Receipts and
Payments A/c & Income and Expenditure A/c. 03
(c) A. machine was purchased for Rs. 52,000 and Rs.
8000 were spent its installation. It was decided to
charge 20% p.a. depreciation under the diminishing
balance method. At the end of the second year,
the machine was sold for Rs. 28,000.
Prepare a Machine A/c for two years. Machine
purchased 1st January financial year closed
31st December.
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(d) Prepare Income and expenditure Account for
the year 2015 from the following information.

Opening balance as on 1.1.2015


5000
Receipts:
Subscription
9,000
Life membership fee
10,000
(Revenue)
Sale of old newspaper
200
Interest on Investments
1000
Payments:
Wages & salaries
1000
Furniture
2000
Sports materials
1200
Other Expenditure
7,000
Additional Information:
(1) There are 1,100 life members of the club required
to pay the membership fee of Rs. 10 each.
(2) Sundry Expenditure outstanding Rs. 200.
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OR
(e) Explain the Straight Line Method of Depreciation.
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(f) Explain the main features of Receipt and
Payment Account.
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(g) Mr. Charansingh purchased furniture on 1 Apr.
2013 costing Rs. 20,000. He charges depreciation @
10% p.a. On reducing Balance method on 1.7.2016
he sold out some part of the furniture worth Rs.
2000. The Original cost of which on 1.4.2013 was
Rs. 4000. Financial year of Mr. Charansingh ends
on 31st march every year, you are required to
prepare the furniture Account for the first four

years.
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(h) Following are the Receipts and Payments of
V.R.C. cricket club in respect of the year ended
31st march 2015:
Receipt:
Subscription
1,50,000
Income on sports
30,000
Interest on securities
40,000
Income from advertisements
50,000
Payments:
Salaries
30,000
Rent & Taxes
15,000
Stationery
5,000
Printing
30,000
Adjustment:
(i) Advance subscription Rs. 20,000
(ii) Outstanding salaries Rs. 10,000
From the above information prepare Income
and Expenditure A/c for the year ended 31st
March 2015
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4.

Trial Balance of the Amravati Sales-Purchase


Co- operative Society as on 31st March 2015
is given below:

Particulars

Amoun
t
Purchase
5,50,00
Carriage
0
Wages
9,000
Furniture
2,000
Salaries
20,000
Travelling
28,000
Exp.
1,800
Rent
800
Opening
40,400
stock
15,000
Bill
900
Receivable
2,400
Postage
25,800
Advertiseme
6,000
nt
200
Interest paid
1,800
Cash
at
5,000
Bank
Cash in hand
Insurance
premium
Machinery
7,09,10
0

Particulars

Amoun
t
Sales
5,40,80
Loan from
0
Bank
50,000
Commissio
n
42,000
Received
15,000
Bills
20,000
payable
1,300
Creditors
40,000
Depreciati
on fund
Share
capital

7,09,10
0

Adjustment:
(1) Closing stock Rs. 1,60,000.
(2) Charge depreciation on furniture and machinery 5%.
(3) Unpaid salaries Rs 1,000.
(4) Pre-paid insurance premium Rs. 200.
(5) Interest due but not received is Rs. 600.
From the above information, prepare Trading
Account, Profit and Loss Account and Balance Sheet. 14
OR
Shri. Ramanand is fully engaged in Farming Activities.
He maintains completer set of bo0oks of account. On 31 st
March 2015 he has prepared the following Trial Balance and
asks you to prepare farm Trading and Profit & Loss Account
and farm Balance Sheet as on 31st march 2015:
Trial Balance
(As on 31st March 2015)
Particulars
Cash at Bank
Debtors
Opening stock
(1.4.2014):
Livestock
10,000
Grain
2,400
Cattle fees
3,000
Seed & fertilizers
1,000
Rent & Rates
Wages
Purchases:
Livestock
2,000
Seed & Fertilizers
1,600

Rs
7,600
2,000

16,400
200
800

Particulars
Sales:
Live stock
2,200
Dairy products 800
Grain
2,200
Vegetables
1,200
Creditors
Loan on Mortgage
Capital

Rs.

6400
5600
30000
60000

Cattle feed
Drawings
Diesel
Machinery
Land & Building

600

4,200
600
200
20,000
50,000
102000

102000

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(1) On 31 March 2015 the stock was valued as under:


Livestock
Rs. 12,000
Grain
Rs. 5,000
Cattle food
Rs. 2,000
Seed and fertilizers
Rs. 2,000
(2) Depreciate machinery at 1% p.a.
5.

Mr. Maganlal has submitted an application for insolvency.


He owns assets worth Rs. 5,00,000 and liabilities for
Rs.3,50,000 in his business. He has estimated his
deficiency at Rs. 1,50,000 in his statement.
After the foregoing estimate was made, he found that
the following items were not recorded in his book of
accounts:
(a) Bills discounted Rs. 10,000 out of which
Rs. 3,000 are likely to be honoured.
(b) Loan from wife Rs. 5,000.
(c) Rent for 3 months Rs. 1,500.
(d) Amount due as wages Rs. 800, salaries of 3 clerks
Rs. 1,800 and taxes Rs. 600.
Prepare a Statement of affairs and a Deficiency
Account.
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OR
Mr. Sumit finds himself insolvent on 31st December,

2015. His position was as follows:


Rs.
22,000
33,000

Creditors
Bills payable
Liabilities for bills discounted
(Expected to dishonor Rs. 2,750)
5,500
Stock (Estimated to realize Rs. 22,000)
44,000
Machine (Estimated to produce Rs. 27,500)
38,500
Bank Overdraft
2,200
Loan on Mortgage (Mortgage on
Securities of Rs. 44,000)
33,000
Furniture (Estimated to produce
Rs. 2,200)
5,500
Partly secured creditors
(second preferential up to Rs. 550, on the
Mortgaged securities with the
fully secured creditors)
4,950

Cash in hand
220
Debtors :
Good
660
Doubtful
(Estimated to realise Rs. 220)
550
Bad
110
Local Taxes outstanding
495
Rent
440
Preferential creditors for
Wages and Salaries
385
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On 1 January 2014 he commenced his business with a
capital of Rs. 37,400. His total drawings were Rs. 1,210. His
profit for First year was Rs. 330 and for the year 2015, his loss
was Rs. 550. He was allowed interest on capital per year is Rs.
550.
Prepare his Statement of Affairs and Deficiency Account.
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