Master Test – 01 Sampurna Dec-2023 (CA Foundation) Maximum Marks 100

Total Number of Questions: 13 Time allowed: 3 Hr.

Instructions to Candidates
Working Notes should form part of the respective answers

1. Answer the following with True or False with 5. Ramesh lent Rs.1,50,000 to Deepak on 1st January,
Reason 2016 at the rate of 12% per annum. The loan is
(a) Trade Discount is reduction granted by the repayable as under:
supplier from list price of goods / services on (i) Rs. 10,000 on 1st January, 2017
business consideration for prompt payment. (ii) Rs. 20,000 on 1st January, 2018
(b) Good costing Rs.600 taken by the proprietor (iii) Rs. 30,000 on 1st January, 2019
for personal use should be credited to “Sales (iv) Rs. 40,000 on 1st January, 2020
A/c” (v) Rs. 50,000 on 1st January, 2021
(c) Wages paid for erection of Machinery is You are required to determine the average due date
debited to “P&L A/c” for settling all the above instalments by a single
(d) Value of Building increase year on year payment and compute interest.
because it’s Non-Depreciable Asset. [5 Marks]
(e) If After calculation of average due date, if
average due date comes to be a public holiday 6. From the following prepare an account current, as sent
preceding business day shall be considered as by Avinash to Bhuvanesh on 31st March, 2018 by
ADD. means of products method charging interest @ 5% per
(f) Depletion method is followed in case of annum:
exhaustive (wasting) asset Date 2018 Particulars Amount (Rs.)
January 1 Balance due from 1,800
(6 × 2 Marks) Bhuvanesh
January 10 Sold goods to 1,500
2. Discuss the factor that affects the amount of Bhuvanesh
January 15 Bhuvanesh returned 650
depreciation?
goods
(4 Marks) February 12 Bhuvanesh paid by 1,000
cheque
3. What is average due date? (4 Marks) February 20 Bhuvanesh accepted a 1,500
bill drawn by Avinash
for one month
4. Rakesh had the following bills receivable and bills March 11 Sold goods to 720
payable against Mukesh. Bhuvanesh
Bills Bills March 14 Received cash from 800
Date Tenure Date Tenure Bhuvanesh
Receivable Payable
1st June 3,400 3 month 29th 2,500 2 month round off interest to nearest rupee.
5th June 2,900 3 month May 3,400 3 month (5 Marks)
9th June 5,800 1 month 3rd June 5,700 1 month
12th June 1,700 2 month 9th June
20th June 1,900 3 month 7. A Plant & Machinery costing Rs. 10,00,000 is
depreciated on straight line assuming 10 year
15th August was a public holiday. However, 6th
working life and zero residual value, for four years.
September, was also declared a sudden holiday.
At the end of the fourth year, the machinery was
Calculate the average due date, when the payment
can be received or made without any loss of interest revalued upwards by Rs. 40,000. The remaining
to either party. useful life was reassessed at 8 years. Calculate
Depreciation for the fifth year. (5 Marks)
 11. Karan purchased goods from Arjun, the average
8. Mahesh had the following bill receivables and bills due date for payment in cash is 10.08.2018 and the
payables against Rajesh. Calculate the average due total amount due is Rs.1,75,800. How much amount
should be paid by Karan to Arjun, if total payment
date, when the payment can be received or made
is made on following dates and interest is to be
without any loss of interest. considered at the rate of 15% p.a.
Bills Bills
Date Tenure Date Tenure (i) On Average due date
Receivable Payable
(ii) On 28th August, 2018
12-06-20 5,000 3M 27-05-20 3,700 3M
(iii) On 29th July, 2018
10-07-20 6,200 1M 07-06-20 4,000 3M
15-07-20 3,500 3M 10-07-20 5,000 1M
(5 Marks)
12-06-20 1,500 2M
28-06-20 2,500 2M 12. From the following particulars prepare an account
current, as sent by Mr. Amit to Mr. Piyush as on
15th August, 2020 was Public holiday. However,
31st December, 2020 assuming leap year and by
10th September, 2020 was also suddenly declared as
means of product method charging interest @ 8%
holiday. (5 Marks)
p.a.
Date Particulars Rs.
9. Ram had a bank balance of Rs. 20,700 in his 1-9-2020 Balance due from Piyush 900
account with SBI on 1.9.2009. His other
15-10-2020 Sold goods to Piyush 1,450
transactions during the month of September are as
20-10-2020 Goods returned by Piyush 250
follows:
22-11-2020 Piyush paid by Cheque 1,200
Deposit Dates Rs. Withdrawal Dates Rs.
15-12-2020 Received cash from Piyush 600
4.9.2019 13,000 6.9.2019 17,000
15.9.2019 13,500 13.9.2019 18,000
27.9.2019 14,000 25.9.2019 12,000 13. On 1st January, 2012 Hari Om purchased 6
Prepare account current of Ram with SBI on machines for Rs. 15,000 each. His accounting year
30.9.19 as per Product of Balance Method assuming end on 31st December. Depreciation at the rate of
interest @15% p.a. and round off interest to nearest 10% on initial cost (original cost) has been charged
rupee. to profit and loss account and credited to a separate
depreciation provision account.
Out of the 6 machines 1st January, 2013 one
10. Mr. A purchased a Plant costing Rs. 60,000 on 1st
machine was sold for Rs. 12,500 and 1 more was
January, 2015. He purchased another Plant for Rs.
sold on 1st January, 2014 for Rs. 12,500. An
50,000 on 1st July in the same year. On 1st October
improved model which cost Rs. 28,000 was
2016, he sold 1/3rd part of 1st Plant for Rs. 11,000
purchased on 1st July, 2013. The same rate of
and purchased another Plant for Rs. 30,000 on the
depreciation was decided for the new machine also.
same date. Prepare Plant A/c for three years in the
You are required to show:
following cases :
(1) The asset account
Case I – If rate of depreciation is 10% p.a. on SLM
(2) The asset disposal account
Case II – If rate of depreciation is 10% p.a. on
WDV. (3) The depreciation provision account.
(15 Marks) (10 Marks)

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