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Omtex – classes

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PRELIMINARY EXAMINATION 2004 – 2005 TOTAL MARKS100
ROLL NO TIME 3HR.
SUBJECT ACCOUNTS

Q1. Attempt any four of the following : (20)

(A) Write the word/term/phrase which can substitute each of the following : (5)
1. The person who endorses the bill.
2. A firm which is formed for temporary period and business.
3. The partner who contributes the capital only.
4. An account which records profit or loss from revaluation of assets and liabilities.
5. The method of depreciation under which depreciation is calculated on balance
amount.
‘A’ ‘B’
(1) Valuation of Goodwill (1) Different dates for
(2) Profit of Partnership different payments
(3) Joint Venture (2) Without consideration
(4) Average Due Date (3) A demand bill
(5) Accommodation Bill (4) Permanent Partnership
(5) Dividend among
partnership
(6) Capital fund
(7) Average Profit.

(B) Match the following: (5)

(C) State True or False: (5)


(1) Days of grace are not allowed in case of Trade Bill.
(2) Noting charge should be borne by the drawee.
(3) On dissolution cash or bank account is closed automatically.
(4) If the goodwill account is raised up, goodwill account is debited.
(5) Retiring partner is not entitled to share in the goodwill of the firm.
(D) Answer in One sentence: (5)
1. Which Account is credited when depreciation is charged.
2. Who is Payee?
3. What is Joint Venture?
4. What is a Good Will?
5. What are Noting Charges?
(E) Fill in the gaps: (5)
1. 1. Under system, amount of depreciation changes every year.
2. A bill of exchange is required to be by the drawee.
3. Expenses incurred by Co – Ventures are debited to account.
4. Amount due to deceased partner is transferred to account.

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OMTEX – CLASSES OMTEX – CLASSES
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Omtex – classes
“THE HOME OF TEXT”
PRELIMINARY EXAMINATION 2004 – 2005 TOTAL MARKS100
ROLL NO TIME 3HR.
SUBJECT ACCOUNTS

5. If goodwill is withdrawn by the partners account is credited.


(F) Prepare a Bill of Exchange from the following: (5)
Drawer : Hira Sharma, 35, Lakhani Apartment, Ulhasnagar
Drawee : Neepu Shukla, 23, Prasad Bhawan, Thane (East)
Payee : Anitha Ambarnath
Period : 90 days
Amount : Rs. 9,755
Date of Bill : 15th March, 1995
Accepted on : 20th March, 1995
Q2. M/s. Ravindra© Trading Company, Ambajogai, Purchased machinery for Rs.
60,000 on 1st January, 1992 and decided to depreciate it at 10% p.a. on the Diminishing
Balance method.
However on 1st January, 1995 the company decided to depreciate it @ 15% p.a.
on the fixed installment method, from the beginning and to adjust the difference in
depreciation arising from the change of method in the Profit and Loss Account for the
year 1995.
Show the Machinery Account and Depreciation Account for the years, 1992,
1993, 1994 & 1995.
OR
Q2. (A). Find out the Average Due Date from the following details: 12
Due date of Bills 5th June 1995 10th July 1995 15th August 1995 20th September 1995
Amount Rs. 1,000 3,000 2,000 4,000

(B) Priti and Pritam are partners sharing profits and losses in the ration of 3:2. They
admit Prasad for 1/6th share. For the purpose of admission of Prasad, goodwill of the
firm should be valued on the basis of 3 years purchase of the last 5 years average profit.
The profits were.
Year 1990 – 91 1991 – 92 1992 – 93 1993 – 94 1994 – 95
Profits Rs. 60,000 62,500 45,000(L) 42,500 80,000
Q3. Journalise the following transactions in the books of Rahul. 12
(A) Pradeep informed Rahul that, Vijay’s acceptance for Rs. 1,000 endorsed to
Pradeep has been dishonoured. Noting charges amounted to Rs. 50.
(B) Nilesh renews his acceptance to Rahul for Rs. 600 by paying Rs. 200 in cash and
accepting a fresh bill for balance plus interest @ 12 % P.a. for 3 months.
(C) Prashant’s acceptance to Rahul for Rs. 3000/- retired one month before due date
at a discount of 12% P.a.
(D) Bank informs Rahul as to dishonour of Aviraj’s acceptance for Rs. 1000 to Rahul,
discounted with the bank. Noting charges is Rs. 20.
OR
Q3. For mutual accommodation Anuj draws a bill on Roshan for Rs, 2000 for three
months period on 1st April, 1994. The bill is discounted by Anuj at 5% p.a. and half
the proceeds are reitted to Roshan.
Roshan at the same time, draws a bill for 3 months on Anuj for Rs. 1,600.
After receiving Anuj’s acceptance, the bill was discounted by 6% p.a. and remits half
the proceeds to Anuj.
Roshan became bankrupt on 30th June, 1994 and 20 paise in a rupee is
received on 17th September, 1994 as first and final dividend from his private estate.
Give journal entries in the books of Anuj.

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OMTEX – CLASSES OMTEX – CLASSES
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Omtex – classes
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PRELIMINARY EXAMINATION 2004 – 2005 TOTAL MARKS100
ROLL NO TIME 3HR.
SUBJECT ACCOUNTS

Q4. Ramsingh of Rampur and Narsingh entered into Joint Venture. They decided to
send 500 T.V. 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 for the expenditure of sending the
goods Rs. 17,000/-.
Narsingh sent 200 T.V. sets at Rs. 2,000/- each and paid for the expenditure of sending
the goods 13,000/-.
Ramsingh advanced to Narsingh Rs. 50,000/- on account of the Joint Venture.
All the T.V. 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 remits Rs. 10,00,000 to
Ramsingh and the balance amount to Narsingh.
Prepare:- (1) Joint Venture Accounts
(2) Narsingh Accounts
(3) Harsingh Account in the books of Ramsingh. (12 marks)
Q5. Rajesh and Manoj were partners sharing profits and losses in the ratio 2:3
respectively. Their Balance sheet as on 31st December, 1995 was as follows: (12marks)

Liabilities Amt. Assets Amt.


Rs. Rs.
Creditors 35000 Cash 2,500
Capitals; Land and building 12,50
Rajesh 25000 Plant 0
Manoj 25000 Furniture 15,00
Stock 0
Debtors 1,000
25,00
85,000 0
29,00
0
85,00
0

They agreed to admit Anita as a partner on 1st January, 1996 on the following terms:
1) Anita will have ¼ shares in future profit.
2) She shall being Rs. 12,500 as her capital and Rs, 10,000 as her share of
goodwill
3) Land and building are valued at Rs. 15,000 and plant and furniture
depreciated by 10%
4) Provisions for bad and doubtful debts are to be maintained at 5% on
Debtors.
5) Stock valued at Rs. 27,500.
6) The capital accounts of all the partners to be adjusted in their new profit
sharing ratio and excess amount to be transferred to their loan account.
Prepare: - Profit and Loss Adjustment Account, Partner’s capital
accounts and Balance sheet of the new firm.
OR
Q5. Following is the Balance sheet of Sharad, Santosh and Radhika who were
sharing profit and losses in proportion to their capitals:

Liabilities Amt Assets Amt

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OMTEX – CLASSES OMTEX – CLASSES
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Omtex – classes
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PRELIMINARY EXAMINATION 2004 – 2005 TOTAL MARKS100
ROLL NO TIME 3HR.
SUBJECT ACCOUNTS

Capital: Land and Building 50,000


Sharad 40000 Plant and Machinery 17,000
Santosh 30000 Stock 16,000
Radhika 20000 Debtors 10,000
Creditors 13800 - R.D.D 200 9,800
Cash 11,000

1,03,80 1,03,80
0 0
Santosh retires from the business on 31st December, 1994 and the following
adjustments were agreed to:
1. The goodwill of the firm be fixed at Rs. 10,800 and Santosh’s share
in the same be adjusted in the accounts of the continuing partners
who are going to share the future profits and losses in the ratio 2:1.
2. The entire capital of the new firm be fixed at Rs. 1,20,000 between
Sharad and Radhika in the proportion to their new profit and loss
sharing by making adjustment in cash.
3. The stock is to be valued at 94% of its book value.
4. Reserves for doubtful debts are to be maintained at 5% on
debtors.
5. A provision of Rs. 1,540 be made in respect of outstanding bill for
repairs.
6. The value of land and Building be appreciated by 20%
Prepare Profit and Loss Adjustment A/c, Partner’s Capital Accounts
and Balance sheet after retirement of Santosh.

Q6. Eknath, Namdeo and Tukaram were carrying on a business. They share
profit and losses in the ratio of 5:3:2 respectively. Their Balance sheet as on 31st
December, 1999 was as under.
Liabilities Amt Asset Amt
Sundry Creditors 21,000 Plant and Machinery 20,00
Namdeo’s Loan 5,000 Investments 0
Reserve Fund 20,000 Stock 8,000
Capital Accounts: Debtors 18,000 30,00
Eknath 20,000 Less: R.D.D 1,000 0
Namdeo 10,000 Cash in hand
Tukaram 4,000 Cash at bank 17,00
80,000 0
2000
3000
80,00
0

On the above date the firm was dissolved and the assets realised as under:
1. Investment Rs. 5,000 stock Rs. 24,000 and Rs. 15,000
2. The plant and machinery was taken over by Eknath at book value.
3. Sundry Creditors and Namdeo’s Loan were paid in full.
4. Realisation expenses incurred Rs. 1,000.
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OMTEX – CLASSES OMTEX – CLASSES
“The home of text” “The home of text”
Omtex – classes
“THE HOME OF TEXT”
PRELIMINARY EXAMINATION 2004 – 2005 TOTAL MARKS100
ROLL NO TIME 3HR.
SUBJECT ACCOUNTS

Prepare Realisation account, Partner’s capital accounts and Bank accounts.


(12 marks)

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OMTEX – CLASSES OMTEX – CLASSES
“The home of text” “The home of text”
Omtex – classes
“THE HOME OF TEXT”
PRELIMINARY EXAMINATION 2004 – 2005 TOTAL MARKS100
ROLL NO TIME 3HR.
SUBJECT ACCOUNTS

( 20 marks )
Particulars Debit Credit
Buildings 27,500
Machinery 20,000
Salary and Wages 10,500
Cash at Bank 20,000
Cash in Hand 550
Motor Cycle 10,000
Office Expenses 500
Rani Capital 58,000
Rita Capital 31,000
Carriage 2,500
Purchases 1,10,000
Return outwards 2,750
Sales 1,40,000
Return inwards 1,000
Bad debts 500
Debtors 16,400
Creditors 10,000
Rent 550
Bills payable 17,500
Printing and stationery 750
Traveling expenses 2,750
Stock(1-1-2001) 15,000
Insurance 750
Discount 4,000
Advertisement (for 3 years) 6,000
Furniture 10,000

2,59,250 2,59,250
Q7. Rani and Rita are partners sharing profits and losses equally. Following is their
Trial Balance as on 31st December, 2001

1. The closing stock on 31st December, 2001 was valued at cost Rs. 20,500 while its
market price is Rs. 22,500.
2. Goods worth Rs. 2,500 were destroyed by fire and Insurance company agreed to
pay Rs. 2,000 in full settlement of the claim.
3. Unpaid expenses – Rent Rs. 50 and Salary Rs. 250
4. Provide depreciation @ 10% on machinery and @ 5% on furniture.
5. Goods worth Rs. 4,000 were sold on 27th December, 2001 but no entry was made
in the books.
You are required to prepare Trading and Profit and Loss A/c for the year
ended 31st December, 2001 and the Balance sheet as on that date after considering
the above adjustments.

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OMTEX – CLASSES OMTEX – CLASSES
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Omtex – classes
“THE HOME OF TEXT”
PRELIMINARY EXAMINATION 2004 – 2005 TOTAL MARKS100
ROLL NO TIME 3HR.
SUBJECT ACCOUNTS

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