Bismillah

OMTEX CLASSES

B.K & ACCOUNTANCY

80 MARKS

2.30HOURS 5 Marks

Q.1 (A) FILLS IN THE BLANKS

1. The excess of assets over liabilities is termed as __________( Surplus, Deficit, Loan, Capital fund) 2. A one month's bill drawn on 31st January, 2007 will mature on _________ (3rd March, 2007, 28th February, 2007, 27th February, 2007, 2nd March, 2007) 3. Noting Charges are paid when a bill is ______ (honoured, dishonoured, renewed, retired) 4. Subscription received in advance is ________(an income, an expenditure, an assets, a liability) 5. Under Single Entry System only______Accounts are opened. (real, personal, nominal, real and nominal) (B) GIVE ONE WORD 1. A system of book keeping in which only cash and personal accounts are maintained. 2. Concern established for rendering services to its members or to the society and do not earn profit. 3. An expenditure which is not recurring nature. 4. The debit balance of trading Account. 5. Assets which is held in a business for a long period. (C) STATE WHETHER THE FOLLOWING STATEMENTS ARE TRUE OR FALSE 1. Single Entry System is based on certain rules and principles. 2. A bill of exchange is signed by the person on whom it is drawn. 3. The Goodwill brought in by the new partner is shared by all partners. 4. The Balance Sheet is a nominal account. 5. Return inward is deducted from Purchase. (D) Answer the following questions in one sentence only: 1. What do you mean by 'Trading' account? 2. What does 'Surplus' mean? 3. What is 'deficit'? 4. What is single entry System? 5. What is statement of Affairs? 2. Mrs. Archana keeps her books on single entry system and gives the following information. [8 marks] 1 5 Marks 5 Marks 5 Marks

Particulars Cash at bank Sundry debtors Stock in trade Furniture Machinery Bills payable Sundry creditors

31-3-2006 5000 25000 30000 20000 50000 5000 15000

31-3-2007 32000 40000 50000 20000 50000 5000 20000

Additional information: Mrs. Archana withdrew from business Rs. 15,000 for personal use. She further introduced fresh capital of Rs. 25,000. Depreciation is to be charged @10% p.a. on Furniture and Machinery. Prepare: (i) Statement of Affairs as on 31-3-2006 (ii) Statement of Affairs as on 31-3-2007 (iii) Statement of profit or loss for the year ending 31-3-2007. Q.3 Suresh and Ramesh are partners in a business sharing profits and losses in the ratio of 2:1 respectively. Their Balance sheet as on 31st March, 2013 is as follows: Balance Sheet as on 31st March, 2013 [10 marks] Liabilities Rs. Rs. Assets Building Rs. Rs. 30000 10000 9500 40000 -1000 39000 30000 7600 33900

Capital A/c :Suresh 50000 Ramesh Creditors Bills Payable Reserve Fund

24000 74000 Machinery 57000 Furniture 20000 Debtors 9000 (-) R.D.D. Stock Bills Receivable Cash at Bank

They admitted Kailash on 1st April, 2013 as a partner on the following terms: 1. Kailash will bring Rs. 30,000 as his capital for 1/4th share in future profit and Rs. 12000 as goodwill which will be withdrawn by old partners. 2

2. Stock and Machinery are to be depreciated by 10%. 3. R.D.D. is to be maintained at 5% on debtors. 4. Building is to be appreciated by 20% and furniture is revalued at Rs. 10,000.

10 Marks

Prepare Profit and Loss Adjustment Account, Partners capital account and Balance sheet of the new firm.

Q.4. Mr. Suryakant maintains books on Single Entry and who gives you the following information. Particulars Cash in hand Cash at bank Stock Sundry debtors Investments Furniture Machinery Sundry creditors Outstanding expenses Additional information 31-3-2006 500 2500 20000 25000 20000 10000 25000 10000 3000 31-3-2007 2000 5000 30000 40000 20000 25000 40000 10000 2000

10 Marks

1. Mr. Suryakant introduced further capital of Rs. 20000 on 1st July, 2006 and had withdrawn Rs. 10,000 during the year. 2. Interest on capital is allowed at 10% p.a. 3. Additions to furniture and machinery were made on 1st October, 2006 4. Write of deprecation on furniture and machinery at 10% p.a. 5. Create reserve for doubtful debts at 5% on sundry debtors. 6. Prepare: A. Statement of affairs. B. Statement of profit and loss for the year ended 31st March, 2007.

Q.5 From the following Balance sheet and Receipts and Payments Account of Padmavati High School, Thane, prepare Income and Expenditure account for the year ended 31-03-2007 and balance sheet as on that date. Balance sheet as on 31st March, 2006 [12 Marks] 3

Liabilities Entrance fees Capital fund

Amount 30000 519000 Furniture

Assets

Amount 84000 100000 125000 200000 5000 15000 20000 549000

Computer laboratory Library Investment Cash in hand Cash at bank Outstanding Tuition Fees

549000 Receipts and Payment Account for the year ended 31st March, 2007 Receipts To balance b/d Cash in hand Cash at bank To Tuition Fees To Term Fees To Government Grant (salary) To Sundry receipts To sale of old newspapers To interest on investments To Donation of library 5000 15000 400000 120000 104500 11000 500 10000 150000 Amount Payments By Furniture purchased By Salaries By rent By Sundry expenses By Stationery By Annual gathering expenses By repairs of buildings By Insurance By Balance c/d Cash in Hand Cash at Bank 816000 Adjustments: 1. 2. 3. Tuition fees receivable Rs. 150000 Salary still payable Rs. 150000 Rent paid in advance Rs. 20000

Amount 52000 300000 140000 27000 49000 24000 32500 20000

44500 127000 816000

4. 5.

Insurance premium is paid for one year ending 30-9-07 Depreciate furniture and library at 10% and computer laboratory at 20%. Depreciation is to be charged on the closing balance of assets.

Q.6 From the following Trial balance of M/s Sanjay and Vijay, you are required to prepare Trading and Profit and Loss account for the year ended on 31st March, 2010 and Balance Sheet as on that date after taking into consideration the additional information given below. [20 marks] Trial balance as on 31st March, 2010 Particulars Sundry debtors and creditors Bills Receivable and Bills Payable Purchases and sales Return inward Salaries and Wages Carriage outward Insurance premium Postage and Telegram Plant and machinery Advertisement Import duty Bad debts Printing and stationery Cash in Hand Leasehold premises Opening stock Dividend received Outstanding Audit fees 10% bank Loan (Taken on 1.10.09) Debit balances 45800 28200 98500 2000 26000 1800 2200 1750 70000 3000 2100 1000 2400 1850 80000 12000 1500 4400 60000 Credit balances 72700 40000 110000

Capital : Sanjay Vijay 378600

45000 45000 378600

Additional information:

1. 2. 3. 4. 5. 6.

Closing stock was valued at Rs. 25000 Unused Postage Stamps of Rs. 250 Uninsured goods worth Rs. 8000 were stolen from the godown. Leasehold property is to be run for 10 years w.e.f. 1. 10. 2009. Depreciate Plant and Machinery at 10% p.a. Our customer Mr. Ajay Became insolvent and could not pay his debts of Rs. 2000

OMTEX CLASSES

1ST PRELIMINARY EXAMINATION All the Very Best