• Please check that this question paper contains 6 printed pages.

• Code number given on the right hand side of the question paper should be written on the title page

of the answer-book by the candidate.

• Please check that this question paper contains 25 questions.

• Please write down the serial number of the question before attempting it.

ACCOUNTANCY

Time allowed : 3 hours ] [ Maximum Marks: 80

General Instructions :

(i) This question paper contains three parts A and B.

(ii) Both parts are compulsory for all candidates.

(iii) All parts of the questions should be attempted at one place.

Part ‘A’

Accounting for Not-for-Profit Organizations,

Partnership Firms and Companies

1. What are “Unrestricted Funds”? Give an example also. 1

2. ABC Ltd. Was entitled to commence its business on 1st July 2007. Can it issue shares at

discount on 1st Feb, 2008? 1

3. State the Provisions of Partnership Act, 1932 in the case of absence of ‘Partnership Deed’. 1

4. Mention the any Two rights of representatives of deceased partner. 1

5. State any two adjustments required in case of reconstitution of partnership firm. 1

Series SHC/3

Candidates must write the Code on

the title page of the answer-book.
 
2  

M.A.S.C 2                                                                                                                                              Gurcharan  Singh     9911594578

Paper  is  Strictly  Based  on  CBSE  Norms  (DELHI) and  It  is  for  Practice  only                                        Email: tac@itsmychoice.in

6.

Calculate Amount to be Debited in Income & Expenditure Account for the year

ending 31st March 2008: Rs.

Stock of Stationery on 1st April, 2007 12,500

Creditors for Stationery on 1st April, 2007 10,200

Amount paid to Creditors of stationery during the year 145,000

Stock of stationery on 31st March, 2008 18,000

Creditors for Stationery on 31st March, 2008 10,700

3

7.

1st May, 2008 the Directors of a limited company forfeited 200 shares of Rs. 20 each,

Rs. 15 per share called up, on which Rs. 10 per share has been paid by A, the amount

of the first call of Rs. 5 per share being unpaid. Ten day later, the directors re-issued the

forfeited shares to B credited as Rs. 15 per share paid up, for a payment of Rs. 10 per share.

Your are required to pass the necessary Journal Entries

3

8.

A Co. issued 15,000 fully paid up shares of Rs.100 each for the purchase of the following assets

liabilities from Gupta Bros. :

Plant Rs. 5,00,000 Stock-in-trade Rs. 4,50,000

Land & Buildings Rs. 7,00,000 Sundry Creditors Rs. 1,00,000

Your are required to pass the necessary Journal Entries

3

9. Tara and Sitara are partner sharing profit in the ratio of 3 : 2; after division of the profits for

the year their capital were Rs. 1,50,000 and Rs. 1,00,000. During the year firm earned profit

of Rs. 52,000.Tara drew regularly Rs. 12,000 at the beginning of every six months ending

and Sitara drew regularly Rs. 6,000 at the end of each quarter. While preparing the Profit &

Loss Appropriation Account they commit following mistakes:

i. They Ignored the Interest on drawings & Interest on Capital, which is to charge @ 10%

p.a. & 5% p.a.

ii. Profit distributed equally.

Pass an adjusting Journal entries. 4

10. A and B are partners sharing profits and losses in the ratio of 2 : 1, decided to share future

profit and losses equally with effect from 1 st April, 2009. On that date, the Goodwill and

General Reserves appeared in the books at Rs. 12,000 & Rs. 10,000 respectively. Goodwill

is revalued at Rs. 20,000, but they don’t want retain it in the books of firm and they also

don’t want transfer general reserve in their capital accounts. Your required to pass an

adjusting Journal entries. 4

11. Excel Ltd. issued 5,000, 12% Debentures of Rs.100 each, payable on application. Pass the

journal entries, at the time of following situations:

i. Issued at par redeemable at 10% premium.

ii. Issued at 5% discount, redeemable at 10% premium 4

12. Pass the journal entries to record the redemption under following cases:

a. 1,000, 8% debenture of Rs. 100 each issued @ discount of 10% is converted into 15%

debentures of Rs. 100 each issued @ premium of 25%. The debentures were converted at

the option of debenture holder before the due date of redemption.
 
3  

b. HP Ltd. a listed Co. has 10,000 debenture of Rs. 50 each due for redemption and Co. has

balance of Rs. 1,00,000 in his DRR Account on that date. 6

13.

Prepare the Income & Expenditure Account and the Balance Sheet from the following

Receipt & Payment account and the balance Sheet:

Receipt and Payment Account

Dr. For the year ending March 31, 2008 Cr.

Receipts Amount Payments Amount

To Balance b/d 40,000 By Expense 85,000

To Subscription By Honorarium 25,000

2006-07 8,000 By Up Keep of Lawn 18,000

2007-08 90,000 By Postage & Stationery 12,000

2008-09 15,000 1,13,000 By Furniture 40,000

To Life time Membership 25,000 By Prize Distriuted 30,000

To Sale of old News Papers 2,000 By Balance c/d 30,000

By Land(Costing Rs.50,000) 60,000

2,40,000 240,000

Balance Sheet as on 31.3.2007

Liabilities Amount Assets Amount

Capital Fund 1,50,000 Land & Building 2,00,000

Subscription 20,000 Subscriptions 10,000

Prize Fund 20,000 Cash 40,000

Life time Member Ship 25,000

Outstanding Expenses 5,000

2,50,000 2,50,000

6

14.

A, B & C are partner shaing profit in the ratio 3:2:1.

Balance Sheet

as on 31 March, 2008

Capital Accounts Cash

A 15,000 Debtors

B 10,000 Stock

C 10,000 Building

Creditors Profit & Loss A/c

B retired on above mention date on the following terms:

a. Building be appreciated by Rs. 7,000.

b. Provision for bad debts be made at 5% on Debtors.

c. Goodwill of the firm be Valued at Rs. 9,000 and adjustment in this respect be made

without raising Goodwill Account.

d. Rs. 5,000 be paid to b immediately and balance due to him be treated as loan carrying

interest @ 6% p.a.

Pass journal entires to record the above mention transactions and show us the

B’s Capital Account. 6

13,590 3,000

48,590 48,590

8,000

35,000

11,690

20,000

Laibilities Amount Assets Amount

5,900
Shakti Ltd. has authorised Capital of Rs. 1,00,00,000 , divided in to equity shares of Rs. 100 each.

Company issued a prospectus invited applications for issuing 20,000 equity shares of Rs. 100 each

at a premium of Rs. 10 per share. The amount was payable as follows :

On application Rs. 40 per share (including premium)

On allotment Rs. 30 per share

and the balance on first and final call. Applications for 80,000 shares

were received. Applications for 40,000 shares were rejected and pro-rata

allotment was made to the remaining applicants. Over payments on applications

were adjusted towards sums due on allotment. Manoj who was allotted 2,000

shares failed to pay the allotment and first and final call money. His shares

were forfeited. The forfeited shares were re-issued at Rs. 90 per share fully

paid up. Give necessary journal entries & Balance Sheet in the books of Shakti Ltd.

showing theworking clearly.

OR

Kamal Ltd. has Authorised capital of Rs. 2,00,000, divided into 2,000 shares

Which were offered for public at premium of Rs. 5 per share payable as follow:

On Application Rs. 10

On Allotment Rs. 25 (Including premium)

On First Call Rs. 40

On Final Call Rs. 30

Application were received for 900 share which were duly alloted and the allotment

money received in full. At the time of the first call, a shareholder who held 100

share failed to pay the first call and his shares were forfeited. These were reissued

at Rs. 60 per share, as Rs. 70 per share paid. After re-issue Final call is made.

Company incurred Rs. 5,000 expenses on issue which is to be written to Securities premium.

Pass the necessary Journal entries to record the above transactions.

16.

The following is the Balance Sheet of X & Y as on 31st March, 2009, K is admitted as a

partner on that when the position of X & Y was as under

Capital Accounts Goodwill

X 10,000 Machinery

Y 8,000Building

Workmen’s Compensation Stock

Reserve Debtors 12,000

Creditors Less: Provision 1,000

Bills Payable Cash

The following terms of admission are agreed upon:

a. Revaluation of Assets: Buildings Rs. 18,000; Stock Rs. 16,000.

b. The liability on workmen’s Compensation fund is determined at Rs. 2,000.

c. K brought in as his share of goodwill Rs. 10,000 in cash.

d. K was to bring in further cash as would make his capital equal to 20% of the combined

adjusted capital of X & Y.

Prepare the new Balance sheet of the firm and Capial Accounts of the partners

60,000 60,000

16,000

10,000 11,000

2,000 9,000

10,000

18,000 8,000

14,000 12,000

Laibilities Amount Assets Amount

10,000
 
OR

Singh, Khan & Gupta were partner sharing profit in the ratio of 3:2:1. Their Balance

Sheet on 31st March, 2009 was as follows:

Capital Accounts Machinery

Singh, Khan & Gupta w 40,000 Patents

Khan 30,000 Stock

Gupta 20,000 Debtors

Reserve Bank

Creditors Cash

The firm had Joint Life policy for Rs. 60,000 on which premium were paid in all amounting

to Rs. 25,000. The surrender value of the Policy was Rs. 9,000 on 31st March, 2009.

Khan Died on the above date and his executor agreed on the following terms:

a. Goodwill of the firm be valued at Rs. 25,000.

b. Machinery be written down by 10% patents written up by 25%, a provision of 5% be

created on debtors and a provision of 2.5% on creditors be made.

c. khan be paid Rs. 20,000 immediately, which is to be contributed by the other partners

in the ratio of their capital.

d. Singh & Gupta agreed to share profit in future in the ratio of 3:2.

11,000

1,19,000 1,19,000

20,000 90,000

9,000

20,000

10,000

8,000

25,000

45,000

Laibilities Amount Assets Amount

Prepare the new Balance sheet of the firm, Revaluation and Capital Accounts of the partners

Part B

Financial Statement Analysis

17. Name the asset shown as current asset in the Balance Sheet of a Co., but not considered as

current asset while computing Current Ratio. 18. State whether Machinery purchased from vendor & the payment is made by issuing 10%

Preference Shares will result in inflow, outflow or no flow of cash. 19. What is meant by Extraordinary items? 20.

The following is Balance Sheet as on 31st December

Amount Amount

Share Capital 2500000 Fixed Assets 3000000

Reserve & Surplus 500000 Investments 500000

Long-term Debts 1500000 Current Assets 1200000

Current Liabilities 500000 Preliminary Expenses 300000

5000000 5000000

Calculate:

i. Propriatory Ratio;

ii. Debt Equity Ratio;

iii. Total Assets to Debt.

Liabilities Assets
 
6  

21.

Profit and Loss Account for the year ended 31.3.2009

Particulars  Amount Particulars Amount

Opening  Stock 20,000 Sales  2,20,000

Purchases 1,25,000 Closing  Stock 10,000

Direct  Expenses 15,000

Gross  Profit 70,000

2,30,000 2,30,000

Depreciation 15,000

Salary    16,000 Gross  Profit 70,000

Loss  on  Sale  of  Machinery  4,000

Net  Profit  35,000 70,000 70,000

Calculate  the  following  ratios  on  the  basis  of  the  information  given  in  the  above

(i) Operating  Ratio

(ii) Stock  Turnover  Ratio

4

22.

From the following Prepare Comparative Income Statement: 2007-08 2008-09

Sale 2,00,000 2,50,000

Gross Profit 25% of Sale 20% of Cost

Indirect Expenses (Of Gross Profit) 15% 20%

Rate of Direct Tax 50%

4

23.

Calculate cash from operation from the following:

Profit made during the year Rs. 1,25,000 after considering the following items: Rs.

(a) Depreciation on Fixed Assets 10000

(b) Amortization of Goodwill 4000

(c ) Transfer to General Reserve 7000

(d) Profit on Sale of Land 3000

The following is the position of Current Assets and Current Liabilities: 2005 2006

Rs. Rs.

Debtors 15000 12000

Creditors 10000 15000

Bills Receivables 8000 10000

Prepaid Expenses 4000 6000

Provision for doubtful debts 3000 2400

Commission received in advance 14000 16000

Goodwill 15000 21000

Provision For Tax 40000 56000

Tax paid during the year Rs.28,000 & refund received During the year is Rs.15,000.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Best  of  Luck ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐