Acconts Preliminary Paper 2

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OMTEXCLASSES


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THEHOMEOFSUCCESSOMTEX CLASSES IST PRELIMINARY EXAMINATION BOOKKEEPING&ACCOUNTANCY

GROUP:B

TIME:-3HRSDATE:-12THOCTOBER,2010DAY-TUESDAYMARKS:-100

Q1.Attemptanyfourofthefollowing.(20marks)

A.Answerinonesentenceeach.(5marks)

1.Whichtypesofexpensesaredebitedtotradingaccount?

2.WhatisReserveFund?

3.Whoisanendorser?

4.Whatisnonprofitorganisation?

5.WhyisJointBankAccountopened?

B.Writetheword/term/phrasewhichcansubstituteeachofthefollowingstatement:(5marks)

1.Astatementshowingfinancialpositionofthebusiness.

2.Makingthepaymentofbillbeforeitsduedate.

3.Summaryofactualcashreceiptsandcashpayments.

4.TherelationshipbetweenpersonswhohaveagreedtoshareprofitorlossinJointVentureBusiness.5.APartnerwhoonlylendshisnametothefirm.

C.Matchthefollowingpairs.(5marks)

GroupAGroupB

1.Notforprofitconcerns

2.Fixedcapitalmethod.

3.Unexpiredexpenses

4.TemporaryPartnership

5.PureSingleEntrySystem

a.CapitalA/c.ofpartner.

b.CurrentA./cofPartner.

c.Jointventure

d.Asset

e.Liability

f.OnlypersonalA/cs.

g.Profit&LossA/c.

h.IncomeandExpenditureA/c.

D.Selectthemostappropriatealternativefromhosegivenbeloweachstatement.(5marks)

1.Reservefordiscounton______________hasadebitbalance.

a.Debtors

b.Creditors

c.BillsReceivabled.Loanadvanced.

2.IncomeStatementsandBalanceSheetarepreparedinasystematicandscientificmannerunder

________________

a.DoubleEntrySystem.

b.SingleEntrySystem

c.PartialEntrySystem.

d.IndianSystem.


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3.Beforeacceptingabill,itiscalleda_________

a.Note

b.Draft

c.Hundi

d.Request.

4.Valuationofgoodwilldependsupon________capacityofbusiness.a.Normal

b.Repaying

c.Earning

d.Capital

5.Iftwoormorepersonscometogethertocarryonabusinessactivityforashortperiod,itisknownas

___________

a.Jointventure

b.Consignment

c.Partnership

d.Stockexchange


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OMTEXCLASSESTHEHOMEOFSUCCESSE.Statewithreasonwhetherthefollowingstatementsaretrueoffalse.(5marks)

1.Scrapvalueofassetreducestheamountofannualdepreciation.

2.Whentheamountofthebillispaidontheduedate,itissaidtoberetired.

F.Preparebillofexchangefromthefollowingdetails.

Drawer-ShekharDesai,ShastriRoad,Mahad.(5marks)

DraweeSharadVerma,NarayanPeth,Pune.

Amount-Rs.3500/-

Period-3months.

Payee-MukundPande,Panvel

DateofBillDrawn21stJune,2007

DateofAcceptance-23rd

June,2007Q2.M/sAmolIndustries,Pune,purchasedmachineryforRs.19,400on1st

July1976,additionalmachinerycostingRs.10,000wasacquired.On1st

January,1976,andspentRs.600foritserection.On1st

January,1976was

soldforRs.12,000andonthesamedatefreshmachinerywaspurchasedatacostofRs.16,000.

Depreciationwasprovidedannually

on31st

July1978themachinerypurchasedon1st

Decemberattherateof10%ontheoriginalcost.Givethemachineryaccountanddeprecationaccount

for1976,1977and

1978.

OR

Q2.(A)Forthepurposeofvaluationofgoodwillitwasagreedtoconsidernetprofitsofthelast4years

andgoodwillistobe

calculatedatoneyearspurchaseofaveragenetprofitsoflast4years.Theprofitswere

ISTYEARIINDYEARIIIRDYEARIVTHYEAR

Rs.80,000Rs.90,000Rs.1,05,000Rs.1,10,000Q2.(B)Namethetwooutputdevicesofcomputersandexplaintheminbrief:

Q3.AbhapurchasedgoodsfromPrabhaoncreditforRs.10,000andacceptedabilldrawnbyPrabha

forfourmonths.Prabha

discountedthebillwithherbankforRs.9,800.BeforeduedateAbhaaccprachedPrabhawitharequest

torenewthebill.Prabha

agreedbutwiththeconditionthatAbhashouldpayRs.6,000withinterestofRs.150andacceptanew

billforthebalance.The


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arrangementsweredulycarriedout.Newbillismetonduedate.Passthenecessaryjournalentriesin

thebooksofPrabha.

Q3.JournalizethefollowingtransactionsinthebooksofSmita:

1.NitainformsSmitaaboutdishonorofAnitasacceptanceendorsedtoherbySmitaforRs.15,000.Nita

paidnotingcharges

ofRs.70.2.SmitaretiredheracceptanceforRs.7,000onemonthbeforeduedateatarebateof12%p.a.to

Smita.

3.ThebankinformsSmitathatSudhasacceptanceforRs.8,000senttobankforcollectionhasbeen

honoured.Bankcharges

debitedRs.160.

4.OuracceptancetoSoniforRs.5100issettledbyendorsingChitrasacceptancetousforRs.4,950.

Q4.YashandJayenteredintojointventuretopurchaseandsellcycles.Theydecidedtoshareprofit

andlossesequally.Yash

purchased150cyclesatRs.400eachandspentRs.2,000forcarriageRs.4,000forinsuranceand

drawsabillforRs.35,000onJay,

whichisdulyacceptedbyJay.Jaypurchased210cyclesatRs.400eachandspentRs.1,400for

carriageandRs.2,000forselling

expenses.Yashsold180cyclesatRs.750each.AlltheremainingcyclesofventureweresoldbyJayat

Rs.550each.

Jointventurewascompletedandboththepartiessettledtheiraccountsyouarerequiredtopreparejoint

ventureaccount

andJaysaccountinthebooksofYash.


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OMTEXCLASSESTHEHOMEOFSUCCESSQ5.Mr.Suryakantmaintainsbooksonsingleentryandwhogivesyouthefollowinginformation.

Particulars31-3-200631-3-2007

Cashinhand

Cashatbank

Stock

Sundrydebtors

Investments

Furniture

Machinery

Sundrycreditors

Outstandingexpenses

500

2500

20000

25000

20000

10000

25000

10000

3000

2000

5000

30000

40000

2000025000

40000

10000

2000

Additionalinformation

1.Mr.SuryakantintroducedfurthercapitalofRs.20000on1st

July,2006andhadwithdrawnRs.10,000duringtheyear.

2.Interestoncapitalisallowedat10%p.a.

3.Additionstofurnitureandmachineryweremadeon1st

October,2006

4.Writeofdeprecationonfurnitureandmachineryat10%p.a.

5.Createreservefordoubtfuldebtsat5%onsundrydebtors.

Prepare:a.Statementofaffairs.B.Statementofprofitandlossfortheyearended31st

March,2007.

Q6. Dimple and Simple enteredintoajointventure.Theyagreedtoshareprofitsandlossesinthe


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proportionoftheirinitialcontributionstothejointventure.TheyopenedajointBankA/c.anddepositedRs.60,000andRs.

40,000respectivelyasinitial

contributions.TheymadecashpurchasesofRs.70,000.TheyalsopaidRs.4,500forinsuranceand

freightandRs.1,750forsundry

expenses.Attheendoftheventure,thesalesamountedtoRs.1,10,000/-TherewasunsoldstockofgoodsworthRs.5000.Simple

tookovertheunsoldstock.TheJointVenturewasclosed.YouareaskedtoprepareJointVentureA/c.

JointBankA/candCo

venturesA/c.


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OMTEXCLASSESTHEHOMEOFSUCCESS1.Q7.FromthefollowingTrialBalanceofShyamandSundar,YouarerequiredtoprepareaTrading

andProfitandLossaccountforthe

yearended31st

December,2002andBalancesheetasonthatdateaftertakingintoconsiderationtheadditional

information.They

shareprofitsandlossesintheircapitalratio.

TrialBalanceason31st

December,2002

ParticularsAmountsParticularsAmounts

Drawings:

Shyam

Sundar

OpeningStock

Purchases

OfficeSalaries

Royalties

TradeExpenses

Advertisement

WagesandSalaries

CashinHand

Debtors

BadDebts

Investments

MotorVan

Furniture

OfficeRent

PlantandMachinery

FreeholdProperty

BillsReceivable

Discount

CapitalAccounts:

2,000

Shyam

1,000

Sundar

12,000

Creditors

80,000

Sales

6,000


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R.D.D

2,000

ReturnOutwards

1,400

BillsPayable

5,200ReserveFund

10,400

8,000

50,000

400

16,000

30,000

10,000

3,400

24,000

16,000

4,000

1,600

40,000

60,000

30,000

1,40,000

1,000

2,400

6,000

4,0002,83,4002,83,400

Adjustments:

1.ClosingstockwasvaluedatRs.17,600

2.AuditFeefortheyearwasoutstandingRs.2,400

3.CreateR.D.Dat5%onDebtors.

4.ThegoodsforRs.5,600purchasedandreceivedon25th

December,2002werenotrecordedinthepurchasebook.

5.Depreciatefreeholdpropertyat10%andMotorVanat25%

Documents

Acconts Preliminary Paper 2