PART- A
( NOT FOR PROFIT
ORGANISATIONS, PARTNERSHIP FIRMS ANDCOMPANY ACCOUNTS)
_____________________________________________________________________________
1. Define goodwill. 1
2. What is meant by convertible
debentures?
1
3. State any two reasons for the preparation
of Revaluation Account on the retirement of a partner? 1
4. Distinguish between income and Expenditure
Account and Receipts and payment Account on the basis of nature of items recorded
therein? 1
5. Ram and Mohan are partners in a firm
without any partnership deed. Their Capitals are Ram Rs.80, 000 and Mohan
Rs.60,000. Ram is an active partner and
looks after the business. Ram wants that profit should be shared in
proportion of capitals.
State with reason whether his claim is
valid or not?
1
6. Calculate the amount of stationery to be
debited to the income and Expenditure
Account of Delhi recreation club for the year ended
31-3-2009 on the basis of
The following information:
31-3-2008 31-3-2009
Rs. Rs
Stock of stationery
850 650
Creditors for stationery
200 240
Amount paid for stationery during the year
was Rs. 5,000 3
7. 20,000 Shares of Rs.10each were issued for
public subscription at a premium of 10%.
Full amount was payable on application.
Applications were received for Rs. 3,00,000 shares and the board decided
to allot the shares on a pro rata basis. Pass journal entries.
3
8. State the exceptions to
the creation of Debenture redemption reserve as per SEBI
Guidelines 3
9. A, B and C are partners in a firm. They have omitted interest on capital @
10% p.a
for the three years ended 31st march 2009. Their fixed capitals on which
Interest was to be calculated throughout
were
A
Rs. 1,00,000
B
Rs. 80,000
C
Rs.70, 000
Give necessary adjusting journal entry
with working notes.
4
10. A firm of A, B and C is under
dissolution. Pass journal entries in the
following cases:
1.
Realization expenses of the firm
amounting to Rs.1, 600 paid by a partner A
2.
One creditor worth Rs.4,500 took
over stock valued at Rs.5,200 in full
Satisfaction
of his claim.
3.
An unrecorded asset was realized
for Rs.3, 500
4.
Assets were realized for Rs.
79,000
4
11. P.Q and R are
partners sharing profits and losses n the ratio of 5; 3; 2. From 1st
January 2009, they decided to share profits and losses in equal proportions.
The partnership deed provides that in the event of any change in profit sharing
ratio, the good will should be valued at three years purchase of the average of
five years profits. The profits and
losses of the proceeding five years were;
Profits
2004 - Rs.60, 000; 2005 - Rs.1,
50,000; 2006 -Rs.1, 70,000
2007 - Rs.1, 90,000, 2008 -Rs.70, 000 (loss)
Give the necessary journal entry to
record the above change.
4
12. From the under mentioned Receipts and Payments account for
the year ending 31st March 2009 of Bengaluru’s Club, prepare an
Income and Expenditure account for the same period.
|
Receipts
|
Amount
(Rs.)
|
Payments
|
Amount
(Rs.)
|
|
Balance b/d – Bank
Subscriptions
2008- 6,000/-
2009 – 40,000/-
2010- 2,000/-
Donations -
Hall rent
Interest on Bank deposit
Entrance fees
|
1,00,000
48,000
8,000
1,200
1,800
4,000
|
Purchase of furniture
(1st July 2008)
Salaries
Telephone Expenses
Electricity charges
Postage and Stationery
Purchase of books
Entertainment expenses
Purchase of 5% Govt. Paper
( 1st October 2008)
Miscellaneous Expenses
Balance c/d
Cash
Bank
|
20,000
8,000
1,200
2,400
600
10,000
3,600
32,000
2,400
1,200
81,600
|
|
Total
|
1,63,000
|
Total
|
1,63,000
|
The following additional
information is available:
a) Salaries out
standing Rs. 6,000/-
b)
Entertainment Expenses Out standing Rs.
2,000/-
c)
Bank interest receivable Rs. 600/-
d)
Subscriptions accrued Rs. 1,600/-
e)
50% of entrance fees is to be
capitalized.
f)
Furniture is to be depreciated at 10% per
annum. 6
13. Vari Madi Computers Ltd.
invited applications for Issuing 1,50,000 equity shares of Rs. 10 each at a
premium of Rs. 2 per share. The amount was payable as follows:
On Application Ra. 6 (including premium) and balance on Allotment.
Applications for 60,000 shares were received Pro-rata allotment was made to all
applicants. Excess money received on application was adjusted towards sums due
on allotment.
A shareholder to whom 3,000 shares were allotted failed to pay the allotment
money and therefore, his share was forfeited. Later on the forfeited shares
were re-issued for Rs. 35,000 as fully paid up.
Pass necessary journal entries hi the books of Company. 6
14. a.
Ravi Ltd had a balance of Rs26,
25,000 in its profit and loss account. Instead of the declaring a dividend it
decided it to redeem its Rs.25, 00,000 9% Debentures at a premium of 5%. P[ass
necessary journal entries in the books of the company for the redemption of
debentures .
b.
Pass journal entries at the time of
issue of debentures in the following cases;
1.
Issued 3,000, 12% debentures of
rs.100 each a premium of 5% redeemable at par.
2.
Issued 3,000, 12% debentures of
Rs.100 each at a par redeemable at a premium of 5% . 6
15. A B and C are partners sharing profits and
losses in the ratio of 4:3:3 respectively. Following is their Balance Sheet as
on 31-12-2009. 8
|
LIABILITIES
|
AMOUNT
|
ASSETS
|
AMOUNT
|
|
Sundry creditors
Capitals
A –
1,00,000
B –
60,000
C-
35,000
O/s Expenses
|
30,000
1,95,000
5,000
|
Cash
Sundry Debtors
Stock
Bills Receivable
Buildings
Furniture
|
60,000
30,000
30,000
10,000
70,000
40,000
|
|
Total
|
2,30,000
|
Total
|
2,30,000
|
On 1-1-2010, C is retired on the above date.
(1) Rs.25, 000,
was undervalued buildings.
(2) Furniture is depreciated by 10%.
(3) A provision
for doubtful debts is be created at 5%
on debtors.
(4) The goodwill is to be raised to Rs.60, 000
The
amount finally due to C be paid immediately.
OR
A
and B are partners sharing profits and losses in the ratio of 3:2 respectively.
Following is their Balance Sheet as on 31-12-2009.
|
LIABILITIES
|
AMOUNT
|
ASSETS
|
AMOUNT
|
|
Sundry
creditors
Capitals
A –30,000
B –16,000
Reserve
|
35,000
46,000
6,500
|
Cash
Sundry
Debtors
Stock
Bills
Receivable
Machinery
Furniture
|
22,000
16,000
15,000
3,000
25,000
6,500
|
|
Total
|
87,500
|
Total
|
87,500
|
On 1-1-2010, C is
admitted into partnership for 1/4th share on the following terms:
(a)
That C is to bring in Rs.10, 000 as
capital.
(b)
That a Goodwill brought by the new
partner is Rs.5,000/-
(c)
That the value of machinery is to
be raised to Rs.30, 000
(d)
That stock and furniture are to be
depreciated by 10%.
(e)
That a provision for doubtful debts
is be created at 5% on debtors.
(f)
That the capital accounts of the
partners to be readjusted on the basis of their profit sharing ratio. Any
additional amount be credited to their current accounts.
Prepare necessary Ledger Accounts and the opening Balance
Sheet.
16. Holi Ltd issued 50,000 equity shares of rs.10
each at 5% discount. Net amount was
payable was under.
Rs
On
application 3
On
allotment 3
On call 3.50
Applications
were received for 80,000 shares.
Applications for 10,000 shares rejected and the remaining were allotted
pro -rata. All the amounts were duly
received but reject could not pay the call money on his 2,000 shares. These shares were forfeited. Of these 1200 shares were reissued at Rs. 8
per share.
Make the journal entries in the cash book
and journal of the company. 8
OR
Bank
of Cochin issued 1000 equity shares on 1st April 2009 with face
value of Rs.10 per share at par. The
public Rs.3 was remitted with application subscribed only 900 shares. Rs. 3
was called at the time of allotment rest
to be made in two equal installments.
All call was made except in the final call. The dues against them were received in time
with the following exception.
Mr. Rajesh whom 30 shares were issued
did not pay the first call. These
shares were reissued at a discount of Rs.2 per share being paid Rs 8 paid up
credited to share capital account.
Draft
necessary journal entries in respect of the above transactions.
PART-B
FINANCIAL
STATEMENT ANALYSIS
17. Which ratio provide the information critical
to the long term operation of the firm? 1
18.
Capital gain tax paid by a
Financing company is classified under which kind of activity while preparing a
cash flow statement? 1
19. Which among the following is different from
others:
1. Operating
2. Budgeting
3. Investing 4.
Financing 1
20. Name the three items to
be shown under the heading ‘Reserves and Surplus ‘of company balance sheet as
per schedule VI Part -I of the companies act 1956? 3
21. Prepare Common Size Income statement from
the following: 4
|
Particulars
|
2008
(Rs)
|
2009 (Rs)
|
|
Sales
Cost of
goods sold
Administrative
expenses
Other
income
Income
tax
|
4,00,000
2,00,000
40,000
20,000
60,000
|
5,00,000
3,00,000
1,00,000
30,000
70,000
|
22. a. From the following compute current assets and
current liabilities.
Current ratio 3;1, Quick ratio 1;1, Closing stock RS.60,000,
b.
Ram has total debts Rs.3, 90,000, long term debts RS.3, 00,000 and
working capital Rs.50,000. Calculate the current ratio
4
23.
Find out cash flow from the
financing activities of Nokia Ltd from the following
information.
|
Particulars
|
2008 ( Rs)
|
2009 (Rs)
|
|
Debentures
Equity
share capital
10%
mortgage loans
Proposed
dividends
|
8,50,000
10,00,000
5,60,000
4,25,000
|
6,50,000
15,00,000
8,20,000
6,00,000
|
|
|
|
|
Additional information
1.
Interest on mortgage loan paid 10%
per annum
2.
Dividend paid during the year Rs.1,
75,000
3.
Debentures were redeemed at a
premium of 5%
4.
Interest paid on debentures rs.25,
000
6
OR
The following balances appeared in Plant
Account and Accumulated Depreciation Account In the books of Bharat Ltd:
|
Balance as on
|
31.3.2008
Rs.
|
31.3.2009
Rs.
|
Plant
|
2,50,000
|
3,70,000
|
|
Accumulated Depreciation
|
45,000
|
60,000
|
Additional
Information:
Plant costing Rs. 45,000; accumulated depreciation thereon Rs.20, 000, was sold
for.10, 000.
You are required to:
a) Compute the amount of Plant purchased, depreciation charged for the year and
loss on sale of plant.
b) Show how each of the Items related to the plant will be shown in the cash
flow statement.
-oOo-
