1. Name the account which shows the classified summary of transactions of a Cash Book in a not-for-profit organisation. (1) 2.

List two items that may appear on the Credit side of a partner.s fixed capital account.(1) 3. Give two circumstances in which sacrificing ratio may be applied. (1) 4. Name any two factors affecting goodwill of a partnership firm. (1) 5. What is the nature of Interest on Debentures? (1) 6. State the exceptions to the creation of Debenture Redemption Reserve as per SEBI Guidelines. (3)

7. Akash Ltd. issued 1,00,000 shares of Rs. 10 each, payable as follows : Rs. 2 on application payable on 1st March, 2006; Rs. 3 on allotment payable on 1st May, 2006; Rs. 2 on first call payable on 1st August, 2006 and Rs. 3 on second and final call payable on 1st December, 2006. All these shares were subscribed for and amounts duly received. Akriti, who had 8,000 shares, paid the amount of both the calls alongwith allotment. Suniti, who had 4,000 shares, paid the amount of second and final call with the first call. Calculate the amount of interest on calls-in-advance payable to Akriti and Suniti. The Company adopts Table A. (3)

8. X, Y and Z are partners sharing profits and losses in the ratio of 3:2:1. After the final accounts have been prepared, it was discovered that interest on drawings @ 5% had not been taken into consideration. The drawings of the Partners were : X Rs. 15,000; Y Rs. 12,600; Z Rs. 12,000.Give the necessary adjusting journal entry. (4)

9. P, Q and R are partners sharing profits and losses in the ratio of 5:3:2. From 1st January,2006, they decide to share profits and losses in equal proportion. The partnership deed provides that in the event of any change in profit sharing ratio, the goodwill should be valued at three years. purchase of the average of five years. profits. The profits and losses of the preceding five years are: Profits : 2001 - Rs. 60,000 , 2002 Rs. 1,50,000 , 2003 - Rs. 1,70,000, 2004 - Rs. 1,90,000. Loss : 2005 - Rs. 70,000. Give the necessary journal entry to record the above change. (4)

10. Raja Ltd. forfeited 400 shares of Rs. 25 each (Rs. 20 called up) held by Asha, for non payment of allotment money of Rs. 10 per share (including Rs. 5 per share premium) and the first call of Rs. 6 per share. Out of these, 300 shares were reissued to X at Rs. 20 per share at paid up value. Give journal entries for forfeiture and reissue of shares. (4)

11. Janta Papers Limited invited applications for 1,00,000 equity shares of Rs. 25 each payable as under: On Application Rs. 5.00 per share, On Allotment Rs. 7.50 per share On First Call Rs. 7.50 per share (due two months after allotment) On Second and Final Call Rs. 5.00 per share (due two months after First Call) Applications were received for 4,00,000 shares on Jan. 1, 2006 and allotment was made on Feb 01, 2006. Record journal entries in the books of the company to record these share capital transactions under each of the following circumstances: 1 The directors decide to allot 1,00,000 shares in full to selected applicants and the applications for the remaining 3,00,000 shares were rejected outright. 2 The directors decide to make a pro-rata allotment of 25 per cent of the shares applied for to every applicant; to apply the balance of application money towards amount due on allotment; and to refund the amount remaining thereafter. 3 The directors totally reject applications for 2,00,000 shares, accept full applications for 80,000 shares and make a pro-rata allotment of the 20,000 shares to remaining applicants the excess of application money is to be adjusted towards allotment and calls to be made.

12. The director of Poly Plastic Limited resolved that 200 equity shares of Rs.100 each be forfeited for non-payment of the IInd and final call of Rs.30 per share. Out of these, 150 shares were re-issued at Rs.60 per share to Mohit. Show the necessary journal entries .

13. (a) Alpha Ltd. has 5,000 8% Debentures of Rs. 100 each due for redemption on March 31, 2007. Assume that Debenture Redemption Reserve has a balance of Rs. 1,90,000 on that date. Record the necessary entries at the time of redemption of debentures. (b) What journal entries should be made for the issue of debentures in the following cases: (i) X Limited issued 30,000 12% Debentures of Rs. 100 each at par, redeemable at a premium of 5%. (ii) Y Limited issued 50,000 12% Debentures of Rs 100 each at a premium of 5%, redeemable at par.

14. A company.s Stock Turnover is 5 times. Stock at the end is Rs. 20,000 more than that at the beginning. Sales are Rs. 8,00,000. Rate of Gross Profit on cost 1/4; Current Liabilities Rs. 2,40,000. Acid Test Ratio 0.75. Calculate Current Ratio. (4)

15.. The Balance Sheets of Kewal Ltd. as on 31st December, 2006 and 31st December, 2007 were as follows

Additional Information :(a) Rs. 50,000 depreciation has been charged to Plant and Machinery during the year 2007. (b) A Piece of machinery costing Rs.12,000 (book value Rs. 5,000) was sold at 60% profit on book value. Prepare Cash Flow Statement.

16.. Shubh Limited has the following balances appearing in its Balance Sheet : The company decided to redeem its 9% Debentures at a premium of 10%. You are required to suggest the ways in which the company can utilise the securities premium amount. (3) sol. (i) Utilise Rs. 10,00,000 to write off underwriting commission. (ii) Utilise remaining Rs. 12,00,000 to provide for premium on redemption of 9% Debentures.

17. X Ltd. has a Debt Equity Ratio at 3 : 1. According to the management it should be maintained at 1:1. What are the two choices to do so? (1) Sol . The two choices to maintain Debt equity at 1:1 from 3:1 are : (i) To increase equity or (ii) To reduce Debt (iii) Both i.e. increase equity and reduce Debt. 1 18. State whether cash deposited in bank will result in inflow, outflow or no flow of cash.(1) sol. No Flow 1 19. Interest received by a finance company is classified under which kind of activity while preparing a cash flow statement ? (1) sol Operating Activity

20.. Following is the Balance Sheet of X and Y, who share profits and losses in the ratio of 4:1, as at 31st March, 2009 :

The firm was dissolved on the above date and the following arrangements were decided upon : (i) X agreed to pay off his brothers Loan (ii) Debtors of Rs. 5,000 proved bad (iii) Other assets realised - Investments 20% less; and goodwill at 60% (iv) One of the creditors for Rs. 5,000 was paid only Rs. 3,000. (v) Buildings were auctioned for Rs. 30,000 and the auctioneers commission amounted to Rs. 1,000. (vi) Y took over part of stock at Rs 4,000 (being 20% less that the book value). Balance stock realised 50%. (vii) Realisation expenses amounted to Rs. 2,000. Prepare : i) Realisation A/c ii) Partners Capital accounts iii) Bank A/c

Sol 21

Entry :-

(i) P/A adj. (ii) Accrued int. (i) prepaid ins.

To O/ S salary = 5300 To p/l adj. = 2500 To P/L adj. = 100

(ii) A current a/c 1200 B current a/c 1500 To p/l adj.

2700

Time : 3 hrs. 1. Name the account which shows the classified summary of transactions of a Cash Book in a not-forprofit organisation. (1) 2. List two items that may appear on the Credit side of a partner.s fixed capital account.(1) 3. Give two circumstances in which sacrificing ratio may be applied. (1) 4. Name any two factors affecting goodwill of a partnership firm. (1) 5. What is the nature of Interest on Debentures? (1) 6. State the exceptions to the creation of Debenture Redemption Reserve as per SEBI Guidelines. (3) 7. Akash Ltd. issued 1,00,000 shares of Rs. 10 each, payable as follows : Rs. 2 on application payable on 1st March, 2006; Rs. 3 on allotment payable on 1st May, 2006; Rs. 2 on first call payable on 1st August, 2006 and Rs. 3 on second and final call payable on 1st December, 2006. All these shares were subscribed for and amounts duly received. Akriti, who had 8,000 shares, paid the amount of both the calls alongwith allotment. Suniti, who had 4,000 shares, paid the amount of second and final call with the first call. Calculate the amount of interest on calls-in-advance payable to Akriti and Suniti. The Company adopts Table A. (3) 8. X, Y and Z are partners sharing profits and losses in the ratio of 3:2:1. After the final accounts have been prepared, it was discovered that interest on drawings @ 5% had not been taken into consideration. The drawings of the Partners were : X Rs. 15,000; Y Rs. 12,600; Z Rs. 12,000.Give the necessary adjusting journal entry. (4) 9. P, Q and R are partners sharing profits and losses in the ratio of 5:3:2. From 1st January,2006, they decide to share profits and losses in equal proportion. The partnership deed provides that in the event of any change in profit sharing ratio, the goodwill should be valued at three years. purchase of the average of five years. profits. The profits and losses of the preceding five years are: Profits : 2001 - Rs. 60,000 , 2002 Rs. 1,50,000 , 2003 - Rs. 1,70,000, 2004 - Rs. 1,90,000. Loss : 2005 - Rs. 70,000. Give the necessary journal entry to record the above change. (4) 10. Raja Ltd. forfeited 400 shares of Rs. 25 each (Rs. 20 called up) held by Asha, for non payment of allotment money of Rs. 10 per share (including Rs. 5 per share premium) and the first call of Rs. 6 per share. Out of these, 300 shares were reissued to X at Rs. 20 per share at paid up value. Give journal entries for forfeiture and reissue of shares. (4) 11. Janta Papers Limited invited applications for 1,00,000 equity shares of Rs. 25 each payable as under: On Application Rs. 5.00 per share, On Allotment Rs. 7.50 per share On First Call Rs. 7.50 per share (due two months after allotment) On Second and Final Call Rs. 5.00 per share (due two months after First Call) Applications were received for 4,00,000 shares on Jan. 1, 2006 and allotment was made on Feb 01, 2006. Record journal entries in the books of the company to record these share capital transactions under each of the following circumstances: 1 The directors decide to allot 1,00,000 shares in full to selected applicants and the applications for the remaining 3,00,000 shares were rejected outright. 2 The directors decide to make a pro-rata allotment of 25 per cent of the shares applied for to every applicant; to apply the balance of application money towards amount due on allotment; and to refund the amount remaining thereafter. 3 The directors totally reject applications for 2,00,000 shares, accept full applications for 80,000 shares and make a pro-rata allotment of the 20,000 shares to remaining applicants the excess of application money is to be adjusted towards allotment and calls to be made. 12. The director of Poly Plastic Limited resolved that 200 equity shares of Rs.100 each be forfeited for non-payment of the IInd and final call of Rs.30 per share. Out of these, 150 shares were re-issued at Rs.60 per share to Mohit. Show the necessary journal entries . 13. (a) Alpha Ltd. has 5,000 8% Debentures of Rs. 100 each due for redemption on March 31, 2007. Assume that Debenture Redemption Reserve has a balance of Rs. 1,90,000 on that date. Record the necessary entries at the time of redemption of debentures. (b) What journal entries should be made for the issue of debentures in the following cases: (i) X Limited issued 30,000 12% Deb. of Rs. 100 each at par, redeemable at a premium of 5%. (ii) Y Limited issued 50,000 12% Deb. of Rs 100 each at a premium of 5%, redeemable at par. 14. A company.s Stock Turnover is 5 times. Stock at the end is Rs. 20,000 more than that at the beginning. Sales are Rs. 8,00,000. Rate of Gross Profit on cost 1/4; Current Liabilities Rs. 2,40,000. Acid Test Ratio 0.75. Calculate Current Ratio. (4)

15.. The Balance Sheets of Kewal Ltd. as on 31st December, 2006 and 31st Dec, 2007 were as follows

Additional Information :(a) Rs. 50,000 depreciation has been charged to Plant and Machinery during the year 2007. (b) A Piece of machinery costing Rs.12,000 (book value Rs. 5,000) was sold at 60% profit on book value. Prepare Cash Flow Statement. 16.. Shubh Limited has the following balances appearing in its Balance Sheet : The company decided to redeem its 9% Debentures at a premium of 10%. You are required to suggest the ways in which the company can utilise the securities premium amount. (3) 17. X Ltd. has a Debt Equity Ratio at 3 : 1. According to the management it should be maintained at 1:1. What are the two choices to do so? (1) 18. State whether cash deposited in bank will result in inflow, outflow or no flow of cash.(1) 19. Interest received by a finance company is classified under which kind of activity while preparing a cash flow statement ? (1) 20.. Following is the Balance Sheet of X and Y, who share profits and losses in the ratio of 4:1, as at 31st March, 2009 :

The firm was dissolved on the above date and the following arrangements were decided upon : (i) X agreed to pay off his brothers Loan (ii) Debtors of Rs. 5,000 proved bad (iii) Other assets realised - Investments 20% less; and goodwill at 60% (iv) One of the creditors for Rs. 5,000 was paid only Rs. 3,000. (v) Buildings were auctioned for Rs. 30,000 and the auctioneers commission amounted to Rs. 1,000. (vi) Y took over part of stock at Rs 4,000 (being 20% less that the book value). Balance stock realised 50%. (vii) Realisation expenses amounted to Rs. 2,000. Prepare : i) Realisation A/c ii) Partners Capital accounts iii) Bank A/c 21. A and B are partners in a firm sharing profit and losses in the ratio of 4 : 5. Their fixed capitals are Rs. 100000 and Rs. 50000 respectively. Immediately after distributing Rs. 36000 profits for the year ended 31st December, 1997. It was discovered that in arriving at the profits for 1997, the following items were ignored : (iii) Outstanding salary Rs. 5300, (ii )Accrued interest on investment Rs. 2500 and (iii) Prepaid insurance Rs. 100. Make journal entries relevant to adjustment.