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Subject ± Accountancy

Ú
e Allowed : 3 Hrs. Max
u
Marks : 80

General Instruct ons:
1) All quest ons are co
ulsory.
2) All arts of quest ons should be atte
ted at one lace. SEÚ - C
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1) State any two te
s that aears n the deb t S de of artner¶s ca tal
Account when the ca tal s F xed. 1

2) How s µDonat ons¶ dealt wh le rear ng the f nanc al state
ent of a

not ±for-rof t organ at on? 1

3) What s µPa d-u Ca tal¶? 1

4) Raja and Ra
a are artners n a f r
shar ng rof t and loss n the
rat o of 5:3. Ran s ad
tted for 1/5 share n

the rof t wh ch he acqu res n the rat o of 3:2. Ascerta n the sacr f c ng
rat o of the old artners. 1

5) Why are assets and l ab l t es revalued at the t
e of ret re
ent of a

artner. 1

6) Mona Ltd urchased Assets of Sona Ltd for RS 320,000.A su
of Rs

130,000 was a d n cash and Rs 170,000

Equ ty Shares were ssued towards the full settle
ent of the balance.
Pass journal entr es n the books of

urchas ng Co
any. 3
 7) Show how w ll you deal w th follow ng te
s n resect of a Soc al
Club for the year end ng on 31st March 2006:

Úourna
ent Fund Balance as on 31st
arch 2005 Rs720,000

Grant towards tourna
ent rece ved dur ng the year Rs 40,000

Exend ture ncurred dur ng the year on conduct ng

tourna
ent Rs 45,000

Úourna
ent Fund Invest
ent Rs300,000

Interest rece ved on the Úourna
ent Fund Invest
ent Rs 9,000

3

8) Úata Ltd ssued 8,000, 12% debentures of Rs 100 each at 8%

d scount. Úhe debentures are redee
able by

draw ng n lots as follows:

1st Year n l; 2nd Year Rs 400,000; 3rd Year N l ; 4th Year Rs

400,000.

Calculate the d scount to be wr tten each year. 3

9) A and B carr ed on bus ness n artnersh  s nce 2004 shar ng rof t

and loss n the rat o of 2:1. Úhey ad
tted

C on 1st Ar l 2007 for 1/6th share. Úhe actual value of f r
¶s Goodw ll,
however, on that date was Rs 36,000.

C contr buted the follow ng assets towards ay
ent of h s Ca tal and
Goodw ll:

Cash Rs 4,000; Furn ture Rs 10,000; V
 Rs 12,000

Pass necessary journal entr es to g ve effect to the above. Also, g ve the new rof t shar ng rat o.
4

10) D nesh and Suraj are artners shar ng rof t and loss n the
rat o of 3:2 w th ca tal of Rs 400,000 and Rs.
300,000 resect vely. Interest on ca tal agreed at 6%.a. Suraj s
allowed a salary of Rs 3,000 er
onth. Dur ng
2006, rof t r or to Interest and Salary a
ounts to Rs 232,000.
Manager s to be allowed a co

ss on of 10%
of the D v s ble rof t. Preare an 
 show ng the allocat on
of the rof t. 4

11) Royal Ltd forfe ted 500 equ ty shares of Rs 10 each ssued at a
re
u
of 10% (ayable on allot
ent) for non

ay
ent of f rst call of Rs 2 and F nal call of Rs 3 er share on 31st
arch
2004. 300 forfe ted shares were

re ssued as fully a d of Rs 8 er share. Journal se. 4

12) a) A co
any ssued 12% Debentures of Rs 100 each for Rs 90,000 at

a d scount of 3% redee
able after 4 Years

at a re
u
of 10%. Pass necessary journal entr es for the ssue and
rede
t on of debentures.

b) At the co

ence
ent of 2006 ,a co
any has outstand ng 20,000, 13% Debentures of

Rs.100 each. D rectors

dec des to urchase 1,500 own debentures at Rs 95 for

ed ate cancellat on. Pass journal
entr es for

rede
t on of debentures. 6

13) Fro
the follow ng nfor
at on, Rece t and Pay
ent Account of
Ja n Soc ety, reare Inco
e and Exend ture
 Account for the year end ng 31st
arch 2004 and Balance Sheet as on that
date.

Rece ts A
ount Pay
ents A
ount

Úo Balance B/d 12,600 By Salar es 4,100

Úo Subscr t on 16,000 By Rent 1,200

Úo Sale of p  3,600 By Stat onery 8,500

Úo Sale of old furn ture 300 By Defence Bond 6,000

(Book value Rs 400) 2,500 By Furn ture urchased 800

Úo Donat on By Balance C/d 14,400

35,000 35,000

Add t onal nfor
at ons:

) Subscr t on of Rs 2,400 s outstand ng and Advance for 2005 Rs 1,200 as on 31st March 2004.

) Donat on rece ved dur ng the year s for construct on of Úe
le.

) Furn ture and Invest
ent as on 1st Ar l, 2003 was Rs 2,000 and Rs 14,000 resect vely. 6

14) P,Q and R were artners n a f r
shar ng rof t and loss n the rat o
3:2:1.Úhe r art culars as on 31st March 2006

was as follows:

Ca tal (Rs.) = P- 20,000; Q-30,000; R- 15,000.

Draw ng (Rs.) = P- 6,000; Q- 4,000; R- 3,000.

Reserve Rs 36,000; Goodw ll ±Rs 30,000.

On 1st July 2006, Q d ed . As er the ter
s of deed, executors of deceased artners s ent tled to
the follow ngs:

) Interest on ca tal @10% t ll the date of death.

 ) H s share of goodw ll. (Goodw ll s to be valued at 2 years¶ urchase of 3 years¶ Average
Prof ts)

) Share of rof t t ll the date as er the rof t average rof t of last 3 years.

Prof t for last 3 years was as 2004- Rs. 20,000; 2005 ±Rs. 32,000 and 2006 - Rs 38,000.

Q¶s Executors were a d Rs. 8,000

ed ately and re
a n ng a
ount was transferred to h s
Executors Loan A/c.

Show Q¶s Ca tal A/c and Q¶s Executors A/c. 6

15) Geeta Ltd ssued 10,000 shares of Rs 50 each ayable as follows:

Rs 10 on Al cat on , Rs 15 on Allot
ent and Rs 25 on F rst and F nal

call

In all 16,000 al cat on were rece ved, out of these al cat on for ,4000
shares were rejected and allot
ent was

ade to the rest on ro rata bas s. Every share holder a d the
oney as
and when due , excet Sohan who was

allotted 4,000 
  and who d d not a d allot
ent
oney.

H s shares were forfe ted after allot
ent .

F nal call was
ade after the forfe ture. Forfe ted shares were re ssued for
Rs.35 er share as Rs.40 a d u .

G ve Journal Entr es n the books of Geeta Ltd. [




K L
ted has been reg stered w th an author ed ca tal of Rs. 2,00,000 d v ded nto 2,000
shares of Rs. 100 each
of wh ch 1,000 shares were offered for ubl c subscr t on at a re
u
of Rs.5 share, ayable
as under

On al cat on 10

On allot
ent 25 ( nclud ng re
u
)

On F rst, call 40

On F nal, call Balance

Al cat ons were rece ved for 1,800 shares, of wh ch al cat ons for 300 shares were rejected
outr ght, rest of

al cat ons were allotted 1,000 shares on ro-rata bas s. Excess al cat on
oney was
transferred to allot
ent.

All the a
ounts were duly rece ved excet fro
Sundar, holder of 100 shares, who fa led to ay
allot
ent and

f rst call
.

H s shares were later forfe ted and re ssued to Shya
at Rs.60 er share, Rs 70 a d u.

F nal call has not been
ade. Pass Journal entr es n the books of K L
ted. 8

16) A and B are artners shar ng Prof t and loss n rat o of 5:3. On March
31st 2004 the r Balance Sheet was as:

L ab l t es A
ounts(Rs.) Assets A
ount(Rs.)

Ca tal 80,000 Cash 18,000

A 36,000 64,000 B lls Rece vable 14,000

B 44,000 22,000 Stock 44,000

Cred tors 14,000 Debtors 42,000

 B lls Payable Mach nery 42,000

General Reserve Invest
ent 20,000

180,000 180,000

Úhey dec ded to ad
t C nto the artnersh  on the follow ng ter
s:

Mach nery s to be derec ated by 10%

Stock s revalued at Rs 60,000

Invest
ents are taken over by B at Rs 18,000

Outstand ng Rent s Rs 1,000

C s to br ng Rs 6,000 as Goodw ll and suff c ent ca tal for a 2/5th share n the total ca tal of
f r
.

Preare Revaluat on A/c, Partners Ca tal A/c and Balance Sheet of the new f r
.



Follow ng s the Balance Sheet X , Y, and Z as on 31st March 2004 who were shar ng rof t and
loss n the rat o of

the r Ca tals.

L ab l t es A
ount(Rs.) Assets A
ount(Rs.)

Cred tors 40,000 Cash 36,000

B lls Payable 12,000 Debtors 50,000

Prov s on for doubtful debt 6,000 Stock 36,000

General Reserve 24,000 Furn ture 60,000

Ca tal Account 80,000 Mach nery 100,000

 X 80,000

Y 40,000

282,000 282,000

Y ret res on the above date on the follow ng ter
s:

) Prov s on for doubtful debts ra sed to Rs 8000.

) Outstand ng cla
for da
ages of Rs 2,200 s to be rov ded.

) Cred tors be reduced by Rs 12,000.

v) Goodw ll of the f r
s valued at Rs 40,000.

After the ret re
ent of Y, the ent re ca tal of the f r
was f xed at
Rs 180,000 and artners dec ded to
a nta n

t n the r new rof t shar ng rat o of 3:2.

Preare Revaluat on A/c, Partners¶ Ca tal A/c and Balance Sheet of
X and Y. 8


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17) State w th reason whether the L qu d Rat o of a co
any w ll

ncrease ,decrease or not change due to sale of

goods on    . 1

18) How do we treat ay
ent of d v dend wh le rear ng Cash Flow

State
ent. 1

19) What do you
ean by µCash Flow State
ent¶? 1

20) D scuss the advantages of Analys s of f nanc al State
ent . 3

 21) Preare a Co
arat ve Inco
e State
ent fro
the follow ng 4

Gross Sales 2000 2001 22) a) Current

120,200 135,800
Sales Return Rat o of a
20,200 5,800 co
any s 4:3,
Cost of goods sold
Work ng
40% of net sales 50% of net sale
Oerat ng Exanses Ca tal s Rs
15,000 14,000 80,000.Calculat
Inco
e Úax
e the a
ount of
50% 50%
Current Assets
and

Current L ab l t es.

b) Calculate Pror etary Rat o fro
the follow ngs: (2+2)

Part culars A
ounts(Rs.) 23) Fro
the

Clos ng Stock 60,000
follow ng
9% Preference Shares 400,000 Balance Sheet
of S Ltd,
Secur ty Pre
u
30,000
reare the Cash
General Reserve 10,000 Flow State
ent

Other Current Assets 110,000

Current L ab l t es 180,000

F xed Assets 350,000

Oerat ng Exenses 25,000

L ab l t es 2004 2003 Assets 2004 2003
Ca tal 200,000 160,000 Land & Bu ld ng 150,000 100,000

Prof t &loss A/c 20,000 30,000 Plant &Mach nery 80,000 60,000

Cred tors 50,000 40,000 Stock 20,000 30,000

Loan 40,000 30,000 Debtors 50,000 60,000

 Cash 10,000 10,000

310,000 260,000 310,000 260,000

Add t onal Infor
at ons:

a) D v dend a d dur ng the year was Rs 12,000

b) Derec at on on Bu ld ng a
ounted to Rs 15,000. 6

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