SYJC COM/B.K.

/PRELIM 21-22
TIME: 3 Hrs MARKS: 80
Note : (i) All questions are Compulsory
(ii) Figures to the right indicates full marks
Q.1.(A) Select the correct option and rewrite the sentence: [5]
1) Royalty paid on production is shown in the _______
a) Trading A/c b) Profit and Loss A/c
c) Balance Sheet d) Partner’s Capital A/c
2) Fund which provides permanent source of income to non-trading organisation is
called _______ fund.
a) endowment b) general
c) specific d) capital
3) In case of retirement of a partner, balance on Revaluation Account is transferred to _______
a) Retiring Partner’s Capital Accounts
b) All Partner’s Capital Accounts
c) New Partner’s Capital Accounts
d) Continuing Partner’s Capital Accounts
4) Debit balance of insolvent partner’s Capital Account is known as ___________
a) Profit b) Loss
c) Capital Deficiency d) Capital Surplus
5) The relationship between net profit before tax, interest and dividend and capital
employed is known from _______
a) Quick Ratio b) ROI
c) Current Ratio d) ROCE
(B) Write the word/phrase/term which can substitute each of the following
statements: [5]
1) Expenses which are paid before they are due.
2) Excess of total assets over total liabilities of ‘Not for Profit’ concern.
3) Liability likely to arise in future on happening of certain event.
4) Bills of exchange drawn and accepted without any valuable consideration.
5) It is damaged software, cracked nearly fully functional.
(C) Complete the sentences: [5]
1) Interest on capital is an _______ for the firm.
2) Legacy is received by ‘Not For Profit’ concerns on a ______ basis
3) ___________ Account is credited when goodwill is withdrawn by the old partner.
4) Deceased Partner’s Executor’s Account is shown on the ______ side of Balance Sheet.
5) ________ Shares can be redeemed after certain period of time.
(D) Prepare a bill of exchange from the following information: [5]
Drawer: Dinesh, P. R. Road, Andheri (West)
Drawee: Mahesh, L.B.S. Road, Mulund
Payee: Amit, Thane (West)
Amount: Rs. 9,500
Period of Bill: 4 months after sight
Date of Bill: 26th November, 2019
Date of acceptance: 29th November, 2019
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Q.2. The Balance Sheet of Meena and Neena who shared the profits and loses in the ratio
of 2 : 1 is as under: (10)
st
Balance Sheet as on 31 March, 2020
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Capital: Leasehold property 20,000
Meena 1,34,000 Livestock 6,600
Heena 1,20,000 Loose tools 90,200
Creditors 53,800 Stock 86,800
Rent outstanding 10,000 Debtors 48,000
Reserve Fund 7,200 Less: R.D.D. 2,000 46,000
Bank 75,400
3,25,000 3,25,000
st th
On 1 April, 2020 Seema was admitted as 1/4 partner on the following terms:
(1) Seema should bring in Rs. 1,20,000 towards her capital.
(2) Firm’s goodwill is valued at Rs. 1,44,000 and Seema agreed to bring her share in the
firm’s goodwill by a cheque.
(3) Reserve for doubtful debts should be maintained at 7.5% on debtors.
(4) Increase live stock by Rs. 4,400 and write off loose tools by 20%.
(5) Rent outstanding paid Rs. 9,040 in full settlement.
Prepare:
(1) Profit and Loss Adjustment Account (2) Partner’s Capital Account (3) Balance
Sheet of the new firm
OR
Q.2. Kale, Lele and Tele are sharing profits and losses as 3: 2: 1 respectively. Their
Balance Sheet as on 31st March, 2020 was as follows: (10)
st
Balance Sheet as on 31 March, 2020
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Capital: Cash 10,800
Kale 24,000 Debtors 18,000
Lele 18,000 Stock 12,000
Tele 12,000 Plant and Machinery 30,000
Creditors 16,800
70,800 70,800

Tele retires from the business on the above date on the following terms:
(a) Stock and Plant and Machinery to be appreciated by 5% and 10% respectively.
(b) Provision for doubtful debts to be created at 5% on debtors.
(c) The provision Rs. 600 be made in respect of outstanding rent.
(d) Goodwill of the firm is valued at Rs. 18,000 and the remaining partners decided that
goodwill should be written back.
(e) The amount payable to the retiring partner be transferred to his loan account.
Prepare:
(1) Profit and Loss Adjustment Account (2) Partner’s Capital Accounts (3) Balance
Sheet of Kale and Lele.
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Q.3. Following is the Balance Sheet of Kulkarni, Solkar and Bhave as on 31st March, 2020.
1 1 1
They were sharing profits and losses in the ratio of , , .
2 6 3
(10)
st
Balance Sheet as on 31 March, 2020
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Capitals: Buildings 19,000
Kulkarni 24,000 Machinery 13,500
Solkar 21,500 Furniture 3,000
General Reserve 12,000 Stock 20,500
Kulkarni’s Loan 7,500 Debtors 10,000
Creditors 12,500 Bills Receivable 6,000
Bills Payable 7,500 Bank 3,000
Profit and Loss A/c 1,500
Bhave’s Capital 8,500
85,000 85,000
On the above date the firm was dissolved and the assets realised as under:
(1) Building Rs. 18,000; Machinery Rs. 12,000, Debtors Rs. 5,000 and Goodwill Rs. 900.
(2) Kulkarni took over furniture and stock at Rs. 20,000 and agreed to pay creditors to a
discount of Rs. 500
(3) Solkar took over bills receivable at Rs. 5,200 and paid bills payable in full.
(4) Dissolution expenses paid amounted Rs. 1,600.
(5) Bhave became insolvent. No amount was recovered from his estate.
Show: Realisation A/c; Capital Accounts and Bank A/c.
OR
Q.3. Vaidya sold goods to Sathe for Rs. 5,000 at 5% T.D. and on the same date drew on
Sathe a bill for 2 months. Sathe accepted the same and returned to Vaidya. Vaidya
then endorsed the bill to Joshi.
On the due date Joshi informed Vaidya about dishonour of bill and noting charges
paid by him Rs. 50. Vaidya settled Joshi’s A/c and drew a fresh bill on Sathe for the
amount due plus interest Rs. 100 for one month. The new bill was honoured on due
date.
Pass Journal Entries in the books of Vaidya. (10)
Q.4. Bharat Ltd. Issued 7,000 Equity Shares of Rs. 10 each payable as follows:
On Application Rs. 4 On Allotment Rs. 4 On Call Rs. 2
The company received applications for 10,000 Equity shares. The excess applications
were rejected and refunded. The money due on allotment and calls were received in
full except on 100 shares the call amount was due. These shares were forfeited.
Pass Journal Entries to record above transactions in the book of company.
(08)
OR
Q.4. Explain the importance of Computerised Accounting System. (08)

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Q.5. The Balance Sheet of Manoj, Sanjay and Vinod as on 31 st March, 2020 was as
follows: (08)
st
Balance Sheet as on 31 March, 2020
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Capital: Manoj 30,000 Patents 15,000
Sanjay 10,000 Debtors 18,000
Vinod 20,000 Stock 2,000
Reserve Fund 9,000 Bills Receivable 10,000
Creditors 3,000 Cash at Bank 27,000
72,000 72,000
st
Vinod died on 1 August, 2020 and the following adjustments were agreed:
(1) 1/5th of patent to be written off.
(2) Unrecorded creditors amounted Rs. 500
(3) Stock revalued at Rs. 2,500
(4) Allow 12% interest on capital.
(5) The goodwill of the firm is to be valued at 2 years purchase of average profit of last 4
years. The profits were: Rs. 24,000 for 2019-20; Rs. 18,000 for 2018-19; Rs. 22,000
for 2017-18 and Rs. 26,000 for 2016-17.
(6) The deceased partner’s share of profit upto the date of his death should be based on
the average profit of last 2 years.
Prepare: (1) Profit and Loss Adjustment A/c (2) Vinod’s Capital A/c (3) Working for
share of Goodwill to Vinod and (4) Working for share of profit to Vinod.
OR
Q.5. Given below is the Balance Sheet of Rajesh Ltd. (08)
st
Balance Sheet as on 31 March, 2020
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Share Capital 1,25,000 Fixed Assets 1,00,000
Debentures 1,00,000 Sundry Debtors 1,05,000
Reserves 25,000 Bank Balance 45,000
Bills Payable 25,000 Inventory 75,000
Sundry Creditors 50,000
3,25,000 3,25,000
Additional Information:
(1) Net Sales Rs. 1,00,000 (2) Cost of Goods sold Rs. 75,000
(3) Operating Expenses Rs. 10,000
Calculate: (1) Gross Profit Ratio (b) Net Profit Ratio (3) Current Ratio
(4) Liquid Ratio (5) Return on Investment Ratio.
Q.6. From the following Receipts and Payments Accounts of A.S.C. College of Commerce,
Ramanand Nagar, for the year ending 31st March, 2020 and additional information,
prepare Income and Expenditure Account for the year ending 31 st March, 2020 and
Balance Sheet as on that date. (12)

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Dr. Receipts and Payments Account for the
year ended on 31st March, 2020 Cr.
Receipts Amount Payments Amount
(Rs.) (Rs.)
To Balance b/d By Salaries 67,000
Cash in Hand 7,950 By Electricity 26,200
Cash at Bank 50,800 By Books 41,300
To Life membership fees 20,500 By Furniture 45,000
To Donations 1,00,000 By Stationery 18,300
To Tuition fees 1,30,000 By Fixed deposits 2,00,000
To Term fees 1,00,000 By Balance c/d
To Admission fees 40,000 Cash 1,450
Bank 50,000
4,49,250 4,49,250
Additional Information:
(1)
Particulars 01.04.2019 31.03.2020
Amount Amount
(Rs.) (Rs.)
Furniture 40,000 75,000
Building Fund 1,50,000 --
Fixed Deposits 1,60,000 --
Capital Fund 1,20,750 --
(2) 50% of donations are received for building fund.
(3) Life membership fees are to be capitalized.
(4) Tuition fees includes Rs. 12,000 received for the last year
(5) Outstanding tuition fees for the current year amount to Rs. 4,200
Q.7. Ajay and Sanjay are partners in a firm sharing profits and losses in the ratio of 2 : 1.
From the following Trial Balance and adjustments, you are required to prepare
Trading and Profit and Loss A/c for the year ending 31st March, 2020 and Balance
Sheet as on that date. (12)
st
Trial Balance as on 31 March, 2020
Particulars Debit (Rs.) Credit (Rs.)
Insurance 1.000
R.D.D. 500
Discount 400
Postage and Telegram 1,600
Salaries 28,000
Debtors and Creditors 33,000 34,000
Wages 12,000
Opening Stock 24,00
Carriage 500
Return Inwards and Outwards 2,800 4,600
Purchases and Sales 96,600 1,50,800
Bank Overdraft 60,000
Plant and Machinery 12,000

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 Land and Building 88,000
Drawings: Ajay 4,000
Sanjay 2,000
Capitals: Ajay 30,000
Sanjay 26,000
3,05,900 3,05,900
Adjustments:
(1) Closing Stock on 31.03.2020 was valued at cost Rs. 28,000 while its market value
was Rs. 30,000
(2) Salaries were outstanding Rs. 1,000.
(3) Goods worth Rs. 2,000 were distributed as free samples.
(4) Depreciate Land and Building @ 5% p.a. and Plant and Machinery @ 10% p.a.
(5) Write off Rs. 1,000 for bad debts and provide reserve for bad and doubtful debts @
5% on debtors.

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