BOOK KEEPING & ACCOUNTANCY (50) Time : 3 Hrs. (AL Pages) Max. Marks : 80 Q. 1. Attempt any THREE of the following sub-questions : (15) (Ay (B) Answer the following questions in only ‘one’ sentence each: (5) (1) What is drawer? (2) What do you mean by dissolution of partnership firm? (3) What is balance sheet? (4) What do you mean by cash flow statement? (5) Which receipts are called as capital receipts? Write a word / term / phrase as a substitute for cach of the following statements (5) (1) Expenses incurred on dissolution ofa firm. (2) The ratio measuring the relationship between gross profit and net sales. (3) A gift given by a person to a concern as per the will. (4) The partner who neither brings capital nor participates in day to day activities of business. (5) Payment of the bill beture due date. Page 1 p.T.0.(C) Select the most appropriate alternative from the choices given below and rewrite the statements : ay G3) (4) (5) If the opening capital is % 80,000, closing capital is 2 1,80,000, withdrawals are % 10,000 and additional capital brought in the business is % 20,000, then the profit willbe __- (a) % 90,000 (by %1,10,000 (c) % 70,000 (d) %1,50,000 The Indian Negotiable Instruments Act was formed in the year (a) 1818 (b) 1918 (c) 1881 (d) 1981 X, Y and Z are partners sharing profits in the ratio of 5:3:2.1f Y retires then the new ratio willbe (a) 5:2 (b) 5:3 (c) 3:2 (d) 2:5 The issue of debentures less than the face value is called (a) at par (b) atpremium (c) at discount (d)_ none of these A bill which is drawn on 12!h June, 2016 is payable after two months, the due date of the bill will be _ (a) 12th August, 2016 (b) 15th August, 2016 (c) 14th August, 2016 (a) 16th August, 2016 (D) State whether the following statements are True or False : () (2) Drawee can transfer the OWnership of the bill. When goodwill is paid Privately, : . its entry in the books of accounts is not required Page 2 (5) (5)(3) Shares are always issued at par (4) Drawings made during the year decreases the profit under single entry system (5) Credit balance of profit and loss Ave shows net profit (E) Prepare a format of Bill of Exchange from the following infonnation (5) Drawer Madhuni Joshi, 1, Hari Mandir Road, Kolhapur. Drawee : Vaishali Babar, 2. Miraj Road, Sangh. Date of bill >. Sth November, 2016 Amount of bill 212,600 Period of bill : 90days Date of acceptance : 6th November, 2016 for 60 days only. Q. 2. Shri Amar started his business with a capital of 70,000 on Ist \8] April, 2015. His financial position on 31st march, 2016 was as follows : Particulars Cash Stock Bills payable Creditors 8,150 Debtors 20,000 Prepaid insurance 300 Bills receivable 15,150 Premises 42,400 Vehicles 20,100 Page 3 p.1.0.Se Te (1) Shri Amar brought additional capital of & 10,000 on 30th September, 2015 (2) Interest on capital is to be allowed at 5% p. a. (3). Shri Amar withdrew & 5,000 for his personal use (4) Depreciate vehicles at 10% p. a. and premises at 10% p. a. (3) Reserve for bad and doubtful debts is to be provided at 3% after writing off bad debts of @ 1,000. (6) Creditors of & 3,180 be written off. Prepare : (a) Closing statement of affairs as on 31-03-2016. (b) Statement of Profit or Loss for the year ended 31-03- 2016. OR (A) Give the meaning and types of ‘comparative financial statement’ and explain the steps to prepare it. (B) Give the meaning of ‘capital investment’ and explain return on investment Jayesh and Kamal are partners in a firm sharing profits and losses in the ratio 3 : 1. The following is on 315t March, 2016 Balance Sheet as on 31° March, 2016 Liabilities | Amount? Assets [Amount @ Capital accounts Building 60,000 Jayesh 60,000] Stock 40,000 Kamal 30,000 | Sundry debtors | 31,000 Page 4 Current accounts, Cash Jayesh Kamal Profit and loss account Sundry creditors |General reserve @) @ {10}They admitted Vimal as a partner on 1°* APT, ZU 10 He te sere on the following terms : (1) She should bring & 40,000 as her capital for Yah share in f future profits and & 20,000 as her share of goodwill. (2) Building is found overvalued by 20% and stock is found undervalued by 20% in the books These assets are to be adjusted at their proper values. (3) % 1,000 are to be maintained as reserve for doubtful debts. Preapare : (a) Revaluation account (b) Old partners’ current accounts (c) Balance Sheet of the firm after Vimal’s admission OR The Balance Sheet of Mac, Paul and Sam is as follows : Balance Sheet as on 3" March, 2016 Cr Cash 12,000 32,000] Debtors 16,000 18,000} Stock 10,000 Capital accounts Mac PaulQ. 4, 16,000 | Plant and Machinery 50,000, 88,000 Sam retires from the business on the above date on the follow- ing terms : (1) Stock to be depreciated by 6% and plant and machinery by 10%. (2) Provision for doubtful debts to be created at 5% on debtors. (3) Provision of € 1,600 to be made for outstanding rent. (4) Goodwill of the firm is raised to the extent of retiring partner’s share of & 18,000 and remaining partners decided that goodwill should not appear in the books of accounts. (5) Their profit sharing ratio is 2:2: 1. (6) The amount payable to the retiring partner be transferred to his loan account. Prepare : (a) Profit and Loss Adjustment Account. (b) Partners’ Capital Accounts ( e ) Balance Sheet of Mac and Paul. On Ist March, 2016 Meenakshi sold goods to Neeta worth 240,000. Neeta accepted a bill for 3 months drawn by Meenakshi on 1St March, 2016. . On 315t May, 2016 Neeta Tequested Meenakshi to renew the bill. Meenakshi agreed on condition that Neeta should pay = 10,000 icash and accept a new bill for the bala : nce amount plus interest @ 12% p. a. for 2 months. Page 6 {10}Neeta accepted the new bill drawn fy ay. Dr two months plus inte: On the due date the new bill was honoured. —_— Give founial Entries in the books of Meenakshi and prepare Neeta’s account in the books of Meenakshi Q. §. Races and Sandesh were partners sharing profits and losses {10] in the ratio 3 : 2. Their Balance Sheet on 31 March, 2016 was as under: Balance Sheet as on 31 March, 2016 Capital accounts Aadesh Sandesh Current accounts Aadesh Sandesh Creditors Bills payable 57,000 On the above date the firm was dissolved — (1) Assets were realised as follows : Furniture % 12,000, stock in trade & 18,000, bills receivable 2 2,500 and debtors could be realised 9,500 only. ,Q) Aadesh agreed to discharge the bills payable. 3) Creditors were paid under 5% discount. (4) Realisation expenses amounted to 2 3,000. Pass Journal Entries in the books of the firm. OR Page 7 1Akshat Co, Ltd. made an issue of 10,000 equity shares of @ 10 each, payable as follows : On application 22 per share On allotment 24 per share On first call @3 per share On second and final call @ 1 per share The company received applications for 15,000 equity shares of which applications for 5,000 equity money refunded. All the sharcholders paid upto the second call except Kavita, the allottee of 1.000 equity shares who failed to ares were rejected and pay upto the finul call. Pass Journal Entries in the books of Akshat Co. Ltd. Divya Library, Buldhana showed the following position of their accounting. Consider the adjustments given and prepare Income and Expenditure Account for the year ending 31 March, 2016 and Balance Sheet as on that date : Balance Sheet as on 31 March, 2015 Liabilities Amount & Assets Amount % Capital fund 3,45,000] Fumiture 36,250, Expenses due 2,75,500) Investment in securities Cash in hand Cash at bank Page 8 (aReceipts and Payments Account Dr. Receipts for the ye: 7 Year ending 31" March, 2016 Cr. Amount Payments Amount @ To Balance b/d = By Electricity Cash in hand | 4250] charges 3,490 Cash at bank 7,500 | By Postage 3,050 To Membership By Books subscriptions 90,000] purchased 40,000 To Entrance fees 12,500] By Payment for To Sale of scrap 750, expenses due 3,500 To Hire of By Sundry lecture hall 9,000, expenses §,250 To Inte By Investment securities 2,000] — in securities 50,000 By Furniture 14,000 By Balance C/d Cash in hand 3,210) Cash at bank 3,500 1,26.000 1,26,000 Adjustments : (1). During the current year, furniture was purchased on qst October, 2015. Depreciate furniture (@ 10% p. a. (2) G) Depreciate books by 7 50,000, Membership subscription received during the year includes % 7,500 for the year 2016-2017 and % 3,750 are outstanding for the current year. (4) Capitalise /2 of the entrance fees. Page 9———— 27 From the following Trial Balance and Adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended on 31 March, 2016 and Balance Sheet as on that date of M/s Durgesh and Dinesh : Trial Balance as on 31" March, 2016 Debit Balance Opening stock Cash in hand Salaries Furniture Plant and machinery Sundry debtors Interest paid Printing and stationary Purchases Wages Sales return Bad debts Discount allowed Land and building 1,200 450 650 25,000 9,000, 11,000 12,500 425 9,000} Capital A/c’s Durgesh Dinesh Sales Sundry creditors Bills payable Bank loan Discount received Purchase return Page 10 Amount @ 17,500 17,500 23,600 14,500. 3,500) 10,000) 88,450, ttAdjustments : (1) The stock on hand on 31St March, 2016 was valued at @ 14,500. (2) Outstanding salary was? 350. (3) Wages paid in advance to workers % 600. (4) Depreciate land and building at 5% p. a. and plant and machinery at 10% p. a. (5) Write off £500 for further bad debts. eo