|Time Allowed : 3 Hours||Full Marks : 100|
|The figures in the margin on the right side indicate full marks.|
|Answer Question No. 1 which is compulsory and any five from the rest .|
|1.||(a)||In each of the following cases, one of them is correct. Indicate the correct answer:||2x5=10|
|(i)|| A Bill of Exchange is |
|(ii)|| Statement of Affairs is a |
|(iii)|| Shareholder of a company is |
|(iv)|| Unfavourable bank balance means |
|(v)|| A and B are sharing profits in the ratio of 3:2. They admit C as a partner and the new profit sharing ratio is 2:2:1. If C pays Rs.1,000 towards goodwill, B will get |
|(b)||State with reasons whether the following statements are true or false:||2x5=10|
|(i)||A bearer cheque is payable to the person who presents it at the counter for encashment.||(0)|
|(ii)||Higher depreciation will not effect cash profit of the business.||(0)|
|(iii)||The balance in the Cash Book shows net income.||(0)|
|(iv)||A bill given to a creditor is called bills payable.||(0)|
|(v)||The excess of current assets over current liabilities is called net worth.||(0)|
|(c)||Fill in the blanks:||2x5=10|
|(i)||Real accounts can be of two types ___________ and ____________.||(0)|
|(ii)||A debit balance in the income and expenditure account denotes excess of ___________ over _________.||(0)|
|(iii)||Patent right is an __________ asset. So it is in the nature of ___________ account.||(0)|
|(iv)||The process of recording in the journal is called ___________ and the process of recording in the ledger is called __________.||(0)|
|(v)||___________ balance of Profit and Loss is a __________ asset.||(0)|
|2.||(a)||Ram and Rahim agreed to share profits as follows: |
First Rs.8,000 to Ram and the balance in 2:1. The profits for the year are Rs.11,600; the capitals being Ram Rs.40,000 and Rahim Rs.36,000. Interest on capital had been omitted from the books and is to be allowed at 5% p.a., — Adjust.
|(b)|| Flaming Ltd. offered for public subscription 5000 equity shares of Rs.10 each at a premium of Rs.2.50 per share payable as follows: |
Applications were received for 7500 shares and allotment was made pro–rata to applications for 5000 shares, letters of regret being issued for the remaining applications. Money over paid on application by the allottees was adjusted with allotment amount.
Rahim to whom 100 shares were allotted failed to pay the allotment money and on his failure to pay the first call, his shares were forfeited.
Haq, the holder of 150 shares failed to pay last two calls and his shares were forfeited after the second call was made.
Of the shares forfeited, 200 were allotted as fully paid upto Karim for Rs. 8 per share paid in cash.
Show the journal entries to record the forfeiture and reissue of forfeited shares including those relating to cash, assuming that the whole of Rahim's shares have been re–issued.
|3.|| New Delhi Recreation Club consists of a badminton section and a football section. The Balance Sheet of the Club as on 1.1.2004 is as under: |
In order to help pay for the new badminton court, ten–year badminton memberships were offered for sale, at the beginning of 2004 at Rs. 200 each. It is the club’s policy to write off the badminton court over a ten year period. Equipment are to be depreciated at 10%. The football kit can be considered to posses a nil value.
|4.|| The following is the Balance Sheet of A and B, who share profits and losses as 3 : 2 respectively, as at 31.12.2004: |
On 1.1.2005, C joints the firm and brings in the following assets:
Stock Rs. 21,000; Investments Rs. 12,000; Cash Rs. 15,000; Debtors Rs. 10,000.
Following were agreed upon:
|5.|| Mrs. Honey who is not an accountant by profession prepared a Trial Balance as on 31.3.2005. There was difference in the same which she tallied by taking the amount to Suspense A/c. She needs your help in preparing the correct Financial Statements for the year ended 31.3.2005. You on scrutiny find the following: |
You are required to pass the necessary journal entries and find out the exact profit for the year.
|6.|| Mrs. Sharmila a fashion designer did not follow double entry system of accounting. She approaches you with the following data for the financial year 2004-05. You are required to |
Data made available by Mrs. Sharmila:
A. Analysis of Current A/c with "Indian Bank".
B.Details of Cash transaction:
C. Details of Assets and Liabilities:
|7.||(a)||David sent goods costing Rs. 5,50,000 on consignment basis to Devi on 1.1.2005 @ 7% commission. Rs. 75,000 was spent on transportation by David. Devi spent Rs. 45,000 on unloading. Devi sold 85% of the goods received for Rs. 6,25,000, 10% of the goods for Rs. 85,000 and she took over the balance @ 5% below the cost price and sent a DD for the amount due from her to David. |
Show Consignment A/c and Devia’s A/c in the books of David.
|(b)||Me and You entered into joint venture contributing Rs. 45,000 each into joint Bank A/c with an under standing to share the profit or loss equally. It was also agreed to pay commission @ 5% on the sale made by the ventures. With the following details prepare|
1. Joint Venture A/c
2. Joint Bank A/c
3. Venturer’s Capital A/c
Goods worth Rs. 52,000 was purchased and 50% of the same was sold for Rs. 35,000 by "Me", Rs. 4,500 was spent on transportation. 25% of goods bought were sold by You for Rs. 17,500. Unsold goods were taken over at cost price by both the ventures in the profit sharing ratio and balance due the ventures was paid from joint Bank A/c
|8.||Write short notes on:||3+4+4+3|
|(a)||Historical cost concept;||(0)|
|(b)||Revaluation method of depreciation;||(0)|
|(d)||Change in the profit sharing ratio.||(0)|