| 1. | (a) | The del credere commission is payable on: | (i) | Cost of Sales; | | (ii) | Credit Sales; | | (iii) | Total Sales. |
| 2x10=20 | (1) |
| | (b) | Balance of sinking fund for replacement of assets is closed by transfer to: | (i) | Assets Account; | | (ii) | General Reserve; | | (iii) | Profit & Loss Account. |
| | (1) |
| | (c) | Interest on Partners Loan is payable in the absence of any agreement: | (i) | At the rate of 12%; | | (ii) | At the rate of 6%; | | (iii) | At the rate at which interest on capital is payable. |
| | (1) |
| | (d) | According to the decision of Garner Vs. Murray insolvent partner's capital deficiency is to be borne by solvent partners: | (i) | Equally; | | (ii) | According to Profit Sharing Ratio; | | (iii) | According to Capital Ratio. |
| | (0) |
| | (e) | Incoming partner paying for goodwill is to be shared by old partners according to: | (i) | Profit Sharing Ratio; | | (ii) | Sacrificing Ratio; | | (iii) | Capital Ratio. |
| | (0) |
| | (f) | Deferred revenue expenditure is to be written off. | (i) | In the year in which the expenses are incurred; | | (ii) | In the year in which benefit of expenses are exhausted; | | (iii) | Within 3 to 5 years. |
| | (0) |
| | (g) | Days of grace is: | (i) | At maturity on the third day after the day on which it is expressed to be payable. | | (ii) | At maturity on the third day from the day on which it is expressed to be payable; | | (iii) | On the third day from the day on which its is presented for payment. |
| | (0) |
| | (h) | Stock in the hands of the consignee is valued: | (i) | At market price if market price is less than cost price; | | (ii) | At selling price; | | (iii) | At cost price after inclusion of proportionate non-recurring expenses. |
| | (0) |
| | (i) | The application money on Shares must not be less than: | (i) | 10% of nominal value of shares; | | (ii) | 5% of nominal value of shares; | | (iii) | 50% of nominal value of shares. |
| | (0) |
| | (j) | The company can forfeit the shares: | (i) | As per provision of the Company Law; | | (ii) | Making provision in Memorandum of Association of the Company; | | (iii) | As per provisions in the Articles of Association of the Company. |
| | (0) |
| 2. | Summary of Receipts and Payments of Kolkata Medical Aid Society for the year ended 31st March, 2003 are as follows: Opening Cash Balance in hand Rs. 8,000, Subscription Rs. 50,000, Donation Rs. 15,000, Interest on Investments @ 9% p.a. Rs. 9,000, Payment for Medicine Supply Rs. 30,000, Honorarium to Doctors Rs. 10,000, Salaries Rs. 28,000, Sundry Expenses Rs. 1,000, Equipment purchase Rs. 15,000, Charity Show expenses Rs. 1,500, Charity Show collections Rs. 12,500.
Additional Informations: | 1.4.2002
Rs. | 31.3.2003
Rs. | Subscription due
Subscription due in Advance
Stock of Medicine in advance
Due for Medicine in Advance
Equipment in Advance
Building in Advance | 1,500
1,200
10,000
9,000
21,000
50,000 | 2,200
700
15,000
13,000
30,000
48,000 |
Prepare Income and Expenditure Account for the year ended 31st March, 2003 and also the Balance Sheet as on that date. | 8+8=16 | (0) |
| 3. | The Balance Sheet of P & R, a Partnership Firm, as at 31st March, 2003, is as follows: | Liabilities | Rs. | Rs. | Assets | Rs. | | Capital Account: | | | Goodwill | 14,000 | P
R | 26,400
33,600 |
60,000 | Land and Building
Furniture | 14,400
2,200 | Contingency Reserve
Sundry Creditors | | 6,000
9,000 | Stock
Sundry Debtors
Cash at Bank | 26,000
6,400
12,000 | | | 75,000 | | 75,000 |
P & R share Profits and Losses as 1 : 2. They agree to admit S (who is also in business of his own) as a third partner from 1.4.2003.
The Assets are revalued as under:
Goodwill Rs. 18,000, Land and Building Rs. 30,000, Furniture Rs. 6,000. S brings the following Assets into Partnership — Goodwill Rs. 6,000, Furniture Rs. 2,800, Stock Rs. 13,600. Profits in the new firm are to be shared equally by the three Partners and the Capital Accounts are to be so adjusted as to be equal. Prepare Revaluation Account, Partners Capital Account and Balance Sheet after the admission of S. | 4+6+6=16 | (0) |
| 4. | The Bank Balance as per Bank Statement of Sen & Co. as on 31st March, 2003 showed a Credit Balance of Rs. 19,500. On comparison with the Cash Book the following points were noted: | (a) | Cheques of Rs. 15,900 deposited on 29.03.2003 but cheque of Rs. 9,500 credited by the Bank on 3.4.2003. | | (b) | Cheque of Rs. 5,900 deposited with the Bank on 24.3.2003 but not recorded in the Cash Book. | | (c) | As per out standing order Bank paid on our Account Telephone Bill Rs. 2,500 and Electric Bill of Rs. 1,200 for the month of February, 2003, intimation for the same cam on 2.4.2003. | | (d) | Cheque of Rs. 16,000 issued to creditors by 31.3.2003 but cheque of Rs. 6,200 was presented by 31.3.2003. | | (e) | Bank has debited our account Rs. 500 for issuing cheque books from time to time but not recorded in the Cash Book. | | (f) | A cheque of Rs. 2,000 deposited with the Bank on 12.2.2003 but the Bank has credited Rs. 1,970 on 16.3.2003. | | (g) | Bank has credited out Account by Rs. 1,200 on account of interest on Fixed Deposit but not recorded in the Cash Book. |
Make necessary corrections in the Cash Book and prepare Bank Reconciliation Statement. | 8+8=16 | (0) |
|
| 5. | Abani of Kolkata consigned goods to Sajani of Mumbai for Rs. 1,00,000 to be sold on the basis of a Commission of 5% and del credere Commission of 1%. Abani paid the following expenses: Freight Rs. 2,500, Insurance Rs. 1,500, booking expenses Rs. 2,000. 1/10th of the goods with were lost in Transit for which the Insurance Company paid Rs. 9,000, 4/5th of the original goods were sold by Sajani for Rs. 1,20,000 and Sajani paid the following expenses: Freight Rs. 900, Railway yard Rent Rs. 450. Godown Rent Rs. 1,200, selling expenses Rs. 3,000, Sajani informs that one of the customer owing Rs. 2,400 has left without making the payment. Sajani paid the amount due to Abani.
Show necessary Ledger accounts in the Book of Abani. | 16 | (0) |
| 6. | (a) | What is Accommodation Bill? | 4 | (0) |
| | (b) | A Bill for Rs. 1,000 is drawn by Chunilal & Co. to Bhogilal & Co. and accepted by the letter payable at Bank of India. Show what entries would be passed in the Books of Chunilal & Co. under each of the following cases: | (i) | If they retained the Bill till the due date and then realised it on maturity. | | (ii) | If they discounted if with their Bankers for Rs. 950. | | (iii) | If they endorsed the Bill to their creditors Fax & Co. for Rs. 950. | | (iv) | If they sent the same to their Bankers for collection. |
| 12 | (0) |
| 7. | The following is the position of Assets and Liabilities of A + B who does not maintain Complete Books of Account. Capital of A at the beginning of the year was Rs. 10,000 more than B and interest on capital is allowable @ 10% of Opening Capital. | 1.4.2001 | 31.3.2002 | Cash in hand
Cash at Bank as per Pass Book
Stock at shop at cost
Sundry Debtors
Sundry Creditors
Furniture
Machinery | 2,500
15,200
20,000
23,000
32,000
6,000
20,000 | 5,200
20,200
25,000
32,000
23,000
6,000
25,000 |
Additional Information: | (a) | Partners have drawn A Rs. 3,000 p.m. and B Rs. 2,000 p.m. No interest is chargeable on drawings. | | (b) | Stock at shop includes goods sold for Rs. 5,000 at a profit of 20% not yet delivered. | | (c) | Depreciate Furniture 10% and Machinery 20% on closing balances. | | (d) | As on 31st March, 2002 cheque deposited but not credited by Bank Rs. 9,000 and cheque issued not presented for payments of Rs. 6,500. Bank has also debited out accounts by Rs. 200 as Bank charges. |
Prepare Statement of Profit & Loss for the year ended 31st March, 2002 and also a Balance Sheet on that date. | 8+8=16 | (0) |
| 8. | Varieties Ltd. issued 30,000 shares of Rs. 10 at Rs. 12 per share payable Rs. 3 on application, Rs. 5 on allotment including premium. Rs. 2 on first call and Rs. 2 on final call. Applications were received for 40,000 shares and the company refunded the Application money of 4,000 shares and rest of the excess Application money was adjusted with Allotment. All the calls were duly paid except Mr. A holding 300 shares failed to pay the Allotment and on his failure to pay 1st Call his shares were forfeited B holding 200 shares failed to pay the 1st call and on his failure to pay final Call his shares were forfeited. C holding 100 shares failed to pay the final call. The Company reissued 450 forfeited shares (including the shares of A) at the rate of Rs. 10 per share.
Pass Journal entries in the Books of the Company. | 16 | (0) |
