| 1. | Explain any four of the following : | 5each | |
| | (i) | Contingent liabilities | | (0) |
| | (ii) | Finance lease | | (0) |
| | (iii) | Closing entries | | (0) |
| | (iv) | Convention of conservatism | | (0) |
| | (v) | Average due date. | | (0) |
| 2. | (a) | Distinguish between the following : | 4each | |
| | | (i) | ‘Cash discount’ and ‘trade discount’, | | (0) |
| | | (ii) | ‘Joint venture’ and ‘partnership’. | | (0) |
| | (b) | What do you mean by 'normal loss' and 'abnormal loss' in consignment ? How are they treated in the books of account of consignor ? | 8 | (0) |
| 3. | Elucidate the following statements : | 4each | |
| | (i) | "Agreement of trial balance is not a conclusive proof of the accuracy of accounting records." | | (0) |
| | (ii) | "Accounting equation holds good under all circumstances." | | (0) |
| | (iii) | "Single entry system of book-keeping is an unscientific, incomplete and defective system." | | (0) |
| | (iv) | "Revenue earned and cost of earning revenue should be properly identified for a period." | | (0) |
| 4. | (a) | On 31st March, 2005, the cash book of a trader showed a bank overdraft of Rs.7,640. On a comparison of the cash book with the bank pass book, the trader ascertained the following differences: | Rs. | | Cheques deposited with the bank, but not credited by the bank | 10,000 | | Interest on securities collected by the bank, but not yet recorded in the cash book | 1,280 | | Dividend collected by the bank, but not yet recorded in the cash book | 1,000 | | Cheques issued, but not yet presented to the bank for payment | 37,400 | | Bank charges not yet recorded in the cash book | 340 |
From the above information, you are required to prepare the bank reconciliation statement showing balance as per pass book. Also ascertain the balance as per cash book after recording the missing items. | 8 | (0) |
| | (b) | From the records of an oil distributing company, the following summarised information is available for the month of March, 2005 : | Rs. | | Sales | 9,45,000 | | General administrative expenses | 25,000 | | Opening stock : 10,000 ltrs. @ Rs.30 per ltr. | 3,00,000 |
| Purchases: | 7th March, 2005,20,000 ltrs.@ Rs.28.50Perltr | | 21s1 March, 2005,10,000 ltrs. @ Rs.30.30Perltr | | Closing Stock: | 13,000 ltrs. |
Compute the following using the first-in-first-out (FIFO) method of inventory valuation: (i)
(ii)
(iii) | Value of inventory as on 31st March, 2005.
Cost of goods sold during March, 2005.
Profit or loss for the month of March, 2005. |
| 8 | (0) |
|
| 5. | X, Y and Z were partners in a business sharing profits and losses equally. Their balance sheet as at 31st March, 2005 was as follows : | Balance Sheet as at 31st March, 2005 | | Liabilities | Rs. | Assets | Rs. | X's capital
Z's capital
X's loan
Creditor | 1,60,000
1,00,000
2,00,000
10,00,000 | Machinery
Furniture
Stock
Debtor
Cash at bank
Y's capital
(Overdrawn) | 4,00,000
1,60,000
5,60,000
2,00,000
10,000
1,30,000 | | 14,60,000 | | 14,60,000 |
Due to adverse financial position of all the partners, the firm was dissolved as on the abovementioned date. The assets were realised as follows : | | Rs. | Machinery
Furniture
Stock
Debtors | 1,40,000
1,00,000
2,60,000
1,10,000 |
Expenses on realisation totalled Rs. 10,000. All the partners were insolvent. While a sum of Rs.20,000 was received from Y's private assets, nothing could be recovered from the private estates of X and Z.
Prepare the realisation account, partners' capital accounts, creditors account and deficiency account in the firm's ledger. Also show cash book. | 16 | (0) |
| 6. | (a) | Deepak of Delhi has a branch at Agra. Goods are invoiced to the branch at cost plus 25%. Branch is instructed to deposit cash every day in the Head Office account with the bank. All expenses are paid through cheques by the Head Office except petty cash expenses which are paid by the branch manager. Prepare the branch account in the books of Head Office after taking into account the following information: | | Rs. | Stock at invoice price on 1st April, 2004
Stock at invoice price on 31st March, 2005
Debtors on 1st April, 2004
Debtors on 31st March, 2005
Cash sales for the year
Credit sales for the year
Cash remitted to Head Office
Furniture purchased by branch manager
Goods invoiced to branch by Head Office
Expenses paid by Head Office
Expenses paid by branch
Cash sent to branch by Head Office with which
–branch purchased a safe for its use | 25,000
30,000
14,000
18,000
1,08,000
70,000
1,57,000
12,000
1,82,000
16,400
1,200
13,000 |
| 12 | (0) |
| | (b) | What is meant by 'depreciation' ?Why is it necessary to provide depreciation ? | 4 | (0) |
| 7. | Novel Education Society supplied the following information : Income and Expenditure Account
for the year ended 31st March, 2005 | | Expenditure | Rs. (in '000) | Income | Rs. (in '000) | To Salaries
To Scholarships
To Rent
To General expenses
To Audit fees
To printing tickets and souvenir
To Cost of entertainment
To loss on sale of book value,
(Rs. 80,000)
To depreciation
To surplus i.e.,excess of income over | 830
4,130
280
310
60
150
350
30
60
600 | By Subscriptions
By Government grant
By Proceeds of tickets for Entertainment
By Advertisement in souvenir
By interest on bank fixed deposits
(for full year @ 6% per annum) | 4,780
530
830
510
150 | | 6,800 | | 6,800 |
| Receipts and Payments Account for the Year ended 31st March, 2005 | | Receipts | Rs. (in '000) | Payments | Rs. (in '000) | To Balance b/f
To Subscriptions
To Government grant
To Sale of tickets
To Advertisements in souvenir
To Interest on bank fixed deposits
To sale of furniture | 380
4,600
530
830
460
100
50 | By Salaries
By Scolarships
By Rent
By General expenses
By Printing of tickets and souvenir
By cost of entertainment
By furniture
By balance c/f | 940
4,010
260
310
120
350
200
760 | | 6,950 | | 6,950 |
On 31s' March, 2004, subscriptions due were Rs. 1,50,000, furniture on that date was Rs.6,00,000.
Prepare balance sheets as at 31s' March, 2004 and 31s' March,2005: | 16 | (0) |
| 8. | (a) | On 10th August, 2004, the godown of a firm caught fire.From the following figures, ascertain the- loss of stock sufferedby the firm : | Rs. | Stock on Ist April, 2003
Purchases during the year ended 31" March, 2004
Sales during the, year ended 31st March, 2004
Stock on 31st March, 2004
Purchases from lst April, 2004 till the date of fire
Sales from 1st. April, 2004 till the date of fire
The value of the salvaged stock was agreed to be Rs. | 6,79,500
28,60,500
34,00,000
5,10,000
16,36,400
20,00,000
1,37,000 |
It was the practice of the firm to value stocks at cost less 15%. On Ist April, 2004, the prices were raised by the firm by 10%. | 8 | (0) |
| | (b) | On 1st December, 2004, Shyam accepted for mutual accommodation a bill drawn on him by Ram for Rs.80,000 at three months. The bill was discounted at 5% per annum and the proceeds were shared equally. On the same day and for the same purpose, Shyam received an acceptance from Ram for Rs.90,000 at three months. The bill was discounted for Rs. 1,800 as discount and the proceeds were shared as to two–thirds to Shyam and one–third to Ram.
On the due date, Shyam met his acceptance. But, Ram could not do so because he had become insolvent. On 31st March, 2005, his estate paid a first and final dividend of 50 paise in a rupee.
Pass the journal entries for all the transactions in the books of Shyam. | 8 | (0) |
