Accounts October Board Question Paper Solution
A comprehensive breakdown of the exam paper with solutions.
Q1. Attempt any Three of the Following sub–questions
[15 Marks](A) Answer the following in ‘one’ sentence each: [5]
(1) What is ‘balance sheet’?
A Balance Sheet is a statement showing the financial position of the business in the form of its assets and liabilities on a particular date.
(2) What is ‘deficit’?
Excess of expenditure over income shown by an Income and Expenditure Account represents a deficit for the financial year.
(3) What is ‘Sacrifice ratio’?
A ratio which is surrendered or given up by the old partners in favour of a newly admitted partner is called sacrifice ratio.
Formula: Sacrifice Ratio = Old Ratio – New Ratio.
(4) What is ‘allotment of shares’?
Allotment of shares means accepting application forms up to a certain fixed number as per the resolution passed in the meeting of the board of directors.
(5) Who is a ‘drawer’?
The person who draws or makes the bill of exchange is called the drawer. He is the creditor who will receive the money from the debtor.
(B) Write a word / term / phrase which can substitute each statement: [5]
(1) Debit balance on realisation account.
Loss on realisation of Assets and Liabilities
(2) The three extra days allowed over and above the period of the bill.
Days of grace or Grace days.
(3) Expenses which are due but not paid at the end of the year.
Outstanding expenses.
(4) A statement similar to a balance sheet.
Statement of Affairs.
(5) An asset which can be converted into cash immediately.
Liquid asset.
(C) Select the most appropriate alternative and rewrite the sentence: [5]
(1) The profit or loss from revaluation on retirement of partners is shared by _____________
(2) Purchase of stationery is a ________ expenditure.
(3) _____________ means payment of the bill before due date.
(4) Generally incomplete records are maintained by the __________
(5) The interest on drawings is transferred to ___________ side of the profit and loss account.
(D) State whether the following statements are True or False: [5]
(1) The debenture holder is the owner of the company. False
(2) The person, to whom or as per his order amount of bill is payable, is a payee. True
(3) Government is not interested in the analysis of financial statement. False
(4) On its dissolution the cash or bank account is closed automatically. True
(5) A bill can’t be deposited into a bank for collection. False
(E) Prepare a specimen of a Bill of Exchange from the following information: [5]
- Drawer: Rahul Chaudhari, 105 Ghodbunder Road, Thane.
- Drawee: Prakash Patil, 207, Ganga Road, Nashik.
- Payee: Sonal Chaudhari, M.G. Road, Dhule.
- Period of Bill: 60 days.
- Amount of bill: Rs. 10,000
- Date of Bill: 15th December, 2013
- Date of acceptance: 18th December, 2013.
Q2. Mrs. Asha keeps her books on Single Entry System...
[8 Marks]| Particulars | 31.3.2011 (Rs.) | 31.3.2012 (Rs.) |
|---|---|---|
| Cash at Bank | 10,000 | 64,000 |
| Sundry debtors | 50,000 | 80,000 |
| Stock in Trade | 60,000 | 10,000 |
| Furniture | 40,000 | 40,000 |
| Machinery | 100,000 | 100,000 |
| Bills Payable | 10,000 | 10,000 |
| Sundry Creditors | 30,000 | 40,000 |
- Mrs. Asha withdrew Rs. 30,000 for personal use.
- She further introduced fresh capital of Rs. 50,000.
- Depreciation is to be charged @ 10% p.a. on furniture and machinery.
Prepare: (a) Statement of affairs as on 31.3.2011, (b) Statement of affairs as on 31.3.2012, (c) Statement of Profit or Loss for the year ending 31.3.2012.
View Solution(A) What are the investing activities of cash flow? [4]
View Solution(B) State the limitations of analysis of financial statements. [4]
View SolutionQ3. Anil and Sunil were partners sharing profits and losses...
[10 Marks]Balance Sheet as on 31st March, 2010 is provided. Ram is admitted into the partnership.
Prepare: (a) Profit and Loss Adjustment account, (b) Capital Accounts of partners, (c) Balance Sheet of the new firm.
View SolutionSupriya, Surakha and Sujata were partners... Sujata died on 1st July, 2012.
Prepare: (a) Profit and Loss Adjustment Account, (b) Sujata’s Capital Account, (c) Working notes.
View SolutionQ4. On 14th May, 2012 Rohit sold goods on credit to Devidas...
[10 Marks]Rohit sold goods for Rs. 30,000 to Devidas and drew a bill for 4 months, which Devidas accepted. Rohit discounted the bill with his bank. On the due date, Devidas requested a renewal.
Renewal Conditions: Devidas should pay Rs. 10,000 on account along with interest of Rs. 500 in cash, and accept a new bill for the balance at 2 months.
Task: Give Journal Entries in the Books of Rohit.
View SolutionQ5. Uday and Prabhakar are partners sharing profit and losses...
[10 Marks]They dissolved their partnership firm on 31st March, 2012. Their Balance Sheet is as follows:
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|---|---|---|---|
| Sundry creditors | 15,000 | Cash at bank | 3,000 |
| Uday’s wife’s loan | 30,000 | Debtors 67,500 (-) R.D.D. 7,500 | 60,000 |
| Capital A/c: Uday | 1,38,000 | Stock | 1,35,000 |
| Capital A/c: Prabhakar | 90,000 | Machinery | 45,000 |
| Furniture | 30,000 | ||
| Total | 2,73,000 | Total | 2,73,000 |
Realisation Details: Goodwill Rs. 15,000, Stock Rs. 1,20,000, Debtors Rs. 54,000. Machinery was taken by Prabhakar, and Furniture by Uday. Uday agreed to discharge his wife’s loan. Creditors were paid at a rebate of Rs. 3,000. Dissolution expenses were Rs. 6,000.
Task: Pass necessary Journal Entries in the books of the firm.
View SolutionMilind and Co. Ltd. Issued 20,000 equity shares of Rs. 100 each.
- On Application: Rs. 20 per share.
- On Allotment: Rs. 35 per share.
- On First Call: Rs. 25 per share.
- On Second call: Rs. 20 per share.
The company received applications for 30,000 shares, rejected 10,000, and allotted 20,000. All money was received, and issue expenses were Rs. 5,000.
Task: Pass necessary journal entries in the books of the company.
View SolutionQ6. From the following details of Vidya mandir High School...
[12 Marks]Given the Balance Sheet as on 1st April, 2007 and the Receipts and Payments Account for the year ended 31st March, 2008.
Adjustments:
- Tuition fees still receivable are Rs. 10,000.
- Salaries still payable are Rs. 30,000.
- Insurance premium is paid for one year ending 30.09.2008.
- Rent paid in advance Rs. 4,000.
- Depreciate furniture and library at 10% on closing balances.
Task: Prepare Income and Expenditure Account for the year ended 31st March, 2008 and a Balance Sheet as on that date.
View SolutionQ7. Jitesh and Lailesh are in partnership sharing profits and losses...
[15 Marks]From the following Trial Balance and adjustments, prepare final accounts.
| Particulars | Debit (Rs.) | Credit (Rs.) |
|---|---|---|
| Prepaid Insurance | 800 | |
| Insurance | 2,000 | |
| R.B.D.D. | 1,000 | |
| Discount | 800 | |
| Postage and telephone | 3,200 | |
| Salaries | 56,000 | |
| Debtors and Creditors | 66,000 | 68,000 |
| Wages | 24,000 | |
| Opening Stock | 48,000 | |
| Carriage | 1,000 | |
| Purchases and Sales | 1,93,200 | 3,01,600 |
| Return inwards and outwards | 5,600 | 9,200 |
| Bank overdraft | 1,20,800 | |
| Plant & Machinery | 24,000 | |
| Land & Building | 1,76,000 | |
| Capital: Jitesh | 52,000 | |
| Capital: Lailesh | 48,000 | |
| Total | 6,00,600 | 6,00,600 |
Adjustments:
- Write off Rs. 2,000 for bad debts and provide R.B.D.D. 5% on debtors.
- Goods worth Rs. 4,000 were distributed as free samples.
- Closing stock was valued at cost Rs. 56,000 (market price Rs. 60,000).
- Salaries were outstanding Rs. 2,000.
- Depreciate Land and Building @ 5% p.a. and Plant & Machinery @ 10% p.a.
Task: Prepare Trading and Profit and Loss A/c for the year ended 31st March, 2013 and the Balance Sheet as on that date.
View Solution