MODEL EXAMINATION HSE II ACCOUNTANCY

WITH COMPUTERISED ACCOUNTING

Time: 2 Hrs Marks: 60

INSTRUCTIONS: Read the questions carefully. Maximum time allowed is 2 hrs excluding cool off time. 1 5 minutes cool off time is allowed.. You will not be allowed to write during the cooling off time. This time is to be spent in reading the questions carefully. PART I- ACCOUNTING (40marks)

1. Retirement of a partner leads to -------(a) Dissolution (b) Reconstitution (c) Amalgamation (d) Winding up of the firm

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2. Find the odd one and state reason: (a) Interest on Capital (b) Salary to Partner(c) Interest on Drawings (d) Interest on Loan. (1) 3. Shares issued to the promoters are debited to ..a/c (1) 4. Naja and Soja are partners in a firm sharing profits and losses in the ratio of 3:2. A new partner Pooja is admitted. Naja surrenders 1/5th share of her profit in favour of Pooja and Soja 2/5th of her share in favour of Pooja. What is the new ratio and what is the sacrificing ratio? (2) 5. Anu, Binu, and Cinu are partners sharing profits in the ratio of 5:3:2.Cinu is given a guarantee that his share in any year shall not be less than Rs.20000.The profits for the year ending December 31,2010 amounted to Rs.80000.Amount excess given to Cinu will be borne by Binu.Show the Profit and Loss Appropriation Account (3) 6. Excel Company Ltd. bought a building for 9, 00,000 and the consideration was paid by issuing 12% Debentures at Rs. 100/- each at a discount of 10%.Give Journal entries. (2) 7. A company offers to its shareholders the right to buy 2 shares at Rs.11 each for every 5 shares held. The market value of its shares is Rs.42.Calculate the value of the right. (4) 8. Ajai, Anand and Aravind are partners in a firm. Anand retires from the firm on 1st January, 2010. On his date of retirement, Rs.60, 000 is due to him.Ajai and Aravind promise to pay in three equal annual installments together with interest at 12% per annum. Prepare Anands loan account for the three years. (3) 9. Ram and Kiran are partners in a firm. They contributed Rs.18, 000 and Rs.12, 000 respectively as capital. Interest is payable 6% p.a. Ram is entitled to a commission of Rs. 2, 000 p.a. The firm made a profit of Rs.20, 000 before the above mentioned adjustment. Divide the net profit among Ram and Kiran. (4) 10. Can the shares be issued at a discount? If so, state the legal requirements for issuing shares at a discount. (4)

11. Anto and Nevin were equal partners. They decided to dissolve their business as on 31st December 2010. Their Balance Sheet on the date stood as under: Liabilities Sundry Creditors Bills Payable Capitals: Anto Nevin Rs. 20,000 14,000 10,000 15,000 5,000 15,000 6,000 5,000 60,000 60,000 ---------------------They decided to take up liabilities: Anto Sundry Creditors and Nevin Bills payable. Assets realised Debtors Rs. 4, 000; Furniture Rs. 10, 000; Stock Rs. 4, 000; Truck Rs. 15, 000 and Land & Buildings Rs. 35,000. Expenses on realization amounted to Rs. 500. Prepare Ledger accounts to close the books of the firm. (7) 12. Sun Co.Ltd., having an authorized capital of Rs. 25, 00,000 issued 1, 25,000 equity shares of 10 each at a premium of Rs. 2 per share payable as follows: On application On allotment On first call On final call Rs. 2 Rs. 6 (including premium) Rs.2 Rs 2 Rs. 10,000 20,000 Assets Land & Buildings Furniture and Fittings Truck Stock Debtors Cash

Only 1, 20,000 shares were subscribed for and the company received all the amount due with the exception of the first and final call amount on 600 shares. These shares were forfeited and reissued as fully paid at Rs. 7 per share. Pass the necessary journal entries and show how the items will appear in the balance sheet of the company. (8) (OR) The balance sheet of Kurian, Treesa and Nikhil who were sharing profits in the ratio of 4:3:2 stood as follows on 31st December 2010. Liabilities Sundry Creditors Capitals: Kurian Treesa Nikhil 20,000 15,000 10,000 ------------Rs. 7200 Assets Cash at bank Sundry Debtors Less provision for D/D Rs. 6,000 6,500 300 --------6,200 8,000 10,000 22,000 ---------52,200

Stock Plant and Machinery 45,000 Land and Buildings 52,200 --------

Treesa retired on the above date and it was agreed that: a) b) c) d) e) Stock be depreciated by 5% Provision for doubtful debts be brought upto 10% Land and Buildings be appreciated by 15% A provision of Rs.750 be made in respect of legal charges. The goodwill of the firm be valued at Rs. 10,800 (but no goodwill account to be raised). f) The capital of the newly constituted firm be fixed at Rs. 28,000, each partners share being in the new profit sharing ratio of 5/8 for Kurian and 3/8 for Nikhil.

Show the necessary ledger accounts and give the balance sheet after Treesas retirement. (8)

PART 2 COMPUTERISED ACCOUNTING (20 marks)

1. I, Mr. Anil, press F11 Key and display an yellow colored menu. I have no idea about

that. Identify the name of that menu 2. Memo voucher is used to record . a) For entering transactions not affecting accounts b) To reverse entries made c) To record special type of transactions 3. 28 is the number of something in Tally. What is it?

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4. A person heard number 256 and 65536 based on excel but he forgot it. What are they? (1) 5. Nikhil takes the balance sheet after doing the work in tally but it display in main heading only. What is the provision to display the balance sheet in detail form? (1) 6. After creating necessary ledger account Mr.Rohith displayed the list of ledger. He found that Ramus Account is wrongly spelt as Rams a/c. Can you rectify it in Tally (2) 7. An accountant could not know the procedure to prepare bank reconciliation statement in Tally. Please help him. (3)

8. Joseph created a company with account only option. Then he tried to create Hamam as a stock item but did not know the path. 1. What is the mistake of Joseph? 2. Explain the path to reach the menu. (3)

9. Sabu needs to create simple unit and compound unit relating to a stock item. Give advice to him (2) 10. Prepare a table for voucher entry in the format given below for the following transactions. Sl no Transactions Accounts Under Voucher Type Function involved Group Key

a) Started business with a Capital of Rs. 6, 00,000 b) Purchased goods from Ambrose for Rs. 2, 00,000 c) Returned goods to Ambrose for Rs. 20000 d) Opened an an account with Canara Bank with Rs. 14000 e) Withdrew money from bank for Office use 6000 f) Purchased furniture for Rs. 20,000 g) Rent Outstanding Rs. 900 h) Depreciate machinery by 10%

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