ACCOUNTS

(Two hours)
Answercto thispaper must be written on thepaperprovidedseparately.
Youwit! NoT beallowedto write during thefirst I5 minutes.
This time is to be spentin readingthe questionpaper'
The time given at the headof thispaper is the time allowed
for writing the answers.
beclearlyshown;it shouldbedone
-4llv,orking,includingroughworh must
immediatelybefore/afterthe rest of the answen
so as to
Plcascakonote thatparts of thesamequestionmust be donecontinuously
facil*tate evaluation.
from SectionB'
.4ttemptoll questions
from SectionA and anytwo questions
or parts of questionsare givenin bracltetsI J'
Theintendedmarl<s
for questions
SECTIONA
AttemPtall questions'
Question1
two
(a) This question is to be answeredin a columnar form using
contains
columns.Rewrite column I in the given order. column II
phrasesto
descriptivephrasesfor itemsgiven in column I. Matchthe
Column
suit the itemsin ColumnI by selectingsuitablephrasesfrom
IL Ignorethosethat areextra'
Column1

ColumnII

i) The incomethroughadmission A methodto calculatedepreciation

of fixed assets'
t-eesshouldbe
Fixedliability'
iit Flred capitalmethod
iii) Unpaidsalary
Thtt p"p.t

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.-tt.ts

Capitalof the firm'

of 7 printed pages and I blank page'Turn Over

e CopyrightReserved

..ei

\,rrL$fftF

Y-

iv) Long terrn loansand

proprietors'fund

NeedscurrentA/c for completing

details.
Capitalised.
Currentliabilities.

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(b)

From eachof the given setsstatethe odd oneout:

(i)

Intereston fixed capital,Intereston drawings,Commissionpaid

'to the partner,Intereston bankloan.

(iD Financial expenses, Selling expenses, Direct expenses,

Administrativeexpenses.
(iii) Cashin hand,Land& building,Debtors,Pre-paidexpenses.
(iv) Active partner, Sleepingpartner, Partnerby estoppel,Minor
partner.
(c)

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Fill in the blanks,with a suitableword or phrase:

(i)

Non-trading institutionsprepare

(ii)

A Receipts& paymentsaccountmakes no distinction between

instead of

and
(iii) Pre-paidexpenses
showa

of the Balance Sheet.

at the
(iv)

so it will be shown

Endowment fund

should be capitalized and shown at

; it is shown at the

of

Receipt& PaymentA/c.

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Question2
From the following Trial Balanceof Mr. Gomesas on 3l't March 2000,
preparethe Trading Nc., Profit & LossAccountfor the year ending3l't

March 2000 and a BalanceSheetas on that date after making necessary

.:

adjustments:

OpeningInventory
Capital& Drawings
Furniture& Fixtures
Plant& Machinery
Purchase& Sales
Salaries& Wages
Postage& Telegrams
Rates& Taxes
Debtors& Creditors
Loanborrowed
Returns& Adjustments
Discount
Bad Debts& Recoveries
GeneralReserve
Commission
S{.mdrr'expenses
Cnshin hand
Casb'at Bank

Debit
Credit
Rs.
Rs.
20,000
9,000 60,000
10,000
29,000
80,000 1,30,000
22,400
1,900
3,000
20,600 10,000
12,000
5,000
2,000
200
600
800
400
10,000
1,050
100
800
3,000
20,350
2,25,100 2,25,100

-4,,rtnrmmus:
{&} saleries& \[-agespaid werein the ratio of 3 : l. wagesRs.4,000were
not patd
hr

closingsmckqr:otedasRs.35,000
is undervalued
by Rs.4,000.

1cI

Rs-600is tneared
asbaddebt.

r,f t

lmresron capitalis to be calculated@ s%p.a. andintereston loan

Xffo p.a Theloanwastakenon l'. July 1999.

(el

Deprreciation
is to be calculatedon Furniture& Fixturesby 5yop.a.
.*ndon Plant& Machinery@ I0%p.a.

(0

cmmission earningsis @ Rs.l00 per month,whereasRates& Taxes

is @ Rs.l000 per quarter.
t2g]

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SECTION B
AttemPtanYtwo questiottsWhererequired, candidatesare advisedto spreadtheir answersacrossthe two sidesof
the answerboo&etto ensure neatness.

Question3
preparean lncome & ExpenditureAccount and a Balancesheetfor the year
ending 3ltt December1999in respectof "ProspectusIntemational"a social
club, with the detailsand additionalinformationgivenbelow:Receipts& PaYmentsAccount
For the year ended31't l)ecember1999
To Balanceb/d
To Subscription
LastYear

5,000 By Salaries
By GeneralExpense

5,000
CurrentYear 20,500
Next Year 4,000
1,200 By Books
To Saleof Furniture

2,000

(Book value Rs.2000)

To Rent
To Entertainment

14,800 By Miscellaneous
Expense
12,800 By Telephone
By Fumiture
By Balancec/d

3,200
9,000
5,800
12,000

Information:
(a)

The club has 100 memberseach paying an annual subscription of

Rs.250.

(b)

on 3l$ December 1999, salariesoutstandingRs.2,000 and salaries

paid includedRs.2,000for the previousyear'

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On ltt January 1999 the club owned land and building valued at
Rs.2,00,000,
FurnitureRs.12,000andBooksRs.10,000.
(d)

Providedepreciation@ 5o/oon Land and Building.

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Question 4
A, B and C are partners,sharingprofit and lossesin the ratio of their capital
as reflected on l" January, 1999 which is Rs.40,000,Rs.30,000and
Rs.20,000 respectively. The balance of their current accormts were A
Rs.1,500,B Rs.1,800and C Rs.500(Dr.). They areentitledto draw l0% of
their capital during the year. Excess of this amount, if drawn, will be
regardedas advancewithdrawn by the parfiiersand interest@ l2o/op.a. is to
be paid. Interest on capital is to be allowed @ l0% p.a. During the year
1999,their withdrawalswere:A Rs.7,000,B Rs.5,000and C Rs.4,000.The
profit for the year was Rs.80,500.C is to get a commission@ 2% of the
GrossProfit which is Rs.1,76,000.
Draw up a Profit & LossAppropriationAccount and CurrentAccount of the
parhers.

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Question5
lWs. New India Ltd. Purchaseda computer for Rs.60,000on ltt January
1995 and spent Rs.40,000 for its installation. An additional computer
costing Rs.50,000was purchasedon I't July 1995. The first computer
becameobsoleteon I't July 1995and was sold off for Rs.40,000.On the
samedayanothercomputerwaspurchased
at thecostof Rs.1,20,000.
Depreciation is to be charged @ l0% p.a. on the written down value
method.On l$ January1998,the companychangedthe methodof providing
depreciation and adopted fixed instalment method keeping the rate of
depreciationsame.
Showthe computeraccountfor the yearendedfrom 1995to 1998.

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Question6
(a) the Bd

ReconciliationStatementas on 3l'r Decembetl999,needs

to be preparedfor Mr. R. Satrakundu,bearingin mind that:
(i)

The proprietor, who was allowed a bank overdraft facility of

Rs.10,000by his banker,reportsa debit balanceof Rs.15,400as

Perhis cashbook.
(ii)

chequesissuedand depositedby the clerk in December1999

wereRs.16,000andRs.9,000respectively.But the bankhadpaid
out chequesworth Rs.10,000only and creditedchequesworth
Rs.4,000onlYbYthe endof the Year'

(iiD Interestchargedon temporaryoverdraftand interestcollectedon

investmentof Rs.260 and Rs.500 respectivelywere recorded
onlYin the Passbook'
(i v)A ch e q u e fo rR s.l 4,000paidtoandencashedbyapar tywas
creditedin the cashbook for Rs'1,400'
(v)

The passbook alonereflecteda direct depositof Rs.5,000by a

customerMr. Giri and a club subscriptionof Rs'2,500paid by
the bank asper the standinginstruction'

(b)

com'
From the following particularssubmittedto you by lws. Lake
Ltd. ComPutethe following:
(i)

OPeratingratio

(ii)

GrossProfit ratio

(iii) Net Profit ratio

(iv) OPeratingNet Profit ratio'

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Trading and Profit & LossAccountfor the yar ended31'rMarch 2000

Dr.
To OpeningStock
To Purchases

Rs.

Cr.

Rs.

20,000

By Sales 440,000
LessRetum 40,000

2,00,000

1,40,000 By ClosingStock

To Wages

10,000

To GrossProfit

40,000
2,10,000
8,000

By GrossProfit

To SellingExpenses

5,000

By Intereston
Deposit

To Rent

3,000

To Intereston Loan

4,000

40,000
5,000

25,000
45,000

To Provisionfor
Taxation

10,000

2,10,000

To Office Expenses

To Net Profit

45,000
By Net Profit

5,000

To Dividend

10,000

To Net Profit

10,000

25,000

25,000

25,000

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