Name ________________ Signature of candidate ____________ ____________
Signature of invigilator _______________
Pr i nci palofAccount i ngI . ComI I SECTION-A TIME ALLOWED:- 15 MINUETES Choose the best answer:
1. If the adjusted adjusted capital capital at the end is more more than the capital capital in the beginning beginning then then the dierence will be : a) Gross prot b) Gross loss c) Net prot d) net loss !. If the capital in the beginning 1 st jan !""# $s. %"&"""' capital introduced on 1 st ma( !""# $s. !"&""" rate of interest per annum & then the interest on capital at 1 st *ecember will be& a) +,""
b) #%""
c) ,"""
d) #"""
. If cost of good sold $s. +""""- gross gross prot on on cost 1+ & then the value of sales will be& a) #!+""
b) #"!+""
c) #!!+"
#. /he term term depre depreciat ciation ion used with referenc reference e to a) /angibles asset b) Intangible Intangi ble asset asset +. Scrap Scrap value value is also also 3nown 3nown asa) $esidual $esidual value b) brea3 up value these
d) #"+"" c) 0urrent asset
c) both a 4 b
,. depre depreci ciati ation on is char charged ged on on ' a) onl( 2ed assets b) onl( current asset these
d) i2ed i2ed
d) None of
c) both a 4 b
6. If depreciat depreciation ion is not ta3en ta3en into into the account account the value value of asset asset ma( be a) ma( b more b) ma( b less c) no change more or less
d) 5ll of
d)ma( b
%. when capital capitals s accounts accounts are 7uctuating 7uctuating & than all the adjustme adjustments nts are made made ina) 8artner9s capital account b) partner9s loan account c) partner9s 2ed account
d) partner9s current account
:. In the absent absent of agreement agreement the the interest interest on drawings drawings will will be charged charged ; a) , b) + c) ! no interest 1".5 partner has a right to a) /a3e part in the conduct of business
d)
b) inspect the boo3s of rm
c) share in prots
d) all of these
Pr i nci palofAccount i ngI . ComI I SECTION-B TIME ALLOWED:- 2.5 rs !"#e short answer s o$ the $o%%ow"n&: 'an( ten) *+ 1) Statement of aairs !) *ouble entr( s(stem ) *epreciation #) *epletion
+) 0ost price of an asset ,) 5morti
2+
1 ) >r. /ipu 3eeps the boo3 under single entr( s(stem. /he position of his business as on 1st jan. !""+was as under-
Sundr( creditors& $s. 16"""& reehold premises& $s. +""""& stoc3 $s. !+"""-sundr( debtors& $s. !""""' urniture& !""". 5n abstract of cash boo3 is appended below$eceipt
$S.
8a(ments
$S.
Sundr( debtors
1+"""
[email protected].!""+)
1""""
0ash sales
%""""
=2penses
+""""
*rawings
"""
Sundr( creditors
/otal
:+"""
!""""
0ash in hand
!"""
0ash at ban3
1""""
/otal
:+"""
0losing stoc3 & """"' 0losing debtors & !+"""& 0losing 0reditors& 1!"""& No additions were made during the (ear to premises and furniture account& but the( are to be depreciated at 1" and 1+ respectivel(. 5 bad debt reserve of !.+ is to be raised. 8repare /rading 4 an 8rot 4 Aoss account for the (ear ended 1& *ecember !""+ and a Balance Sheet as on that date.
2) A transport compan( purchases 1" motor truc3s at $s. :"""" each on 1 st 5pril & !""! . ?n 1 st ?ctober& !""# one of the truc3 got an accident and was completel( destro(ed. $s. +#""" are received from the insurer in full settlement. ?n the same da( another truc3 was purchased for the sum of $s. 1""""". /he compan( wrote o depreciation at !" on original cost per annum and observed the calendar as its nancial (ear. Give the motor truc3 account from !""! to !""#. Atte,t an( three 0/est"on
*+
1) Sa&heer is not writing his boo3s properl(. rom the following information prepare a statement showing prot or loss and statement of aairs for the (ear ending " th Cune& !""+. 1..2++ Cash
*+.3.2++5
:""
!%""
Debtors
!!%""
!1#""
Cre4"tors
1!""
!%#""
Sto6
#""
6#""
B"%%s ree"#ab%es
"+""
!%%""
Ban6 o#er4ra$t
#"%""
:!""
Motor 7ans
#!""
#!""
8/rn"t/re
#""
#""
*rawings $s. #%""- *epreciate urniture at 1". Drite o $s. %"" on motor van. 8rovide $s. 1""" as bad *ebts and + as reserve on debtors. 8rovide reserve of $s 1,"" on Bill receivables. 2) 5 rm purchased a truc3 for $s. +""""on 1 st Canuar( !""! $s. !"""" on its overhauling. *epreciation is written o 1" p.a on reducing balance method. ?n " th Cune !""+ the truc3 was sold for $s """" . 8repare the truc3 account from !""! to !""+ assuming that the (ear will be ended on 1 st *ecember. *) 9 an4 set up a partnership rm on 1.1!""+. /he( contributed $s. 1+"""" and 1!"""" respectivel( as their capitals and decided to share prot at the ratio of -!. E received salar( """ per month and F received commission of $s. 1+""". Interest on capital is , p.a. drawings for the (ear were E $s. 1%"""& F $s. 1!""" and interest on drawings was charged %1" and +#" respectivel(. Net prot for the (ear are amounting to 1",:%".
Fou are reuired to prepare 8 4 A 5ppropriation account and necessar( Cournal entries.
) 5 and B are the partners sharing prot and Aosses in the ratio of -! ./he( admit 0 into the partnership. 0 pa(s $s. +""" as his capital and 1""" as his good will for H share . 8ass journal entries and calculate the value of good will of whole business. New prot sharing ratio is -!-!.
