This transactions during the year (i.e. from to ) were as follows: 8

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1 This transactions during the year (i.e. from to ) were as follows: 8 Receipts Rs. Payments Rs. Sundry Debtors 15,000 Bank overdraft 10,000 Cash sales 80,000 Drawings 3,000 Expenses 50,000 Payment to creditors 20,000 Cash in hand 2,000 Cash at bank 10,000 95,000 95,000 Prepare Trading and Profit and Loss Account for the year ended 31 st March, 2009 and a Balance Sheet as at that date. The following additional information is supplied. Closing stock Rs.30,000; Closing debtors Rs.25,000 closing creditors Rs.20,000. No addition has been made to buildings and furniture during the year but they are to be depreciated as follows: 10% and 20% p.a. UNIT-II 3. a) X and Y are partners sharing Profits in the ratio of 3:2. They admit Z on which date their Balance sheet stood as follows: 8 Liabilities Rs. Assets Rs. Capital of X 80,000 Fixed Assets 2,25,000 Capital of Y 80,000 Current Assets 25,000 Reserve Fund 40,000 Creditors 50,000 2,50,000 2,50,000 Following are the terms to admit Z into partnership: i) The new profit sharing ratio would be 2:2:1. ii) Z has to contribute Rs.80,000 towards his capital Rs.20,000 as his share of goodwill. iii) Partners decided to write off 2% on fixed assets and 5% from current assets and not to show goodwill in the books of accounts. Prepare Revaluation Account, partners capital accounts and Balance Sheet after admission of Z.

2 [MPIBA 0304] IMBA DEGREE EXAMINATION III TRIMESTER FINANCIAL ACCOUNTING - II (Effective from the admitted batch ) Time: 3 Hours Max.Marks: Instructions: All parts of the unit must be answered in one place only. Figures in the right hand margin indicate marks allotted SECTION-A 1. Answer any FIVE of the following: Each answer should not exceed one page. (5 x 4 =20) a) Distinguish between Receipts and Payments Account and Income and Expenditure Account. b) From the following information relating to a clinic for 2007, find the amount of subscriptions to be credited to Income and Expenditure account and the amount to be placed on the Balance Sheet. Subscriptions received in 2007 Rs.5,200 of which Rs.200 relates to Position of subscriptions as on: Rs. Rs. Subscriptions receivable 1,000 5,500 Subscriptions received in advance c) Mr.Gopi keeps his accounts on single entry system. He wants to know the results of his business on 31 st March 2009 i.e. (profit or loss). He gives you the following information. Particulars Rs. Rs. Cash in hand 1,500 1,750 Cash at bank 7,500 8,000 Furniture 1,000 1,000 Stock 5,000 6,500 Creditors 3,500 4,000 Debtors 2,500 3,000

3 During the year he had withdrawn Rs.5,000 for his personal use and invested Rs.2,500 as additional capital. You are required to calculate his profit for the year ended 31 st March, d) What is Revaluation account? How it is prepared? e) The following is the position of AB and C as on Balance Sheet Liabilities Rs. Assets Rs. Capitals : A 50,000 Sundry Assets 1,60,000 B 40,000 Cash 15,000 C 30,000 Reserves 15,000 Creditors 40,000 1,75,000 1,75,000 They share profits equally. C desires to retire from the business with effect from For this purpose the goodwill has been valued at Rs.45,000. Find out the amount payable to C. Pass journal entries to record the above transactions. f) Briefly explain the accounting procedure for dissolution of a firm. g) What do you mean by forfeiture of shares? Write the journal entries required for forfeiture of shares. h) From the following information, calculate the value per equity share. Rs % Preference shares of Rs.100 each 2,00,000 50,000 Equity shares of Rs.10 each Rs.8 4,00,000 per share paid up Expected Profits per year before tax 2,18,000 Rate of tax 50% Transfer to General Reserve every year 20% of profit after tax Normal rate of earning 15%

4 Answer the following: SECTION-B UNIT-I 2. a) From the following Receipts and Payments Account of a club and from the additional information supplied, prepare Income and expenditure Account for the year ended 31 st December, Receipts and Payments Account for the year ending Date/Receipts Rs. Payments Rs. To Balance b/d By Salaries 14,000 To subscriptions: 2007 : 2500 By General expenses 3, : 10,000 14,500 By Electric charges 2, : 2,000 To Rent received from the use of 7,000 By Books 5,000 the Hall To Income received from entertainment 4,000 By News papers 4,000 To Sale of old news papers 1,000 By Balance 2,000 30,000 30,000 Additional Information: i) The club has 50 members each paying an annual subscription of Rs.250, subscriptions outstanding on 31 st December, 2007 were Rs.3,000. ii) On 31 st December, 2008 Salaries outstanding amounted to Rs.1,000. Salaries paid in 2008 include Rs.3,000 paid for the year iii) On the club owned Building Valued at Rs.1,00,000; Furniture Rs.10,000 and books Rs.10,000. iv) Provide depreciation on Furniture at 10% p.a. b) Bharat keeps his books by single entry and his position on 1 st April, 2008 was as flows: Capital Rs.70,000; Sundry creditors Rs.17,000; Building Rs.50,000; Stock Rs.25,000; Debtors Rs.20,000; Furniture Rs.2,000; Bank overdraft Rs.10,000.

5 b) Briefly explain the procedure for conversion of single entry system into double entry system of accounting. 8 UNIT-IV 5. a) What is Amalgamation of Firms? Explain the accounting procedure involved in the amalgamation of two firms. 8 b) Explain any two methods of valuation of shares. [41/III T/308]

6 b) The following is the Balance sheet of Naresh and Prakash as on Liabilities Rs. Assets Rs. Sundry creditors 76,000 Cash at Bank 23,000 Loan from Naresh s wife 20,000 Stock-in-trade 12,000 Loan from Prakash 30,000 Sundry Debtors 40,000 Reserve fund 10,000 Less: Provision 2,000 38,000 Capitals: Naresh 20,000 Furniture 8,000 Prakash 16,000 Plant 56,000 Investments 20,000 Profit and Loss A/c 15,000 1,72,000 1,72,000 The firm was dissolved on Particulars were: i) Naresh tookover investments at a value of Rs.16,000 and agreed to pay the loan to his wife. ii) Realisations : stock Rs.10,000; Debtors Rs.37,000; Furniture Rs.9,000; Plant Rs.50,000 Realisation expenses Rs.2,200. iii) The Sundry creditors were paid off less 2½ % discount. Naresh and Prakash share profits and losses in the ratio of 3:2. Prepare the Realisation account, and other necessary accounts to close the books of the firm. UNIT-III 4. a) Ashok Industries Ltd., issued 5,000 equity shares of Rs.10 each at a premium of Rs.2 per share payable as follows: Rs.2 on application; Rs.5 on allotment (including premium); Rs.3 on first call and balance on final call. All the shares were subscribed and amount received on calls except the first call on 1000 shares and final call on 1,500 shares. These shares were forfeited. Give necessary journal entries, prepare cash book and show how various accounts appear in the Balance sheet?

7 b) Briefly explain the procedure for conversion of single entry system into double entry system of accounting. 8 UNIT-IV 5. a) What is Amalgamation of Firms? Explain the accounting procedure involved in the amalgamation of two firms. 8 b) Explain any two methods of valuation of shares. [41/III T/308]

8 b) The following is the Balance sheet of Naresh and Prakash as on Liabilities Rs. Assets Rs. Sundry creditors 76,000 Cash at Bank 23,000 Loan from Naresh s wife 20,000 Stock-in-trade 12,000 Loan from Prakash 30,000 Sundry Debtors 40,000 Reserve fund 10,000 Less: Provision 2,000 38,000 Capitals: Naresh 20,000 Furniture 8,000 Prakash 16,000 Plant 56,000 Investments 20,000 Profit and Loss A/c 15,000 1,72,000 1,72,000 The firm was dissolved on Particulars were: i) Naresh tookover investments at a value of Rs.16,000 and agreed to pay the loan to his wife. ii) Realisations : stock Rs.10,000; Debtors Rs.37,000; Furniture Rs.9,000; Plant Rs.50,000 Realisation expenses Rs.2,200. iii) The Sundry creditors were paid off less 2½ % discount. Naresh and Prakash share profits and losses in the ratio of 3:2. Prepare the Realisation account, and other necessary accounts to close the books of the firm. UNIT-III 4. a) Ashok Industries Ltd., issued 5,000 equity shares of Rs.10 each at a premium of Rs.2 per share payable as follows: Rs.2 on application; Rs.5 on allotment (including premium); Rs.3 on first call and balance on final call. All the shares were subscribed and amount received on calls except the first call on 1000 shares and final call on 1,500 shares. These shares were forfeited. Give necessary journal entries, prepare cash book and show how various accounts appear in the Balance sheet?

PART A (Accounting for Partnership Firms and Companies)

PART A (Accounting for Partnership Firms and Companies) KENDRIYA VIDYALAYA SANGATHAN, CHENNAI REGION COMMON PREBOARD EXAMINATION 2013-2014 ACCOUNTANCY Time allowed:3 hrs CLASS : XII Max.Marks:80 General Instructions: 1. All the questions are compulsory 2. Attempt