ANIL SHARMA S CLASSES

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Angelina Manning
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1 ANIL SHARMA S CLASSES (ACCOUNTING PAPER) d: {Marks: 75} {Time: 2:15 Hours} Question-1 Mr. Black accepted the following bills drawn by Mr. White: of bill Period Amount months 4, months 5, months 6, months 5,000 He wants to pay all the bills on a single date. Interest chargeable 18% p.a. and Mr. Black wants to earn Rs.150 on account of interest payment. Find out the date on which he has to effect the payment to earn interest of Rs.150. Base date to be taken shall be the earliest due date. Question-2 {4 Marks} Roshan has a current account with partnership firm. It has debit balance of Rs. 75,000 as on He has further deposited the following amounts: Amount ,38, ,000 He withdrew the following amounts: Amount , ,000 Show Roshan's A/c in the ledger of the firm. Interest is to be calculated at 10% on debit balance and 8% on credit balance. You are required to prepare current account as on 30th September, 2012 by means of product of balances method. Question-3 {4 Marks} From the following information available from the books of a trader from to , you are required to draw up the Debtors Ledger Adjustment Account in the General Ledger: (a) Total sales amounted to Rs. 1,80,000 including the sale of old Zerox machine for Rs. 4,800 (book value Rs.8,000). The total cash swales were 80% less than the total credit sales. (b) (c) (d) Cash collections from debtors amounted to 70% of the aggregate of the opening debtors and credit sales for the period. Debtors were allowed a cash discount of Rs. 20,000. Bills receivable drawn during the three months totalled Rs. 30,000 of which bills amounting to Rs. 10,000 were endorsed in favour of suppliers. Out of the endorsed bills, one bill for Rs. 6,000 was dishonored for non-payment as the party became insolvent, his estate realized nothing. Cheque received from debtors Rs. 8,000 was dishonoured, a sum of Rs. 2,000 was irrecoverable; Bad debts written off in the earlier years realised Rs. 11,000. (e) Sundry debtors as on stood at Rs. 50,000. {5 Marks}

2 Question-4 'A' and 'B' are in partnership sharing profit and losses equally. They keep their books by single entry system. The following balances are available from their books as on and Building 1,50,000 1,50,000 Equipments 2,40,000 2,72,000 Furniture 25,000 25,000 Debtors? 1,00,000 Creditors 65,000? Stock? 70,000 Bank loan 45,000 35,000 Cash 60,000? The transactions during the year ended were the following: Collection from debtors 3,80,000 Payment to creditors 2,50,000 Cash purchases 65,000 Expenses paid 40,000 Drawings by 'A' 30,000 On an equipment of book value Rs. 20,000 was sold for Rs. 15,000. On some equipments were purchased. Cash sales amounted to 10% of sales. Credit sales amounted to Rs. 4,50,000. Credit purchases were 80% of total purchases. The firm sells goods at cost plus 25%. Discount allowed Rs. 5,500 during the year. Discount earned Rs. 4,800 during the year. Outstanding expenses Rs. 3,000 as on Capital of 'A' as on was Rs. 15,000 more than the capital of 'B', equipments and furniture to be depreciated at 10% p.a. and 2% p.a. You are required to prepare: (i) (ii) Trading and Profit and Loss account for the year ended and The Balance sheet as on that date. {12 Marks}

3 Question-5 From the following receipts and payments account of Mumbai Club, prepare Income and expenditure account for the year ended and its balance sheet as on that date: Receipts Payments Cash in hand 4,000 Salary 2,000 Cash at bank 10,000 Repair expenses 500 Donations 5,000 Purchase of furniture 6,000 Subscriptions 12,000 Misc. expenses 500 Entrance fees 1,000 Purchase of investments 6,000 Interest on investments 100 Insurance premium 200 Interest received from bank 400 Billiard table 8,000 Sale of old newspaper 150 Paper, Ink etc. 150 Sale of drama tickets 1,050 Drama expenses 500 Cash in hand (closing) 2,650 Cash at bank (closing) 7,200 33,700 33,700 Other Information: - 1. Subscriptions in arrear for 2010 Rs. 900 and subscriptions in advance for 2011 Rs Insurance premium outstanding Rs Misc. expenses prepaid Rs % of donation is to be capitalized. 5. Entrance fees are to be treated as revenue income 6. 8% interest has accrued on investment for five months 7. Billiard table costing Rs. 30,000 was purchased during the last year and Rs. 22,000 were paid for it. {12 Marks} Question-6 X Ltd. purchased 3 Trucks from Tata Motors costing Rs.7,50,000 each on hire purchase system. Payment was to be made: Rs.4,50,000 down and the remainder in 3 equal installments together with 10% p.a. X Ltd. writes off 20% on the diminishing balance. It paid the installment at the end of the 1 st year but could not pay the next. Tata Motor agreed to leave one Truck with the purchaser, adjusting the value of the other two Trucks against the amount due. The Trucks were valued on the basis of 30% depreciation annually on written down value basis. X Ltd. settled the seller's dues with interest after three months. Prepare Trucks Account and Tata Motors Account in the books of X Ltd. {8 Marks}

4 Question-7 Mr. Brown has made following transactions during the financial year Purchased 24,000 12% Bonds of Rs. 100 each at Rs.84 cum-interest. Interest is payable on 30th September and 31st March every year Purchased 1,50,000 equity shares of Rs. 10 each in Alpha Limited for Rs. 25 each through a broker, who charged 2% Purchased 60,000 equity shares of Rs. 10 each in Beeta Limited for Rs. 44 each through a broker, who charged 2% Alpha Limited made a bonus issue of two shares for every three shares held Sold 80,000 shares in Alpha Limited for Rs. 22 each Received 15% interim dividend on equity shares on Alpha Limited Beeta Limited made a right issue of one equity share for every four shares held at Rs. 5 per share. Mr. Brown exercised his option for 40% of his entitlements and sold the balance rights in the market at Rs per share Sold 15,000 12% Bonds at Rs. 90 ex-interest Received 18% interim dividend on equity shares on Beeta Limited. Interest on 12% Bonds was duly received on due dates. Prepare separate investment account for 12% Bonds, Equity Shares on Alpha Limited and Equity Shares of Beeta Limited in the books of Mr. Brown for the year ended on 31st March, Question-8 {10 Marks} On 30th March, 2012 fire occurred in the premises of M/s Suraj Brothers. The concern had taken an insurance policy of Rs. 60,000 which was subject to the average clause. From the books of accounts, the following particulars are available relating to the period 1st January to 30th March (1) Stock as per Balance Sheet at 31st December, 2011, Rs. 95,600. (2) Purchases (including purchase of machinery costing Rs. 30,000) Rs. 1,70,000. (3) Wages (including wages Rs. 3,000 for installation of machinery) Rs. 50,000. (4) Sales (including goods sold on approval basis amounting to Rs. 49,500) Rs. 2,75,000. No approval has been received in respect of 2/3rd of the goods sold on approval. (5) The average rate of gross profit is 20% of sales. (6) The value of the salvaged goods was Rs. 12,300. You are required to compute the amount of the claim to be lodged to the insurance company. {5 Marks}

5 Question-9 Ramda & Sons had taken out policies (without Average Clause) both against loss of stock and loss of profit, for Rs. 2,10,000 and Rs. 3,20,000 respectively. A fire occurred on 1st July, 2011 and as a result of which sales were seriously affected for a period of 3 months. Trading and Profit & Loss A/c of Ramda & Sons for the year ended on 31st March, 2011 is given below: Amount Amount To Opening Stock 96,000 By Sales 12,00,000 To Purchases 7,56,000 By Closing Stock 1,85,000 To Wages 1,58,000 To Manufacturing Expenses 75,000 To Gross Profit c/d 3,00,000 13,85,000 13,85,000 To Administrative Expenses 83,600 by Gross Profit b/d 3,00,000 To Selling Expenses (Fixed) 72,400 To Commission on Sales 34,200 To Carriage Outward 49,800 ToNet Profit 60,000 3,00,000 3,00,000 Further detail provided is as below: (a) Sales, Purchases, Wages and Manufacturing Expenses for the period to were Rs. 3,36,000, Rs. 2,14,000, Rs. 51,000 and Rs. 12,000 respectively. (b) Other Sales figure were as follows Rs. (c) (d) From to ,00,000 From to ,20,000 From to ,000 Due to decrease in the material cost, Gross Profit during was expected to increase by 5% on sales. Rs. 1,98,000 were additionally incurred during the period after fire. The amount of policy included Rs. 1,56,000 for expenses leaving Rs. 42,000 uncovered. Compute the claim for stock, loss of profit and additional expenses. {15 Marks}

IPCC MAY 2016 QUESTION PAPER PAPER 1 ACCOUNTING

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