12Std TRBTNPSC.COM S PUBLIC EXAM MARCH

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1 12Std TRBTNPSC.COM S PUBLIC EXAM MARCH m m ACCOUNTANCY REGISTER NUMBER Time Allowed: 2.30 Hours] [Maximum Marks: 90 PART I I. Choose and write a correct answer: 20 X 1 = Rent Outstanding is m m a) A liability b) An Asset c) An Income 2. The trial balance as on shows sundry debtors Rs.30,800. Write off Rs.800 as bad debts. The amount of provision for bad and doubtful debts. The amount of provision for bad and doubtful debts at 5% will be m m a) Rs.1,540 b) Rs.1,500 c) Rs.1, Creditors on 1 st April 2002, Rs.8,000 and on 31 st March 2003 Rs.13,500. Cash paid to creditors Rs.31,000 Credit purchase made during the year is m m a) Rs.37,500 b) Rs.47,200 c) Rs.36, Incomplete records are generally used by a) Small Traders b) Company c) Government 5. Profit made on Sale of Fixed Assets is debited to m m a) Profit & loss A/c b) Fixed Assets A/c c) Depreciation A/c 6. The amount of depreciation provided on the written down value method at the rate of 10% p.a. on Rs.20,000 for first three years will be a) Rs.4,214 b) Rs.5,420 c) Rs.5,402 m m 7. All Solvency ratios are expressed in terms of a) Proportion b) Time c) Percentage 8. Which if the following options is Correct? m m a) TA = L+B+F b) TA = L+B+G c) TA = L+F+G+C 9. Cash budget deals with a) Estimated Cash receipts b) Estimated Cash payment c) Estimated Cash receipts & Estimated Cash payments m m m m m m m m m m m m m m m m m m 10. Under Fluctuating Capital system, the profits and losses of partners will be transferred to their accounts a) Current b) Drawings c) None of these 11. Amount drawn regularly at the end of every month during the year, interest is calculated for m m m m a) 13/24 Month b) 11/24 Month c) 12/24 Month 12. Decrease in the value of time of admission of a new partner result in to old partners a) Profit b) Loss c) None of these 13. New profit ratio is calculated at the time of admission by deducting m m m m a) Sacrifice from the old ratio b) Old ratio from the sacrifice c) Sacrifice from the new 14. The balance of forfeited share account is in the balance sheet a) Added to paid up capital b) Added to authorised capital c) Deduced from paid up capital m m 15. The account credited to share forfeiture account is Rs.6,000. The loss on reissue of forfeited share is m m Rs.3,000 capital reserve will be m m m m m m m m m m m m m m m m m m m m m m a) Rs.3,000 b) Rs.5,000 c) Rs.7,000 m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m

2 16. Outstanding interest on loan borrowed is to be added to a) Asset A/c b) Income A/c c) Loan A/c 17. Single Entry System is a) A Scientific Method b) An Incomplete Doubtful Entry System c) None of above m m 18. Loss On Sale of Fixed asset appear on the a) Credit Side of Depreciation A/c b) Debit Side of Fixed Asset A/c c) Credit Side of Fixed Asset A/c 19. If the goodwill account is raised for Rs.30,000 the amount is debited to a) Capital A/c of Partners b) Good will A/c c) Cash A/c m m 20. According to Table A, Interest charged on Calls in Advance is % a) 4% b) 5% c) 6% m m PART II II. Answer any seven questions in which Question No.21 is Compulsory: 7 x 2 = What is an Outstanding expense? 22. Mention any two features of single entry? 23. What is insurance policy method of deprecation? m m 24. Mention any two factors affecting goodwill 25. What do you understand by call in arrears 26. From the following, details find out Total purchase: m m Opening Sundry Creditors 1,50,000 Cash paid to Sundry Creditors 45,000 Discount received 30,000 Purchase Returns 15,000 Closing Sundry Creditors 1,80,000 Cash Purchases 80, Gokul & Co Purchased a machinery for Rs.48,000. Its useful life is 10 years and the scrap value is m m Rs.4,800 Determine the rate of depreciation under the straight line method. 28. Calculate Capital Turnover ratio from the following information: Cash Sales 4,00,000 Credit Sales 3,50,000 Sales Return 50,000 m m Equity Share Capital 2,00,000 Long term loan 1,00,000 Reserves 50, A and B are partners sharing profits in the ratio of 3:2 A draws Rs.6,000 regularly at the end of every month during the year B draws Rs.20,000 on Rs.12,000 on Rs.16,000 on and Rs.8,000 on Calculate interest on Drawings at 6% p.a. m m 30. Naveen and Praveen are partners sharing profits in the ratio of 3:2 they admit Kunal as a new partner. Who acquires 1/5 th of Naveen s share and 2/5 th of Praveen s share. Calculate new profit ratio and the sacrificing ratio. m m PART III III. Answer any seven questions in which Question No.31 is Compulsory: 7 x 3 = The trial balance shows on Sundry debtors Rs.41,500 Bad debts Rs.1,000 Adjustments: m m m m m m m m m m m m m m m m m m m m m m i) Write off bad debts Rs.1,500 ii) Provide 5% for bad and doubtful debts iii) Provide 2% for discount on debtors m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m Pass adjustment entries and also show how these items will appear in final accounts m m m m m m m m m m m m m m m m

3 32. Mrs. Praveena keeps her books on single entry basis. Find out the profit or loss made for the period ending She started business with Rs.2,35,000 on On her position was as follows : m m Bank balance (Dr) 45,000 Cash in hand 3,000 Stock 40,000 Debtors 76,000 Machinery 2,00,000 Furniture 1,00,000 Creditors 1,80,000 m m i) Mrs.Praveena had withdrawn Rs.1,00,000 for her personal use and had introduced fresh capital of Rs.40,000 ii) A provision of 5% on debtors is necessary for doubtful debts iii) Write off Depreciation on Machinery at 10% and Furniture at 5% m m 33. Explain the causes of Depreciation? 34. Explain the features and advantages of Cash budget? 35. Explain the features of Partnership? 36. On a machinery was purchased for Rs.4,00,000. On a New machine costing m m Rs.2,40,000 was purchased. On the machinery purchased on having become Obsolute was sold Rs.2,40,000. The accounting year ends on 31 st March every year and depreciation is to be provided at 10% p.a. on Straight line method. Prepare Machinery account and Depreciation m m account for 3 years. m m m m m m m m m m 37. Kavin Ltd provide the following information for the year ending Calculate Net Profit Ratio, Operating Profit and Operating Ratio Sales 2,00,000 Gross profit 80,000 Office Expenses 6,000 m m m m Selling Expenses 4,000 Finance Expenses -3,000 loss on sale of plant 400 Interest received 500 Net Profit 67, Maya and Megha were partners in a firm sharing profits and losses in the ratio 7:3. Their capitals on m m m m were Rs.80,000 and Rs.60,000 respectively. The net profit of the firm for the year ended before making adjustment was Rs.30,000 drawings of Partners during the year were Maya Rs.6,000 and Megha Rs.4,000. The partnership deed provided for the following: m m m m i) Interest on Capital at 5% p.a. m m ii) Interest on Drawings at 6% p.a. iii) Maya and Megha to get a salary for Rs.5,000 each per annum iv) Maya get a Commission of 10% on the net profit before charging Such Commission Show Profit and Loss Appropriation account of partners. m m 39. The directors of Arun Ltd forfeited 500 equity shares of Rs.100 each at a premium of 10% on which first call money of Rs.30 per share and final call Rs.20 per share was not received. Out of these 300 shares were reissued at Rs.80 per share as fully paid. Prepare Journal Entries and Forfeiture account m m m m and Capital reserve account 40. A and B were partners in a firm sharing profits and losses in the ratio of 2:1. They admitted C as a partner and the new profit sharing ratio was 3:2:1. Goodwill did not appear on the date of the above admission in the partnership books and it was valued at Rs.36,000. Show the journal entry for the m m m m treatment of goodwill under the revaluation method. m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m

4 PART IV IV. Answer all questions: 7 x 5 = How will the following adjustment appear in the profit and loss account balance sheet as on Sundry Debtors 21,000 Bad Debts to be written off 1,000 m m Adjustment: 5% provision for bad and doubtful debts 2% provision for discount on debtors. M, G and S were partners of a firm sharing profits and losses in the ratio of ½, 1/3, and 1/6 m m respectively. Set out below was their balance sheet as on 30 th June Liabilities Rs Assets Rs Sundry Creditors 1,20,000 Cash in hand 18,000 Bills payable 40,000 Cash at bank 1,70,000 Bank Overdraft 80,000 Sundry Debtors 52,000 General Reserve 1,20,000 Stock 1,20,000 Capital Accounts Furniture 80,000 M 2,40,000 Plant 1,60,000 G 1,60,000 Land & Building 2,80,000 S 20,000 8,80,000 8,80,000 S retired from the partnership from 1 st July on the following terms: m m m m a) Goodwill was to be raised at Rs.1,44,000 b) The value of land and building was to be increased by Rs.40,000 m m c) Furniture and plant were to be depreciated by Rs.4,000 and Rs.12,000 respectively. d) S was to be paid off at once. Show revaluation account, Capital accounts, bank account and the opening balance sheet of the reconstituted firm. m m 42. Find out total purchases and total sales from the following details by preparing necessary accounts: Opening Sundry Debtors 1,00,000 Opening Sundry Creditors 65,000 Cash received 5,90,000 Discount Received 3,000 Cash paid 40,000 m m Discount Allowed 5,000 Returns outward 10,000 Returns inward 6,000 Closing Sundry Debtors 70,000 Closing Sundry Creditors 50,000 Cash Sales 50,000 Cash purchases 25,000 The following are the balance sheet of P, Q and R sharing profits and losses in the proportion of ½, m m 1/3 and 1/6 respectively as at Liabilities Rs Assets Rs Creditors 94,500 Cash 10,000 Bills Payable 31,500 Bank 1,20,000 Reserve Fund 1,20,000 Building 2,50,000 Out Standing Expenses 4,000 Furniture 35,000 Capital P 1,80,000 Stock 1,45,000 Q 1,65,000 Debtors 1,30,000 R 95,000 6,90,000 6,90,000 They decided to admit S into the partnership with effect from 1 st January 2005 on the following terms: m m m m a) S should bring in Rs.80,000 as his capital for ¼ share of profits b) Furniture be depreciated by Rs.3,500 m m c) Stock be depreciated by 10% d) The value of buildings having appreciated be brought upto Rs.3,25,000 Show Revaluation account, Capital accounts, bank account and the balance sheet of the reconstituted partnership. m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m

5 43. On 1 st October 2000, a company purchased a plant for Rs.6,00,000. They spent Rs.40,000 on its erection. The firm writes off depreciation at the rate of 20% on reducing balance method. The books are closed on 31 st March every year. Prepare Plant account and Depreciation account for three years. m m Prepare a cash budget for the months March, April and May 2005 from the following information: Month Sales Purchase Wages Misc. Expense Office Expenses January 60,000 36,000 9,000 4,000 2,000 February 82,000 38,000 8,000 3,000 1,500 March 84,000 33,000 10,000 4,500 2,500 April 78,000 35,000 8,500 3,500 2,000 May 56,000 39,000 9,500 4,000 1,000 Additional information: m m m m m m a) Opening Cash balance Rs.8,000 b) Period of Credit Allowed to Customers one month c) Period of Credit Allowed to Suppliers two months d) Wages and Miscellaneous expenses are payable in the same month e) Lag in payment of office expenses is one month. 44. From the given data, Calculate a) Gross Profit Ratio b) Net Profit Ratio c) Current Ratio m m Sales 3,00,000 Cost of goods sold 2,00,000 Net Profit 30,000 Current Assets 60,000 Current Liabilities 30,000 From the following trading account, Calculate Stock Turnover Ratio,Gross Profit Ratio & Net profit Ratio m m m m m m m m m m Trading Account of Mohammed Ali & Co for the year ended m m m m Particulars Rs Particulars Rs To Opening Stock 40,000 By Sales 2,00,000 To Purchases 1,20,000 By Closing Stock 20,000 To Carriage 10,000 To Gross Profit 50,000 2,20,000 2,20,000 Net Profit 98,000 m m m m 45. From the following information, Prepare a Cash Budget for April, May and June m m m m m m Month Sales Purchase Wages February 45,000 30,000 8,000 March 55,000 25,000 7,000 April 60,000 20,000 7,000 May 60,000 40,000 9,000 June 65,000 40,000 9,000 a) Opening Cash balance Rs.5,000 m m m m b) Credit Allowed by Suppliers is two months c) Credit Allowed to Customers is one month d) Wages are payable in the same month e) Dividend Rs.1,000 is receivable in April m m m m m m m m m m m m m m m m m m m m m m f) Interest Payable in May Rs.1,800 m m m m m m m m m m m m m m m m m m m m Archana started business on 1 st April 2001 and she purchased a machinery for Rs.1,40,000 she purchased another machinery on 1 st November 2002 costing Rs.30,000. She adopted a policy of m m m m m m m m charging 15% p.a. Depreciation under diminishing balance method. The accounts are closed every year on 31 st March. Prepare Machinery account and Depreciation account for the first three years. m m m m m m m m

6 46. Lakshmi and Saraswathi are partners of a firm sharing profits and losses in proportion to capital. Their balance sheet as on 31 st March 2005 is as under. Liabilities Rs Assets Rs Creditors 60,000 Bank 12,000 Bills Payable 40,000 Debtors 40,000 Capital Accounts : Stock 40,000 Lakshmi 60,000 Plant 90,000 Saraswathi 40,000 Furniture 18,000 2,00,000 2,00,000 The decided to admit Sulochana in to the partnership with effect from 1 st April 2005, on the following m m m m terms: a) Sulochana shall bring in a capital of Rs.50,000 for 1/5 th Share of profits b) Goodwill is to be valued at Rs.40,000 m m c) Plant and Furniture was to be depreciated by 5% d) Provision for doubtful debts be created at 1½% on sundry debtors Show revaluation account, capital accounts, bank account and balance sheet of the reconstituted partnership. m m From the following particulars calculate closing balance of sundry debtors and sundry creditors. Sundry Debtors as on Rs.30,000 Sundry Creditors as on Rs.41,000 Credit Purchases Rs.1,50,000 Credit Sales Rs.1,70,000 Discount earned Rs.5,000 m m Discount Allowed Rs.6,000 Purchase Returns 7,500 Sales Returns 6,500 Cash received from sundry debtors -1,50,000 Cash paid to sundry creditors 1,40, From the following trial balance of a trader make out a trading and profit and loss account and balance sheet as on 31 st March m m Particulars Debit Credit Sales 4,20,000 Purchase 1,05,000 Printing Charges 2,500 Wages 77,500 Salaries 12,500 Opening Stock 2,25,000 Carriage Inwards 8,800 General Expenses 26,250 Trade Marks 5,000 Rates and Taxes 2,500 Capital 1,74,800 Discount Received 1,250 Loan 1,75,000 Buildings 2,00,000 Furniture 25,000 Machinery 50,000 Cash 1,000 Bank 30,000 7,71,050 7,71,050 m m m m m m m m Prepared by Mr. A.Boopathi., M.Com. B.Ed., M.Phil. P.G. Assistant in Commerce, m m Jothi Vidhyalaya Matric Higher Secondary School, Siddhar Kovil Road, Elampillai Ph: m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m Adjustments: a) The Closing Stock was valued at Rs.3,20,000 b) Out Standing Salaries Rs.10,000 c) Prepaid Rates and Taxes Rs.500 m m Moon Ltd, Offered for subscription 20,000 shares of Rs.10 each payable at a premium of Rs.2.50 on Application Rs.3 on m m allotment Rs.3 On first Call and Rs.2 on Final Call Applications were received for 30,000 Shares. Applications for Rs.5,000 shares were rejected. Application money for other 5,000 shares was applied towards the amount due on allotment m m the balance money was received in due time. Pass Journal Entries. m m m m m m m m m m m m m m m m m m m m m m m m m m m m m m