SURANA IND. PU COLLEGE SOUTH END ROAD, BANGALORE II PUC ACCOUNTANCY MODEL QUESTION PAPER III Time 3Hrs 15Mins Max. Marks: 100 SECTION A I Answer any seven questions each carrying two marks: 7x2=I4 1. State any two reasons for charging depreciation. 2. Mention any four contents of a partnership deed. 3. What is sacrifice ratio? 4. How do you close the revaluation account on retirement of a partner? 5. What do you mean by the dissolution of the partnership firm? 6. When can shares be forfeited 7. What do you mean by positional statement? 8. What is financial statement analysis? 9. How do you treat prizes paid when prize fund is given? 10. What do you mean by the data? SECTION - B II. Answer any four of the following questions, each carrying five marks: 4 x 5 =20 11. Pramod and Pavan are partners sharing profit and losses in the ratio of 3:2. Their capitals as on 1 st April 2015 were 1,50,000 and 1,00,000 respectively. They made a profits during the year ended 31 st March 2016 4 before making the following adjustments: a) Interest on partners Capital at 8% b) Pramod is entitled to a salary of 1,000 for first six months and 1500 for the remaining period of the year. c) Their drawings during the year were Pramod 12,000 Pavan 8,000. Interest on the same being 1,200 and 800 respectively. d) Pavan advanced a loan of 2 on 1 st October 2015. Provide interest on loan at 6%p.a
Prepare profit and loss appropriation account for the year ended 31 st march 2016. 12. Vajesh and Vani are partners sharing profits and losses in the ratio of 3: 2. They admit Rashmi into the partnership and offer her 1/5th share, which she acquires in the ratio of 3:1 from the old partners. Calculate the new profit sharing ratio. 13. A, B & C were partners in a firm sharing profit & losses in 2:2:1. On 1-4-2016, they had capitals of 40,000, 30,000 & 20,000 respectively. On 31st July, 2016, A died & his executors are entitled for the following: a. His capital as on 1-4-2016. b. Interest on his capital @ 6% p.a. c. His share of goodwill. The goodwill of the firm was valued at 2. d. His share of accrued profit up to the date of his death, to be calculated on the basis of average profits of two preceding years. The profits were: 31-3-2015: 20,000 & 31-3-2016: 28,000. e. His drawings up to the date of death amounted to 4,250. Prepare A Capital Account. 14. Best of luck company issued 2000, 10% debentures of Rs. 100 each at a discount of 10% payable Rs. 20 on application, 20 on allotment and the balance on the first and final call. All the debentures were subscribed and the money duly received. Pass journal entries in the books of the company up to the stage of allotment money received. 15. SRS Limited has Current Assets 3,20,000, Current Liabilities 1,60,000 and Quick Assets 2,56,000, as on 31st March 2016. Calculate Current ratio and Liquid ratio. 16. From the following information related to Ramashraya club, Mysore Prepare the Receipts and payments A/c for the year ending 31.03.2016. Cash in hand on 1.4.2015, 1000; Entrance fees received RS 1000; Subscriptions received 27, Rent paid 9000; Printing and Stationery expenses Rs 5000; Newspaper and Periodicals 5,800; Electricity charges 400; Furniture purchased ; Sale of old newspapers 2500, Life membership fees 2000. 17. Explain the network database model with an example.
SECTION C III. Answer any four questions, each question carries fourteen marks:4 x 14 = 56 18. A Lease is purchased on 1.4.2011 for a term of 4 years by payment of Rs.1,00,000. It is proposed to depreciate the lease by annuity method charging 4% interest per annum. For annuity of Rs.1 for 4 years at 4% is 0.275490. Prepare the Lease account and Interest account for 4 years. 19. Roopa and Deepa are partners sharing profits and losses in the ratio of 2:3 their balance sheet as on 31.03.2016 was as follows. Balance sheet as on 31.03.2016 Liabilities Rs Assets Rs Creditors 57,000 Cash at bank 21500 Bills Payable 20500 Bills receivable 4000 Reserve Fund 25000 Stock 35000 Capitals: Debtors 60000 Roopa 60000 Less: P.B.D 3000 57000 Deepa 30000 90000 Furniture 10000 Buildings 40,000 Machinery 2 192500 192500 On 01.04.2016, Shilpa is admitted into the partnership on the following terms: a. She brings 40,000 as capital and 1 towards goodwill for the 1/6 th. b. Depreciate machinery and furniture by 10% each. c. Increase buildings by 20% d. Provision for doubtful debts on debtors is to be raised by 1,000 e. Prepaid insurance 500 Prepare Revaluation account, Partners capital account and Balance sheet of the firm.
20. Rashmi and Geetha are partners sharing profits and losses in the ratio of 3:2.Thier Balance sheet as on 31.3.2016 is as follows: Balance sheet as on 31.03.2016 Liabilities Rs. Assets Rs. Sundry Creditors Bills Payable Rashmi`s Loan Reserve Fund Capitals: Rashmi Geetha 30,000 40,000 Cash at Bank Investments Bills Receivable Debtors Stock Machinery Furniture Buildings Goodwill 20,000 1 1 20,000 1,0 1,0 On the above date, the firm was dissolved. a) The assets were realized as follows : Bills Receivable Rs.7,500, Sundry Debtors and Stock at 10% less than the book value, Machinery realized at 5% more than the book value and Buildings realized for Rs.12,000 more. b) Furniture and investments were taken by Rashmi and Geetha at Rs.4,000 each respectively. Dissolution expenses were Rs.600. c) All the liabilities were discharged in full Prepare i) Realization A/c ii) Partners` Capital A/c`s and iii) Bank A/c 21. Krishna Trading Company Limited issued equity shares at Rs 10 each at a premium of Rs 2 per share. The amount was payable as follows: Rs 2 on application Rs 5 on allotment including premium 3 on first call and Rs 2 on final call
All the shares were subscribed and the money duly received except the final call on 1000 shares, the directors forfeited these shares and re-issued them as fully paid up at Rs 8 per share. Pass Journal entries in the books of the company. 22. The following is the trial balance of Rachana Company Ltd. Bangalore. Trial Balance as at 31.03.2016 Particulars Debit Credit Share capital - 1,00,000 ( shares of Rs. 10 each) Opening stocks 14,000 - Purchases 1,5 - Purchase returns - 3,000 Sales - 2,40,000 Sales returns - Wages 1 - Salaries 19,200 - Postage 3,800 - Commission received - 33 00 Rent 9,500 - Investments 1 - Goodwill 40,000 Buildings 8 - Machinery 30,000 - Furniture 16.000 - Bills receivable and payable 12,000 17,000 Debtors, Creditors 24,000 15,200 Reserve fund - 70,000 Profit and loss app. account - 12,000 Cash at bank 17,000-4,60,500 4,60,500 Adjustments: 1. Closing stock 2. 2. Depreciate machinery and furniture by 10% each. 3. Proposed dividend Rs 20,000. 4. Outstanding salary Rs 2,000. 5. Transfer to reserve fund Rs 20,000. Prepare Income statement and positional statement for the year ended 3 1.3.20 16
23. Convert the following Balance Sheet in to common size Balance Sheet. Balance Sheet as on 31.3.2015 and 31.3.2016 Liabilities 31.3.2015 31.3.2016 Assets 31.3.2015 31.3.2016 Equity share 10,00,000 12,00,000 Debtors 4,50,000 3,90,000 Capital Cash 2,00,000 15000 Capital Reserve 90,000 1,8 Stock 3,20,000 2,50,000 General Reserve 5,00,000 4,50,000 Investment 3,00,000 2,50,000 Sinking Fund 90,000 1,00,000 Building 8,00,000 14,00,000 Debentures 4,50,000 6,50,000 Land 1,98,000 3,4 Creditors 2,00,000 1,50,000 Furniture and Bills payable 1 20,000 fittings 77,000 1,0 23,4 27,5 23,4 27,5 24. Following are the Balance Sheet and Receipts & Payments Account of Mercury Sports Club, Madikeri. Balance Sheet as on 1-04-2015 Liabilities Rs Assets Rs Rent due 1,000 Cash in hand 8,000 Subscriptions for 2015-16 2,000 Sports Equipment 30,000 Capital fund 97,000 Furniture 12,000 0/S subscriptions Buildings 4 1,00,000 1,00,000 Dr. Receipts & Payments Account for the year ended 31-3-2016 Cr Receipts Rs Payments Rs To Balance b/d 8,000 By Rent 6,200 " Subscriptions 28,000 " Tournament Expenses 12,000 " Donations 1 " Sports Equipment " Entrance fees 9,000 (1-4-2015) 20,000 " Tournament fund 20,000 " Investments 16,000 " Interest 1,000 " Magazines & 3,800 " Sale of old newspapers 2,000 Newspapers " Sundry Expenses 3,000 " Balance c/d 22,000 83,000 83,000 Adjustments: a) Rent due on 31-3-2016 was 1,500 b) Subscription due for 2015-16 was 6,500
c) Subscription received in advance for 2016-17 was 4,000 d) Capitalize half of entrance fees & entire donations. e) Depreciate sports equipments & furniture by 10% each. Prepare: Income & Expenditure A/c & Balance Sheet as on 31-3-2016 SECTION D (Practical Oriented Questions) IV. Answer any two questions, each carrying five marks. 2 X 5 = 10 25. Prepare Machinery Account for two years under original cost method with imaginary figures. 26. Prepare current account of two partners with imaginary figures. 27. Prepare Comparative Income statements with imaginary figures.