OMTEX CLASSES

“THE HOME OF SUCCESS”

ACCOUNTS MODEL PAPER no 4 FOR BOARD EXAMINATION

Q1. Answer any four of the following. (20 marks)

A. Answer in one sentence each. (5 marks)

1. Which types of expenses are debited to trading account?
2. What is Reserve Fund?
3. Who is an endorser?
4. What is non – profit organisation?
5. Why is Joint Bank Account opened?

B. Write word/term/phrase which can substitute each of the followings: (5)

1. A statement showing financial position of the business.

2. Making the payment of bill before its due date.
3. Summary of actual cash receipts and cash payments.
4. The relationship between persons who have agreed to share profit or loss in Joint Venture
Business.
5. A Partner who only lends his name to the firm.

C. Match the pairs. (5)

Group A
1. Not for profit concerns
2. Fixed capital method.
3. Unexpired expenses
4. Temporary Partnership
5. Pure Single Entry System
Group B
a. Capital A/c. of partner.
b. Current A./c of Partner.
c. Joint venture
d. Asset
e. Liability
f. Only personal A/cs.
g. Profit & Loss A/c.
h. Income and Expenditure A/c.

D. Select the most appropriate alternative from those given below: (5)

1. Reserve for discount on ______________ has a debit balance.

a. Debtors
b. Creditors
c. Bills Receivable
d. Loan advanced.
2. Income Statements and Balance Sheet are prepared in a systematic and scientific manner
under ________________
a. Double Entry System.
b. Single Entry System
c. Partial Entry System.
 OMTEX CLASSES
“THE HOME OF SUCCESS”
ACCOUNTS MODEL PAPER no 4 FOR BOARD EXAMINATION
d. Indian System.
3. Before accepting a bill, it is called a _________
a. Note
b. Draft
c. Hundi
d. Request.
4. Valuation of goodwill depends upon ________ capacity of business.
a. Normal
b. Repaying
c. Earning
d. Capital
5. If two or more persons come together to carry on a business activity for a short period, it
is known as ___________
a. Joint venture
b. Consignment
c. Partnership
d. Stock exchange

E. State True / False with reasons. (Any Two) (5)

1. Under fixed capital method for each partner two accounts are maintained.
2. Under fixed instalment method depreciation is charged on the diminishing value of the asset.
3. Interest on partner’s drawings is debited to Profit and loss appropriation account.

F. Prepare a bill of exchange from the following information: (5)

Drawer - Shekhar Desai, Shastri Road, Mahad. (5 marks)

Drawee – Sharad Verma, Narayan Peth, Pune.
Amount - Rs. 3500/-
Period - 3 months.
Payee - Mukund Pande, Panvel
Date of Bill Drawn – 21st June, 2007
 OMTEX CLASSES
“THE HOME OF SUCCESS”
ACCOUNTS MODEL PAPER no 4 FOR BOARD EXAMINATION

Q2. Kamlesh bought the machine costing Rs. 11,000/ - on 1st January, 1977. He had to pay Rs.
1,000/- towards its installation. He writes off depreciation @ 10% of the original cost every year. His
books are closed on 31st December every year. On 1st July, 1979 he disposed off the machine for Rs.
6,000/- Give journal entries in the books of Kamlesh for all these years till 31st December, 1979.
(10)
OR

M/s Vijay trading company earned net profit during the last four years was follows.
1st Yea r Rs, 57,000
2nd Year Rs, 44,000
3rd Year Rs, 61,000
4th Year Rs, 58,000
The capital investment made by the company is Rs, 1, 50,000. Normal Rate of return on capital is
20%. The remuneration of the partners during this period is Rs, 500 p.m. Good will is valued at
2years purchase of Average Super profit of above mentioned period.
(5)
AND
Write short note on “Fourth Generation of Computers (5)

Q3. Archana purchased goods from Babita on Credit for Rs. 20,000. On next day Archana paid Rs.
10,000 to Babita and accepted a bill drawn by Babita for the balance amount for four months. Babita
discounted the bill with her bank for Rs. 9600/- Before the due date Archana approached Babita with
a request to renew the Bill Babita agreed with the condition that Archana should pay Rs. 6000 with
interest of Rs. 120 and accept a new bill for the balance. The arrangement was duly carried out. New
bill is met on the due date. Pass journal entries in the books of Babita.
(12)
OR
Journalise the following transactions in the books of Mr. Ashok Agrawal.
a. The bank informed Mr. Ashok Agrawal that Kamlesh’s acceptance for Rs. 12,000 sent to bank
for collection had been honoured and bank charges debited were Rs. 60.
b. Discharged Dr. Ashok Agrawal’s acceptance to Mahesh for Rs. 15,250 by endorsing Prakash’s
acceptance to Mr. Ashok Agrawal for Rs. 15,100.
c. Vishal renewed his acceptance to Mr. Ashok AGrawal for Rs. 11,200 by paying Rs. 6000 in cash
and accepting a fresh bill for the balance plus interest @ 12% p.a. for three months.
d. Dinesh who had accepted Mr. Ashok Agrawal’s bill of Rs. 14,000 was declared bankrupt and
only 45% of the amount due could be recovered from his estate.

(12)
 OMTEX CLASSES
“THE HOME OF SUCCESS”
ACCOUNTS MODEL PAPER no 4 FOR BOARD EXAMINATION

Q4. Manoj and Ambalal enter into a joint venture to prepare a building for the government, who
agrees to pay Rs. 2,00,000. A Bank Account is opened in their joint names; Manoj contributing Rs.
25,000 and Ambalal Rs. 25,000 and it is agreed that they will share the profit and losses in the
proportion of 2/5th and 3/5th respectively.
Payment made out of the Joint Bank accounts were:
Purchases of Equipments : Rs. 14,000
Hire Purchases of Equipments : Rs. 13,000
Wages : Rs. 85,000
Purchases of Materials : Rs. 18,000
Office expenses : Rs. 8,000
Manoj and Ambalal then paid Rs. 5, 000 and Rs. 3,000 respectively for other expenses. The building
was completed the government paid the amount by cheque and the joint venture was closed. Ambalal
taking up the equipments at Rs. 4,000 and Manoj taking up the unused material at Rs. 2, 000.
Prepare Joint Venture A/c, Joint Bank A/c and Co-Venture’s A/c.
(12)

Q5. Mr. Suryakant maintains books on single entry and who gives you the following
information.

Particulars 31-3-2006 31-3-2007

Cash in hand 500 2000
Cash at bank 2500 5000
Stock 20000 30000
Sundry debtors 25000 40000
Investments 20000 20000
Furniture 10000 25000
Machinery 25000 40000
Sundry creditors 10000 10000
Outstanding expenses 3000 2000

Additional information

1. Mr. Suryakant introduced further capital of Rs. 20000 on 1st July, 2006 and had withdrawn
Rs. 10,000 during the year.
2. Interest on capital is allowed at 10% p.a.
3. Additions to furniture and machinery were made on 1st October, 2006
4. Write of deprecation on furniture and machinery at 10% p.a.
5. Create reserve for doubtful debts at 5% on sundry debtors.
6. Prepare: a. Statement of affairs. B. Statement of profit and loss for the year ended 31st March,
2007.

(10)
 OMTEX CLASSES
“THE HOME OF SUCCESS”
ACCOUNTS MODEL PAPER no 4 FOR BOARD EXAMINATION

6. From the following balance Sheet and Receipts and Payments account of Nanavati Hospital,
Bombay, prepare Income and Expenditure account for the year ending on 31st March, 2007 and the
Balance sheet as on that date.
Balance Sheet as on 1st April, 2006

Liabilities Amount Assets Amount

Salaries Unpaid 2000 Cash 11000

Medicines Bill Unpaid 1500 Securities 150000
Capital Fund 383000 Furniture 4000
Land and Buildings 200000
Equipments 15000
Subscription Due 5000
Interest Accrued 1500

386500 386500

Receipts and Payment Account

Receipts Amount Payments Amount

Cash 11000 Furniture purchased on 1-4-2006 1900

To subscription 30000 Salaries including Rs. 2000/- of last year. 2300
Interest (Rs. 1500/- last year) 5000 Equipment purchased on 1-4-06 7500
Donations(Revenue) 4300 Dispensary expenses 4700
Life Membership Fee 10000 Medicines 5500
Taxes 500
Cash 37900

60300 60300

Adjustments.
1. Capitalise the amount of life membership fees.
2. Interest earned but not received Rs. 1,000/-
3. Subscription include Rs.1000/- for 2008 and outstanding subscription for 31st march, 2007 is
4,200
4. Unpaid salary for the year 2007 is Rs. 2500/-
5. Provide for depreciation on furniture 10%, Land and Building 5%, Equipments 20%.
6. Prepaid taxes Rs. 100/-
 OMTEX CLASSES
“THE HOME OF SUCCESS”
ACCOUNTS MODEL PAPER no 4 FOR BOARD EXAMINATION

Q7. Prepare Trading and Profit & Loss account for the year ended 31st December, 1996 and Balance
sheet as on that date from the following Trial Balance of Kaveri and Narmada
Debit Balance Rs. Credit Balance Rs.
Kaveri’s Drawings 4,000 Kaveri Capital 12,000
Narmada’s Drawings 4,000 Narmada’s Capital 20,000
Land & Building 21,000 Bills Payable 6,790
Plant & Machinery 12,600 Creditors 14,600
Stock(1.1.1996) 8,000 Purchase Returns 500
Purchases 12,000 Sales 43,000
Wages 5,000
Carriage Outward 500
Carriage Inward 400
Coal 1,260
Salary 7,500
Rent, Rates & Taxes 560
Discount Allowed 300
Cash & Bank Balance 5,080
Sundry Debtors 9,000
Printing & Stationery 460
Bad Debts 240
Advertisement 1,750
Sales Return 400
Furniture 1,240
Bills Receivable 1,600
96,890 96,890

Adjustments:
1. Closing Stock is valued at Rs. 10,000/- at cost whose market value was Rs. 15,000/-
2. Depreciation Land & Building and Plant & Machinery by 10% & Furniture by 5%.
3. Provision for doubtful debts should be maintained at 5% on sundry debtors.
4. Kaveri has withdrawn goods for his personal use Rs. 500 for which no entry is passed.
5. Fire occurred in the Godown and goods worth Rs. 5, 000 were destroyed, but Insurance Company
admitted Claim for Rs. 3, 500.
6. Salary outstanding Rs. 1,500.
7. Wages outstanding Rs. 1,000 and
8. Rates prepaid Rs. 60.