DAY 04 SEAT NUMBER

2016 01 29 SYJC – 16 Set - I

BOOK – KEEPING & ACCOUNTANCY (50)

Mock Prelim
Time : 3 Hrs. (8 Pages) Max. Marks : 80

Notes : (i) All questions are compulsory.

(ii) Figures to the right indicate full marks.
(iii) Answer to every question must be written on new page.

Q.1. Attempt any Three of the following :

(A) Answer in one Sentence : (05)
(1) What do you mean by qualified acceptance?
(2) What does Receipts & Payment Account show?
(3) Define partnership?
(4) How amount due to deceased partner is calculated?
(5) What is Authorised Capital?

(B) Write the word/term/phrase which can substitute each of the

following statements : (05)
(1) The tool for analysis of financial statement where, individual figures of
balance sheet is converted into percentage.
(2) Nominal Value of shares allotted.
(3) Conversion of assets into cash on dissolution of firm.
(4) The proportion in which the continuing partners benefit due to
retirement of partner.
(5) Change in the relationship between the partners.
(C) Select the most appropriate alternative from those given below and
rewrite the statement :
(1) Akash, Prakash and Deepak are partners who share profits as 3:2:1.
They admit Suraj as a partner and decided to share future profits as
5:3:2:2, the Sacrifice Ratio will be __________.
(a) 1 : 1 : 0 (b) 2 : 1 : 1 (c) 0 : 1 : 3 (d) 0 : 0 : 2
(2) Liability of minor as a partner is _________.
(a) Limited (b) Unlimited (c) Several (d) Joint
(3) Deficiency of Insolvent partner will be shared by Solvent Partners in
their _________ ratio.
(a) Capital Ratio (b) Profit - Sharing Ratio,
(c) Sale Ratio (d) Liquidity Ratio
(4) __________ is deducted from the share capital to know paid up value of
shares.
(a) Calls-in-Advance (b) Calls-in-Arrears
(c) Forfeited Shares (d) Discount on Issue.
(5) The Interest on Debentures is transferred to _________.
(a) Debentures A/c (b) Profit and Loss A/c
(c) Balance Sheet (d) Debenture holders A/c

(D) State whether the following statements are "True" or "False" : (05)
(1) Ratio Analysis is useful for interfere comparison.
(2) The unregistered debentures are known as naked debentures.
(3) At the time of dissolution, loan from partner will be transferred to
Realisation Account.
(4) Death of a partner is like a compulsory retirement.
(5) Prepaid Expense is a liability.

(E) Preparation of Format of Bill of Exchange. (05)

(1) Drawer : Hira Sharma, 35, Lakshani Apartment, Ulhasnagar.
(2) Drawee : Neepu Shukla, 23, Prasad Bhawan, Thane (East).
(3) Payee : Anita, Ambarnath.
(4) Period : 90 days
(5) Amount : ` 9,755
(6) Date of Bill : 15th March, 2006.
(7) Date of Acceptance : 20th March, 2006.
Q.2. Mac and Sam are partners in a firm sharing profits and losses in the ratio of
3 : 2. They keep their books on single entry system. On 1-4-2003 the
following statement of affairs was extracted from their books. (08)
Statement of Affairs as on 01.4.2003
Creditors 15,000 Plant and Machinery 15,000
Bills Payable 12,500 Stock 10,000
Capital : Mac 12,500 Sundry Debtors 17,500
Sam 10,000 22,500 Cash in Hand 7,500
50,000 50,000

On 31st March, 2004 the Assets and Liabilities were as follows :

Plant & Machinery `22,000 Cash `10,000
Stock `15,000 Creditors `10,000
Debtors `20,000 Bills Payable 12,500
Drawings made during the year – Mac ` 3,000 and Sam ` 2,000.
You are required to prepare a statement of profit or loss for the year
considering the following adjustments:
Additional information
1. Plant is overvalued by 10%
2. Stock is overvalued by ` 5,000.
3. A Reserve for Bad Debt is to be created at 5% on Debtors.
4. Interest on partners capital is to be allowed at 5% p.a. and charge
interest at 10% p.a. on drawings.
OR

Q.2. (A) Write a Note on Common Size Statement. (04)

(B) If Current assets are ` 2,50,000 and Current Liabilities are

` 1,25,000. What will be the Current Ratio? (04)

Q.3. A & B were partners sharing profit and losses in the proportion of 2/3 & 1/3.
Their Balance Sheet is as follows: (10)
 Balance Sheet as on 31st March, 2012
Amt. Amt.
Liabilities (`) Assets (`)
Capital A/c : Cash at Bank 20,000
Rahul 60,000 Bills Receivable 26,000
Ram 32,000 Debtors 40,000
Reserve Fund 8,000 Stock 40,000
Bills Payable 15,000 Furniture 4,000
Sundry Creditors 65,000 Buildings 50,000
1,80,000 1,80,000
On 1st April, 2012, they admitted Paul into firm on the following terms :
1. He should be given 1/5 share in the future profit & should bring in ` 30,000
as capital.
2. Goodwill of the firm should be valued at ` 50,000 and Paul should bring his
share in cash.
3. Furniture and stock should be reduced by 10% and R.D.D. should be created
at 5% of debtors.
4. Building should be raised by 20%.
5. The capital accounts of all partners should be adjusted in their profit sharing
ratio through bank account.
Prepare necessary ledger accounts in the books of the firm and balance sheet of
the new firm.
OR
Q.3. Akshay, Salman and Ranbir were partners sharing profits and losses in the
ratio of their capitals. Balance Sheet of the firm stood as under on 31st
March, 2012. (10)
st
Balance Sheet as on 31 March 2012
Liabilities (`) Assets (`)
Sundry Creditors 15,200 Cash at hand 13,700
Bills Payable 8,600 Investments 9,000
Reserve Fund 10,200 Sundry Debtors 20,800
Pradeep Loan 14,000 Less : R.D.D. (1,000) 19,000
Capitals: Stock 10,000
Akshay 25,000 Furniture 14,500
Salman 15,000 Motor Lorry 18,800
Ranbir 10,000 50,000 Land & Building 13,000
98,000 98,000
 Salman died on 1st August, 2012 and the following adjustments were made
as per deed:
1. The assets and liabilities were revalued as under:
Land & Building be depreciated by 20%. Motor Lorry be depreciated by
` 2,000/-; Stock to be revalued at ` 7,500/- and Furniture at ` 20,000/-.
Bills payable to be valued at ` 8,000/-, R.D.D. on debtors to be
maintained at 10%.
2. The deceased partner is to be given his share of profit to the date of his
death, based on the average profits of last 3 years.
3. Salman’s share of goodwill is to be calculated at two times the average
profits of the last 5 years. Profits and losses for the last 5 years ended on
31st March were:
2007 – 2008 : Profits ` 6,000/-,
2008 – 2009 : Loss ` 3,000/-,
2009 – 2010 : Profit ` 5,000/-,
2010 – 2011 : Profits ` 10,000/-,
2011 – 2012 : Profits ` 12,000/-.
4. Salman has withdrawn ` 3,000/- upto the date of his death. Interest on
Capitals at 10% per annum is allowed and 6% p.a. is to be charged on
drawings for 4 months.
You are required to:
a. Give the working of share of profit and share of goodwill of deceased
partner.
b. Salman’s Capital A/c showing the amount payable to his legal heirs.

Q.4. Journalise the following transactions in the books of Mohit :

i) Sandhya informed Mohit that Sawan's acceptance for ` 16,000 endorsed
to Sandhya has been dishonoured. Noting charges amounted to ` 300.
ii) Swati renews her acceptance to Mohit for ` 6,000 by paying ` 2000 in
cash and accepting a fresh bill for the balance plus interest at 12% p.a.
for 3 months.
iii) Rinika's acceptance to Mohit ` 10,000 retired one month before the due
date at a discounted of 6% p.a.
iv) Bank informed Mohit that the bill of ` 8,000 has been dishonoured by
Meenakshi which was sent to bank for collection. (10)
Q.5. Kshamta, Shivani and Rita were partners in a firm sharing profits and losses
in ratio of 1/2, 1/3 and 1/6 respectively :
 The Balance sheet of the firm on 31st March, 2012 was follows : (10)
Balance Sheet as on 31st March, 2012
Liabilities Amt. (`) Assets Amt. (`)
Capital Accounts: Bank 6,000
Kshamta 50,000 Debtors 32,000
Shivani 20,000 Less: R.D.D. (2,000) 30,000
Bills Payable 12,000 Stock 40,000
Shivani's Loan 32,000 Plant 60,000
Sundry Creditors 20,000 Furniture 12,000
Rita's Capital 6,000
1,54,000 1,54,000
The firm was dissolved on the above date and the assets realized as under:
1. Debtors ` 18,000; Plant ` 52,000; Stock ` 28,000;
2. Furniture at 50% of book value;
3. Creditors were paid off at a discount of ` 4,000 and realisation expenses
amounted to ` 3,200
4. Rita became bankrupt and ` 1.000 could be recovered from her private
estate.
Prepare : Realisation A/c, Partners Capital A/c, Bank A/c.
OR
Q.5. Skyfall Limited issued ` 10,00,000 new capital divided into ` 100 shares at a
premium of ` 20 per share, payable as under :
On Application ` 10 per share
On Allotment ` 40 per share (including premium of `10 per share)
On First and Final Call Balance
Over-payments on application were to be applied towards sums due on
allotment and first and final call. Where no allotment was made, money was
to be refunded in full.
The issue was oversubscribed to the extent of 13,000 shares. Applicants for
13,000 shares were sent letters of regret and application money was returned
to them, the balance shares were fully allotted.
All the money due on allotment and final call was received.
Give Journal Entries to record the above transactions (including cash
transactions) in the books of the company. (10)
Q.6. Following is the Balance Sheet and Receipts and Payments Account of the
Memorial Hospital, Sawantwadi. Prepare Income and Expenditure A/c for the
year ended on 31.03.2010 and the Balance Sheet as on that date. (12)
Dr. Balance Sheet as on 1/4/2009 Cr.
Amount Amount
Liabilities Assets
(`) (`)
Capital Fund 10,04,000 Cash in Hand 6,000
Outstanding : Cash at Bank 34,000
Salaries 22,000 Land and Building 8,00,000
Medical Bill Unpaid 6,000 Furniture 70,000
Equipments 1,20,000
Outstanding 2,000
Subscriptions
10,32,000 10,32,000
Receipt and Payment Account for the year ended 31.03.2010
Amount Amount
Receipt Payments
(`) (`)
To Balance b/d By Salaries 1,10,000
Cash in Hand 6,000 (Including of the
Cash at Bank 34,000 previous year)
To Subscription 1,30,000 By Medicines 52,000
(Includes ` 2,000 By Equipments 20,000
received for previous year) purchased
To Sale of Furniture 20,000 By Taxes 3,000
(Book Value `30,000) By General Expenses 8,600
To Donations (Revenue) 44,000 By Balance c/d
To Life Membership Fees 25,000 Cash in Hand 15,400
Cash at Bank 50,000
2,59,000 2,59,000
Consider the following adjustments :
(1) Outstanding subscription ` 12,000.
(2) Capitalise the amount of membership fees.
(3) Prepaid Taxes ` 500
(4) Outstanding Salary ` 12,000.
(5) Write off depreciation ` 20,000 from Land and Building and ` 30,000
from Equipments.
(6) Outstanding Medicines bill as on 1.4.09 is still due.
Q.7. JJ and CG were partners sharing profits and losses in the proportion 3/5 and
2/5. Interest on capital was allowed @ 6% p.a. but interest on drawings was
ignored. The following balances of accounts are given as on 31st March,
2007. (15)
Trial Balance as on 31.03.2007
Debit balance (`) Credit balance (`)
Opening Stock 10,000 Return Outward 1,250
Sundry Debtors 14,100 Sundry Creditors 15,700
Purchases 20,000 Sales 35,000
Wages 4,250 R.D.D. 200
Salary 1,350 Capital A/c :
Office Expenses 2,023 JJ 35,000
Discount 650 Loan @ 9% 2,000
Plant & Machinery 15,000 (taken on 1.10.2006)
Return Inwards 1,750
Land & Building 20,000
Cash at Bank 7,327
Current A/c :
JJ 2,100
CG 600
99,150 99,150
Adjustment:
1. Closing stock was valued at ` 20,500.
2. Unpaid wages were ` 750 and outstanding salary ` 657.
3. Write off ` 100 as Bad debts and provide 5% Reserve for Doubtful
debts on Sundry Debtors and 2% for Discount on Debtors.
4. Provide Depreciation @10% on Plant and Machinery.
You are required to prepare Trading and Profit and Loss A/c for the
year ended 31st March, 2007 and a Balance Sheet as on that date.