OMTEX PRELIMINARY BOOK KEEPING & GROUP: A

CLASSES EXAMINATION ACCOUNTANCY

TIME: - 3 HRS DATE: - DAY - MARKS:

-100

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

A. Answer the following. (5)
1. What is bill of exchange?
2. Who is co – venture?
3. What is Super Profit?
4. What is Endorsement of Bill?
5. What is Good will of the firm?
B. Write word/term/phrase which can substitute each of the followings: (5)
1. Reputation of a firm expressed in terms of money.
2. Payment of bill of exchange before its due date at rebate.
3. The person who accepts the bill of exchange?
4. The person on whom the bill of exchange is drawn.
5. The account that is credited when depreciation is charged.
C. Match the pairs. (5)

A B

1 Depreciation 1 Temporary Partners

. .
Dishonour of bill Intangible Asset
2 2
. Joint Venture . Wear and tear

3 Goodwill 3 Notary public

. Co – Ventures . Temporary partnership
4 4 Tangible Asset
. .

5 5
. .

6
.

D. Select the most appropriate alternative from those given below: (5)
1. Debit Balance in Joint venture Account shows _______________
a. Profit on joint venture
b. Loss on joint venture
c. Net loss
d. deficit
2. A bill of exchange must be accepted by ___________________
a. A drawer
b. A payee
c. An endorsee
d. A drawee
3. At the end of the financial year balance of Depreciation account is transferred to _______________
 a. Depreciation account
b. Asset account
c. Trading account
d. Profit and loss account.
4. In the absence of partnership deed the partners share the profit and loss of the firm _____________
a. In the ratio of capital
b. Equally
c. As per rights in management
d. On the basis of experience.
5. ____________ has to ultimately bear the noting charges.
a. Drawer
b. Drawee
c. Endorser
d. Bank

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:

Drawer: Vilas Patil, 21. M.G. Road, Pune
Drawee: Vikas Pawar, 31. S.V. Road, Nasik.
Payee: Viraj Potade, 41, A.B. Road, Sholapur,
Period: 2 months
Amount: Rs. 7,500/-
Date of Bill: 1st January, 2007.
Date of acceptance: 3rd January, 2007.

Q2. On 1st April, 2004 Saikripa enterprises purchased two computers of Rs. 40,000 each. On 1st October,
2004 they purchased one more computer for Rs. 40,000. On 1st October, 2006 they sold one computer,
which was purchased on 1st April, 2004 for Rs. 18,780. Depreciation on computers was provided @ 10%
p.a. on diminishing balance method and the financial year closes on 31st March every year. Prepare
computer A/c depreciation A/c for years 2004 – 05, 2005 – 06 and 2006 – 07.
OR
Q2. (A) The books of a business showed that the capital employed on 31st December, 1992 was Rs.1,
00,000/-. Profits for the last five years are_1988, 1989, 1990, 1991 & 1992 were Rs, 60,000, Rs, 55,000,
Rs, 75,000, Rs, 85,000 & Rs, 65,000 respectively. Goodwill is valued at 2 years purchase of the Super
profit of the business. NRR is 10%.

Q2. (B)Write a short notes on uses of computer in modern age.

Q3. Ameet draws a bill for Rs. 7500 on Tushar for four months. Ameet discounts the bill with the bank at
8%p.a. On the due date Tushar requested Ameet to accept Rs. 4,700 (including Rs. 200 for interest)
and to draw a bill for the balance of three months. Ameet agrees this proposal. Before the due date of the
new bill Tushar retires the bill for Rs. 2960. Pass the journal entries in the books of Tushar and open
Tushar’s account in the books of Ameet.

Q3. Journalize the following transactions in the books of Kamesh:

a. Nanda informs Kamesh that Shanti’s acceptance for Rs. 4,000 endorsed to Nanda has been
dishonoured and noting charges have been Rs. 100
b. Ashok renews his acceptance to Kamesh for Rs. 2400 by paying Rs. 800 in cash and accepting a
new bill for the balance plus interest @ 12 p.a. for 3 months.
 c. Deva’s acceptance to Kamesh Rs. 12,000 is retired one month before its due date at a discount of
12% p.a.
d. The bank informs Kamesh that Sudhakar’s acceptance for Rs. 4,000 sent to bank for collection has
been honoured. Bank charges debited Rs. 40.
e. Our acceptance to Shanthi for Rs. 5000 is settled by endorsing Malliga’s acceptance to us for Rs.
4,800.

Q4. Anil and Sunil entered in to a joint venture to consign 500 bales of cotton to Mukesh to be sold on their
joint risk. Anil sends 150 bales at Rs. 300 each and pays Rs. 2000 for freight and insurance. Sunil
purchases 350 bales at Rs. 250 each paying for insurance and other charges Rs. 4000. Anil advances a
cheque of 12,000 to Sunil and also accepts a bill for the same amount drawn by Sunil which was
discounted by Sunil@ 90% of its value. Mukesh sold all the bales @ Rs. 400 each. The expenses incurred
by Mukesh are Rs. 5000 and his commission was 10% of the sales value. Mukesh remits Rs. 100000 to
Sunil and the balance to Anil by a cheque. Venturers settle their accounts by a draft. Pass journal entries in
the books of Anil.
Q5. Priya and Supriya are equal partners, who maintain their books under single entry.
Their position as on 1st April 02 are as follows:
Liabilitie Amt Asset Amt
s

Capitals Plant 1,60,

: 000
2,00, Furniture
Priya 000 10,00
Stock 0
Supriya 1,20,
000 Debtors 67,60
Creditor 0
s 40,00 Bills
0 receivable 97,30
Bills 0
payable 12,40 Cash
0 Bank 9,200

540

27,76
0

3,72, 3,72,
400 400

On 31st march 03 their statement of affairs was as follows :

Cash Rs.800 , Bank Rs 31,600 , Creditors Rs 42,400 , Stock Rs 73,400 , Debtors Rs 1,32,600, Bills payable
Rs 1,200, Bills receivable Rs 17,600 .
Plant and Furniture are to be depreciated by 10%
From the debtors Rs 4,600 are considered irrecoverable and R.D.D at 5% is to be created.
An amount of Rs1,600 is to be set aside from bills receivable.
Priya and Supriya have withdrawn Rs20,000 and Rs 16,000 for their personal use.
Interest at 5% on the opening balances of partners capital is to be.
Prepare : statement of affairs as on 31st March 02 and statement of profit and loss for the year ending
31.03.03

Q6. From the following information, prepare Income and Expenditure account for the year
ended 31st March, 2008 and a Balance Sheet as on that date.

Receipts Amou Payments Amount

nt
To Cash in hand 1750 By Bank Overdraft 2500
(1.4.2007) By Salaries 5300
To Subscriptions 150 By Furniture 2000
2006 – 07 14100 By Investments in 4000
2007 – 08 75 Securities 800
2008 – 09 2500 By Printing and 1500
To proceeds from 800 Stationery 1300
Drama 500 By Cost of Staging 2500
To Entrance Fees 200 drama 175
To Interest on Securities 20075 By Sundry Expenses 20075
To sale of Old Furniture By Cash at Bank
By Cash in Hand

1. The society has 1500 members, each paying an annual subscription of Rs. 12.
 2. Subscriptions of Rs. 100 pertaining to the year 2006 – 07 are still in arrears.
3. Value of Stationery at hand on 31st March, 2007 was Rs. 200 and on 31st March, 2008 was Rs. 150.
4. Entrance fees are to be treated as Capital receipts.
5. Salary of Rs. 700 for the current year is unpaid.
6. Balances as on 31st March, 2007: Investment Rs. 4500, Building Rs. 25000, Furniture Rs. 200.
7. Depreciate building by 2 ½ % and furniture by 5%.

Q7. Following is the Trial balance of a firm as on 31st December, 1997

Trial Balance as at 31st December, 1997
Debit Balance Amou Credit Balance Amou
nt nt

Bank 2,000 A’s Capital 25,00

0
Bills Receivable 8,000 B’s Capital
15,00
Sundry Debtors 23,00 Bills Payable 0
0
Stock on 31.12.97 Sundry Creditors 7,500
31,00
Purchases(net) 0 Reserve for bad debts 33,30
0
Petty cash A/c 1,80,0 Sales
00 600
Wages
4,000 2,90,
Salaries
000
38,30
Rent (for 10 months)
0
Electricity Charges
20,80
Drawings – A 0

Drawings – B 1,000

Buildings 2,180

Furniture 6,000

Carriage Inwards 4,000

Donations 34,00
0
Carriage Outwards
4,000
Miscellaneous
Expenses 2,000

Printing and 1,000

Stationery
3,500
Postage and Telegram
1,500
Fuel and power
2,300

1,430
 1,390

3,71,4 3,71,
00 400

Adjustments:
1. Wages include Rs. 3,300 paid for the construction of a part of the building.
2. Provide for outstanding rent
3. Depreciation is to be provided on furniture@ 10% and Building @ 5%
4. Bills Receivable and Bills Payable include dishonoured bills for Rs. 2,000 and Rs. 1,500 respectively.
5. Bad debts to be written off Rs. 500. Provide reserve for doubtful debts @ 5% on debtors.
You are required to prepare Trading and profit and loss account for the year ended 31st December 1997 and
a balance sheet as on that date.