Sample Question Paper IN Accountancy

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SAMPLE QUESTION PAPER

IN
ACCOUNTANCY

_______________________________________________________________________
Time: Three Hours Maximum Marks: 100
_______________________________________________________________________

Note: The question paper is divided into two sections A and B. Attempt all questions of
Section A and any one question of Section B:

Section A

Note: All questions are compulsory


1. Give an example each of capital expenditure and revenue expenditure. 1

2. What is the legal provision of Profit sharing ratio if nothing is given in ‘Partnership
Deed”? 1

3. A student of Accountancy feels that a Simple Cash Book always shows a credit
balance. Give your opinion. 2
4. Define anyone of the following:
i) Vouchers
ii) Supporting Vouchers
iii) Accounting Vouchers 2
5. What is Bank Reconciliation Statement? 2
6. Give the names of any four assets in liquidity order. 2
7. Give the formulae of ‘Sacrificing ratio’ and ‘Gaining Ratio’. 2
8. Explain in brief the term ‘Accounting’ and give any two differences between book-
keeping and Accounting. 3

9. What is ‘going-concern Assumption’? Explain briefly its significance. 3


10. The Capital of is a business concern is Rs. 1,00,000. The value of assets is Rs.
2,00,000. Complete the accounting equation with four suitable liabilities assuming
imaginary figures. 4
11. Suppose the bank account in your ledger shows a credit balance. What will be the
effect of following transactions in your pass book balance.
(i) One of your customers deposit some amount directly into your bank
account.
(ii) Bank Charged interest on the amount overdrawn by you.
(iii)A cheque deposited last week by you has been dishonoured. Bank charged
some amount on account of it.
(iv)Under your standing instructions Bank paid your insurance premium to the
Insurance Company. 4
12. A, B and C are equal partners. B retires on March 1, 1997 and his share is taken
over by A and C in the ratio of 3:5. Profits upto Dec.97 is Rs. 18,000. Total
Goodwill of the firm is Rs. 24,000. How much will B get from A and C for
goodwill and how much will he get for profit for 1997? Pass necessary journal
entries. 5
13. What is meant by the term ‘Forfeiture of Shares’? Can forfeited shares be reissued
at discount? If so, to what extent? Where would you transfer the balance left in the
shares forfeited account of the reissue of such shares? 5

14. A Ltd. Co. having a nominal capital of Rs. 20,00,000 divided into 2,00,000
equity shares of Rs. 10 each, offered to the public for subscription 1,00,000
equity shares at a premium of Rs. 2 per share payable as:

On application Rs.2 per share


On allotment Rs.5 per share (including premium)
On Ist Call Rs. 2 per share
On final Call Rs. 3 per share

All the shares offered were applied for and alloted. The allotment money was received in
full. A shareholder holding 100 shares failed to pay the first call and his shares were
forfeited. These shares were reissued at Rs. 6 per share, Rs. 7 per share paid up. Final call
has not been made.
10

Give the necessary journal entries to record the above transactions.

15. The following Trial balance is extracted from the books as on 31st March 98.

Name of Account Dr. balances Rs. Cr. balances Rs.


Furniture and Fittings 640 -
Motor Vehicle 6,250 -
Building 7,500 -
Capital - 12,500
Bad debts 125 -
Commission Received - 575
Sundry Debtors and Creditors 3,800 2,500
Stock on 1.4.97 3,460 -
Purchases and Sales 5,475 15,450
Bank Overdraft - 2,850
Sales and Purchase 200 125
Returns
Advertising 450 -
Interest Account 118 -
Cash in hand 650 -
Taxes and Insurance 1,250 -
General Expenses 782 -
Salaries 3,300 -
34,000 34,000
Adjustments:
(a) Stock on hand on 31.3.98 was Rs. 3,250
(b) Depreciate Building at 5%, Furniture and fittings @ 10% and Motor Vehicle by Rs.
1250.
(c) Rs. 85 is due for interest on Bank Overdraft.
(d) Salaries Rs. 300 and Taxes Rs. 120 are outstanding.
(e) Insurance is prepaid to the extent of Rs. 100.
(f) One fifth of the commission received is in respect of the work to be done next year.

Prepare Trading and Profit and Loss Account for the year ended 31st March 98 and Balance
Sheet as on that date. 12

16. A and B Sharing profits in the ratio of 5:3 admit C as a partner with 1/5th share
in profits. He has to contribute Rs. 20,000 as his capital. The Balance Sheet of A
and B before admission was as follows:

________________________________________________
Liabilities Rs. Assets Rs.
________________________________________________
Sundry Creditors 21,000 Goodwill 10,000

Bills Payable 6,000 Land and Buildings 25,000

Capitals Plant and Machinery 30,000

A 50,000 Stock 15,000


B 35,000 85,000 Sundry Debtors 20,000
General Reserve 16,000 Less Reserve 1,500 18,500
Investments _______ 20,000
9,500_
Cash 1,28,000
1,28,000
Other terms agreed upon were:
i) Goodwill of the firm was valued at Rs. 22,000
ii) Land and Building were valued to be at Rs. 35,000 and Plant and
Machinery at Rs. 25,000.
iii) The provision of bad debts was found to be in Excess by Rs. 400.
iv) A Liability for Rs. 1,000 included in Sundry Creditors was not likely to
arise.
v) Rs. 12,000 of investments were to be taken over by A and B in their
profit sharing ratio.
vi) B is to withdraw Rs. 3,400 in cash.

Pass Journal entries, preapre Revaluation A/c and Capital A/cs of Partners. 12

OR
A, B and C are partners in a business sharing profits and losses in the ratio of 3:2:1. Their
Balance Sheet on 31st March 97 was as follows:

_______________________________________________________________________
Liabilities Rs. Assets Rs.
Sundry Crediors 1600 Cash in hand 600
General Reserve 6,000 Cash at bank 1,000
Capitals Sundry Debtors 9,000
A 10,000 Stock 7,000
B 10,000 Machinery 6,000
C 10,000 Factory Building 14,000
37,600 37,600

On that date C retires from business.

It is agreed to adjust the value of assets as follows:

i) To provided a reserve of 5% on Sundry Debters for doubtful debts.


ii) To depreciate Machinery by 10%.
iii) To revalue Factory Building at Rs. 15,100.
iv) To create a liability for Rs. 350 against bills discounted.
v) To value C’s share of goodwill at Rs. 10,000 and adjust it in Capital Accounts
of A and B who are going to share profits and losses equally.

Pass journal entries, prepare Revaluation A/c and Capital A/cs of Partners 12

17. Prepare Accounting Vouchers:

i) Transfer of Share Application money to share capital A/c Rs. 20,000


and share Allotment money received Rs. 40,000 4
ii) Prepare Transfer Voucher from the
supporting voucher based on 1998
May I Purchased goods from M/s Ajay
Brothers vide Bill No. 100/- Rs. 3,000 2

iii) Prepare a Debit voucher from


the supporting voucher based on
1998
May 10 Wages paid vide wage
sheet No. 21 Rs. 1,000 2

iv) Prepare a credit voucher from the following

1998
May 15 Withdraw cash from bank
for office use vide cheque No. 1785 Rs. 1,500 2
Section B

Attempt any one question of section B:

18. a) i. Calculate current Ratio from the Balance Sheet given below:

Balance Sheet

Liabilities Amount Assets Amount


Rs. Rs.
Capital 2,00,000 Goodwill 2,40,000
Reserves 80,000 Current Assets
Current Liabilities: Cash 2,000
Creditors 22,000 Stock 20,000
B/P 18,000 B/R 40,000
Bank Overdraft 16,000 Goodwill 20,000
Outstanding 60,000 Investments 20,000
Expendes

3,42,000 3,42,000

ii) How will you interpret the ratio calculated in the above question? 5
iii) Calculate the funds from operation from the information given below:
Net Profit for the year Rs. 65,000

Profit on sale of Building Rs. 3,550

Goodwill written off Rs. 18,000

Depreciation provided during Rs. 65,000


the year

Machinery Costing Rs. 800 sold Rs. 650


for

c) Prepare Schedule of changes in working capital and funds flow statement from the
information given below:
Assets 31.12.96 31.2.97
Goodwill 10,000 5,000
Cash 1,23,000 1,60,000
Closing Stock 87,000 1,20,000
Long-term investments 15,000 10,000
Debtors 5,000 3,000
Land 15,000 27,000
2,55,000 3,25,000
Liabilities
Creditors 50,000 45,000
B/P 20,000 35,000
Loans (Long-term) 20,000
Capital 1,25,000 1,50,000
P and L A/c 60,000 75,000

2,55,000 3,25000
10

19. a) Write short notes on:

i) Donations
ii) Entrance fees

b) i) Calculate what amount of subscription will be posted to Income and


Expenditure A/c for the year ending 31st December 1997:

Subscription received during the year

For 1996-Rs.80
For 1997-Rs.4,220
For 1998-Rs. 160

There are 450 members, each paying Rs. 4,460 as annual subscription of Rs. 10, Rs. 90
were in arrears for 1996 at the beginning of 1997.

ii) Why do we prepare Income & Expenditure A/c in place of P&L A/c for Non
Trading organization 2
c) From the information given below, prepare Income and Expenditure A/c for the
year ended Dec. 31, 1997

Receipts and Payment A/c


Receipts Amounts Payments Amount
To bal. b/d 2,500 By General Expenses 1,100
To Entertainment fee 1,000 By Salaries 2,500
To sale of old furniture 60 By Stationery 200
To sale of old 40 By Newspapers 300
newspaper
To Donations to Sports 4,200 By Furniture and fittings 1,300
Fund
To Subscription 2,000 By maintenance of garden 200
By sports Expenses 1,000
By sports Investments 3,000
By bal. c/d 500
10,100 10,100
Additional Information:

i) There are 250 members in the club, each paying Rs. 10 as subscription.
ii) Salaries include Rs. 100 for 1996 and Rs. 1.50 for 1998 Salaries outstanding for
1997 Rs. 200. 10

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