JAIN COLLEGE

463/465, 18th Main Road, SS Royal, 80 Feet Road, RajaRajeswari Nagar,

Bangalore - 560 098

Date: Dec- 2017 IIPUC SUBJECT: ACCOUNTANCY

MOCK– II
Time: 3Hrs. Total Marks: 100

General Instructions to the candidate

1. Candidates are required to give their answer in their own words as far as practicable.
2. Figures in the right hand margin indicate full marks.
3. While answering the candidate should adhere to the word limit as far as practical.
4. 15 minutes of extra time have been allocated for the candidate to read the question.
5. Step wise procedure has to be shown.
6. Please use pencil for drawing format.
7. Write the correct question number as it appears on the question paper.

SECTION – A

I.Answer any seven questions. Each question carries two marks. 7×2=14

1. What is depreciation?
2. What are the differences between fixed and fluctuating capital methods?
3. What is sacrifice ratio?
4. Mention any two models of payment on settlement to a retiring partner.
5. Give the Journal entry for Realisation Expenses paid on Dissolution of Firm.
6. What do you mean by Calls-in-arrears?
7. Sate any two techniques of Financial Analysis.
8. What is Common size Statement?
9. What are ‘’Legacies’’?
10. What is Real Time processing system?

SECTION – B

II. Answer any four questions. Each question carries five marks. 4×5=20

11. Ramesh and Suresh are partners sharing profit and losses in the ratio of 5:3. Their capitals as on
1.4.2016 were Rs. 80,000 and Rs. 60,000 respectively. They earned a profit of Rs. 48,900 as on
31.3.2017 before adjusting the following.
a) Interest on capital at 5% p.a.
b) Ramesh is allowed a salary of Rs.500 p.m for the 6 months and remaining period Rs.1000 p.m
c) Their drawings being Rs.5,000 and Rs.6,000 respectively. Interest on the same Rs.200 and
Rs.300 respectively.
Prepare Profit and Loss Appropriation Account for the year ending 31-03-2017

12. Vajra and Vani are partners sharing profits and losses in the ratio of 3:2. They admit Rani 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. Naveen , Praveen and karan were partners in a firm sharing profits and losses in the ratio of
2:2:1.They get interest on their capitals at 5% P.A. They receive salaries of Rs.500 Rs 400 and
350 respectively per month.

Their Balance sheet on 31.3.2016 is given below:

Liabilities Rs. Assets Rs.
Creditors 20,000 Cash at Bank 19.000
General Reserve 2,000 Debtors 40,000
Capital Stock 52,000
51,000
Naveen 58,000 Plant& Machinery
8,000
Praveen 50,000 Profit and loss A/C
Karan 40,000

1,70,000 1,70,000
Mr. Karan died on 1.10.2016. According to partnership deed the executors of
the deceased partner are entitled to claim
a. Capital of Mr.Karan
b. Interest on capital
c. Salary payable to Mr. Karan
d. Share of profit up to the data of death based on the average profit two preceding years Te
profits were :
2014 Rs.50.000
2015 Rs.40.000
e. Share of goodwill calculated on the ‘basis of 2 years’ purchase of the average profits of 3
proceeding years. The profit earned 2013 was 30,000.
Ascertain the amount payable to the executors of the deceased partner.

14. The Varun company Ltd issued 20,000 10% debentures of Rs 100 each at a premium
of Rs 10 per debenture.
The amount was payable as under
Rs 20 on application,
Rs 50 on allotment including premium,
Rs 30 on first call and final call.
All the debentures were subscribed and money duly received.
Write the journal entries upto the stage of allotment to record the above transactions
in the books of company.

15. Calculate the trend percentage from the following figures of sales, stock and profit of
Ranganath Ltd. Taking 2012 as the baser year.

Year Sales Stock Profit before tax

Rs. Rs. Rs.
2012 1,88,100 70,900 32,100
2013 2,34,000 78,100 43,500
2014 2,65,500 81,600 45,800
2015 3,02,100 94,400 52,700
2016 3,76,800 1,15,400 62,700
16. From the following ledger balances of Sindhu Sports Club as on 1st April, 2016, ascertain opening
capital fund:
Buildings: Rs 50,000, Computer Rs 25,000, Sports Materials Rs 20,000,
Investments: Rs 12,000, Outstanding Salary: Rs 1,500, Outstanding Subscriptions: Rs 2,500,
Tournament fund: Rs 10,000, Subscriptions received in advance: Rs 1,200,
Cash in hand: Rs 8,200.

17. Explain the Five qualities of information.

SECTION-C
III. Answer any four questions. Each question carries fourteen marks. 4×14=56

18. on 01-04-2010 a firm acquired a lease costing Rs.50,000/- for a term of four years.
it was proposed to depreciate it on the annuity method. Charging interest at 6%p.a with
reference to the annuity table, to write off Re. 1 at 6% over a period of four years, the amount to
be charged is 0.288591

Show the Lease Account and Interest Account for all four years.

19. A, B and C are Partners sharing profit and losses in the ratio of 2:3:5 respectively.
On 31-03-2016. Their Balance sheet was under.
Liabilities Rs. Assets Rs.

Creditors 38,000 Bank 45,000

Bills Payable 35,000 Debtors 40,000
Reserve 30,000 Less: Provision 5,000 35,000
Capital: Stock 25,000
A 80,000 Furniture 28,000
B 70,000 Motor Car 20,000
C 60,000 2,10,000 Machinery 55,000
Buildings 80,000
Profit and loss Account 25,000

313000 313000

On the above date, A retired on the following conditions:

a) Depreciation Machinery, Furniture and Motor car at 10% each.
b) Appreciate stock and Buildings by 5% each.
c) Maintain Provision for Bad debts at 20%.
d) Outstanding salaries Rs.3000.
e) Goodwill of the firm is valued at RS.40, 000 A’S share of goodwill is to be created and written
off immediately.
f) Remaining partners decided to pay the A’s dues by availing bank overdraft.
Prepare:
1) Revaluation A/C
2) Capital A/C of partners
3) Balance sheet of the new firm.
 20. Anand, Chethan and vijay are partners sharing parfits and losses in the ratio of 2:2:1. Their
Balance Sheet on 31.3.2016 was as follows:

Balance Sheet as on 31 .3.2016

Liabilities Rs. Assets Rs.
Creditors 15,000 Cash in hand 12,000
Anand’s loan 5,000 Debtors 26,000
RBDD 1,000 25,000
Bills payable 10,000
Bills receivable 5,000
Bank loan 18,000 Investment 18,000
Reserve fund 12,000 Machinery 25.000
Furniture 15,000
Capital ; 10,000
Profit &loss a/c 20,000
Anand 20,000
Chethan 20,000
Vijay 10,000
50,000
1,20,000 1,10,000
On the above date the firm was dissolved.
The assets realised as follows:
a) Debtors Rs.24,000 ,Bill receivable Rs.,4,000, investment Rs .15,000, Machinery RS.22,000
b) Chethan took the furniture for Rs. 10,000.
c) Creditors and Bills payable are paid at a discount of 5%
d) Unrecorded investment realized Rs.4, 000
e) Dissolution expenses Rs.2, 250.

Prepare:
i) Realisation Account ii) partners Capital Account iii) Cash Account

21. The Govinda Company issued 5,000 Equity shares of Rs 100 each at a discount of 10% (allowed
at the time of allotment). The net amount payable is as follows.
On application Rs 20
On allotment Rs 20
On first call Rs 25
On final call Rs 25
X holding 100 shares did not pay final call money. His shares were forfeited. These shares Were
Re-issued to Y at Rs 70 per share fully paid up.
Pass the journal entries relating to issue, forfeiture and re-issue of shares in the
books of company.

22. Form the following trial balance prepare Final Accounts of TVS Trading Company Ltd. as on 31-
3-2016. Prepare the financial statement in vertical form.
 Debit Credit
SL.No Name of the Accounts Rs. Rs.
1 Good will 1,50,000
2 Trade Receivables 3, 45,000
3 Opening Inventories 58,000
4 Patents 32,000 58,000
5 P&L Opening Balance
6 Machinery 2,55,000
7 Buildings 2,89,000 2,25,000
8 Bank Overdraft
9 Cash and Cash Equivalents 2,25,000 1,95,000
10 Trade payables
11 Salaries & Wages 1,75,000
12 Freight Outward 50,000
13 Purchase of Goods 3,25,000
14 Rent, Rates and Taxes 63,000
15 Interest on Bank Overdraft 16,875
16 Power, Fuel Expenses 48,000
17 General reserve 1,95,000
18 Share Capital (Equity Shares of Rs. 5,00,000
10 each)
19 Loans given to employees 88,125
20 Sales 9,47,000
Total 21,20,000 21,20,000
Adjustments:
a. Closing Inventories Rs 145,000.
b. Create provision for taxation at 30%.
c. Transfer to General Reserve Rs 25,000.
d. Directors proposed dividend of 5%.
e. Provide Depreciation on Machinery at 10%, Buildings at 5% and Goodwill by 20%.
f. D. D. T at 16.995% on dividend.

23. The following is the summarised Profit and Loss A/C and Balance Sheet of Manjunath Trading
Company Ltd. for the year ended on 31.03.2016
Profit and Loss Account for the year ended on 31.03-2016
Dr Cr
Particulars Rs Particulars Rs

To Opening Stock 50,000 By Sales 5,00,000

To Purchases 2,50,000 By Closing Stock 75,000
To Direct Expenses 25,000
To Gross Profit c/d 2,50,000

5,75,000 5,75,000
To Administrative Expenses 75,000 2,50,000
To selling Expenses 60,000 BY Gross Profit b/d
To interest 15,000
To Net Profit c/d 1,00,000
Total 2,50,000 Total 2,50,000
 Balance Sheet as on 31. 03. 2016
Liabilities Rs. Assets Rs.
Share Capital 5,00,000 Land and Building 2,50,000
Profit & Loss A/c 1,00,000 Plant and Machinery 1,50,000
Current Liabilities 2,00,000 Furniture 1,00,000
Stock 75,000
Debtors 75,000
Bills Receivables 62,500
Cash at Bank 87,500
Total 8,00,000 Total 8,00,000

From the above information calculate.

a) Gross Profit ratio
b) Current ratio
c) Stock Turnover ratio
d) Liquidity ratio
e) Operating ratio.

24. Global Sports club, Mandya was started from`1-4-2016. Its Receipts and Payments Account for
the year ending 31-03-2016 was as follows :

Dr. Receipt and payment A/C for the year ending 31-03-2016 Cr.
Receipts Rs. Payments Rs.
To Tournament fund 15,000 By Salary 13,250
To Games fees 12,500 By Tournament Expenses 10,000
To Life member ship fees 40,000 By Telephone charges 3,300
To Special donations 3,00,000 By Games Expenses 12,500
To Subscriptions 35,000 By Sports materials 11,000
To Sundry income 5,750 By Building 2,45,000
By Furniture 27,000
By office Expenses 6,000
By Investments 60,000
By balance c/d 20,200

4,08,250 4,08,250
Adjustments
a) Interest earned but not received Rs.1, 200.
b) Outstanding salaries Rs.1, 750.
c) Special donation and life membership fees are to be capitalised.
d) Sports materials on 31-03-2016 were valued at Rs.7,500.
e) Depreciate Building by Rs.5,000.
f) O/S Subscription rs.4,500 and Subscription received in advance rs.1,250
 SECTION-D
(PRACTICAL ORIENTED QUESTIONS)
Answer any two questions. Each question carries 5 marks: 2 × 5 = 10

1. Prepare a Machinery account for two years with imaginary figures under Diminishing Balance
Method.
2. Prepare Executor’s Loan Account with imaginary figures, showing the repayment in two annual
equal installments along with Interest.
3. Classify the following into Capital and Revenue items :
a) Honorarium paid to the secretary
b) Life membership fees
c) Locker rent paid
d) Subscription received from members
e) Library books purchased.

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