Time : 3 hrs 1. 2. 3. 4. 5. 6.

ACHIEVERS COACHING CENTRE (REGISTERED 10155) M.M:80

Give any two features of receipt and payment account 1 Give two circumstances where gaining ratio can be applied. 1 What is meant by super profit? 1 What are unsecured debentures? 1 What do you mean by calls in arrear? 1 Raves club gives you the following information during the year 2008-09 Sports fund Rs6, 00,000 Sports fund investment @7%p.a Rs4, 00,000 Expenses incurred during the year on Sports PrizesRs1, 50,000 Donation received on Sports fund during the yearRs75, 000 Interest received on fund investment during the yearRs20, 000 How will you deal with the following in the books of the club? 3 7. AZEE ltd issued 10,000 shares of Rs10 payable as follows: Rs3 on application payable on 1st march; Rs2 on allotment payable on 1st may; Rs2 payable on I call payable on 1st August and Rs3 payable on final call on 1st December. All the shares were fully subscribed and paid. Atman who had 4,000 shares paid the amount due with I call and II call with allotment .Rashi who had 2,000 shares paid II call money with first call. Directors decided to allow interest on calls in advance according to provision of Table A. Calculate interest on calls in advance. 3 8. Rs.5, 00,000 shares of Rs10 each were issued for public subscription at a premium 10%. Full amount was payable on application. Applications were received for 75,000 shares and the board decides to allot the shares on pro rat basis. Pass journal entries. 3 9 A and B two partners contributed Rs24, 000 and Rs20, 000 respectively as capital. It is agreed that besides interest on capital @8%p.a. they will get Rs500 per month as salary. Half of the residual profit will be distributed between them in their capital ratio and other half equally. For the year ended 31st march 2007, the firm made a profit of Rs41, 920 and during the period the partners withdrew from the partnership: A Rs8, 400 and B Rs7, 200 .Show the profit and loss appropriation account and partners capital accounts in the books of the firm. 4 10. (a) X and Y are partners with capital Rs30,000 and Rs10,000 respectively. They admit Z as a partner for 1/4th share in the profit of the firm. Z brings Rs15,000 as his capital.Journalise for goodwill (b) A and B are in the partnership sharing profits 3:2. They decide to change their profit sharing ratio to 3:2. The capitals of A and B after adjustments are Rs80,000 and Rs60,000 respectively. The capital accounts of partners are to be adjusted on the basis of new profit sharing ratio. Calculate the amount of cash to be paid off or brought in by the partners for the adjustment of capital and pass necessary journal entries. 4 11. A company forfeited 2000 shares of Rs10 each issued at a discount of 10% for non-payment of Rs2 and final call of Rs2 per share was not called. 500 of these shares were re-issued at Rs5,Rs8 called up and remaining were reissued at Rs8, fully called up. 4 12. Following is the receipts and payment account of Lions club for the year ended 31st march 2007.
Receipts RECEIPTS AND PAYMENTS ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 07 Amount (Rs.) Payments Amount (Rs.)

To cash in hand To subscription To entrance fees

8320 2006 2000 2007 21,000 2008 3,000 26000 4100 9880 5850 4550 5,000 ______ 63,700

By rent of hall By salaries By purchase of sports equipments By dance expenses By supply of refreshment By honorarium By prize awarded By sundry expenses By electricity changes By cash at bank

3640 5200 16640 4940 6760 1040 5,200 3250 1820 15210 63,700

To sale of refreshments To sale of dance tickets To interest on investments @ 7% To Prize fund

Following additional information's are also provided to you : (i) Following were the assets and liabilities on 31st March, 2006 : Sports equipment Rs. 6,760, subscription in arrears Rs. 2,100, Furniture Rs. 12,480 Liabilities-Accrued rent Rs. 780 and subscription received in advance Rs. 520. (ii) 'Following were the assets and liabilities on 31st March 2007 : Sports equipments Rs. 19,760, Subscription in arrear as on Rs. 1,690, Furniture Rs. 11,180, Liabilities-accrued rent Rs. 390. (iii) Half of the Entrance Fees is to be capitalized. You are required to prepare income and expenditure account also calculate opening capital fund 6 13. On 1st July 2009. Akash Ltd gave notice of their intention to redeem their outstanding Rs. 8,00,000 8% Debentures on 1st January, 2010 @ rs. 102 each and offered the holders the following options(a) To subscibe for (i) 8% cumulative preference shares of Rs. 20 each at Rs. 22.50 per share which was accepted by debenture holders of Rs.3,42,000 or (ii) equity shares were issued @96%, accepted by the holders of Rs. 2,88,000 Debentures. (b) Remaining debentures to be redeemed for cash if neither of the option under (a) was accepted. Pass necessary journal entries. 6 14. Pass journal entries for the following transactions in the books of the firm on its dissolution:
a. b. c. 3:2:1. An unrecorded liability of Rs. 3,000 was settled by X at 70% , one of the partner of the firm. Partners Loan of Rs. 50,000 was discharged at 90%. Loss on realisation amounted to Rs. 6,000. There were three partners X,Y and Z sharing profits and losses of the firm in d.Realisation expenses amounted to Rs. 2,000, B has to bear these expenses.

e. Deferred Revenue Advertising Expenditure appeared at Rs. 28,000. f. A typewriter of rs200 completely written off in the books of the firm was used in settling an unrecorded liability of Rs500. 6 15. A, Band C were partners in a firm sharing profits equally: Their Balance Sheet on.31.12.2007 stood as: BALANCE SHEET AS AT 31.12.07LiabilitiesRs. Assets Rs. A Rs. 30,000 B Rs. 30,000 C Rs. 25,000 Bills payable Creditors Workers Compensation Fund Employees provident Fund General Reserve Goodwill Cash Debtors . 43,000 Less: Bad Debt provision 3,000 Bills Receivable Land and Building Plant and Machinery 18,000 38,000

85,000 20,000 40,000 18,000 25,000 8,000 60,000 60,000 40,000 30,000 2,21,000 2,21,000 It was mutually agreed that C will retire from partnership and for this purpose following terms were agreed upon. i) Goodwill to be valued on 3 years purchase of average profit of last 4 years which were 2004 : Rs.50,000 (loss); 2005 : Rs. 21,000; 2006: Rs.52,000; 2007 : Rs.22,000. ii) The Provision for Doubtful Debt was raised to Rs. 4,000. iii) To appreciate Land by 15%. iv) To decrease Plant and Machinery by 10%. v) Create provision of Rs;600 on Creditors. vi) A sum of Rs.5,000 of Bills Payable was not likely to be claimed. vii) The continuing partners decided to show the firms capital at 1,00,000 which would be in their new profit sharing ratio which is 2:3. Adjustments to be made in current account Make necessary accounts and prepare the Balance Sheet of the new partners. 8 Q.16 X Ltd. invited applications for 11,000 shares of Rs. 10 each issued at 20% premium payable as: On application Rs. 3 (including Rs. 1 premium) On allotmentRs. 5 (including Rs. 1 premium)On 1st Call Rs. 3On 2nd & final call Rs.1 Application was received for 24000 shares. Category I : One fourth of the shares applied for allotted 2000 shares.Category II: Three fourth the shares applied for allotted 9000 shares .Excess money is to be adjusted against allotment only.

Mr. Mohan holding 300 shares failed to pay allotment and two calls and his shares were forfeited & re issued @ Rs. 11 fully paid-up. Pass necessary journal entries 8
PART B 17) What will be the impact of Redemption of Debenture on a Debt Equity Ratio of 2:1 of a company. Give reasons. 18) Tax Refund results in Inflow, Outflow or No Flow of Cash, while preparing a Cash Flow Statement ? 19) What do you mean by Cash Equivalents ? 20) Name the 4 items that are to be presented under the head Miscellaneous Expenditure of Companys Balance Sheet. 21) Prepare a Comparative Income Statement with the help of the following informations :
Particulars Sales Cost of Goods Sold Indirect Expenses Income Tax 2007(Rs.) 400,000 60% of Sales 50% of Gross Profit 50% of Net Profit before Tax 2008(Rs.) 600,000 70% of Sales 40% of Gross Profit 50% of Net Profit before Tax

1 1 1 3 4

22) ROI 40%.Debt as part of capital employed is rs.8,00,000.rate of interest is 10% tax rate is 50%.Calculatr profit available to equity shareholder 4 23) From the following information, prepare Cash Flow Statement for KKS Ltd. Liabilities 31/03/08(Rs.) 31/03/09(Rs.) Assets Equity Share Capital 500,000 700,000 Patents Profit & Loss A/c 200,000 350,000 Equipments Bank Loan 100,000 50,000 Furniture Creditors 50,000 45,000 Investments Outstanding Rent 5,000 7,000 Stock Proposed Dividend 50,000 70,000 Debtors Provision for Tax 30,000 50,000 Bank Cash 935,000 1,272,000 31/03/08(Rs.) 31/03/09(Rs.) 100,000 95,000 200,000 230,000 300,000 270,000 --100,000 50,000 130,000 80,000 120,000 200,000 300,000 5,000 27,000 935,000 1,272,000

Additional information : I. Investment purchased at the beginning of the year & carrying rate of intrest@10% p.a.