1. Write a note on recoupment of Short Workings 2.

Write a note : (a) New Profit Sharing ratio (b) Gain ratio 3. Aruna and Appu are partners sharing profits and losses in the ratio of 3:2. They admit Akarsh and give him 1\5th share. Aruna and Appu agree to share the remaining profits between themselves in the ratio of 2:1. Calculate the profit sacrifice ratio of Aruna and Appu 4. From the following information prepare receipts and payments account for the year ended 31.12.2007 Rs. Rs. Cash 1.1.2007 10,000 Sundry expenses paid 21,000 Subsriptions 20,000 Investments bought 1,000 Entrance free 5,000 Honorarium of secretary 1,500 Locker rent 2,000 Rent paid 2,000 Bank charges paid 500 5. Prepare income and Expenditure A\c for the year ended 31.12.2007. Rs. 1. Admission fees collected including Rs.40,000 1,90,000 2. Admission fees outstanding for 2007 5,000 3. Salary paid including Rs. 4,000 on account of 2006 49,000 4. Salary outstanding for 2007 4,500 5. Entertainment expenses 22,500 6. Meeting Expenses 12,000 7. Purchase of books 10,000 8. Rent and Postage 30,000 9. Donations(capitalized) 30,000 Admission fees to be treated as revenue receipt PART B Answer any TWO question 10 Marks each 6. Write a note on garner vs Murray decision in the dissolution of partnership firm? 7. What are the adjustments to be made in the books of firm at the time of the retirement of a partner? 8. Guddappa ,Basappa,Ulliveppa were partners in the firm sharing profits in 2:2:1ratio.The partnership deed provided that in case of death of a partner,the executors were entitled to : 1.His capital as per the previous balance sheet 2.His share of profit to the date of death.Caluclated on the basis of proportion profit of previous year 3.His share of goodwill on the basis of two years purchase of the average profits of the preceding three years. 4. Intrest on capital at 6% p.A Guddappa died on 31.3.2008. The books were closed on 31st December each year.The following were profits of firm for previous three years;

2005-Rs 52,000, 2006- Rs. 56,000 and 2007- Rs.48,000 Guddappa capital on 31.12.2007 was Rs.20,00 and h is drawings to the date of death was Prepare Guddappa executors account. 9. Anantha and Ram agreed to dissolve the partnership on 31.12.2007 on which date their balance sheet as follows: Balance as on 31.12.2007

Liabilities Creditors Rams loan Capitals: Anantha Ram Reserve Fund

Rs. 8,000 6,000 20,000 15,000 6,000 55,000

Assets Bank Debtors Stock Furniture Plant & Machinery Goodwil

Rs. 4,000 6,000 20,000 4,000 18,000 3,000 55,000

The partners share profits and losses equally.The assets realized as follows: Stock Rs 28,000,Debtors Rs 5,800,Furniture Rs 3,700,Plant & Machinery Rs 17,000 The creditors were paid off 5% discount.The cost of dissolution amounted to Rs 500 Prepare necessary accounts in the books of firm. PART-C Answer any three questions.15 Marks each 10. What do you mean by goodwill ? What are the different methods of valuation of goodwill? 11. What do you mean by Non-trading concerns? Write difference between receipts and payments account and income and expenditure account. 12. On 1.1.2005 Anu Computers purchased a computer from Shreya on Hire purchase system on the following terms. (i) Cash price of the computer was Rs. 20,000 (ii) Cash down payment Rs. 8,000 and the balance to be paid in three equal annual instalments plus intrest at 6% on outstanding balance. It was decided to depreciate the computer at 5% P.A. On diminishing balance each year. From the above details computer A\c , Shreyas A\C , depreciation A\C in the books Anu computers. 13. Byadgi coal to leased out a coal mine from Basu. Royality is Rs. 20 per tone of coal raised. Minimum rent is 400000 P.A . Short workings can be recouped during first 5 years of lease out is as follows:

Year Output in tonnes 2003 2,500 2004 12,000 2005 20,000 2006 30,000 2007 30,000 Write up minimum rent A\C , Royalities A\C , Short workings A\c and Basus A\c in the books Byadgi coal company. 14. The following are the Balance sheet on 31.12.2007 of Suresh and Jagu who were sharing profits in the ratio of 2:1 Balance sheet Liabilities Creditors Capitals: Suresh Jagu Rs. 65,900 Assets Cash Debtors Stock Building Plant & Machinery Rs. 1,200 9,700 20,000 50,000 35,000 1,15,900

30,000 20,000 1,15,900

They agreed to admit Sateesh into partnership on the following terms : a) Sateesh was to be given 1/3 share in profits was to bring Rs. 15,000 as capital and Rs. 6,000 as goodwill b) That the value of stock , plant and machinery were to be reduced by 10% c) That a provision of 5% was to be credited for bad and doubtful debts d) That the building was to be appreciated by 20% e) Investment worth Rs. 1,400(not given in B\S) were to be credited into account f) That the amount of goodwill was to b

MAY/JUNE 2008 PART A Answer any three questions five marks each. 1. Write a brief note on Royality and Short workings. 2. Write a note on Hire Purchase.

3. From the following details of a Non trading organization as on 1.1.2008. Prepare Balance sheet and find out capital fund. Value of buildings Rs. 10,000 Value of Furniture Rs. 2,000 Value of Sports material Rs. 1,000 Cash in hand Rs. 500 Subscriptions outstandings Rs. 300 Rent of a building prepaid Rs. 200 Watchmans salary outstanding Rs. 500 Subscriptions from members received in advance Rs. 300 Loan Rs. 2000 4. A and B are partners sharing profits and losses in the ratio of 3:2 they admit C and give him share . calculate the new profit sharing ratio of the partners . 5. From the following calculate the amount of royality payable each year if Royality rate is Rs. 10 per copy sold . Year 2004 2005 2006 2007 2008 No. of copies printed 2000 3000 4000 5000 6000 PART-B Answer any Two questions. 10 marks each. 6. Explain the adjustments to be in the books of the firm at the time of the retirement of a partner. 7. Mention and briefly exjplain the adjustments to be made for ascertaining the account payable from the firm to the deccased partner. 8. From the following information relating to Sagar Cricket Club , prepare an income and expenditure account for the year ending 31st March 2008 and a balance sheet as on that date. Receipts and payments accounts for the year ended 31.3.2008 Receipts To subscriptions Admission fees Sale of old bats, pads etc Rent of grounds Rs. 5,000 300 50 300 Payments By upkeep of grounds Tournament expenses Rates and insurance Printing and stationary Rs. 2,000 700 300 100 unsold copies 100 200 400 500 600

 Tournament Subscription s Drawn from bank Donations

1,000 4,000 10,000 ---------20,650 ---------

Secretarys salary Purchase of grass seeds Purchase of balls, bats etc Deposits of bank a/c

170 30 700 16,650 ---------20,650 ---------

Additional informations. Capital fund on 1.1.2007 Rs. 3,000 Balance on cash at Bank Rs. 3,000 Donation are to be capitalized. Adjustments to be made 1) Subscription outstanding at 31st March 2008 Rs. 700 2) Write of 20% of the value of bats and balls and 25% of printing and stationery. 9. A, B and C share the profit and losses in the ratio of 2:3:5. The balance sheet as on 31.12.2007 was as under Liabilities Capitals A B C Creditors Bills payable Profit & loss a/c Rs. 36,000 44,000 52,000 64,000 32,000 14,000 Assets Cash Bills receivable Furniture Stock Debtors Investments Machinery Goodwill Rs. 18,000 21,000 28,000 44,000 42,000 32,000 34,000 20,000 2,42,000

2,42,000

a) b) c) d) e) f)

They admit D into partnership on the following terms: Furniture, investments and machinery to be reduced by 15% The value of stock to be taken at Rs. 48,000 Goodwill to be valued at Rs. 26,000 D to bring Rs. 32,000 towards capital for 1/6 share and old partners adjust their capitals accordingly Outstanding rent amounted to Rs. 1,800 Prepaid salaries amounted to Rs. 800

g)

Adjustments of capital to be made by cash

Prepare revaluation a/c and capital a/c of old partners. PART-C Answer any Three question . 15 marks each. 10. Give the meaning of non-trading organizations with examples. Write the differences between an income and expenditure account and a receipts and payment account. 11. Explain the applicability of the rule in Garner Vs Murray in the dissolution of partnership firms. 12. Srushti collieries Ltd leased some land for a minimum, rent of Rs. 3,000 for the first year , Rs. 5,000 In the second year and thereafter Rs. 10,000 p.a. merged into a royality of 50 paise per ton with power to recoup short workings over the years after the occurring of short workings. The annual outputs for 5 years commencing from 2002 were: Year Output in tons 2002 3,000 2003 8,600 2004 22,000 2005 18,000 2006 30,000 There was a provision in the lease that, in the event of a strike and the minimum rent not being reached the actual royalties earned for the year discharge all rental obligations for that year. Prepare : a) Minimum rent a/c b) Royalties a/c c) Short workings a/c d) Land lord a/c in the books of Srushti Colliers Ltd. 13. On 1.1.2007 Bombay Taxi Company purchased a car on hire purchase on the following terms a) Cash price of the car was Rs. 10,000. Down payments Rs. 4,000 b) Balance to be paid on the three equal installments plus interest on the outstanding balance at Prepare: Car account, hire sellers account, interest account and depreciation account in the books of the Bombay Taxi Company. Deprecation on the car is to be charged at 25% on straight line method. Also show the workings on interest calculation. 14. A,B and C were partners sharing profits and losses in the proportion of 3:2:1 respectively . Their balance sheet as on 1.4.2008 was under Rs. Rs.

Creditors Reserve CAPITALS: A 39,000 B 20,000 C 11,000

14,000 12,000

Cash Debtors Stock Plant Premises

10,000 16,000 25,000 21,000 24,000

70,000 -------------------96,000 96,000 -------------------On the above date A retaired on the following terms: a) A to be paid Rs. 60,000 in full setelment of all claims including goodwill b) The amount due to A be settled as follows: A to take 1:2 of stock; of debtors and of prenuises c) The balance due to A to be paid later d) Plant to be depreciated by Rs.1,000 , premises to be revalued at Rs. 30,000 and stock to be revalued at Rs. 26,000 Prepare revaluation , partners capital account and continuing partners balance sheet. October/November 2007 (2003 Scheme) PART A Answer any THREE questions 5 marks each 1. Give the meaning of Dead Rent and Short Workings. 2. What is Hire Purchase ? How does it differ from sale. 3. From the following information prepare Receipts and Payments Account. Rs. Opening balance of cash in hand 2,000 Subscriptions received 8,000 Interest received 4,000 Salaries 4,000 Rent Paid 300 Sundry expenses 200 Stationery 1,500 Investments made during the year 4,000 Telephone charges 1,500 4. A T.V. was purchased on Hire purchase system the terms of payments are as follows Rs. 2,000 to be paid on signing the agreement Rs. 2,800 at the end of the first year

5.

6. 7. 8.

Rs. 2,600 at the end of the second year Rs. 2,400 at the end of the third year Rs. 2,200 at the end of the fourth year If interest is charged at the rate of 10% p.a. What is the cash price of the T.V. Ram , Lakshman and Bharath are partner sharing profits and losses in the ratio of 3:2:1. Bharath returns and his share is gained by Ram 1/24 and Lakshman 1/8. Caluclate the New Profit Sharing of Ram and Lakshman. PART-B Answer any Two questions . 10 marks each. Explain the treatment of Goodwill at time of Admission and Retirement of a partner. What is the principle in Garner Vs Murray ? When it is applicable ? The following is the Balance Sheet of A, B and C who shared profits and losses in the ratio of , 1/3 and 1/6 respectively.

APRIL/MAY 2006 (2003 Scheme) Answer any Three questions 5 marks each . 1. Explain the rule laid down is Garner Vs Murray decision. 2. Caluclate the interest for each instalment from the following. On 1st January 2000 A purchased a T.V on hire purchase system the cash price of the T.V is Rs .7,450 the payment is made as follows .Rs.2000 on signing the agreement and Rs. 2000 annually for 3 years.. 3. X,Y and Z are the partners in a firm sharing profit and losses I the ratio of 3:2:1.Y retires from the firm, his share is gained by X and Z in 1:1 ratio. Find new ratio of X and Y. 4. Explain the following a) Short working b) gaining ratio 5. A and B are partners sharing profits and losses in the propotion of 7:5 . They agreed to admit C into partnership who is to get 1/6th share in profits . The acquires this share as 1/24th from A and 1/8th from B. Find out new profit sharing of all partners. PART-B Answer any two questions . Each question carries 10 marks . 6. Distinguish between Income and Expenditure and Receipts and payment account. 7. From the following prepare income and expenditure account for the year ended 31.12.2004 To,balance b/d Cash in office 4,000 Cash at bank 500 4,500 To subscription 30,000 (including Rs1,000 for 2003) To,interest on investment 10,000 By salaries & wages By Rents and rates By printing and stationery By postage and telegraphs By purchase of bicycle By purchase of govt.security 40,000 2,000 100 400 2,000 1,500

To bank interest To sale proceeds of a jeep

500 3,000

By balance c/d cash in office 500 Cash at bank 1,500

2,000 48,000

48,000

Adjustments 1. Subscriptions outstanding for the current year Rs. 8000 2. The amount due towards salaries & wages and printing and stationery are Rs. 1,500 and 500 respectively. 8. What is joint life policy ? Explain the treatment of joint life policy in partnership account . 9. A, B,c and D are partners sharing profit in the ration of 2:2:1:1. There balance sheet as on 31.12.2004 was as follows. Liabilities Capital Accounts A 14,000 B 12,000 C 2,000 D 1,600 Creditors Bills payable Assets Fixed assets Debtors cash at bank Profit A/C 29,600 12,000 2,400 44,000 44,000 20,000 10,000 2,000 12,000

On 1.1.2005 the firm was dissolved all the asset except cash were realized for Rs. 24,800. Realization expenses were Rs.200 all the liabilities were discharged at book values. C becomes insolvent and he could not bring anything from his private estate. Prepare realization a/c and capital a/c , applying Garner Vs moray decision. PART-C Answer any Three questions 15 marks each. 10. On 1.1. 1999 Anuradha co., obtained from Bharth a lease of mine terms buying a royality of Rs. 2 per ton raised subject to a minimum rent of Rs. 9,000 P.A. with a right to recoup the shoot workings over the first 4 years of the lease. From the following details prepare royalities a/c , short working a/c and Bharths a/c in the books of Anuradha. Year Sales in tons Closing stock tons 1999 1500 500 2000 2300 400 2001 5000 700

2002 2003 2004

6000 3600(strike) 4500(lock out)

800 600 500

During the event of strike the minimum rent not being reached, the actual royalities for the year discharged the rental obligations for that year and in the event of lock out the lessee would enjoy the concession in respect of minimum rent for 40% of the prepaid of lock out. 11. What are the features of income and expenditure account? How is receipt and payment account is converted into income and expenditure account? 12. Explain the various methods of treating goodwill in the books of firm when a new partner is admitted and on retirement of a partner. 13. A purchased a computer from B for cash price of Rs. 25788 on hire purchase system. On 1.1.2002 A paid down payment of Rs.4000 on signing the contract and agreed to pay the balance in 3 equal installment of Rs.8000 due on 31st December each years. Rate of interest is 5% P.A. Charges depreciation on computer at 20% P.A. On WDV each year pass journal entries in the books of A assuming that he is the owner of the computer. 14. A and B are partnership firm sharing profits in the ratio of 3:1 the balance sheet of the firm on 31.12.2000 was as follows. Liabilities Assets Creditors Workmen compensation Fund General reserve Capital A B 6000 4900 16000 2100 1800 1200 Bank Bills receivable Debtors 4000 3500 3000 5000 1000 16000 1000 2500

less provisions 500 Stocks Investments Goodwill

On the above C is admitted for 2/5th share in the profits of the firm and the following revaluation were made. 1. 2. 3. 4. Accrued incomes not appearing in the books of Rs. 100 Market value of investments is Rs. 4500 Claim on a/c of workmen compensation is estimated at Rs. 150 X an old customer whose a/c was return of as bad. Has promised to pay Rs. 350 insettelment of his full debts.

5. C is required to bring Rs.8000 as capital and Rs.2000 as goodwill. His share of goodwill was calculated at Rs. 2400 Your required Revaluation A/C , partners capital account and initial balance sheet of new firm.

APRIL /MAY 2005 (Semester Scheme) PART-A Answer any three questions 5 marks each. 1. 2. 3. 4. Mention the adjustments at the time of admission of a partner and treatment of goodwill. Write a note on Garner V/s Murray case. Calculate the gain ratio with imaginary figures of a partnership firm. Write notes on: a) Minimum Rent b) Short working Recocepment 5. What are the methods of valuation of goodwill? PART-B Answer any two questions 10 marks each. 6. The following is the receipts and payments account of the Mysore sports club for the year ending 31.12.2000. Receipts Rs. Payments Rs. To Balance b/d 625 By Billiards table 4,200 To Subscriptions 1999 320 by Repairs and Renewals 1.233 2000 18,500 by wages 7,275 2001 700 by Rent 6,125 To Entrance Fees 965 by interest 1,727 To locker rent 900 by Stationery & other Expenses 4,750 To special subscription for by bal c/d 1,940 Governors party 5,240 27,250 27,250 Adjustments: 1. Entrance fees are not to be capitalized. 2. Outstanding subscriptions for governess party amounted to Rs. 750 3. Outstanding subscriptions for the current year amounted to Rs. 822 4. Locker rent Rs. 120 pertaining to previous year and Rs. 140 is owing. 5. Stationery and other expenses Rs.675 referred to previous year and Rs. 523 is still due.

6.

Rs. 1,500 related to previous year and Rs. 1,650 is still owing from the above information prepare income and expenditure account of the Mysore Club for the year ending 31st December 2000. 7. Neela , Mala and sheela were partners in a firm sharing profit and losses in the ratio of 2:2:1. A dissolve the firm the balance sheet stood as follows on the date of dissolution. Balance sheet Liabilities amount Asset amount Creditors 5000 Cash 7000 Bills payable 4000 bills payable 3000 Reserve fund 1000 Stock 6000 Capitals Debtors 3500 Neela 9000 Furniture 3000 Mala 8000 Machinery 7000 Sheela 7000 24000 Goodwill 2500 Profit & loss 2000 34000 34000 Assets realized were as follows: Bills Receivable Rs. 2800 , Stock Rs. 8000 , Debtors Rs. 3200, Machinery Rs. 8000 , Furniture Rs. 2800, Goodwill Rs. 2200, The liability were paid in full expansion of dissolution amount to be Rs. 400. Prepare necessary accounts. 8. Karan and Kiran are equal partners. They decide to admit Kumar as a partner and to readjust the balance sheet values for this purpose. The balance sheet of Karan and Kiran on 31st December 2004 was as under. Liabilities Rs. Assets Rs. Creditors 14,000 Cash in hand 1,800 Bills payable 5,400 Debtors 20,000 Capital Accounts Plant 4,000 Karan 40,000 Stock 23,600 Kiran 30,000 70,000 Buildings 40,000 ----------------89,400 89,400 The following adjustments were to be made before Kumars admission 1. Kumar brings Rs. 30,000 as his capital 1/4th share and Rs. 18,000 for goodwill 2. The half of the goodwill amount is withdrawn by the old partners. 3. Pla nt was valued at Rs. 3,600 4. The stock is to be depreciated by 10% 5. Rs. 1,000 were to be provided for doubtful debt 6. The value of the buildings to be appreciated by Rs. 14,000

Prepare Revaluation A/c, Partners capital A/c and the balance sheet of the newly constituted firm. 9. Sunil, Suraj and Sharma were partners sharing profits and losses equally. Their balance sheet on 31.12.2004 was as follows. Balance sheet as on 31.12.2004 Liabilities Rs. Assets Rs. Sundry Creditors 22,000 Cash in hand 3,000 Profit and loss A/C 6,000 Cash at Bank 5,000 Capital Accounts Debtors 15,000 Sunil 40,000 Plant & Machinery 30,000 Suraj 30,000 Stock 20,000 Sharma 35,000 1,05,000 Land & building 60,000 ------------------1,33,000 1,33,000 Suraj retired on the above date and partners agreed that: 1. The goodwill of the firm is to be valued at Rs. 27,000 2. Land and Buildings is to be appreciated by 8% 3. Plant and Machinery is to be depreciated by5% 4. Stock to be reduced by 5% 5. Rs. 1,100 to be provided for doubtful debts Prepare the necessary ledger accounts and the Balance sheet of continuing partners. PART-C Answer any Three questions 15 marks each. 10. From the following particulars relating to the Theosophical Society , prepare : 1. A Receipts and payments account 2. Income and Expenditure Account as on 31.12.2004 and 3. A balance sheet as on the above date. Balance sheet of Theosophical Society as on 31.12.2004 Liabilities Rs. Assets Outstanding Creditors 850 Cash at bank Capital fund 31,150 Investments Sundry Debtors accured Interest o/s Outstanding subscriptions Library books Furniture & Fixtures -----------32,000

Rs. 6,000 20,000 250 800 2,000 2,950 --------32,000

The transactions for the year 2004 were: Receipts: Subscriptions Rs. 5,000 , collection from concerts and Lecture Rs. 2,000 . Interest on investments Rs. 950, entrance fee received Rs. 1,000 and sale of old furniture Rs. 1500. Payments: Rent Rs. 1,200 , printing Rs. 300, Advertising Rs. 400, Sundries Rs. 110 , investment in securities Rs. 5,000, FurnituresRs. 800, Library books Rs. 600 and of concerts and lectures Rs. 1,500 The following were outstanding as on 31.12.2004: Printing Rs. 150 , Rent Rs. 200 , Interest on investment Rs. 300 and subscription Rs. 650 , Capitalize the entrance fees. Cash on hand on 31.12.2004 was Rs. 4,340. 11. Mr. Kariayappa wrote book on Marketing and got it published with Aloka publishers. Madikeri on the terms that Royality is to be paid Rs. 5 per copy sold subject to a minimum royality of Rs. 15,000 per year with a right recoup short workings over the first three years only The details are as under. Year No. of copies printed No. of copies of closing stock 2000 2,000 200 2001 3,000 300 2002 4,000 400 2003 5,000 500

Prepare : 1. Minimum Royality account 2. Royality Account 3. Short working account 4. Kariyappas account in the books of Aloka publishers. 12. R buys a pumposet on hire purchase system on 1.1.2000 The terms of payments are as follows: 1. Rs. 2,000 to be paid on signing the agreement 2. Rs. 2,800 at the end of 2,000 3. Rs. 2,600 at the end of 2001 4. Rs. 2,400 at the end of 2002 5. Rs. 2,200 at the end of 2003 If interest is charged 10% p.a. What was the cash value of the pumpset? Show the necessary ledger accounts in R s book after writing depreciation at 10% p.a. on written down value system. 13. Ravi and Mahesh were partners and decided to dissolve the firm on 31.12.2000 . Their balance sheet was as follows: Balance sheet Liabilities Rs. Assets Rs. Creditors 5,600 Bank 4,000 Bank loan 5,000 Debtors 7,900 Capital Accounts Stock 13,300

3,500 40,000 20,000 1,700 3,000 600 --------------------52,300 52,300 Debtors realized Rs. 7,500 , Stock realized Rs. 12,600, Furniture Rs. 4,000, Assets Rs. 16,000 legal charges Rs. 1,200 had to be paid in addition to cost dissolution Rs. 1,800 . Write journal entries and show the necessary ledger accounts to close the books. 14. On 1.1.2000 the Madras Transport Company has acquired 3 trucks of Rs. 50,000 each from TATA MOBILES on the hire purchase basis. The terms of payments were Rs. 30,000 on signing the agreement and the balance in three equal annual installment of Rs. 40,000 together with 8% interest on 31st The December each year. The trucks are to be depreciated by 20% on reducing balance. The Madras Transport Company paid the first installment but could not pay the subsequent and hence the TATA Mobile took over two trucks adjusting the amount charging 30% depreciation. Give Truck account and the Tata Mobile Co., Accounts for the 3 years in the books of Madras Transport Company.

Ravi 20,000 Mahesh 20,000 Current A/c Ravi

Furniture Assets p&l a/c Current a/c:Mahesh