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2008 -

OMTEX CLASSES 09
OMTEX III RD PRELIMINARY BOOK KEEPING & GROUP: B
CLASSES EXAMINATION ACCOUNTANCY

TIME: - 3 HRS DATE: - 12TH, FEBRUARY, 2009 DAY - THURSDAY MARKS:


-100

Q1. Attempt any four of the following. (20 marks)

A. Answer in one sentence each. (5 marks)


1. Which types of expenses are debited to trading account?
2. What is Reserve Fund?
3. Who is an endorser?
4. What is non – profit organisation?
5. Why is Joint Bank Account opened?
A. Write the word/term/phrase which can substitute each of the following statement: (5
marks)
1. A statement showing financial position of the business.
2. Making the payment of bill before its due date.
3. Summary of actual cash receipts and cash payments.
4. The relationship between persons who have agreed to share profit or loss in Joint Venture
Business.
5. A Partner who only lends his name to the firm.
A. Match the following pairs. (5 marks)
Group A Group B

1. Not for profit a. Capital A/c. of partner.


concerns
b. Current A./c of Partner.
2. Fixed capital
method. c. Joint venture

3. Unexpired expenses d. Asset

4. Temporary e. Liability
Partnership f. Only personal A/cs.
5. Pure Single Entry g. Profit & Loss A/c.
System
h. Income and Expenditure A/c.

A. Select the most appropriate alternative from hose given below each statement. (5
marks)
1. Reserve for discount on ______________ has a debit balance.
a. Debtors
b. Creditors
c. Bills Receivable
d. Loan advanced.
1. Income Statements and Balance Sheet are prepared in a systematic and scientific manner
under ________________
a. Double Entry System.
b. Single Entry System
c. Partial Entry System.
d. Indian System.
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OMTEX CLASSES 09
1. Before accepting a bill, it is called a _________
a. Note
b. Draft
c. Hundi
d. Request.
1. Valuation of goodwill depends upon ________ capacity of business.
a. Normal
b. Repaying
c. Earning
d. Capital
1. If two or more persons come together to carry on a business activity for a short period, it is
known as ___________
a. Joint venture
b. Consignment
c. Partnership
d. Stock exchange
A. State with reason whether the following statements are true of false. (5 marks)
1. Scrap value of asset reduces the amount of annual depreciation.
2. When the amount of the bill is paid on the due date, it is said to be retired.
A. Prepare bill of exchange from the following details.
Drawer - Shekhar Desai, Shastri Road, Mahad. (5 marks)
Drawee – Sharad Verma, Narayan Peth, Pune.
Amount - Rs. 3500/-
Period - 3 months.
Payee - Mukund Pande, Panvel
Date of Bill Drawn – 21st June, 2007
Date of Acceptance - 23rd June, 2007

Q2. Avinash Traders, Nashik purchased furniture on 1.1.2002 for Rs. 25,000 on 1st July, 2002 additional
furniture was purchased for Rs. 10,000. On 1st July 2003 his furniture purchased on 1.1.2002 was sold for
Rs. 15,000 and on the same date new furniture was purchased for Rs. 12,000. The company charges
depreciation at 8% p.a. on diminishing balance method.
Prepare Furniture A/c for all the years and depreciation account for the last year. Assuming that the
accounting year of the company closes on 31st December, every year.
OR
Q2. (A) For the purpose of valuation of goodwill it was agreed to consider net profits of the last 4 years
and goodwill is to be calculated at one year’s purchase of average net profits of last 4 years. The profits
were
IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR

Rs. 80,000 Rs. 90,000 Rs. 1,05,000 Rs. 1,10,000


Q2. (B) Name the two output devices of computers and explain them in brief:

Q3. Abha purchased goods from Prabha on credit for Rs. 10,000 and accepted a bill drawn by Prabha for
four months. Prabha discounted the bill with her bank for Rs. 9,800. Before due date Abha accprached
Prabha with a request to renew the bill. Prabha agreed but with the condition that Abha should pay Rs.
6,000 with interest of Rs. 150 and accept a new bill for the balance. The arrangements were duly carried
out. New bill is met on due date. Pass the necessary journal entries in the books of Prabha.

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


1. Nita informs Smita about dishonor of Anita’s acceptance endorsed to her by Smita for Rs. 15,000.
Nita paid noting charges of Rs. 70.
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OMTEX CLASSES 09
2. Smita retired her acceptance for Rs. 7,000 one month before due date at a rebate of 12% p.a. to
Smita.
3. The bank informs Smita that Sudha’s acceptance for Rs. 8,000 sent to bank for collection has been
honoured. Bank charges debited Rs. 160.
4. Our acceptance to Soni for Rs. 5100 is settled by endorsing Chitra’s acceptance to us for Rs. 4,950.

Q4. Yash and Jay entered into joint venture to purchase and sell cycles. They decided to share profit and
losses equally.
Yash purchased 150 cycles at Rs. 400 each and spent Rs. 2,000 for carriage Rs. 4,000 for insurance
and draws a bill for Rs. 35,000 on Jay, which is duly accepted by Jay.
Jay purchased 210 cycles at Rs. 400 each and spent Rs. 1,400 for carriage and Rs. 2,000 for selling
expenses.
Yash sold 180 cycles at Rs. 750 each. All the remaining cycles of venture were sold by Jay at Rs.
550 each.
Joint venture was completed and both the parties settled their accounts you are required to pass
journal entries in the books of Yash.
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OMTEX CLASSES 09

Q5. The following is the balance sheet of M/s A, B, and C as on 31st march 06:
Liabilities Amt Asset Amt

Sundry 12,60 Cash in hand 1,200


creditors 0
Cash at bank 11,40
Bills 8,400 0
payable Sundry
debtors 25,20
Capital A/c 0
Stock
A 20,10
45,000 Furniture 0

B 90,00 Plant and 6,000


30,000 0 machinery
48,00
C Current A/c - C 0
15,000
1,560
Current A/c 2,460
A
1,440

B
1,020

1,13,4 1,13,4
60 60
A, B and C share profit and losses in the ration of 3:2:1 after charging interest on capital at 5%p.a. During
07, the monthly drawing on the partners were: A-1,200 , B-900,C-750.
On 31st march 07, the asset and liabilities of the firm were :
Cash in hand Rs.900; stock Rs 30,600; Plant and machinery Rs 75,000; Bill payable Rs7,200; sundry
debtors Rs 28,800 , Furniture Rs5,400 , sundry creditors Rs 10,200 and Bank overdraft Rs 18,000.
You are asked to : 1. Ascertain the profit or loss made by the firm as on 31/03/07
2. Show the Balance sheet of the firm 31.03.07

Q6. Following is the Receipts and Payments Account for the year ended 31st March 2006, of
Residency Sports Club, Raipur.
Receipts and Payments Account for the year ended 31st March 2006.
Receipts Amo Payments Amo
unt unt
2008 -
OMTEX CLASSES 09
To Balance B/D By Rent and Rates 4600

i. Cash in Hand 1500 By Stationery 1300


ii. Cash at bank Expenses
9000 1800
To Entrance Fees By Printing
1250 9900
To Membership Fees By Salaries
1000 900
To subscriptions: By Repairs to
Furniture 3600
• 2004 – 05 1,500
• 2005 – 06 15,000 By Honorarium to 600
• 2006 – 07 300 Secretary 750
To Miscellaneous Receipts 1680 By other expenses 1000
To Locker Rent for thirteen 0 By Telephone Charges
200
months 500 By Insurance
To Sale of Old Furniture (on 2600 By Social Events
1-4-2005) 350
2000 Expenses
To Non – Member’s Fees 1300
400 By Balance C/D 0
To Grant from local
Authority 1600 i. Cash in
Hand
To Social Events 1350 ii. Cash at
Bank
3800 3800
0 0

Additional Information:
1. The assets and liabilities as on 1-4-2005 were as follows: cash in hand 1500, Cash at Bank 9000,
Furniture 30000, Subscriptions Receivable 1800, 6% investments 30000, Outstanding Salaries 900,
Rent Payable 600, Stationery Expenses due but not paid 300, Capital Fund 70,500.
2. Subscription of Rs. 3,000 is receivable for 2005 – 06.
3. Entrance Fees and Membership Fees are to be treated as capital receipts in full.
4. Provide depreciation on Furniture @ 10% p.a.
5. You are required to prepare Income and Expenditure account for the year ended 31 – 3 – 2006 and
Balance sheet as on that date.
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OMTEX CLASSES 09

Q7. From the following Trial Balance, Prepare Final Account for the year ended 31st December,
2002
Trial Balance
Debit Balance Rs. Credit Balance Rs.

Land and Building 30, 000 Sundry Creditors 49, 000

Sundry Debtors 45, 000 Reserve for Bad debts 1, 000

Machinery 25, 000 Capital: Uma 20, 000

Purchases 48, 000 Priya 25, 000

Opening Stock ( 1- 1- 2002) 25, 000 Unpaid Wages 1, 000

Wages 23, 000 Sales 1, 31, 000

Factory Expenses 8, 000 Discount 1, 300

Royalties 1, 800

Carriage Inward 1, 300

Carriage Outward 1, 700

Office Expenses 2, 550

Bad debts 750

Furniture 3, 000

Drawing: Uma 3, 000

Priya 2, 000

Cash at Bank 4, 300

Cash in hand 500

Advertisement( for 6 year) 3, 000

Insurance 400

2, 28, 300 2, 28, 300

ADJUSTMENTS:

a. Closing stock on 31st December, 2002 was Rs. 18500


b. Goods worth Rs. 3, 000 taken by Uma for his personal use were not entered in the books of accounts.
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OMTEX CLASSES 09
c. Fire occurred in the godown and goods worth Rs. 5, 000 were destroyed, but Insurance Company
admitted Claim for Rs. 3, 500.
d. Write off Rs. 1, 000 for bad debts and create bad debts reserve on debtors at 5%
e. Insurance is paid for the year ended 31st March 2002.
f. Charge depreciation at 2.5% on Land and Building 10% on Machinery, 15% on Furniture.