Enrollment No: ___________

R.H.PATEL INSTITUTE OF MANAGEMENT, GOBLAJ

MBA SEM-I MID-TERM EXAMINATION - 2013
SUBJECT 2810001: ACCOUNTING FOR MANAGERS

DATE: 18/11/2013

MARKS: 70
TIME: 10 a.m to 1 p.m
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Q-1 Mr. Rajendra runs business. His trial balance as on 31st March 2004
was as follows:

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Particulars

Dr

Cr

Capital

1250000

Drawings

125000

Purchase

1962000

2590000

220000

22000

55000

25000

295000

57500

Discount

25000

Dividend

32000

Bad debts

19500

15000

265000

64500

26000

Investment

205000

Furniture

220000

Creditors

200000

Salesmens commission

15000

Office expenses

72500

Sales tax

122000

Cash

629000

Sales
Opening stock
Returns outward
Fright inward
Discount
Salaries
Commission

Provision for doubtful debt

Debtors
Purchase Subsidies
Return Inward

4256000

4256000

Additional Information:
1) Mr. sharma purchased running business of Mr. Gour for Rs.590000 on
31st March, 2004. He took over stock of Rs. 325000, debtors Rs. 265000,
furniture Rs. 75000 and creditors Rs. 75000. No entry was passed.
2) Closing stock as on 31st March 2004 was not valued. Mr. Sharma earned
a uniform rate of gross profit of 25% on net sales.
3) Provision for doubtful debts is to be maintained at 7.5% on debtors.
4) Sales includes sale of old furniture for Rs. 16000 on 1 st October,
2003(WDV of such furniture on 1st April 2003 was Rs. 26000)
5) Purchase includes purchase of furniture on 1st January, 2004 worth Rs.
45000.
6) Furniture was to be depreciated by 10% p.a.
You are required to prepare Final Accounts.
Q-2 A) A firm purchases a lease for 5 years for RS. 40000. It decides to write
off depreciation on the Annuity Method charging the rate of interest at 5% per
annum. The annuity table shows that annual amount necessary to write off RS.1
for 5 years at 5% is 0.230975.

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Q-2 B) What is Depreciation?? Explain causes of Depreciation.

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OR
Q-2 A) A mine was purchased for RS. 2000000 on 1st Jan. 2000. And it was
estimated content of being 100000 tones. The actual quantity was 2001- 20000
tones, 2002- 25000 tones and 2003- 30000 tones. You are required to prepare a
Mine Account using Depletion Method of depreciation for the above said years.
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Q-2 B) What is Accounting?? Explain Internal users and External users of
accounting statement.
Q-3 A) Journalize the following transitions:

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1) Started business with cash Rs.5,00,000; Building Rs.8,00,000; Furniture

Rs.50,000; Computer Rs.32,000 and Car Rs.2,50,000.
2) Goods costing Rs.2,000 distributed as free samples.

3) Cash withdrawn by proprietor for personal use Rs.12,000.

4) Withdrawn from bank for office expenses Rs.2,000.

5) Goods burnt by fire Rs.2,000. Insurance company passed a claim of

Rs.1,500.
6) Purchased goods worth Rs.2,000 from Anand Brothers at 10% trade
discount.
7) Purchased goods worth Rs.10,000 from Anand Brothers at 10% trade
discount and 5% cash discount. Paid half the amount by cheque.
Q-3 B) Prepare store Ledger Account by LIFO:

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Opening stock on 1st April 400 Units of Rs. 50 per unit.

Date
2 April
Purchased 100 units @ Rs.55 each
6
Issued 400 units
10
Purchased 600 units @ Rs. 60 each
13
Issued 500 units
20
Purchased 500 units @ Rs. 65 each
25
Issued 600 units
10 May
Purchased 800 units @ Rs. 70 each
12 May
Issued 500 units
13
Issued 200 units
15
Purchased 500 units @ Rs. 75 each
17
Issued 400 units
25
Purchased 300 units @ Rs. 80 each
Q-4 A) A co. Ltd whose accounting year is a calendar year purchased on 1st
April, 2005 machinery costing 27500 and spent 2500 on its installation. It
purchased further machinery on 1st Oct, 2005 costing Rs. 20000. The company
purchased on 1st July, 2006 another machine costing Rs. 10000.
On 1st January, 2007 one-third of the machinery which was installed on
1st April, 2005 became obsolete and it was sold for Rs. 3000.
Show how the machinery account would appear in the companys
ledger upto 31-12-2007, Depreciation at 10% p.a. at fixed installment.

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OR
[P.T.O]

Q-4 A) On 1st April, 2005 XYZ purchased machinery for RS. 200000. On 1 st
October, 2006 the machinery purchased on 1st April, 2005 having become
obsolete, was sold off RS. 90000. On 1st October, 2007 new machinery was
purchased for RS. 250000 while the machinery purchased on 1st October, 2005
was sold for RS. 85000 on the same day.
The firm provides depreciation on its machinery @ 10% per annum
on original cost on 31st March every year.
Show Machinery Account, Provision for Depreciation Account
and Depreciation Account for the period of three years ending 31st March,
2008.

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Q-5 Write Short Notes: (Any 3 out of 4)

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A)

Difference between SLM & WDV method

B)

Accounting, An Art or Science??

C)

Separate entity, Money Measurement concept

D)

Difference between FIFO & LIFO

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