OMTEX CLASSES

“THE HOME OF SUCCESS”

ACCOUNTS MODEL PAPER FOR BOARD EXAMINATION

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

A. Answer the following. (5)

1. What is an average profit?
2. What is capital employed?
3. What is normal profit?
4. What is super profit?
5. Name two method of valuation of goodwill?

B. Write word/term/phrase which can substitute each of the followings: (5)

1. A person who draws the bill.

2. A person on whom the bill of exchange is drawn.
3. A person entitled to receive the amount of bill of exchange.
4. The date on which period of the bill gets expired.
5. Three extra days allowed by law to the drawee over and above the period of bill to enable him
to make payment of the bill in time.

C. Match the pairs. (5)

A B
1. Power & fuel / gross profit 1. List of balances of all ledger accounts.
2. Bad debts 2. Assets side of Balance sheet
3. Reserve Fund 3. Accounts showing net profit or loss
4. Trial Balance 4. Trading account credit side
5. Prepaid or Unexpired expenses 5. Trading account debit side
6. Liabilities side of Balance Sheet
7. Sundry debtors

D. Select the most appropriate alternative from those given below: (5)

1. Interest on the capital of partner is debited to _______________

a. Trading account
b. Profit and loss account
c. Partner‟s capital account
d. Partner‟s current account

2. Computer is a / an ______________
a. Mechanical device
b. Automation device
c. Electronic device
d. Electric device
 OMTEX CLASSES
“THE HOME OF SUCCESS”
ACCOUNTS MODEL PAPER FOR BOARD EXAMINATION

3. Joint venture is a ________________

a. Trading concern
b. Non – trading concern
c. Religious concern
d. Public concern

4. A donation received for a specific purpose is a _______________

a. Capital receipt
b. Revenue receipt
c. Liability
d. Asset

5. A bill drawn and accepted on 12th June 2007 for two months will be due for payment on
___________
a. 12th August, 2007
b. 15th August, 2007
c. 16th August, 2007
d. 14th August, 2007

E. State True / False with reasons. (Any Two) (5)

1. Under fixed capital method for each partner two accounts are maintained.
2. Under fixed instalment method depreciation is charged on the diminishing value of the asset.
3. Interest on partner‟s drawings is debited to Profit and loss appropriation account.

F. Prepare a bill of exchange from the following information: (5)

1. Drawer : Mrs. Archana Patil, Vikram Nagar, Patan.

2. Drawee : Mrs. Nalini Maniyar, Jalaram Krupa, Mulund.
3. Payee : Mrs. Sugandhi Ghatkar, Mangala Yog, CIDCO, Aurangabad.
4. Amount : Rs. 17,575.
5. Period : 60 days.
6. Date of Bill : 28th December, 2007.
7. Accepted on : 2nd January, 2008.
8. Accepted for : 90 days.
 OMTEX CLASSES
“THE HOME OF SUCCESS”
ACCOUNTS MODEL PAPER FOR BOARD EXAMINATION

Q2. A Good – luck manufacturing Co. Ltd. Luck now purchased new machinery for Rs. 45,000 on 1st
January, 1975 and immediately spent Rs. 5,000 on its fixation and erection. In the same year on 1st
July additional machinery costing Rs. 25,000 was purchased. On 1st July 1977 the machinery
purchased on 1st January, 1975 became obsolete and was sold for Rs. 30,000. Depreciation was
provided for annually on 31st December at the rate of 10% per annum on Fixed Instalment method.
You are required to prepare Machinery Account for the period from 1975 to 1977.
(10)
OR

The average net profit expected in the business by ABC firm is Rs, 36,000 per year. The average
capital employed in the business by the firm is Rs, 2, 00,000. The Rate of interest expected from
capital invested in the business is 10%. The remuneration of the partners is estimated to Rs, 6,000
P.a. Calculate the value of goodwill based on 2years purchase of super profit.
(5)
AND

Explain the importance of computer in modern age. (5)

Q3. On 1st March, Ramchandra sold goods to Raman worth Rs. 8,000/- and Raman accepted the
Bill for Rs. 8,000/- at 3 months drawn by Ramchandra. Ramchandra discounted the bill with his
bank @ 6% p.a. On due date the bill was dishonoured and Raman requested Ramchandra to accept
Rs. 4,000/- immediately and draw upon him a new bill for the remaining amount at 3 months
together with an interest at 10% p.a. Ramchandra agreed. The second Bill was duly honoured. Give
Journal entries in the books of Ramchandra.

(12)
OR

Journalise the following transactions in the books of Mr. Ashok Agrawal.

a. The bank informed Mr. Ashok Agrawal that Kamlesh‟s acceptance for Rs. 12,000 sent to bank
for collection had been honoured and bank charges debited were Rs. 60.
b. Discharged Dr. Ashok Agrawal‟s acceptance to Mahesh for Rs. 15,250 by endorsing Prakash‟s
acceptance to Mr. Ashok Agrawal for Rs. 15,100.
c. Vishal renewed his acceptance to Mr. Ashok AGrawal for Rs. 11,200 by paying Rs. 6000 in cash
and accepting a fresh bill for the balance plus interest @ 12% p.a. for three months.
d. Dinesh who had accepted Mr. Ashok Agrawal‟s bill of Rs. 14,000 was declared bankrupt and
only 45% of the amount due could be recovered from his estate.
(12)
 OMTEX CLASSES
“THE HOME OF SUCCESS”
ACCOUNTS MODEL PAPER FOR BOARD EXAMINATION

Q4. Nagpurkar of Warud and Warudkar of Akola entered into joint venture to sent oranges to
M/s Modern Fruit Co., Amrutsar on their Joint risks for sale. They decided to share profits and
losses equally. Nagpurkar purchased oranges of Rs. 2,40,000and paid for transportation, packing
and insurance Rs. 70,000. Warudkar purchased oranges of Rs. 3,70,000 and paid for
transportation, packing and insurance Rs. 1,00,000. All the oranges were sold by M/s Modern
Fruit Co. For Rs. 10,00,000 from which company deducted Rs. 25,000 for expenses and 5%
commission on sale proceeds and remitted Rs. 5,00,000 to Warudkar and remaining amount to
Nagpurkar. The co – ventures closed their venture and settled their accounts. Prepare Joint
venture account, Warudkar account, M/s Modern Fruit co. Account in the books of Nagpurkar.

(12)

Q5. Mrs. Archana keeps her books on single entry system and gives the following
information.

Particulars 31-3-2006 31-3-2007

Cash at bank 5000 32000
Sundry debtors 25000 40000
Stock in trade 30000 50000
Furniture 20000 20000
Machinery 50000 5000
Bills payable 5000 5000
Sundry creditors 15000 20000

Additional information

Mrs. Archana withdrew from business Rs. 15,000 for personal use.

She further introduced fresh capital of Rs. 25,000. Depreciation is to be charged @10% p.a. on
Furniture and Machinery.

Prepare: (i) Statement of Affairs as on 31-3-2006

(ii) Statement of Affairs as on 31-3-2007

(iii) Statement of profit or loss for the year ending 31-3-2007.

(10)
 OMTEX CLASSES
“THE HOME OF SUCCESS”
ACCOUNTS MODEL PAPER FOR BOARD EXAMINATION

6. Dr. Narendra commenced practice in the month of April 2007. He prepared the
following Receipts & Payments Account for the year ended 31st March, 2008.

(16)

Receipts and Payments A/c For the year ended 31st March, 2008

Receipts Amount Payments Amount

To Cash 10000 By Furniture 1500

To Visits 7000 By Equipment 2500

To Sundry Receipts 400 By Drugs 2000

By Salaries 1000

By Rent 500

By conveyance 700

By Stationery 100

By Lighting 125

By periodicals 100

By Drawings 4375

By Balance c/d 4500

17400 17400

1. Rs 200 were to be received on account of visits.

2. Unpaid Salaries Rs. 200

3. 60% of conveyance is for private purposes.

4. Value of drugs on hand was estimated at Rs. 1,000.

5. Depreciate furniture and equipment by 10%

6. Prepare Income and Expenditure account and balance sheet.

 OMTEX CLASSES
“THE HOME OF SUCCESS”
ACCOUNTS MODEL PAPER FOR BOARD EXAMINATION

Q7. Given below is the Trial Balance of M/s Radha and Krishna on 31st March, 2004.
Partners share profit & losses in the ratio of 3:2 respectively. From the following
trial balance and additional information, prepare a Trading & Profit & Loss account
for the year ended 31st March, 2004 and a Balance sheet as on that date.

(20)

Trial Balance as on 31st March, 2004.

Particulars(Debit) Amount Particulars(Credit) Amount
Partner's Current A/c Partners Capital Account
Radha 16000 Radha 80000
Partner's Drawings Krishna 50000
Radha 15000 Partners Current Account
Krishna 10000 Krishna 10000
Purchases 120000 Sales 365000
Returns 2500 Returns 3500
Debtors 65000 Creditors 10000
Furniture 50000 RDD 2000
Premises 160000 Provident fund 65000
Bad debts 7500 Interest on P.F. Investment 6000
Discount 5000 Outstanding Salaries & Wages 6500
Provident Fund Contribution 15000 General Reserve 45003
Provident Fund Investment 60000
Salaries & Wages 15003
Opening Stock 80000
Cash in hand 18000
Royalties 4000
643003 643003

Adjustments:

1. The closing stock was valued at marked price Rs. 90,000 which is 20% above cost.
2. Write off bad debts Rs. 1500 and make a provision for doubtful debts @5% on debtors.
3. Provide 2% Reserve for discount on debtors and creditors.
4. Depreciate Furniture @ 15% and Premises @ 20%.
5. Interest on capital is allowed @ 10% p.a. and interest on drawings be charged @ 15% p.a.
6. Radha is entitled to receive rent for her premises at Rs. 300 p.m. where business is carried out and
Krishna is to be given 5% commission on „Gross Profit‟.