UNIT TEST /2017 (COMMERCE)

Subject- ACCOUNTANCY
CLASS XI
Time: 1Hours Max marks=20
General Instructions:-All questions are compulsory. Calculator is not allowed.
1. Define accounting . 1
2. Write short notes with example on the following: ( any two) 2
i) Stock ii) voucher iii) Revenue iv) transaction v) gain
3. Explain any one of the following 2

i) Money measurement concept ii)Going concern assumption iii) conservatism iv)Dual aspect
concept
4. What are the different types of bills of exchange? 2
5. Prepare the accounting equation on the basis of the following : 4
i)Started business with cash and machinery with Rs 40,000 and 20,000 respectively.
ii)Purchase goods for cash Rs 30,000 and on credit Rs 20,000
iii) sold goods (costing Rs 10,000) at a profit of 25% on cost to Rohan.
iv)Payment made to creditors in full settlement of Rs 18,500.
6. Prepare purchases from the following transaction in the books of Radhey for the month of October 2016. 3
2016
Oct 1 Commence business with cash Rs 1,00,000 and machinery Rs 50,000.
Oct 3 Purchase goods from Mohan Rs 30,000 at 15% trade discount.
Oct 5 Goods sold to Ramesh worth 15,000 and 40% received immediately.
Oct 7 Paid salary and wages Rs 3,500 and 2,600 respectively.
Oct 15 Goods worth Rs 2,400 and cash Rs 3,000 withdrew for personal use.
Oct 20 Paid to Mohan Rs 25,500 for full settlement.
Oct 22 Salary paid to Ramesh Rs 2,500.
Oct 25 Salary not yet paid Rs 1,500.
Oct 28 Depreciation charge on machinery @10% .
Oct 30 Goods worth Rs 3,400 and cash Rs 2,800 given as Donation

7.Prepare double column cash book from the following information for the month of Aug 2017 :- 6
2017
Aug 1 Cash in hand Rs 70,000
Cash at bank Rs 5,500
Aug 5 goods sold to Ramesh and cheque received of rs 5,000.
Aug 7 Bought goods from Ganesh worth Rs 6,000.
Aug 10 deposited into bank Rs 4,500.
Aug 14 Salary paid by cheque Rs 7,700.
Aug 18 Cheque receive from shyam on Aug 5 deposited into bank.
Aug 20 withdrew from bank Rs 3,500 for office use.
Aug Rent received Rs 1,550.
Aug 28 withdrew Rs 2,500 in cash and 3,000 in goods for domestic use.
Or,
8.Prepare bank reconciliation from the following particulars:
Bank balance as on 31.10. 2016 as per cash book is Rs 4,550
i)cheques issues of Rs 12,400 but out of these one the cheque of Rs 2,500 were presented for payment on 2 nd
November.
ii)Dividend collected by bank but not debited in cash book Rs 1,200
iii) cheques paid into bank of Rs 6,800 but of cheque Rs 1,500 credit in pass book till 31.10.2016.
iv)Payment side of the cash books has been undercast by Rs 150.
v)Bank charges debited in the pass book but not entered in the cash book Rs 30.

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 UNIT TEST /2017 (COMMERCE)
Subject- ACCOUNTANCY
CLASS XII
Time: 1Hours Max marks=20
General Instructions:-All questions are compulsory. Calculator is not allowed.
1. What is the maximum number of partners that partnership firm can have? Name the Act that provides
for the maximum number of partners in a partnership firm. 1
2. A, B and C were partners in a firm sharing profit in the ratio of 3:2:1. They admitted D as a new partner
for future share in the profits, which he acquired l/16th from B and 1/16th from C. Calculate the new
profit sharing ratio of A, B, C and D. 1
3. Nusrat and Sonu were partners in a firm sharing profits in the ratio of 3 : 2. During the year ended
31-3-2017 Nusrat had withdrawn Rs15,000. Interest on her drawings amounted to Rs300. Pass necessary
Journal entry for charging interest on drawings assuming that the capital of the partners were fixed. 1
4. A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : l. On 31-3- 2017 their Balance
Sheet was as follows: Balance Sheet of Ashok, Bhim and Chetan as on 31-3-2017 7

Liabilities Amount Assets amount

Creditors 84,000 Bank 17,000

General reserve 21,000 Debtor 23,000
Capital : Stock 1,10,000
A 60,000 Investment 30,000
B 40,000 Furniture 10,000
C 20,000 Machinery 35,000

2,25,000 2,25,000

On the above data D was admitted as a new partner and it was decide that:
(i) The new profit sharing ratio between A, B, C and D will be 2:2:1:1.
(ii) D will bring Rs. 1,00,000 as his share of capital in cash.
(iii) Goodwill of the firm was valued Rs90,000 and D brought his share of goodwill premium in cash.
(iii) The market value of investment was Rs24,000.
(iv) Machinery will be reduced to Rs29,000.
(v) A creditor of Rs3,000 was not likely to claim the amount and hence to be written- off.
Prepare Revaluation Account, partner's Capital Accounts and the Balance Sheet of the reconstituted
firm.
5. Give the meaning of forfeiture of shares. 1
6. What is meant by 'Calls-in-Arrears? 1
7. At what rate is interest paid by the company on calls-in-advance and on calls in arrear as per Articles of
Association? 1
8. Joy Ltd. issued 1,00,000 equity shares of Rs10 each. The amount was payable as follows:
On application - Rs3 Per share, On allotment - Rs4 per share, On first call -1 and balance on- final call
Applications for 95,000 shares were received. The shares were allotted to all the applicants.
All the money were duly received except , Sonam to whom 500 shares were allotted failed to pay allotment
,first and final call money and Gautam holding the 750 shares on first and final call. 7
Or,

9. Hanif and jubed were partners in a firm: sharing profits in the ratio of their capitals. On 31st March,
2017 their Balance Sheet was as follows:
Balance Sheet of Hanif and jubed as on 31st March, 2017

Liabilities Amount Assets Amount

Creditors 1,50,000 Bank 2,00,000

General reserve 75,000 Debtor 3,40,000
Workmen comp reserve 3,00,000 stock 1,50,000
Capital: furniture 4,60,000
Hanif 10,25,000 machinery 9,00,000
Jubed 5,00,000

20,50,000 20,50,000

On the above date the firm was dissolved:

(i) Debtors were realised at a discount of 5%,
(ii) Stock was sold for Rs 1,65,000.
(iii) Furniture was taken over by jubed for Rs 1,35,000.
(iv) Machinery was sold as scrap for Rs74,000.
(v) Creditors were paid in full.
(iv) Expenses on realisation Rs 8,000
Prepare Realisation Account

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 FIRST SESSIONAL TEST /2016
B. COM IIIRD SEMESTER (Speciality)
SUBJECT- ADVANCE D FINANCIAL ACCOUNTING
FULL MARKS-20 TIME ALLOWED- 1 HOUR

ANSWER THE FOLLOWING QUESTIONS:-

1. Choose the correct one from the different options to make the statement true:- 1x4=4
(a) Banking Company cannot grant loan to any of its Customer/Shareholders/Directors.
(b) Banking companies are governed by Banking Regulation Act-1949, section 6/2/5.
(c) In case of Marine Insurance the provision against unexpired risk is 95%/50%/100%
(d) Investment account is a Personal/Nominal/Real account
OR,
2.The revenue account of LIC shows its life fund at 31st March 2015 as Rs. 54,59,000 before
taking into consideration the under mentioned items:-
4
I Consideration for annuities granted Rs. 30,000 IV Re-insurance premium Rs.36,000
II Policy renewals fees Rs. 2,000 V Bonus in reduction of premium Rs. 20,000
III Agents allowance Rs. 25,000 VI Outstanding premium Rs.42,000
Show the correct Life Fund at the end of 2014-15.

3. Write short notes on any two of the following- 3x2=6

(a) Special features of Investment Accounts (b) Bonus in Reduction of Premium
(c)Non-Banking Assets.
OR,
4. Mr. Investors furnishes the following details relating to his holding in 6% Government
Bonds. 6
1.1.2015 Opening Balance, Face Value 1.10.2015 Purchase 50 units at Rs.98
Rs. 60,000- cost Rs. 59,000 cum-interest
1.3.2015 100 units purchased 1.11.2015 Sold 200 units ex-interest at Rs. 99
ex-interest at Rs.98 out of original holding
1.7.2015 Sold 200 units ex-interest out of original holding at Rs.100
Interest dates are 30th September and 31st March. Mr. Investor closes his books every 31st December.
Show the Investment Account as would appear in his books.
5.What do you mean by the term Insurance? Mention different types of Insurance? How is profit or
surplus ascertained and distributed by Life Insurance Company? 3+4+3=10

6. From the following information prepare the Profit And Loss Account of Vijaya Bank
Limited, period ended 31st March 2016 10
RS. in Thousand RS. in Thousand
Interest on loan 300 Interest on saving bank deposit 87
Interest on fixed deposit 275 Postage telegram and stamps 10
Commission 10 Printing and stationary 20
Exchange and brokerage 20 Sundry expense 10
Salaries and allowances 150 Rent 15
Discount on bill (gross) 152 Taxes and license 10
Interest on cash credit 240 Audit fees 10
Interest on temporary overdraft in 30 Directors fee 30
current account
Additional information:-
I Rebate on bill discounted Rs. 30,000
II Provision for bad debts Rs. 30,000
III Provision for income tax to be made 35%
 IV Interest of Rs 4000 on doubtful debts was wrongly credited to interest on loan account
V Total investment in government and other securities Rs 10,00,000
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FIRST SESSIONAL TEST /2016

B. COM VTH SEMESTER (Speciality& General) SUBJECT- MANAGEMENT ACCOUNTING
FULL MARKS-20 TIME ALLOWED- 1 HOUR
ANSWER THE FOLLOWING QUESTIONS:-

1. Choose the correct one from the different options to make the statement true:- 1x4=4
(a) The term Management accounting was first used in 1910/1939/1950
(b) Current assets include Trade Investment/Machinery/Sundry Debtors.
(c) Cash flow statement is useful for Long Term/Medium Term/Short Term financial analysis
(d) A flexible Budget requires careful study and classifies expenses into Past and Current
Expenses/Administrative, Selling and Factory Expenses/Fixed, Semi-Variable and
Variable Expenses
OR,
2. Define Cash Flow Statement. Mention the advantages of Cash Flow Statement. 2+2=4

3. Write short notes on any two of the following- 3x2=6

(a) Characteristics of good Budget (b) objectives of Funds Flow Statement
(c) Limitations of Management Accounting
OR,
4. The Expenses Budgeted for the Production of 10,000 Units in a Factory are furnished below: 6
Per Units Per Units (Rs)
(Rs)
Material 70 Labour 25
Variable Overhead 20 Fixed Overhead (Rs.1,00,000) 10
Variable Expenses (Direct) 5 Selling Expenses (10% Fixed) 13
Distribution 7 Selling and Administrative 5
Expenses(20%Fixed) Expenses(Rs.50,000)
Prepare a Budget for the Production of 6,000 UNITS,
5. What is Management Accounting? State the Objectives of Management Accounting. Distinguish between
Management Accounting and Cost Accounting. 3+4+3= 10.

OR,

6. From the following information, prepare Cash Flow Statement for Y Ltd. 10
Liabilities 2014 2015 Assets 2014 2015
(in Rs.) (in Rs.) (in Rs.) (in Rs.)
Equity share capital 2,00,000 3,00,000 Bank 45,000 ----
Preference share capital ---- 1,00,000 Cash 5,000 ----
Profit & Loss A/C 1,00,000 2,00,000 Stock 1,00,000 1,70,000
Provision for Taxation 30,000 50,000 Bills Receivable 50,000 1,00,000
Bills Payable 50,000 70,000 Fixed Assets 4,00,000 7,00,000
Bank Overdraf --- 1,00,000
Loan from Rahul 20,000 1,50,000
loan 2,00,000 -----
Total 6,00,000 9,70,000 Total 6,00,000 9,70,000
Additional information:-
(i) Net profit for the year afer charging Rs.50, 000 as depreciation was Rs. 1, 50,000.
(ii) Dividend paid on shares Rs. 50,000.
(iii) Tax provision created during the year amounted to Rs. 60,000
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FIRST SESSIONAL TEST /2017

B. COM FIRST SEMESTER
SUBJECT- FINANCIAL ACCOUNTING
FULL MARKS-20 TIME ALLOWED- 1 HOUR

Answer to the Question No 1and 2 & Any One from the rest:-
1. (a) FILL IN THE BLANKS: 1X2=2

(i) Total amount to be paid by the buyer under higher purchase system is called price.

(ii) Royalty paid on sales is debited to account.

1(b) WRITES TRUE OR FALES: 1X2=2

(i) Cost of goods sold on Higher Purchase is transferred to Higher Purchase Trading Account.

(ii) Royalty account is a Real Account.

2 DISTINGUISH BETWEEN (ANY ONE WITH AT LEAST THREE POINTS OF EACH ITEM):- 6

(a) HIGHER PURCHASE SYSTEM VS INSTALMENT PURCHASE SYSTEM

(b) ROYALTY VS RENT

3. What do you mean by higher purchase system? Distinguish between Higher Purchase System and
Ordinary Credit Sales. Mention two rights of each of higher seller and higher purchaser as laid down in
the higher purchase act, 1972. 3+3+2+2=10

Or,

A motor car was purchased on 1st April 2012 under higher-purchase system. The payments to be
made Rs.20000 down and the balance including interest @5% p.a as follows:

Date: 31-3-2013 31-3-2014 31-3-2015

Amount: Rs 60,000 Rs 77,500 Rs 84,000

The buyer depreciated the motor car @15% p.a under diminishing balance method. Ascertain
Cash Price of the Motor Car and prepare Motor Car Account and Higher Vendor Account in the books of
higher purchaser. 4+3+3=10

4. Explain the following terms in relation to Royalty account (ANY TWO) 5X2=10

(A)Minimum Rent, (B) Short workings, (C) strike and lock out, (D) Recoupment of short workings

OR,

Meghna coal Ltd. took a lease of coal mine for ten years on a royalty of 3 per ton of coal raised.
The minimum rent was fixed at Rs. 13000 and there was no any provision of right to recoup short
workings. The coal raised was as follows:

Year: 2012 2013 2014 2015

Output (in tons) 3000 4000 6000 2000

 Pass journal entries in the books of Meghnana Coal Ltd. 10

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FIRST SESSIONAL TEST /2017

B. COM VTH SEMESTER (Speciality& General) SUBJECT- MANAGEMENT ACCOUNTING
FULL MARKS-20 TIME ALLOWED- 1 HOUR

Answer to the Question No 1and 2 & Any One from the rest:-
1. (a) FILL IN THE BLANKS: 1X2=2
(i) Management Accounts helps in of data. (Interpretation)
(ii) Budgetary Control is a system of controlling. (Costs)

1. (b) WRITES TRUE OR FALES: 1X2=2

(i) Margin of Safety = Fixed Expenses / profit Volume Ratio
(ii) Flexible Budget not changes with the level of activity.

2 DISTINGUISH BETWEEN (ANY TWO):- 2x3= 6

(i) Management Accounting VS Financial Accounting
(ii) Budget VS Forecast
(iii) Marginal Costing VS Absorption Costing
(iv)
3. How Management accounting does help Planning and control functions in an organization?
Mention the Limitations of management accounting. 4+4+2=10

4. Explain the following terms in relation to Marginal Costing (ANY TWO) 2.5X4=10
(A) Contribution, (B) Profit volume ratio, (C) Break even point, (D) Margin of Safety
OR,
From the following data given below, calculate-
(e) Contribution, (ii) Profit volume ratio, (iii) Break even point,
(iv) Sales to earn a profit of Rs. 300000

Fixed cost Rs 1,80,000

Variable cost per unit;-
Direct material Rs.6; Direct labour Rs 3; Direct Overhead-100% of direct labour
Selling price per unit Rs. 15
5. What is a Cash Budget? What are its advantages? How is it prepared?
OR,
From the following estimates of KJ Ltd., prepare sales overhead Budget:
Advertisement Rs. 5,000
Salaries of sales department Rs.10,000
Expenses of sales department Rs.3,000
Counter salesmens salaries and dearness allowance Rs.12,000
Counter salesmens are allowed commission @2% on their sales.
Travelling salesmens are allowed commission and expenses@10% and 5% on their sales
respectively.
The estimated sales during the period were as under:
Area Counter Sales Sales by Travelling Salesmen
(RS) (RS)
I 1,60,000 20,000
II 2,40,000 30,000
III 2,80,000 40,000
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FIRST SESSIONAL TEST /2017

B. COM IIIRD SEMESTER (Speciality)
SUBJECT- ADVANCE D FINANCIAL ACCOUNTING
FULL MARKS-20 TIME ALLOWED- 1 HOUR

ANSWER THE FOLLOWING QUESTIONS:-

1. FILL IN THE BLANKS: 1x4=4

(i) Banking Company cannot grant loan to any of its ..Directors.
(ii) Banking companies are governed by Banking Regulation Act-1949, section .5.
(iii) Brokerage is.. in the cost of investment in the books of purchaser of investment. Added
(iv) Investment account is a ..Real account

2. Write short notes on any two of the following- 2x3=6

(b) Special features of Investment Accounts (b) Bonus in Reduction of Premium
(c)Non-Banking Assets.
OR,

3. Mr. Investors furnishes the following details relating to his holding in 6% Government
Bonds. 6
1.1.2016 Opening Balance, Face Value 1.10.2016 Purchase 50 units at Rs.98
Rs. 60,000- cost Rs. 59,000 cum-interest
1.3.2016 100 units purchased 1.11.2016 Sold 200 units ex-interest at Rs. 99
ex-interest at Rs.98 out of original holding
1.7.2016 Sold 200 units ex-interest out of original holding at Rs.100
Interest dates are 30th September and 31st March. Mr. Investor closes his books every 31st December.
Show the Investment Account as would appear in his books.

4.From the following information prepare the Profit And Loss Account of Vijaya Bank Limited,
period ended 31st March 2017 10
RS. in Thousand RS. in Thousand
Interest on loan 300 Interest on saving bank deposit 87
Interest on fixed deposit 275 Postage telegram and stamps 10
Commission 10 Printing and stationary 20
Exchange and brokerage 20 Sundry expense 10
Salaries and allowances 150 Rent 15
Discount on bill (gross) 152 Taxes and license 10
Interest on cash credit 240 Audit fees 10
Interest on temporary overdraft in 30 Directors fee 30
current account
Additional information:-
I Rebate on bill discounted Rs. 30,000
II Provision for bad debts Rs. 30,000
III Provision for income tax to be made 35%
IV Interest of Rs 4000 on doubtful debts was wrongly credited to interest on loan account
V Total investment in government and other securities Rs 10,00,000

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 SECOND SESSIONAL TEST /2017
B. COM IIIRD SEMESTER (Speciality)
SUBJECT- ADVANCED FINANCIAL ACCOUNTING
FULL MARKS-20 TIME ALLOWED- 1 HOUR
ANSWER THE FOLLOWING QUESTIONS:-
1. What are the statutory and subsidiary books maintained by life insurance
company? How is profit or surplus ascertained and distributed by Life
Insurance Business? 3+3+4=10
OR,
The Young India Life Insurance limited had a paid up capital of Rs. 2, 50,000
divided into 25,000 shares of Rs. 10 each. The net liability on all contracts in
force as on 31-03-1017 was Rs. 22, 50,000 and on 31-03-2016 this liability
was Rs. 20, 00,000. From the following figures extracted from its books for
the year ended 31-03-2017. Prepare Revenue Account. The company has
paid an interim bonus of Rs. 1,10,000 and 20% of the surplus is to be
allocated to shareholders, 10% to the Catastrophe Reserve and the balance
being carried forward.
Rs. Rs.
Life fund 24,50,000 Commission 54,000
Premium less re-insurance premium 13,80,000 Surrenders 85,000
Interest, dividend and rents 7,50,000 Surplus on revaluation of reversion 4,000
Fines and fees 4,000 Re-assurance irrecoverable 1,000
Income tax 1,18,000 Claim less reinsurance claim 8,90,000
Management expenses 1,75,000 Consideration for annuities granted 45,000
Annuities paid 10,000

2. What do you mean by reserve for unexpired risk? Why is it created in

general insurance? What provisions should be made in regards to creating
reserve for unexpired risk in insurance business. 2+4+4=10
OR,
From the following figures taken from the books of New Asia Insurance Co. Ltd. Doing
fire underwriting business, prepare Revenue Account and profit and loss account for
the year 2016-17
Rs.000 Rs.000
Fire Fund for the year 2016-17 9,30,000 Commission on Re-insurance ceded 48,016
General reserve 4,50,000 Advance Income tax Paid 2,50,000
Investment 36,00,000 Agents Balance(Dr.) 20,000
Commission on direct business 2,99,777 Outstanding Premium 22,300
Commission on re-insurance accepted 60,038 Claim intimated but not paid 1-4-2017 60,000
Premium 27,01,533 Expenses on management 4,31,947
Claim paid 6,02,815 Audit fee (General) 36,000
Share capital divided into Rent and Tax (General) 5,804
Equity Shares of Rs. 100 each 9,00,000
Additional Reserve 1-4-2017 3,30,000 Rent (General) 67,500
Profit and loss account (Cr) 75,000 Income from Investment 1,53,000
Re-insurance Premium 1,12,525 sundry Creditors 22,500
Claim recovered from Reinsurers 21,119 Cash in hand and Bank Balance 1,82,462
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 SECOND SESSIONAL TEST /2017
B. COM VTH SEMESTER (Speciality& General) SUBJECT- MANAGEMENT ACCOUNTING
FULL MARKS-20 TIME ALLOWED- 1 HOUR

ANSWER THE FOLLOWING QUESTIONS:-

1. What do you mean by Cash Flow Statement? Mention the classification of activities as
prescribed in AS-3 for preparation of Cash Flow Statement and give three examples of
each such class of activities. Explain clearly the difference between Funds Flow Statement
and Cash Flow Statement. 2+4+4=10
OR,
From the following information, prepare Funds Flow Statement for Y Ltd
Liabilities 2016 2017 Assets 2016 2017
(in Rs.) (in Rs.) (in Rs.) (in Rs.)
Share Capital 2,00,000 2,50,000 Land and building 2,00,000 1,90,000
General Reserve 50,000 60,000 Machinery 1,50,000 1,69,000
Profit & Loss A/C 30,500 30,600 Stock 1,00,000 74,000
Bank Loan (Long Term) 70,000 ---- Sundry Debtors 80,000 64,200
Sundry Creditors 1,50,000 1,35,200 Cash 500 600
Provision for Taxation 30,000 35,000 Bank --- 8,000
Goodwill --- 5,000
Total 5,30,500
5,10,800 Total 5,10,800
5,30,500
i. Dividend of Rs 23000 was paid
ii. The following assets of another company were purchased for a consideration of
Rs. 50000 paid for in share: Stock-Rs. 20,000 and Machinery Rs. 25,000
iii. Machinery was further purchased for Rs. 8,000
iv. Depreciation written off: machinery Rs. 12,000
iv. Income Tax provided during the year Rs. 33,000
v. Loss on sale of machinery Rs. 200 was written off to General Reserve

2. Define Marginal Costing and discuss its contributions to the management

in decision-making. Mention the limitations of Marginal Costing. 2+5+3=10
OR,
An analysis of Sultan Manufacturing Co. led the following information:-
Cost element Variable cost Fixed cost
% of sales Rs.
Direct Material 32.8 ----
Direct Labour 28.4 ----
Factory Overhead 12.6 1,89,900
Distribution Overhead 4.1 58,400
General administration overhead 1.1 66,700
Budgeted Sales are Rs. 18,50,000. You are required to determine:
i. The break even sales volume
ii. The profit at the budgeted sales volume
iii. The profit if actual sales:
a. Drop by 10%
b. Increase by 5% from budgeted sales
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 SECOND SESSIONAL TEST /2017
B. COM FIRST SEMESTER
SUBJECT- FINANCIAL ACCOUNTING
FULL MARKS-20 TIME ALLOWED- 1 HOUR

ANSWER THE FOLLOWING QUESTIONS:-

1. Write short notes on:- (any One) 1x4=4

i. Goods in transit Vs Cash in transit

ii. Distinguish between Branch accounts and Departmental Accounts.

2. What do you mean by Branch Accounting? Mention different types (classes) of Branches
from the accounting pint of view. 2+4=6

OR,
Goods invoiced by Head Office to its Branch at Duliajan at cost plus 25%. All expenses of
Branch paid by Head Office, Prepare Branch Account
Rs. Rs.
st
Closing stock (invoice Price) 31 March 2017 9,000 Credit sales 20,000
Cash received from Debtors 18,950 Cash Sales 8,750
Opening Stock (invoice Price) 1st April, 2016 12,000 Expenses paid by Head Office 5,200
Goods received from Head Office (invoice Price) 15,000 Debtors on 31st March 2017 4,580
Goods in transit from Head Office on 31st March 2017 900

3. Define Departmental Accounts. What are its features? Explain the usefulness of
preparing departmental accounts. 2+4+4=10

OR,
From the following particulars of a business having three Departments,
You are asked to Prepare Departmental Trading Account:-
Department Purchases Opening Stock Closing Stock
A 1,500 Units 200 Units 100 Units
B 1,000 Units 300 Units 160 Units
c 2,000 Units 150 Units 200 Units
Additional information:-
i. Purchases were made at a total cost of Rs. 1,84,000
ii. The percentage of Gross Profit on turnover is same in each case
iii. Purchase and Sales price are constant for last few years
iv. Department Selling price Per Unit (Rs)
A 40
B 50
c 60

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