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ACCOUNTS TEST-merged PDF
ACCOUNTS TEST-merged PDF
(v) Payment for computer time to operate a new stores control system,
(vi) Wages paid to own employees for building the foremen‘s offices. Give reasons for your
classification.
(6 statements x 2 Marks= 12 Marks)
(b) HDC Ltd. issues 2,00,000, 12% Debentures of `10 each at `9.40 on 1st January, 2010. Under the
terms of issue, 1/5th of the debentures are annually redeemable by drawings, the first
redemption occurring on 31st December, 2010. Calculate the amount of discount to be written-
off from 2010 to 2014.
(4 Marks)
(c) Classify the following errors under the three categories – Errors of Omission, Errors of
Commission and Errors of Principle.
(i) Sale of furniture credited to Sales Account.
(ii) Purchase worth Rs. 500 from M not recored in subsidiary books.
(iii) Credit sale wrongly passed through the Purchase Book.
(iv) Machinery sold on credit to Mohan recored in Journal Proper but omitted to be posted.
(v) Goods worth Rs. 5000 purchased on credit from Ram recorded in the Purchase Book as
Rs. 500. (4 Marks)
(OR )
(b) From the following information, ascertain the value of stock as on 31.3.2017:
At the time of valuing stock on 31.3.2016 a sum of 60,000 was written off a particular item which was
originally purchased for 2,00,000 and was sold for 1,60,000. But for the above transaction the gross profit
earned during the year was 25% on cost
(c ) E Ltd. sends out its accounting machines costing 200 each to their customers on Sales or Return
basis. All such transactions are, however, treated like actual sales and are passed through the Day
Book. Just before the end of the financial year, i.e., on March 24, 2016, 300 such accounting machines
were sent out at an invoice price of 280 each, out of which only 90 accounting machines are
accepted by the customers 250 each and as to the rest no report is forthcoming. Show the Journal
Entries in the books of the company for the purpose of preparing Final Accounts for the year ended
March 31, 2016. (8+6+6=20 Marks)
Q3 (a) A. Ltd. obtain from B.S. Ltd. a lease of some coal-bearing land, the terms being a royalty of 15 per
ton of coal raised subject to a minimum rent of 75,000 p.a. with a right of recoupment of short-working
over the first four years of the lease.
Year Sales (Tons) Closing Stock (Tons)
From the following details, show (i) Short-working Account, (ii) Royalty Account and (iii) B.S. Ltd.
Account in the books of A. Ltd.
Dr. Cr.
Hari’s capital account - 76,690
Stock 1st January, 2017 46,800 -
Sales - 3,89,600
Returns inward 8,600 -
Purchases 3,21,700 -
Returns outward - 5,800
Carriage inwards 19,600 -
Rent & taxes 4,700 -
Salaries & wages 9,300 -
Sundry debtors 24,000 -
Sundry creditors - 14,800
Bank loan @ 14% p.a. - 20,000
Bank interest 1,100 -
Printing and stationary expenses 14,400 -
Bank balance 8,000 -
Discount earned - 4,440
Furniture & fittings 5,000 -
Discount allowed 1,800 -
General expenses 11,450 -
Insurance 1,300 -
Postage & telegram expenses 2,330 -
Cash balance 380 -
Travelling expenses 870 -
Drawings 30,000
5,11,330 5,11,330
(c) XL Ltd. invited applications for issuing 1,00,000 equity shares of `10 each at par. The amount
was payable as follows :
On Application `3 per share.
On Allotment `4 per share.
On First and Final Call `3 per share.
The issue was over-subscribed by three times. Applications for 20% shares were rejected and the
money refunded. Allotment was made to the remaining applicants as follows :
I 1,60,000 80,000
II 80,000 20,000
Excess money received with applications was adjusted towards sums due on allotment and first and
final call. All calls were made and were duly received except the final call by a shareholder
belonging to Category I who has applied for 320 shares. His shares were forfeited. The forfeited
shares were re-issued at ` 15 per share fully paid up.
Pass necessary Journal entries And prepare Balance sheet for the above transactions in the book of
XL Ltd (4+4+12 =20 Marks)
Q5 (a) Based on the following particulars show various assets and liabilities of Tirupati Ltd. Fixed
Assets turnover ratio 8 times
Capital turnover ratio 2 times
Inventory Turnover 8 times
Receivable turnover 4 times
Payable turnover 6 times
GP Ratio 25%
(b) The following are the transactions that took place between Rohan & Sunil during the half year ended
30th June, 2017:
Particulars `
I Balance due to Rohan by Sunil on 1 January, 2017 3,010
ii Goods sold by Rohan to Sunil on 7 January, 2017 4,430
iii Goods purchased by Rohan from Sunil on 16 February, 2017 6,480
iv Goods returned by Rohan to Sunil on 18 February, 2017 (out of 560
the purchases of 16 February, 2017)
v Goods sold by Sunil to Rohan on 24th March, 2017 3,560
vi Bill accepted by Rohan at 3 months on 22nd April, 2017 1,500
vii Cash paid by Rohan to Sunil on 29th April, 2017 2,500
viii Goods sold by Rohan to Sunil on 17th May, 2017 2,710
ix Goods sold by Sunil to Rohan on 22nd June, 2017 2,280
Draw up an account current to be rendered by Sunil to Rohan charging interest @ 10% per annum .
Q6 (a) The following was the Balance Sheet of ‘Kamal’ and ‘Rani’, who were sharing profits and losses in
the ratio of 2:1 on 31.12.2015:
Liabilities ` Assets `
Capital Accounts Plant and machinery 24,00,000
Kamal 20,00,000 Building 18,00,000
Rani 10,00,000 Sundry debtors 6,00,000
Reserves 18,00,000 Stock 8,00,000
Sundry creditors 8,00,000 Cash 2,00,000
Bills payable 2,00,000
58,00,000 58,00,000
They agreed to admit ‘Nisha’ into the partnership on the following terms:
(b) Rupali and Priya were both in need of temporary accommodation. On Nov.1, 2016 Rupali accepted
Priya’s draft for `30,000 for 3 monthsand Priya accepted Rupali’s draft for `25,000 for 3 months. Both the
bills were discounted and their respective banks for 29,000 and 24,200. Before maturity of the bill Priya sent
5,000 to Rupali for difference in accommodation bills. Rupali and Priya met their acceptances on the
aduedate. Record the transactions in the journal of Rupali and Priya. (12+8 =20 Marks)
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