GYANODAY JUNIOR COLLEGE

PRELIMINARY EXAM 2020-21

SUBJECT: Book Keeping & Accountancy DATE: 22nd March 2021

TIME : 1 to 4 pm MARKS: 80
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General Instructions:
1. Answers to every question should start on a new page.
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Q.1. (A) Select the correct option and rewrite the sentences. (5)

1) Wages paid for Installation of machinery should be debited to _______ Account.

(a) Machinery (b) Wages (c) Trading (d) Expense.

2) Excess of Income over Expenditure is called as __________

(a) Deficit (b) Surplus (c) Profit (d) Loss.

3) If asset is taken over by the partner ________ account is debited.

(a) Capital (b) Revaluation (c) Asset (d) Balance Sheet.

4) Death is a compulsory ________

(a) Admission (b) Retirement (c) Dissolution (d) Winding Up.

5) Bills payable is a _________

(a) Long term Loan (b) Current Liability (c) Liquid Asset (d) Net Loss.

(B) Complete the Sentences. (5)

1) Registration of partnership is _________ in India.

2) Receipt Payment Account falls under the category of ________ account.

3) Fixed Deposit accounts comes under ________ group.

4) Computer, Disk Drive, Monitors, Printers etc. are included in ___________.

 5) Dissolution expenses are credited to _____________ account.

(C) Write the Word/Phrase/Terms (5)

1) Amount of cash or goods withdrawn by partners from the business time to time.

2) Old Ratio – New Ratio =

3) Winding up of partnership business.

4) Returns on Investment in Shares.

5) A Statement showing the financial position of a concern on a particular date.

(D) Do you agree or disagree with the following statements (5)

1) Partnership is an Association of two or more persons.

2) ‘Not for Profit’ concerns do not prepare Balance Sheet.

3) Retiring Partner is called an outgoing partner.

4) A deceased partner is entitled to his share of general reserve.

5) The firm must be dissolved on the retirement of a partner.

Q 2. Mahesh and Kamlesh are partners in a business sharing profit and losses in the ratio
of 2:1 respectively. Their Balance Sheet as on 31st March 2019 is as follows. (10)

Balance Sheet as on 31st March 2019

Liabilities Amount Amount Assets Amount Amount
Capital A/c's Building 60,000.00
Mahesh 100000 Machinery 20,000.00
Kamlesh 48000 1,48,000.00 Furniture 19,000.00
Stock 60,000.00
Bills
Creditors 1,14,000.00 Receivable 15,200.00
Debtors 80,000.00
Bills Payable 40,000.00 Less: RDD 2,000.00 78,000.00
 Cash in Bank 67,800.00
Reserve
Funds 18,000.00

3,20,000.00 3,20,000.00

They admitted Kiran on 1st April 2019 as a Partner on the following terms.

1) Kiran will bring Rs.60,000/- as his capital for 1/4 th share in future profit and
Rs.24,000/- as goodwill which will be withdrawn by old partners.

2) Stock and Machinery are to be depreciated by 10%.

3) RDD is to be maintained at 5% on Debtors.

4) Building is to be appreciated by 20% and Furniture is revalued at Rs.20,000/-

Prepare Profit and Loss Adjustment Account, Partner Capital Account and Balance
Sheet of the New Firm

OR

Q 2. The Balance Sheet of Ram. Shyam & Ganshyam are partners in a business sharing
profit and losses in the ratio of 3:2:1 respectively. Their Balance Sheet as on
31st March 2019 is as follows. (10)

Liabilities Amount Assets Amount

Amount Amount
Capital A/c's Building 60,000
Ram 1,20,000
Shyam 90,000 Investment 1,50,000
Ghanshyam 60,000 2,70,000
Bank 54,000

Creditors 22,000 Debtors 90,000

Bills Payable 12,000

Loan 50,000

3,54,000 3,54,000
 Ghanshyam retired on 1st Apr 2019 on the following terms.

1. Building and Investment to be appreciated by 5% and 10% respectively.

2. Provision for doubtful debt to be created at 5% on Debtors.
3. The provision of Rs.3,000/- to be made in respect of outstanding salary.
4. Goodwill of the firm is valued at Rs.90,000/- and partners decide that goodwill
should be written off.
5. The amount payable to the retiring partner to be transferred to his loan a/c.

Prepare Profit & Loss Adjustment Account, Partner’s Capital account, Balance Sheet of New
Firm.

Q 3. Shyam and Ram were partners in a business sharing profit and losses in the ratio of
3:2 respectively. Their Balance Sheet as on 31st March 2019 is as follows. (10)

Liabilities Amount Assets Amount

Capital A/c's Building 5,600
Shyam 8,000
Ghanshyam 4,800 Plant 7,200

Current A/cs Bank 4,800

Shyam 2,400
Ghanshyam 1,600 Debtors 11,200

Bills Payable 2,080 4,000

Stock

Creditors 13,920
32,800 32,800

The firm was dissolved on the above date and the assets realised are as under.

1. Plant Rs.6,400 , Building Rs.4,800, Stock Rs.3,200 and Debtors Rs.9,600.

2. Shyam agreed to pay off the bills payable.
3. Creditors were paid in full.
4. Dissolution expenses were Rs.1,120.

Prepare Realisation Account, Partners Current Account, Partner Capital Account & Bank
Account.
 OR

Q.3. Priyanka owed Meena Rs.18,000, Priyanka accepted a bill drawn by Meena for the
amount at 4 months. Meena endorsed the same bill to Sagar. Before due date Priyanka
approached Meena for renewal of bill. Meena agreed on condition that Rs.6,000 be paid
immediately together with Interest on the remaining amount of 8% p.a. for 3 months and
Priyanka should accept a new bill for the balance amount. These arrangements were carried
through. However, before the due date Priyanka became insolvent and only 50% of the
amount could be recovered from her estate.

Give Journal entries in the books of Meena. (10)

Q.4. Harsh manufacturing co. ltd issued a prospectus inviting application for 50,000 equity
shares of Rs.10 each payable as follows.

Rs.2 on application Rs.4 on allotment.

Rs.2 on first call Rs.2 on final call.

Applications were received for 60,000 equity shares. The directors decided to reject excess
application and refunded application money on that. Company received all Money.

Pass Journal entries in the books of the Company. (08)

OR

Q.4. State the importance of Computerised Accounting System. (08)

Q.5. Rajesh, Rakesh & Mahesh were equal partners on 31st March 2019. Their Balance Sheet
as on 31st March 2019 is as follows. (08)

Liabilities Amount Assets Amount

Capital A/c's Building 4,00,000
Rajesh 5,00,000
Rakesh 2,00,000 Furniture 3,00,000
Mahesh 2,00,000
Bank 1,00,000
Creditors 90,000
Debtors 3,00,000
Bills Payable 60,000
Stock 1,00,000
Bank Loan 1,50,000
12,00,000 12,00,000

Mr Rajesh died on 30th June 2019 and the following adjustments were agreed as:
 1. Furniture to be adjusted to its market price of Rs.3,40,000.
2. Building to be depreciated by 10%.
3. Provide RDD at 5% on Debtors.
4. The profit upto the date of death of Mr. Rajesh is to be calculated on the basis of last
year profit which was Rs.1,80,000.

Prepare Profit and Loss Adjustment Account & Partners Capital A/c.

OR

Q.5. Following is the Balance sheet of Mohan Ltd. Prepare cash flow statement (08)

Liabilities 31.3.2019 31.3.2020 Assets 31.3.2019 31.3.2020

Share Capital 1,00,000 1,50,000 Cash 10,000.00 15,000.00
Creditors 30,000 45,000 Debtors 70,000.00 1,25,000.00
Profit & Loss
20,000 35,000 Stock 40,000.00 35,000.00
A/c
Land 30,000.00 55,000.00
1,50,000 2,30,000 1,50,000.00 2,30,000.00

Q.6. Following is the receipts and payments account of Sports Club. Prepare Income and
Expenditure account for the year ending 31.3.2019. (12)

Dr. Recepits and Payment account for the year ending 31.3.2019. Cr.
Receipts Amount Amount Payments Amount Amount

To Bal b/d By Salaries 10,000.0

By Rent (Including Rs.4,000 for
Cash in Hand 9,000 2017-18) 10,000

24,000 33,000
Cash at Bank

2,900
By Electricity Charges
To Subscription

2017-18 80,000 By Fixed Deposit 1,20,000

2018-19 89,000

2019-20 7,000 1,04,000 By Printing and Stationery 1,500

 To entrance fees 16,000 By general expenses 11,000
To Donation for building (including Rs.1000 paid for next
fund 1,40,000 year)

To Interest
1,200
By Sports Material Purchased 80,000
To Sale of Furniture

(Book value Rs.16000) 9,000 By Balance C/d

17,800
Cash in Hand

Cash at Bank 50,000 67,800

3,03,200 3,03,200

Adjustments :
i Outstanding Subscription for current year is Rs.9,000.
ii Outstanding Rent for current year is Rs.2,000.
iii Entrance fees are to be treated as revenue income.
iv Stocks of sports material as on 1.4.2018 Rs.12,000 and on 31.3.2019 Rs.28000.

Q.7.From the following Trial Balance of Riddhi and Siddhi, you are required to prepare
Trading & Profit and Loss Account for the year ended 31st March 2019 and Balance Sheet
as on that date. (12)

Trial Balance as on 31st March 2019.

Debit Credit
Particulars (Rs.) (Rs.)

Opening Stock 48,000

Capital
Riddhi 50,000
Siddhi 30,000
 Purchases 22,500
Wages 800
Carriage Inward 1,000
Sundry Creditors 27,600
Bills Payable 20,000
Cash 2,850
Insurance 1,200
Debtors 32,000
Bank Overdraft 18,000
Carriage Outward 900
Land and Building 42,500
Furniture 38,700
Sales 47,000
Purchase Return 500
Sales Return 400
Rent 1,800
Bad Debts 300
RDD 350
Discount 700 1,000
Travelling Expense 250
Advertisement 4,150
1,96,250 1,96,250

Adjustments:
v Closing Stock Rs.48,700.
vi Outstanding expenses – wages Rs.700 and travelling exp Rs.200.
vii Depreciate land and building by 10% and Furniture by 5%.
viii Insurance paid in advance Rs.300
ix Goods of Rs.3000 destroyed by fire and insurance company rejected the claim
fully.
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