Capitol Hill College To the applicants of 5,000 shares 5,000 shares

Teku, Kathmandu To the applicants of 12,000 shares 5,000 shares

Second Term Examination-2078 To the applicants of 8,000 shares Nil
Subject: Accounting –II It is resolved that the excess amount paid on application is to be adjusted
Level: 12 Code: 1041 Full Marks: 75 against amount due on allotment and call. All the monies were duly received.
Time: 3 hours Pass Marks: 30 Required: Entries for ApplicationAllotmentFirst and final call. [3+1+1]
13. A company limited issued 5,000 shares of Rs. 100 each payable as under: On
Candidates are required to give their answers in their own words as far as
practicable. The figures in the margin indicate full marks. application Rs. 40; On allotment Rs. 30; On first and final call Rs. 30
Attempt ALL questions. Applications were received for 8,000 shares, allotment were made on the
Very Short Answer Question [11×1=11] following basis:
1. What is company? To applicants for 3,000 shares Full
To applicants for 4,000 shares 2,000 shares
2. What do you know about issued capital?
To applicants for 1,000 shares Nil
3. What is forfeiture of share? All excess amount paid on application is to be adjusted against amount due on
4. What do you mean by articles of association? allotment and subsequent calls. The shares were fully called and paid up except
5. Define preliminary expenses. one shareholder to whom 100 shares were allotted failed to pay on first an final
6. Define financial position. calls and his shares were forfeited.
7. Write any one objective of work sheet. Required: Journal entries for Allotment First and final call. [3+2=5]
8. XYZ Company issued 10,000 shares of Rs.100 each at 10% discount in 14. A. R& R Company issued 2000, 10% debentures of Rs. 100 each at a premium
of 10%, and redeemable at the end of 5 years at a premium of 5%.
lump-sum. All called up money was received and allotted.
Required: Journal entry for issue of debentures.
Required: Journal entries.
B.Differentiate between shares and debentures.
9. A limited forfeited500 shares of Rs.100 each issued at par of Mr. Shree due
15. The trial balance of CG Company limited as on Chaitra 31st ,2077
to non-payment of shares first and final calls of Rs.60 per share.
Particulars Rs. Particulars Rs.
Required: Journal entry for share forfeiture.
Purchases 100,000 Sales 200,000
10. If shares of Rs.400,000 are issued for purchase of assets Wages 40,000 Rent 10,000
Rs.500,000;Rs.100,000 will be treated as ---- Salaries 40,000 Creditors 30,000
a. Discount b. Premium c. Profit d. Loss Administrative expenses 10,000 Share capital 200,000
11. A Company issue of 2000;10% debentures ofRs.100 each at par and Machinery 50,000 Bank loan 50,000
redeemable at par value Land & building 145,000
Required: Journal entries for issue of debenture. Office expenses 30,000
Sundry debtors 25,000
Bank balance 30,000
Attempt ALL questions. Dividend paid 20,000
Short Answer Question [8 ×5=40 ] Total 490,000 Total 490,000
12. A company issued 10,000 shares of Rs. 100 each at a Premium of Rs. 10 per
Additional information:
share payable under:
a. Stock at the end value Rs.30,000
On application Rs.40
b. Depreciation on machinery @10%
On allotment Rs.50 (Including Premium)
On First and Final call Rs.20 c. Rent received included unearned rent Rs.500
Application were received for 25,000 shares.The allotment were made as d. Prepaid salary was Rs.10,000
follows: Required: prepare income statement and balance sheet [5]
16. The Trial balance of Himal Company Limited as on 31 st December is given  Statement of Retained Earnings.
below: [1]
Particulars Debit(Rs.) Credit(Rs.) 18. A. Write any three features of Private Company.
Debtors and creditor 290,000 50,000 [3]
Purchases and sales revenue 105,000 300,000 B. write any two objectives of profit and loss account.
Wages 25,000 - [2]
Salaries 30,000 - 19. Explain the procedures of preparing the work sheet. [5]
Fixed assets 300,000 - Long Answer Question
Share capital - 400,000 20. The Trial Balance of SUbhaCompnay as on Chaitra 31st is given below:
Insurance 10,000 - Debit Rs. Credit Rs.
Commission paid 40,000 - Land & building 280,000 Share capital 300,000
Profit and loss account - 50,000 Equipment 340,000 P/L appropriation a/c 32,000
Total 800,000 800,000 Opening 24,000 Reserve fund 78,000
Additional information: Cash balance 16,000 Creditors 43,200
a. Depreciation on fixed assets by 10% Purchases 280,000 Sales revenue 616,000
b. Outstanding wages Rs.5,000 Debtors 32,800 Advance commission 8,000
c. Transfer to reserve Rs.10,000 Wages and Carriage 72,000 Purchase return 1,600
Required: prepare work sheet.[5] Salaries 76,000 Bank loan 100,000
17. Trial balance shown below are before adjustment for XYZ Company as on Office rent 33,600
Ashadh 31st 2077 Insurance 5,600
Particulars Dr.(Rs.) Cr.(Rs.) Closing 19,200
Cash 21,800 - Total 1,179,200 Total 1,179,200
Account receivable 6,400 - Additional information:
Office supplies expenses 5,000 - Depreciation at 10% on machinery.
Depreciation expenses 8,000 - Bad debt written off Rs.800 and make a provision for bad debts at 5%
Office equipment 32,000 - Provision for tax is to be made at Rs.8,000
Acc.depreciation- office equipment - 7,200 Dividend proposed at 10% on share capital.
Account payable - 11,600 Required: Trading account. [1]
Unreaned rent revenue - 3,600 Profit and loss account. [3]
Common stock - 20,000 Profit and loss appropriation account. [1]
Dividend 5,600 - Balance sheet. [3]
Service revenue - 68,000 21. The Trial Balance of N Company Ltd. as on Chaitra 31 is given below:
Rent revenue - 26,400 Particulars Rs. Particulars Rs.
Salaries expenses (40% of sales staffs) 34,000 - Purchase 275,000 Sales 600,000
Rent expenses (25% paid for show room 12,000 - Opening stock 30,000 Share capital 200,0010
Income tax expenses 12,000 - Building 250,000 Profit and Loss A/C 50,000
Total 136,800 136,800 Rent 5,000
Wages 30,000
Required:Multi- Step income Statement [4]
Insurance 10,000
 Debtors 200,000
Salaries 50,000
Total 850,000 Total 850,000

Additional Information:
a. Outstanding salaries Rs.4,000
b.Pre-paid insurance Rs.2,500
c. Proposed dividend @ 10%
Required: Adjustment entries Work sheet [2+6=8]
[2+6=8]
22. The trial balance of a Company as on Ashadh 31st is given below:
Particulars Amount(Rs.) Amount(Rs.)
Equity share capital - 150,000
Revenue - 400,000
Long term loan - 125,000
Sundry creditors - 25,000
Cash in hand 20,000 -
Sundry debtors 30,000 -
Fixed assets 350,000 -
Rent 100,000 -
Purchases and wages 200,000 -
Total 700,000 700,000
Adjustment:
a. Depreciation on fixed assets Rs.30,000
b.Wages payable Rs.20,000
c. Closing stock Rs.35,000
d.Rent paid Rs.8,000 per month
Required: Income statement as per NFRS. [4]
Balance sheet as per NFRS. [4]

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