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056 Practice Test 01 Accounting Test Paper Subjective Udesh Regular
056 Practice Test 01 Accounting Test Paper Subjective Udesh Regular
056 Practice Test 01 Accounting Test Paper Subjective Udesh Regular
Accounting (Subjective)
1. M/s Super Enterprises bought 3 trucks from Kaya Ltd. on 01-04-2017 on the following terms:
Down Payment ₹ 6,50,000
3 Instalments to be paid, each at the end of each year
1st Instalment ₹ 3,55,000
2nd Instalment ₹ 3,38,000
3rd Instalment ₹ 3,30,000
Interest is charged @ 10 % p.a. and included in above instalments.
M/s Super Enterprises provides depreciation @ 20 % on the diminishing
balance of the Trucks
On 31st March, 2020, M/s Super Enterprises failed to pay the 3rd Instalment upon which Kaya Ltd. repossessed
1 truck. Kaya Ltd. agreed to leave 2 trucks with M/s Super Enterprises and adjusted the value of 1 truck against
the amount due.
The truck taken over was valued on the basis, of 30% depreciation annually on written down value basis. The
balance amount remaining in the Vendor's Account after the above adjustment was paid by M/s. Super
Enterprises after 3 months with interest @ 20 % p.a.
You are required to:
(i) Calculate the Cash Price of the trucks and the amount of Interest paid with each instalment.
(ii) Prepare Truck Account, Kaya Ltd.'s Account in the books of M/s Super Enterprises assuming that the books
of accounts are closed on 31st March every year.
(9 Marks)
2. On 1st April, 2017, Mr. Ramesh acquired a Tractor on Hire purchase from Ravi Ltd. The terms of contract were
as follows:
a. The Cash price of the Tractor was ₹ 11,50,000
b. 2,50,000 were to be paid as down payment on the date of purchase.
c. The Balance was to be paid in annual instalments of ₹ 3,00,000 plus interest at the end of the year.
d. Interest chargeable on the outstanding balance was 8% p.a.
e. Depreciation @ 10% p.a. is to be written off using straight line method.
Mr. Ramesh adopted the Interest Suspense method for recording his Hire purchase transactions.
You are required to: Prepare the Tractor account, Interest Suspense account and Ravi Ltd.s’ account in the books
of Mr. Ramesh.
(8 Marks)
3. State the differences between Hire Purchase Agreement & Instalment Purchase Agreement.
(4 Marks)
4. From the following, calculate the cash price of the asset:
Hire purchase price of the asset 50,000
Down payment 10,000
Four annual installments at the end of each year 10,000
Rate of interest 5% p.a. (4 Marks)
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