RAJDHANI MODEL COLLEGE i.

Acquired the articles of incorporation and three shareholders introduced

Full Marks: 30
Rs.1,00,000 each in exchange for shares.
Old Baneshwor, Kathmandu Pass Marks: 15 ii. Purchase the office building for Rs.1,50,000 in cash and building is valued
PRE-BOARD EXAMINATION-2023 Time: 1.5Hrs. at Rs.1,00,000 and remainder as land.
BHM/ III ACC125: Hospitality Accounting I(Set-A) iii. Signed a three-year promissory note at the bank for Rs.1,25,000.
iv. Purchased office equipment at a cost of Rs.50,000 paying Rs.10,000 as
Candidates are required to give their answers in their own words as far as down payment and agreeing to repay the remainder in 10 days.
practicable. The figures in the margin indicate full marks. v. Paid wages and salaries of Rs.1,30,000 for the first half of the month.
Group 'A' vi. Paid the balance due on the office equipment.
Very short answer questions vii. Sold Rs.24,000 of advertising during the first month. Customers have until
Attempt all questions. (10x2=20) the 15th of the following month to pay their bills.
1. What do you mean by hotel accounting? Required:
2. Who are the users of accounting information? a. Journal Entries
3. What do you understand by financial statements? b. T- accounts and
4. Write any two differences between capital expenditure and revenue c. Trial balance
expenditure. 14. The following transactions pertaining to January of ABC Pvt. Ltd. are given to
5. List out any two limitations of ratio analysis. you:
6. Define cash flow statement. Jan 1: Opening cash balance of Rs.1,20,000 and bank balance of Rs.70,000.
Jan 5: Payment made to creditors Rs.13,000 in cash, Rs.15,000 through cheque
7. What is annual report?
in full settlement of Rs.30,000.
8. The following information is provided to you:
Jan 7: Sold goods on credit Rs.20,000.
Sales Rs.12,00,000 Jan 10: Purchased furniture of Rs.50,000 and paid through cash.
Cost of goods sold Rs.4,50,000 Jan 15: Cash withdrawn from bank Rs.30,000 for office use and Rs.10,000 for
Selling expenses Rs.60,800 personal use.
General and administrative expenses Rs.75,000 Jan 22: Sold goods for Rs.30,000 where Rs.4,000 received as cash and balance
Required: Determine the amount of gross profit and net profit margin. amount is received through cheque and discount allowed of Rs.1,000.
9. Calculate Cash Flow from Operating Activities. Jan 25: Received from debtors Rs.19,500 in full settlement of his account of 7th
Sales for the year Rs.5,00,000 January.
Increase in debtors Rs.5,000 Jan 30: Received through cheque Rs.28,500 after deducting 5% discount.
Increase in creditors Rs.3,000 Jan 31: Paid salary and wages for the month Rs.20,000 by cheque.
10. Calculate inventory turnover ratio from the following information: Required: Triple Column Cash Book
Opening stock Rs.2,50,000 Carriage Rs.5,000 15. The following information is provided by XYZ Company as the year ended
inwards December 31, 2013.
Purchase of Rs.1,40,000 Closing stock Rs.35,000 Particulars Amount Particulars Amount (Rs.)
merchandise (Rs.)
Purchase return Rs.10,000 Account Receivable 2,000 Land 20,000
Advertising expenses 4,000 Purchase return 1,000
"Group 'B'
Building 59,500 Purchase 51,000
Descriptive answer questions. Capital stock 50,000 Retained earnings 8,500
Attempt any six questions. (6x10= 60) Cash 5,000 Salaries expenses 20,000
11. Define GAAP. Explain in brief the various principles of GAAP. Depreciation expenses 500 Salaries payable 3,000
12. What is annual report? Explain the components of annual report. Dividend paid 1,000 Sales 92,000
13. Himalayan Service Company started business on January 1, 2018. The Income tax expenses 750 Sales commission 4,500
following transactions occurred during the first month of operation: Income tax payable 750 Utilities expenses 3,000
Rent expenses 1,000 Bonds payable 20,000
Stock on Jan 1 6,000 Account payable 5,000 Total 11,00,000 Total 11,00,000
Sales return 2,000 Required:
Additional information: Stock on Dec 31 is Rs.2,000. a. Inventory turnover ratio
Required: b. Debtor turnover ratio
a. Multi-Step Income Statement c. Average collection period
b. Statement of Retained Earnings d. Assets turnover ratio
c. Classified Balance Sheet e. Capital employed turnover ratio
16. Following is the income statement and balance sheet of Lakeside Handicraft 17. The following income statement and balance sheet of ABC Company is
Company Ltd. provided for the year ended December 31, 2018.
Lakeside Handicraft Company Ltd. Particulars Amount (Rs.)
Income Statement Sales revenue 12,50,000
For the year ended 31st December 2017 Less: Cost of goods sold 7,00,000
Particulars Amount (Rs.) Gross profit 5,50,000
Sales (50% Credit) 12,00,000 Less: Operating expenses 1,50,000
Less: Cost of goods sold 6,10,000 Income before interest and 4,00,000
Gross profit 5,90,000 tax
General and administrative 80,000 Less: Interest expenses 25,000
expenses Income before tax 3,75,000
Depreciation expenses 40,000 Less: Income tax expenses 1,50,000
Establishment expenses 30,000 Net income after tax 2,25,000
Selling expenses 65,000
Total expenses and losses 2,15,000 Comparative Balance sheet
Income before interest and tax 3,75,000 As on 31st December
Less: Interest expenses 30,000 Capital and 2018 2017 Assets 2018 2017
Income before tax 3,45,000 Liabilities (Rs.) (Rs.) (Rs.) (Rs.)
Less: Income tax expenses 10,000 Accounts 1,30,000 1,48,000 Cash 52,000 90,000
Net income after tax 3,35,000 payable
Outstanding 68,000 63,000 Accounts 1,80,000 1,30,000
Balance sheet expenses receivable
As on 31st December 2017 Income tax 90,000 110,000 Inventory 2,30,000 2,00,000
Particulars Amount(Rs.) Particulars Amount(Rs.) payable
Share capital 4,00,000 Machinery 5,72,000 Long-term 3,50,000 3,00,000 Prepaid 15,000 25,000
Share premium 1,00,000 Equipment 2,00,000 bank loan expenses
Reserve and surplus 40,000 Furniture 50,000 Common 5,50,000 4,00,000 Land 7,50,000 6,00,000
Debentures 3,00,000 Inventory 65,000 stock
Bank overdraft 35,000 Debtors 60,000 Retained 4,89,000 3,24,000 Plant and 7,00,000 5,00,000
Sundry creditors 1,10,000 Cash in hand 50,000 earnings equipment
Outstanding expenses 25,000 Marketable 45,000 Accumulated (2,50,000) (2,00,000)
securities depreciation
P/L appropriation account 90,000 Preliminary 18,000 Total 16,77,000 13,45,000 Total 16,77,000 13,45,000
expenses
Goodwill 40,000 Additional information:
 a. Dividends of Rs.60,000 were declared and paid during the year. a. Current ratio f. Assets turnover ratio
b. Operating expenses include Rs.50,000 of depreciation. b. Quick ratio g. Return on assets
Required: Cash Flow Statement for 2018 using direct method c. Inventory turnover ratio h. Return on shareholders’ equity
d. Debtor turnover ratio i. Earnings per share
Group ‘C’ e. Average collection period j. No. of shares issue
Case analysis
18. Read the case situation given below and answer the questions that follow:
[20]
Following are the financial statements of Salesways Pvt. Ltd.
Income statement
For the year ended 31st December 2018
Particulars Amount (Rs.)
Sales revenue 2,00,000
Less: Cost of goods sold 60,000
Gross profit 1,40,000
General and administrative 80,000
expenses
Depreciation expenses 40,000
Income before interest and tax 20,000
Less: Interest expenses 5,000
Income before tax 15,000
Less: Income tax expenses 10,000
Net income after tax 5,000

Balance sheet
As on 31st December 2018
Liabilities and capital Amount Assets Amount
(Rs.) (Rs.)
Common shares @ Rs.100 40,000 Land 50,000
each
Preference shares 30,000 Plant & Machinery 20,000
Reserve & Surplus 10,000 Furniture 15,000
Debentures 30,000 Stock 25,000
Bank overdraft 5,000 Accounts 7,000
receivable
Sundry creditors 10,000 Cash and bank 5,000
Outstanding expenses 5,000 Prepaid expenses 5,000
Profit & Loss app. Account 5,000 Preliminary 8,000
expenses
Total 1,35,000 Total 1,35,000
Required: