Reference no: EM131045929
1. Anil sent on 1st July, 2006 to Rahul goods costing Rs.50,000 and spent Rs.1,000 on packing etc. On 3rd July 2006, Rahul received the goods and sent his acceptance to Anil for Rs.30,000 payable at 3 months. Rahul spent Rs.2,000 on freight and cartage, Rs 500 on godown rent and Rs.300 on insurance. On 31st December, 2006 he sent his Account Sales (along with the amount due to)Showing that 4/5 of the goods had been sold for Rs.55,000.Rahul is entitled to a commission of 10%.One of the customers turned insolvent and could not pay Rs.600 due from him. Show the necessary ledger accounts.
2. Shakti International invited applications for 100,000 shares of Rs 10 each issued at a discount of 10% payable as follows:
Application Rs 4 per share
Allotment Rs 3
First call Re 1
Final call Balance amount
The company received applications for 140,000 shares and pro rata allotment was made for applications for 120,000 shares who had applied for 600 shares failed to pay amount due on allotment and his shares were forfeited after the first call. Subsequently after the final call, half of his shares were re-issued to K for Rs 11 per share. Journalize and prepare balance sheet in the books of Shakti International.
3. B and C enter a joint venture to prepare a film for the Government. The Government agrees to pay Rs.1, 00,000.B contributes Rs.10, 000 and C contributes Rs. 15,000. These amounts are paid into a Joint Bank Account. Payments made out of the joint account were:
Purchase of equipment Rs.6000
Hire of equipment Rs.5, 000
Wages Rs.45, 000
Materials Rs.10, 000
Other expenses Rs.5, 000
B paid Rs.2, 000 as licensing fees. On completion, the film was found defective and Government made a deduction of Rs.10, 000.The equipment was taken over by C at a valuation of Rs.2, 000. Prepare P&L account in respect of the company.
4. Write Short notes on any three of the following.
a. Dual Aspect Concept
b. Cash book is Journal as well as Ledger. Explain
c. Accrued Income and Outstanding Expenses
d. Convention of Conservatism
e. Accounting Cycle
5. Explain what is Bank Reconciliation statement? Draw a Proforma of a Bank Reconciliation statement with favorable balance as per cash book. Illustrate with the help of an example.
6. (a) Explain the nature ,uses and limitations of Financial Statements
(b) Prepare a Trading Account of Mr. Anil for the year ending 31st March, 2009
Rs.
Purchases 3, 00,000
Sales 5, 00,000
Stock (April 1, 2008) 40,000
Wages 30,000
Return Outwards 3,000
Return inward 2,500
Freight and clearing charges 5,000
Additional information:-
Stock on 31st March, 2009 42,000
7. Prepare a Trial Balance of Mohan & Co. as on March 31 2003
| Capital |
9,20,000 |
| Sundry creditors |
1,88,520 |
| Bills Payable |
69,300 |
| Sales |
12,18,500 |
| Provision for doubtful debts |
13,200 |
| Interest(Cr.) |
3,400 |
| Building |
7,00,000 |
| Machinery |
1,20,000 |
| Sundry debtors |
1,56,000 |
| Cash in hand |
9,880 |
| Cash at bank |
1,45,340 |
| Bills Receivable |
58,440 |
| Purchases |
8,55,220 |
| Carriage outwards |
12,910 |
| Bad Debts |
6130 |
| Discount(Dr.) |
6200 |
| Sales Return |
2850 |
8. Answer any five of the questions below.
For the following transactions in ABC Ltd, prepare Accounting Equation.
a. Started Business with Cash Rs 36,000
b. Purchased goods for cash Rs 18,000 and credit Rs 12,000
c. Paid Rent in advance Rs 300
d. Paid Salary Rs.300 and Salary outstanding is Rs 60.
e. Bought motorcycle for personal use Rs.3,000
Case Detail: Case Study
X, Y and Z were partners in a firm sharing profits in the proportions of 1/2, 1/3 and 1/6 respectively. The Balance Sheet of the firm on 31st March 2001 was as follows:
|
Liabilities
|
Amt.
|
Assets
|
Amt.
|
|
Trade Creditors
Employees Provident Fund
Reserve Fund
Capitals
X 65,000
Y 30,000
Z 20,000
|
15,000
6,000
18,000
115000
|
Cash at bank
Debtors 40,000
Less: Provision 2,000
Stock
Investments
Patents
Plant & Machinery
Goodwill
|
5,000
38,000
30,000
15,000
10,000
50,000
6,000
|
|
1,54,000
|
1,54,000
|
Z retired on the above date on the following terms:
a) Goodwill of the firm was valued at Rs. 30,000
b) Value of patents was to be reduced by 20% and that of plant & machinery to 90%.
c) Provision for doubtful debts was to be raised to 6 %.
d) Z took over the investments at a value of Rs.17,600.
e) Liability for workmen's compensation to the extent of Rs. 375 is to be created.
f) Trade creditors to the extent of 2.5 % are not likely to claim their dues.
g) Amount due to Z is to be settled on the following basis:
50 % on retirement, 50 % of the balance to be paid in 2 equal half yearly installments carrying interest at 5 % p.a. and the balance by a Bill of Exchange (without interest) at 3 months. The entire capital of the firm as newly constituted is fixed at Rs.100, 000 and the partners' capital accounts are to be adjusted in the profit sharing ratio. Any excess is to be transferred to current account and any deficit is to be brought in cash.