Made by :- HEMANT V. AKOTKAR
Attempt any THREE of the following sub-questions
1.A | Answer the following questions in only 'one' sentence each
Answer in one sentence only.
What is the Balance Sheet?
Answer in one sentence only.
What is gain ratio or benefit ratio ?
What is the authorised capital?
Answer in one sentence only.
Who is a Drawer?
Answer in one sentence only.
What is statement of affairs?
Give the word / term or phrase which can substitute the following statement.
An association of two or more persons to carry on business.
Give word / term or phrase for the following statement.
Payment of the bill before due date.
Write a word / term / phrase as a substitute of the following statement.
The acknowledgement of debt under common seal of company.
Write a word / term / phrase as a substitute of the following statement.
A bill which is drawn in India and payable in other country.
Give one word/term/ phrase for the following statement
Critical evaluation of financial statement to measure profitability.
Select the most appropriate alternative from those given below and rewrite the statement.
The interest on drawings is transferred to _________________ side of the profit and loss account.
debit
credit
asset
liability
Select the most appropriate alternative from those given below and rewrite the statement.
If any asset is taken over by a partner from the firm, __________ account will be debited.
capital
revaluation
assets
profit and loss adjustment
Select the most appropriate alternative from those given below and rewrite the statement.
If goodwill is raised to the extent of retiring partner’s share, ________ account is to be debited.
Cash
Goodwill
all partner's capital
retiring partner's capital
Select the most appropriate alternative from those given below and rewrite the statement.
____________ extra days are allowed over and above the period of the bill.
Two
Three
Five
Ten
Select the most appropriate alternative from those given below and rewrite the statement.
In the statement of Profit or Loss, interest on capital is ___________
shown as addition
shown as subtraction.
ignored
multiplied
State whether the following statement is True or False.
‘Not for Profit’ concerns concentrate their efforts on maximizing their profit.
True
False
State whether the following statement is True or False.
On dissolution Cash or Bank Account is closed automatically.
True
False
A bill can’t be deposited into a bank for collection.
True
False
State whether the following statement is True or False.
A person to whom or as per his order, amount of bill is payable is a Payee.
True
False
State whether following statement is true or false :
Analysis of financial statement is a tool but not a remedy.
True
False
Prepare a format of Bill of Exchange from the following information:
Shri Manohar Ramchandra Patil, 208, Mahatma Gandhi, Mumbai, 400018 draws a four months bill for Rs. 12,995 on shri Ravindra K. Sankpal, Main Road, Sawantwadi, Dist. Sindhudurg payable to Sonali S. Pandit, Ratnagiri on 10th January, 2017.
Shree Ravindra K. Sankpal accepted it on 13th January, 2017 for Rs. 12,900 only.
Shri Pramod keeps his books by single entry method. Following are the details of his business:
| Particulars | 01.04.2015 Amount (Rs.) |
31.03.2016 Amount (Rs.) |
| Cash in hand | 40,000 | 64,000 |
| Cash at bank | 80,000 | 1,44,000 |
| Stock in trade | 64,000 | 96,000 |
| Furniture | 72,000 | 72,000 |
| Plant and machinery | 2,40,000 | 3,60,000 |
| Creditors | 60,000 | 72,000 |
| Debtors | 96,000 | 1,20,000 |
During the year, Shri Pramod has withdrawn Rs. 40,000 for his private purpose and taken goods of Rs. 8,000 for household use.
On 1st October, 2015, he sold his household furniture for 8,000 and deposited the same amount in the business bank account.
Provide depreciation on plant and machinery @ 10% p.a. (assuming additions were made on 1st October, 2015) and furniture @ 5% p.a.
Prepare :
Opening and Closing Statement of Affairs and Statement of Profit or Loss for the year ended 31st March, 2016.
State any one limitation of Analysis of Financial Statement.
Following is the Balance sheet of Harsha and Versha's firm on 31st March, 2016. They share profit and losses in the ratio of 3 : 2.
Balance sheet as on 31st March, 2016
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Capital A/c: | Land & building | 2,00,000 | |
| Harsha | 2,80,000 | Furniture | 76,000 |
| Varsha | 2,80,000 | Sundry debtors | 3,00,000 |
| Sundry creditors | 4,00,000 | Stock | 1,60,000 |
| Cash at bank | 2,24,000 | ||
| 9,60,000 | 9,60,000 |
They decided to admit Asha on 1st April, 2016, into partnership on the following terms:
1) Asha should bring Rs. 80,000 as her share of goodwill, which is to be retained in the business.
2) She should bring Rs. 1,00,000 as her capital for 1/4th share in future profits.
3) land and building to be valued at Rs. 2,40,000 and furniture be reduced by 10%.
4) A provision of 5% on debetors to be made for doubtful debts.
5) The stock is to be taken at a value of Rs. 2,00,000.
6) The excess of capital of Harsha and Varsha over their due proportion of sharing profits in the firm is to be transferred to their respective loan accounts.
Prepare :
Profit and Loss Adjustment Account, Partner's Capital Account and new Balance Sheet of the firm.
Following is the Balance Sheet of Dhirshree, Sonam, and Simaran who were sharing profit and losses in the proportion of their capitals:
Balance Sheet as on 31st March, 2016
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Capital accounts: | Plant and Machinery | 60,000 | |
| Dhirshree | 1,50,000 | Land and building | 1,65,000 |
| Sonam | 60,000 | Stock | 36,000 |
| Simaran | 90,000 | Debtors 36,000 | |
| Sundry Creditors | 45,000 | Less: R.D.D. 3,000 | 33,000 |
| Bank balance | 51,000 | ||
| 3,45,000 | 3,45,000 |
Simran retired from the business on 31st March 2016 and the following adjustments were agreed to :
1) The stock is to be valued at 92% of its book value.
2) R.D.D. is to be maintained at 10% on sundry Debtors.
3) The value of land and building be appreciated by 20%.
4) The goodwill of the firm be fixed at Rs. 36,000 and simran's share in the same adjusted in the accounts of containuing partners in the gain ratio.
5) The entire capital of the new firm be fixed at Rs. 4,80,000 between Dhirshree and Sonam in the proportion to their new profit sharing ratio which is fixed as 3: 1 by making adjustment for difference in cash.
Prepare :
1) Profit and Loss Adjustment Account.
2) Partner's Capital Accounts.
3) Balance Sheet after retirement of Simran.
Prepare: Pass Journal Entries in the books of Sunil and prepare Sunil's account in the books of Pooja.
Ram, Laxman and Bharat were partners sharing profit and losses in the ratio of 2 : 2 : 1. Following is the Balance Sheet as on 31st March, 2016 :
Balance Sheet as on 31st March, 2016
| Liabilities | Amount (Rs.) |
Assets | Amount (Rs.) |
| Capital A/c : | Machinery | 2,00,000 | |
| Ram | 2,40,000 | Stock | 80,000 |
| Laxman | 80,000 | Debtors 2,20,000 | |
| Bharat | 80,000 | Less : R.D.D. (12,000) | 2,08,000 |
| General Reserve | 24,000 | Investment | 96,000 |
| Creditors | 1,92,000 | Profit and Loss A/c | 72,000 |
| Bills Payable | 56,000 | Bank balance | 16,000 |
| 6,72,000 | 6,72,000 |
On the above date the partners decided to dissolve the firm:
(1) Assets were realised as under -
| Machinery | Rs. 1,80,000 |
| Stock | Rs. 72,000 |
| Investments | Rs. 84,000 |
| Debtors | Rs. 1,80,000 |
(2) Dissolution expenses were Rs. 12,000.
(3) Goodwill of the firm realised 96,000
Prepare :
(1) Realisation Account
(2) Partner's Capital Account
(3) Bank Account
Bandekar Industries Co. Ltd. Issued 60,000 equity shares of Rs. 100 each, payable as follows :
On application - Rs. 20
On allotment - Rs. 30
On First Call - Rs. 25
On Second call and Final Call - Rs. 25
The company received applications for 48,000 equity shares. All the applications were accepted and shares alloted. The company made both the calls.
One shareholder Mr. Ramesh holding 1,600 shares failed to pay the final call. His shares were forfeited.
Pass Journal entries in the books of Bandekar Industries Co. Ltd.
Given below is the balance sheet as on 1st April, 2015 and Receipts and Payments Account for the year ending 31st March, 2016 of Decent sports Club, Kudal.
From the given information prepare Income and Expenditure Account for the year ended 31st March, 2016 and the Balance Sheet as on that date :
Balance Sheet as on 1st April, 2015
Dr Cr
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Capital Fund | 9,25,000 | Play-ground | 8,00,000 |
| Building fund | 5,00,000 | Furniture | 36,000 |
| Subscription received in advance for the year | Stock of sports material | 44,000 | |
| 2015 - 2016 | 9,000 | Building fund investment | 5,00,000 |
| Cash at bank | 20,000 | ||
| Outstanding subscriptions | 34,000 | ||
| 14,34,000 | 14,34,000 |
Receipts and Payments Account
for the year ending 31st March, 2016
Dr Cr
| Receipts | Amount (Rs.) | Payments | Amount (Rs.) |
| To Balance c/d | By Sports material purchased | 52,000 | |
| Cash in bank | 20,000 | By salaries and wages | 87,000 |
| To Subscription | 201,800 | By office expenses | 126,000 |
| To Donations | 56,000 | By Telephone charges | 12,400 |
| To Admission fees | 13,000 | By Balance c/d | |
| To Sundry Receipts | 2,700 | Cash at bank | 34,100 |
| To Interest on Investment in building fund | 18,000 | ||
| 3,11,500 | 3,11,500 |
Adjustment :
(1) Stock of sports material in hand on 31st March, 2016 was Rs. 48,000.
(2) Admissin fees and donations are to be capitalised.
(3) Subscription received during the year included Rs. 34,000 for previous year and Rs. 10,000 for the next year. Current year's subscription Rs. 29,000 is to be received.
Ashok and Sangmesh are in partnership sharing profit and losses in the ratio of 2: 1. From the following trial balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended on 31st March 2016 and Balance sheet as on that date :
Trial Balance as on 31st March 2016
| Particulars | Debit Amount (Rs.) |
Credit Amount (Rs.) |
| Prepaid insurance | 3,200 | |
| Insurance | 8,000 | |
| R.D.D. | 4,000 | |
| Discount | 3,200 | |
| Postage and telephone | 12,800 | |
| Debtors and creditors | 2,64,000 | 2,72,000 |
| Salaries | 2,24,000 | |
| Wages | 96,000 | |
| Opening stock | 1,92,200 | |
| Carriage | 4,000 | |
| Purchased and sales | 7,72,800 | 12,06,400 |
| Return inward/Outward | 22,400 | 36,800 |
| Bank Overdraft | 4,83,200 | |
| Plant and Machinery | 96,000 | |
| Land and Building | 7,04,000 | |
| Partner's Capital accounts : | ||
| Ashok | 2,08,000 | |
| Sangmesh | 1,92,000 | |
| 24,02,400 | 24,02,400 |
Adjustment :
(1) Write off Rs. 8,000 for bad debts and provide R.D.D. @ 5% on debtors.
(2) Goods worth Rs. 16,000 were distributed as free samples.
(3) Closing stock on 31st March 2016 was valued at the cost of Rs. 2,24,000 while its market price was Rs. 2,40,000.
(4) The salaries were outstanding at Rs. 8,000.
(5) Depreciation : Land and Building @ 5% p.a. and Plant and Machinery @ 10 % p.a.