Professional Documents
Culture Documents
(Three hours)
(Candidates are allowed additional 15 minutes for only reading the paper.
They must NOT start writing during this time)
Answer Question 1 (compulsory) and Question 2 (compulsory) from Part I and any other five
questions from Part II.
The intended marks for questions or parts of questions are given in brackets [ ].
Transactions should be recorded in the answer book.
All calculations should be shown clearly.
All working, including rough work, should be done on the same sheet as, and adjacent to, the
rest of the answer.
PART I
Question 1
[6 2]
PART II
Question 2
The following is the Balance Sheet of Anju and Manju sharing profits in the ratio
of 3:2 as on December 31, 2003 :
Balance Sheet as at December 31, 2003
Liabilities
Amount
Assets
Amount
(Rs.)
Creditors
12,000
(Rs.)
Plant and Machinery
14,000
5,000
2,000
Loan by Manju
General
Reserve
7,500
Investment
5,000
1,250
Stock
3,000
Capitals :
Debtors
Anju
5,000
Manju
4,000
Bank loan
Total
Less: provision
10,000
500
9,500
9,000
Bank
5,750
7,000
2,500
41,750
Total
41,750
[12]
The Balance Sheet of Rohit, Nisha and Sunil who are partners in a firm
sharing profits according to their capitals as on 31st March 2006 was as
under:
Liabilities
Amount
Assets
Amount
(Rs.)
(Rs.)
Creditors
25,000
Machinery
40,000
Bills Payable
13,000
Building
90,000
General Reserve
22,000
Debtors 30,000
Capital
Less Provision 1.000
29,000
Rohit 60,000
for Bad debts
Nisha 40,000
Stocks
23,000
Sunil 40,000
1,40,000
Cash at Bank
18,000
2,00,000
2,00,000
On the date of Balance Sheet, Nisha retired from the firm, and following
adjustments were made:
(i) Building is appreciated by 20%.
(ii) Provision for bad debts is increased to 5% on Debtors.
(iii) Machinery is depreciated by 10%.
(iv) Goodwill of the firm is valued at Rs.56,000 and the retiring partners
share is adjusted.
(v) The capital of the new firm is fixed at Rs.1,20,000.New profit sharing ratio
is 2:5.
Prepare Revaluation Account, Capital Accounts of the partner and Balance
sheet of the new firm after Nishas retirement
. Question 5
[12]
Sun India Ltd. invited applications for 40,000 Shares of Rs. 100 each at a premium of Rs.
20 per share payable as follows:
On Application Rs. 40 (including Rs.5 premium)
On Allotment Rs. 30 (including Rs.15 premium)
On First Call Rs. 30
On Second & Final Call Rs. 20
Applications were received for 50,000 shares and pro-rata allotment was
made on the application for 44,000 share. Excess application money is to be
Utilized towards allotment.
Umesh to whom 800 Shares allotted failed to pay the allotment money and
his shares were forfeited after allotment.
Suresh who applied for 1,320 shares failed to pay first call and his share were
Forfeited after first Call. Second and final call was made after that. All the money due on
second call have been received.
Of the shares forfeited, 1,000 share were reissued as fully paid-up for Rs. 80
per share, which included the whole of Umeshs shares.
Record necessary journal entries in the books of Sun India Ltd.
Question 6
[12]
Narang, Suri and Bajaj are partners in a firm sharing profits and losses in
proportion of 1/2 , 1/6 and 1/3 respectively. The Balance Sheet on April 1, 2007
was as follows:
Balance Sheet as on April 1, 2007
Liabilities
Amount
(Rs.)
Bills Payable
12,000
Sundry Creditors
18,000
Reserves
12,000
Capital Accounts:
Narang 30,000
Suri 20,000
Bajaj 28,000
Assets
Amount
(Rs.)
Building
40,000
Machinery
30,000
Furniture
12,000
Stock
18,000
Acculated loss
6,000
Sundry Debtors 20,000
Less: Reserve
for Bad Debt
1,000
19,000
88,000
Cash
1,30,000
7,000
1,30,000
Sunil joins the business and the partners agree to the following:
a) Building and stock are to be appreciated by 10% and 25%
respectively.
b) Machinery and furniture are to be depreciated by 10% and 12% respectively.
c) Bad Debts reserve is to be increased to Rs. 1,800.
d) Goodwill is valued at Rs. 42,000 Sunil is able to bring half share of his
goodwill.Half of the goodwill brought is withdrawn by the partners .
e) New profit sharing ratio is 3:2:1:1
f) The partners have decided to adjust their capitals in their new
profit sharing ratio after admission of Sunil. Surplus/deficit, if any, in their
capital accounts will be adjusted through current accounts.
Prepare necessary ledger accounts and draw the Balance Sheet of the
reconstituted firm.
[10]
Question 7
The following are the ledger balances extracted from the books of
Coopers and Company Limited:
Amount
10,00,000
10,00,000
Calls in arrear
1,000
1,00,000
10% Debentures
Debenture interest accrued but not due
1,42,500
7,500
1,21,000
68,000
General reserve
2,10,000
Proposed dividend
60,000
Creditors
2,00,000
5,25,000
Stock
2,50,000
Debtors
2,00,000
Land
2,00,000
Preliminary expenses
13,300
Advances to directors
42,700
Furniture
50,000
Cash
30,000
Bank
2,47,000
Building
3,50,000
Prepare the Balance Sheet of the company as per Schedule VI, Part I of
the Companies Act, 1956.
SecctionIII
Question 8
[12]
turnover
[12]
Note
No.
Share Capital
Reserves and Surplus
31.3.2012
31.3.2011
Rs.
Rs.
6,00,000
6,00,000
10,00,000
6,80,000
Long-term Borrowings
3,00,000
3,00,000
Trade Payables
5,90,000
4,12,000
10,000
Fixed assets
7,50,000
8,00,000
Non-Current Investments
Cash &cash equivalent
6,06,250
1,08,750
4,00,000
95,000
Trade Receivables
6,25,000
4,50,000
Inventory
4,10,000
2,55,000
8,000
Question 10
[12]
CalculateCashflowsfromoperatingactivitiesfromthefollowinginformation:
Profitfortheyear2003
04.....................................................
Rs.50,000
TransfertoGeneralReserveDuringtheyear................................... Rs.10,000
Depreciationprovidedduringtheyear............................................. Rs.20,000
Profit on sale of
Furniture.......................................................
Loss on sale of
Machine...................................................................
..Rs.5,000
Preliminaryexpenseswrittenoffduringtheyear............................
Particulars
Debtors
BillsReceivables
Stock
PrepaidExpenses
Creditors
BillsPayable
OutstandingExpenses
31.3.03
10,000
7,000
15,000
2,000
20,000
15,000
3,000
Rs.10,000
Rs.10,000
31.3.04
15,000
5,000
18,000
3,000
18,000
25,000
4,000
(12)