1 Time 1.

5 hrs marks 50
Section A 2x5=10

Accountancy

I Answer the following questions ( any five ) 1. 2. 3. 4. 5. 6. What is good will ? What are the two disadvantages of single entry system ? What is sacrifice ratio ? What is fluctuating capital system ? What is statement of affairs ? Why is realisation account prepared

Section B 1x7=7 II Answer (ANY ONE ) of the following questions 7. Laxmi and saraswati are partners having capital of Rs 1,20,000 and Rs 1,00,000 respectively. Their profit sharing ratio is 3:2. On 31.12.2007 their net profit was Rs 38,500. They decided to allow interest on capital at 5% and salary to sharada at Rs. 750 per month. Interest on the drawings are Rs. 1000 and Rs 500 respectively. Prepare profit and loss appropriation account. Shalini, a partner in a firm has withdrawn the following amounts during the year ended 31.12.2008 for his domestic use. Rs. 2000 on 29.02.2008 Rs. 3000 on 01.06.2008 Rs. 5000 on 31.08.2008 Rs. 4000 on 01.11.2008 Calculate Interest on drawing at 12% p.a under product method

8.

Section C III Answer the following questions (any 2) 9. Ganesh keeps his books on single entry system from the following information. Prepare a statement of profits or losses for the year ended 31.12.2005 and a revised statement of affairs as on that date Particulars 01.01.2005 31.12.2005 Machinery 20000 20000 Furniture 2000 2000 Motorcar 10000 10000 Debtors 10000 16000 Stock 12000 13000 Cash 8000 5000 Creditors 20000 10000 Buildings 25000 25000

During the year, he has withdrawn Rs. 3800 for personal use and used goods valued Rs 1200 for domestic purpose. She had also introduced Rs. 5000 as additional capital during the year. Adjustments; a> b> c> d> Provide 5% interest on opening capital Reserve 10% on debtors for bad debts Outstanding salaries Rs 300 Depreciate machinery by 5% and furniture by 10%

2 Time 1.5 hrs marks 50

Accountancy

10. Rama and laksmana are partners sharing profits and losses in the ration of 2:1 Their balance sheet as on 31.12.2008 was as follows: Balance Sheet as on 31.12.2005 Creditors 50000 Cash 2400 Bank Loan 20400 Vehicles 30000 Reserve 15000 B/R 20000 Profit & Loss A/c 15000 Debtors 70000 Less: Reserve 4000 66000 Capitals Stock 62000 Rama-90000 Furniture 20000 Lakshmana 70000 1,60000 Machinary 60000 260400 260400 Bharatha is admitted into partnership on the following terms; a> He should bring Rs 80,000 as capital for share and Rs 30,000 towards good will. b> Good will is withdrawn by the old partners c> Machinery is depreciated by 10% d> Furniture is written down by Rs. 2000 e> Increase R.B.D by Rs. 2,400 f> An amount of Rs. 4400 due to a creditor is not likely to be claimed and hence to be written off. Prepare: i> ii> iii> Revaluation account Partners capital account New Balance Sheet

11. Mahima, Garima and karishma are partners sharing profits & losses in the ratio of 4:3:2, Their balance sheet as on 31.12.2008 was as follows Balance sheet as on 31.12.2008 Liabilities Rs. Assets Rs. Creditors 25000 Cash 9000 Bills payable 17000 Debtors 27000 Karishmas Loan a/c 10000 stock 15000 Reserve fund 18000 Investments 5000 Capitals furniture 14000 Mahima Rs. 30000 Good will 20000 Garima Rs. 20000 Buildings 40000 Karishma Rs. 10000 60000 130000 130000 On the above date the firm was dissolved the assets realized as follows: a> Debtors realized 10% less than the book value and investements realized 20% more than the book value. Buildings realized Rs. 60000, stocks realized Rs. 12,000 and furniture sold for Rs.15000 b> G. will taken by mahima at Rs. 15000 c> Creditors and bills payable settled at discount of 5% d> Realisation expenses Rs. 2000 Prepare i> Realisation account ii> Capital accounts of partners iii> Cash account Section-D (5x1 ) =5 Answer any one question

12. Prepare a statement of affairs with five imaginary figures OR 13. Prepare a Revaluation account with five imaginary figures