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General Instructions:
(i) This question paper contains four Sections A, B, C and D.
(ii) Attempt any 7 questions from Section A, carrying 2 marks each.
(iii) Attempt any 4 questions from Section B, carrying 5 marks each .
(iv) Attempt any 4 questions from Section C, carrying 14 marks each.
(v) Attempt any 2 questions from Section D, carrying 5 marks each.
(vi) All parts of the questions should be attempted at one place.
Question 1
• Q11

Pratham and Chethan are partners sharing profits and losses in the ratio of 3 : 2. On 1-4-2013 they had capitals of Rs 60,000 and Rs 40,000 respectively.
According to their partnership deed they are entitled to the following :

(a) Interest on capital at 6% p.a.
(b) Interest on Drawings at 5% p.a.
(c) Chethan is allowed a salary of Rs 500 p.m. for first 6 months and for the remaining period Rs 1,000 p.m.
(d) Their drawings during the year Pratham Rs 8,000 and Chethan Rs 10,000. Interest on the same Rs 400 and Rs 500 respectively.

The profits for the year before making the above adjustments was Rs 24,100.
Prepare profit and loss appropriation A/c for the year ending 31-3-2014.

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• Q12

Ramesh and Suresh are partners sharing profits and losses in the ratio of 3 : 2. They admit Satish into partnership for 1/5th share.
Calculate the new profit sharing ratio of all the partner’s.

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• Q13

Anil, Sunil and Rahul are the partners sharing profits and losses in the ratio of 3 : 2 : 1. Their capitals as on 1-4-2014 were Rs 70,000 Rs 90,000 and Rs 60,000 respectively.
Anil died on 31-12-2014 and the partnership deed provided the following :

(a) Interest on Anil’s capital at 8% p.a.
(b) Anil’s salary Rs 2,000 p.m.
(c) His share of accrued profit upto the date of death based on previous year’s profit. Firm’s profit for 2013-2014 Rs 24,000.
(d) His share of Goodwill Rs 12,000

Ascertain the amount payable to Anil’s executor by preparing Anil’s Capital A/c.

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• Q14

Kaveri Co. Ltd. Issued 5,000 5% Debentures at Rs 250 each, at a discount of Rs 50 per debenture payable as follows.
Rs. 50 on Application
Rs. 100 on Allotment
Rs. 50 on first and final call.
All the debentures were subscribed and the money duly received upto the stage of allotment.
Pass the Journal entries related to the above information.

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• Q15

Karnataka Co. Ltd. had the following on 31-3-2014:

 Current Assets Rs 2,40,000 Current Liabilities Rs 60,000 Quick Assets Rs 1,20,000

Calculate :
(i) Current Ratio
(ii) Quick Ratio

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• Q16

From the following ledger balances prepare Receipts and Payments A/c of Bharani Charitable Trust.

 Particulars Amount (Rs) Particulars Amount (Rs) Cash in hand 6,000 Subscriptions Received 12,000 Periodicals cost 600 Rent paid 5,000 Furniture bought 19,000 Salary paid 4,000 Legacies received 18,000 Electricity Charges 800 Postage 200

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• Q17

Explain the stages of data processing cycle.

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• Q18

Following are the particulars related to Pushpak Co. Ltd., prepare machinery A/c and depreciation A/c for four years, charging depreciation at 10% p.a. on 31st March every year under straight line method.

(a) Machine “X” purchased on 1-4-2009 at Rs 50,000 and spent further cost of Rs 10,000 for installation.
(b) Machine “Y” purchased on 30-6-2010 at a cost of Rs 40,000.
(c) Machine “X” sold on 30-9-2011 for Rs 42,400.

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• Q19

Srikanth, Girish and Manju are partners sharing profits and losses equally. Their balance sheet as on 31-3-2014 was as follows :

 Balance Sheet as on 31.3.2014 Liabilities Amount Rs Assets Amount Rs Creditors 30,000 Cash 24,000 Bills payable 20,000 Bills receivables 28,000 Bank overdraft 25,000 Stock 36,000 Reserve Fund 15,000 Investments 9,000 Capitals Debtors 20,000 Srikanth 60,000 Furniture 25,000 Girish 50,000 Machinery 32,000 Manju 30,000 1,40,000 Buildings 50,000 Profit-loss A/c 6,000 2,30,000 2,30,000

(a) Goodwill of the firm is created Rs 18,000 (Retain in the business).
(b) Maintain provision for doubtful debts at 5% on Debtors.
(c) Increase stock by Rs 4,000.
(d) Depreciate Machinery and Furniture by 10% each.

Prepare :
(i) Revaluation A/c
(ii) Goodwill A/c
(iii) All the partner’s capital A/c
(iv) Balance Sheet as on 1-4-2014

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• Q20

Girija and Sudha are partners sharing profits and losses in the ratio of 3 : 2. They dissolved their firm on 31-3-2014.

 Balance Sheet as on 31.3.2014 Liabilities Amount Rs Assets Amount Rs Creditors 20,000 Bank 15,000 Bills Payable 17,000 Debtors 25,000 Girija’s Loan 21,000 Less: Provision 1,000 24,000 Reserve Fund 10,000 Investments 10,000 P/L A/c 12,000 Stock 14,000 Capitals : Furniture 16,000 Girija 44,000 Motor car 30,000 Sudha 40,000 84,000 Computer 25,000 Buildings 30,000 1,64,000 1,64,000

The details available are:

(a) Assets realised as follows :
 Debtors Rs 22,000 Stock Rs 16,000 Furniture Rs 14,000 Motor car Rs 25,000 Buildings Rs 40,000

(b) Investment is taken over by Girija at Book value.
(c) Computer is taken over by Sudha at 10% less.
(d) All liabilities are paid in full.
(d) Realisation on Expenses Rs 2,500.

Prepare :
(i) Realisation A/c
(ii) Partners capital A/c
(iii) Bank A/c

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• Q21

Varsha Co. Ltd. issued 10,000 Preference Shares at Rs 100 each at a premium of Rs 5 per share payable as follows :

Rs 10 on Application
Rs 45 on Allotment (including premium)
Rs 30 on First call
Rs 20 on Final call

All the shares were subscribed and the money duly received except on final call for 500 shares. The Directors forfeited these shares and re-issued at Rs 90 each fully paid.
Pass the necessary Journal Entries related to the above information.

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• Q22

Following is the Trial Balance of Kumar Co. Ltd., Davanagere, as on 31-3-2014.

 Trial Balance as on 31. 3. 2014 Sl. No. Name of Accounts Debit Balance (Rs) Credit Balance (Rs) 1. Share Capital 10,000 Eq. Shares of Rs 10 each — 1,00,000 2. Stock on 1-4-2013 75,000 — 3. Purchases/Sales 1,05,000 2,30,000 4. Returns 10,000 5,000 5. Wages 15,000 — 6. Salaries 20,000 — 7. Gas and Water 9,000 — 8. Sundry Expenses 1,000 — 9. Preliminary Expenses 12,000 — 10. Commission 6,000 5,000 11. Debtors/Creditors 30,000 20,000 12. Goodwill 25,000 — 13. Furniture 10,000 — 14. Plant and Machinery 40,000 — 15. Buildings 50,000 — 16. P/L Appropriation A/c — 24,500 17. Reserve Fund — 24,000 18. Bad Debts 2,000 — 19. Investments 25,000 — 20. Interest on Investment — 1,500 21. Cash at Bank 20,000 — 22. 10% Debentures — 50,000 23. Interest on Debentures 5,000 — 4,60,000 4,60,000

(a) Depreciate buildings at 10%
(b) Write off $\frac{1}{3}$ of preliminary Expenses
(c) Transfer Rs 10,000 to Reserve Fund
(d) Dividend declared at 10% for the current year
(e) Closing Stock Rs 1,25,000.

Prepare :
(i) Income Statement for the year ending 31-3-2014.
(ii) Position statement.

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• Q23

From the following Balance Sheets of Narayan Industries Ltd., computer the trend percentage using 31-3-2011 as the base year.

 Particulars 31-3-2011 (Rs) 31-3-2012 (Rs) 31-3-2013 (Rs) Share Capital 1,00,000 1,25,000 1,50,000 Reserves 50,000 75,000 75,000 Loans 1,00,000 50,000 25,000 Creditors 1,50,000 2,00,000 1,00,000 Buildings 1,00,000 1,25,000 1,50,000 Plant and Machinery 1,00,000 1,25,000 50,000 Stock 1,25,000 1,25,000 75,000 Debtors 50,000 50,000 50,000 Cash at Bank 25,000 25,000 25,000

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• Q24

Following is the Balance Sheet and Receipts and Payments Account of Bengaluru Education Society.

 Balance Sheet as on 31.3.2013 Liabilities Amount Rs Assets Amount Rs O/S Salaries 5,000 Cash at Bank 22,000 Building Fund 50,000 Books 25,000 Capital Fund 72,500 Furniture 30,000 Buildings 50,000 O/S Subscription 500 1,27,500 1,27,500
 Receipts and Payments Account for the year ended 31.3.2014 Dr. Cr. Receipts Amount (Rs) Payments Amount (Rs) To Balance b/d 22,000 By Salaries 20,000 To Subscriptions 18,800 By Printing and Stationery 2,000 To Entrance fee 10,000 By Office expenses 4,000 To Sale of old Newspaper 200 By Books Bought (1-4-2013) 5,000 By Newspaper Subscription 500 By Refreshment Expenses 600 By E-mail charges 200 By Balance c/d 18,700 51,000 51,000

(a) O/S subscription for 31-3-2014 Rs 5,000.
(b) O/S Salary for 31-3-2014 Rs 600.
(c) Half of the Entrance fee is to be capitalised.
(d) Depreciate Furniture at 10% and Books at 30%.

Prepare :
(i) Income and Expenditure A/c for the year ending 31-3-2014
(ii) Balance Sheet.

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• Q25

How do you treat the following in the absence of partnership deed?
(a) Interest on capital
(b) Interest on drawings
(c) Interest on loan
(d) Distribution of profit or losses
(e) Salary to partner.

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• Q26

Write the pro-forma of Vertical Balance Sheet of the Joint Stock Company with