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Instructions
i. This paper consists of 7 questions.
ii. All the questions are compulsory.
iii. Question No. 1 carries 15 marks.
iv. Question No. 2 carries 8 marks.
v. Question Nos. 3, 4 and 5 carry 10 marks each.
vi. Question No. 6 carries 12 marks.
vii. Question No. 7 carries 15 marks.
viii. Use of calculator is prohibited.

Note:
i. Question No. 1 consists of five parts (A, B, C, D and E), out of which any three are to be attempted.
ii. There exists an internal choice in question nos. 2, 3 and 5.

Question 1
  • Q1

    Q.1  (A) Answer the following questions in ‘one’ sentence each:             [5 Marks]
     

    1. What is ‘liability of partners’?

    2. What is meant by ‘capital fund’?

    3. What is ‘gain ratio’?

    4. What do you mean by ‘issue of shares at premium’?

    5. What are ‘noting charges’?
     

    VIEW SOLUTION

  • Q2

    Q.1  (B) Write a word / term / phrase which can substitute each of the following statements:         [5 Marks]
     

    1. Excess of income over expenditure of a ‘not for profit’ concern.

    2. Debit balance of revaluation account.

    3. The debentures which are convertible into shares.

    4. A person who draws a bill of exchange.

    5. An asset which can be converted into cash immediately.
     

    VIEW SOLUTION

  • Q3

    Q.1  (C) Select the most appropriate alternative from those given below and rewrite the statements:         [5 Marks]
     

    1. Dissolution expenses are credited to ___________
    a. Realisation account
    b. Cash/ Bank account
    c. Partners’ capital account
    d. Partners’ loan account

    2. Prepaid expenses are shown on the ____________ side of balance sheet.
    a. Assets
    b. Liability
    c. Debit
    d. Cash

    3. A bill is drawn on 23rd Sept, 2013 at 4 months would be payable on __________
    a. 24th Jan. 2014
    b. 25th Jan. 2014
    c. 26th Jan. 2014
    d. 25th Jan. 2013

    4. Capital Balance is ascertained by preparing ________________
    a. Statement of Affairs
    b. Cash account
    c. Drawing account
    d. Debtor’s account

    5. From financial statement analysis, the creditors are interested to know ________
    a. Liquidity
    b. Profit
    c. Share
    d. Share capital
     

    VIEW SOLUTION

  • Q4

    Q.1  (D) State whether the following statements are True or False:             [5 Marks]
     

    1. Balance Sheet is a nominal account.

    2. Drawee can transfer the ownership of a bill.

    3. Debit balance of insolvent partner’s capital account is known as ‘capital deficiency’.

    4. A bill drawn in India and payable in Japan is a foreign bill.

    5. Under single entry system it is not possible to prepare trial balance.
     

    VIEW SOLUTION

  • Q5

    Q.1  (E) Prepare a specimen of Bill of Exchange from following information: [5 Marks]
     

    Drawer - Shri Mahesh Patil, Plot No. 25,, “Ganesh Nivas”, Mahesh Nagar, Koregaon.

    Drawee - Shri Vijay Jadhav, “Saket” M.G. Road, Pune - 11

    Payee - Shri Sanjay Bornare, Vaijapur.

    Period of bill - 60 days.

    Date of bill : 16th March, 2013

    Amount of bill - ₹ 15,000

    Date of acceptance - 20th March, 2013.
     

    VIEW SOLUTION

  • Q6

    Q.2  Mr. Anil keeps his books by single entry method. Following are the details of his business:           [8 Marks]

     
    Particulars 01.04.2012
    Amount
    (Rs)
    31.03.2013
    Amount
    (Rs)
    Cash in hand 10,000 16,000
    Cash at bank 20,000 36,000
    Stock 16,000 24,000
    Furniture 18,000 18,000
    Plant and Machinery 60,000 90,000
    Creditors 15,000 18,000
    Debtors 24,000 30,000

    During the year Mr. Anil has withdrawn Rs 10,000 for his private purpose and bought goods of Rs 2,000 for household use.
    On 1st October 2012, he sold his household furniture for Rs 2,000 and deposited the same amount in the business bank account.
    Provide depreciation on machinery @ 10% p.a. (assuming additions were made on 1st October, 2012) and on furniture @ 5%.

    Prepare:
    (a) Opening Statement of Affairs.
    (b) Closing Statement of Affairs.
    (c) Statement of Profit or Loss for the year ended 31st March 2013.
     
    OR

    Q.2 (A) What are the components of current ratio?                       [4 Marks]
    Q.2 (B) State the objectives of financial statements from the viewpoint of a business concern.  [4 Marks] 

    VIEW SOLUTION

  • Q7

    Q.3  Akash and Suraj are partners in a firm sharing profits and losses in the ratio 3:2. Their balance sheet as on 31st March, 2013 was as follows:        [10 Marks]

     
    Balance Sheet as on
    31st March, 2013
    Liabilities Amount
    (Rs)
    Assets Amount
    (Rs)
    Capital A/c   Furniture 2,100
    Akash 50,000 Stock 28,700
    Suraj 50,000 Land and Building 35,000
    General Reserve 10,000 Plant and Machinery 49,000
    Sundry Creditors 60,000 Sundry Debtors 63,000
    Bills Payable 17,000 Cash 9,200
      1,87,000   1,87,000
           

    They agreed to admit Sanjay in their partnership on 1st April, 2013, on the following terms:
     
    (1) Sanjay should bring Rs. 1,500, as his share of goodwill in the firm, and Rs. 2,000 as his capital.

    (2) Reserve for doubtful debts is to be provided @ 5% on debtors.

    (3) Land and building be depreciated at 10% p.a.

    (4) Plant and Machinery to be depreciated @ 5% and stock to be depreciated @ 10% p.a.

    (5) The new profit sharing ratio will be 2: 1: 1.

    Prepare:

    (a) Revaluation Account.

    (b) Partners’ Capital Accounts.

    (c) New Balance Sheet of the firm.

    OR.

    Q.3  Given below is the balance sheet of Vaishali, Madhuri and Shobha, who were sharing profits and losses in the ratio of 3 : 3 : 2.      [10 Marks]
     
    Balance Sheet as on
    31st March, 2012
    Liabilities Amount
    (Rs)
    Assets Amount
    (Rs)
    Creditors 34,800 Cash 21,600
    Bills Payable 8,800 Machinery 34,800
    Capital A/c   Debtors 50,000
    Vaishali 48,000 Stock 25,200
    Madhuri 52,000 Furniture 16,000
    Shobha 36,000 Buildings 48,000
    Reserved Fund 16,000    
      1,95,600   1,95,600
           
     
    On 1st April, 2012 Shobha retired from the firm on the following terms:
     
    (1) Assets be revalued as under:
     
    Stock Rs. 24,000, Machinery Rs. 32,000, Furniture Rs. 16,800.

    (2)  R.D.D. be maintained at 4% on debtors.
     
    (3) An item of Rs. 400 from creditors is no longer a liability and hence should be properly adjusted.
     
    (4) The amount due to Shobha be transferred to her loan account.

    Pass necessary Journal Entries in the books of the firm. 

    VIEW SOLUTION

  • Q8

    Q.4  Ramesh sold goods to Ganesh on credit for Rs. 20,000. Ganesh accepted a bill of Rs. 20,000 for 3 months, drawn by Ramesh on the same date. On the due date Ganesh dishonoured his acceptance. Then Ganesh approached Ramesh and requested for renewal of the bill. Ramesh agreed on the condition that Ganesh should pay Rs. 10,000 in cash and accept a new bill for 2 months for the balance amount plus interest Rs. 200. The new bill was drawn by Ramesh and accepted by Ganesh. However one month before the due date Ganesh retired his acceptance by paying Rs. 9,900. Pass necessary Journal Entries in the books of Ramesh.         [10 Marks] 

    VIEW SOLUTION

  • Q9

    Q.5  Mr. Aaba and Mr. Baba are equal partners whose Balance Sheet as on 31st March, 2012 was as under:      [10 Marks]  
     

    Balance Sheet as on
    31st March, 2012
    Liabilities Amount
    (Rs)
    Assets Amount
    (Rs)
    Sundry Creditors 16,000 Cash in hand 500
    Capital A/c   Stock 4,500
    Aaba 2,000 Debtors 4,000
    Baba 2,000 Plant and Machinery 5,000
        Furniture 2,000
        Land and Building 4,000
      20,000   20,000
           

    Due to weak financial position of the partners the firm is dissolved. Aaba and Baba are not to contribute anything from their private estate, hence they are declared insolvent.

    The assets are realised as follows:

    Stock Rs. 3,000, Plant and Machinery Rs. 3,000. Furniture Rs. 1,000, Land and Building Rs. 2,000 and Debtors Rs. 500.

    You are required to prepare necessary Ledger Accounts to close the books of the firm.
     
    OR

    Q.5  Joshi-Patil Ltd. issued 2,000, 10% debentures of Rs. 100 each, payable Rs. 20 on application and the balance on allotment. Company received applications for 2,500 debentures, out of which applications for 2,000 were allotted fully and remaining applications were rejected and the money refunded. Journalise the above transactions, assuming that all the sums were received.  [10 Marks] 

    VIEW SOLUTION

  • Q10

    Q.6  Following is the Balance Sheet and Receipts and Payments Account of the Sevagiri Hospital, Satara. Prepare Income and Expenditure account for the year ended on 31st March, 2013 and Balance Sheet as on that date. [12 Marks]

    Balance sheet as on 
    1st April, 2012
    Liabilities Amount (Rs) Assets Amount (Rs)
    Capital Fund 10,00,000 Cash in hand 6,000
    Outstanding Salaries 22,000 Cash at bank 30,000
    Medical bill unpaid 6,000 Land and Building 8,00,000
        Furniture 70,000
        Equipments 1,20,000
        Outstanding Subscription 2,000
      10,28,000   10,28,000
           
     
    Receipts and Payments Account 
    for the year ending 31.03.2013
    Dr.  Cr. 
    Receipts Amount (Rs) Payments Amount (Rs)
    To Balance b/d   By Salaries [including of PY] 1,10,000
    Cash in hand 6,000 By Medicines 48,000
    Cash at bank 30,000 By Equipment purchased 20,000
    To Subscription [includes 2000
    received for PY]
    1,30,000 By Taxes 3,000
    To Sale of old furniture [BV Rs. 30,000] 20,000 By General Expenses 8,600
    To Donations [revenue] 44,000 By Balance c/d  
    To Life Membership Fees 25,000 Cash in hand 15,400
        Cash at bank 50,000
      2,55,000   2,55,000
           
     
    Consider the following adjustments:
     
    (1) Outstanding subscription Rs. 15,000

    (2) Capitalise the amount of life membership fees.

    (3) Pre-paid taxes Rs. 500.

    (4) Outstanding salary Rs. 12,000.

    (5) Write off depreciation Rs. 20,000 from land and building and Rs. 30,000 from equipments.

    (6) Outstanding medicine bill as on 01.04.2012 is still due.
     

    VIEW SOLUTION

  • Q11

    Q7. From the following Trial Balance of M/s Sanjay and Keshav, you are required to prepare Trading and Profit and Loss Account, for the year ended 31st March 2013 and Balance Sheet as on that date after taking into account the following additional information.  [15 Marks]
     

    Trial Balance as on
    31st March, 2013
    Debit Balances Amount
    (Rs)
    Credit Balances Amount
    (Rs)
    Opening Stock 1,80,000 Sales 5,25,000
    Bills Receivable 80,000 Rent 22,000
    Purchases 2,40,000 Bills Payable 78,000
    Bad debts 20,000 Sundry Creditors 100000
    Salary and Wages 24,000 Capital Account  
    Discount 9,000 Sanjay 5,00,000
    Carriage Inward 12,000 Keshav 3,00,000
    Travelling Expenses 13,000    
    Cash in hand 38,000    
    Furniture 2,80,000    
    Insurance 12,000    
    Land and Building 4,00,000    
    Postage and Telegram 7,000    
    Sundry Debtors 2,10,000    
      15,25,000   15,25,000
           
             
    Additional Information:
     
    (1) Insurance paid in advance Rs. 3,000.

    (2) Depreciation provided on furniture at 10%.

    (3) Salary and wages outstanding Rs. 6,000.

    (4) Rent received in advance Rs. 5,000.

    (5) Closing stock as on 31.03.2013 Rs. 2,00,000.
     

    VIEW SOLUTION

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