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ACHIEVERS COACHING CENTRE (REGISTERED 10155)
Time : 3 hrs M.M:80
1. Give any two features of receipt and payment account
2. Give two circumstances where gaining ratio can be
applied.
3. What is meant by super profit? 4. What are unsecured
debentures?
5. What do you mean by calls in arrear?
6. Raves club gives you the following information during the
year 2008-09Sports fund Rs6, 00,000
Sports fund investment @7%p.a Rs4, 00,000Expenses incurred
during the year on Sports PrizesRs1, 50,000Donation received on
Sports fund during the yearRs75, 000
Interest received on fund investment during the yearRs20,
000
How will you deal with the following in the books of the club?
3
7. AZEE ltd issued 10,000 shares of Rs10 payable as follows: Rs3
on application payable on 1st march; Rs2 oallotment payable on 1st
may; Rs2 payable on I call payable on 1st August and Rs3 payable on
final call on
December. All the shares were fully subscribed and paid. Atman
who had 4,000 shares paid the amount du
with I call and II call with allotment .Rashi who had 2,000
shares paid II call money with first call.Directors decided to
allow interest on calls in advance according to provision of Table
A. Calculate interest
calls in advance. 3
8. Rs.5, 00,000 shares of Rs10 each were issued for public
subscription at a premium 10%. Full amount waspayable on
application. Applications were received for 75,000 shares and the
board decides to allot the sha
on pro rat basis. Pass journal entries. 3
9 A and B two partners contributed Rs24, 000 and Rs20, 000
respectively as capital. It is agreed that besides inteon capital
@8%p.a. they will get Rs500 per month as salary. Half of the
residual profit will be distributed betw
them in their capital ratio and other half equally. For the year
ended 31 st march 2007, the firm made a profit of
Rs41, 920 and during the period the partners withdrew from the
partnership: A Rs8, 400 and B Rs7, 200 .Show
the profit and loss appropriation account and partners capital
accounts in the books of the firm.4
10. (a) X and Y are partners with capital Rs30,000 and Rs10,000
respectively. They admit Z as a partner fo
1/4th share in the profit of the firm. Z brings Rs15,000 as his
capital.Journalise for goodwill
(b) A and B are in the partnership sharing profits 3:2. They
decide to change their profit sharing ratio to 3:2The capitals of A
and B after adjustments are Rs80,000 and Rs60,000 respectively. The
capital accounts o
partners are to be adjusted on the basis of new profit sharing
ratio.Calculate the amount of cash to be paid off or brought in by
the partners for the adjustment of capital and p
necessary journal entries. 4
11. A company forfeited 2000 shares of Rs10 each issued at a
discount of 10% for non-payment of Rs2 and final c
of Rs2 per share was not called. 500 of these shares were
re-issued at Rs5,Rs8 called up and remaining were reissued at Rs8,
fully called up. 4
2. Following is the receipts and payment account of Lions club
for the year ended 31st march 2007.RECEIPTS AND PAYMENTS ACCOUNTS
FOR THE YEAR ENDED 31ST MARCH 07
Receipts Amount (Rs.) Payments Amount (Rs.)
To cash in hand 8320 By rent of hall 3640
To subscription 2006 2000
2007 21,0002008 3,000 26000
By salaries 5200
To entrance fees 4100 By purchase of sports
equipments
16640
To sale of refreshments 9880 By dance expenses 4940
To sale of dance tickets 5850 By supply of refreshment 6760
To interest on investments @ 7%To Prize fund
45505,000
By honorariumBy prize awarded
10405,200
By sundry expenses 3250
By electricity changes 1820
______ By cash at bank 1521063,700 63,700
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Following additional information's are also provided to you :i)
Following were the assets and liabilities on 31st March, 2006 :
Sports equipment Rs. 6,760, subscription in arrears Rs. 2,100,
Furniture Rs. 12,480 Liabilities-Accrued rent
780 and subscription received in advance Rs. 520.
ii) 'Following were the assets and liabilities on 31st March
2007 :Sports equipments Rs. 19,760, Subscription in arrear as on
Rs. 1,690, Furniture Rs. 11,180, Liabilities-accr
rent Rs. 390.
iii) Half of the Entrance Fees is to be capitalized.You are
required to prepare income and expenditure account also calculate
opening capital fund
3. On 1st July 2009. Akash Ltd gave notice of their intention to
redeem their outstanding Rs. 8,00,000 Debentures on 1st January,
2010 @ rs. 102 each and offered the holders the following
options-
a) To subscibe for (i) 8% cumulative preference shares of Rs. 20
each at Rs. 22.50 per share which was accepted
debenture holders of Rs.3,42,000 or (ii) equity shares were
issued @96%, accepted by the holders of Rs. 2,88,Debentures.
b) Remaining debentures to be redeemed for cash if neither of
the option under (a) was accepted. Pass necessary jou
entries. 6
14. Pass journal entries for the following transactions in the
books of the firm on its dissolution:. An unrecorded liability of
Rs. 3,000 was settled by X at 70% , one of the partner of the
firm.
. Partners Loan of Rs. 50,000 was discharged at 90%.
. Loss on realisation amounted to Rs. 6,000. There were three
partners X,Y and Z sharing profits and losses of the:2:1.
d.Realisation expenses amounted to Rs. 2,000, B has to bear
these expenses.
e. Deferred Revenue Advertising Expenditure appeared at Rs.
28,000.
f. A typewriter of rs200 completely written off in the books of
the firm was used in settling an unrecorded liabof Rs500. 6
5. A, Band C were partners in a firm sharing profits equally:
Their Balance Sheet on.31.12.2007 stood as:
BALANCE SHEET AS AT 31.12.07LiabilitiesRs. Assets Rs.
A Rs. 30,000 Goodwill 18,000
B Rs. 30,000 Cash 38,000C Rs. 25,000 85,000 Debtors .
43,000Bills payable 20,000 Less: Bad Debt provision 3,000
40,000Creditors 18,000 Bills Receivable 25,000Workers Compensation
Fund 8,000 Land and Building 60,000Employees provident Fund 60,000
Plant and Machinery 40,000General Reserve 30,000
2,21,000 2,21,000It was mutually agreed that C will retire from
partnership and for this purpose following terms were agreed uponi)
Goodwill to be valued on 3 years purchase of average profit of last
4 years which were 2004 : Rs.50
(loss); 2005 : Rs. 21,000; 2006: Rs.52,000; 2007 : Rs.22,000.ii)
The Provision for Doubtful Debt was raised to Rs. 4,000.iii) To
appreciate Land by 15%.
iv) To decrease Plant and Machinery by 10%.v) Create provision
of Rs;600 on Creditors.vi) A sum of Rs.5,000 of Bills Payable was
not likely to be claimed.vii) The continuing partners decided to
show the firms capital at 1,00,000 which would be in their new
p
sharing ratio which is 2:3. Adjustments to be made in current
accountMake necessary accounts and prepare the Balance Sheet of the
new partners.
Q.16 X Ltd. invited applications for 11,000 shares of Rs. 10
each issued at 20% premium payable as:On application Rs. 3
(including Rs. 1 premium) On allotmentRs. 5 (including Rs. 1
premium)On 1st Call
Rs. 3On 2nd & final call Rs.1
Application was received for 24000 shares.Category I : One
fourth of the shares applied for allotted 2000 shares.Category II:
Three fourth the shares app
for allotted 9000 shares .Excess money is to be adjusted against
allotment only.
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Mr. Mohan holding 300 shares failed to pay allotment and two
calls and his shares were forfeited & re issued @ Rsfully
paid-up. Pass necessary journal entries
PART B
7) What will be the impact of Redemption of Debenture on a Debt
Equity Ratio of 2:1 of a company.
Give reasons.
8) Tax Refundresults in Inflow, Outflow or No Flow of Cash,
while preparing a Cash Flow Statement ?
9) What do you mean by Cash Equivalents ?
0) Name the 4 items that are to be presented under the head
Miscellaneous Expenditure of Companys
Balance Sheet.
1) Prepare a Comparative Income Statement with the help of the
following informations :
2) ROI 40%.Debt as part of capital employed is rs.8,00,000.rate
of interest is 10% tax rate is 50%.Calculatr profit available
equity shareholder
3) From the following information, prepare Cash Flow Statement
for KKS Ltd.
Additional information :
I. Investment purchased at the beginning of the year &
carrying rate of intrest@10% p.a.
.
Particulars 2007(Rs.) 2008(Rs.)
SalesCost of Goods Sold
Indirect Expenses
Income Tax
400,000 600,00060% of Sales 70% of Sales
50% of Gross Profit 40% of Gross Profit
50% of Net Profit before Tax 50% of Net Profit before Tax
Liabilities 31/03/08(Rs.) 31/03/09(Rs.) Assets 31/03/08(Rs.)
31/03/09(Rs.)
Equity Share Capital
Profit & Loss A/c
Bank Loan
Creditors
Outstanding RentProposed Dividend
Provision for Tax
500,000
200,000
100,000
50,000
5,00050,000
30,000
700,000
350,000
50,000
45,000
7,00070,000
50,000
Patents
Equipments
Furniture
Investments
StockDebtors
BankCash
100,000
200,000
300,000
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50,00080,000
200,0005,000
95,000
230,000
270,000
100,000
130,000120,000
300,00027,000
935,000 1,272,000 935,000 1,272,000
