ACCOUNTS FULL COURSE TEST

Time Allowed: 3:00 Maximum Marks: 100

STRICT INSTRUCTIONS

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PAPER INSTRUCTIONS :-

QUESTION 1 IS COMPULSORY, SOLVE ANY 4 OUT OF REMAINING 5

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Q.No Questions Marks

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MCQ. The financial statement must disclose all the relevant and reliable information in accordance with the full disclosure 2
1 principle.

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a. True
b. False
c. Partly true partly false
d. Neither false neither true

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MCQ. Interest on savings bank that is allowed or credited by bank is generally recorded in cash book prior to it being 2
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2 recorded by bank.
a. True
b. False
c. Partly true partly false
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d. Neither false neither true

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MCQ. Warehouse rent paid for storage of finished inventory should be included in the costof finished inventory.state 2
3 true or false alone with reason.
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a. True
b. False
c. Partly true partly false
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d. Neither false neither true

MCQ. The provision for discount on debtors is calculated before deducting the provision for doubtful debts from debtors. 2
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4 a. True
b. False
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c. Partly true partly false

d. Neither false neither true
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MCQ. Profits computed under single entry system by different business entities are not comparable. 2
5 a. True
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b. False
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c. Partly true partly false

d. Neither false neither true
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MCQ. Debentures suspense account appears on the liability side of the balance sheet. 2
6 a. True
b. False
c. Partly true partly false
d. Neither false neither true

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Q.No Questions Marks
Q. Prepare the Bank Reconciliation Statement of M/s. R.K. Brothers on 30th June 2018 fromthe 4
1(b) particulars given below:
(i) The Bank Pass Book had a debit balance of ₹ 25,000 on 30th June, 2018.
(ii) A cheque worth ₹ 400 directly deposited into Bank by customer but no entry wasmade
in the Cash Book.
(iii) Out of cheques issued worth ₹ 34,000, cheques amounting to ₹ 20,000 only were
presented for payment till 30th June, 2018.
(iv) A cheque for ₹ 4,000 received and entered in the Cash Book but it was not sent tothe
Bank.
(v) Cheques worth ₹ 20,000 had been sent to Bank for collection but the collection was
reported by the Bank as under.
(1) Cheques collected before 30th June, 2018, ₹ 14,000
(2) Cheques collected on 10th July, 2018, ₹ 4,000
(3) Cheques collected on 12th July, 2018, ₹ 2,000.
(vi) The Bank made a direct payment of ₹ 600 which was not recorded in the Cash Book.
(vii) Interest on Overdraft charged by the bank ₹ 1,600 was not recorded in the CashBook.
(viii) Bank charges worth ₹ 80 have been entered twice in the cash book whereas Insurance
charges for ₹ 70 directly paid by Bank was not at all entered in the Cash Book.
(ix) The credit side of bank column of Cash Book was under cast by ₹ 2,000.

Q. Enter the following transactions in Cash Book with Discount and Bank Columns. Cheques are first treated as cash receipt. 4

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1(c) 2022 Rs

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Jan.1 Chandrika commences business with Cash 20,000

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“ 3 He paid into Current A/c 19,000
“ 4 He received cheque from Kirti & Co. on account 600

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“ 7 He pays in bank Kirti & Co.’s cheque 600
“ 10 He pays Rattan & Co. by cheque and is allowed discount Rs 20 330
“ 12 Tripathi & Co. pays into his Bank A/c 475
“ 15 He receives cheque from Warshi and allows him discount Rs 35

st 450
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" 20 He receives cash Rs 75 and cheque Rs 100 for cash sale
" 25 He pays into Bank, including cheques received on 15th and 20th 1,000
" 27 He pays for cash purchase 275
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" 30 He pays sundry expenses in cash 50

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Q. Describe in brief, the alternative measurement bases, for determining the value at which an element can be 8
2(a) recognized in the balance sheet or statement of profit and loss.
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Q. On 1st October, 2022 Pioneer Equipment Limited received applications for 2,50,000 Equity Shares of Rs 100 each to be 12
2(b) issued at a premium of 25 per cent payable as :
On Application Rs 25
On Allotment Rs 75 (including premium) Balance Amount on Shares As and when
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required
The shares were allotted by the Company on October 20, 2022 and the allotment money was duly received on October 31,
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2022.
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Record journal entries in the books of the company to record the transactions in connection with the issue of shares.

Q. Closing stock is valued by Zebra Stores on generally accepted accounting principles. Stock taking for the year ended 31st 10
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3(a) March, 2020 was completed by 10th April, 2020, the valuation of which showed a stock figure of ` 5,02,500 at cost as on
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the completion date. After the end of the accounting year and till the date of completion of stock taking, sales for the next
year were made for ` 20,625, profit margin being 33.33 percent on cost. Purchases for the next year included in the stock
amounted to ` 27,000 at cost less trade discount 10 percent. During this period, goods were added to stock of the mark up
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price of ` 900 in respect of sales returns. After stock taking it was found that there were certain very old slow moving
items costing ` 3,375 which should be taken at ` 1,575 to ensure disposal to an interested customer. Due to heavy floods,
certain goods costing ` 4,650 were received from the supplier beyond the delivery date of customer. As a result, the
customer refused to take delivery and net realizable value of the goods was estimated to be ` 3,750 on 31st March, 2020.
You are required to calculate the value of stock for inclusion in the final accounts for the year ended 31st March, 2020

Q. The LG Transport company purchased 10 trucks at Rs 45,00,000 each on 1st April 2019. On October 1st, 2021, one 5
3(b) of the trucks is involved in an accident and is completely destroyed and Rs 27,00,000 is received from the insurance in full
settlement. On the same date another truck is purchased by the company for the sum of Rs 50,00,000. The company write
off 20% on the original cost per annum. The company observe the calendar year as its financial year.

Give the motor truck account for two year ending 31 Dec, 2022.

Q. (a) Karuna decided to start business of fashion garments under the name of M/s. Designer Wear on 1st April, 2020. She 5
3(c) had a saving of about ` 10,00,000. She invested ` 3,00,000 out of her savings and borrowed equal amount from bank. She
purchased a commercial space for ` 5,00,000 and further spent ` 1,00,000 on its renovation to make it ready for business.

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Q.No Questions Marks
Q. From the following information of a club show the amounts of match expenses and match fund in the appropriate Financial 5
4(a) Statements of the club for the year ended on 31st March, 2022:
Details Amount (₹)
Match expenses paid during the year ended 31st March 2022 1,10,000
Match fund as on 01.04.2021 30,000
Donations for Match fund (received during the year) 55,000
Proceeds from the sale of the match tickets (during the year) 20,000

Q. Rakesh started his business on 1st of April 2021. He invested a capital of Rs 1,00,000. On 31 st March 2022, he has the 5
4(b) following information available as per the Single-entry system maintained by him.
₹
Cash balance (counted) 3,200
Inventory (physically verified) 34,800
Receivable from Ajay against credit sales 31,000
Machine 85,000
Payable to Vinod towards credit purchase 12,000
Loan taken from Bank 10,000
Drawings made during the year 24,000

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You are required to calculate the profit or loss earned by Rakesh for the year ended 31st March 2022.

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Q. Koinal Chemicals Ltd. issued 20,00,000, 10% debentures of `50 each at premium of 10%, payable as ` 20 on 10
4(c) application and balance on allotment. Debentures are redeemable at par after 6 years. All the money due on allotment was

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called up and received. Record necessary entries when premium money is included in allotment money.

Q. The following was the balance sheet of A, B and C who were equal partners on January 1, 2022 10

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5(a) Liabilities RS Assets RS
Bills Payable 3,000 Cash 1,000
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Creditors 6,000 Debtors 10,000
Capital Accounts : Stock 12,000
A 20,000 Furniture 5,000
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B 15,000 Buildings 25,000

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C 10,000 Bills Receivable 1,000

54,000 54,000
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They agree to take D into partnership and give him a 1/4 share in the profits on the following terms:
(1) D should bring in RS 6,000 for goodwill and RS 10,000 as capital;
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(2) one-half of the goodwill shall be withdrawn by old partners;

(3) stock and furniture be depreciated by 10%.
(4) a liability of RS 1,300 be created against bills discounted;
(5) the building be valued at RS 40,000;
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(6) the values of liabilities and assets other than cash are not to be altered.
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Give the necessary entries to give effect to the above arrangement; prepare revaluation account and opening balance
sheet of the firm as newly constituted.
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Q.No Questions Marks
Q. Diya, Riya & Kiya are partners of M/s. DRK Fabrics sharing profits and losses in the ratio of 2:1:2. On 31st March 2022 10
5(b) their Balance Sheet was as under:
Liabilities RS Assets RS
Capitals : Land & Building 1,65,000
Diya 1,50,000 Furniture 75,000
Riya 1,80,000 Joint life Policy 60,000
Kiya 70,000 Inventory 88,740
General Reserve 1,40,000 Trade Receivable 96,750
Trade payables 60,000 Bank 1,14,510
6,00,000 6,00,000
Kiya died on 30th September, 2022.
The partnership deed provides as follows:
(a) That partners be allowed interest at 12% p.a. on their capitals, but no interest be charged on drawings.
(b) Upon the death of a partner, the goodwill of the firm be valued at one years’ purchase of the average net profits (after
charging interest on capital) for the four years to 31st March preceding the death of a partner. The profits of the firm
before charging interest on capitals were
2018-19 1,62,000

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2019-20 1,99,000

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2020-21 1,87,000

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2021-22 1,96,000
Average capital during preceding four years may be assumed as ₹ 3,00,000

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(c) Profits till the date of death to be ascertained on the basis of average profit of previous four years
(d) Upon the death of a partner, she is to be credited with her share of the profits, interest on capitals etc. calculated till
the date of death

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After the death of Kiya
1. ₹ 2,00,000 was received from insurance company against Joint life Policy.
2. Land & Building was appreciated by 20%, Furniture to be depreciated by 10%, inventory to be revalued at ₹ 80,000.
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Bad debts amounted ₹ 1760.
3. Amount payable to Kiya was paid in cash.
You are required to prepare
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1. Revaluation A/c
2. Partners’ Capital A/c
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3.
1. Balance Sheet as Kumar
on 30thare
September
partners 2022, assuming other Assets and liabilities
2:2:1. remaining thedecided
same. to dissolve the
Q. Amit, Sumit, and sharing profit and losses in the ratio The partners 20
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6(a) partnership on 31st March 2022 when their Balance Sheet was as under:

Liabilities Amount Assets Amount

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Capital Accounts: Land & Building 1,35,000

Amit 55,200 Plant & Machinery 45,000
Sumit 55,200 Furniture 25,500
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General Reserve 61,500 Investments 15,000

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Kumar's Loan A/c 15,000 Book Debts 60,000

Loan from D 1,20,000 Less: Prov. for bad debts (6,000) 54,000
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Trade Creditors 30,000 Stock 36,000

Bills Payable 12,000 Bank 13,500
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Outstanding Salary 7,500 Capital Withdrawn:

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Kumar 32,400
3,56,400 3,56,400
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The following information is given to you:

(i) Realization expenses amounted to ₹ 18,000 out of which ₹ 3,000 was borne by Amit
(i)
(ii) A creditor agreed to takeover furniture of book value ₹ 12,000 at
₹10,800.Therestofthecreditorswerepaidoffatadiscountof6.25%.
(i) (ii (iii) The other assets realized as follows:
Furniture - Remaining taken over by Kumar at 90% of book value
Stock - Realized 120% of book value
Book Debts - ₹ 12,000 of debts proved bad, remaining were fully realized
Land & Building - Realized ₹ 1,65,000
Investments -Taken over by Amit at 15% discount
(iv)
For half of his loan, D accepted Plant & Machinery and ₹ 7,500 cash. The remaining amount was paid at a discount of 10%.
(v) Bills payable were due on an average basis of one month after 31st March 2022, but they were paid immediately
on 31st March @ 6% discount "per annum".
Prepare the Realization Account, Bank Account and Partners’ Capital Accounts in the books of Partnership firm.

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