SHREE D. J. DOSHI GURUKUL JR. OF COMMERCE
STD: XII DATE: 15/10/2022 I SEMESTER EXAMINATION
SUBJECT: BK MARKS: 80 DUR: 3.00 HRS.
Q.1.Attempt all of the following sub-questions [20]
(A) Do you agree or disagree with the following statements:
(1) The balance of Capital Account remains constant under Fixed Capital Method.
Ans: Agree
(2) The Person in whose favour the bill is endorsed is known as endorsee.
Ans: Agree
(3) Retiring partner is not entitled to share in General Reserve and Accumulated profit.
Ans: Disagree
(4) Income and Expenditure Account is Real Account.
Ans: Disagree
(5) Partnership firm is a Trading concern.
Ans: Disagree
(B) Select the most appropriate alternative from those given below and rewrite the statements:
(1) A proportion in which the continuing partners get the share of retiring partner is known as
(a) Old Ratio (b) New Ratio (c) Gain Ratio (d) Capital Ratio
(2) The person on whom the bill is drawn is called as
(a) Drawee (b) Payee (c) Drawer (d) None of the above
(3) Liability of partners in a partnership business is
(a) Limited (b) Unlimited (c) Limited and unlimited (d) None of the above
(4) Ajay and Vijay are two partners sharing profits and losses in the ratio 3:2. They decided to admit Sanjay for 1/5th share, the new profit and loss sharing ratio will be
(a) 12:8:5 (b) 4:3:1 (c) 12:8:1 (d) 12:3:1
(5) Donation for Scholarship Fund is
(a)Capital Receipt (b) Revenue Receipt (c) Capital Expenditure (d) Revenue Expenditure
(C) Find the odd one:
(1) Reserve Fund, Bank Loan, Building, Capital
(2) Admission fees, Sundry income, Donations for building, Sale of old newspaper
(3) Postage, Stationary, Dividend received, Advertisement.
(4) Bank overdraft, Library books, Stock of Drugs, Equipments.
(5) Notary Public, Drawer, Drawee, Payee.
(D) Complete the sentences:
(1) Excess of income over expenditure is termed as
Ans: Surplus
(2) shareholders are the real owners of the company.
Ans: Equity
(3) Deceased partner's Executor's Loan Account is shown on the Balance sheet
Ans: Liabilities Side
(4) Revaluations Account is also known as
Ans: Profit & Loss Adjustment Account
(5) Partnership business must be
Ans: Lawful
Q.2 Mr. Deep & Mr. Karan were in Partnership sharing Profit & Losses in the proportion of 3:1 respectively. Their Balance Sheet On 31st March, 2018 stood as follows.
Balance sheet as on 31st March 2018
|
Liabilities |
Amt |
Amt |
Assets |
Amt |
Amt |
|
Sundry Creditors Bills Payable Bank Overdraft Capital A/c: Deep Karan General Reserve |
60,000 20,000 |
40,000 10,000 11,000
80,000 8,000 |
Cash Sundry
Debtors Land
& Building Stock Plant
& Machine Furniture |
|
40,000 32,000 16,000 20,000 30,000 11,000 |
|
|
|
1,49,000 |
|
|
1,49,000 |
1. He shall have to bring in Rs. 20,000 as his capital for 1/5 share in future profit & 10,000 as his share of Goodwill.
2. A Provision for 5% doubtful debts to be created on Sundry Debtors.
3. Furniture to be depreciated by 20%
4. Stock should be appreciated by 5% and Building be appreciated by 20% 5. Capital A/c of all partners be adjusted in their new profit sharing ratio through cash account.
Prepare Profit and Loss Adjustment A/c, Partner's capital A/c, Balance sheet of new firm.
In the books of Firm
Revaluation A/c
Dr. Cr.
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To R.D.D. To Furniture To Partner’s Capital A/c: Deep (3/4) Karan (1/4)
|
300 100 |
1,600 2,200
400 |
By Stock By Land & Building |
|
1,000 3,200 |
|
|
|
4,200 |
|
|
4,200 |
Partner’s Capital A/c
Dr. Cr.
|
Particulars |
Deep |
Karan |
Subham |
Particulars |
Deep |
Karan |
Subham |
|
To Cash A/c To Balance c/d |
13,800 60,000
|
4,600 20,000 |
20,000
|
By Balance b/d By General Reserve By Cash A/c By Goodwill A/c By Revaluation A/c (Profit) |
60,000
6,000
7,500
300 |
20,000
2,000
2,500
100 |
20,000 |
|
|
73,800 |
24,600 |
20,000 |
|
73,800 |
24,600 |
20,000 |
Balance Sheet as on 31st March,2018
|
Liabilities |
Amount |
Amount |
Assets |
Amount |
Amount |
|
Capital A/c: Deep Karan Shubham Sundry Creditors Bills Payable Bank Overdraft |
60,000 20,000 20,000 |
1,00,000 40,000 10,000 11,000 |
Cash Sundry Debtors Less: R.D.D. Land & Building Add; Appriciation Stock Add: Appreciation Furniture Less; Depreciation Plant & Machinery |
32,000 1,600 16,000 3,200 20,000 1,000 11,000 2,200 |
51,600
30,400
19,200
21,000
8,800 30,000 |
|
|
|
1,61,000 |
|
|
1,61,000 |
Working Note;
1)
Calculation
of New ratio;
Balance Ratio = 1-- Share of new partner = 1 – 1/5 = 4/5
2)
New
Ratio : Old ratio X Balance Ratio
Deep’s
New Ratio = ¾ X 4/5 = 3/5
Karan’s
New Ratio = ¼ X 4/5 = 1/5
Shubham’s
New Ratio = 1/5 = 1/5
New Profit and Loss sharing ratio = 3:1:1
3) New Firm Capital = New Partner’s Capital + ( New Partner’s Capital X Reciprocal share of new partner X Balance Ratio )
= 20,000 + ( 20,000 X 5/1 X 4/5 )
= 20,000 + 80,000
= Rs. 1,00,000
Deep’s Capital = 3/5 X 1,00,000 = 60,000
Karan’s Capital = 1/5 X 1,00,000 = 20,000
Shubham’s Capital = 1/5 X
1,00,000 = 20,000
OR
Q.2 Rohan, Rohit and Sachin are partners in a firm sharing profit and losses in the proportion 3:1:1 respectively. Their Balance sheet as on 31st March 2018 is as shown below. [10]
Balance Sheet as on 31st March 2018
|
Laibilities |
Amount |
Assets |
Amount |
|
Creditors General
Reserve Bills Payable Capital A/c: Rohan Rohit Sachin |
40,000 50,000 25,000 1,25,000 1,00,000 50,000 |
Bank Debtors Livestock Building Plant &
Machinery Motor Truck Goodwill |
12,500 60,000 50,000 75,000 35,000 1,00,000 57,500 |
|
|
3,90,000 |
|
3,90,000 |
On1st April, 2018 Sachin retired and the following adjustments have been agreed upon. -Goodwill was revalued at Rs. 50,000
Assets and Liabilities were revalued as follows. Debtors Rs. 50,000, Live Stock, Rs. 45,000; Building Rs.1,25,000, Plant and Machinery Rs. 30,000, Motor Truck Rs. 95,000 and Creditors Rs.30,000
Rohan and Rohit contributed additional capital through Net Banking of Rs.50,000 and Rs. 25,000 respectively. to his Loan Account.
Balance of Sachin's Capital Account is transferred, Give Journal entries in the books of new firm.
In the Books of
Firm
Journal Entries
|
Date |
Particulars |
L/F |
Debit (Rs.) |
Credit (Rs.) |
|
2018 April 1 |
General Reserve
A/c Dr. To Rohan’s Capital A/c To Rohit’s Capital A/c To Sachin’s Capital A/c (Being
General Reserve distributed among partners) |
|
50,000 |
30,000 10,000 10,000 |
|
April 1 |
Revaluation A/c Dr. To Debtors A/c To Live stock A/c
To Plant & Machinery A/c To Motor Car A/c To Goodwill A/c (Being Assets
Depreciation) |
|
32,500 |
10,000 5,000 5,000 5,000 7,000 |
|
April 1 |
Building A/c Dr. Creditors A/c Dr. To Revaluation A/c (Being Building
Appreciation & Liabilities is payable ) |
|
50,000 10,000 |
60,000 |
|
April 1 |
Revaluation
A/c
Dr. To Rohan’s Capital A/c To Rohit’s Capital A/c To Sachin’s Capital A/c (Being Profit
on revaluation distribution and transferred into capital partners) |
|
27,500 |
16,500 5,500 5,500 |
|
April 1 |
Bank A/c
Dr. To Rohan’s Capital A/c To Rohit’s Capital A/c (Being additional
capital bought by partners) |
|
75,000 |
50,000 25,000 |
|
April 1 |
Sachin’s Capital
A/c Dr. To Sachin’s Loan A/c (Being
balance of sachin’s Capital A/c transferred to sachin’s Loan A/c) |
|
65,500 |
65,500 |
Q.3 Siddhant sold goods to Sudhir of 43,800 on 18th March, 2019. Siddhant draws a bill on Sudhir on the same day for 43,800 for 3 months which was duly accepted by Sudhir. Siddhant discounted the bill on the same day at 8% p.a. the bill was dishonoured on the due date and Sudhir requested Siddhant to accept 13,800 and interest in cash on remaining amount 12 %p.a. Siddhant agreed and for the balance amount accepted a new bill at 2 months. Before the due date of new bill Sudhir retired the bill by paying 29,700. Pass necessary Journal Entries in the Books of Siddhant. [10]
Ans;
Let's break down the given information and calculate the necessary journal entries in the books of Siddhant.
1. Initial transaction:
Date: March 18, 2019
Goods sold to Sudhir: ₹43,800
Siddhant draws a bill on Sudhir for 3 months: ₹43,800
Journal entry:
Accounts Receivable (Sudhir's Account) ₹43,800
To Sales ₹43,800
(Being goods sold to Sudhir)
Bills Receivable (Sudhir's Acceptance) ₹43,800
To Accounts Receivable (Sudhir's Account) ₹43,800
(Being the acceptance of the bill by Sudhir)
2. Discounting of the bill:
Date: March 18, 2019
Bill discounted at 8% p.a.
Discount = ₹43,800 * (8/100) * (3/12) = ₹876
Journal entry:
Bank (Discounted Amount) ₹43,800
Discount ₹876
To Bills Receivable (Sudhir's Acceptance) ₹43,800
(Being the bill discounted at the bank)
3. Dishonoring of the bill:
No journal entry is required at this point.
4. Sudhir's request to accept ₹13,800 and interest in cash:
Interest = ₹43,800 * (12/100) * (3/12) = ₹1,314
Journal entry:
Accounts Receivable (Sudhir's Account) ₹13,800
Interest Receivable ₹1,314
To Bills Receivable (Sudhir's Acceptance) ₹15,114
(Being the amount accepted in cash and interest charged)
5. Acceptance of a new bill for the balance amount:
New bill amount = ₹43,800 - ₹13,800 = ₹30,000
Journal entry:
Bills Receivable (New Acceptance) ₹30,000
To Accounts Receivable (Sudhir's Account) ₹30,000
(Being the acceptance of a new bill for the balance amount)
6. Retirement of the new bill:
Date: Before the due date
Amount paid by Sudhir: ₹29,700
Journal entry:
Bank ₹29,700
To Bills Receivable (New Acceptance) ₹30,000
(Being the retirement of the new bill before the due date)
Q.4 Rohini Company Limited issued 25000 equity shares of 100 each payable as follows
On Application * 20
On Allotment*30
On First call 20
On Second & Final call 30
Applications were received for 22,000 equity shares and allotment of shares were made to them. All money was received by the company.
Pass Journal Entries in the books of Rohini Co. Ltd. [8]
In the Books of
Firm
Journal Entries
|
Date |
Particulars |
L/F |
Debit (Rs.) |
Credit (Rs.) |
|
1 |
Bank A/c
Dr. To Equity Share Application A/c (Being equity
share application 22,000 share @ Rs. 20 Per share received) |
|
4,40,000 |
4,40,000 |
|
2 |
Equity share
Application A/c Dr. To Equity share Capital A/c (Being equity
share application 22,000 share @ Rs. 20 Per share capital A/c) |
|
4,40,000 |
4,40,000 |
|
3 |
Equity share Allotment
A/c Dr. To Equity share Capital A/c (Being equity
share application 22,000 share @ Rs. 30 Per share due) |
|
6,60,000 |
6,60,000 |
|
4 |
Bank A/c
Dr. To Equity Share Allotment A/c (Being equity
share application 22,000 share @ Rs. 30 Per share received) |
|
6,60,000 |
6,60,000 |
|
5 |
Equity share First
Call A/c Dr. To Equity share Capital A/c (Being equity
share application 22,000 share @ Rs. 20 Per share capital A/c) |
|
4,40,000 |
4,40,000 |
|
6 |
Bank A/c
Dr. To Equity Share First Call A/c (Being equity
share application 22,000 share @ Rs. 20 Per share received) |
|
4,40,000 |
4,40,000 |
|
7 |
Equity share
Second & Final Call A/c Dr. To Equity share Capital A/c (Being equity
share application 22,000 share @ Rs. 30 Per share capital A/c) |
|
6,60,000 |
6,60,000 |
|
8 |
Bank A/c
Dr. To Equity Share Second &
Final A/c (Being equity
share application 22,000 share @ Rs. 20 Per share received) |
|
6,60,000 |
6,60,000 |
Q.5 Sonu, Maneka and Karina were partners sharing profits and losses in the ratio 2:2:1 respectively. Their Balance Sheet as on 31st March, 2018 was as follows.
Balance Sheet as on 31st March 2018
|
Laibilities |
Amount |
Assets |
Amount |
|
Capital A/c: Sonu Maneka Karian |
40,000 50,000 25,000 1,25,000 1,00,000 50,000 |
Bank Debtors Livestock Building Plant &
Machinery Motor Truck Goodwill |
12,500 60,000 50,000 75,000 35,000 1,00,000 57,500 |
|
|
3,90,000 |
|
3,90,000 |
Adjustment:
Karina died on 1st Oct 2018 and the adjustment were agreed as per the deed as follows.
Plant & Machinery to be valued at 60,000 and all Debtors were good.
2. Stock of Goods to be reduced by * 3,000
3. The drawings of Karina upto the date of her death amounted to * 400 per month.
4. Interest on capital was to be allowed at 10% p.a.
5. The deceased partners share of Goodwill is to be valued at 2 years purchased of average profit for last 3 years. The profits were
2015-16 Rs. 15,000 2016-17 Rs. 17,000 2017-18 Rs. 13,000
6. The deceased partners share of profit up to the date of her death should be based on average profit of last two years.
Prepare: Profit & Loss AdjustmentA/c,Karina'scapitalA/c showing the balance payable to her executors loan account. Working Note for share of Goodwill and Profit up to the date of death.
Ans:
Working Notes
Karina's share of goodwill
= 2/6 * 2 * average profit for last 3 years = 2/6 * 2 * (15000 + 17000 + 13000)/3 = 2/6 * 2 * 15000 = 6000
Karina's share of profit up to the date of death
= 2/6 * average profit for last 2 years = 2/6 * (15000 + 17000)/2 = 2/6 * 16000 = 42000
Q.6 From the following transactions of Receipts and Payments Account of "Pavan - putra Hanuma Vyayamshala" Parbhani, and the adjustments given, you are required to prepare Income and Expenditure Account and Balance Sheet as on 31 March 2019. [12]
Receipts and payments Account for the year ending 31.03.2019.
Dr. Cr.
|
Receipts |
Amount |
Payment |
Amount |
|
To Balance b/d Cash in hand To Subscriptions
2018-19 18,000 2019-2 410 To Donations To Receipts from
Entrainment To Interest To Entrance fees
|
5,000
18,410 6,000 5,400 400 6,200
________ 41,410 |
By Salaries By Entrainment
Expenses By Sundry
Expenses By Rent By Investment By Printing
& Stationery By Fixed Deposit By Balance c/d Cash in hand 830 Cash at Bank 6,000 |
6,000 2,480 2,500 700 15,000 4,000 3,900
6,830 _______ 41,410 |
Adjustments:
1) There are 500 members paying an annual Subscription of 50 each.
2) Outstanding Salary was * 1,200
3) The Assets on 01.04.2018 were as follows: Building Rs.50,000, Furniture Rs15,000
4) Provide depreciation on Building and Furniture at 5% and 10% respectively.
5) 50% Entrance Fees is to be capitalized.
6) Interest on Investment at 5 p.a. has accrued for 6 months.
7) Capital Fund 70,000 on 01.04.2018
Solution:
In
the books of Pavan putra Hanuman Vyayamshala, Parbhani
Income
and Expenditure A/c for the year ended on 31st March, 2019
|
Expenditure |
Amount |
Amount |
Income |
Amount |
Amount |
|
To Salaries Add: Outstanding To Entertainment
Expenses To Sundry Exp To Electricity
Charges To Rent To Printing
& Stat To Postage To Depreciation: Building Furniture To Surplus (Excess of Income
over Expenditure) |
6,000 1,200
2,500 1,500 |
7,200
2,480 1,300 1,200
700 800 3,200
4,000 19,395 |
By Subscription Add: Outstanding
Subscription for Current year By Donation By Receipt from
Entertainment By Interest By outstanding
Interest on Investment (6 month) By Entrances fees
Less: 50%
capitalisation |
18,000
7,000
6,200 3,100 |
25,000 6,000
5,400 400
375
3,100 |
|
|
|
40,275 |
|
|
40,275 |
Q7 From the following Trial Balance of Riddhi and Siddhi, you are required to prepare Trading and Profit and loss Account for the year ended 31st March 2019 and Balance Sheet as on that date after considering the additional information given below. [12]
Trial Balance as on 31st March,2019
|
Particulars |
Debit
(Rs.) |
Credit
(Rs.) |
|
Stock (1/4/2018) Capital- Riddhi Siddhi Purchases Wages Carriage Inward Sundry Creditors Bills Payable Cash in hand Insurance Sundry Debtors Bank Overdraft Carriage outward Land and Building Furniture Sale Purchases Return Sale Return Rent Bad debts R.D.D Advertisement |
48,000
22,500 800 1,000
2,850 1,200 32,000
900 42,500 38,700
4,00
1,000
4,400 |
50,000 30,000
27,600 20,000
19,000
47,000 500
1,800
350 |
|
|
1,96,250 |
1,96,250 |
Adjustments:
1) Closing stock Rs. 48,700.
2) Outstanding Expenses -Wages Rs. 700 and Travelling Expenses Rs. 200.
3) Depreciate Land and Building by 10% and Furniture by 5%.
4) Insurance paid in advance RS. 300.
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