Book-Keeping & Accountancy

Q.1 (A) (1) Complete the table:

Cost of goods sold = Opening Stock + Purchases – _____

Q.1 (A) (2) Complete the table:

Q.1 (A) (3) Complete the table:

Q.1 (A) (4) Complete the table:

Q.1 (A) (5) Complete the table:

Q.1 (B) (1) The profit or loss from revaluation on retirement of partner is shared by _____.

Q.1 (B) (2) Profit and Loss Suspense Account is shown in the new balance sheet on _____ side.

Q.1 (B) (3) Not for Profit Organisation is also called _____ organisation.

Q.1 (B) (4) A _____ is an intangible asset.

Q.1 (B) (5) _____ is credited when unrecorded asset is brought into business.

Q.1 (C) (1) Write a word / term / phrase which can substitute the statement: Debit balance of revaluation account.

Q.1 (C) (2) Write a word / term / phrase which can substitute the statement: It is a damaged software, cracked, but nearly fully functional.

Q.1 (C) (3) Write a word / term / phrase which can substitute the statement: Average Profit – Normal Profit = _____

Q.1 (C) (4) Write a word / term / phrase which can substitute the statement: An account which records only revenue items in case of Not for Profit Concern.

Q.1 (C) (5) Write a word / term / phrase which can substitute the statement: Partnership Agreement in written form.

Q.1 (D) (1) Complete the sentence: When face value of the share is ₹ 100 and issued price is ₹ 110 then it is said that the shares are issued at _____.

Q.1 (D) (2) Complete the sentence: A person who draws the bill of exchange is known as _____.

Q.1 (D) (3) Complete the sentence: Dissolution expenses are credited to _____ account.

Q.1 (D) (4) Complete the sentence: Credit side of Receipts and Payments Account shows cash _____.

Q.1 (D) (5) Complete the sentence: Expenses which are paid before due date are called as _____.

Q.2 The Balance Sheet of Mohit and Rohit who shared profits equally was as follows:

Balance Sheet as on 31st March 2021

On 1st April 2021 Sujit joins the firm as a partner for 1/5th share of future profit on the following terms and conditions:

1. Stock, Plant and Machinery are to be reduced by 20%.
2. Land and Building is to be valued at ₹ 1,75,000.
3. A provision of 10% is to be created on debtors.
4. Sujit is to bring in ₹ 2,00,000 as capital.
5. Goodwill is valued at ₹ 4,00,000. Sujit is to bring his share of goodwill in cash.

Draft the Journal Entries in the books of the firm and show Profit and Loss Adjustment Account.

OR

Give journal entries of the following in the books of Daulat.

1. Sarita’s acceptance for 3 months of ₹ 20,000 was discounted with bank at ₹ 19,800.
2. Siddhi’s acceptance ₹ 15,000 retired one month before the due date at rebate of 12% p.a.
3. Prachiti’s acceptance of ₹ 9,750 is endorsed in favour of Bhumika in full settlement of her account ₹ 10,000.
4. Sold goods to Madhura ₹ 20,000 @10% trade discount. Received half the amount in cash and for the balance a bill for 2 months which was accepted by Madhura. On the due date, Madhura meets the bill.

Q.3 Rajeev, Sanjeev and Mahesh were partners in the firm Janki Traders sharing profit and losses in the ratio of 2 : 2 : 1. The following is the Balance Sheet as on 31st March 2022:

Balance Sheet as on 31st March 2022

On the above date the partners decided to dissolve the firm.

1. Assets were realised as under: Machinery ₹ 1,80,000, Stock ₹ 72,000, Investment ₹ 84,000 and Debtors ₹ 1,80,000.
2. Dissolution expenses were ₹ 12,000.
3. Goodwill of the firm realised ₹ 96,000.

Prepare necessary ledger accounts to close the books of the Partnership Firm.

OR

Ramesh, Dinesh and Mahesh were partners sharing profits and losses in the ratio of 5 : 2 : 3. Their balance sheet as on 31st March 2020 was as follows:

Balance Sheet as on 31st March 2020

Dinesh retired from business on 1st April 2020 on the following terms:

1. The assets were revalued as under: (i) Stock ₹ 38,000 (ii) Building is appreciated by 10% (iii) Plant and Machinery is to be depreciated by 10% (iv) R.D.D. is increased up to ₹ 1,000.
2. The goodwill of retiring partner is valued at ₹ 18,000 and remaining partners decided that goodwill be written off in their new ratio which will be 5 : 3.
3. Amount due to Dinesh is to be transferred to his loan account.

Prepare: (1) Revaluation Account (2) Partners’ Capital Account and (3) Balance Sheet of New Firm.

Q.4 Mahendra, Jitendra and Hitendra are in partnership sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Their Balance Sheet as on 31st March 2022 was as follows:

Balance Sheet as on 31st March 2022

On 1st October 2022 Hitendra died and the partnership deed provided that:

1. Machinery valued at ₹ 80,000 and creditors valued at ₹ 69,000.
2. Profit for 2022-23 was estimated at ₹ 1,20,000. Hitendra’s share in it up to the date of his death was given to him.
3. Goodwill of the firm was valued at two times the average profit of the last 5 years. Firm’s profit of the last 5 years were: I year ₹ 1,80,000, II year ₹ 1,50,000, III year ₹ 2,00,000, IV year ₹ 1,20,000, V year ₹ 2,50,000. Hitendra’s share in it was to be given to him.
4. Drawings made by Hitendra up to his death is ₹ 30,000.
5. Interest on drawings of Hitendra charged ₹ 2,000.

Prepare: Hitendra’s Capital Account and show working of: (i) Hitendra’s share in goodwill. (ii) Hitendra’s share in profit.

OR

State the importance of Computerised Accounting System.

Q.5 Pavitra Co. Ltd. issued ₹ 20,00,000 capital divided into equity shares of ₹ 100 each at a premium of ₹ 20 per share. Amount payable as:

• ₹ 20 on Application
• ₹ 40 on Allotment (including ₹ 10 premium)
• ₹ 60 on First and Final call (including ₹ 10 premium)

Company received applications for all shares. All the money due on allotment and first and final call was duly received.

Pass Journal Entries in the books of Pavitra Co. Ltd.

OR

Trading and Profit and Loss Account for the year ended 31st March 2022

Company had following current assets and current liabilities: Debtors ₹ 1,20,000, Creditors ₹ 60,000, Stock ₹ 60,000, Bills Payable ₹ 40,000, Loose Tools ₹ 20,000, Bank Overdraft ₹ 20,000.

Calculate following ratios: (1) Gross Profit Ratio (2) Operating Ratio (3) Net Profit Ratio (4) Current Ratio

Q.6 From the following transactions of Samarth Vyayamshala, Chandgad, prepare Income and Expenditure Account and Balance Sheet as on 31st March 2022.

Receipts and Payments Account as on 31st March 2022

Adjustments:

1. Capital fund as on 1st April 2021 was ₹ 2,10,000.
2. Assets on 1st April 2021 were: Building ₹ 1,50,000, Furniture ₹ 45,000.
3. Provide depreciation on building at 5% p.a. and on furniture at 10% p.a.
4. 50% of entrance fees to be capitalised.
5. There are 1,500 members each paying yearly subscription of ₹ 50.

Q.7 Snehal and Deepali are partners sharing profit and losses in their capital ratio. Following is the Trial Balance as on 31st March 2021:

Trial Balance as on 31st March 2021

Adjustments:

1. Closing stock is valued at ₹ 1,76,000.
2. Outstanding wages ₹ 1,600.
3. Reserve for doubtful debts on Debtors at 5% is to be created.
4. Depreciate motor van by 5% and plant and machinery by 10% p.a.

Prepare: (i) Trading Account (ii) Profit and Loss Account (iii) Balance Sheet as on 31st March 2021.

Q.1 (A) (i) _____ is an Intangible Asset.

Q.1 (A) (ii) Excess of income over expenditure is termed as _____.

Q.1 (A) (iii) Decrease in the value of Assets should be _____ to Revaluation Account.

Q.1 (A) (iv) Notary public is _____.

Q.1 (A) (v) Fixed Deposit Account comes under _____ group.

Q.1 (B) (i) Write a word / term / phrase which can substitute the statement: Expenses which are paid before they are due.

Q.1 (B) (ii) Write a word / term / phrase which can substitute the statement: The receipts which are not recurring in nature.

Q.1 (B) (iii) Write a word / term / phrase which can substitute the statement: The ratio in which general reserve is distributed to the old partners in case of admission of a partner.

Q.1 (B) (iv) Write a word / term / phrase which can substitute the statement: Winding up of partnership business.

Q.1 (B) (v) Write a word / term / phrase which can substitute the statement: Shares issued at its face value.

Q.1 (C) (i) Complete the sentence: Liabilities of partners in partnership firm is _____.

Q.1 (C) (ii) Complete the sentence: Pune University prepares _____ Account instead of a Profit and Loss Account.

Q.1 (C) (iii) Complete the sentence: A person who draws the bill of exchange is known as _____.

Q.1 (C) (iv) Complete the sentence: Revaluation Account is also known as _____ Account.

Q.1 (C) (v) Complete the sentence: Current Ratio = _____ / Current Liabilities

Q.1 (D) (i) Do you agree or disagree with the statement: Free distribution of goods is debited to Trading Account.

Q.1 (D) (ii) Do you agree or disagree with the statement: Non-trading concerns do not have profit motive.

Q.1 (D) (iii) Do you agree or disagree with the statement: When the Goodwill is written off goodwill account is debited.

Q.1 (D) (iv) Do you agree or disagree with the statement: On Dissolution of partnership firm / Cash / Bank Account is closed automatically.

Q.1 (D) (v) Do you agree or disagree with the statement: A deceased partner is not entitled to Goodwill of the Firm.

Q.2 Kaustubh and Ketan are partners sharing profits and losses in the ratio of 1 : 1. Their Balance Sheet as on 31st March 2023 was as follows:

Balance Sheet as on 31st March 2023

On 1st April 2023, Pranav joins the firm as a partner for 1/5th share of future profits, on the following terms and conditions:

1. Firm Goodwill is valued at ₹ 4,00,000. Pranav is to bring his share of goodwill in cash.
2. Pranav is to bring in ₹ 2,00,000 as his share of capital.
3. Provision for Bad and Doubtful Debts is to be created at 10% on debtors.
4. Building is to be valued at ₹ 1,60,000.
5. Stock and Machinery is to be reduced by 20%.

Prepare: (a) Revaluation Account (b) Partners’ Capital Account (c) Balance Sheet of the New Firm

OR

Following is the Balance Sheet of Sagar, Suraj and Sahil, who were sharing profit and losses equally.

Balance Sheet as on 31st March 2023

On 1st April 2023, Sahil retired from the firm on the following terms:

1. Machinery be revalued at ₹ 18,800.
2. Building be appreciated by 10% and computer be reduced by ₹ 3,800.
3. Debtors were all good and R.D.D. was no longer required.
4. Goodwill of the firm be valued at ₹ 36,000.
5. Amount payable to Sahil to be transferred to his Loan Account.

Prepare: (a) Profit and Loss Adjustment Account (b) Partners’ Capital Account (c) Balance Sheet of the New firm

Q.3 Following is the Balance Sheet of M/s. Bhumi, Bhupal and Bipin as on 31st March 2023.

Balance Sheet as on 31st March 2023

All partners declared as insolvent due to the inability to pay the liabilities, hence the firm is dissolved. Bhupal and Bipin can not pay anything. Bhumi can contribute only ₹ 8,000 from her private estate.

Assets realised – Stock ₹ 35,000, Furniture ₹ 37,000 and computer is sold for ₹ 6,000.

Realisation expenses amounted to ₹ 11,000.

Prepare necessary ledger accounts to close the books of the Firm.

OR

Surekha sold goods to Suman on credit for ₹ 20,000 for which Suman accepted the bill for 3 months. Surekha discounted the bill with her bank at 10% p.a. on the same day.

On the due date, Suman requested Surekha to accept ₹ 8,000, with interest ₹ 1,000 in cash and to draw a new bill for the balance for 2 months. Surekha agrees to this proposal.

Before due date Suman retired her acceptance by paying ₹ 11,800.

Pass necessary Journal Entries in the books of Surekha.

Q.4 Pravin, Prashant and Sushil are partners sharing profits and losses in the ratio 5 : 3 : 2 respectively. Their Balance Sheet as on 31st March 2022 was as follows:

Balance Sheet as on 31st March 2022

Sushil died on 31st March 2022 and the following adjustments were agreed by as per partnership deed.

1. Creditors have increased by ₹ 20,000.
2. Goodwill is to be calculated at 2 years’ purchase of average profit of 3 years. The profit of the last 3 years were: 2019-20 ₹ 1,80,000; 2020-21 ₹ 1,20,000; 2021-22 ₹ 1,20,000 (Loss). Sushil’s share in it was to be given to him.
3. Loose tools and livestock were valued at ₹ 1,60,000 and ₹ 2,40,000 respectively.
4. R.D.D. was maintained at ₹ 20,000.

Prepare: (a) Revaluation Account (b) Sushil’s Capital Account showing the amount payable to his executors. (c) Give working of Sushil’s share in goodwill.

OR

Explain the importance of Computerized Accounting System.

Q.5 Finolex Co. Ltd. invited applications for 50,000 equity shares of ₹ 10 each payable as:

• ₹ 3 on Application
• ₹ 5 on Allotment
• ₹ 2 on First and Final call

Applications were received for 60,000 equity shares and pro-rata allotment were made to all.

All the money was duly received except Mr. Rahul failed to pay first and final call on 5,000 equity shares.

Enter the above transactions in the books of the company.

OR

Calculate Current Ratio, Gross Profit Ratio and Net Profit Ratio from the following information:

Q.6 Atharv Art Circle, Sindhudurg, a newly started concern on 1st April 2022. Their Receipts and Payments Account was as follows:

Receipts and Payments Account as on 31st March 2023

Adjustments:

1. Subscription outstanding for the year 2022-23 was ₹ 15,000.
2. Depreciate furniture @ 10% p.a.
3. Entire amount of Life Membership fees and 50% of Donations are to be capitalised.

Prepare Income and Expenditure Account for the year ended 31st March 2023 and Balance Sheet as on that date.

Q.7 Jayesh and Rupesh are partners sharing profits and losses in the ratio of 3 : 2.

From the following Trial Balance and additional information, prepare Trading and Profit and Loss Account for the year ended on 31st March 2023 and Balance Sheet as on that date.

Trial Balance as on 31st March 2023

Adjustments:

1. Closing stock is valued at ₹ 38,000.
2. Depreciate furniture by 10% p.a.
3. Charge interest on capital at 5% p.a.
4. Goods distributed as free sample ₹ 2,000.

Q.1 (A) (1) A _____ is an intangible asset.

Q.1 (A) (2) Excess of income over expenditure in ‘Not for Profit Concern’ is termed as _____.

Q.1 (A) (3) Decrease in the value of assets should be _____ to Profit and Loss Adjustment account.

Q.1 (A) (4) Dissolution expenses are credited to _____ account.

Q.1 (A) (5) Notary public is a _____.

Q.1 (B) (1) Complete the sentence: Trading Account is prepared on the basis of _____ expenses.

Q.1 (B) (2) Complete the sentence: Income and Expenditure Account is a _____.

Q.1 (B) (3) Complete the sentence: Deceased partner’s executor’s account is shown on the _____ side of balance sheet.

Q.1 (B) (4) Complete the sentence: Fixed deposit account comes under _____ group.

Q.1 (B) (5) Complete the sentence: If an asset is taken over by the partner, _____ account is debited.

Q.1 (C) (1) Find the odd one: Wages account, Salary account, Royalty account, Import duty account.

Q.1 (C) (2) Find the odd one: Machinery account, Furniture account, Computer account, Rent account.

Q.1 (C) (3) Find the odd one: General reserve account, Creditors account, Machinery account, Capital account.

Q.1 (C) (4) Find the odd one: Notary public, Drawer, Drawee, Payee.

Q.1 (C) (5) Find the odd one: At par, At premium, At discount, At loan.

Q.1 (D) (1) Do you agree or disagree: Partnership firm is a trading concern.

Q.1 (D) (2) Do you agree or disagree: ‘Not for profit concerns’ do not have profit motive.

Q.1 (D) (3) Do you agree or disagree: Retiring partner is called an outgoing partner.

Q.1 (D) (4) Do you agree or disagree: Gain ratio is calculated at the time of admission of new partner.

Q.1 (D) (5) Do you agree or disagree: Financial statement includes only balance sheet.

Q.2 Mr. Deepak and Mr. Abhishek were in partnership sharing profits and losses in the proportion of 3 : 1 respectively. Their Balance Sheet as on 31st March 2019 stood as follows:

Balance Sheet as on 31st March 2019

They admitted Adinath into partnership on 1st April 2019 on the terms being that –

1. He shall have to bring in ₹ 40,000 as his capital for 1/5 share in future profits and ₹ 20,000 as his share of goodwill.
2. Furniture to be depreciated by 20%.
3. Stock should be appreciated by 10%.
4. Building should be appreciated by 5%.
5. A provision for 5% R.D.D. to be created on sundry debtors.
6. Capital account of all partners be adjusted in their new profit sharing ratio through cash account.

Prepare: (a) Revaluation Account (b) Partners’ Capital Account (c) New Balance Sheet of the firm.

OR

Given below is a Balance Sheet of Aditya, Ajinkya and Arun who were partners in a firm sharing profits and losses in the ratio 5 : 3 : 2. Their Balance Sheet as on 31st March 2020 was as follows:

Balance Sheet as on 31st March 2020

On 1st April 2020 Arun retired on the following terms –

1. Goodwill of the firm will be raised in the books at ₹ 10,000.
2. Stocks to be reduced by 10%, furniture by 5% and Machinery by 10%.
3. R.B.D.D. be maintained at 5% on debtors.
4. ₹ 100 to be written off from creditors.
5. All the amount due to Arun transferred to his loan account.

Prepare: (a) Profit and Loss adjustment account (b) Partners’ Capital Account (c) Balance Sheet of the new firm.

Q.3 Sharmila, Urmila and Leela are partners in the firm ‘Jeevan Stores’ sharing profit and losses in the ratio of 2 : 2 : 1 respectively. On 31st March 2020, they decided to dissolve the firm when their Balance Sheet was as under.

Balance Sheet as on 31st March 2020

The firm was dissolved on the above date and the assets were realised as under:

1. Sharmila agreed to take over the building at ₹ 1,23,600.
2. Urmila took over goodwill, stock and debtors at book values and agreed to pay creditors and bills payable.
3. Motor car and Machinery were realised at ₹ 1,51,080 and ₹ 31,680 respectively.
4. Investments were taken by Leela at an agreed value of ₹ 55,440.
5. Realisation expenses amounted to ₹ 6,800.

Prepare: (a) Realisation Account (b) Partners’ Capital Account (c) Bank Account

OR

Kanika owes ₹ 26,000 to Mansi. Mansi drew a bill for ₹ 21,000 on Kanika for 3 months’ period and received the balance of ₹ 5,000 by a crossed cheque. The bill was duly accepted and returned to Mansi.

On the same day, Mansi endorsed Kanika’s acceptance to Bansari. On the due date, Bansari informed Mansi that Kanika dishonoured her acceptance and noting charges ₹ 280 were paid.

Mansi then drew a new bill for one month on Kanika including noting charges and interest ₹ 650. On the due date, Kanika honoured her acceptance by cheque.

Prepare: (a) Journal entries in the books of ‘Mansi’ (b) ‘Mansi’ account in the books of ‘Kanika’

Q.4 ‘Parimal Company Ltd.’ issued 1,00,000 preference shares of ₹ 20 each payable as:

Company received application for all these shares and received all the money. Pass journal entries in the books of ‘Parimal Company Ltd.’

OR

Explain the importance of Computerised Accounting system.

Q.5 Mahendra, Surendra and Narendra were partners sharing profits and losses in the ratio of 5 : 3 : 2 respectively. Their Balance Sheet as on 31st March 2019 was as follows:

Balance Sheet as on 31st March 2019

Mr. Narendra died on 30th June 2019 and the following adjustments were agreed as per deed:

1. Stock, furniture, land and building are to be revalued at ₹ 16,700, ₹ 16,200 and ₹ 30,100 respectively.
2. Narendra’s share in goodwill is to be valued from firm’s goodwill which was valued at 3 times of the average profit of last four years. Profit of the last four years: I year – ₹ 30,000; II year – ₹ 25,000; III year – ₹ 25,000; IV year – ₹ 40,000.
3. His profit up to the death is to be calculated on the basis of profit of last year.
4. Narendra was entitled to get a salary of ₹ 1,200 per month.
5. Interest on capital at 10% p.a. to be allowed.
6. Narendra’s drawing up to the date of his death was ₹ 900 per month.

Prepare: (A) Narendra’s Capital Account showing amount payable to his executor. (B) Give working notes for: (i) Share of goodwill due to Narendra (ii) Share of profit due to Narendra.

OR

(A) From the following information find out the current ratio: (4)

1. Total assets = ₹ 22,000
2. Fixed assets = ₹ 10,000
3. Capital employed = ₹ 20,000

(B) Calculate the net profit ratio from the following data: (4)

1. Sales = ₹ 76,000
2. Cost of goods sold = ₹ 52,000
3. Indirect expenses = ₹ 12,000

Q.6 Given below is the Balance Sheet of ‘Bhanubai Mahila Seva Kendra’ as on 1st April 2019 and Receipts and Payments account for the year ending 31st March 2020:

Balance Sheet as on 1st April 2019

Receipts and Payments Account for the year ended 31st March 2020

Additional information:

1. Outstanding wages ₹ 450
2. Entrance fees should be capitalised.
3. Depreciate furniture at 10% p.a.
4. Subscription for 2019-20 was outstanding ₹ 3,000

Prepare: (a) Income and Expenditure account for the year ended 31st March 2020. (b) Balance Sheet as on 31st March 2020.

Q.7 Rajan and Rohit are partners in partnership firm sharing profits and losses equally. You are required to prepare Profit and Loss Account for the year ended 31st March 2020 and Balance Sheet as on that date with the help of following information:

Trial Balance as on 31st March 2020

Additional information:

1. Gross profit amounted to ₹ 69,000.
2. Insurance paid for 15 months w.e.f. 1st April 2019.
3. Depreciate land and building at 10% p.a. and furniture at 5% p.a.
4. Write off ₹ 2,000 for bad debts and maintain R.D.D. at 5% on sundry debtors.
5. Closing stock is valued at ₹ 69,000.