SAMPLE PAPER OF ACCOUNTANCY

1)	What is meant by ‘Reserve Capital’?	1
2)	What do you mean by ‘Honorarium’ in case of Not-For-Profit Organisation?	1
3)	Will interest paid to a partner on loan be debited to Profit & Loss A/c or Profit & Loss Appropriation A/c? Give reasons.	1
4)	How does the factor ‘location’ affect the goodwill of a firm?	1
5)	What is meant by ‘Reconstitution of firm’?	1
6)	The Income & Expenditure A/c of Raj Club shows subscriptions for 2010 as Rs.70,000. Additional information:

a) Subscriptions for 2009 unpaid on 01/01/2010 was Rs.4,000, Rs.3,600 of which was received in 2010.

b) Balance of subscription paid in advance on 01/01/2010 was Rs.1,700. c) Balance of subscription paid in advance on 31/12/2010 was Rs.900.

d) Balance of subscription for 2010 unpaid on 31/12/2010 was Rs.3,500.

Determine the amount of subscription received in cash during the year 2010.                                                     3

7)    Sunanda Ltd. issued 4,000  11 % Debentures of Rs100 each . Pass necessary journal entries for issue of

Debentures in the following cases :                                                                                                                                                                      3 a) When debentures are issued at par and redeemable at 5 % premium.

b) When debentures are issued at 5 %  premium and redeemable at par.

c) When debentures are issued  at 5 % premium and redeemable at 8 % premium.

8)    State the provisions of Section 79 of the Company’s Act, 1956 regarding the issue of shares at discount.          3

9)    Calculate the interest on drawings of Sunil @10% per annum for the year ended 31/03/11, in each of these cases:                                                                                                                                                                           4

Case I – If he withdraws Rs.4,000 at the beginning of each month. Case II- If he withdraws Rs.,5,000 at the end of each quarter.

10)   X,Y and Z are sharing in 2:2:1. Y dies on March 1st,2011 and his share is taken over by X and Y in the ratio of 3:2.

Profits up to December 31st, 2010 is Rs.50,000. Total goodwill of the firm on the date of his death is Rs.40,000. Journalise in the books of the firm.                                                                                                                                                                             4

11)  ABC Ltd. issued 20,000 shares of Rs.10 each at a premium of Rs.3 which were payable as follows: On Application   -  Rs.4 (including Re. 1 premium)

On Allotment                    -  Rs.5 (including Re. 2 premium) Balance on 1st  & Final call.

Subodh, a holder of 500 shares, failed to pay the allotment money and call money. His shares were forfeited and reissued only 300 shares @ Rs.8 per share. Journalise for forfeiture and reissue of shares only in the firm’s books.                                                                                                                                                                            4

12)   (a) PQR Ltd. issued 30,000, 11%Debentures of Rs.100 each. The Board of Directors decided to purchase 60% of those debentures from the market at a price of Rs.94 each, for investment purpose. The expenses on purchase amounted to Rs.200. On the same day, they decided to sell these debentures @ Rs.102 each.

Journalise for purchase and sale of these debentures.

(b) XYZ  Ltd. redeemed its 1,800,11% Debentures of Rs.100 each by converting them into 12% Preference Shares

of Rs.100 each to be issued at a premium of 20%. Pass the journal entries.                                                  6

13)   From the following Receipts and Payments A/c of a club and from the information supplied, prepare an Income

& Expenditure A/c for the year ended 31/12/10 and the Balance Sheet as on that date:

Receipts	Amt.(Rs.)	Payments	Amt.(Rs.)
To Balance B/d To Subscriptions: 2001 2002 2003 To Sale of old furniture (costing Rs.50) To Rent received To Profit from Entertainment To Sale of newspaper	250 250 1,000 200 60 740 400 100	By Balance B/d By Salaries By Electric Charges By Books By Match Expenses By Furniture (01/04/2010) By Balance C/d	300 1,200 200 100 400 50 250 500
	3,000		3,000

Additional information:

a) The club had 50 members, each paying annual subscriptions of Rs.25. Subscriptions outstanding on 31/12/09 were Rs.300.

b) On 31/12/10, Salaries outstanding amounted to Rs.600.

c) On 31/12/09, the club owned Land & Building valued at Rs.10,000, Furniture Rs.600 and Books Rs.500.

There was a Match Fund in the club on 31/12/2009 in which there was a balance of Rs.300.

d) Depreciate Furniture @ 10% p.a.                                                                                                                                                                       6

14)    Following is the Balance Sheet of P, Q & R who were sharing Profits & Losses in the ratio of 3:2:

Liabilities	Amt. (Rs.)	Assets	Amt. (Rs.)
Bank Balance Creditors Mrs. P’s Loan Capital Accounts P Q R	12,000 70,000 25,800 1,20,000 95,000 5,000	Debtors                 20,000 Less : Provision      1,200 Stock 3,000 Shares in ‘A’ Ltd. Motor Car Plant Advertisement Suspense A/c	18,800 40,000 30,000 75,000 80,000 84,000
	3,27,800		3,27,800

The firm was dissolved on that date and the following arrangement were made:

a)  Assets realized as follows: Debtors Rs.15,000; Plant at 30% discount.

b)  Stock was valued at Rs.36,000 and this was taken over by P & Q equally.

c)  Market value of the shares of A Ltd. is Rs.15 per share. Half the shares were sold in the market and the balance half were taken over by P & Q in their Profit sharing ratio.

d) A Creditor for Rs.50,000 took over Motor Car in full settlement of his claim and the balance of creditors were paid at a discount of 2%.

e)  Expenses of realisation amounted to Rs.6,000. P agreed to discharge his wife’s Loan.

Show the necessary Ledger Accounts.                                                                                                                                                                           6

15)    Given below is the Balance Sheet of A & B, who are carrying on partnership business as on December 31,

2010 A & B share profit & losses in the ratio of 3:2.

Liabilities	Amt.(Rs.)	Assets	Amt.( Rs.)
Bills Payable Creditors Outstanding Expenses Capitals  A         2,00,000 B         1,50,000	6,000 30,000 14,000 3,50,000	Cash Sundry Debtors Stock Plant Buildings Goodwill	28,750 80,000 30,000 1,00,000 1,50,000 11,250
	4,00,000		4,00,000

On that date, they agreed to admit C as a partner on the following terms : (a) C will get 1/4th Share in Profits. C brings proportionate capital.

(b) New Profit Sharing ratio shall be 3 : 3 : 2.

(c) Goodwill shall be valued on 2 ½ years’ purchase of the past 4 years’ average profits, which were Rs.17,000; Rs.14,000; Rs.15,000 & Rs.20,000 respectively.

(d) Plant is to be appreciated to Rs.1,20,000 and value of buildings is to be appreciated by Rs.20,000. (e) Stock was found overvalued by Rs.5,000.

(f) Creditors were unrecorded to the extent of Rs.1,000.

Prepare Revaluation Account, Partner’s Capital Accounts and Balance Sheet of the new firm.