NATIONAL MANAGEMENT COLLEGE, THUDUPATHI
REVISION TEST PAPER CAF-21-22BATCH
MAX. MARKS 65 Topic: Module -2 (50% portion) Time Allowed :1.5 hrs
Paper-1: Principles and Practice of Accounting.
Q-1) Konica Limited registered with an authorised equity capital of Rs. 2,00,000 divided into 2,000 shares of Rs. 100 each, issued for subscription of 1,000 shares payable at Rs. 25 per share on application,Rs. 30 per share on allotment,Rs. 20 per share on first call and the balance as and when required. Application money on 1,000 shares was duly received and allotment was made to them. The allotment amount was received in full, but when the first call was made, one shareholder failed to pay the amount on 100 shares held by him and another shareholder with 50 shares, paid the entire amount on his shares. The company did not make any other call. Give the necessary journal entries in the books of the company to record these transactions. 10M
Q-2) The following information of M/s. TT Club are related for the year ended 31st March, 2020:
(1)
| Balances | As on 01-04-2019
(Rs.) |
As on 31-3-2020
(Rs.) |
| Stock of Sports Material | 75,000 | 1,12,500 |
| Amount due for Sports Material | 67,500 | 97,500 |
| Subscription due | 11,250 | 16,500 |
| Subscription received in advance | 9,000 | 5,250 |
- Subscription received duringthe year 3,75,000
- Payments for Sports Material duringthe year 2,25,000
You are required to:
- Calculate the amount of Subscription and Sports Material that will appear in Income & Expenditure Account for the year ended 03.2020and
- Alsoshow how these items would appear in the Balance Sheet as on 03. 2020.
5M
Q-3) You are provided with the following:
Balance Sheet as on 31st March, 2017
| Liabilities | (Rs.) | Assets | (Rs.) |
| Capital Fund | 1,06,200 | Building | 1,50,000 |
| Subscription received in Advance | 6,000 | Outstanding Subscription | 3,800 |
| Outstanding Expenses | 14,000 | Outstanding Locker Rent | 2,400 |
| Loan | 40,000 | Cash in hand | 20,000 |
| Sundry Creditors | 10,000 | ||
| Total | 1,76,200 | 1,76,200 |
The Receipts and Payment Account for the year ended on 31st March, 2018
| Receipts | (Rs.) | Payment | (Rs.) |
| To Balance b/d |
20,000 |
By Expenses: | |
| Cash in Hand | For 2017 12,000 | ||
| To Subscriptions: | For 2018 20,000 | 32,000 | |
| For 2017 2000 | By Land | 40,000 |
| For 2018 21,000 | By Interest | 4,000 | |
| For 2019 1,000 | 24,000 | By Miscellaneous Expenses | 4,700 |
| To Entrance Fees | 38,000 | By Balance c/d | |
| To Locker Rent | 7,000 | Cash in Hand | 18,300 |
| To Sale proceeds of old newspapers | 1,000 | ||
| To Miscellaneous Income | 9,000 | ||
| 99,000 | 99,000 |
You are required to prepare Income and Expenditure account for the year ended 31st March, 2018 and a Balance Sheet as at 31st March, 2018 (Workings should form part of your answer). 10M
Q-4) The following are the balances extracted from the books of Shri Raghuram as on 31.03.2018, who carries on business under the name and style of M/s Raghuram and Associates at Chennai:
| Particulars | Debit (Rs.) | Credit (Rs.) |
| Capital A/c | 14,11,400 |
| Purchases | 12,00,000 | |
| Purchase Returns | 18,000 | |
| Sales | 15,00,000 | |
| Sales Returns | 24,000 | |
| Freight Inwards | 62,000 | |
| Carriage Outwards | 8,500 | |
| Rent of Godown | 55,000 | |
| Rates and Taxes | 24,000 | |
| Salaries | 72,000 | |
| Discount allowed | 7,500 | |
| Discount received | 12,000 | |
| Drawings | 20,000 | |
| Printing and Stationery | 6,000 | |
| Insurance premium | 48,000 | |
| Electricity charges | 14,000 | |
| General expenses | 11,000 | |
| Bank charges | 3,800 | |
| Bad debts | 12,200 | |
| Repairs the Motor vehicle | 13,000 | |
| Interest on loan | 4,400 | |
| Provision for Bad-debts | 10,000 | |
| Loan from Mr. Rajan | 60,000 | |
| Sundry creditors | 62,000 | |
| Motor vehicles | 1,00,000 | |
| Land and Buildings | 5,00,000 | |
| Office equipment | 2,00,000 | |
| Furniture and Fixtures | 50,000 | |
| Stock as on 31.03.2017 | 3,20,000 | |
| Sundry debtors | 2,80,000 | |
| Cash at Bank | 22,000 | |
| Cash in Hand | 16,000 | |
| Total | 30,73,400 | 30,73,400 |
Prepare Trading and Profit and Loss Account for the year ended 31.03.2018 and the Balance Sheet as at that date after making provision for the following:
- Depreciate Building by 5%, Furniture and Fixtures by 10%, Office Equipment by 15% and Motor Car by20%.
- Value of stock at the close of the year was4,10,000.
- One month rent for godown is
- Interest on loan from Rajan is payable @ 10% per annum. This loan was taken on 07.2017
- Reserve for bad debts is to be maintained at 5% of Sundry
- Insurance premium includes42,000 paid towards proprietor’s life insurance policy and the balance of the insurance charges cover the period from 01 04.2017 to 30.06.2018.
10M
Q-5) On 31st March, 2020, the Balance Sheet of P, Q and R sharing profits and losses in proportion to their Capital stood as below:
| Liabilities | Rs. | Assets | Rs. |
| Capital Account: | Land and Building | 30,000 | |
| Mr. P | 20,000 | Plant and Machinery | 20,000 |
| Mr. Q | 30,000 | Stock of goods | 12,000 |
| Mr. R | 20,000 | Sundry debtors | 11,000 |
| Sundry Creditors | 10,000 | Cash and Bank Balances | 7,000 |
| 80,000 | 80,000 |
On 1st April, 2020, P desired to retire from the firm and remaining partners decided to carry on the business. It was agreed to revalue the assets and liabilities on that date on the following basis:
- Land and Building be appreciated by20%.
- Plant and Machinery be depreciated by30%.
- Stock of goods to be valued at10,000.
- Old credit balances of Sundry creditors,2,000 to be written back.
- Provisions for bad debts should be provided at5%.
- Joint life policy of the partners surrendered and cash obtained7,550.
- Goodwill of the entire firm is valued at14,000 and P’s share of the goodwill is adjusted in the A/cs of Q and R, who would share the future profits equally. No goodwill account beingraised.
- The total capital of the firm is to be the same as before retirement. Individual capital is in their profit sharing
- Amount due to P is to be settled on the following basis: 50%on retirement and the balance 50% within one year.
Prepare (a) Revaluation account, (b) The Capital accounts of the partners, (c) Cash account and (d) Balance Sheet of the new firm M/s Q & R as on 1.04. 2020 15M
