eSiksha
 Login    Password        Sign Up   Forgot Password
Friday, March 29, 2024


    

Site Search

 Schools
 Home
 
I.C.S.E.
 
C.B.S.E.
 
I.S.C.

 

T
R
A
C
K
S
 MBA
 
Engineering
 
Medical
 
Humanities
 
Sciences
 
Computers
 
Govt. Exams
 
Commerce
 
School/+2

  Accounts - 1997 (I.C.S.E)
You on questions 1 to 3


Time allowed: 2 hours

Answers to this paper must be written on the paper provided separately.
-You will NOT be allowed to write during the first 15 minutes.
-This time is to be spent in reading the question paper.
-The time given at given at the head of this paper is the time allowed for writing the answers.
-All working, including rough work, must be clearly shown ; it should be done immediately before/after the rest of the answers.

PLEASE ALSO NOTE that parts of the same questions MUST BE DONE continuously so as to facilitate evaluation

Attempt all questions from Section A and two questions form Section B.

The intended marks for questions or parts of questions are given in brackets 
[  ].


SECTION - A 

Q 1 (a) The following question has to be answered using two columns. Rewrite Column 1 in the order given. Column 2 contains descriptive phrases for items given in Column 1. Match the phrases to suit the items in Column 1 by selecting phrases from Column 2. Ignore those that remain.

Column 1 Column 2
(i) Final Account - have associated for profit - making.
(ii) 2 : 1 Ratio - 'use me in case of need'.
(iii) Accounting of Entrance Fees - compulsory for sole traders.
(iv) Co - owners of business - absorbed in owner's account.
(v) Net Profit - checks current compilation of yearly accounting
  - determined by the bye - laws of the organisation 
vi) General Reserve solvency test.

Q 1 (b) Each statement given below has two blanks, a word/phrase and the rupee-value blank. As your answer for each, indicate the word/phrase or Rs. ................... in the blank spaces provided. Serial order of statements (i) to (iv) should not be disturbed.

(i) The charity institute's 'Care for us Fund' received and wisely invested Rupees six lakhs @ 15% p.a. to yield Rs ............... for the year. Which therefore reflects only in the ................. of the final accounts compiled.

(ii) The Furniture A/c shows a closing balance of Rs. 60.000. The fact that one-third of this value was bought and used only in the last quarter, the annual wear and tear calculated @ 15% and termed .................. will be Rs. ............. for the given accounting year.

(iii) As reported, the Current Ratio of M/s Luck and Co. is 1.5 : 1 and the Current Liabilities Rs. 90.000, then it is obvious that the total of   ................. is Rs ................ .

(iv) If Rs. 12.000 of debtors was written off in the Previous Year and 20% of it is recovered in the Current Year, then Rs ............... will be credited in the ................... A/C.

Q 1 (c)  write explanatory notes on :
(i)   The variety of Donations receivable by a non-trading organisation.


(ii)  The Balance Sheet.


(iii) The fixed Capital Method adopted in accounting.

Q 2 Trial balance as on 31-3-1996 of Ms. Counsel.

 

Debit
Rs.

Credit
Rs.

purchases and Sales

2,40,000

4,15,000

Wages & Factory Supervisor's Remuneration

35,000

 

Building

1,80,000

 

Machinery & Equipment (original Cost Price Rs. 5,00.000)

4,75,000

 

Commission

2,800

1,600

Freehold Land (to be used for another five years, then the owner intends to sell it off, for huge profits)

1,00,000

 

Watch Dogs Squad

30,100

 

Debit Notes & Credit Notes (issued connection with goods)

10,000

15,000

Creditors & Debtors

60,000

45,000

Salaries & Staff Welfare

38,000

 

Bill (drawn to guarantee payment) 10,000 7,000
Cash & Bank 50,000  
Bonus (paid to one officer who emigrated to another country) 2,500  
Discounts 3,200 14,600
Watch Dogs Upkeep Costs 6,600  
Accounts of the owner 35,000 5,95,000
Interest - free Loan (25% repaid on 31-3-1996. not accounted for)   1,00,000
General Reserve    
Opening Stock 30,000  
Building Repairs 15,000      _____ 
  13.23,200 13,23,200

Compile final Accounts incorporating the following adjustments for the owner.
Adjustments :
(i)  Closing Stock at the cost price is Rs. 8.000 more than opening stock - but the ruling market price      is Rs. 35,000 only on 31-3-1996.
(ii) Salaries are pre-paid by Rs. 3,500 and a bill for Rs. 1,800 for staff facilities enjoyed, is payable.
(iii)Two-fifths of the Building is used for office purposes the remaining area for production work. Building     Repairs cost is apportioned accordingly, as a direct and indirect expense yearly.
(iv)As per Bonus calculation the total Bonus expense for the accounting year 1995-96 is Rs. 18,000
(v) A cash sale for goods despatched Rs. 20,000 @ 2% cash discount is to be accounted for.
(vi)The Watch Dogs Squad id used for factory security only, by the night watchmen. Therefore their Upkeep Cost is the sole responsibility of the factory.
(vii)Depreciation details : Revalue the Watch Dogs Squad A/C. at Rs. 28,000. Building @ 5% p.a.

SECTION - B

Attempt any two questions from this Section.
Q 3 (a)  The Generator A/c. of Tube light & Co. reflects an opening balance of Rs. 4,48,000 on 1-4-92. It consists of a new generators costing Rs. 48,000 bought on 31-3-92 The other old generators originally costing Rs. 10,00,000 were being depreciated at an annual rate of Rs. 1,00,000 from the date of purchase.

Show the Generator A/c. for the accounting years ending 31-3-1993 and 31-3-1994, using the prevailing rate and method of depreciation in Tube light & Co.

Q 3 (b) (i) From the given data as on 31-3-1995. calculate the QUICK RATIO for Mr. Johnson :

Debtors Rs. 30,000
Outstanding Expenses 17,000
Cash 23,000
Bills Payable & Creditors 38,000
Income earned not received 6,000
Bank Overdraft 23,000
Bills Receivable 7,000
Pre-paid Expenses 4,000

NOTE : Calculation of the data for the Quick Ratio needs some working, which if shown, will help to gain marks. The actual Quick Ratio calculation must be shown, clearly, to gain marks.

(ii) Based on the significance of  the Quick Ratio worked out for the above data, answer in one word. Is it 'Adequate' or 'Inadequate' ?

Next



 
Home | Abroad | Academics | Advice | Alumni Associations | Career Watch | Competitive Exams | Career Counseling | Distance Education | Forms | Organisations | Relax Zone | MBA | Engineering | Medical | Humanities | Sciences | Computers ICSE/ISC/CBSE | Scholarship | Loans
 
 Contact Us | Feedback | Advertise | Disclaimer | Privacy Policy
 
©2000-2001 All rights reserved "DD Web Vision Private Limited"

Site developed by