Accounts - 1998 (I.C.S.E)
You on questions 4 to 6

SECTION -B 

Q 4 (a) M/s Ram and Rahim in the construction line bought three cement mixers costing Rs120000 each on July 1, 1995. They expected  to fetch a scrap value of Rs 20000 per mixer after using each of them for four years.
Accordingly, the Fixed Installments Method was used for two accounting years. At the end of the second accounting year, one mixer was sold off, fetching an immediate cheque payment of Rs 50000
From April 1, 1997, it was decided to apply the written Down Value Method @30% p.a for depreciation. Prepare the current mixtures A/c for three years ending on 31-3-1998, incorporating the above data. 


Q 4(b) Answer the following questions , based on the data given :
i)Value of Capital Employed
ii)Value of Quick Assets
iii)Value of Non-Quick Liabilitiesa
iv)State the equation for and then work out the Debt Equity Ratio.
Balance Sheet of Mr. Go Getter as on 31-3-1997

Q 5 River, Well, Spring and Lake are in partnership. Their firm name is Plentiful Waters & co.They have mutually agreed to :
(i) Allow Interest on Capital @ 15% p.a.
(ii) Charge Interest on Drawing @ 10% p.a.
(iii) Accept Well's claim for a salary of Rs.6000 per month for six months only for round the clock work put in by him in the drought stricken areas
(iv)Charge an annual allowance of Rs.1500 per two months per partner to the buisness to help cover expenses and compete successfully with cut-throat competition
(v) River and Well have each contributed equally towards total Loan Capital of Rs.10,00,000  borrowed by the firm from them.
(vi) Rs.20000 p.a. is set aside as Reserve if the Net profit available for appropriation is greater than Rs.5,10,000.
(vii) For sharing the residue of profits, River's profit share is 50% . Partners Well, Spring , and Lake get their share from the remaining profit in the ratio of 2 : 2: 1
The required data for the year 1-4-95 to 31-1-96 is-
(a) Capital- River Rs. 6,00,000 , Well Rs.400000 Spring and Lake 500000 Rs. each
(b) Each withdrew 10% of their opening capital balances as on 1-4-95 as drawings for the years .
(c) The years net profit b/d from the Profit / Loss A/c is reported as Rs.5,06,000.   Its scrutiny reveals that the partners annual allowance was debited in the P/L A/c and that Rs.20000 payable to the buisness manager as his special commission had not been accounted for at all.

Compile the Profit and Loss Appropriation A/c only.using the facts and financial data given. 

Q 6 Compile final accounts for the club for the year ending 31-3-1996.
Active action Club Balance Sheet as on 31-3-1995.

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