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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' ?
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