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Accounts - 1997
(I.C.S.E)
You are on
questions 4 to 6 |
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SECTION -
B
Q 4 Ms. Bubble and Mr. Blow,
each doing business as sole proprietors, started a partnership 'Glow
Food Products' on 1st April, 1993. Mr. Blow brought in machinery
valued at Rs. 5,50,000 where as Ms. Bubble brought in office
Equipment costing Rs. 50,000 and 50% of a Legacy of Rs. 15,00,000
she had inherited .Mid-year on 30-9-1993, Mr. Blow invested Rs.
1,00,000 as Loan Capital.but claimed interest @ 20% p.a. (agreed
upon because the firm needed working
capital).
Their Deed duly
registered reflects :
(a)
Interest on Capital allowed @ 10% p.a. Interest on Drawings @ 20%
p.a. to be charged only on the monthly uniform drawings of
each.
(b) Loan capital if introduced , bears
interest (to be reflected in the capital a/c)
(c) A holiday allowance of Rs. 7,000 each
to be appropriated from the yearly Net profit (drawn in cash
on 30th september of the year by each of them)
(d) Accounts for an entertainment
allowance for Mr. Blow,@ Rs. 1,000 per month.
(e) Accounts for a 2% commission earning
on gross profit for Ms. Bubble (G.P. =5 times the year's N.P. in the
first year .)
(f) The maximum permissible amount
of monthly drawings is Rs. 5,000 each -whilst Mr. Blow withdrew this
amount ,Ms. Bubble drew only Rs. 3,000 per month .
Compile the profit and loss appropriation
A/c. for the first year and partner's personal accounts . Their
profits & loss A/c. reflected a credit balance of Rs.
2,10,000 for 1993-94.
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Q 5 Dr.
Rog-Research, a ' Bharat Ratna ' recipient , reports the
following balance sheet as on 31-3-1994.
Balance Sheet as on 31-3-94
| liabilities |
amount Rs. |
Assets |
amount
Rs. |
| Capital |
7,30,000 |
Land bought
(development work not started) |
1,00,000 |
| Research Wing Fund
through Govt. Aid |
6,50,000 |
Client &
Equipment |
5,00,000 |
| 5% Bank Loan |
40,000 |
Research Wing (in use
from 93-94) |
5,85,000 |
| Subscription-for
Research leaflet |
6000 |
Advanced against order
for Laser Equipment |
1,30,000 |
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Pre-paid Insurance for
varied policies |
10,000 |
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|
Stock of
Medicines |
40,000 |
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Advance against wages
to employees |
5,000 |
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_________ |
Cash &
Bank |
56,000___ |
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14,26,000 |
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14,26,000 |
| His auditor reports the
following summary of cash received and paid, during April
1994-March 1995. |
| Receipts &
Payments A/c for the year ended
31.3.1995 |
| Particulars |
Amount |
particulars |
Amount |
| To
Balance |
56,000 |
By Expenses-as
needed |
92,000 |
| To Honorarium
-weekly lectures to medical students |
45,000 |
By expenses on
research activity |
80,000 |
| To
Subscription-Research leaflet |
51,000 |
By
Medicines |
55,000 |
| To Consultation
Fees |
2,10,000 |
By final
instalment of advanced for laser equipment (paid on
31-3-95) |
20,000 |
| To Dispensing
Fees |
96,000 |
By Wages
|
80,000 |
| To Special Govt.
Grant for Research |
80,000 |
By Interest on
loan |
1,500 |
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By Drawings
(including for LIC and IT) |
1,40,000 |
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_______ |
By
Balances |
69,500 |
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5,38,000 |
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5,38,000 |
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Adjustments
:-
(1) Depreciation of assets being used @ 10% p.a. on W .
D .V method.
(2) 500 subscribers to the Research Leaflet for 1994-95
to pay Rs. 100 annually.
(3) Stock of medicines Rs. 38,000 on
31-3-95.
Compile the doctor's final
accounts for 1994-95.
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Q
6(a) Give complete
journal/entries for each of the following miscellaneous lot of
transactions :
(i) Accounting the closing stock at the
end of the year , which is given as Rs. 46,000, an
overvaluation by 15%.
(ii) Closing entry for Depreciation A/c.,
which is debited with Rs. 75,000 and credited by Rs.
6,000(excess depreciation written off duly rectified).
(iii) The entry to account for the year's
net profit of Rs. 1,20,000 earned by M/S Reputed for honesty Co.,
whose owners compile the required account annually to reflect the
distribution of profits earned , in accordance with their
Deed.
(iv) The entry to close the profit on
sale of furniture A/c .reflecting an amount of Rs. 6,800.
(v) Account for an account payee cheque
for rupee fifty lakhs received by 'homes for the Homeless '(a
reputed social welfare organisation )to augment their Housing Fund
A/c.
(vi) Closing entry for Returns Inward A/c
Rs. 15,000.
Q 6 (b) Extract from the ledger of
north India Activities Club for April 92 to March 93,having a
membership of 4,000. subscribing Rs. 50 each annually.
Subscription A/c
Dr.
Cr.
| Date |
Particulars |
JF |
Rs. |
Date |
Particulars |
JF |
Rs. |
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received during the
year |
By Cash/Bank |
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1,80,000 |
Note :- The subscription A/c includes Rs.
5,000 and Rs. 4,500 of the accounting years ending on 31-3-92 and
31-3-94 respectively . The treasure reports that Rs. 3,500
reflected as a current liability in the balance sheet as on
31-3-92.
As your answers ,with reference to
'subscription', indicate the rupee-values only for each of the
following : E>G>'Rs. ........'.
(i) Current assets as on
31-3-1992.
(ii) Current asset as on
31-3-1993.
(iii) Amount received totally as
Revenue Receipts during 1992-93.
(iv) Current Liability as on
31-3-1993.
(v) Revenue Income for the year 1-4-1992
to 31-3-1993.
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