PNB ‘Total No. of Printed Pages : 12 LAL QER. Total No. of Questions : 6 Roll No. Maximum Marks : 100 Time allowed : 3 Hours INSTRUCTIONS TO CANDIDATES case of candidates who have Answers to questions are to be given only in English except in the tate opted for Hindi Medium. If a candidate has not opted for Hindi Medium, hi Hindi will not be valued. Question No. 1 is compulsory. Candidates are also required to answer any four questions from the remaining five questions. Working notes should form part of the respective answers. State with reasons, whether the following statements are True or False: 1 @) As per Concept of Conservatism the accountant should provide for all possible @ losses, but should not anticipate income. (i) Expenses in connection with obtaining a license for running the Cinema Hall are Revenue Expenditure. UG Under or over — casting of a subsidiary book is an example of error of 1 comamissién. (iv) If Del-credere commission is paid to consignee, the loss of bad debts is to be borne by the consignor. (v) Perpetual debentures are payable at the time of liquidation of the company. (vi) Overhead is defined as the total cost of direct material, direct wages and direct (6x 2= 12 Marks) expenses. PNB P.T.0. ‘Scanned with Comseannera: (a) DY Reie (WY Betedly explain the following torma: W Matoviatity GD Conservatism (QO Extraordinary item (iv) Floating Charge Oe 4 Marks) (© Enter the following transactions in Sales Book of Gurgaon Engineers, Gurgaon for January 2022 : each less-trade discount 15% | 10 | Sold to Ajanta plaza 8 pieces of Mixer grinders @ © 12,500/- each less trade discount 10%. 20 | Sold to Naveen traders, 15 pieces of juicers @ & 5,500/- each less trade discount 5% (4 Marks) The following balances appear in the books of Dheeraj Enterprises z Machinery account as on 01.04.2021 12,00,000 Provision for depreciation account as on 01.04.2021 | 4,65,000 On 1* October 2021 the Machinery which was purchased on 1* April 2018 for = 200,000 was sold for % 1,10,000 and on the same date another Machinery was purchased for ¥ 4,80,000. The firm has been charging depreciation at 10% p.a. on written down value of the Machinery every year. Prepare the Machinery account, Provision for Depreciation account and Machinery disposal account for the year ending 31" March 2022. (10 Marks) PNB Scanned wth Comscanee(3) PNB () From the following: information prepare a Bank Reconciliation statement as on 316 Mareh 2022 for A Ltd x Bank overdraft as per cash book as 31* March 2022 15,50,750, 1. | Cheques deposited on 15" February, 2022 credited on 5» April, 2022 | 12,50,000 i? Interest debited by bank on 31 March, 2022 1,75,500 3. | Cheques issued before 31 March, 2022 but not yet presented. 7,75,000 4. | On 10 March, 2022 bank credited to A Ltd in error 150,000 Draft deposited in bank but not credited till 31+ March, 2022 12,75,000 6. | Bills for collection credited by bank but no advice recsived by the company “17 9,45,000 7. | Bank charges charged by bank not entered in cash book 2,85,000 es 8. | Transport subsidy received from the state government directly by the bank not advised to the company te 17,50,000 (6 Marks) ‘PNB P.O. ‘Scanned with Comseanner3. © @) (4) PNB account of Ram showed a net profit of © 5,75,000 after 000 on 31" March 2022, Subsequently the The Profit and Lo considering the closi following information \ Purchases for the year included € 10,500 paid for electrical fittings of the shop. 1 Btock of T obtained from scrutiny of the books. @ Gi) Ram gave goods worth of ® 25,000 as free samples for which no entry was made. Gii) Invoices for goods amounting to % 1,85;000 have been entered on 29% March 2¢ but were not included in the stock. Gv) Sales amounting to % 2,05,000 were dispatched on 27'* March but were included in sales of April, 2022. (©) Goods costing ® 56,000 were sent on sale or return basis in March 2022 at a margin of profit of 33 4 %%on cost: Approval w was given in April 2022 but these were considered as sales in March, 2022. Calculate the value of stock on 31* March 2022 and the adjusted net profit for the year (5 Marks) ended 2022. ‘Akbar & Sons of Surat consigned 500 toys to Amar & Sons of Ahmadabad at a cost of = 800 each. Consignor paid freight = 8,000 and insurance % 2,500. During transit, 30 toys were totally damaged. Amar & Sons took delivery of remaining toys and paid % 14,100 as local taxes. Amar & Sons sent a bank draft to Akbar & Sons for % 80,000 as advance payment and later sent an account sale showing that 400 toys had been sold’ at © 1,500 each. Amar & Sons incurred expenses on godown rent amounting to € 3,500. Amar & Sons was entitled to commission of 6%. One of the credit customers could not pay for 10 toys and nothing was recovered from insurers due to a defect in the policy. You are required to prepare Consignment Account of Amar & Sons Account in the (10 Marks) books of Akbar & Sons. PNB a Scanned wth Comscaneeww) PNB ) Journalise the following transactions in the books of Karthik : @ Karthik accepted a bill to Balu for © 3,500 discharged by a cash payment. of * 1,500 and a new bill for the balance plus © 76 for interest, Gi) Gopal acceptance for & 4,500 which was endorsed by Karthik to Mohan was dishonoured. Mohan paid © 50 as noting charges. Bill was withdrawn against cheque. (i) Doshi retires a bill for € 2,500 drawn on him by Karthik for 25 discount. Gv) Karthik’s acceptance to Prem for € 6,500 discharged by Prem. Ashok’s acceptance to Karthik for a similar amount. (6 Marks) () Attempt any ONE of the following two sub-parts i.e. either (i) or @ — Seeta and Geeta are two partners in the firm, have drawn the following amounts from the firm during the year ended 31s March 2023:: Date Amount | Drawn By 01.04.2022 | 53,000 Seeta 14.09.2022 | 20,000 Geeta 7 p 20.11.2022] 35,000 | Seta i qo pe } 16.01.2023 | 25,000 | Seeta }0 rn GAL "71.03.2028 | 22,000 | Geeta _ g Ne interest is charged @12% p.a. on all drawings. Calculate interest chargeable a 8 bron each partner by using average due date system. © For calculation of average due date Consider 1" April, 2 1 year = 365 days. 022 as base date and ( Marks) ‘Scanned with Comseanner(a) PNB Gi) Moora Enterprises anton goods on ‘wales or ret to fow customers, All such transactions are booked as actual sales, On 31 March 2022 the trade receivable balance stood at © 1,10,000 which included © 10,000 goods sent on those goods approval against which no intimation was received during the y¢ Jove cost-prica te Mr. Arun, tion of acceptance for & 6,000 goods on 15* April 2022 and Mr.Arun sent i balance goods returned. Make the adjustment entries and show how these items will appear in the Balance Sheet on 31* March, 2022. Also show the entries to be made during April, 2022. Value of closing inventories as on 31* March, 2022 was © 70,000. ' (6 Marks) Following is the Receipts and Payments account of Pune Medical Aid Society for the year ended 31-12-2022, Receipts and Payments Account for the year ended 31-12-2022 Receipts ‘Amount Payments ‘Amount x x To Opening cash in hand “12,000 | By Medicine supply 35,000 To Subscription / J 65,000 | By Honorarium to Doctors 15,000 To Donations ce | 25,000] By Salaries |~ 36,000 To Interest on Investment (10%) | 10,000 | By Sundry expenses , 7 y| 950 To Charity show collection 16,500 | By Purchase of Medical equipiyént | 25,000 . By Charity show expenses, 2,750 By Closing Cash in hand 7 13,800 [ 1.28,600 . | 128,500 ‘Scanned with Comseanner(7) PNB ‘The following 18 the additional information provided. OLO1-2022 | 31-12-2025 Amount. | Amount t t pd Subscription due 2,500. 3,100 | Subscription received in advance 1,800 1,400 Stock of medicine 12,500 17,250 Amount due for medicine supply 12,000 16,500 Value of equipment 21,500] 37,200 = | Yate of building 65,000] 61,750 You are required to prepare Income and Expenditure account and Balance sheet as on 31-12-2022, (15 Marks) (®) X and ¥ were partners in a firm, sharing profit and losses in the ratio of 3 : 2. They admit Z for 1/6" share in profits and guaranteed that his share of profits will not be less than 50,00,000. Total profits of the firm for the year ended 31" March, 2022 were -1,80,00,000. Calculate share of profit for each partner when : (i) Guarantee is given by firm (i) Guarantee is given by A and B equally. (5 Marks) ~ ~ 3 AME ‘Scanned with ComseannerREST TARASTI a PNB A.B and © wore trading in partnorship sharing profit and losses in the proportion of 1 December, 2022 subject to final i338. The balances in tho books of the firm as on 3 adjustment were as under: Debit | Credit ‘Amount | Amount & x Capital Accounts A 2,25,000 B 1,12,500 c 1,85,000, [Corrente ‘Account a ‘36,000 B 54,000 c 54,000 Land and Building 41,80,000 Furniture and Fixtures 33,750 ‘Stock 2,81,250 Debtors 45,000 Bank Account ‘90,000 Profit for the year before charging interest 2,34,000 : Creditors 67,500 Total 7,74,000 | 7,74,000 PNB ‘Scanned with Comseannera) PNB Regarding Goodwill may be made separately, instead of through Rovaluation Account C died on 30 June, 2 @ ® (ce) 022. The Partnership deed provided that; Interest was credited on Capital Account of Partners an @ 12% per annum on the balance at the beginning of the year. On the death of partner @) Goodwill was to be valued at three years purchase of average annual profits of three years up to the death, after deducting interest on capital employed at 10% p.a. and a fair remuneration for each of the partners. (GG) Fixed assets were to be valued by an independent valuer and all other assets and liabilities to be taken at book value, and Whenever necessary, profit or loss should be apportioned on a time basis. You ascertain that: @) Profit for three years, before charging partners’ interest we 2019 2,52,000 2020 2,83,500 2021 2,70,000 PNB PTO, ‘Scanned with Comseanner(10) PNB G1) The independent valuation on the date of death reven Land and Building ® 2,25,000 Furniture and Fixtures 22,500 ii) For valuation of goodwill a fair remuneration for each of the partners would be % 56,250 per annum and that the capital employed in the business to be taken as € 5,85,000 throughout. It was agreed between the partners that : (1) Goodwill was not be shown as an asset of the firm as on 31* December, 2022. Therefore, adjustment for goodwill was to be made in Capital Accounts. (2) The amount due to C’s Estate was to remain as loan with the firm carrying interest at 12% p.a. (3) Aand B would share profits equally from the date of death of C. (4) Depreciation on revised value of assets would be ignored. PNB Scanned wth Comscanee6 PNB You are required to prepare: (\)__ Partners’ Capital Account and Current Account; and (B) Balance Sheet of the firm as on 31 December, 2022. Working should be done correct to the nearest rupee. (20 Marks) (a) BP Limited issued a prospectus inviting applications for.1,20,000 equity shares of £10 each at a premium of € 2 per share payable as follows : On Application — ®8per share On Allotment = €5 per share (including premium) oxt On First and Final Call ~ %4 per share Applications were received for 3,60,000 equity shares. Applications for 80,000 shares a __Wwere rejected and the money refunded. Shares allotted to remaining applications as follows: Category No. of shares Applied No. of shares Alloted I 1,60,000___.. 80,000 " 1,20,000 _ 40,000 ‘Scanned with Comseanner®) received with applications was adjusted towards sums due on Excoss_ money alls wore made Allotment and the balance amount returned (o the applicanta, All duly received except the final call by a shareholder belonging to Category I who has ted hi jasued applied far 680 shares. His shares were forfeited. The fo! at © 18 per share fully paid-up. Pass necessary journal entries for the above transactions in the books of BP Ltd Open call in arrears account whenever required. (15 Marks) What are the importance of Journal? (6 Marks) ‘Scanned with Comseanner