Time: 1 Hours

Q 1.

DARAK TUTORIALS NANDED Unit Test - 01 Book Keeping & Accountancy

Marks: 50

Attempt any four of the following sub-questions: [6] (A) Answer in One sentence each 1) What is Single Entry System? 2) When Joint Bank is opened? (B) Write a word /term which can substitute each of the following statements 1) Profit earned over and above normal profit. 2) A person who endorses the bill. (C) Select the most appropriate alternative from those given below 1) Depreciation is charged only on the .. (a) Current assets (b) intangible assets (c) immovable assets (d) fixed assets 2) Unsold stock of joint venture taken over by co-venturer is credited to (a) Co-venturer A/c (b) Joint Venture A/c (c) Joint Bank A/c (d) Stock A/c

Q 1. Sridhar owed Rs. 24,000 to Giridhar, hence accepted a bill drawn on him by Giridhar at 3
months on l2t March, 2007. On the same date Giridhar endorsed it to Murlidhar. On 12th June, 2007 Sridhar requested Giridhar for the renewal of the bill. Giridhar agreed on the condition that Sridhar should pay half the amount due immediately by cheque and should accept a bill for the balance along with interest @ 10% p.a. for 2 months. These arrangements were carried through. On the same date, Giridhar sent the new bill to the bank for collection. On the due date, the new bill was honored and bank charges debited were Rs. 100. OR Journalise the following transactions in the books of Ashwin. a) Bank informed that Sachins acceptance for Rs. 5,750 sent to bank for collection had been honored and bank charges debited were Rs. 50. b) Nitin renewed his acceptance for Rs. 7,200 by paying Rs. 2,200 in cash and accepting a new bill for the balance plus interest @ 8% p.a. for 3 months. c) Discharged our acceptance to Pravin for Rs. 4,250 by endorsing Bhavins acceptance-to us for Rs. 4,000. d) Jatin who had accepted Ashwins bill of Rs. 8,500 was declared insolvent and only 40% of the amount due could be recovered from his estate. [12]

Q 2. Rajani Builder, Akola purchased Machinery on 1st April 2006 for Rs. 1,00,000. On 1st April
2007 additional machinery was purchased for Rs. 40,000. On 1st Oct. 2008, they sold half of the Machinery purchased on 1st April 2006 for Rs. 35,000.On 31st March every year they charge depreciation at the rate of 10% p.a. under Reducing Balance Method. Prepare Machinery Account and Depreciation Account for three years i.e. 2006-07, 200708 and 2008-09 and give Journal Entries for the year 2008-09. [10]
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Q 3. Ram and Laxman entered into Joint Venture to send 1,000 bags of wheat to Hanuman to
be sold on their joint risk which is in proportion of 70% and .0% respectively. . Ram sent 650 bags of wheat @ Rs. 1,200 each, paying Rs. 5,000 for freight and Rs. 3,250 for insurance and other expenses. Laxman sent 350 bags of wheat @ Rs. 1,000 each, paying Rs. 2,200 for freight and Rs. 1,850 for insurance and other expenses. Ram drew a bill on Laxman of Rs. 50,000 for 3 months, as an advance and discounted it at Rs. 48,000. The discount being traded as joint venture expense. Hanuman sold all the bags @ Rs. 1,250 each. He charged for sales commission at 5% and for selling expenses at 2% on total sales. Hanuman remitted Rs. 7,00,000 to Ram and the balance to Laxman. Prepare Joint Venture Account Laxmans Account and Hanumans Account in the books of Ram. [12]

Q 4. Maharaja keeps his books by single entry method. His position on 1st April, 2004 was as
follows:Cash in Hand Rs. 7,900; Cash at Bank Rs.20,000; Debtors Rs. 18,000; Stock Rs.29,000; Furniture Rs.5,000; Creditors Rs. 18,000; Outstanding expenses Rs.2,700 On 1st October, 2004 Maharaja introduced Rs. 10,000 as further capital in the business and withdrew on the same date Rs.7,000 out of which he spent Rs.5,000 on the purchase of a machine for the business. On 31st March, 2005 his position was as follows:Cash in Hand Rs.7,600; Cash at Bank Rs.22,000; Stock Rs.30,000; Debtors Rs.25,700; Furniture Rs.6,000; Creditors Rs.25,200; Prepaid expenses Rs.200, Machinery Rs. 5000 Prepare a statement showing the profit or loss made by him during the year ending 31 st March, 2005 after making the following adjustments. a) Depreciate Furniture and Machinery @ 10 % p. a. b) Write off bad debts Rs. 1,200 and provide 5% for doubtful debts. c) Goods taken for personal use amounted to Rs. 1,500. d) Provide interest on capital at 10 % p.a. [10]

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