Smt.

Mithibai Motiram Kundnani

College of Commerce & Economics
Bandra West, Mumbai 50.

SYJC Preliminary Examination 2022

Date: 28/01/2022 Marks: 80
Time: 3 hrs.
______________________________________________________________

Q1: Attempt the following Sub Question. (20)

(A) Select the correct options & rewrite the sentences : (5)
1) The balance on the Capital A/c of the deceased partner is
transferred to his ______________ Account.
(a) Loan A/c (b) Wife’s Loan (c) Executor’s Loan (d) Son’s Loan
2) The Closing Balance of Receipts and Payment account usually
represents ____________ balance.
(a) Surplus (b) Deficit (c) Closing Stock (d) Cash & Bank.
3) __________ software is distributed illegally in violation of copyright
law.
(a) Demo (b) Fake (c) Licensed (d) Pirated
4) To find out Net Profit or Net Loss of the business __________
account is prepared.
(a) Trading (b) Capital (c) Profit & Loss (d) Current.
5) The common size statement requires ____________.
(a) Common base (b) Journal Entries (c) Cash flow (d) Current Ratio

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(B) Write a Word/Term/Phrase which can substitute each of the
following statements. (5)
1) Issue of shares at their face value.
2) Person who is in possession of Bill of Exchange.
3) Ratio by which continuing partners are benefited on the retirement of
a partner.
4) Under this method Capital balances of partners remain constant.
5) Receipts which are not recurring in nature.

(C) Find the odd one: (5)

1) Building, Machinery, Furniture, Bills payable.
2) Trading Account, Profit and Loss Account, Receipts and Payments
Account, Balance Sheet.
3) Surplus, Deficit, Net Profit, Capital Fund.
4) Notary Public, Drawer, Drawee, Payee.
5) General reserve, Creditor, Machinery, Capital.
(D) Calculate the following : (5)
1) When depreciation is ₹7,500 and closing balance of Library books is
₹92,500. Calculate the opening balance of Library books.
1 1
2) A, B and C are partners sharing profits in the proportion of 2
, 3
and
1
6
. If A retires, what will be the new profit sharing ratio?
3) 12% p.a. interest on Bank loan ₹80,000 for 6 months. Calculate
interest.
4) Insolvent partners capital A/c debit side total is ₹1,00,000 and credit
side total is ₹60,000. Calculate deficiency.
5) Insurance premium is paid for the year ending 30th September 2020,
amounted to ₹1,500. Calculate prepaid insurance assuming that the
year ending is 31st March 2020.

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Q2: Anil and Sunil were partners sharing profits and losses in the ratio of
2:1 respectively. Their Balance Sheet was as follows: (10)
st
Balance Sheet as on 31 March, 2020.
Liabilities Amount (₹) Assets Amount (₹)
Capital A/cs: Cash at Bank 4,000
Anil 24,000 Debtors 15,000
Sunil 16,000 Stock 23,500
Trade Creditors 26,000 Furniture 5,000
Anil’s Loan A/c 6,500 Building 25,000
72,500 72,500
st
On 1 April 2020, Ram is admitted in the partnership on the following terms:
1
(1) Ram should bring in cash of ₹12,000 as capital for 5
th share in future
profits.
(2) Goodwill A/c be raised in the books of the firm for ₹4,500.
(3) Building is revalued at ₹28,000 and the value of stock be reduced by
₹1,500.
(4) Reserve for doubtful debts be provided at 5% on debtors.
Prepare : (a) Profit and Loss Adjustment account.
(b) Capital Accounts of partners.
(c) Balance Sheet of the new firm.

OR

Q2: The Balance sheet of Ram, Shyam & Ghanshyam sharing profit and
losses 3:2:1 respectively.
Their position on 31-03-2019 were as follows: (10)
Balance Sheet as on 31st March, 2019.
Liabilities Amount (₹) Assets Amount (₹)
Capitals: Bank 54,000
Ram 1,20,000 Debtors 90,000
Shyam 90,000 Building 60,000
Ghanshyam 60,000 Investment 1,50,000

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 Creditors 22,000
Bills Payable 62,000
3,54,000 3,54,000
st
Ghanshyam retired on 1 April, 2019 on the following terms.
(1) Building and Investment to be appreciated by 5% and 10% respectively.
(2) Provision for Doubtful Debts to be created at 5% on Debtors.
(3) The provision of ₹3,000 be made in respect of Outstanding Salary.
(4) Goodwill of the firm is valued at ₹90,000 and partners decide that
goodwill should be written back.
(5) The amount payable to the Retiring partner be transferred to his Loan
A/c.
Prepare: Profit and Loss Adjustment A/c, Partners Capital A/c, Balance
Sheet of New firm.

Q3: Following is the Balance Sheet of Vaibhav, Sanjay and Santosh. (10)
Balance Sheet as on 31st March, 2019.
Liabilities Amount (₹) Assets Amount
(₹)
Capital A/cs: Machinery 6,000
Vaibhav 36,000 Goodwill 9,000
Sanjay 27,000 Stock and Debtors 57,000
Creditors 12,000 Profit & Loss Account 18,000
Bank Overdraft 18,000 Santosh’s Capital 3,000
93,000 93,000
Santosh is declared insolvent so the firm is dissolved and assets realized as
follows:
(1) Stock and Debtors ₹54,000, Goodwill – NIL, Machinery at Book value.
(2) Creditors allowed discount at 10%.
(3) Santosh could pay only 25 paisa in rupee of the balance due.
(4) Profit sharing ratio was 8:4:3.
(5) A contingent liability against the firm ₹9,000 is cleared.
Give Ledger Accounts to close the books of the firm.

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 OR

Q3: Journalise the following transaction in the books of Abhishek:- (10)

(a) Siddhant informs Abhishek that Vineet’s acceptance for ₹23,000
endorsed to Siddhant has been dishonoured. Noting Charges amounted
to ₹430.
(b) Kajal renews her acceptance to Abhishek for ₹39,000 by paying ₹3,000
in cash and accepting a fresh bill for the balance along with interest at
11.5% p.a. for 3 months.
(c) Radhika retired her acceptance to Abhishek for ₹23,000 by paying
₹22,250 by cheque.
(d) Abhishek sent a bill of Subodh for ₹9,000 to bank for collection. Bank
informed that the bill has been dishonoured by Subodh.

Q4: The Alfo Ltd., made an issue of 10,000 Equity shares of 20 each
payable as follows: (8)
Application: ₹ 5 Allotment: ₹ 10
First Call: ₹ 2 Final Call: ₹ 3
The company received applications for 15,000 shares of which applications
for 5,000 shares were rejected and money refunded. The directors made all
the calls. One shareholder, holding 100 shares failed to pay first and final
call. Pass Journal Entries in the books of Alfo Ltd.
OR

Q4: Explain Features of Computerized Accounting System. (8)

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Q5: Supriya, Surekha and Sujata were partners sharing profits and losses
in the ratio of 2:2:1 respectively. Their Balance Sheet as on 31st March,
2012 was as follows : (8)
Balance Sheet as on 31st March, 2012.
Liabilities Amount Assets Amount
(₹) (₹)
Capital A/cs: Land and Building 50,000
Supriya 40,000 Stock 30,000
Surekha 40,000 Debtors 37,500
Sujata 20,000 Less: R.D.D. - 2,500 35,000
Reserve Fund 10,000 Furniture 10,000
Creditors 16,000 Cash at Bank 5,000
Outstanding Expenses 4,000

1,30,000 1,30,000
Sujata died on 1st July, 2012 and the adjustments were agreed to as per the
deed as follows:
(1) Land and Building to be valued at ₹60,000 and all debtors were good.
(2) Stock be depreciated by 10%.
(3) The drawings of Sujata upto the date of her death amounted to ₹2,000.
(4) Interest on capital was to be allowed at 10% p.a.
(5) The deceased partner’s share of goodwill is to be valued at 2 years
purchase of average profit of last 3 years. The profits were:
2009-10 = ₹15,000; 2010-11 = ₹17,000; 2011-12 = ₹13,000
(6) The deceased partner’s share of profit upto the date of her death should
be based on the average profit of last two years.
Prepare : (a) Profit & Loss Adjustment A/c.
(b) Sujata’s Capital Account &
(c) Working Notes for Goodwill & Share of Profit.

OR

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Q5: Prepare common size Income Statement for the year ended 31.3.17
and 31.3.18 (8)
Particulars 31.03.17 (₹) 31.03.18 (₹)
Sales 2,00,000 2,00,000
Cost of goods sold 1,50,000 1,70,000
Office and Administrative Expenses 4,000 6,000
Selling and Distribution Expenses 6,000 1,000

Q6: From the following transactions of Receipts and Payments Account of

“Pavan-Putra Hanuman Vyayamshala” Parbhani, and the adjustments
given, you are required to prepare Income and Expenditure Account and
Balance Sheet as on 31st March, 2019. (12)
Receipts and Payment Account for the year ending 31.03.2019.
Dr. Cr.
Receipts Amount Payments Amount
(₹) (₹)
To Balance b/d By Salaries 6,000
Cash in Hand 5,000 By Entertainment 2,480
To Subscriptions Expenses
2018 – 19 18,000 By Sundry Expenses 1,300
2019 – 20 410 18,410 By Electricity Charges 1,200
To Donations 6,000 By Rent 700
To Receipts from 5,400 By Investment 15,000
Entertainment By Printing & Stationery 800
To Interest 400 By Postage 3,200
To Entrance fees 6,200 By Fixed Deposit 3,900
By Balance c/d
Cash in Hand 6,830

41,410 41,410

Adjustments :
(1) There are 500 members paying an annual subscription of ₹50 each.
(2) Outstanding Salary was ₹1,200.

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(3) The Assets on 01.04.2018 were as follows: Building ₹50,000, Furniture
₹15,000.
(4) Provide depreciation on Building and Furniture at 5% and 10%
respectively.
(5) 50% of Entrance Fees is to be capitalized.
(6) Interest on Investment at 5% p.a. has accrued for 6 months.
(7) Capital Fund ₹70,000 on 01.04.2018.

Q7: Rekha and Sonal are partners sharing profits and losses in equal ratio.
From the Trial Balance given below and Adjustments, you are required to
prepare Trading and Profit and Loss Account for the year ended on 31st
March, 2017 and Balance Sheet as on that date. (12)
Trial Balance as on 31st March, 2017.
Debit Balance Amount (₹) Credit Balance Amount (₹)
Stock (1st April 2016) 32,500 Sundry Creditors 45,325
Purchases 44,500 Sales 61,000
Sundry Debtors 1,00,000 Capital :
Investment 40,500 Rekha 1,20,000
Insurance 10,200 Sonal 40,000
Plant & Machinery 15,000
Salaries 4,850
Bad debts 500
Furniture 12,500
Cash in hand 5,775

2,66,325 2,66,325

Adjustments :
(1) Closing stock is valued at ₹28,000.
(2) Goods of ₹3,000 distributed as free samples.
(3) Provide further Bad Debts of ₹800.
(4) Depreciate furniture at 5% p.a.
(5) Insurance ₹1,875 is prepaid.