ICSE Set Set1 97 Year Icse Account Set1 97.php Exam Paper ICSE Board Exam Paper for students online

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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' ?

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. 


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
    Pre-paid Insurance for varied policies 10,000
    Stock of  Medicines 40,000
    Advance against wages to employees 5,000
  _________ Cash & Bank 56,000___
  14,26,000   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
    By Drawings (including for LIC and IT) 1,40,000
  _______ By Balances 69,500
  5,38,000   5,38,000

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.



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.
        received during the year By Cash/Bank   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 : EG'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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