SECTION - A
Q 1 (a)
State true or false :
(i) Every educational center- be it a nursery , primary , secondary or
higher secondary school-is registered as a non - trading organisation in
(ii) Only Trading Units compile Trial Balances to help complete Final
(iii) Commercial organisations set up for business profits can undertake
to do charities , but charitable organisations cannot be granted
permission to register as profit -oriented units.
(iv) In a given year of accounting , Bad Debts A/c and Bad Debts Recovered
A/c. necessarily involve the same client.
(v) A retrospective change in the method of depreciation involves
adjustment in the reduced value of an asset , as on the date of decision.
(b) The following question has to be
answered using two columns. Rewrite Column 1 in the order
given. Column 2 contains descripitive phrases for the items in column 1.
Match the phrases to suit the items in column 1 by selecting phrases
from Column 2. Ignore those that remain:
i) Original Cost Price method
Surplus as the goal
ii)Building A/c .debited for
use the Journal Proper.
iii)Professionals work for
the overall compensation paid
iv)Sole Trader works for
associates with Capital
v) To set off 'Mr. O Customer
A/c .' against 'Mr. O Creditor A/c'
Landed cost of asset less scrap
value if any, distributed over a given life-span.
profit as the motive. aptly
described as deferred repairs.
(c) Each statement given below has two
blanks , a word or phrase blank and the rupee-value blank .As your answer
for each, indicate the word or phrase or 'Rs.
' in the blank spaces provided. The serial order of statements (i) to
(iii) should not be disturbed.
(i) If Mr. A and Mr. B report current account bal. of Rs. 10000 (Dr) and
Rs. 15000 (Cr.) respectively , and as per the Partnership Deed , if
interest on current A/c. bal. @ 10% p.a. is to be charged from the
the interest will be Rs. .
ii) If Capital Fund on 1.4.1995 = Rs. 1500000 and a legacy received
capitalised = 10% of the amount , and the closing Capital Fund on
31.3.1996 works out to Rs. 1900000 the year's
iii)If the Net Profit ratio also referred to as the
is equal to 25% and if Net Turnover is quoted as Rs. 400000 , the Net
Profit is Rs.
Q 3 Computer Equipment A/c. in the ledger of an MBA in the
consultancy line reflects a bal. b/d of Rs. 177500 for 3 units , as
on 1.4.1993 Depreciation rate is 10% p.a. , Fixed Installment basis . The
annual depreciation amounts are Rs. 10000 + Rs 5000 + Rs 7500 .Their
annual servicing cost is Rs. 5000.
On 1.3.94 an advance of Rs. 20000 was paid to buy three 'printer ' units
for the existing computers.
Finally , on 30.6.94 , the bal. amountof Rs. 70000 was cleared by a cheque
issued against the delivery of the 'printer' units , put into immediate
In 1995-96 , on Oct. 1 , one of the three computer units with one printer
was transferred home for the children's use , at no profit , no loss
basis . The computer had been bought on 1.4.1991 paying Rs.50000.
Work out the computer Equipment A/c reflecting all its given data for the
financial years 1993-94 , 94-95 and 95-96.