ICSE Set Qa1 99 Year Icse Account Qa1 99.php Exam Paper ICSE Board Exam Paper for students online

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Accounts - 1999 (I.C.S.E)
You on answers 1 to 2

SECTION - A

Ans. 1(a)
(i) True
(ii) False
(iii)True
(iv) False
(v) False

Ans. 1(b)

Column 1	Column 2
i)Original cost method related to	Landed cost of asset less scrap value if any, distributed over a given life-span.
ii)Building A/c .debited for structural repairs	associates with Capital Expenditure.
iii)Professionals work for	the overall compensation paid
iv)Sole Trader works for	profit as the motive
v) To set off 'Mr. O Customer A/c .' against 'Mr. O Creditors A/c'	use the Journal Proper.
Ans.(c)(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 relevant partner Mr. B , the interest will be Rs. 1500 . (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 legacy received is Rs. 4000000 (iii)If the Net Profit ratio also referred to as the profit to sales ratio is equal to 25% and if Net Turnover is quoted as Rs. 400000 , the Net Profit is Rs. 100000 .

Ans. 2

Trading and Profit and loss A/c

Particulars

Amount

Particulars

Amount

To opening stock

14500

By sales 440000
less returns 8000

432000

To purchases 235000
less:returns 7000

228000

By closing stock

16000

To wages & manufacturing exp.

55000

To Carriage inward

12000

To gross profit

138500

448000

To carriage outward

6000

By gross profit

138500

To Depreciation on fixed asset

6000

By interest on Debentures 3000
+ accrued interest 1000

4000

To insurance 3800
less:-prepaid 900

2900

By rent received 10000
- pre received 2000

8000

To Bad Debt 1500
+ further 500

2000

To interest on loan 4500
+ outstanding 2250

6750

To indirect expenses

77000

To Rent paid

8000

To net profit

41850

150500

Balance Sheet as on 31.3.1999

Liabilities

Amount

Assets

Amount

Pre received rent

2000

Fixed asset 120000
less:- Depreciation 6000

114000

Creditors

9000

Investment in debenture

40000

Reserves

15000

Insurance prepaid

900

Loan 60000

+outstanding interest

2250

62250

Debtors 12000
less: bad debts 500

11500

Capital	170000
less:Drawing	9000
less:-further drawing	2500
Add: Nnet Profits	41850

200350

Accrued interest

1000

Current A/c with Bank

33000

Cash

7200

Goodwill

65000

Closing stock

16000

288600

Ans. 3

Computer Equipment A/c

Particulars

Amount

Particulars

Amount

To bal. b/d

177500

By Depreciation (10000+5000+7500)

22500

By Bal. c/d (bal. . fig )

155000

177500

Depreciation Account

Date

Particular

Amount

Date

Particular

Amount

1.Jan1994

To bal. b/d

155000

31. Dec

By depreciation
(old equipment ) (newequipment)(90000X6/12X10/100)

22500
4500

1Mar

To Bank

20000

31 Dec

By bal. c/d (bal. fig)

218000

30 June

To Bank

70000

245000

1Jan 1995

To bal. b/d

218000

1Oct '95

By Drawing ( of computer)

27500

1Oct.

By Drawings

26250

31 Dec

By Depreciation (10000+7500+6000)

23500

31Dec

Bybalance c/d (bal. fig )

140750

218000

Working Notes :- Calculation of selling price of Computer:-
Purchase in March 1991	50000
Less: Depreciation for 9 month	3750
	46250
Depreciation for the year (92-93)	5000
	41250
Depreciation for the year (93-94 )	5000
	36250
Depreciation for the year (94-95 )	5000
	31250
Depreciation for 9 month 95-96	3750
	27500
Calculation of drawing price of printer
Purchase price	30000
Depreciation for 6 month (94-95 )	1500
	28500
Depreciation for 9 month (95-96 )	2250
	26250

Ans.4

Profit and LossAppropriation A/c

Particulars

Amt.

Particulars

Amt.

To Interest on capital
Small                                  25000
Big                                     30000
Boost                                 45000

100000

By Net profit transferred from Profit And Loss A/c

500000

To Allowance
Small                                  72000
Big                                     48000
Boost                                 36000

156000

To Boost's Capital A/c (interest on loan)

30000

To Reserve

5000

To Profit transfer to capital account in 1:1:2

164000

500000

Calculation of interest on capital =
Small---10% on Rs. 250000
Big----10% on Rs (400000 - 100000 )=Rs. 300000
Boost--10% on Rs (600000 - 150000) = Rs. 450000

Partner's Capital accounts

Particular	Small	Big	Boost	Particular	Small	Big	Boost
To Current A/c		100000	150000	By bal. b/d	200000	400000	600000
To Cash (interest on loan ) (20% on 150000 )			30000	By Current A/c	50000
To Drawings	25000	25000	25000	By Profit and Loss App. A/c(interest on Capital)	25000	30000	45000
To bal. c/d	363000	394000	588000	By profit & Loss app. (monthly Allowance )	72000	48000	36000
				By Profit & Loss app. (interest on loan )			30000
				By profit & loss App. A/c (Profit transferred )	41000	41000	82000
	388000	519000	793000		388000	519000	793000

Ans. 5

Income And Expenditure A/c

Particulars

Amount

Particular

Amount

To Rent 15000
+ unpaid 1500

16500

By Membership fees 66000
+ Accrued 5000

71000

To Charities

12000

By Locker rents

7800

To Honorarium 9000
+ outstanding 1000

10000

By Club activity earnings      21400
Less: Exp. paid                    12800
                                           8600
Less:Bills payable                 2000
                                          6600
Add: Earnings due                 4400

11000

To Subscriptions

4600

By unclaimed property sold

1700

To Surplus of income over expenditure transferred to capital fund

35400

By donations

10000

101500

Journal Entries :-

Date	Particulars	Amount (Dr)	Amount (Cr.)
i)	Salary A/c Dr. To Salary Payable A/c	10000	1000
ii0	Rent prepaid A/c Dr. To Rent A/c	2000	2000
iii)	Legacy A/c Dr. To legacy Fund A/c	15000	15000
iv)	Interest accrued A/c Dr. To Interest A/c	4000	4000

Ans.6(i) Loss suffered , resulting from the use of the fixed assets is equal to its annual depreciation which is Rs. 5000

(ii) Total of each side of the profit and loss A/c is = Gross profit + 5% of Gross profit
=50000 + 5% of 50000 = Rs. 5200

(iii) Net profit = 10% is Net profit Ratio
Net Profit Ratio = (Net Profit X 100) / (Net sales )
10% = (Net Profit X 100) / (150000 ) =15000

(iv) Total of the administrative and selling exp.
=Total of one side of P&L - (Net Profit + Further exp. )=
= 52500 - (15000+ 7500 ) = Rs.30000

(v) Value of material :-
Ratio = 4:1
X= 20000 = 4:1
X x 1 = 4 x 20000
X = Rs.80000
= Rs.80000

(vi) Difference between the balance of the trading A/c and the profit and loss A/c
= Gross Profit - Net Profit
=50000 - 15000 = Rs.35000

(vii) Value of each of the selling exp. and the administrative exp. is
= Total of both = 30000
and their ratio = 1:4
Selling exp. = (1 X 70000) / 5 = Rs.6000
and Administrative exp. =( 4 X 70000) / 5 =Rs.24000

(viii)Margin of sales :-
It means profit on sales which is given in the question is in percentage = 10% and in Rupees it is Rs.15000

(ix) Value of Net purchases available to sell ,
If = when opening stock = Rs.8000
and Closing stock =Rs.7000
So Net purchases = Opening stock + Material consumed - Closing stock
= 8000 + 80000 - 7000 = Rs. 81000

(x) Gross profit Ratio =
= ( Gross Profit X100 ) / sales = (50000 X100 )/ 150000 = 33.33 %