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 |
Credit |
|
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). (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. |
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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
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(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.
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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