Principles and Practice of Accounting - November 2018

1. (a) State with reasons, whether the following statements are true or false : 6x2 (i) Overhauling expenses for the engine of motor car to get better =12 fuel efficiency is revenue expenditure. (ii) Depreciation is a non-cash expense and does not result in any cash outflow. (iii) Fees received for Life Membership is a revenue receipt as it is of recurring nature. {iv) If Closing Stock appears in the Trial Balance : The closing inventory is then not entered…

2. (a) The following ae were lodated:in:the books of a concern after its 10 books were closed and a Slgpnse Avcoutit' was opened in order to get the Trial Balance agreed : Gi) Sales Day Book was overcast by & 1,000. (ii) A sale of % 5,000 to X was wrongly debited to the Account of Y. (iii) General expenses 180 was posted in the General Ledger as = 810. (iv) A Bill Receivable for = 1,550 was passed through…

Dinesh, Ramesh and Naresh are partners in a firm sharing profits and 15 losses in the ratio of 3 : 2 : 1. Their Balance Sheet as on 31% March, 2018 is as below : Liabilities ® Assets @®) Trade Payables | 22,500 Land & Buildings | 37,000 Outstanding Liabilities 2,200 | Furniture & Fixtures | 7,200 General Reserve 7,800 | Closing stock 12,600 Capital Accounts : Trade Receivables 10,700 | Dinesh 15,000 Cash in hand 2,800 Ramesh 15,000 Cash…

(a) Raj of Gwalior consigned 15,000 kgs of Ghee at © 30 per kg to his 10 agent Siraj at Delhi. He spent % 5 per kg as freight and insurance for sending the Ghee at Delhi, On the way 100 kgs. of Ghee was lost due to the leakage (which is to be treated as normal loss) and 400 kgs. of Ghee was destroyed in transit. % 9,000 was paid to consignor directly by the Insurance company as Insurance…

5. (a) You are provided with the followings : 10 Balance Sheet as on 31% March, 2017 Liabilities ®@ Assets ®@ Capital Fund 1,06,200 | Building 1,50,000 Subscription received Outstanding Subscription 3,800 in Advance 6,000 | Outstanding Locker Rent 2,400 Outstanding Expenses | 14,000 | Cash in Hand 20,000 Loan 40,000 Sundry Creditors 10,000 Total 1,76,200 otal 1,76,200 The Receipts and Payment account for the year ended on 31% March, 2018 Receipts ®) Payments (®) To Balance. b/d By Expenses…

6. (a) Give necessary journal entries for the forfeiture and re-issue of shares : 10 (i) X Ltd. forfeited 300 shares of 7 10 each fully called up, held by Ramesh for non-payment of allotment money of & 3 per share and final call of % 4 per share. He paid the application money of = 3 per share. These shares were re-issued to Suresh for % 8 per share. (ii) X Ltd. forfeited 200 shares of % 10 each…