mohit educomp pvt. ltd. main centre- 59 jatindra ... foundatio...iv) sold government bonds costing...
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MOHIT EDUCOMP PVT. LTD.
Main Centre- 59 Jatindra Mohan Avenue
9830741471/8017567120/03325551197
Website- www.mohitedu.com www.facebook.com/education.mohit
FOUNDATION ACCOUNTS 1st TEST PAPER
Q.1) PASS JOURNAL ENTRIES: – I).Started business with cash Rs 36,000; II) Paid rent in advance Rs 800; III) Purchased
goods for cash Rs 10,000 and on credit Rs 4,000; IV) Sold goods for cash Rs 8,000; V) Rent paid Rs 2000 and rent outstanding
Rs 400; VI) Bought cycle for personal use Rs 16,000; VII) Purchased equipments for cash Rs 10,000; VIII) Paid to creditors Rs
1,200; IX) Some business expenses paid Rs 1,800; X) Depreciation on equipment Rs 2,000.
Q.2) PASS JOURNAL ENTRIES: – I) Brought Rs 20,00,000 in cash to start business.; II) Purchased Government Bonds for
cash Rs 1,06,000. III) Purchased an office building for Rs 9,00,000 giving Rs 6,00,000 in cash and the balance through a loan.
IV) Sold Government Bonds costing `Rs 6,000 for Rs 6,500. V) Purchased an old car for Rs 1,68,000. VI) Received cash for rent
Rs 21,600. VII) Paid cash Rs 3,000 for loan and Rs 1,800 for interest. VIII) Paid cash for office building expenses Rs 1,800. IX)
Received cash for Interest on Government Bonds Rs 1,200.
Q.3) Journalise the following transactions:
2016 Mar. 2 Commenced business with cash 2,50,000
4 Purchased furniture for cash 20,000
4 Cash purchases 1,45,000
5 Deposited with bank 30,000
6 Purchase from Patil 40,000
Sold to Natarajan for cash 14,300
7 Stationery purchased 1,050
7 Purchase from Salil 26,000
7 Sold to Mukherjee 8,080
9 Rent for two years paid in advance 24,000
9 Drawings by the proprietor for household expenses 4,000
Goods taken out by the proprietor for domestic use 500
9 Cash withdrawn from Bank 25,000
10 Sold to Mathur on credit 9,850
11 Purchases made, payment through cheque 2,900
14 Cash received from Patil on account 10,000
14 Cash paid to Salil after deduction of discount Rs 1300 24,700
17 Cash received from Mathur in full settlement of his account 9,750
18 Mukherjee becomes insolvent. A dividend of 50 paise in a rupee is received 4,040
18 Purchase of a Scooter for cash 30,000
20 Sold goods to Aggarwal 8,640
Sales to Nayak 3,780
24 Cartage paid in cash 150
24 Repairs to Scooter, payment not yet made 170
26 Payment of cash for petrol 550
26 Purchases of goods for cash 12,000
26 Purchases of Office Equipment for cash 12,100
27 Repairs bill paid in cash 170
28 Aggarwal returns goods 400
31 Depreciation on furniture 100
Depreciation on Scooter 200
”31 Salary to clerk outstanding 1,800
31 Adjustment for the month’s outstanding rent 1,000
31 Bank charges for the month 50
31 Interest on capital for the month 1,250
Salary to be credited to proprietor 2,000
31 Salil agrees to take some defective goods purchased from him and immediately refunds the money 700
Q.4) On 1st May, 2016 the columnar cash book of Mitra showed that he had Rs 2,000 in his cash box and that there was a
bank overdraft of ` 8,000. During the day the following transactions took place:
Cash withdrawn from bank for office use 10,000
Paid salaries in cash 3,000
Cash paid to Harish & Co. 6,500
Drawings in cash made by Mitra for household expenses 1,000
Received from G. Guha in settlement of an account of Rs 10,000
Rs 1,800 in cash and a cheque of Rs 8,000. The cheque was immediately deposited in bank Cash sales 6,500
Bank returns a cheque of Rs 9,900 received from Kulu & Sons in settlement of an account of Rs 10,000
Paid rent by cheque 1,500
Cash deposited with bank 6,000
Write up the Cash Book for the day and balance it.
Q.5) Prepare an analytical Petty Cash Book from the following information:
Petty cash is maintained on the basis of imprest system. On 21st January, 2017 the petty cashier had with him Rs 328. He
received Rs 672 to make up the expenses of the previous week. During the week the following expenses were met by the
petty cashier:
RS
2017 ` March 21 Bus fare 6
” 21 Revenue stamps 85
21 Tea for customers 22
” 22 Cartage 43
” 24 Payment to Coolie 10
24 Telegram charges 76
24 Refreshment for customer 52
” 25 Repairs to furniture 100
25 Taxi charges 87
25 Post cards 90
25 Cloth for dusters 74
25 Tea for customers 20
CA CS MOHIT AGARWAL
9830741471
MOHIT EDUCOMP PVT. LTD. DATE 03.08.19
Main Centre- 59 Jatindra Mohan Avenue
9830741471/8017567120/03325551197
Website- www.mohitedu.com
www.facebook.com/education.mohit
STUDENTS NAME:-_____________________
FOUNDATION ACCOUNTS TEST PAPER
FULL MARKS 30 MARKS TIME ALLOWED 1.30 Hrs
Q.1 A owes B `890on 1st January, 2005. From January to March, the following further
transactions took place between A and B:
January 16 A buys goods `910
February 2
A receives Cash loan
`750
March 5
A buys goods
`810
A pays the whole amount on 31st March, 2005 together with interest at 5% p.a. Calculate
the interest by the average due date method. 4 MARKS
Q.2 The cost of the machinery in use with a firm on 1st April, 1997 was Rs 6,25,000 against which
the depreciation provision stood at Rs 2,62,500 on that date; the firm provided depreciation
at 10% of the diminishing value. On 3lst December, 1997, two machines costing Rs 15,000
and Rs 12,000 respectively, both purchased on 1st October, 1994, had to be discarded
because of damage and had to be replaced by two new machines costing Rs 50,000 and Rs
37,500 respectively. One of the discarded machines was sold for Rs 20,000, against the other
it was expected that Rs 7,500 would be realizable. Show the relevant accounts in the ledger
of the firm for the year ended 31st March, 1998. 6 MARKS
Q.3 A firm purchased an old machinery for Rs 37,000. On 1st
January, 2015 and spent Rs 3000 on
its overhauling. On 1st
July 2016, another machine was purchased for Rs 10000. On 1st
July 2017, the
machinery which was purchased on 1st
January 2015, was sold for Rs 28000 and the same day a new
machinery costing Rs 25000 was purchased. On 1st
July 2018, the machine which was purchased on
1st
July, 2016 was sold for Rs 2000.
Depreciation is charged @ 10% per annum on straight line method. The firm changed the
method and adopted diminishing balance method with effect from 1st
January, 2016 and the rate
was increased to 15% per annum. The books are closed on 31st
December every year.
Prepare Machinery account for four years from 1ST
January, 2015. 6 MARKS
Q.4 Two Traders Yogesh and Yusuf buy goods from one another, each allowing the other, one
month’s credit. At the end of 3 months the accounts rendered are as follows:
GOODS SOLD BY YOGESH TO YUSUF GOODS SOLD BY YUSUF TO YOGESH
April 18 12000 April 23 10600
May 15 14000 May 24 10000
June 16 16000
Calculate the date upon which the balance should be paid so that no interest is due either to Yogesh
or Yusuf. 4 MARKS
Q.5 Mr. Badhri sends goods to his customers on sale or Return. The following transactions took
place during the month of December 2017.
December 2nd
– Sent goods to customers on sale or return basis at cost plus 25%- Rs 80,000
December 10Th
- Goods returned by customers – Rs 35,000
December 17th – Received letters from customers for approval- Rs 35,000
December 23rd
– Goods with customers awaiting approval- Rs 15,000
Mr. Badhri records sale or return transaction as ordinary sales. You are required to pass the
necessary journal entries in the books of Mr. Badhri assuming that the accounting year
closes on 31st
DEC 2017. 4 MARKS
Q.6 Explain INCORPORATION PROCESS of LLP. 6 MARKS
CA CS MOHIT AGARWAL
9830741471
Name OF student: - ___________ date:-02/09/2018
MOHIT EDUCOMP PVT. LTD. Main Centre- 59 Jatindra Mohan Avenue
9830741471/8017567120/03325551197
Website- www.mohitedu.com
www.facebook.com/education.mohit
TIME ALLOWED 1.5 Hour FULL MARKS 10*5=50 MARKS
Q.1 The Bihar coal co. Ltd. Holds a lease of coal mines for a period of twelve years.
Commencing from 1st
April 2006. According to the lease. The company is to pay Rs 7.50
as royalty per ton with a minimum rent of Rs 1,50,000 per year. Short working can.
However be recovered out of the royalty in excess of the minimum rent of the next two
years only. For the year of a strike the minimum rent is to be reduced to 60%. The output
in tons for the 6 years ending 31ST
March 2012 is as under: 2006-07: 10,000; 2007-08:
12000; 2008-09: 25000; 2009-10: 20000; 2010-11: 50000 and 2011-12: 15000 ( strike)
Write up the necessary ledger Accounts in the books of Bihar Coal Co. Ltd.
Q.2 On 30th
September , 2017, the bank account of X according to the bank column of the
cash book, was over drawn to the extent of Rs 4062. On the same date the bank
statement showed a debit balance of Rs 20,758 in favour of X. An examination of the
Cash book and bank book statement reveals the following:
i) A cheque for Rs 13,14,00 deposited on 29th
SEPTEMBER, 2017 WAS CREDITED BY THE
BANK ONLY ON 3rd
October, 2017.
ii) A payment by cheque for Rs 16,000 has been entered twice in the cash book.
iii) On 29TH
September 2017 the bank credited an amount of Rs 1,17,400 received from a
customer of X, but the advise was not received by X until 1st
October 2017.
iv) Bank charges amounting to Rs 580 had not been entered in the cash book.
v) On 6th
September 2017 the bank credited Rs 20,000 to X in error.
vi) A bill of exchange for Rs 1,40,000 was discounted by X with his bank. This bill was
dishonored on 28th
September 2017 but no entry had been made in the books of X.
vii) Cheques issued upto 30th
September 2017 but not presented for payment upto that date
totaled Rs 13,26,000. You are required: a) to show the appropriate rectification required
in the cash book of X, to arrive at all correct balance on 30th
september 2017 and b) to
prepare a bank reconciliation statement as on that date.
Q.3 Karan and Arjun entered into a Joint Venture agreeing to share profits and losses in the
ratio of 2:1. On 1-5-92 Karan purchased goods costing Rs 7200 and sent half of the goods
to Arjun. On 15-6-92 he purchased another lot of goods costing Rs 2,400 and spent Rs
240 as expenses.
On 20-6-92 Arjun purchased goods costing Rs 4500 and on 25-6-92 sent to karan part of
these goods costing Rs 1800 and paid Rs 110 asa carriage. On 2-792 karan made a
remittance of Rs 2000 to arjun sales were made by both the ventures at a uniform price
of 33.33% above cost excluding expenses. Each venture was successful in collecting cash
proceeds on sales effected by him expect
a sum of Rs 400 owing to karan and this was ultimately agreed to be written off as a loss
of the venture.
On 25-8-92 unsold goods costing Rs 1500 were in possession of karan. Of these goods
costing Rs 600 were taken over by him and the balance was sold for Rs 1000.
Arjun disposed off all the goods in his possession expect some damaged goods costing Rs
300 which it was agreed to be written off as unsaleable.
On 31-8-92 the venture was closed and the accounts were settled by bank draft.
You are required to prepare:- a) The Joint venture Account as it would appear in the
books of karan recording his transactions in regard thereto.
b) A memorandum Account for the joint venture, showing the net profit.
Q.4 On 31st
December 2016 goods sold at a sale price of Rs 3000 were lying with customer,
ritu to whome these goods were sold on sale or return basis’ were recorded as actual
sales. Since no concent has been received from ritu, you are required to pass adjustment
entries presuming goods were sent on approval at a profit of cost plus 20%. Present
market price is 10% less than the cost price.
Q.5 Journalize the following in the books of DON:-
a) Bob informs Don that Ray’s acceptance of Rs 3000 has been dishonored and noting
charges are Rs 40. Bob accepts Rs 1000 cash and the balance as bill at three months at
interest of 10% Don accepts from Ray his acceptance at two months plus interest @ 12%
P.A.
b) James owes Don Rs 3200 he sends Don’s own acceptance in favour of Ralph for Rs
3160; in full settlement.
c) Don meets his acceptance in favour of singh for Rs 4500 by endorsing johns
acceptance for Rs 4450 in full settlement.
d) Ray’s acceptance in favour of Don retired one month before due date, interest is
taken at the rate of 6% p.a.
CA CS MOHIT AGARWAL
9830741471
MOHIT EDUCOMP PVT. LTD. Main Centre- 59 Jatindra Mohan Avenue
9830741471/8017567120/03325551197
Website- www.mohitedu.com
www.facebook.com/education.mohit
ca & cma FOUNDATION LAW & ACCOUNTS TEST PAPER TOTAL MARKS :- (30 MARKS LAW & 60 MARKS ACCOUNTS) 90 MARKS TIME ALLOWED 2 HRS
SALE of GOODS ACT 1) The doctrine of ‘Caveat Emptor’ does not apply when : (a) The goods are bought by sample (b) The goods are bought
by description from, a seller who deals in goods of that description (c) The goods are purchased under its brand name
(d) All of the above.
2) The actual sale of future goods is: (a) Never possible (b) Possible (c) Illegal (d) Only a myth.
3) Finder of lost goods is in a position of: (a) Bailor (b) Owner (c) Pawner (d) Bailee.
4) The goods which are either owned or possessed by the seller at the time of the contract are known as: (a) Generic
goods (b) Future goods (c) Existing goods (d) Contingent goods.
5) A stipulation which is collateral to the main purpose of the contract and provides the buyer only right to claim, the
damages is known as: (a) Condition (b) Guarantee (c) Warrantee (d) Agreement to sell.
6) In case of an agreement to sell,.ownership’to goods remains with: (a) The buyer (b) The seller (c) Both the buyer and
the seller (d) None of the above.
7) In case of sale of goods; the title of goods remains with: (a) Seller (b) Buyer (c) Hirer (d) None of the above.
8) A contract of sale of goods under Section 4 of the Sale of Goods Act, 1930 comprises of: (a) Executory contract of sale
(b) Executed contract of sale (c) Both executory and executed contracts of sale (d) None of the above.
9) An unpaid seller of goods has a right: (a) Against the buyer only (b) Against bpth the buyer and the goods (c) Against
the goods only (D) None of the above
10) Which of the following gives a right to claim damages for its breach? (a) Conditions (b) Warranties (c) Both (a) and (b)
above (d) None of the above.
11) As per the Sale of Goods Act, 1930, goods include, I. Existing goods II. Future goods III. Contingent goods IV.
Actionable claims Correct option is— (a) I, II and III (b) II, lll and IV (c) I, II and IV (d) I, II, III and IV.
12) Which of the following maxim means ‘No one pan pass a better title than, he himself has? (a) Caveat emptor (b)
Nemo dat quod non habet (c) Res integra (d) Sine die.
13) The doctrine of “Caveat Emptor” implies- (a) Let the buyer beware (b) Let the seller beware (c) Let the buyer be brave
(d) Let the seller be brave
14) When does a seller becomes an implied seller? (a) When half of the price, has not been paid (b) When the full amount
has not been paid (c) When 25% amount has not been paid (d) When 75% amount has hot been paid.
15) Which of the following is conducted under Sales of Goods Act? (a) Goods (b) Contract (c) Sales (d) Partnership
16) Which is not an implied condition? (a) Condition as to title (b) Condition as to wholesomeness (c) Condition as to
Encumbrances (d) Condition as to sale by sample
17) Seller means a person who: (a) Sells or agrees to sell goods (b) Has sold goods (c) Sells goods (d) Agrees to sell goods.
18) The unpaid seller may exercise his right of stoppage of goods in transit: (a) By taking actual possession of the goods
(b) By giving notice of his claim to the carrier (c) By giving notice of his claim to the bailee in. whose possession the
goods are (d) All applicable
19) Right of stoppage can be exercise when: (a) When seller has not been paid the amount of goods and service (b)
When the amount has been paid by the mean of exchange but has been dishonored (c) Both of the above ‘ (d) None
of the above.
20) Right of lien is exercised for: (a) Retaining the possession (b) Regaining the possession (c) Both (a) and (b) (d)
Stoppage in transit
21) A seller transfers possession of the goods already being sold in good faith: (a) Valid (b) Voidable. (c) Void (d) Invalid
22) Which of the following is not a mercantile agent? (a) Factor (b) Salesman (c) Auctioneer (d) Brokers.
23) Under what circumstances the unpaid seller can exercise right of resale: (a) When the goods are very expensive (b)
When the buyer has not paid in terms of the contract does not specify, about resale (c) When he gives notice to the
buyer of his intention to resale and the buyer does not within reasonable time pay the price (d) When the buyer does
not pay on demand.
24) In a hire purchase contract the hirer: (a) Is not given the possession of goods (b) Must buy the goods (c) Has an option
to buy the goods (d) Must return the goods.
25) Actual sale of future good is: (a) Illegal (b) A myth (c) Impossible (c) Possible through an agreement to sell.
26) The Sale of Goods Act, 1930 deals with: (a) Pledge (b) Guarantee (c) Mortgage (d) Sale
27) In an agreement to sell, the seller in case of damages to good...................... (a) Can sue the buyer for injunction (b)
Has no recourse (c) Can sue for price (d) Can sue for damages.
28) Which of the following is not a mercantile agent? (a) Brokers (b) Salesman (c) Auctioneers (d) Factor
29) The objective of the Sale of Goods Act, 1930 ie to define and amend the law relating to — (a) Sale of Immovable
Properties (b) Sale of Goods (c) Agreements to Sell (d) All of the above.
30) The Sale of Goods Act, 1930 extends to the whole of India, except the state of — (a) Maharashtra (b) Jammu and
Kashmir (c) Tamilnadu (d) Uttar Pradesh
ACCOUNTS QUESTION Q.1) D of Delhi appointed A of Agra as its selling agent on the following terms:
Goods to be sold at invoice price or over.
A to be entitled to a commission of 7.5% on the invoice price and 20% of any surplus price realized over invoice
price
The principals to draw on the agent a 30 days bill for 80% of the invoice price.
On 1st February, 2016, 1,000 cycles were consigned to A, each cycle costing `640 including freight and invoiced
at `800.
Before 31st March, 2016, (when the principal’s books are closed) A met his acceptance on the due date; sold
ou 820 cycles at an average price of ` 930 per cycle, the sale expenses being `12,500; and remitted the amount
due by means of Bank draft.
Twenty of the unsold cycles were shop-spoiled and were to be valued at a depreciation of 50% of cost.
Show by means of ledger accounts how these transactions would be recorded in the books of A and find out
the value of closing inventory with A to be recorded in the books of D at cost. 10 marks
Q.2) K and A of Nagpur entered into a joint venture to trade in silk goods in the ratio 2:1. On June 1, 2016, K bought goods
worth `7,200 and handed over half of the goods to A. On July 1, 2016, K bought another lot of goods costing `2,400 and
paid `180 as expenses. On September 1, A purchased goods for `4,500 and on the same day he sent to K a part of these
goods costing `1,800 and paid `240 towards expenses. On the same day K remitted `1,800 to A. The goods were
invariably sold by the venturers at a uniform price of 33.33% above cost price excluding expenses. Each of the venturers
collected cash proceeds on sales excepting an amount of `250 owing to K by a customer and this was written ou as a loss
relating to the venture. In addition, goods costing `600 in possession of A were destroyed by fire and an amount of `500
was realized by him as compensation from the Insurance Company. On December 20, unsold goods costing `1,500 (at
cost) were lying with K. Of these, goods costing `600 were taken by K for personal use and the balance was purchased by
him at an agreed value of `1,000. A disposed of all the goods with him on December 31, excepting some damaged goods
costing `300 which were written ou as unsaleable. You are required to prepare a Memorandum Joint Venture Account to
find the amount of profit or loss. 10 marks
Q.3) A, B and C enter into a joint venture for the construction of a multi-storied building for a joint stock company for a
contract price of `1,00,000.
Incidental expenses might have to be paid by the venturers, but as per agreement each of them is entitled to be
reimbursed to the extent of actual such expenditure or `5,000, whichever is less. In this way A spends `4,000, B-`5,000
and C-`6,000. The venturers are to share profits and losses equally but C, being a technical person, is entitled to a special
commission of 10% of the profit of the venture after charging such commission.
They opened a Joint Bank Account to which A contributes `20,000, B -`15,000 and C-`15,000. B also gives his own plant to
the venture for which he charges `8,000. Materials are purchased for `20,000 and Wages amount to `30,000.
At the end of the venture the company paid the agreed contract price (keeping `10,000 as retention money) to the
extent of `30,000 in cash and the balance in equity shares of the company of `10 each at an agreed value of `12 per
share. The shares are subsequently sold in market at `13 per share. Unused materials costing `2,000 are taken over by A
at `1,000.The plant is taken back by B at an agreed value of `2,000. C takes up the fight to the retention money at `7,000.
Show necessary ledger accounts in the books of the venture. 10 marks
Q.4) Caly Company sends out its gas containers to dealers on Sale or Return basis. All such transactions are, however,
treated as actual sales and are passed through the Day Book. Just before the end of the financial year, 100 gas
containers, which cost them ` 900 each have been sent to the dealer on ‘sale or return basis’ and have been debited to
his account at `1,200 each. Out of this only 20 gas containers are sold at `1,500 each.
You are required to pass necessary adjustment entries for the purpose of Profit and Loss Account and Balance Sheet.
10 marks
Q.5) For the mutual accommodation of ‘X’ and ‘Y’ on 1st April, 2016, ‘X’ drew a four months’ bill on ‘Y’ for `4,000. ‘Y’ returned the bill after acceptance of the same date. ‘X’ discounts the bill from his bankers @ 6% per annum and remits
50% of the proceeds to ‘Y’. On due date ‘X’ is unable to send the amount due and therefore ‘Y’ draws a bill for `7,000,
which is duly accepted by ‘X’. ‘Y’ discounts the bill for `6,600 and sends `1,300 to ‘X’. Before the bill is due for payment ‘X’ becomes insolvent. Later 25 paise in a rupee received from his estate.
Record Journal entries in the books of ‘X’. 10 marks
6) According to the cash-book of Gopi, there was a balance of `44,50,000 in his bank on 30th June, 2017. On investigation
you find that :
(i) Cheques amounting to `6,00,000 issued to creditors have not been presented for payment till the date.
(ii) Cheques paid into bank amounting to `11,05,000 out of which cheques amounting to `5,50,000 only collected by the
bank up to 30th June 2017.
(iii) A dividend of `40,000 and rent amounting to `6,00,000 received by the bank and entered in the pass-book but not
recorded in the cash book.
(iv) Insurance premium (up to 31st December, 2017) paid by the bank `27,000 not entered in the cash book.
(v) The payment side of the cash book had been under casted by `5,000.
(vi) Bank charges `1,500 shown in the pass book had not been entered in the cash book.
(vii) A bill payable of `2,00,000 had been paid by the bank but was not entered in the cash book and bill receivable for
`60,000 had been discounted with the bank at a cost of `1,000 which had also not been recorded in cash book.
Required:
(a) to make the appropriate adjustments in the cash book, and
(b) to prepare a statement 10 marks
CA CS MOHIT AGARWAL
9830741471
MOHIT EDUCOMP PVT. LTD. DATE 03.08.19
Main Centre- 59 Jatindra Mohan Avenue
9830741471/8017567120/03325551197
Website- www.mohitedu.com
www.facebook.com/education.mohit
STUDENTS NAME:-_____________________
FOUNDATION ACCOUNTS TEST PAPER
FULL MARKS 30 MARKS TIME ALLOWED 1.30 Hrs
Q.1 A owes B `890on 1st January, 2005. From January to March, the following further
transactions took place between A and B:
January 16 A buys goods `910
February 2
A receives Cash loan
`750
March 5
A buys goods
`810
A pays the whole amount on 31st March, 2005 together with interest at 5% p.a. Calculate
the interest by the average due date method. 4 MARKS
Q.2 The cost of the machinery in use with a firm on 1st April, 1997 was Rs 6,25,000 against which
the depreciation provision stood at Rs 2,62,500 on that date; the firm provided depreciation
at 10% of the diminishing value. On 3lst December, 1997, two machines costing Rs 15,000
and Rs 12,000 respectively, both purchased on 1st October, 1994, had to be discarded
because of damage and had to be replaced by two new machines costing Rs 50,000 and Rs
37,500 respectively. One of the discarded machines was sold for Rs 20,000, against the other
it was expected that Rs 7,500 would be realizable. Show the relevant accounts in the ledger
of the firm for the year ended 31st March, 1998. 6 MARKS
Q.3 A firm purchased an old machinery for Rs 37,000. On 1st January, 2015 and spent Rs 3000 on
its overhauling. On 1st July 2016, another machine was purchased for Rs 10000. On 1st July 2017, the
machinery which was purchased on 1st January 2015, was sold for Rs 28000 and the same day a new
machinery costing Rs 25000 was purchased. On 1st July 2018, the machine which was purchased on
1st July, 2016 was sold for Rs 2000.
Depreciation is charged @ 10% per annum on straight line method. The firm changed the
method and adopted diminishing balance method with effect from 1st January, 2016 and the rate
was increased to 15% per annum. The books are closed on 31st December every year.
Prepare Machinery account for four years from 1ST January, 2015. 6 MARKS
Q.4 Two Traders Yogesh and Yusuf buy goods from one another, each allowing the other, one
month’s credit. At the end of 3 months the accounts rendered are as follows:
GOODS SOLD BY YOGESH TO YUSUF GOODS SOLD BY YUSUF TO YOGESH
April 18 12000 April 23 10600
May 15 14000 May 24 10000
June 16 16000
Calculate the date upon which the balance should be paid so that no interest is due either to Yogesh
or Yusuf. 4 MARKS
Q.5 Mr. Badhri sends goods to his customers on sale or Return. The following transactions took
place during the month of December 2017.
December 2nd – Sent goods to customers on sale or return basis at cost plus 25%- Rs 80,000
December 10Th- Goods returned by customers – Rs 35,000
December 17th – Received letters from customers for approval- Rs 35,000
December 23rd – Goods with customers awaiting approval- Rs 15,000
Mr. Badhri records sale or return transaction as ordinary sales. You are required to pass the
necessary journal entries in the books of Mr. Badhri assuming that the accounting year
closes on 31st DEC 2017. 4 MARKS
Q.6 Explain INCORPORATION PROCESS of LLP. 6 MARKS
CA CS MOHIT AGARWAL
9830741471
MOHIT EDUCOMP PVT. LTD.
Main Centre- 59 Jatindra Mohan Avenue
9830741471/8017567120/03325551197
Website- www.mohitedu.com
www.facebook.com/education.mohit
CA FOUNDATION ACCOUNTS TEST PAPER
TIME ALLOWED 1.30 MNTS TOTAL 30 MARKS
Q.1 Give journal entries (with narrations) to rectify the following errors located in the books of a Trader after
preparing the Trial Balance
(i) An amount of Rs 4,500 received on account of Interest was credited to Commission account.
(ii) A sale of 2,760 was posted from Sales Book to the Debit of M/S Sobhag Traders at 2,670
(iii) Rs 35,000 paid for purchase of Air conditioner for the personal use of proprietor debited to Machinery a/c.
(iv) Goods returned by customer for Rs 5,000. The same have been taken into stock but no entry passed in
the books of accounts. (5 marks)
Q.2 Bhagwati Ltd. Invited applications for issuing 200000 equity shares of Rs 10 each. The amounts were
payable as follows:
On application Rs 3 per share
On allotment Rs 5 per share
On first and final call Rs 2 per share.
Application were received for 300000 shares and pro rata allotment was made to all the applications.
Money overpaid on application was adjusted towards allotment money. B who was allotted 3000 shares,
failed to pay the first and final call money. His shares were forfeited. Out of the forfeited shares, 2500
shares were re issued as fully paid up @ Rs 6 per shares.
Pass necessary Journal entries to record the above transactions in the books of Bhagwati Ltd. (10 Marks)
Q.3 On 1ST January 2018, Ankit Ltd. Issued 10% debentures of the face value of Rs 20,00,000 at 10% discount.
Debenture interest after deducting tax at source @ 10% was payable on 30th June and 31st December every
year. All the debentures were to be redeemed after the expiry of five year period at 5% premium.
Pass necessary journal entries for the accounting year 2018. ( 5 Marks)
Q.4 The following mistake were located in the books of a concern after its books were closed and a suspense
account was opened in order to get the Trial Balance agreed:-
i) Sales Day books was overcast by Rs 1000.
ii) A sale of Rs 5000 to X was wrongly debited to the account of Y.
iii) General expenses Rs 180 was posted in the General Ledger as Rs 810.
iv) A bill Receivable for Rs 1550 was passed through bills payable Books. The bill was given by P.
v) Legal expenses Rs 1190 paid to Mrs. Neetu was debited to her personal accounts.
vi) Cash received from Ram was debited to Shyam Rs 1500.
vii) While carrying forward the total of one page of the purchases book to the next, the amount of Rs
1235 was written as Rs 1325.
Find out the nature and amount of the suspense account and pass entries ( including narration) for the
rectification of the above errors in the subsequent year’s books. ( 10 Marks)
CA CS MOHIT AGARWAL
9830741471
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