(Paper) Sample PaperAccounts - 1999 (I.C.S.E)

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Sample Paper Accounts - 1999 (I.C.S.E)


-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 the head of this paper is the time allowed for writing the answers.
-All working , including rough work , must be cleared shown ;it should be done immediately before/after the rest of the answers.
-Please also note that parts of the same question must be done continuously so as to facilitate  evaluation.

-Attempt all questions from Section A and any two questions  from Section B.
-The intended marks for questions or parts of questions are given in  brackets [ ].


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 our country.
(ii) Only Trading Units compile Trial Balances to help complete Final Accounts.
(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:

Column 1

Column 2

i) Original Cost Price method related to

Surplus as the goal

ii)Building A/c .debited for structural repairs

use the Journal  Proper.

iii)Professionals work for

the overall compensation paid

iv)Sole Trader works for

associates with Capital Expenditure.

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 relevant partner             , 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             is Rs.            

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 2 Compile final accounts for Mr. Lockshy form the Trial  Balance as on 31-3-1997
Particulars Debit Credit
Fixed Assets (Depreciation rate is 5% p.a. ) 120000  
Two -wheeler 2500  
Reserve   15000
Wages & Manufacturing expenses 55000  
Capital & Drawings 9000 170000
Investment in 10% Debentures 40000  
Loan @ 15% p.a. (on mortgage of fixed Assets)   60000
Insurance & Taxes 3800  
Goods 235000 440000
Bad Debts ( the year's Bad Debts total Rs. 2000 ) 1500  
Cash 7200  
Interest on loan 4500  
Returns and Adjustments 8000 7000
Current Account with the banker 33000  
Carriage (1/3 of the amount = carriage outward ) 18000  
Interest Earned from Debentures   3000
Indirect Exp. incurred 77000  
Debtors & Creditors 12000 9000
Rent (paid for 8 months and received for 15 months ) 8000 10000
Goodwill 65000  
Opening Stock 14500               
  714000 714000  
Adjustments:-
a) Interest on loan is payable for the quarter ending 31.3.1997
b)The two-wheeler was sold at book -value to a friend on 1.4.1996 and the cash used up for domestic needs by Mr.lockshy- account for this left unrecorded.
c) Insurance & Taxes include Rs. 900 paid for the quater ending 31.6.1997
d) Unsold stock at end , Rs. 16000
        
  Section   -- B
Attempt any two questions

Where required , candidates are advised to spread their answers across the two sides of the answer booklet to ensure neatness


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  use.
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.
Q 4  Small , Big and Boost own Expanding Enterprises , with Fixed Capitals of Rs.200000 , Rs. 400000 and Rs 600000 .Their current account balances on 31.3.1995 are Rs. 50000 , Rs. 100000 (Dr) and Rs. 150000 (Dr).
On 1.4.1995 , they adopt the Fluctuating Capital Method of accounting, i.e. , they transfer their current account balances to the capital accounts , on this given date .

The clauses of the Partnership Deed provide for :-
(a) Interest on capital @10 % p.a.  (now on the Fluctuating Capital balances as from 1.4.1995.)

(b)A monthly allowance of Rs. 6000 , Rs 4000 and Rs. 3000 for Big , Boost and Small respectively is to be accounted for

(c) Loan Capital of a partner earns him interest @ 20% p.a. (which interest is compulsorily to be drawn in cash , by the concerned partner each  year, on the last date) .

(d) A 10% Reserve is to be set aside on the year's net profit.

(e) Profit- sharing ratio is 1 : 1 : 2 for Small, Big and boost respectively.

Compile the Profit and loss Appropriation A/c. and the capital A/c. of the Trio for the year April 1995 to March 1996. Net profit determined through the Profit and Loss A/c is Rs. 500000. Boost loan Capital reflects a credit Balance of Rs. 150000 . The monthly Drawings for 1995-1996 of each totalled to Rs. 25000 for the year.
Q 5 a)Compile the Income & Expenditure   A/c . of Progress Club for the year ended on 31.3.1997 , from the given data .
 

    Receipts & Payments A/c for the  year ended on 31.3.1997
Particulars Amount Particulars Amount
To bal.:
Cash 5000
Bank 8000


13000

 By Rent 15000
To Membership Fees 66000 By Charities 12000
To Locker Rents 7800 By Administration 23000
To Club Activity Earnings 21400 By Honorarium (90%) 9000
To Unclaimed Lost Property-sold off 1700 By  Subscriptions 4600
To Donations 10000 By Club Activity outgoings 12800
    By Fixed Deposit 30000
                 By bal.:
Bank
Cash


7500
6000 
  119900   119900
Other information :-
i) As on 31.3.97 Membership Fees accrued is Rs 5000 and Unpaid Rent is Rs 1500.
ii) As on 31.3.97 Activity earnings due are Rs. 4400 and a bill of Rs. 2000 is payable for the outgoings.
iii) Income from unclaimed articles by members = Club Income.

b) Give journal entries , using proper  ruling for:
i) Salary payable Rs. 10000
ii) Rent Rs. 10000 paid for five quarters- adjust the account.
iii) Legacy Rs. 15000 already received earlier in the year , to be capitalised (for an educational institution )
iv) Interest earnings accrued Rs. 4000.
(Narrations need not be written for each entry )

 
Q 6 Mr. Analyst presents the data as under :-
Final Accounts of Mr. Analyst for the year ended on 31.3.1996
Particulars Amount Particulars Amount
To Materials Consumed   By Net sales 150000
To Conversion Costs 20000    
To Gross Profit c/d 50000                
  150000   150000
To Administrative exp.   By Gross Profit b/d 50000
To Selling Exp.   By Non Operating Income (= 5% of the Gross Profit ) 2500
To financial Exp. 500    
To loss by Theft (goods were uninsured ) 2000    
To Depreciation 5000    
To Net Profit (net profit ratio =10% ) ______              
  _______   _______

Balance sheet not reflected as it is not relevant to the questions asked.
Answer the questions asked very clearly , in the given serial order .Serial numbers indicated must be very clearly written , to ensure accurate marking.
What is the :-
i) Loss suffered , resulting from the use of the fixed assets?
ii) Total of each side of the Profit & Loss A/c ?
iii) Net Profit ?
iv) Total of the Administrative & selling Exp. ?
v) Value of Materials consumed , if the ratio of Materials consumed to the Conversion costs is 4:1 ?
vi) Difference between the balance of the trading A/c & Profit and loss A/c
vii) Value each of the Selling Exp. and Administrative Exp. if the ratio is 4:1 ?
viii) Margin on sales ?
ix)Value of net purchases available to sell , if the opening stock = 8000 and the closing stock = Rs 7000 ?
x) Gross Profit Ratio ?
  

 

 

ANSWERS

Accounts - 1999 (I.C.S.E)

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   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   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    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   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

 

 

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   

 

 

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

 

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   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 % 

 

Exam Paper
Accountancy
ICSE