ISC Board Guess Paper

ISC Board Guess Paper

Accountancy

Q1.When is a partner liable for debts incurred by the firm after his retirement ?

Q2.What are miscellaneous expenses ?

Q3.State any two purposes for which the securities premium can be utilized.

Q4.What is the LIFO method of valuing inventories ?

Q5.Give two differences between fixed and fluctuating capital accounts.

Q6.What is gaining ratio ?

Q7.When drafting a company balance sheet under Schedule VI Part I, under which heading and sub-heading will calls in arrear and calls in advance appear ?

Q8.State the two effects of the provision of Accounting Standard-10 as issued by the Institute of Chartered Accountants of India.

Q9.What is a material transfer note ?

Q10.What is the accounting treatment in the books of the consignor relating to expenses incurred on returning the goods by the consignee to the consignor assuming that such expenses are :

(a) Borne by the consignor; (b) Borne by the consignee.

Q11.Prakash, Kiran and Rishab are partners in a firm sharing profit and losses in the ratio of 3 2:1. Their Balance Sheet as on 31st March 2006 stood as follows :

Balance Sheet

as on 31st December 2006

Liabilities / Amount Rs. / Assets / Amount Rs.
Creditors / 25,000 / Cash at Bank / 2,000
Bills Payable / 10,000 / Debtors - 20,000
General Reserve / 27,000 / Less Provision
Workmen’s Compensation Fund / 3,000 / for Bad debts -2,000 / 18,000
Stock / 25,200
Mrs. Prakash’s Loan / 5,000 / Investments / 20,000
Capital’s / Bills Receivable / 8,000
Prakash - 60,000 / Machinery / 60,000
Kiran -40,000 / 1,00,000 / Goodwill / 6,000
Profit and Loss A/c / 19,800
Rishab’s Capital A/c / 11,000
1,70,000 / 1,70,000

On the above date the firm was dissolved and the following transactions took place :

(i)The assets were sold off for the following amounts : Stock Rs. 20,200; Debtors Rs. 15,000; Machinery Rs. 40,000; and Investments Rs. 18,000.

(ii)Kiran took over the bills receivable at Rs. 7,000 and the bills payable at book value.

(iii)There was an unrecorded asset of Rs. 4,000 which was sold for Rs. 1,200.

(iv)Prakash agreed to pay off his wife’s loan.

(v)A contingent liability for a bill discounted at Rs. 8,000 was settled by Prakash.

(vi)Creditors were settled at a discount of 10% and goodwill realized Rs. 5,000.

(vii)Realization expenses were Rs.2,100 which were ntet by Kiran.

You are required to :

(a) Pass the necessary Journal Entries.

(b) Prepare the Realisation Account on the dissolution of the firm.

Q12.Arvind, Benu and Cathy jointly undertook the construction of a factory building for Roxy Ltd. at a price of Rs. 15,00,000. The consideration was to be paid as follows :

(i) Rs. 12,00,000 in cash

(ii) Rs. 3,00,000 in debentures of Roxy Ltd.

They contributed towards the venture as follows :

Arvind Rs. 6,00,000, Benu Rs. 3,00,000 and Cathy Rs. 2,00,000. These amounts were deposited in a Joint Bank Account. Arvind got the plan prepared and paid Rs. 17,000 as architects fees. Benu brought a concrete mixer for Rs. 75,000 and Cathy brought a truck valued at Rs. 50,000.

They purchased a plant for Rs. 2,40,000 and materials worth Rs. 2,00,000. Rs. 3,25,000 was incurred for wages. On completion of the venture Arvind took over materials worth Rs. 72,000, Benu took over the concrete mixer for Rs. 22,000 and Cathy took back the truck at Rs. 18,000. The plant was disposed off at Rs. 85,000.

The contract price was duly received on completion of the project.

The debentures were taken over by Arvind at Rs. 2,70,000.

They had agreed to share profits and losses in the ratio of their capital contributions.

Prepare :

(a) The Joint Venture Account.

(b) The Joint Bank Account.

(d) The Debentures Account.