1. (a) How would you prepare an Income & Expenditure A/c from a Receipts & Payments A/c? Distinguish between a Receipts & Payments A/c and an Income & Expenditure A/c.
Or
(b) The following is the Receipts & Payments A/c of the Popular Sports Club for the year, 2006 :
Receipts
|
Rs
|
Payments
|
Rs
|
To Balance b/d (1.1.06)
|
19,500
|
By Salaries
|
14,000
|
To Subscriptions :
2007 1,500
2006 37,000
2005 1,500
|
40,000
|
By Stationary
|
18,000
|
By Rent
|
35,000
| ||
By Telephone charge
|
14,000
| ||
By Sundry Expenses
|
15,600
| ||
To Sports meeting profit
|
35,000
|
By Balance c/d
|
12,900
|
To Dividend on investment
|
15,000
| ||
1,09,500
|
1,09,500
|
The following additional information is available :
(i) There are 5 members each paying annual subscriptions of Rs 1,600 being arrears for 2005 at the beginning of 2006
(ii) Building stood at Rs 2,00,000 Depreciation to be written off @ 10%
(iii) Stock of stationery at 31.12.2005 was Rs 20,000 and at 31.12.2006 Rs 15,000
(iv) Expenses outstanding at 31.12.2005 was Rs 11,600
You are required to prepare an Income & Expenditure A/c for the year ended 31.12.2006 and a Balance Sheet as at that date.
2. (a) Lily & Co. bought one machine on 1.1.2005 on Hire-Purchase basis of payments which were as follows :
Rs
On signing the agreement 5,000
At the end of first year 6,000
At the end of second year 3,500
At the end of third year 2,200
16,700
Or
(b) (i) Explain the features of Instalment-Purchase agreement.
(ii) Ditinguish between Hire-Purchase and Instalment-Purchase systems.
3. (a) Amal, Bimal and Kamal are equal partners of a partnership firm. On 31.12.2006 their Balance Sheet was as follows :
Liabilities
|
Rs
|
Assets
|
Rs
|
Capital :
|
Buildings
|
19,500
| |
Amal
|
16,800
|
Furniture
|
2,400
|
Bimal
|
12,600
|
Stock
|
11,400
|
Kamal
|
6,000
|
Debtors
|
10,800
|
Creditors
|
6,000
|
Cash
|
600
|
Bills Payable
|
3,300
| ||
44,700
|
44,700
|
On that date, Dilip was admitted for ¼th share of profit on the following terms :
(i) That Dilip brings in cash Rs 9,000 for Goodwill and Rs 15,000 as capital
(ii) That half of the Goodwill shall be withdrawn by the old partners
(iii) That the firm’s furniture be depreciated by 10%
(iv) That a provision of 5% on debtors be created for doubtful debts
(v) That a liability for Rs 1,080 be created against bills discounted
(vi) That the building be valued at Rs 27,000
Give necessary Journal Entries and Ledger A/c’s and prepare the Balance Sheet of the new partnership firm.
Or
(b) A, B and C are partners sharing profits in the ratio of 3 : 4 : 2. B retires and the Goodwill of the firm is valued at Rs 8,100. No Goodwill A/c appears in the books of the firm. A and C decide to share profits in the ratio of 5 : 3.Pass Journal Entries to record Goodwill if –
(i) It is allowed to remain in the books;
(ii) It is not allowed to remain in the books;
(iii) Only share is recorded;
(iv) No account is raised for Goodwill.
4. (a) Raju took a lease of a mine for a period of 20 years. Royalty payable is Re 1 per ton subject to a minimum rent of Rs 12,000 per annum. The short-workings are recoupable during the first three years of the lease. The output was –
2004 – Nil
2005 – 4000 tons
2006 – 20000 tons
2007 – 40000 tons
Give Journal Entries on the books of Raju.
Or
(b) The following information relates to Guwahati branch :
Rs
|
Rs
| ||
Stock on 1st January
|
11,200
|
Sales at Branch
Cash 25,000
Credit 39,000
|
64,000
|
Branch debtors on 1st January
|
6,300
| ||
Goods sent to Branch
|
51,000
|
Cash received from debtors
|
41,200
|
Cash sent to Branch for :
Rent 1,500
Salaries 3,000
Petty cash 500
|
5,000
|
Stock on 31st December
|
13,600
|
You are required to prepare Branch A/c for the year and also the Branch Debtor’s A/c.
5. (a) Describe the principles and methods of Government Accounting.
Or
(b) Explain in detail the general structure of financial administration in India.