MOHIT EDUCOMP PVT. LTD. Main Centre- 59 … FOUNDATION...Received from G. Guha in settlement of an...

MOHIT EDUCOMP PVT. LTD.

Main Centre- 59 Jatindra Mohan Avenue

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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9 Cash withdrawn from Bank 25,000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

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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

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CA FOUNDATION ACCOUNTS TEST PAPER

(ISSUE OF SHARES, ISSUE OF DEBENTURE, DEPRECIATION; ADD)

TIME ALLOWED:- 2 Hr. FULL MARKS 6*6=36

Q.1 A limited Company, with an authorized capital of `20,00,000 divided into shares of `100 each, issued for subscription 10,000 shares payable at `25 per share on application, `30 per share on allotment, `20 per

share on first call three months after allotment and the balance as and when required.

The subscription list closed on January 31, 2016 when application money on 10,000 shares was duly received and allotment was made on March 1, 2016.

The allotment amount was received in full but, when the first call was made, one shareholder failed to pay the amount on 1,000 shares held by him and another shareholder with 500 shares paid the entire amount on his shares.

Give journal entries in the books of the Company to record these share capital transactions assuming that all amounts

due were received within one month of the date they were called.

Q.2 X Company Limited issued 10,000 14% Debentures of the nominal value of `50,00,000 as follows:

(a) To sundry persons for cash at 90% of nominal value of `25,00,000.

(b) To a vendor for purchase of fixed assets worth `10,00,000 – `12,50,000 nominal value.

(c) To the banker as collateral security for a loan of `10,00,000 – `12,50,000 nominal value.

Pass necessary Journal Entries.

Q.3 A owes B `890on 1st January, 2005. From January to March, the following further transactions took place

between A and B:


February 2


`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.

Q.4 The cost of the machinery in use with a firm on 1st April, 1997 was `6,25,000 against which the depreciation

provision stood at `2,62,500 on that date; the firm provided depreciation at 10% of the diminishing value. On 3lst

December, 1997, two machines costing `15,000 and `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 `50,000 and

`37,500 respectively. One of the discarded machines was sold for `20,000, against the other it was expected that

`7,500 would be realizable. Show the relevant accounts in the ledger of the firm for the year ended 31st March,

1998.

Hint:- ` ` Depreciation on machinery in use 6,25,000

Cost of machinery on 1st April, 1997 27,000

Less: Cost of discarded machinery 5,98,000

Less: Provision for depreciation as on 1st April, 1997 2,62,500 Less: Relating to discarded machines 6,224 2,56,276 Book value on 1st April, 1997 3,41,724 Depreciation - 10% thereof Add: Depreciation on `87,500 for three months (addition)

34172

2187

36359

Q.5 A firm’s plant and machinery account at 31st December, 2015 and the corresponding depreciation

provision account, broken down by year of purchase are as follows:

Year of Purchase Plant and Machinery at cost `

Depreciation Provision `

1998 2,00,000 2,00,000

2004 3,00,000 3,00,000

2005 10,00,000 9,50,000

2006 7,00,000 5,95,000

2013 5,00,000 75,000

2014 3,00,000 15,000

30,00,000 21,35,000

Depreciation is at the rate of 10% per annum on cost. It is the Company’s policy to assume that all purchases, sales or disposal of plant occurred on 30th June in the relevant year for the purpose of calculating depreciation, irrespective of the precise date on which these events occurred.

During 2015 the following transactions took place:

1. Purchase of plant and machinery amounted to `15,00,000

2. Plant that had been bought in 2004 for `170,000 was scrapped.

3. Plant that had been bought in 2005 for `90,000 was sold for `5,000.

4. Plant that had been bought in 2006 for `2,40,000 was sold for `15,000.

You are required to:

Calculate the provision for depreciation of plant and machinery for the year ended 31st December, 2015. In calculating this provision you should bear in mind that it is the company’s policy to show any profit or loss on the sale or disposal of plant as a completely separate item in the Profit and Loss Account. You are also required to prepare the following ledger accounts during 2015.

(i) Plant and machinery at cost;

(ii) Depreciation provision;

(iii) Sales or disposal of plant and machinery.

Q.6 State the necessities required for incorporation of the LLP.

Name OF student: - ___________ date:-02/09/2018

MOHIT EDUCOMP PVT. LTD. Main Centre- 59 Jatindra Mohan Avenue

9830741471/8017567120/03325551197



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.

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Q.1 On 31st

December 2002 the balance sheet of M/S A, B and C, sharing profit & losses in proportion to their capitals,

stood as follows;

LIABILITIES ASSETS

Creditors 1, 08,000 Cash at Bank 80,000

Capital Accounts Debtors 1, 00,000

A 4, 50,000 Less:- Reserve ( 2,000) 98,000

B 3,00,000 STOCK 90,000

C 1, 50,000 9,00,000 MACHINERY 2,40,000

LAND & BUILDING 5,00,000

_________ ____________

10,80,000 10,80,000

On the date, B wants to retire from the firm and the remaining partners decide to carry on firm. The following re-

adjustments of assets and liabilities have been agreed upon before the ascertainment of the amount payable to B:

I) That out of the amount of insurance premium which was debited annually entirely to profit and loss A/C, Rs

10,000 be carried forward for unexpired insurance on 31.12,2002;

II) That the land & building be appreciated by 10%;

III) That the reserve for doubtful debts be brought up to 5% on debtors;

IV) That machinery be depreciated by 5%;

V) That a provision for Rs 15,000 be made in respect of an outstanding bill for repairs;

VI) That the goodwill of the entire firm be fixed at Rs 1,80,000 and B's share of the same adjusted in the A/C'S of A

and C who share future profits in the proportion of 3/4th and 1/4th respectively ( no goodwill account being

raised) and

VII) That B be paid Rs 50,000 in cash and the balance be transferred to his loan a/c, Prepare revaluation a/c, the

capital a/cs. Of the partners and the Balance Sheet of the firm of A & C.

Q.2 Dowell & co. is a partnership firm with partners MR. A, Mr.B and Mr. c, sharing profits and losses in the ratio of

10:6:4. The balance sheet of the firm as at 31st

March, 2008 is as under:-

LIABLITIES Rs ASSETS Rs

Capital accounts

Mr. A 80,000

Mr. B 20,000

Mr. C 30,000

Reserves (Unappropriated profit)

Long term debt

Bank Overdraft

Trade Creditors

1,30,000

20,000

3,00,000

44,000

1,70,000

6,64,000

Land

Building

Plant machinery

Furniture

Investments

Stock

Debtors

10,000

2,00,000

1,30,000

43,000

12,000

1,30,000

1,39,000

--------------

6,64,000

It was mutually agreed that Mr. B will retire from partnership and in his place Mr. D will be admitted as partner with effect

from 1st

April, 2008. For this purpose, the following adjustment will be made:-

a) Goodwill is to be valued at Rs 1,00,000 but the same will not appear as an assets in the books of the reconstituted

firm.

b) Building and plant & machinery are to be depreciated 5% & 20% respectively. Investment are to be taken over by

the retiring partner at Rs 15,000. Provision of 20% is to be made on debtors to be cover doubtful debt.

c) In the reconstituted firm, the total capital will be Rs 2,00,000 which will be contributed by Mr. A, Mr. c and Mr. D in

their new profit sharing ratio, which is 2:2:1.

d) The surplus funds, if any will be used for repaying bank overdraft.

e) The amount due to retiring partner shall be transferred to his Loan account.

You are to prepare:-

a) Revaluation Account, b) Partners capital Accounts, c) Bank Account and d) Balance sheet of the reconstituted

firm as on 1st

April 2008.

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Q.1 On 315t December 2002 the balance sheet of M/S A, B and C, sharing profit & losses in proportion

to their capitals, stood as follows;

LIABILITIES ASSETS

Creditors 1, 08,000 Cash at Bank 80,000

Capital Accounts Debtors 1, 00,000

A 4, 50,000 Less:- Reserve 2,000 98,000

B 3,00,000 STOCK 90,000

C 1, 50,000 9,00,000 MACHINERY 2,40,000

LAND & BUILDING 5,00,000

_________ ____________

10,08,000 10,08,000

On the date, B wants to retire from the firm and the remaining partners decide to carry on firm. The

following re- adjustments of assets and liabilities have been agreed upon before the ascertainment of

the amount payable to B:

I) That out of the amount of insurance premium which was debited annually entirely to profit

and loss A/C, Rs 10,000 be carried forward for unexpired insurance on 31.12,2002;

II) That the land & building be appreciated by 10%;

III) That the reserve for doubtful debts be brought up to 5% on debtors;

IV) That machinery be depreciated by 5%;

V) That a provision for Rs 15,000 be made in respect of an outstanding bill for repairs;

VI) That the goodwill of the entire firm be fixed at Rs 1,80,000 and B's share of the same

adjusted in the A/C'S of A and C who share future profits in the proportion of 3/4th and

1/4th respectively ( no goodwill account being raised) and

VII) That B be paid Rs 50,000 in cash and the balance be transferred to his loan a/c, Prepare

revaluation a/c, the capital a/cs. Of the partners and the Balance Sheet of the firm of A & C.

Q,2 The following is the balance sheet of the firm of ABC as on 31.12.2003. Their profits sharing ratio is

3:2:1

Capital & Liabilities Rs Assets Rs

Capital a/c Fixed Assets 40,000

A 16,000 Sundry debtors 32,000

B 12,000 Insurance Policy on joint

C 10,000 Life of partners 6,000

Current a/cs Stock 24,000

A 4,000 Bank 9,000

B 3,000 Cash 3,000

C 1,000

Reserve 18,000

P & L A/C

Opening Balance 6,000

Profit for the year 14,000 20,000

Creditors 20,000

Bank 0/D 10,000

_________ __________

1,14,000 1,14,000

________ __________

1, 14,000 1, 14,000 B died on 31.03.04. His account has to be settled and paid. For the year 2004

proportionate profit of 2003 is to be taken into account. For 2003, a bad debt of Rs 2,000 has to be

adjusted. Goodwill has to be calculated 3 times of the 4 years average profits; A policy is taken on the

joint life of partners for Rs 35,000 and the annual premium of Rs 2,000 has to be paid on February 1

every year, The profits for 2002 Rs 16,000, 2001 Rs 20,000 and 2000 are Rs 12,000. Goodwill account

need not be kept in the accounts. Calculate the amount payable to B's heirs, Show necessary accounts of

all partners and other detailed calculations.


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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


9830741471/8017567120/03325551197



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:


February 2


`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.


9830741471/8017567120/03325551197



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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