THE INDIAN COMMUNITY SCHOOL, KUWAIT

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ACCOUNTANCY

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Part –A -Accounting for Non profit organizations and Companies 1.How are the following items treated while preparing the final accounts of Non- profit organizations?

a.Entrance fees/Admission Fees

b.Life Membership Fees (1)

2.State the maximum permissible discount at which the forfeited shares can be reissued at a discount.(1)

3.Give any 1 point of difference between calls in arrears and calls in advance. (1)

4.a.)How are the following dealt with while preparing the final accounts of Dhoni Sports Club?

Particulars Dr.(Rs) Cr.(Rs)

Match Fund

Match Fund Investments

Match Fund Bank Balance

Interest on Match Fund Investments

Match Expenses

------

72,000

3,500

------

5,500

80,000

-----

-----

2,880

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b.)In 2015-16 subscriptions received by King Club were Rs 40,900 including Rs 500 for 2014-15 and Rs 1000 for

2016-17.At the end of 2015-16 , the total subscriptions outstanding for 2015-16 wereRs 1500.The subscriptions

due but not received on 31st March 2015 were Rs800. Subscriptions received in advance on 31st March 2015

were Rs1800.Calculate subscriptions to be credited to Income & Expenditure Account for year ended 31st March

2016.(3)

5.Karachi Golf Club prepared the following Receipts and Payments Account for the yearended December 31, 2017.Prepare its Income & Expenditure a/c and ascertain the Capital Fund.

Receipts Amount(Rs) Payments Amount (Rs) Opening balance of cash 3,800 Sports Equipments10,000 Subscriptions 2016 2000 (purchased on 30.6.2017) 2017 18500 Tournament expenses 4000 2018 900 Electricity 500 Entrance fees 800 Printing 300 Interest on Investment 1500 Expenses for exhibition 2100 Salaries and wages 3400 Closing Balance of cash 7200 27500 27500

CODE :N 055 SERIES : I MT /FN/ 2018 - 2019

Additional information: 1. Assets of the club on January 1, 2017 include the following:

Club Ground- Rs 50,000,Sports Equipment- Rs 15,500,Furniture- Rs 2,000,Investment -Rs 12,000

2. Subscription for 2017 collected in 2016 Rs. 500

3. Unpaid subscriptions for 2017 Rs. 300.

4. Depreciation to be provided @ 5% p.a. on furniture and @ 20% p.a. on sports equipment. (6)

6. Record the necessary journal entries for forfeiture and reissue of shares in each of the following cases: a.X Ltd. forfeited 400 shares of Rs 10 each issued at a premium of Rs 3 per share for the non – payment of first call of Rs 3 per share.The final call of Rs 2 per share has not been made.Half of the forfeited shares were reissued at Rs 22,000 fully paid. b.V Ltd. forfeited 1000 equity shares of Rs 10 each issued at a premium of Rs 2 per share for non-payment of allotment money of Rs 5 per share (inc.premium).The final call of Rs 2 per share was not yet called.Of these 800 shares were reissued at Rs 12 per share fully paid up and the remaining shares were reissued at Rs 11 per share fully paid up. c.) N Ltd. forfeited 200 shares of Rs 10 each (Rs 7 called up) on which a shareholder has paid the application & allotment money of Rs 5 per share.Of these 150 shares were reissued for Rs 8 per share (Rs 7 called up). (8)

Part –B - Financial Statement Analysis

7.Describe the importance/uses of a Cash Flow Statement.(any 3) (3) 8.Explain the following terms with eg.s a.) Cash equivalents b.) Extraordinary items c.)Non cash transactions (3) 9.Explain the utility of financial analysis to the following parties: a.) Management b.) Bankers & Lenders c.)Potential Investors d.)Trade Unions (4)

10.Following is the statement of Profit and Loss of DD Ltd. for the year ended on 31-3-2015.

Particulars NoteNo. 31-3-2015(Rs) 31-3-2014(Rs)

Revenue from operations 75,00,000 34,00,000

Other Income 1,50,000 3,00,000

Employee benefit Expenses - -

(60% of total revenue)

Other expenses - -

(10% of employees benefit expenses)

Tax rate 50% 50%

Prepare a comparative statement of Profit and Loss of DD Ltd. (4)

11.Calculate cash flow from operating activities from the given information:

Particulars Closing Balance(Rs) Opening Balance(Rs)

Surplus i.e. Balance in Statement of P&L

Debtors

Trade Receivables

General Reserve

Provision for depreciation

Outstanding expenses

Goodwill

65,000

67,000

1,03,000

2,37,000

30,000

12,000

70,000

60,000

1,02,000

62,000

2,02,000

20,000

30,000

80,000

An asset costing RS 40,000 having book value ,Rs 28,000 was sold for Rs 36,000. (4)

12.a.)If the current assets of a company are Rs 17, 00,000. Current ratio is 2.5 and acid test ratio is 0.95, calculate its current liabilities and inventory.

b.)Compute debt – equity ratio from the following information:

Long term borrowings – Rs 8,00000

Long term provisions – Rs 4,00000

Current liabilities – Rs 2,00000

Current assets – Rs 3,60000

Non current assets – Rs 14,40000(3+3=6)

13.Prepare a Cash Flow Statement from the following Balance Sheets of Kashmiri ltd. as on 31/3/2017 and 31/3/2018.

Particulars Note No. 2017-18 2016-17

EQUITY AND LIABILITIES (1)Shareholders Funds (a) Share capital (b)Reserves and Surplus (2)Non Current Liabilities Long term borrowings (3)Current Liabilities Trade payables Short term provisions

1

2

14,00,000 5,00,000

5,00,000

1,00000 80,000

10,00,000 4,00,000

1,40,000

60000 60,000

TOTAL 25,80,000 16,60,000

ASSETS (1)Non Current Assets (a)Fixed Assets Tangible assets Intangible assets (2)Current Assets (a)Inventories (b)Trade Receivables (c)Cash & Cash equivalents

3 4

16,00,000 1,40,000

2,50,000 5,00,000

90000

9,00,000 2,00,000

2,00,000 3,00,000

60000

TOTAL 25,80,000 16,60,000

Notes to accounts:

S.NO. Particulars 31.3.2018 31.3.2017

1. 2. 3. 4.

Reserves and Surplus Short term provisions Tax provision Tangible assets Machinery Less Accumulated depreciation Intangible assets Goodwill

500000 80000 1760000 (160000) 140000

400000 60000 1000000 (100000) 200000

1.IncomeTax paid during the year- Rs 70000.(6)

PART –B – COMPUTERISED ACCOUNTING SYSTEM

7.Explain the various types of codes with egs. (3)

8. Define CAS. Enumerate any 2 salient features of CAS. (3)

9. Describe the significance of grouping of accounts and hierarchy of accounts in the generation of ledger accounts and Trial Balance. (4)

10. Describe clearly the various safety and security features of TALLY. (4)

11.Give the syntax for the following financial functions:

a.) PMT b.) PV c.) CUMIPMT d.)FV (4)

12.Explain in detail the various elements of a graph. (6)

13. Seema is a Non-supervisor. She took leave for half a day during the month. Her basic pay is Rs10,000. On the basis of the following information using Excel give the formulae to compute : (a) Basic pay earned (b) D.A. (c) House Rent Allowance and (d) Transport Allowance. Information : Number of working days in the month are : 31 Rate of D.A. 45% of basic pay HRA rate for supervisory staff is 35% of basic pay HRA for non-supervisory staff 20% of basic pay Transport allowance for supervisory staff Rs8,000 / month Transport allowance for non-supervisory staff Rs5,000/ month.(6)

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THE INDIAN COMMUNITY SCHOOL, KUWAIT FIRST MID TERM EXAMINATION 2018-19

XII – ACCOUNTANCY Max Marks- 50

Time – 2 Hrs ANSWER KEY

1. a.Entrance fees/Admission Fees – Revenue receipt , shown on income side of Income &

Expenditure a/c

b.Life Membership Fees – Capital Receipt, shown in B/S (liability side). (1/2+1/2=1)

2. The maximum permissible discount at which the forfeited shares can be reissued at a

discount is the amount credited to the forfeited shares a/c. (1)

3. Any 1 point of difference between calls in arrears and calls in advance based on definition,

interest rate, accounting treatment etc. (1)

4. a.)Balance Sheet of Dhoni Sports Club (1.5)

Liabilities Amount Assets Amount Match Fund 80000

+Interest on Match Fund

Investments

2880

-Match Expenses 3500

79,380

Match Fund Investments

Match Fund Bank Balance

72,000 3,500

b.)Subscriptions received in 2015-16 = Rs 39,400

+ Outstanding subscriptions for 2015-16 = Rs 1500

+ Subscriptions received in advance on 31st March 2015 = Rs 1800

Subscriptions credited to Income & Expenditure Account for year ended 31st March 2016 = Rs 42,700(1.5)

5. Income & Expenditure a/c Account Karachi Golf Club for the year ended Dec 31, 2017 (6)

Expenditure Amount Income Amount

Tournament expenses Electricity Printing Expenses for exhibition Depreciation: Furniture Sports equipment Salaries & Wages Surplus

4000 500 300 2100 100 4100 3400 7100 21600

Entrance fees Interest on Investment Subscriptions 18500 + Unpaid subscriptions 300 + Subscriptions received in advance 500

800 1500 19300 21600

Balance Sheet of Karachi Golf Club as on 1/1/2017

Liabilities Amount Assets Amount Subscriptions received in advance

Capital Fund

500 84800 85300

Cash Club Ground Sports Equipment Furniture Investment

Outstanding subscriptions

3800 50000 15500 2000 12000 2000 85300

6. JOURNAL (8)

Date Particulars L.F.

Debit Credit

a. b.

Equity share capital a/c Dr To equity share first call a/c To forfeited shares a/c (Being 400 shares forfeited) Bank a/c Dr To equity share capital a/c ( Being 200 shares reissued at par) Forfeited shares a/c Dr To capital reserve a/c (Being balance of forfeited shares a/c transferred to capital reserve a/c) Equity share capital a/c Dr Securities Premium Reserve a/c Dr To equity share allotment a/c To forfeited shares a/c (Being 1000 shares forfeited) Bank a/c Dr To equity share capital a/c To Securities Premium Reserve a/c ( Being 800 shares reissued at premium) Bank a/c Dr To equity share capital a/c To Securities Premium Reserve a/c ( Being 200 shares reissued at premium)

3200 2000 1000 8000 2000 9600 2200 5000

1200 2000 2000 1000 5000 5000 8000 1600 2000 200

c.

Forfeited shares a/c Dr To capital reserve a/c (Being balance of forfeited shares a/c transferred to capital reserve a/c)(4000+1000) Equity share capital a/c Dr To equity share first call a/c To forfeited shares a/c (Being 200 shares forfeited) Bank a/c Dr To equity share capital a/c To Securities Premium Reserve a/c ( Being 150 shares reissued at premium) Forfeited shares a/c Dr To capital reserve a/c (Being balance of forfeited shares a/c transferred to capital reserve a/c)(

1400 1200 750

5000 400 1000 1050 150 750

Part –B - Financial Statement Analysis

7.Any 3 importance/uses of a Cash Flow Statement to be described.(3)

8.a.) Cash equivalents b.) Extraordinary items c.)Non cash transactions to be explained with egs.(3)

9.The utility of financial analysis to the following parties to be explained: a.) Management b.) Bankers & Lenders c.)Potential Investors d.)Trade Unions (4)

10. Comparative Statement of Profit and Loss of DD Ltd as on 31/3/2015 (4)

Particulars NoteNo. 31-3-2014(Rs) 31-3-2015(Rs) Absolute %

Change Change

Revenue from operations 34,00,000 75,00,000 41,00,000 120.58

Other Income 3,00,000 1,50,000 (1,50,000) (50)

Total revenue 37,00,000 76,50,000 39,50,000 106.75

Employee benefit Expenses 22,20,000 45,90,000 23,70,000 106.75

Other expenses 2,22,000 4,59,000 2,37,000 106.75

Total expenses 24,42,000 50,49,000 26,07,000 106.75

PBT 12,58,000 26,01,000 13,43,000 106.75

Tax 12,58,000 26,01,000 13,43,000 106.75

PAT 12,58,000 26,01,000 13,43,000 106.75

11. Cash flow from operating activities:

N/P before tax & extraordinary items (5000+35000) 40,000

+ Goodwill w/o 10,000

+Depreciation on plant 22,000

- Profit on sale of plant 8000

Operating profit before working capital changes64,000

+Inc in debtors 35,000

- Dec in B/R 41,000

- Inc in outstanding expenses 18,000

Cash flow from operating activities 40,000 (4)

12.a.Current liabilities= Rs 6,80,000

Quick assets = Rs 6,46,000

Inventory =Rs 23,46,000

b.Long term debt = Rs 12,00,000

Equity = 14,40,000+3,60,000-2,00,000-12,00,000= Rs 4,00,000

Debt-Equity ratio = 12,00,000/4,00,000= 3:1 (3+3=6)

13.Cash flow from operating activities – 30,000

Cash flow from investing activities –(7,60,000)

Cash flow from financing activities – 7,60,000

Net increase in cash & cash equivalents – 30,000

Opening cash & cash equivalents - 60,000

Closing cash & cash equivalents - 90,000 (6)

PART –B – COMPUTERISED ACCOUNTING SYSTEM

7.Block, Mnemonic and Sequential codes to be explained with eg.s.(3*1=3)

8.CAS to be defined and any 2 salient features to be explained.(1+2=3)

9.The significance of grouping of accounts and hierarchy of accounts in the generation of

ledger accounts and Trial Balance to be explained with respect to grouping and coding of

accounts. (4)

10. The various safety and security features of TALLY like password security, data audit, data

vault to be explained. (2+1+1=4)

11. a.) PMT b.) PV c.) CUMIPMT d.)FV (Syntax to be given)(4*1=4)

12.The various elements of a graph to be explained like chart area, plot area, data

points,horizontal & vertical axis,legend,datalabel,chart & axes titles (6)

13.Excel formulas to be drafted for calculating (a) Basic pay earned(b) D.A.(c) House Rent Allowance and (d) Transport Allowance by assuming cells .

Basic pay earned = Basic pay *(No.of days worked /Total days in the month)

D.A.= Basic pay earned * D.A. rate

House Rent Allowance=If Emp type = “SUP”then 35 % of Basic pay earned, 20% of Basic pay

earned.

Transport Allowance= If Emp type = “SUP”then 8000, 5000. (6)

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