Accounting Exam Questions
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AMIN BUHARI ABDUL KHADERAccounting Exam Questions
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AMIN BUHARI ABDUL KHADERTuesday, August 11, 2009
1. Answer the following Questions. (10 marks)
i. In which ratio will the profits and losses be v. What is acceptance of the bill?
shared by the partners in the absence of a vi. What is inland bill?
partnership agreement? vii. What is foreign bill?
ii. Mention the parties of a bill of exchange. viii. What is noting charges?
iii. What is do you mean by grace days? ix. What is protesting?
iv. What is due date? x. What is bill of exchange?
2. On 10th March, 2009 Rajesh Bhoyar, Gandhinagar, Nagpur draws a 2 months bill for Rs. 3,000 on
Samir Choudhary, Main Road, and Belapur. Samir Choudhary accepted the bill on 15 th March 2009.
3. From the following particulars, value good will of 2yrs. Purchase of last 5 years.
Year ended Turn over Net profit
31-12-1990 5,15,000 5%
31-12-1991 5,45,600 6%
31-12-1992 5,35,800 7%
31-12-1993 5,40,900 7.5%
31-12-1994 5,60,800 7%
4. Baloo owes Kaloo Rs.8000. Kaloo then draws a bill for Rs. 8000 on Baloo for a period of three months.
Baloo accepts and return it to Kaloo. Kaloo discounted the bill with his bank at 12 % p.a. On due date,
the bill was dishonoured noting charges amount to Rs. 30. Kaloo then draws a bill for the balance plus
interest of Rs. 170. Before the due date of this bill Baloo pays the amount at a discount of Rs. 40 to retire
the bill. Pass Journal Entries in the books of Kaloo.
5. Journalize the following transactions in the books of Maharaja.
i. Ayub informs Maharaja that Sadashiv’s acceptance for Rs. 2,000 endorsed to Ayub has been
dishonoured, noting charges amounted to Rs. 150
ii. Pankaj renews his acceptance to Maharaja for Rs. 1200 by paying Rs. 400 in cash and accepting
a fresh bill for the balance plus interest at 12% p.a. for 3 months.
iii. Vaibhav’s acceptance to Maharaja for Rs. 6000 retired one month before the due date at a
discount of 12%p.a.
iv. Bank informs Maharaja as to the dishonour of Kasam’s acceptance for Rs. 2000 to Maharaja
discounted with Bank noting charges Rs. 200.
6. Suresh and Ramesh entered into a joint venture to construct a building at a contract price of Rs.
7,00,000. They agreed to share profits and losses in the ratio of 2:1. Suresh deposited Rs. 5,00,000 and
Ramesh Rs. 1,00,000 into joint bank. The transactions were as follows.
1. Purchase of materials Rs. 3,50,000 3. Wages Rs. 1,20,000
2. Tools and equipment Rs. 1,00,000. 4. Architect fees Rs. 25,000
Besides these, Suresh supplied material worth Rs. 15,000 and Ramesh supplied material worth Rs. 13,500.
Building was ready and contract price received. Prepare Joint venture A/c, Joint Bank A/c & Co –
Venturer’s A/c.
7. Sudhir and Narendra Signed a contract jointly to construct an office building for Abhay Enterprises
Ltd. The contract price was Rs. 2,50,000. They opened a Joint Bank Account and deposited Rs. 1, 20,000
and Rs. 60,000 respectively. They agreed to share the profits and losses in the ration of 3/5 th and 2/5th
respectively. The following transaction was made from the Joint Bank Account. Wages Rs. 70,000
Materials purchased Rs. 1,25,000 Apart from the above transactions, Sudhir supplied material of Rs.
12,000 and Narendra paid the architect’s fees Rs. 2500. On completion of the construction, Abhay
Enterprises Ltd. paid full amount. There was unused stock of materials which was taken over by
Narendra at Rs. 15000. Prepare Joint venture A/c, Joint Bank A/c & Co – Venturer’s A/c.
Tuesday, August 11, 2009
1. Answer the following Questions. (10 marks)
i. Who is endorsee? vi. Who is Drawer?
ii. What do you mean by goodwill? vii. Who is Drawee?
iii. What is endorsement of Bill? viii. Who is endorser?
iv. What is retirement of the bill? ix. Who is payee?
v. What is Hundies? x. What is the formula for average profit?
2. Drawer : Priti Chavan, Chandika Road, Malvan.
Drawee : Snehlata Patil, Prashant Nagar, Ambajogai
Payee : Archana Ghime, Amaravati
Amount of Bill : Rs, 10,000/-
Period : 2 months.
Date of Bill : 1st January, 1996
Date of Acceptance : 5th January, 1996
3. A firm with an average capital employed of Rs. 1, 60,000 is expected to earn Rs, 40,000 per annum in
future. Calculate goodwill at three times the super profit taking the normal rate of return as 15%.
4. Sagar owes Sindhu Rs. 8000 Sagar accepted a bill for 3 months by Sindhu for Rs. 8000. Sindhu
discounted the bill with bank at Rs. 7800. On the due date, the bill was dishonoured. Noting charges
amounted to Rs. 20. Sagar Paid half the amount of the bill and full amount of the noting charges
including interest of Rs. 100. Pass journal entries in the books of Sindhu and show the account of Sagar.
5. Journalise the following transactions in the books of Rahul.
a. Pradeep informed Rahul that, Vijay’s acceptance for Rs. 1,000 endorsed to Pradeep has been
dishonoured. Noting charges amounted to Rs. 50.
b. Nilesh renews his acceptance to Rahul for Rs. 600 by paying Rs. 200 in cash and accepting a fresh bill
for balance plus interest at 12% p.a. for 3 months.
c. Prashant’s acceptance to Rahul for Rs. 3,000 retired one month before due date at a discount of 12%
p.a.
d. Bank informs Rahul as to the dishonour of Aviraj’s acceptance for Rs. 1,000 to Rahul, discounted with
the bank. Noting charges are Rs. 20.
6. Dimple and Simple entered into a joint venture. They agreed to share profits and losses in the
proportion of their initial contributions to the joint venture. They opened a joint Bank A/c. and
deposited Rs. 60,000 and Rs. 40,000 respectively as initial contributions. They made cash purchases of
Rs. 70,000. They also paid Rs. 4,500 for insurance and freight and Rs. 1,750 for sundry expenses. At the
end of the venture, the sales amounted to Rs. 1, 10,000/- There was unsold stock of goods worth Rs.
5000. Simple took over the unsold stock. Prepare Joint venture A/c, Joint Bank A/c & Co – Venturer’s A/c.
7. Manoj and Ambalal enter into a joint venture to prepare a building for the government, who agrees to
pay Rs. 2,00,000. A Bank Account is opened in their joint names; Manoj contributing Rs. 25,000 and
Ambalal Rs. 25,000 and it is agreed that they will share the profit and losses in the proportion of 2/5th
and 3/5th respectively.
Payment made out of the Joint Bank accounts were:
Purchases of Equipments : Rs. 14,000
Hire Purchases of Equipments : Rs. 13,000
Wages : Rs. 85,000
Purchases of Materials : Rs. 18,000
Office expenses : Rs. 8,000
Manoj and Ambalal then paid Rs. 5, 000 and Rs. 3,000 respectively for other expenses. The building was
completed the government paid the amount by cheque and the joint venture was closed. Ambalal taking up
the equipments at Rs. 4,000 and Manoj taking up the unused material at Rs. 2, 000. Prepare Joint Venture
A/c, Joint Bank A/c and Co-Venture’s A/c.
