Bharathiar University 2006 B.Com University - Question Paper

B`s Capital 30,000 Stock 25,800
Debtors 18,000
(-) Reserve 3,000 15,000
Building 22,000

1, 00,000 1, 00,000


C is admitted as partners for 1/4th share in the firm subject to the subsequent conditions:

(i) C brings rs.40, 000 as capital and Rs.5, 000 as goodwill.
(ii) Increase the reserve by Rs.500.
(iii) Stock to be appreciated by 10% and building by20%.
(iv) The total capital of the firm is fixed at Rs.1, 60,000 shared in the profit sharing ratio.
Prepare revaluation a/c , capital a/c and New balance sheet.

(Or)

(b) P, Q and R are partners in a business sharing profits and losses in the ratio3:2:1.
Their Balance sheet on 31st June 2004 was as follows:
Rs Rs

Creditors 1,600 Cash in hand 600
Reserve fund 6,000 Cash at bank 1,000
Capital: Debtors 9,000
A: 10,000 Stock 7,000
B: 10,000 Machinery 6,000
C: 10,000 Building 14,000


37,600 37,600

On the date R retires from business. It is agreed to adjust the value of assets as follows:
(i) To make a provision of 5% on debtors for doubtful debts
(ii) To depreciated stock by 5% and machinery by 10%
(iii) Building to be valued at rs.15, 100.
Show Revaluation a/c and Partner’s capital a/c.


20 (a) Under what headings will you classify the subsequent items and brief:

(i) Preliminary expenses
(ii) Miscellaneous expenditure
(iii) Loans and advances
(iv) Investments.

(Or)

(b) The subsequent balances were extracted from the books kanna Ltd. For the year ended 31.12.2004.
Rs Rs
Buildings 6, 00,000 Creditors 3, 50,000
Furniture 60,000 P/L (cr) 20,000
Motor vehicle 60,000 Gross profit 1, 00,000
Eq. share 4, 00,000 Dividend received
Debtors 2, 80,000 on investment 10,000
Stock 4, 00,000 Salaries and wages 2, 20,000
Cash at bank 1, 72,000 Director’s fees 8,000
Advance Electricity charges 25,000
Against buildings 1, 30,000 Rent, taxes and insurance 10,000
10,000eq.share Auditor’s fees 15,000
Of Rs.10 every 10,00,000

Prepare P/L account and balance sheet as on the date.
(i) Provide 10% depreciated p.a.
(ii) Stock has been revalued as Rs.3, 60,000. This has not been considered as yet.
(iii) Debts more than six months are Rs.80,000
(iv) Ignore tax provision.

Earning:   Approval pending.