Madras University (UnOM) 2007 B.C.A Computer Application Accounts - Question Paper

Q nine J, S and R were in partnership sharing profits and losses in the ratio of three : two : 1. Their Balance Sheet as on 31 December, 1994 was as follows :

Balance Sheet
Liabilities Rs. Assets Rs
Capital Accounts
J 12,000 Buildings 10,000
S 8,600 Plant 22,000
R 10,400 Stock 6,000
Reserve Fund 3,000 Joint Life Policy 6,200
Employees’ Provident Fund 3,000 Debtors 5,000
Depreciation Reserve 5,000 Accrued Interest 1,000
Creditors 11,000 Cash 2,800
53,000 53,000

It was agreed to dissolve the firm, and the terms of the dissolution were :
(i) J took over building at book value and agreed to pay off creditors.
(ii) Accrued interest was not collected whereas there was a contingent liability of Rs. 600 which was meet.
(iii) Other assets realised : plant: Rs. 25,000; stock : Rs. 5,000; debtors: Rs. 4,600
(iv) Realisation expenses: Rs. 600
Prepare realisation account, capital accounts and cash account.

OR

A, B and C were carrying on partnership business sharing profits in the ratio of three : two : one respectively. On 31 December, 1996, the Balance Sheet of the firm stood as follows:

Balance Sheet

Liabilities Rs. Assets Rs
Creditors 13,590 Cash 4,700
Capital Debtors 8,000
A 15,000 Stock 11,690
B 10,000 Building 23,000
C 10,000 Pand L A/C 1,200
48,590 48,590

B retired on the above mentioned date on the subsequent terms :
(i) Building to be appreciated by Rs. 7,000.
(ii) Provision for doubtful debts to be made 5% on debtors.
(iii) Goodwill of the firm is valued at Rs. 18,000 and adjustment in this respect to be made in the continuing partner’s capital accounts without raising goodwill account.
(iv) Rs. 3,000 to be paid to B immediately and the balance in his capital account to be transferred to his loan account.
Prepare revaluation account, capital accounts, cash account, and the balance sheet after B’s retirement. (Marks 12)

Q 10 Indicate which of the subsequent transactions would outcome in (a) Source, (b) Use, and © Neither Source nor use of the fund :
(i) Collection from debtors Rs. 5,000, (ii) Sale of old machinery Rs. 2,000, (iii) Redemption of debentures Rs. 10,000. (Marks 3)

Q 11 calculate cash from operations from the subsequent details : (Marks 3)

Earning:   Approval pending.