Series OSS                                                                                                                                    Code No. 232

                                                                   ACCOUNTING FOR BUSINESS – 11

Time Allowed: 3 Hours                                                                                                               Max. Marks: 60

Instructions :   All questions are compulsory. Give working notes wherever necessary

 

 

1.    When one financial figure is expressed in terms of another financial figure, name the relationship established between them.    1

2.    Give the meaning of partly secured loan.                         1

3.    When is an Investment treated as a Fixed Asset ?                       1

4.    Explain in brief the meaning of Cost Accounting.

5.    Is  it  essential  for  a  Private  Company  to  obtain  a  certificate  of commencement of business ?                     1

6.    Explain the meaning of Accounting framework.                                      1

7.    Under which heading will you show the following in the Balance Sheet of a company as per Schedule VI Part I of the Companies Act 1956 ?                                      2

    Calls in arrears, Uncalled liabilities on partly paid shares, Stores & spare parts, Shares of State Bank of India.

 

8.    From the following Balance Sheet, calculate Debt-Equity ratio Balance Sheet

Liabilities	Amount Rs	Assets	Amount Rs
Share Capital Reserve & Surplus Secured Loan Unsecured Loan Current Liabilities Provisions	64,700   4,300 24,000 21,000   7,000   3,000      1,24,000	Fixed Assets Investments Current Assets Loans & Advances Miscellaneous Expenditure Profit & Loss A/C	80,000 15,000 17,500   2,500   5,000   4,000     1,24,000

 

9.    How is an Investment Account maintained in the books of a company ? Explain briefly.               3

10.  On    1st December,    2009,  Mr. X purchased    400,    6%  Debentures of Rs.    100    each at Rs.    110    ex-interest of Z Ltd. from Mr. Y for cash. Interest is payable on 31 March and 30 September every year.

How will you record the transactions in the books of Mr. X & Mr. Y if each party had to pay bank commission of 20 paise percent ?                                  3

11.  Units produced are 0, 10, 20, 30, 40 & 50. Fixed cost is Rs.    18,000 and Variable cost is Rs.    15,000    at the production of 20 units. Prepare a table showing Variable cost, Total cost and Average total cost.                      3

12.  What is meant by a Private Company ? Explain any two features of a Private Company.                        3

13.  If Stock turnover is 8 times, Gross Profit at 25% on Sales is Rs. 60,000 and Opening Stock is Rs.    5,000    less than the Closing Stock, find Opening and Closing Stock.                                 4

14.  “Insurance is a kind of investment.” How ? Explain.                                   4

15.  What is Memorandum of Association ? Explain.its clauses in brief.                    4

16.  Explain any four features of Computerized Accounting System.                               4

17.  Explain the meaning of NRI’ Banking and Corporate Banking.

18.  Explain the steps to develop a Payroll system.

 

19:  From the following Comparative Balance Sheets prepare Cash Statement as per Accounting Standard III :
                                                Balance Sheet

Liabilities	2007-08 Rs.	2008-09 Rs.	Assets	2007-08 Rs.	2008-09 Rs.
Share Capital General Reserve Profit and Loss A/c 9% Debentures Loan    12% Creditors Bills Payable Bank Overdraft Provision for Tax	30,000   6,000   8,000   9,000   3,000   8,000   6,000   7,000   4,000    81,000	50,000 10,000   5,000   4,000   5,000   5,000   7,000   4,000   5,000   95,000	Goodwill Building Machinery Investment Stock Debtors Cash Discount on issue of debentures	5,000 30,000 20,000 10,000   6,000   5,000   3,000 .   2,000    81,000	3,000   2,100 40,000 12,000   4,000 12,000   2,000 .   1,000   95,000

Adjustments :
(i)    Tax paid during the year Rs. 2,500.
(ii)    Building costing Rs. 9,000 was sold at a profit of Rs. 1,000.
(iii)    40% of Investments were sold at 80%.

                                                        OR
Following is the Balance Sheet of Mr. X, a sole trader on 31 March, 2009. You are required to prepare Cash Flow Statement
                                                   Balance Sheet

Liabilities	2007-08 Rs.	2008-09 Rs.	Assets	2007-08 Rs.	2008-09 Rs.
Creditors Outstanding Loan from Mr. A X’s Capital	10,000   2,500   5,000 54,000              71,500	11,000      500   2,500 84,000              98,000	Cash Debtors B/R Stock Fixed Assets	4,000   7,500   2,500 10,000 47,500    71,500	11,000   5,500 14,000      - 67,500    98,000

During the year, Mr. X introduced Rs.    10,000    as additional capital. The net profit for the year after charging Rs.    5,000    as depreciation on fixed assets, was Rs. 25,000.

 

20.    Nazia & Bros. is a manufacturing concern of coolers. It provides you the following details. You are required to prepare a statement showing the cost of production :

Work in progress on 1 January, 2009 :
    At prime cost    Rs. 51,000
    Manufacturing expenses    Rs. 25,000

Work in progress on 31 December, 2009 :
    At prime cost    Rs. 45,000
    Manufacturing expenses    Rs. 20,000

Stock of Raw Material, 1 January, 2009 - Rs. 2,05,000
    Purchases of Raw materials  Rs. 4,97,000
    Direct labour    Rs.    1,71,000
    Manufacturing expenses    Rs. 84,000

Stock of Raw Material on 31 December, 2009 - Rs. 2,04,000
    Office expenses    Rs. 36,000
                                           OR
Explain with example the meaning of Marginal costing, Standard costing and Terminal costing.