Total No. of Questions—7] [Total No. of Printed Pages—4
Seat
No.
P.G. DIPLOMA IN TAXATION EXAMINATION, 2018
Paper I
FINANCIAL ACCOUNTING
Time Three Hours Maximum Marks 100
N.B. Question No. 7 is compulsory. Out of the remaining attempt
any four questions.
(ii All questions carry equal marks.
(iii Figures to the right indicate full marks.
1. Explain 'Book-keeping' and state the difference between Book-keeping
and Accountancy.
2. Explain the classification of accounts.
3. What is subsidiary book Explain the various types of subsidiary
books.
4. Write short notes on (any
Journal
Income and expenditure account
Accrual Concept
Depreciation
Admission of partner.
P.T.O.
2
5. Prepare bank reconciliation statement from the following particulars
as on 30.06.2015
Bank Pass Book showed a balance of Rs. 9,214
(ii Bank credited the sum of Rs. 1,650 by mistake
(iii Cheque of Rs. 4,500 issued on 29.06.2015 but presented for
payment on 02.07.2015.
As per standing instruction, Bank transferred Rs. 950 to our
Loan A/c.
A cheque of Rs. 600 received, deposited and credited by Bank,
was wrongly recorded in cash column in the Cash Book.
Cheques up to Rs. 8,500 were deposited in June but cheques
up to Rs. 6,000 were cleared by Bank.
6. The following is the Balance sheet of Minu, Sinu and Ritu who
were sharing profits and losses in proportions of their
capitals
Balance Sheet as on 31/03/2015
Liabilities Amt Assets Amt
Capital accounts Plant and Machinery 20,000
Minu 50,000 Land and Building 55,000
Sinu 20,000 Stock 12,000
Ritu 30,000 Sundry Debtors 12,000
Sundry creditors 15,000 Less RDD 1,000 11,000
Cash in hand 17,000
1,15,000 1,15,000
Ritu retires from the business on 31/03/2015 and the following adjustments
were agreed to
The stock is to be valued at 92% of its book value.
RDD is to be maintained at 10% on Sundry Debtors.
3 P.T.O.
The value of Land and Building be appreciated by 20%.
The goodwill of the firm be fixed at Rs. 12,000 and Ritu's
share in the same be adjusted in the account of continuing
partners in gain ration.
The entire capital of New firm be fixed at Rs. 1,60,000 between
Minu and Sinu in proportion to their new profit sharing ratio
which is fixed as 3 1 by making adjustment for difference
in cash.
Prepare Profit and Loss Adjustment Partners Capital and
Balance Sheet after retirement of Ritu.
7. From the given Trial Balance of Mr. Vijay Chavan, you are required
to prepare Trading and Profit Loss Account for the year ended
31st March, 2015 and Balance Sheet as on that date
Trial Balance as on 31st March, 2015
Particulars Dr. Amt Particulars Cr. Amt
Bad debts 300 Bank Overdraft 2,000
Bills receivable 1,200 Capital 50,000
Building 40,000 Commission 900
Drawings 5,000 Outstanding wages 1,000
Fuel, Coal and Water 2,500 RDD 400
Furniture 6,000 Sales 61,000
General expenses 1,500 Sundry creditors 20,000
Insurance 400
Office rent 600
4
Opening stock 10,000
Prepaid salaries 1,200
Purchases 35,000
Salaries 4,000
Sales returns 2,000
Stationery 1,300
Sundry debtors 22,600
Trade expenses 200
Wages 1,500
1,35,300 1,35,300
Adjustments
Closing stock was valued at Rs. 18,400
Depreciate Building by and Furniture by 10% P.A.
Write off bad debts Rs. 600 and create RDD at on Sundry
debtors.
Commission of Rs. 300 were earned but not received.
On 31st March 2015, stock of stationery in hand was of
Rs. 300
Goods of Rs. 500 were distributed as free samples.