(Important Questions) ISC Board Important Questions Accountancy - 2010 [Set-2]

ISC Board Important Questions
Accountancy - 2010

Q1. Interest on debentures has to be paid even if the company is not earning a profit Justify.

Q2. How is normal loss dealt with in a consignment sale ?

Q3. How is goodwill paid privately by an incoming partner treated in books of accounts ?

Q4. What is meant by issue. of shares for consideration other than cash ?

Q5. Mention two advantages of preparing a Funds

Flow Statement.  

Q6. State any two advantages of the Self Balancing System.

Q7. State two differences between interest on capital allowed to partners and interest on drawings charged to partners.

Q8. State two effects of forfeiture of shares.

Q9. Why is premium on the issue of debentures considered a capital profit ?

Q10. What is the purpose of opening ajustment accounts in the self-balancing system ?

Q11. The following are the Balance Sheets of Gyan Ltd. as on 31st March 2005 and 3110 March 2006.

Liabilities 31.03.05 Rs. 31.03.06 Rs. Assets 31.03.05 Rs. 31.03.06 
Share Capital 2,50,000 2,72,000 Land & Building 1,00,000 1,45,000
Profit & Loss A/c 75,000 1,26,000 Machinery 1,75,000 1,80,000
Debentures 1,00,000 1,20,000 Debtors 73,500 69,000
Creditors 60,000 52,500 Stock 1,25,000 1,37,000
Provision for     Bank 41,500 72,500
Doubtful Debts 2,500 2,000      
Provision for     Preliminary Expenses 2,500 2,000
Depreciation on Plant 15,000 16,000      
Provision for          
Depreciation Buildings 15,000 17,000      
  6,17,500 6,05,500   5,17,500 6,05,500

Additional Information :

(1) During the year, part of the machinery costing Rs. 3,500 (Accumulated depreciation thereon Rs. 500) was sold for Rs. 2,500.

(ii) Dividend of Rs. 25,000 was paid during the year ended 3181 March 2006.

Prepare :

(a) A schedule of Changes in Working Capital.

(b) A Fund Flow Statement.

Q12: On 1st January 2005, Vithal of Mumbai sent goods costing Rs. 2,00,000 on consignment to Sai of Allahabad. Vithal paid Rs. 10,000 towards freight and insurance. During transit, goods costing Rs. 1,000 were accidentally destroyed and a sum of Rs. 900 was realized from the Insurance Company.

Sai had instructions to sell the goods at such a rate so as to get 20% profit on the cost. He was entitled to an ordinary commission of 5% on total sales and 2% del credere commission on credit sales, for guaranteeing the collection of sale proceeds.

During the year ended 31St December 2005, the following information was gathered from the Account Sales sent by Sai :

(i) Total sales were Rs. 1,80,000, of which 50% were sold on credit and the remaining 50% were sold for cash.

(ii) Expenses amounted to Rs. 1,500 towards godown rent and advertisements.

(iii) Bad debts were Rs. 1,500.

You are required to :

(a) Prepare a Consignment Account in the books of Vithal.

(b) Pass Journal Entries in the books of Sai.