NEB-Grade- XII Principles of Accounting- II Question-2076 (2019)

NEB- Grade XII

2076 (2019)

Principles of Accounting- II

Time: 3hrs                                                                           Full Marks: 100

1.    Mention any three characteristics of the company. 3

2.    Write in brief about memorandum of association. 2

3.    State any three limitations of financial statement analysis. 3

4.    Write the meaning of working capital. 2

5.    Clarify the meaning of cost accounting stating its any two objectives. 3

6.    Classify cost on the basis of element. 2

7.    State any two differences between time wage system and piece wage system. 2

8.    State any three objectives of stores control. 3

9.    The following information is provided the shares:

20, 000 applicants were received on the issued of 10, 0000 ordinary shares of Rs. 100 each at a premium of 10%.

The shares were issued payable as under:

-       On application: Rs 30 per share

-       On allotment: Rs. 40 per share

-       On first and final call: Rs. 4o per share

-       Allotment was made as under:

4, 000 Applicants: Full

4,000 Applicants: Nil

12,000 Applicants: 6,000

All calls are made and duly received. On allotment a shareholder holding 500 shares paid the full value of shares.

Required: Journal entries for application, allotment and final call - 6

10. A company forfeited 200 shares of Rs. 100 each of a shareholder for non- payment of final call of Rs. 40 per share. Of the forfeited share, 100 shares were issued at Rs. 80 per share. 3

11. D co. Ltd. accepted the following assets and liabilities of P co. Ltd:

Furniture: Rs 50. 000

Machinery: Rs 60, 000

Sundry Creditors: Rs. 30,000

Bills Receivable: Rs. 15,000

Sundry Debtors: Rs. 15, 000

Inventories: Rs. 25,000

D company paid the purchase price of Rs. 1, 80, 000 by issuing shares of Rs. 100 each at a discount of 10%.

Required: Entries for purchase of business - 3

12. A company Ltd. issued 8,000, 10% debentures at a discount of 10% and redeemable after 5 years at a premium of 5%.

Required: Entries for issue and redemption of debentures- 4

13. The trial balance of a limited company as on 31^st Chaitra, 2017 is given below:

Particulars	Dr. (Rs)	Cr. (Rs)
Purchase	2,25,000
Furniture	1,00,000
Debtors	50,000
Wages	20,000
General Expenses	45,000
Cash	10,000
Sales		3,50,000
Share Capital		50,000
Creditor		20,000
Profit and Loss Account		30,000
Total	4,50,000	4,50,000

Additional Information:

-       5% depreciation to be charged on furniture

-       Prepaid wage: Rs. 6,000

-       General expenses payable: Rs. 5,000

-       Proposed dividend 20% on share capital

Required: 2+6

i.              Adjusting entries   

ii.            Work sheet

14. The following trial balance of ABC company for the year ending 31^st December, 2017 is given:

Debit	Rs	Credit	Rs
Opening stock	50,000	Share Capital	8, 00, 000
Purchases	2,00, 000	Debentures	2,00,000
Land and Building	15,00,000	Sales	15,10,000
Plant and Machine	5,00,000	Reserve for bad debt	15,000q
Carriage Inwards	30,000	Creditors	55,000
Salaries	1, 50, 000	General Reserves	45,000
Wages	35,000	Purchases Return	5,000
Bank Balance	15,000	Profit and Loss Account	1,55,000
Debtor	50,000
Investment	2,00,000
Stationeries	45,000
Discount	5,000
Rent	25,000
Sales Return	10,000
Insurance	20,000
Total	28,35, 000	Total	28,35,000

Additional Information: 

-       Closing stock: Rs. 80,000

-       Bad debt written off on debtor: @ 5%

-       Outstanding salaries: Rs. 30,000

-       Unearned commission: Rs 10, 000

-       Proposed dividend: @10%

Required: 3+4+1+4

i.              Trading Account

ii.            Profit and Loss Account

iii.           Profit and Loss Appropriation Account

iv.           Balance Sheet

15. Following information is given:

Debtors: Rs 40, 000

Creditors: Rs 80, 000

Debtors turnover ratio: 10 times

Cash balance: Rs. 24, 000

Closing stock: Rs. 96,000

Gross profit: Rs. 80, 000

Net profit: Rs 50,000

Required: 5

i.              Current Ratio

ii.            Quick Ratio

iii.           Sales Amount

iv.           Gross Profit Ratio

v.            Net Profit Ratio

16. The following information is provided:

Patent written off: Rs 10,000

Purchase of fixed assets: Rs. 2,00,000

Sales of fixed assets: Rs 15,000

Depreciation on fixed assets: Rs. 90,000

Issue of share capital: Rs. 2,00,000

Net profit of the year: Rs. 1,80,000

Profit on sale of fixed assets: Rs. 6,000

Required: 3+2

i.              Funds from operation

ii.            Funds Flow Statement

17. The main transaction of a limited company for this year are as under:

Particulars	Rs
Sales revenue	9, 60,000
Cost of sales	5,80,000
Operation expenses	2,40,000
Purchase of fixed assets	85,000
Sale of fixed assets	80,000
Tax paid	12,000

The closing balance of different assets and liabilities are as under: (in Rs)

Assets and Liabilities	Last Year	Current Year
Fixed Assets	2,40,000	1,56,000
Stock	1,08,000	1,28,000
Debtors	96,000	1,20,000
Cash	60,000	?
Share Capital	1,20,000	2,40,000
Creditors	96,000	1,20,00
Salaries Outstanding	32,000	40,000

Required: Cash Flow Statement- 10

18. The stores transactions for the last month are as under:

Date	Particulars	Units
1	Opening stock @Rs.50each	1,500
5	Purchases @ Rs. 55 each	2,000
10	Issued	1,600
20	Purchased @ Rs. 60 each	1,200
25	Issued	16,00
28	Returned from factory	100
30	Shortage on stock verification	20

Required: Stores ledger under First- in First -out Method- 5

19. Following details are available:

Re-order level: 6,000 units

Minimum consumption: 400 units

Re-order period: 10 to 30 days

Maximum stock level: 10,000 units

Required: Re- order quantity- 2

20. The following information is given:

Normal wages rate per hour: Rs. 200

Normal time per unit: 30 minutes

Output produced by a worker: 40 units

Required:  Wages of a worker by using piece rate system – 2

21. The information regarding the cost records of the last month is as under:

Direct materials consumption – Rs. 2,50,000

Direct labour cost- Rs 2, 50,000

Factory overhead- Rs. 3,00,000

Office overhead- Rs.2,00,000

Overheads are to be allocated as under:

-       Factory overhead: on the basis of direct labour cost

-       Administrative overhead: on the basis of factory cost

Following costs estimation were made for submitting the tender:

Direct material: Rs 1, 25, 000

Direct labour: Rs. 80,000

Profit: 20% of sales

Required: Cost showing: - 3+7

i.              Cost sheet of last month

ii.            Tender sheet

22. On reconciliation of Financial and Cost Accounting, following information was disclosed:

i.              Profit shown by Cost Account Rs. 80,000.

ii.            Works overhead under recovered in Cost Account Rs. 5,000.

iii.           Office overhead under recovered in Financial Account Rs. 10, 000.

iv.           Depreciation under charge in Cost Account

v.            A profit on sale of fixed assets was shown on Financial Account Rs. 5,000.

Required: Reconciliation of Cost and Financial Account- 5

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