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The following information are available relating inventory management: Re-order period 4 6 days Maximum consumption 3600 units Re-order quantity 14400 units Re-order level 21600 units Minimum consumption 1200 units Required: Maximum stock level

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ACCOUNTANCY
HSEB TYPE QUESTION [SET A] Attempt all the queston:
1. What is Memorandum of association? [2] 2. Write any three characteristics of a Company. [3] 3. Named the parties who are interested in the financial statement. [3] 4. What are the limitations of Ratio Analysis? [2] 5. State three objectives of cost accounting. [3] 6. Differentiate between direct & indirect expenses. [2] 7. Give the specimen of purchase requisition. [3] 8. Mention three differences between time rate and piece rate. [2] 9. Rose Co. Ltd. was registered with an authorized capital of Rs. 10,00,000 divided into 10,000 shares of Rs. 100 each. The company issued 6,000 shares for public subscription at 10% premium. The amount was payable as Rs. 30 on application, Rs. 40 on allotment and balance on first and final call. The applications were received for 8,000 shares. The excess applications were rejected and refunded. Required: Journal entries for share application and allotment [2] 10. Surya Co. Ltd invited applications for 8,000 shares of Rs. 100 each payable as under: On application Rs. 20 On allotment Rs. 40 On first & final call Rs. 40 Applications were received for 16,000 shares. The allotment was made as follows: To the applicant of 4,000 Nil To the applicant of 4,000 Full To the applicant of 8000 50% It was decided to utilize excess application money in part payment of allotment. All money were duly received except a holder who applied for 200 shares and was given 100 shares failed to pay the allotment and call money. The board of director decided to forfeiture these share. Required: (a) Share Allotment, (b) Share first & final call, (c) Share forfeiture [6] 11. Gold Co. Ltd issued 15,000 shares of Rs. 10 each and cash Rs.60,000 to N. Co. Ltd purchasing the following assets and liabilities: Plant and Machine Rs.1,50,000 Debtors Rs. 50,000 Stock Rs. 50,000 Furniture Rs. 80,000 Creditors Rs. 40,000 Required: Journal entries for purchase of assets and liabilities [3] 12. K & K Co. Ltd issued 8,000, 10% debentures of Rs. 100 each at a premium 5% to be redeemable at the end of 10 year at a premium of 10% Required: Entries for (a) Issue of debenture [2]

19. Following receipts and issue of material were made during the month of April. Stock on 1st April was 500 units @ Rs. 20 each. DATE QUANTITY COST PER UNIT QUANTITY PURCHASED ISSUED April 3 200 nits April 5 800 units 21 April 8 400 units April 10 300 units April 15 500 units 22 April 18 500 units April 25 200 units 22 Issued are to be priced under lst in first out method. On 18th april a physical verification was made when the verifier notified that there is storage of 20 units in stock. Required: store ledger account [5] 20. The weekly working hour in a factory is 48 hours and a worker works 40 weeks, on an average, during a year. The wage rate per unit is Rs. 10 and production units per hour are 20. Required: Total wage of worker for a year under piece wage rate [2] 21. A food industry showed the following details of its production for the previous year: Direct materials 20,000 kgs of Rs 10 per kg Direct labour Rs.140,000 Factory overhead (based on direct labour) Rs.70,000 Administrative overhead (based on factory cost) Rs. 82,000 The industry wants to estimate the total cost and its selling price for next lot. The costing department estimated the direct cost as follows: i)he cost of materials Rs. 40,000 and direct labour Rs. 30,000 are required for the tender. ii) A profit of 20% on selling price isexpected. iii) The factory and administrative overhead will maintain the same relation as in the last year. Required: a) Cost sheet b) Tender price [5+5=10] 22. The net profit as per cost account is Rs. 30,000. On reconciliation of cost and financial account of a company the following differences are noticed: a) Work overhead under recovered in cost account Rs. 3,000 b) Bank interest credited in financial account Rs. 2,000 c) Value of opening stock cost account Rs. 50,000 and financial account Rs. 55,000. d) Provision for doubtful debt in financial account Rs. 1000 e) Loss of Rs. 2,000 on sale of old furniture was recorded in financial account. Required: Reconciliation statement [5]

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(b) Redemption of debenture 13. The trial balance of ABC Co. Ltd as on 31st December is given below: Debit Particulars Amount (Rs.) Credit Particulars Amount (Rs.) Land and Building 1,00,000 Sales 5,40,000 Salary 10,000 Purchase return 5,000 Wages 20,000 Share Capital 1,50,000 Preliminary expenses 20,000 Profit and loss app. a/c 60,000 Purchases 4,00,000 Interest on investment 5,000 Debtors 60,000 Provision for taxation 1,000 Prepaid Insurance 1,00,000 10% debenture 1,00,000 Tax paid for last year 5,000 Advertising 5,000 Opening Stock 50,000 Interest on debenture 5,000 Furniture 95,000 8,80,000 8,80,000 Additional Information: - Closing stock was Rs. 3,00,000 at the end of year. - Write off 20% of preliminary expenses - Insurance was expired to the extent of Rs. 2,000 - Appreciate land & building by Rs. 10,000 and depreciate furniture by 5% - Directors proposed 20% dividend on paid-up capital Required: (a) Trading a/c [2] (b) Profit and Loss a/c [4] (c) P/L appropriation a/c [2] (d) Balance Sheet [4] 15. The trial balance of C Co. Ltd as on 31st Chaitra is given below: Particulars Rs Particulars Rs Purchases 200,000 Share capital 200,000 Building 100,000 Loan 150,000 Salaries 30,000 Sales 350,000 Machinery 150,000 Creditors 50,000 Debtors 100,000 Cash 40,000 Rent 10,000 Investment 100,000 Wages 20,000 Total 750,000 Total 750,000 Additional information: a) Wages outstanding Rs. 4,000 b) Prepaid rent Rs. 1,000 c) Depreciate machinery by 10% d) Proposed dividend @ 10%. Required: i) Journal entries for adjustment ii) Work sheet 16. The balance sheet of A Co. Ltd as on Ashadh 31,2066 is given below: Liabilities Rs Assets Equity share capital 200,000 Fixed assets (Rs 100 each) 10% Debenture 100,000 Debtors General reserve 50,000 Inventory Rs 250,000 40,000 100,000

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Retain earning 20,000 Prepaid expenses 10,000 Creditors 30,000 Cash 30,000 Outstanding exp. 10,000 Preliminary exp. 10,000 Bills payable 30,000 Total 440,000 Total 440,000 Additional information: Cost of goods sold Rs. 400,000 and net profit after tax Rs. 40,000. Required: a) Current ratio b) Quick ratio c) Debt equity ratio d) Stock turnover ratio e) Earning per share [15=5] 16. The following figures are extracted from the two years balance sheet of a company: Items Last year (Rs) Current year (Rs) Current assets 140,000 170,000 Current liabilities 70,000 90,000 10% Debenture 100,000 80,000 Share Capital 70,000 100,000 -Fixed assets purchased in the current year were Rs. 25,000 and fund from operation is Rs. 25,000. Required: a) Schedule of change in working capital [2] b) Fund flow statement [3] 17. The income statement and other details of a company are as follows: Particular Rs Rs Sales 750,000 Less: Cost of goods sold 450,000 Gross profit 300,000 Less: Administrative expense 90,000 Depreciation on machinery 75,000 Interest on debenture 15,000 Premium on redemption of debenture 7,500 Provision for tax 75,000 262,500 Net income before sale of machine 37,500 Add: Profit on sale of machine 15,000 Profit after sale of machine 52,500 Other details: Items Previous Year (Rs) Debtors 120,000 Creditors 60,000 Outstanding salary 15,000 Inventory 75,000 8% debenture 225,000 Provision for tax 75,000 Machinery (net) 525,000 Investment 75,000 Share capital 700,000 Share premium 50,000 Bank balance 180,000 Additional information: - Plant costing Rs. 510,000 was purchased during the year. -Tax paid during the year Rs. 75,000. Required: Cash flow statement under direct method Current Year (Rs) 75,000 105,000 7,500 90,000 150,000 75,000 900,000 150,000 975,000 75,000 75,000

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