2 Foundation FT 2 (Unsolved) (18!06!2024) (Final)
2 Foundation FT 2 (Unsolved) (18!06!2024) (Final)
2 Foundation FT 2 (Unsolved) (18!06!2024) (Final)
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PIC/FOUNDATION/JUNE-24/FT-2
ROLL NO.……………………. Attempt - JUNE -2024
Total No. of Questions-6 Maximum Marks - 100
Time Allowed – 3 Hours
CA-FOUNDATION
PAPER-1
ACCOUNTING
Q1(A). State with reasons whether the following statements are True or False.
[6Parts ⨯2 Marks =12 Marks]
(i) Receipts and Payments Account highlights total income and expenditure.
[MTP]
(ii) Discount at the time of retirement of a bill is a gain for the drawee. [MTP]
(iii) Limited Liability Partnership (LLP) is governed by Indian Partnership Act. 1932.
[MTP]
(iv) Amount paid to Management company for consultancy to reduce the working expenses is capital
expenditure if the reduced working expenses will generate long term benefits to the entity.
[MTP, RTP]
(v) [SM] All India Financial Institutions (AIFIs) regulated by Reserve Bank of India and Banking Companies
for both public as well as privately placed debentures need not create any Debenture Redemption
Reserve (DRR).
(vi) [SM] Total of sales return book may be posted to the debit side of sales account.
1. A cheque for Rs. 52,56,000 deposited on 29th September, 2023 was credited by the bank only on 3rd
October, 2023.
2. A payment by cheque for Rs. 64,000 has been entered twice in the Cash Book.
3. On 29th September, 2023, the bank credited an amount of Rs. 4,69,000 received from a customer of
Akhil, but the advice was not received by Akhil until 1st October, 2023.
4. Bank charges amounting to Rs. 2,320 had not been entered in the Cash Book.
5. On 6th September, 2023, the bank credited Rs. 80,000 to Akhil in error.
6. A bill of exchange for Rs. 5,60,000 was discounted by Akhil with his bank. This bill was dishonored on
28th September, 2023 but no entry had been made in the books of Akhil.
7. Cheques issued upto 30th September, 2023 but not presented for payment upto that date totaled Rs.
53,04,000. [MTP][M-8]
Q3. (A) Anirudh and Associates purchased an old Machinery for Rs. 74,000 on 1st January, 2017 and spent
Rs. 6,000 on its overhauling. On 1st July 2018, another machine was purchased for Rs. 20,000. On 1st July 2019,
the machinery which was purchased on 1st January 2017, was sold for Rs. 56,000 and the same day a new
machinery costing Rs. 50,000 was purchased. On 1st July, 2020, the machine which was purchased on 1st July,
2018 was sold for Rs. 4,000.
Depreciation is charged @ 10% per annum on straight line method. The firm changed the method and adopted
diminishing balance method with effect from 1st January, 2018 and the rate was increased to 15% per annum.
The books are closed on 31st December every year.
Prepare Machinery account for four years from 1st January, 2017. [MTP][M-10]
(B). Ram carried on business as retain merchant. He has not maintained regular account books.
However, he always maintained Rs. 10,000 in cash and deposited the balance into the bank account. He
informs you that he has sold goods at profit of 25% on sales.
Following information is given to you:
Assets and Liabilities As on 01-04-2023 As on 31-03-2024
Cash in Hand 10,000 10,000
Sundry Creditors 40,000 90,000
Cash at Bank 50,000 (Cr.) 80,000 (Dr.)
Sundry Debtors 1,00,000 3,50,000
Stock in Trade 2,80,000 ?
Analysis of his bank pass book reveals the following information:
(a) Payment to creditors Rs. 7,00,000.
(b) Payment for business expenses Rs. 1,20,000.
(c) Receipts from debtors Rs. 7,50,000.
(d) Loan from Laxman Rs. 1,00,000 taken on 01.10.2023 at 10% per annum.
(e) Cash deposited in the bank Rs. 1,00,000.
He informs you that he paid creditors for goods Rs. 20,000 in cash and salaries Rs. 40,0 00 in cash. He has
drawn Rs. 80,000 in cash for personal expenses. During the year Ram had not introduced any additional
capital. Surplus cash if any, to be taken as cash sales.
Q4. (A). The Balance Sheet of a Partnership Firm M/s Alpha and Associates consisted of two partners X
and Y who were sharing Profits and Losses in the ratio of 5:3 respectively. The position as on 31-03-2024 was
as follows:
Liabilities Rs. Assets Rs.
X’s Capital 4,10,000 Land & Building 3,80,000
Y’s Capital 3,30,000 Plant & Machinery 1,70,000
Profit & Loss A/c 1,12,000 Furniture 1,09,480
Trade Creditors 54,800 Stock 1,45,260
Sundry Debtors 60,000
Cash at Bank 42,060
9,06,800 9,06,800
On the above date, Z was admitted as a partner on the following terms:
(a) Z should get 1/5th of share of profits.
(b) Z brought Rs. 2,40,000 as his capital and Rs. 32,000 for his share of Goodwill.
(c) Plant and Machinery would be depreciated by 15% and Land & Buildings would be appreciated by 40%.
A provision for doubtful debts to be created at 5% on sundry debtors.
An unrecorded liability of Rs. 6,000 for repairs to Buildings would be recorded in the books of accounts.
(d) Immediately after Z’s admission, Goodwill brought by him would be adjusted among old partners.
Thereafter, the capital accounts of old partners would be adjusted through the current accounts of
partners in such a manner that the capital accounts of all the partners would be in their profit sharing
ratio.
Prepare Revaluation A/c, Capital Accounts of the partners, New Profit sharing ration and Balance Sheet of
the Firm after the admission of Z. [MTP][M-10]
(B). The following information of M/s. Zara Club are related for the year ended 31st March, 2024:
(1)
Balances As on 01-04-2023 As on 31-03-
(Rs.) 2024 (Rs.)
Stock of Sports Material 6,75,000 10,12,500
Amount due for Sports Material 6,07,500 8,77,500
Subscription due 1,01,250 1,48,500
Subscription received in advance 81,000 47,250
(B). Attempt any ONE out of the two Sub Parts i.e. either (i) or (ii).
(i) Galaxy Limited issued 10,000 8% Debentures of the nominal value of Rs.1,00,00,000 as follows:
(a) To sundry persons for cash at 90% of nominal value of Rs. 25,00,000.
(b) To a vendor for purchase of fixed assets worth Rs. 10,00,000 – Rs. 12,50,000 nominal value.
(c) To the banker as collateral security for a loan of Rs. 10,00,000 – Rs. 12,50,000 nominal value.
You are required to prepare necessary Journal Entries. [MTP][M-5]
OR
(ii) [SM]Ganesh commenced business on 1st April, 2017 with Rs.2,000 as capital. He had the following
cash transactions in the month of April 2017:
Rs. Rs.
April 1 Purchased furniture April 7 Paid for petty expenses 15
and paid cash 250 “ 8 Cash purchases 150
“2 Purchased goods 500
“4 Sold goods for cash 950
“ 13 Paid for labour 1,000
“5 Paid cash to Ram Mohan 560
He allowed discount 10 “ “ Paid Ali & Sons 400
“6 Received cash from They allowed discount 8
Krishna & Co. 600 “ “
Allowed discount 20
Make out the two-column Cash Book (Cash and discount column) for the month of April, 2017. [M-5]
Q6. (A) Avent Limited is a company with an authorized share capital of Rs. 1,00,0,000 in equity shares of Rs.
10 each, of which 6,00,000 shares had been issued and fully paid up on 31st March, 2023. The company
proposes to make a further issue of 1,35,000 of these Rs. 10 shares at a price of Rs. 14 each, the arrangement of
payment being.
(i) Rs. 2 per share payable on application, to be received by 31st May, 2023;
(ii) Allotment to be made on 10th June, 2023 and a further Rs. 5 per share (including the premium to be
payable);
(iii) The final call for the balance to be made, and the money received by 31st December, 2023.
Applications were received for 5,60,000 shares and dealt with as follows:
(1) Applicants for 10,000 shares received allotment in full;
(2) Applicants for 50,000 shares received allotment of 1 share for every 2 applied for; no money was
returned to these applicants, the surplus on application being used to reduce the amount due on
allotment;
(3) Applicants for 5,00,000 shares ‘received on allotment of 1 share for every 5 shares applied for; the
money due on allotment was retained by the company, the excess being returned to the applicants; and
(4) The money due on final call was received on the due date.
You are required to record these transactions (including bank transactions) in the Journal Book of Avent
Limited. [MTP][M-15]
(B) Discuss the factors taken into consideration for calculation of depreciation.
[MTP][M-5]
OR
(B) Write short notes on Accommodation bill and Removal of bill. [MTP][M-5]
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