CA Foundation Accounts RTP June 2024 Castudynotes Com
CA Foundation Accounts RTP June 2024 Castudynotes Com
CA Foundation Accounts RTP June 2024 Castudynotes Com
com
PAPER – 1:
ACCOUNTING
QUESTIONS
Rectification of Errors
(b) M/s. Beta Chemicals labs were unable to agree the Trial Balance as
on 31st March, 2023 and have raised a suspense account for the
difference. Next year the following errors were discovered:
(i) Repairs made during the year were wrongly debited to the
building A/c - ` 12,500.
(ii) The addition of the 'Freight' column in the purchase journal
was short by ` 15,000.
(iii) Goods to the value of ` 4,500 returned by a customer, Shiv &
Co., had been posted to the debit of Shiv & Co. and also to
sales returns.
(iv) Sundry items of furniture sold for ` 30,000 had been entered
in the sales book, the total of which had been posted to sales
account.
(v) A bill of exchange (received from Ms. Sapna) for ` 75,000 had
been returned by the bank as dishonoured and had been
credited to the bank and debited to bills receivable account.
You are required to pass journal entries to rectify the above
mistakes.
Bank Reconciliation Statement
5. On 31 December 2023, Bank Statement of Samar & Co. was showing a
favourable balance of `1,05,980. This did not agree with the balance in
the cash book. On scrutiny of the Cash Book and Bank Statement
following discrepancies were found:
(i) A deposit of 30,825 made on 29th December 2023 had not been
credited by the bank till 31 December 2023.
(ii) Cheques issued for `48,400 not presented for payment till 31
December 2023.
(iii) On 25th September 2023, the firm had entered into Hire Purchase
agreement to pay by bank order a sum of ` 25,000 on the 10th of
each month, commencing from October 2023. For this transaction
no entries had been made in cash book.
Additional Information:
(i) Stock of Raw materials and finished goods at the end of the year
was ` 5,00,000 and ` 4,37,500 respectively.
(ii) A provision for doubtful debts at 5% on Sundry Debtors.
(iii) Depreciate building by 10%, Plant and machinery by 15% and
Furniture and fixtures by 10%,
(iv) One month Factory rent is outstanding.
(v) Interest has accrued on investment and rate of interest is 10% p.a.
(vi) Interest on loan from Mr. Sahil is payable @ 12% per annum. The
loan was taken on 01.10.2023.
You are required to prepare Manufacturing Account, Trading Account,
Profit and Loss Account and Balance sheet for the year ended
31 March,2024.
Accounts from Incomplete records
10. Ankur keeps his books of accounts by single entry system. However, he
is able to give you the following lists of his assets and liabilities in the
beginning as well as at the end of the year ended 31st March, 2024:
Liabilities ` Assets `
Capital Account: Land and Building 90,000
Mr. X 60,000 Plant and Machinery 60,000
Mr. Y 90,000 Stock of goods 36,000
Mr. Z 60,000 Sundry debtors 33,000
Sundry Creditors 30,000 Cash and Bank Balances 21,000
2,40,000 2,40,000
On 1st April, 2023, X desired to retire from the firm and remaining
partners decided to carry on the business. It was agreed to revalue the
assets and liabilities on that date on the following basis:
(i) Land and Building be appreciated by 20%.
(ii) Plant and Machinery be depreciated by 30%.
(iii) Stock of goods to be valued at ` 30,000.
(iv) Old credit balances of Sundry creditors, ` 6,000 to be written back.
(v) Provisions for bad debts should be provided at 5%.
(vi) Joint life policy of the partners surrendered and cash obtained
` 22,650.
(vii) Goodwill of the entire firm is valued at ` 42,000 and X’s share of
the goodwill is adjusted in the A/cs of Y and Z, who would share
the future profits equally. No goodwill account being raised.
(viii) The total capital of the firm is to be the same as before retirement.
Individual capital is in their profit sharing ratio.
(ix) Amount due to Mr. X is to be settled on the following basis:
50% on retirement and the balance 50% within one year.
Prepare (a) Revaluation account, (b) The Capital accounts of the
partners, (c) Cash account and (d) Balance Sheet of the new firm M/s Y &
Z as on 1.04.2023.
Dissolution of Partnership
12. Seema, Meena & Tina are partners sharing profits and losses in the ratio
of 5:3:2. There capitals were ` 13,440, ` 8,400, ` 11,760 respectively.
Liabilities and assets of the firm are as under:
Liabilities: `
Trade creditors 2,800
Loan from partners 1,400
Assets: `
Patent 1,400
Furniture 2,800
Machinery 1,680
Stock 5,600
The assets realized in full in the order in which they are listed above.
Meena is insolvent.
You are required to prepare a statement showing the distribution of
cash as and when available, applying maximum possible loss procedure.
Financial Statements of Not for Profit Organizations
13. Hilfiger Sports club gives the following Receipts and Payments account
for the year ended March 31,2023:
Receipts ` Payments `
To Opening cash and By Salaries
1,04,000 3,00,000
bank balances
To Subscription 6,96,000 By Rent and taxes 1,08,000
To Donations 2,00,000 By Electricity charges 12,000
To Interest on By Sports goods
24,000 40,000
investments
To Sundry receipts 6,000 By Library books 2,00,000
By Newspapers and
21,600
periodicals
By Miscellaneous
1,08,000
expenses
By Closing cash and
2,40,400
bank balances
10,30,000 10,30,000
Liabilities As on As on
31.3.2022 (`) 31.3.2023 (`)
Outstanding expense:
Salaries 20,000 40,000
Newspapers and periodicals 8,000 10,000
Rent and taxes 12,000 12,000
Electricity charges 16,000 20,000
Library Books 2,00,000 -
Sports goods 1,60,000 -
Furniture and fixtures 2,00,000 -
Subscription receivable 1,00,000 2,40,000
Investment government securities 10,00,000 -
Accrued interest 12,000 12,000
Debentures
15. On 1st April 2023, Sapan Ltd. (an unlisted NBFC) took over assets of
` 9,00,000 and liabilities of 1,20,000 of Plus Herbs Ltd. for the purchase
consideration of ` 8,80,000. It paid the purchase consideration by
issuing 8% debenture of ` 100 each at 10% premium on same date.
Sapan Ltd. issued another 3000, 8% debenture of ` 100 at discount of
10% redeemable at premium of 5 % after 5 years. According to the
terms of the issue ` 30 is payable on application and the balance on the
allotment on debentures. It has been decided to write off the entire loss
on issue of discount in the current year itself.
You are required to pass the journal entries in the books of Sapan Ltd.
for the financial year 2023-24.
Bonus Issue and Right Issue
16. Following are the balances appear in the trial balance of XYZ Ltd. as at
31st March, 2023.
Issued and Subscribed Capital:
`
10,000; 10% Preference Shares of ` 10 each fully paid 1,00,000
1,00,000 Equity Shares of ` 10 each ` 8 paid up 8,00,000
Reserves and Surplus:
General Reserve 2,40,000
Securities Premium (collected in cash) 25,000
Profit and Loss Account 1,20,000
On 1st April, 2023 the company has made final call @ ` 2 each on
1,00,000 Equity Shares. The call money was received by 15 th April, 2023.
Thereafter the company decided to issue bonus shares to equity
shareholders at the rate of 1 share for every 5 shares held and for this
purpose, it decided that there should be minimum reduction in free
reserves. Pass Journal entries.
SUGGESTED ANSWERS/HINTS
To Sales 22,500
To Output CGST A/c 1,350
To Output SGST A/c 1,350
(Being goods sold at a
profit of 25% and trade
discount of 10% CGST and
SGST at 6% each)
April,10 Purchases A/c Dr. 8,000
Input CGST A/c Dr. 480
Input SGST A/c Dr. 480
To Trends Industries 8,960
(Being goods purchased
and CGST and SGST
payable at 6% each)
April,16 Cash A/c Dr. 5,800
Discount Allowed A/c Dr. 200
To Amar Singh 6,000
(Being cash received form
Amar Singh after allowing
him discount of ` 200)
April,19 Charity A/c Dr. 896
To Purchases A/c 800
To Input CGST A/c 48
To Input SGST A/c 48
(Being goods given as
charity, input CGST and
input SGST debited at the
time of purchases
reversed)
Note: Cash sale, sale of furniture and sale of typewriter are not
entered in Sales Book.
(b) Rectification entries in the books of M/s Beta Chemicals labs
7. Buses A/c
To Profit &
Loss A/c -
Oct- Oct- By Depreciation
Profit on 3,75,000 3,75,000
01 01 on lost assets
settlement of
Truck (W. Note
1)
Oct- Dec- By Depreciation
To Bank A/c 30,00,000 46,50,000
01 31 A/c (W Note 3)
Dec-
By balance c/d 1,41,00,000
31
2,08,75,000 2,08,75,000
2023 2023
Jan- Dec- By Depreciation
To balance b/d 1,41,00,000 51,00,000
01 31 A/c (W Note 3)
Dec-
By balance c/d 90,00,000
31
1,41,00,000 1,41,00,000
Working Note:
1. Profit on settlement of Bus
Amount
WDV of 1 Bus as on 31.12.2021 (Refer W.N 1) 17,50,000
WDV of 10 Bus as on 01.01.2022 1,75,00,000
Amount
Depreciation for 2022
On 9 Buses (` 25,00,000 x 9 x 20%) 45,00,000
On new Buses (` 30,00,000 x 1 x 20% x 3/12) 1,50,000
46,50,000
Depreciation for 2023
On 9 Buses (` 25,00,000 x 9 x 20%) 45,00,000
On new Buses (Rs 30,00,000 x 1 x 20%) 6,00,000
51,00,000
Particulars ` Particulars ` `
To Opening Stock of By Sales 44,20,000
Finished goods 4,25,000 Less: Sales 55,000 43,65,000
Return
To Cost of goods By Closing 4,37,500
transferred from Stock
Profit and Loss Account for the year ended 31 st March 2024
Particulars ` ` Particulars `
To Carriage Outward 25,000 By Gross Profit 8,13,500
b/d
To General expenses 39,000 By Accrued 25,000
Interest
To Salaries 90,000
To Interest Paid to 90,000
bank
To Interest to 24,000
Mr. Sahil
To Provision for Bad
&
Doubtful Debts 18,750
Add: Bad Debts 15,000
Less: Old Provision
for
Doubtful Debts 25,000 8,750
To Depreciation 72,500
(60,000+12500)
To Net Profit c/d 4,89,250
8,38,500 8,38,500
Working Note 1
Statement of Affairs as on 1 st April, 2023
` `
Creditors 45,000 Cash in Hand 1,750
Bills Payable 5,000 Cash at Bank 20,000
Capital (bal. fig.) 2,05,250 Bills Receivable 15,000
Stock 93,500
Debtors 60,000
Furniture and Fittings 65,000
2,55,250 2,55,250
Working Note 2
Statement of Affairs as on 31 st March, 2024
Liabilities ` Assets ` `
Creditors 31,000 Cash in Hand 1,400
Bank Overdraft 1,800 Bills Receivable 25,000
Capital (bal. fig.) 2,17,300 Stock 98,700
Debtors 70,000
Less: Provision for
doubtful debts (3,500) 66,500
Furniture and fittings 65,000
Less: Depreciation (6,500) 58,500
2,50,100 2,50,100
11. (a) Revaluation Account
Date Particulars ` Date Particulars `
2023 2023
April To Plant & Machinery April By Land and
18,000 18,000
building
To Stock of goods By Sundry
6,000 6,000
creditors
To Provision for bad and By Cash & Bank -
1650 22,650
doubtful debts Joint life Policy
surrendered
To Capital accounts
(profit on revaluation
transferred)
Mr. X (2/7) 6,000
Mr. Y (3/7) 9,000
Mr. Z (2/7) 6,000 21,000
46,650 46,650
surrender value of
joint life policy
To Y’s Capital A/c 9,000
To Z’s Capital A/c 48,000
1,00,650 1,00,650
Working Notes:
Amounts at credit
and cash paid (4) 280 504 4,816 5,600
Balances in capital 13,160 7,896 5,264 26,320
accounts left
unpaid—
Loss (3 – 4) = (5)
Liabilities ` ` `
Capital fund (bal. 17,20,000 Library books 2,00,000
fig)
Outstanding Sports goods 1,60,000
expenses:
Salaries 20,000 Furniture and 2,00,000
Newspapers and Fixtures
Periodicals 8,000 Subscriptions 1,00,000
Electricity charges 16,000 Receivable
Rent and taxes 12,000 56,000 Investment Govt 10,00,000
Securities
Accrued interest 12,000
Cash in Bank 1,04,000
balances
17,76,000 17,76,000
Expenditure ` Income `
To Salaries 3,20,000 By Subscription 8,36,000
To Electricity charges 16,000 (W.N.1)
To Rent and taxes 1,08,000 By Interest on 24,000
To Newspapers and 23,600 Investments (W.N.2)
Working Notes:
(1) Subscriptions for the year ended 31 st March,2023:
`
Subscription received during the year 6,96,000
Add: Subscriptions receivable on 31.3.2023 2,40,000
9,36,000
Less: Subscriptions receivable on 31.3.2022 (1,00,000)
8,36,000
14.
Working Note:
Calculation of shares applied by Kamal:
Total Shares Applied =24,000 , Share Allotted = 20,000
share applied by Kamal=400 shares *24,000/20,000=480 shares.
Allotment money due to Kamal = 400*5=2,000
Adjustment of excess money of application =80*2=160
Allotment Money Received by Company:
Allotment money due =20,000* 5 = 1,00,000
Adjustment of excess money of application (4,000*2) (8,000)
Arrear of Allotment money of Kamal (1,840)
Allotment Money Received 90,160
15. Journal Entries
Dr. Cr.
2023 ` `
April 1 Equity Share Final Call A/c Dr. 2,00,000
To Equity Share Capital A/c 2,00,000
(Final call of ` 2 per share on
1,00,000 equity shares due as per
Board’s Resolution dated....)