1. (a) Accounting cycle
(b) Quick ratio
(c) Forfeiture of shares
(d) Auditors report
(e) Cost concept
(f) P/V ratio
2. Bring out the accounting standards relating to depreciation and inventory.
3. How do you analyse profit and loss account?
4. State the accounting procedure for distributing dividend.
5. Discuss the practical applications of marginal costing.
6. Explain different methods of inflation accounting.
7. The comparative balance sheet of Doba Company showed the following changes in balance sheet items from 1991
to 1992.
Working capital 1,27,500 increase
Long-term investments 45,000 increase
2 (DEMB 4)
Land 48,000 increase
(Less accumulated depreciation) 90,000 increase
15% debenture 2,40,000 increase
Share capital 60,000 increase
Reserves and Surplus 10,500 decrease
The following additional data are provided :
(a) Net profit for the year was Rs.1,57,500.
(b) Accumulated depreciation for 1991 was Rs.67,500 and for 1992 Rs.90,000.
(c) A machine of Rs.1,12,500 was purchased during the year; depreciation expense for the year was Rs.
(d) A bonus issue of shares of Rs.60,000 was made during the year.
(e) A cash dividend of Rs.87,000 was declared and paid during the year.
Prepare a statement of changes in financial position for Doba Company.
8. From the under-mentioned details extracted from the books of Mr.Venkatramana prepare Trading and Profit
Loss Account and Balance Sheet as on 31st March, 1994.
Amount (Rs.)
Plant and Machinery 28,800
Stock on 1.4.1993 89,680
Sundry Creditors 59,630
Sundry Debtors
(including Bharat's dishonoured bill of Rs.1,000) 62,000
Cash in hand 3,030
Cast at Bank 18,970
Fixture & Fittings 8,970
Provision for doubtful debts 2,500
Bills receivable 9,500
3 (DEMB 4)
Amount (Rs.)
Travelling Expenses 1,880
Repair & renewals 3,370
Bad debts 3,620
Returns Inward 2,780
Sales 3,65,430
Manufacturing Wages 40,970
Purchases 2,65,590
Salaries 11,000
Rent & Taxes 5,620
Interest & Discount (Dr.) 5,620
Commission Received 5,870
(Including premium of Rs.300 p.a paid upto 30.9.94) 400
6% Loan Account (Cr.) 20,000
Venkatramana's Capital A/c 1,19,400
Venkatramana's Drawings A/c 10,550
Depreciate plant and machinery by 10% and fixture and fitting 5% p.a. Commission earned but not received
amounts to Rs.600/-. Manufacturing wages include Rs.1,200 for erection of new machinery purchased last year.
Charge interest on capital @ 6%. Interest on loan for the last two months is not paid. Stock in hand on 31st
March, 1994 was Rs.1,28,960. Write off half of Bharat's dishonoured bill. Create a provision of 5% on Sundry

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