Name of the Organization : Commerce Teachers Foundation
Name Of The Exam : International Commerce Olympiad Accountancy Sample Paper
Document Type : Sample Question Paper
Subject : Accountancy
Year : 2016

Website : http://www.ctf.org.in/sample-papers
Download Model/Sample Question Papers : http://www.indianjobtalks.com/upload...ccountancy.pdf

ICO Accountancy Sample Question Paper :
Time Allowed : 3 Hours
Maximum Marks : 80

General Instructions :
(i) This question paper contains two parts: A and B.
(ii) Part A is compulsory for all candidates.
(iii) Part B has two options- Financial Statements Analysis & Computerized Accounting.
(iv) All parts of questions should be attempted at one place.
(v) Show your working clearly.

Part—A : (ACCOUNTING FOR PARTNERSHIP FIRMS &COMPANIES)
1. The partners of the firm M/s ABC, Mr. A and Mr. C guarantee the partner Mr. B a minimum profit of `25,000. The profit earned by the firm after all the necessary distribution is `60,000. The profit sharing ratio is 3:2:1. The guarantors will share the deficit in equal ratio. Calculate the deficit amount to be borne by A. (1)
2. In which account, profit on redemption of debenture is transferred and why? (1) 3. State the rate of interest which the company pays on calls - in advance if, it has not prepared its own Articles of Association? (1)
4. What will be the treatment for abnormal loss in the calculation of goodwill by average profits method? State with reason. (1)
5. In case of change in profit sharing ratio goodwill already appears in the books at `50,000. How will you treat this in the books of the company? (1)
6. Why does a company cannot show 'Reserve capital' in its balance sheet? (1)

7. X and Y are partners of a firm sharing in the ratio of 1:1. Partnership deed provided for the following adjustments:
(a) The trading profits during the year is `65,000
(b) Y to be given commission @10% on net profits before charging such commission
(c) X to receive salary of `1,000 p.m.
(d) Interest on loan to be provided at 10% p.a. Loan given by X of `10,000 on 1.10.2014
(e) Manager's Commission of `4,000 p.a. Show the distribution of profit for the year ending 31.03.2015. (3)

8. a) State any four purposes which are mentioned in Section 52 regarding treatment of securities premium in Companies Act 2013?
(b) A company forfeited 50 shares of `10 each issued at a premium of `2 per share, due to non-payment of final call of `3 per share. Out of these 30 shares were reissued at a discount of `2 per share. What amount, if any, will appear as 'Share Forfeited' in the balance sheet of the company? (2+1=3)

9. X Ltd. purchased its own 10% Debentures of the face value of `10,00,000 of `100 each, from the open market for investment purposes @ `95. But after sometimes, they decided to sell them @ `98 in the market. Record necessary journal entries to show these transactions. (3)
10. A and B share profits in the ratio of 3:2 has the following balances of capital: A: `50,000, B: `30,000. Reserve Fund is `25,000. They admit C as a partner who contributes `30,000 cash (Including capital and goodwill) for 1/6th share. Calculate the capital brought in by Mr C. Show your workings clearly. (3)

11. Deeksha Ltd purchased a machine from Maurya Ltd for `8,00,000. As per the terms, purchase consideration of `80,000 is to be paid by cheque and balance to be paid by issue of shares of `10 each. What entry should be passed if the shares are issued:
(a) At `8 paid up per share and
(b) At 20% premium 4

12. On 1st June,2012 Rancho Ltd issued `40,00,000, 8% Debentures of ` 10 each to be redeemed at 20% premium after 3 years. Pass necessary entries for Issue and Redemption of debentures. Also calculate the necessary amount to be transferred to Debenture Redemption Reserve and Debenture Redemption Investment along with specific dates as per the relevant guidelines and provisions (Entries for DRR and DRI not required). 4

13. Barbie and Ken are partners. The partnership deed provided inter alia as follows
(i) That the accounts be balanced 31st March each year.
(ii) That the profit be divided as follows: Barbie one- half; Ken one-third and one sixth carried to a Reserve account.
The profits for the last three years were: `45,000; `42,000; `48,000 respectively. Barbie died on 1st August, 2015. Prepare Barbie’s Capital Account