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Board Paper of Class 12-Commerce 2011 Accountancy All India(SET 2) - Solutions

General Instructions:
(i) This question paper contains three parts A, B and C.
(ii) Part A is compulsory for all candidates.
(iii) Candidates can attempt only one part of the remaining parts B and C.
(iv) All parts of the questions should be attempted at one place.
(v) Questions Nos. 1-5 and 17-19 carries 1 mark each. 
(vi) Questions Nos. 6-8 and 20 carries 3 marks each. 
(vii) Questions Nos. 9-11 and 21-22 carries 4 marks each. 
(viii) Questions Nos. 12-14 and 23 carries 6 marks each. 
(ix) Questions Nos. 15-16 carries 8 marks each.
  • Question 1

    What is the basis of preparing Receipt and Payment Account?

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  • Question 2

    Give the average period in months for charging interest on drawings for the same amount withdraws at the beginning of each quarter.

     

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  • Question 3

    State the meaning of sacrificing ratio.

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  • Question 4

    How does the nature of business affect the value of goodwill of a firm?

     

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  • Question 5

    Give the meaning of ‘Issue of Debentures as a collateral security.

     

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  • Question 6

    From the following information of a club, show the amounts of Prize awarded and Price Fund in the Financial Statements of the club for the year ended on 31st March 2009 and 31st March 2010:

    Fixed Assets Account

    Dr.

     

     

    Cr.

    Particulars

    Amount

    Rs

    Particulars

    Amount

    Rs

    Balance b/d

    93,400

    Depreciation

    20,000

    Bank A/c (Purchases) [Bal. Fig.]

    92,600

    Balance c/d

    1,66,000

     

    1,86,000

     

    1,86,000

     

     

     

     

     

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  • Question 7

    Goodluck Ltd. purchased machinery costing Rs 10,00,000 from Fair Deals Ltd. The company paid the price by issue of Equity shares of Rs 10 each at a premium of 25%. Pass necessary journal entries for the above transaction in the books of Goodluck Ltd.

     

     

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  • Question 8

    X Ltd. redeemed 1,000 6% Debentures of Rs 100 each by converting them into equity shares of Rs 100 each. The 6% Debentures were redeemable at a premium of 5% for which the Equity shares were issued as a premium of 25%. Pass the necessary journal entries for the redemption of the above mentioned debentures in the books of X Ltd.

     

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  • Question 9

    A and B entered into partnership of 1st April 2009 without any partnership deed. They introduced capitals of Rs 5,00,000 and Rs

    3,00,000 respectively. On 31st October 2009, A advanced Rs 2,00,000 by way of loan to the firm without any agreement as to interest.

    The Profit and Loss Account for the year ended 31.3.2010 showed a profit of Rs 4,30,000 by the partners could not agree upon the amount of interest on loan to be charged and the basis of division of profits. Pass a journal entry for the distribution of the profit between the partners and prepare the Capital A/cs of both the partners and Loan A/c of ‘A’.

     

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  • Question 10

    A Partnership firm earned net profits during the last three years as follows:

    Years

    Net Profit

    Rs

    2007-2008

    1,90,000

    2008-2009

    2,20,000

    2009-2010

    2,50,000

    The capital employed in the firm throughout the above mentioned period has been Rs 4,00,000. Having regard to the risk involved,

    15% is considered to be a fair return on the capital. The remuneration of all the partners during this period is estimated to be Rs

    1,00,000 per annum.

    Calculate the value of goodwill on the basis of (i) two year’s purchased of super profits earned on a average basis during the above mentioned three years and (ii) by capitalization method.

     

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  • Question 11

    Pass the necessary journal entries for the issue and redemption of Debentures in the following cases:

    (i) 15,000, 9% Debentures of Rs 250 each issued at 5% premium, repayable at 15% premium.

    (ii) 2,00,000, 12% Debentures of Rs 10 each issued at 8% premium, repayable at par.

     

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  • Question 12

    From the following items of Receipt and Payment A/c of Jai Hind Club, prepare an Income and Expenditure Account for the year ended 31.3.2010:

    Particulars

    Rs

    Salaries Paid

    60,000

    Lighting Expenses

    6,000

    Stationery (Including Rs 500 for the previous year)

    3,900

    Subscription Received (Including Rs 1,000 received in

     

    advance and Rs 1,500 for the previous year)

    49,000

    Net Proceeds of Refreshment Room

    32,400

    Miscellaneous Expenses

    3,150

    Interest paid on loan for three months

    3,000

    Lockers Rent Received

    3,600

    Additional Information:

    Subscriptions in arrears on 31.3.2010 were Rs 2,750 and nine months interest on loan was also outstanding.

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  • Question 13

    Pass the necessary journal entries for the following transaction on the dissolution of the firm of Sudha and Shiva after the various assets (other than cash) and outside liabilities have been transferred to Realisation Account:

    (i) Sudha agreed to pay off her husband’s loan Rs 19,000.

    (ii) A debtor whose debt of Rs 9,000 was written off in the books paid Rs 7,500 in full settlement.

    (iii) Shiva took over all investment at Rs 13,300.

    (iv) Sundry Creditors Rs 10,000 were paid at 9% discount.

    (v) Realisation expenses Rs 3,400 were paid by Sudha for which she was allowed Rs 3,000.

    (vi) Loss on realization Rs 9,400 was divided between Sudha and Shiva in 3 : 2 ratio.

     

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  • Question 14

    On 1.1.2007 a Public Limited Company issued 25,000, 10% Debentures of Rs 100 each at par which were repayable at a Premium of

    10% on 31.12.2011. On the date of maturity, the company decided to redeem the above mentioned 10% Debentures as per the terms of issue, out of profit. The Profit & Loss A/c shows a credit balance of Rs 30,00,000 on this date. The offer was accepted by all the Debentures holders and all the Debentures were redeemed.

    Pass the necessary journal entries in the books of the Company only for the redemption of Debentures, if the company follows Sec.

    117 C of the Companies Act.

     

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  • Question 15

    Dinesh Ltd. invited application for issuing 10,000 Equity shares of Rs 10 each. The amount was payable as follows:

    On Application Rs 1

    On Allotment Rs 2

    On First call Rs 3

    On Second and Final Call − Balance

    The issue was fully subscribed. Ram to whom 100 shares were allotted, failed to pay the allotment money and his shares were forfeited immediately after allotment. Shyam to whom 150 shares were allotted failed to pay the first call. His share were also forfeited after the first call. Afterwards the second and final call was made. Mohan to whom 50 shares were allotted failed to pay the second and final call. His shares were also forfeited. All the forfeited shares were re-issued at Rs 9 per share fully paid up. Pass necessary Journal entries in the books of Dinesh Ltd.

     

    OR

     

    Moti Ltd. invited application for issuing 10,00,000 Equity shares of Rs 10 each at a premium of Rs 2 per share. The amount was payable as follows:

    On Application Rs 5 (Including premium)

    On Allotment Rs 4

    On First and Final Call Rs 3

    Application for 15,00,000 share were received. Application for 3,00,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Excess application money was utilized towards sums due on allotment. Giri who had applied for 24,000 shares failed to pay the allotment and call money. His shares were forfeited. Out of the forfeited shares 10,000 shares were reissued for Rs 8 per share fully paid up. Pass necessary journal entries in the books of Moti Ltd.

     

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  • Question 16

    X, Y and Z were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31.3.2010 their Balance Sheet was as follows:

    Liabilities

    Amount

    Rs

    Assets

    Amount

    Rs

    Capital Accounts:

     

    Building

    50,000

    X

    75,000

     

    Patents

    15,000

    Y

    62,000

     

    Machinery

    75,000

    Z

    37,500

    1,75,000

    Stock

    37,500

    Sundry Creditors

    42,500

    Debtors

    20,000

     

     

    Cash at Bank

    20,000

     

    2,17,500

     

    2,17,500

     

     

     

     

    Z died on 31.7.2010. It was agreed that:

    (a) Goodwill be valued at 2½ year’s purchased of the average profits of the last four year which were as follows:

    Years

    Profit

    Rs

    2006 – 2007

    32,500

    2007 – 2008

    30,000

    2008 – 2009

    40,000

    2009 – 2010

    37,500

    (b) Machinery be valued at Rs 70,000; Patents at Rs 20,000 and Building at Rs 62,500.

    (c) For the purpose of calculating Z’s share of profits on the year of his death the profit in 2010 − 2011 should be taken to have been accrued on the same scale as in 2009 − 2010.

    (d) A sum of Rs 17,500 was paid immediately to the executors of Z the balance was paid in four half yearly installments together with interest at 12% p.a. starting from 31.1.2011.

    Given necessary journal entries to record the above transaction and Z’s executor’s account till the payment of installments due on

    31.1.2011

     

    OR

     

    Murari and Vohra were partners in a firm with capitals of Rs 1,20,000 and Rs 1,60,000 respectively. On 1.4.2010 they admitted Yadav

    as a partner for non-fourth share in profits on his payment of Rs 2,00,000 as his capital and Rs 90,000 for this one-fourth share of goodwill.

    On that date the creditors of Murari and Vohra were Rs 60,000 and Bank Overdraft was Rs 15,000. Their assets apart from cash included Stock Rs 10,000; Debtors Rs 40,000; Plant and Machinery Rs 80,000; Land and Building Rs 2,00,000. It was agreed that stock should be depreciated by Rs 2,000; Plant and Machinery by 20%, Rs 5,000 should be written off as bad debts and Land and

    Building should be appreciated by 25%.

    Prepare Revaluation Account, Capital Accounts of Murari, Vohra and Yadav and the Balance Sheet of the new firm.

     

     

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  • Question 17

    List any two financing activities that will result into outflow of cash.

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  • Question 18

    What is meant by ‘cash equivalents’?

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  • Question 19

    State the interest of investors in the analysis of financial statements.

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  • Question 20

    State the major heading under which the following items will be put as per Schedule VI Part I of the Companies Act, 1956.

    (i) Long-term investment; (ii) Bills of Exchange; (iii) Motor Car; (iv) Discount on Issue of Shares; (v) Securities Premium and (vi) Unclaimed dividend.

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  • Question 21

    Calculate Current Ratio of a company from the following information:

    Stock Turnover Ratio : 4 times

    Stock in the end was Rs 20,000 more than stock in the beginning

    Sales Rs 3,00,000

    Gross Profit Ratio 25%

    Current Liabilities Rs 40,000

    Quick Ratio 0.75 : 1

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  • Question 22

    Prepare a Comparative Income Statement from the following information: 

    Particulars

    31.3.2009

    Rs

    31.3.2010

    Rs

    Sales

    40,000

    50,000

    Cost of goods sold

    30,000

    35,000

    Wages paid

    16,000

    14,000

    Operating Expenses

    2,500

    3,000

    Other Incomes

    2,000

    3,000

    Income tax

    4,750

    7,500

     

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  • Question 23

    From the followings Balances Sheet of Vikas Ltd. as on 31.3.2009 and 31.3.2010, prepare a Cash Flow Statement:

    Liabilities

    31-3-2009

    Rs

    31-3-2010

    Rs

    Assets

    31-3-2009

    Rs

    31-3-2010

    Rs

    Share Capital

    30,000

    1,30,000

    Fixed Assets

    93,400

    1,66,000

    General Reserve

    30,000

    55,000

    Stock

    22,000

    26,000

    Profit and Loss Account

    20,000

    30,000

    Debtors

    36,000

    39,000

    Trade Creditors

    17,400

    22,000

    Cash

    4,000

    5,000

     

     

     

    Preliminary Expenses

    2,000

    1,000

     

    1,57,400

    2,37,000

     

    1,57,400

    2,37,400

     

     

     

     

     

     

    Additional Information:

    (i) Depreciation charged on fixed assets for the year 2009-2010 was Rs 20,000

    (ii) Income Tax Rs 5,000 has been paid in advance during the year.

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