Board Paper of Class 12-Commerce 2008 Accountancy MeritNation(SET 1) - Solutions
1) This question paper contains two sections: A and B.
2) Section A is compulsory.
i. This section consists of 2 compulsory questions.
ii. Question No. 1 carries 30 marks.
iii. Question No. 2 carries 22 marks.
iv. This whole section is of 52 marks in total.
i. This section consists of 6 questions.
ii. Attempt any 4 questions from question nos. 3 to 8 carrying 12 marks each.
iv. This whole section is of 48 marks in total.
- Question 1
Answer each of the following questions briefly: [15 × 2] = [30 Marks] (i) When drafting a company balance sheet under Schedule VI Part I, under which heading and sub-heading will calls in arrear and calls in advance appear? (ii) State the two effects of the provision of Accounting Standard-10 as issued by the Institute of Chartered Accountants of India. (iii) When calculating the Acid test ratio, name two items that are excluded from current assets? (iv) Name any two balance sheet ratios. (v) How will discounting charges in a Consignment Account be dealt with when a bill of exchange is drawn by the consignor on the consignee as an advance? (vi) List any two types of financing activities. (vii) What is:
(a) Cost Accounting?
(b) Financial Accounting?
(viii) What is a material transfer note? (ix) What is the accounting treatment in the books of the consignor relating to expenses incurred on returning the goods by the consignee to the consignor assuming that such expenses are:
(a) Borne by the consignor;
(b) Borne by the consignee.
(x) State two differences between a Consignment Account and a Joint Venture Account. (xi) Name the two accounts that are responsible for completing the double entry under sectional balancing system. State in which ledger they are kept? (xii) State the closing entries for:
(a) rent paid to a partner;
(b) interest on loan allowed to partners.
(xiii) Explain any two ways of amortising the Discount on Issue of Debentures. (xiv) State two effects of forfeiture of shares. (xv) State two differences between interest on capital allowed to partners and interest on drawings charged to partners.
- Question 2
From the following particulars as extracted from the books of Malhotra and Company Limited, for the year ended 31st December, 2007, prepare general ledger adjustment accounts in the debtors ledger as well as in the creditors ledger : [22 Marks] (Rs) Debtors ledger balance on 1.1.07 (Dr.) 17,300 Creditors ledger balance on 1.1.07 (Cr.) 14,000 Purchases (including cash purchases of Rs 2,000) 36,500 Sales (including cash sales of Rs 8,000) 80,000 Cash paid to creditors 21,000 Collection from debtors 62,000 Acceptance matured 5,000 Returns Inward 6,200 Returns Outward 400 Acceptance dishonoured 3,000 Sundry charges for dishonoured bills payable 100 Bad debts 400 Bills receivable drawn 10,000 Bills receivable dishonoured 2,500 Provision for bad and doubtful debts 1,500 Bills receivable endorsed 4,500 Bills receivable discounted 4,000 Endorsed bills receivable dishonoured 1,000 Bills payable accepted 14,200 Bad debts recovered 2,000 Transfer from debtors ledger to creditors ledger 500 Transfer from creditors ledger to debtors ledger 700 Interest on renewed bills 500
- Question 3
The Balance Sheet of Amarnath and Company Limited as on 31.03.06 and 31.03.07 were as follows:
Liabilities 31.03.06 Rs 31.03.07
Assets 31.03.06 Rs 31.03.07
Equity share capital 50,000 72,500 Fixed assets 46,700 83,000 Profit and Loss A/c 10,000 15,000 Stock 29,000 32,500 11% Debentures 10,000 20,000 Cash 2,000 2,500 Creditors 8,700 11,000 Preliminary Expenses 1,000 500 78,700 1,18,500 78,700 1,18,500
Additional information:(a) Depreciation on fixed assets for the year 2006-07 was Rs 11,700.(b) Interest paid on debentures Rs 1,100.
From the above information prepare a cash flow statement as per Accounting Standard -3 (No other version will be considered for evaluation). VIEW SOLUTION
- Question 4
From the following particulars of Jackson and Company Limited prepare a cost sheet for the month ended 31st December. 2007: [12 Marks] (Rs) Stock on 01.12.07:Raw materials 10,000Work-in-progress (valued at prime cost) 8,000Finished goods 6,000 Stock on 31.12.07:Raw materials 3,000Work-in-progress (valued at prime cost) 2,000Finished goods 1,000 Purchases of raw materials 75,000 Chargeable expenses 4,000 Abnormal loss of materials 5,000 Insurance of raw materials 7,000 Remuneration of technical directors 9,000 Internal transport cost 11,000 Factory wages 70,000 Personnel department expenses 12,000 Depreciation of staff cars 1,500 Cost of free after sales service 3,500 Insurance of finished stock 2,500 Warehouse wages 4,500 Sales 3,00,000 Professional fees 6,500 Market research expenses 7,500 Power and fuel 20,000 Works canteen and welfare expenses 13,000 Depreciation of delivery van 8,500
- Question 5
On 1.1.2001, Prasad and Company Limited issued 1,000, 10% Debentures of Rs 1,000 each at Rs 980. Under the terms of issue, 1/5th of the debentures are annually redeemable by drawings, the first redemption occurring on 31.12.2003. [12 Marks]
Prepare the debenture discount account for the first six years. VIEW SOLUTION
- Question 6
Roger of Chennai consigned to Jacob of Lucknow 40 boxes of cosmetics at the rate of Rs 35 each and incurred cartage Rs 15, freight Rs 150, excise duty Rs 45 and insurance Rs 250 for sending the goods. Jacob received the goods and incurred landing charges Rs 25, octroi Rs 20, storage Rs 150 and selling expenses Rs 125. [12 Marks] Towards the end, Jacob could sell only 35 boxes at the rate of Rs 95 each because a new brand had appeared in the market as a result of which the market price fell to Rs 25 per box. The consignee is entitled to an ordinary commission of 10% on gross sale proceeds. The unsold goods were held by Jacob. You are required to prepare only the consignment account assuming that all calculations are to be made to the nearest rupee.
- Question 7
The following is the balance sheet of James and Dias as on 31.12.07: [12 Marks]
Balance Sheet Liabilities Amount Rs Assets Amount Rs James’ Capital 60,000 Land 6,000 Dias’ Capital 40,000 Building 40,000 Creditors 18,000 Furniture 4,000 Stock 25,000 Investments 16,000 Bank 15,000 Cash 12,000 1,18,000 1,18,000
The partners shared profits and losses in the ratio of 3 : 2.
From 01.01.08, they agreed to share profits and losses equally.
For this purpose, the following particulars are provided:(a) Building is to be appreciated by 25%.
(b) Current value of furniture is to be taken at Rs 3,000.
(c) Land is valued at Rs 15,000.
(d) Stock is valued at Rs 30,000.
Prepare a revaluation account, partners’ capital accounts and the revised balance sheet as on 01.01.08. VIEW SOLUTION
- Question 8
Rajesh and Iqbal enter into a joint venture, to share profits and losses equally. [12 Marks]
The following transactions take place between them:
Rajesh remits cash Rs 3,000 to Iqbal as an advance.
Rajesh buys goods for Rs 9,000.
Rajesh pays for repairs Rs 600.
Iqbal pays rent Rs 300.
Iqbal pays for insurance Rs 400.
Iqbal buys goods for Rs 1,000.
Rajesh sells all the goods for Rs 20,000 and final settlement is done on the same date.
Prepare a memorandum joint venture account and the personal accounts of the venturers in their respective books. VIEW SOLUTION