Board Paper of Class 12-Commerce 2010 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 20 marks.
iii. Question No. 2 carries 10 marks.
iv. This whole section is of 30 marks in total.
i. This section consists of 8 questions.
ii. Attempt any 5 questions from question nos. 3 to 10 carrying 14 marks each.
iv. This whole section is of 70 marks in total.
- Question 1
Answer each of the following questions briefly: [10 × 2] = [20 Marks] (i) State two differences between Bin Card and Stores Ledger. (ii) What is a cost unit? (iii) Name the two accounts which are prepared, when each co-venture keeps a record of his own transactions only in the books. (iv) State two differences between Sectional Balancing and Self Balancing. (v) How will you deal with the following items in the absence of a partnership deed:(a) Interest on Capital.
(b) Interest on Drawings.
(c) Interest on Partner’s Loan to the firm.
(d) Share in Profit and Loss.
(vi) State two differences between a revaluation account and a realization account. (vii) What is a ‘fictitious asset’? Give one example. (viii) What is meant by ‘issue of debentures as collateral security’? (ix) Give four examples of tangible fixed asset as per Schedule VI, Part I of the Companies Act, 1956. (x) What is meant by ‘cash equivalents’?
- Question 2
Lucy, Rahul and Sanjay are partners sharing profits and losses in the ratio of 1 : 2 : 3. Arun is admitted as a partner who brings in Rs 20,000 as his capital for 1/5th share in the profit. Goodwill of the firm is to be valued at an average of the last three years profits which were Rs 25,000, Rs 28,000 and Rs 37,000 respectively. Arun is unable to bring in cash towards his share of premium for goodwill.
Give the journal entries if goodwill already appears in the books at Rs 24,000. [10 Marks] VIEW SOLUTION
- Question 3
Anita, Kiran and Mina were partners sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve the partnership due to insolvency of all the partners. Their Balance sheet as on 31st December, 2009 was as follow : [14 Marks]
as on 31st December, 2009
Capital Accounts : Cash 2,000Anita 7,000 Machinery 10,000Kiran 5,000 Furniture and Fixture 1,000Mina 1,000 13,000 Stock 5,000 Bills payable 3,000 Sundry Debtors 3,000 Sundry Creditors 6,000 Profit and Loss A/c 1,000 22,000 22,000
The assets were realised as follows :
Machinery — Rs 5,000 and Stock — Rs 3,000
Realisation expenses were Rs 1,000.
Prepare necessary accounts to close the books of the firm. VIEW SOLUTION
- Question 4
[14 Marks] Opening stock of raw material 2,500 Opening stock of work-in-progress 3,600 Opening stock of finished goods (800 units) 12,900 Purchase of raw material 20,000 Productive wages 27,000 Factory expenses 14,400 Establishment expenses 6,400 Depreciation on delivery van 9,000 Sales (3,000 units) 90,000 Closing stock of raw material 4,500 Closing stock of work-in-progress 5,400 Closing stock of finished goods (1,000 units) ?
- Question 5
Andrew and Rohan entered into a joint venture and agreed to share profits and losses in the ratio of 4 : 3. Andrew supplied goods worth Rs 13,000 from his own stock. He spent Rs 900 on freight and insurance and drew a bill on Rohan for Rs 9,000 for three months. Rohan accepted the bill which was discounted by Andrew @ 12% p.a. Rohan paid Rs 600 towards clearing charges and Rs 700 for rent. Goods were sold by Rohan for Rs 21,000. Rohan was entitled to a commission of 6%. Rohan sent the draft to Andrew towards settlement of his account. Prepare in the books of Andrew :(a) Joint Venture Account.
(b) Rohan’s Account.
- Question 6
Given below are the extracts from the books of Greg Steels Limited : [14 Marks]
Opening balance of debtors 23,000 Opening balance of creditors 17,000 Credit sales 9,500 Credit purchases 10,500 Paid to creditors 12,000 Transfer from sales ledger to purchases ledger 250 Bills receivable received 4,750 Sales returns 425 Purchases returns 250 Cash received from debtors 15,500 Bills payable accepted 2,500 Bad debts 850 Interest charged to customers 320
From the above details prepare the Sales Ledger Adjustment Account and the Purchases Ledger Adjustment Account in the General Ledger. VIEW SOLUTION
- Question 7
Raman Ltd., issued 20,000 shares of Rs 10 each at a discount of 10% payable as follows : [14 Marks](i) Rs 2.50 on application payable on 1st May, 2009.
(ii) Rs 1.50 on allotment payable on 1st July, 2009.
(iii) Rs 2 on first call payable on 1st Oct., 2009.
(iv) Balance on second call payable on 1st Feb., 2010.
All these shares were subscribed and amounts received.
Shareholder ‘A’ who had been allotted 200 shares, paid the amount of the first and second call with allotment.
Another shareholder ‘B’ holding 100 shares did not pay the final call till the date of the Balance Sheet.
According to the Articles of Association of the company, interest at the rate of 4% p.a. is payable by the company on any calls in advanced.
The interest was paid by the company to the shareholder on 1st Feb., 2010.
Pass the necessary Journal Entries (including interest) in the books of the company. VIEW SOLUTION
- Question 8
Calculate the following Ratios from the Financial Statements of Annie Foods Limited :
[14 Marks](i) Gross profit ratio.
(ii) Net profit ratio.
(iii) Working capital turnover ratio.
(iv) Stock turnover ratio.
(v) Quick ratio.
(vi) Proprietary ratio.
(vii) Current ratio.
Profit and Loss Account of Annie Foods Limited
For the year ending 31st March, 2009
Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) To Opening Stock 30,000 By Sales 68,000 To Purchases 28,000 By Closing Stock 40,000 To Gross Profit c/d 50,000 1,08,000 1,08,000 To Office Expenses 10,000 By Gross Profit b/d 50,000 To Selling Expenses 9,000 By Interest 1,000 To Financial Expenses 5,000 To Loss on Sale of Plant 2,000 Net Profit 25,000 51,000 51,000 Balance Sheet of Annie Food Limited
as on 31st March, 2009
Liabilities Amount (Rs) Assets Amount (Rs) Equity Share Capital 1,20,000 Plant and Machinery 1,40,000 Preference Share Capital 30,000 Stock 40,000 Reserve and Surplus 25,000 Debtors 20,000 10% Debentures 30,000 Bank 10,000 Bills Payable 10,000 Cash 25,000 Creditors 20,000 2,35,000 2,35,000
Note: All calculations are to be made to two places of decimal. VIEW SOLUTION
- Question 9
Given below is the balance Sheet of M/s Victor Limited : [14 Marks]
Balance Sheet Liabilities 2007 Amount (Rs) 2008 Amount (Rs) Assets 2007 Amount (Rs) 2008 Amount (Rs) Share Capital 1,60,000 1,60,000 Plant 3,00,000 1,80,000 Profit & Loss A/c 60,000 1,60,000 Stock 1,00,000 2,40,000 Long-term Loan 1,50,000 – Sundry Debtors 1,60,000 1,72,000 Sundry Creditors 92,000 1,80,000 Bills Receivables 30,000 22,000 Provision for : Cash in hand 10,000 26,000 Taxation 24,000 30,000 Dividend 40,000 60,000 Bank Overdraft 74,000 50,000 6,00,000 6,40,000 6,00,000 6,40,000
Additional information:(a) Loans was paid in the beginning of the year 2007.
(b) Depreciation provided on Plant during the year was Rs 20,000
From the above information prepare a cash flow statement as per Accounting Standard-3. VIEW SOLUTION
- Question 10
Mehra Brothers has two petrol pumps, one in Kerala and the other in Punjab. The method of valuation of closing stock following by both the pumps are FIFO and LIFO, respectively. A periodic inventory of petrol is taken when the books are closed at the end of each month. The following information is available for the month of December 2009: [14 Marks] Particulars Petrol Pump - Kerala Petrol Pump - Punjab Opening Stock 10,000 litre @ Rs 40 per litre 8,000 litre @ Rs 43 per litre Purchases 15,000 litre @ Rs 43 per litre 12,000 litre @ Rs 48 per litre Sales 9,000 litre @ Rs 48 per litre 10,000 litre @ Rs 55 per litre Direct expenses Rs 17,000 Rs 19,000
From the above information, prepare a Trading account to calculate the profit made by the above petrol pumps for the month of December, 2009. VIEW SOLUTION