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Board Paper of Class 12-Commerce 2012 Accountancy (SET 1) - Solutions

General Instructions
1) This question paper contains two sections: A and B.
2) Section A is compulsory.

Section A
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.

Section B
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 any two uses of Securities Premium as stated in Section 78 of the Companies Act, 1956.
    (ii) In a Cost Sheet, how would you treat:
      (a) Primary packing material.
      (b) Secondary packing material.
    (iii) Give two differences between Sacrificing Ratio and Gaining Ratio.
    (iv) In case of a Joint Venture business, how is abnormal loss of goods which have been insured, treated in the books of accounts?
    (v) List two instances when a partner’s Fixed Capital may change.
    (vi) List any two objectives of stock valuation.
    (vii) Why is a General Ledger Adjustment Account opened?
    (viii) Assuming that the Debt-Equity Ratio of a company is 2 : 1, state whether this ratio would increase, decrease or not change in the following cases :
      (a) Issue of new shares for cash.
      (b) Repayment of a long-term bank loan.
    (ix) What are trade investments?
    (x) The firm with X, Y and Z as partners earned a profit of Rs 3,00,000 during the year ended 31st March, 2011. 20% of this profit was to be transferred to General Reserve. Pass the necessary Journal entry for the same.
    VIEW SOLUTION
  • Question 2
    Amit, Pawan and Suresh are partners in a firm, sharing profits in the ratio 2 : 3 : 1. Suresh retired on
    1st April, 2011. At the time of his retirement: 
    (a) Goodwill of the firm was valued at Rs 36,000.

    (b) The Balance Sheet of the firm showed:
     
    (i) A General Reserve of Rs 1,20,000.

    (ii) A debit balance of Rs 48,000 in the Profit & Loss Account.

    (iii) Rs 48,000 each, in the Joint Life Policy Account and Joint Life Policy Reserve Account. It was decided that the Joint Life Policy would be surrendered on the date of Suresh’s retirement.
     
    Record necessary Journal entries for the above adjustments to be made in the books of the firm on the date of Suresh’s retirement.                                                                 [10 Marks] VIEW SOLUTION
  • Question 3
    Paula Fashioners’ Limited maintains its books under the Sectional Balancing System. From the particulars given below for the year ending 31st December, 2011, you are required to prepare necessary Control Accounts in the General Ledger:                                                            [14 Marks]
    Particulars Debit Amount (Rs) Credit Amount (Rs)
    Opening Balance    
      Suppliers’ Ledger 960 96,500
      Customers’ Ledger 95,700 480
    Closing Balance    
      Suppliers’ Ledger 1,500
      Customers’ Ledger 2,300
    Other Details    
      Credit purchases   2,49,720
      Overdue interest charged by suppliers   1,590
      Received from customers (including bad debts recovered Rs 1,200)   2,47,400
      Credit Sales   2,72,000
      Transfer from Suppliers’ Ledger to Customers’ Ledger   680
      B/R received from customers   32,000
      Cash paid to suppliers   2,89,150
         
    VIEW SOLUTION
  • Question 4
    The following extract of costing information relates to a commodity for the year ended 31st March, 2007:       [14 Marks]      
                                   
    Particulars
    Amount
    (Rs)
    1st April 2006:  
      Raw materials
    50,000
      Finished products (1,000 tonnes)
    40,000
      Work-in-progress
    12,000
    31st March, 2007:  
      Raw materials
    55,600
      Finished products (2,000 tonnes)
    ?
      Work-in-progress
    40,000
    Transactions during the year:  
      Raw materials purchased
    3,00,000
      Direct wages
    25,000
      Rent, rates and insurance of factory
    1,00,000
      Carriage inwards
    3,600
      Cost of factory supervision
    20,000
      Sales of finished products
    7,50,000

    Advertisement and selling expenses @ Rs 2 per tonne sold.
    16,000 tonnes were produced during the year. It was decided to value the closing stock as per FIFO.
    Prepare a statement showing:
    (a) Value of raw materials used
    (b) Cost of the output for the year
    (c) Value of closing stock
    (d) Profit made during the year VIEW SOLUTION
  • Question 5
    The Balance Sheets of Cooper and Company as on 31st December, 2010 and 31st December, 2011 are given below:      [14 Marks]
     
    Balance Sheet
    Particulars
    31.12.10
    Amount
    (Rs)
    31.12.11
    Amount
    (Rs)
    I. Equity and Liabilities
     
     
    Equity Share Capital
    1,50,000
    1,80,000
    General Reserve
    30,000
    30,000
    Profit & Loss A/c
    50,000
    70,000
    12% Debentures
    51,000
    69,000
    12% Public Deposits
    80,000
    1,20,000
    Creditors
    8,000
    10,000
    Bills Payable
    6,000
    4,000
    Cash Credit
    3,000
    1,000
    Total
    3,78,000
    4,84,000
     
     
     
    II. Assets
     
     
    Goodwill
    10,000
    5,000
    Building
    1,50,000
    2,20,000
    Plant
    80,000
    1,00,000
        Stock
    60,000 75,000
    Debtors
    20,000
    17,000
    Bills Receivable
    8,000
    9,000
    Accrued Income
    10,000
    6,000
    Prepaid Expenses
    2,000
    Cash
    40,000
    50,000
    Total
    3,78,000
    4,84,000
     
     
     

    Additional Information:
    (a) Depreciation charged on building Rs 10,000
    (b) Depreciation charged on plant Rs 5,000
    (c) Interest paid on debentures Rs 7,200 for the year
    (d) Interest paid on public deposit Rs 9,600 for the year
    From the above information, prepare a Cash Flow Statement as per Accounting Standard-3 for the year ended 31st December, 2011.

    VIEW SOLUTION
  • Question 6

    In 2010, Ganga Ltd. was registered with an authorised capital of Rs 1,00,000 in Equity shares of Rs 10 each. Of these, 4,000 equity shares were issued as fully paid to vendors for the purchase of Plant and Machinery and the remaining 6,000 shares were subscribed for, by the public for cash. During the first year, Rs 6 per equity share was called up, on these 6,000 shares, payable Rs 3 on application, Rs 1 on allotment and Rs 2 on the first call.                     [14 Marks]

    The amount received in respect of these shares were as follows:
    On 5,000 shares, the full amount called
    On 600 shares, Rs 4 per share
    On 400 shares, Rs 3 per share
    The company forfeited all those shares on which only Rs 3 had been received and reissued them at Rs 4 per share, Rs 6 called up.
    Journalise the transactions in the books of the company and prepare a Calls-in-Arrear Account.

    VIEW SOLUTION
  • Question 7
    Anita, Bina and Chitra were in partnership, sharing profits and losses equally. The firm’s Balance Sheet as on 31st December, 2011, was as follows:        [14 Marks]
     
    Balance Sheet
    as on 31st December, 2011
    Liabilities
    Amount
    (Rs)
    Assets
    Amount
    (Rs)
    Anita’s Capital A/c
    24,000
    Plant and Machinery
    26,000
    Bina’s Capital A/c
    8,000
    Debtors
    53,000
    Chitra’s Capital A/c
    4,000
    Stock
    22,200
    Anita’s Current A/c
    10,800
    Cash
    1,600
    Creditors
    64,000
    Bina’s Current A/c
    2,000
        Chitra’s Current A/c
    6,000
           
     
    1,10,800
     
    1,10,800
           

    It was decided to dissolve the firm on 31st December, 2011.

    The plant and machinery, debtors and stock were sold by the firm for Rs 70,000 and the creditors were paid off.

    From the above, prepare the Realisation Account, Partners’ Capital Accounts and Cash Account.

                Modified

    VIEW SOLUTION
  • Question 8
    From the following information, calculate (upto two decimal places): [14 Marks]

    (i) Liquid Ratio
    (ii) Current Ratio
    (iii) Proprietary Ratio
    (iv) Working Capital Turnover Ratio
    (v) Gross Profit Ratio
    (vi) Operating Ratio
    (vii) Net Profit Ratio
       

    Particulars

    Amount

    (Rs)

    Cost of Goods sold

    6,00,000
    Operating Expenses 50,000
    Gross Sales 8,00,000
    Sales Returns 10,000
    Total Current Assets 3,00,000
    Total Current Liabilities 1,00,000
    Total Assets 7,00,000
    Closing Stock 30,000
    Prepaid Insurance 5,000
    Preliminary Expenses 6,000
    Share Capital 5,60,000
    Reserve and Surplus 40,000
    VIEW SOLUTION
  • Question 9

    On 1st January, 2000, Star Ltd. issued 1,000, 12% Debentures of Rs 100 each at a discount of 5% repayable as follows:                                   [14 Marks]
     
    Particulars
    Amount
    (Rs)
    On 31st December, 2002
    20,000
    On 31st December, 2003
    60,000
    On 31st December, 2004
    20,000

    The company pays interest on debentures annually. You are required to:
    (a) Pass the Journal entries (including interest) for the year beginning 1st January, 2000 to 31st December, 2000.
    (b) Prepare the ‘Discount on issue of Debenture Account’, till it is finally closed.

    VIEW SOLUTION
  • Question 10
    The following balances have been extracted from the books of King Furnishings Ltd. as on 31st March, 2011:      [14 Marks]
     
    Particulars
    Amount
    (Rs)
    Particulars
    Amount
    (Rs)
    Equity Share Capital
    4,00,000
    Accumulated Depreciation
    30,000
    (fully paid shares of Rs 100 each)   Provision for Taxation
    25,000
    Fixed Assets (at cost)
    6,60,000
    Reserves and Surplus
    1,00,000
    Inventories
    40,000
    5% Debentures
    2,00,000
    Cash and Bank Balance
    50,000
    (secured against land)  
    Creditors
    30,000
    Unsecured Loan from Subsidiaries
    50,000
    Bills Receivable
    20,000
    Underwriting Commission
    5,000
        Investments
    70,000
        Interest accrued and due on 5% Debentures
    10,000

    You are required to prepare a Balance Sheet of King Furnishings Ltd. as on 31st March, 2011, in the Horizontal* Form, as prescribed under Schedule VI of the Companies Act, 1956.

    VIEW SOLUTION
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