Board Paper of Class 12-Commerce 2015 Accountancy MeritNation(SET 1) - Solutions
1) This question paper contains three sections: A, B and C.
2) Section A contains two parts- Part I and Part II.
3) Part I of Section A is compulsory and attempt any 4 questions from Part II of Section A.
4) Attempt only 2 questions from either Section B or from Section C.
i. This section consists of 8 questions.
ii. Question No. 1 carrying 12 marks from Part I is compulsory.
iii. Attempt any 4 questions from question nos. 2 to 8 carrying 12 marks each.
iv. This whole section is of 60 marks in total.
i. This section consists of 3 questions.
ii. Attempt any 2 questions from question nos. 9 to 11 carrying 10 marks each.
iv. This whole section is of 20 marks in total.
- Question 1
Answer briefly each of the following questions: [6 × 2 = 12 Marks]VIEW SOLUTION
(i) What is meant by an operating cycle?
(ii) State one difference between partner's loan account and partner’s capital account.
(iii) Give the adjusting entry and the closing entry for recording commission allowed to a partner, when the firm follows the fixed capital method.
(iv) How will the firm record the payment of realisation expenses which were to be borne by a partner, but paid by the firm on his behalf?
(v) Give the accounting treatment in the books of a co-venturer under the Memorandum Joint Venture Method, when he takes over the unsold stock.
(vi) What is the minimum price at which a company can reissue its forfeited shares which were originally issued at par?
- Question 2
From the given Trial Balance, prepare the Balance Sheet of Moonlight Limited as at 31st March 2014. [12 Marks]Trial Balance as at 31st March, 2014ParticularsDebitAmountRsCreditAmountRs
Share Capital (40,000 Equity Shares of Rs 10 each)4,00,000 Bills receivable90,000 16% Mortgage Loan1,70,000 Stores and Spares1,15,000 Debtors1,66,000 Plant and Machinery2,90,000 Goodwill40,000 Provision for Tax26,000 General Reserve1,30,000 Cash in Hand18,000 Calls in Arrears2,000 Marketable Securities5,000Total7,26,0007,26,000
- Question 3
Amit and Sumit entered into a joint venture to construct a shopping mail. They agreed to share the profits and losses in the ratio 5:3. [12 Marks]
The contract price was agreed upon at Rs 50,00,000, payable as Rs 10,00,000 in cash and Rs 40,00,000 in the form of shares of Rs 10 each.
A Joint Bank Account was opened in which the co-venturers, Amit and Sumit, deposited their contributions of Rs 25,00,000 and Rs 10,00,000, respectively.
Amit also contributed bricks worth Rs 4,80,000. Sumit too contributed iron worth Rs 55,000 and timber worth Rs 3,25,000.
They acquired cement for Rs 11,00,000 and plant for Rs 15,40,000, from the funds of the venture.
Construction expenses amounted to Rs 8,25,000.
The contract was completed and the contract price was received. Amit took over the plant at Rs 5,25,000.
The co-venturers sold the shares in the open market at a profit of 10%.
You are required to prepare:
(i) Joint Bank Account.
(ii) JointVenture Account.
(iii) Co-venturers’ Accounts. VIEW SOLUTION
- Question 4
Gautam and Rahul are partners in a firm, sharing profits and losses in the ratio of 2:3. Their Balance Sheet as at 31st March, 2014, was as follows : [12 Marks]
Balance Sheetas at 31st March, 2014LiabilitiesAmountRsAssetsAmountRs
Sundry Creditors5,000 Goodwill10,000 Bills Payable15,000 Furniture25,000 General Reserve10,000 Stock15,000 Capital A/c: Sundry Debtors12,000 Gautam30,000 Less: Provision for Doubtful Debts(2,000)10,000 Rahul40,00070,000 Cash in hand40,0001,00,0001,00,000
Karim was to be taken as a partner with effect from 1st April, 2014, on the following terms:VIEW SOLUTION
(a) The new profit sharing ratio of Gautam, Rahul and Karim would be 5 : 3 : 2.
(b) Provision for Doubtful Debts would be raised to 20% of debtors.
(c) Karim would bring in cash, his share of capital of Rs 40,000 and his share of goodwill valued at Rs 10,000.
(d) Gautam would take over the furniture at Rs 22,000.
You are required to:
(i) Pass journal entries at the time of Karim’s admission.
(ii) Prepare the Balance Sheet of the reconstituted firm.
- Question 5
Ram, Krishna and Mohan are partners in a firm, sharing profits and losses in the ratio of 3 : 5 : 2. On 31st March, 2014, their Balance Sheet was as under: [12 Marks]
Balance Sheetas at 31st March, 2014LiabilitiesAmountRsAssetsAmountRs
Creditors39,200 Land and Building48,000 General Reserve16,000 Plant72,000 Capital A/c: Inventory34,000 Ram76,800 Trade Marks26,400 Krishna69,600 Bills Receivables39,200 Mohan54,0002,00,400 Cash in Hand24,000 Advertisement Suspense12,0002,55,6002,55,600
Krishna died on 30th September, 2014. An agreement was reached amongst Ram, Mohan and Krishna’s legal representative that:
(a) Goodwill to be valued at 2 years purchase of the average profits of the previous three years, which were:Year:2011-122012-132013-14Profit:Rs 31,200Rs 28,800Rs 36,000
(b) Trade marks to be revalued at Rs 19,200; plant at 80% of its book value and land & building at Rs 57,600.
(c) Krishna’s share of profit to the date of his death to be calculated on the basis of previous year’s profit.
(d) Interest on capital to be provided @10% per annum.
(e) Rs 60,080 to be paid in cash to Krishna’s legal representative and balance to be transferred to the legal representative’s loan account.
You are required to prepare:
(i) Revaluation Account.
(ii) Krishna’s Capital Account.
(iii) Krishna’s Legal Representative’s Account. VIEW SOLUTION
- Question 6
Pluto Ltd. issued 20,000 Equity shares of Rs 10 each, payable as follows: [12 Marks]
On ApplicationRs 4 On AllotmentRe 1 On 1st CallRs 3 On 2nd and Final CallRs 2
Applications were received for 30,000 shares and pro-rata allotment was made to all the applicants.VIEW SOLUTION
Excess money received on application was utilised towards allotment and subsequent calls. One shareholder holding 100 shares did not pay the final call and his shares were forfeited. Of the forfeited shares, the company reissued 70 shares as fully paid up at Rs 12 per share.
You are required to pass journal entries in the books of the company for the year ending 31st March, 2014.
- Question 7
(a) The partnership agreement of Rohit, Ali and Sneh provides that: [10 Marks]
1. Profits will be shared by them in the ratio of 2 : 2 : 1.
2. Interest on capital to be allowed at rate of 6% per annum.
3. Interest on drawings to be charged at the rate of 3% per annum.
4. Ali to be given a salary of Rs 500 per month.
5. Ali’s guarantee to the firm that the firm would earn a net profit of at least Rs 80,000 per annum and any shortfall in these profits would be personally met by him.
The capitals of the partners on 1st April, 2013, were:
Rohit- Rs 1,20,000; Ali- Rs 1,00,000; Sneh- Rs 1,00,000.
During the financial year 2013-14, all the three partners withdrew Rs 1,000 each at the beginning of every month.
The net profit of the firm for the year 2013-14 was Rs 70,000.
You are required to prepare for the year 2013-2014:
(i) Profit and Loss Appropriation Account.
(ii) Partner’s Capital Accounts.
(b) Veera and Sia are partners, sharing profits in the ratio of 3 : 2. Profit for the year 2013-14, amounting to Rs 18,000 was distributed wrongly in the ratio of 2 : 3.
You are required to rectify the error by passing an adjusting journal entry. [2 Marks] VIEW SOLUTION
- Question 8
On 1st April, 2013, Sunshine Ltd. issued Rs 10,00,000, 15% Debentures of Rs 100 each at 8% discount payable: [12 Marks]
Rs 40 on application
The balance on allotment.
These debentures were to be redeemed at a premium of 5% after five years. All the debentures were subscribed for by the public.
Interest on these debentures was to be paid half-yearly which was duly paid by the company.
Your are required to:
(i) Pass journal entries in the first year of debenture issue (including entries for debenture interest.)
(ii) Prepare the 15% Debenture Account for the year ending 31st March, 2014. VIEW SOLUTION
- Question 9
You are required to prepare a Cash-Flow Statement (as per AS-3) for the year 2013-14 from the following Balance Sheets. [10 Marks]
Balance Sheets of A.B.C. Ltd.As at 31st March, 2014 and 31st March, 2013ParticularsNoteNo.31.03.2014Rs31.03.2013RsI
EQUITY AND LIABILITIES1. Shareholders’ Funds (a) Share Capital (Equity Share Capital)6,00,0004,00,000 (b) Reserves and Surplus (Statement of P/L)2,00,0001,00,000 2. Non-Current Liabilities (a) Long Term Borrowing1,00,0002,00,000 3. Current Liabilities (a) Short term borrowings (Bank loan)--10,000 (b) Trade Payables (Creditors)45,00060,000 (c) Short Term Provisions1.1,30,0001,20,000TOTAL10,75,0008,90,000 II ASSETS1. Non-Current Assets (a) Fixed Assets(i) Tangible (Building)6,00,0006,00,000(ii) Intangible (Patents)45,00050,000 (b) Non-Current Investments75,000--2. Current Assets (a) Inventories15,00010,000 (b) Trade Receivables (Debtors)2,55,0002,00,000 (c) Cash and Cash Equivalent (Cash)85,00030,000TOTAL10,75,0008,90,000
Notes to Accounts:Particulars31.03.2014Rs31.03.2013Rs1
Short term provisions Proposed dividend60,00080,000 Provision for taxation70,00040,000
During the year 2013-14:
(i) Building costing Rs 75,000 was purchased.
(ii) An old building, the book value of which was Rs 63,000, was sold at a loss of Rs 5,000.
(iii) Tax provided during the year was Rs 80,000. VIEW SOLUTION
- Question 10
(a) Give any two objectives of preparing Common Size Statements. [2 Marks]
(b) From the following data, prepare a Comparative Statement of Profit and Loss of Simon Ltd. [4 Marks]
Revenue from Operations15,00,00012,00,000 Other Income30,00020,000 Cost of Materials consumed7,00,0005,50,000
(c) From the following data, prepare Common Size Balance Sheet of Mint Ltd. [4 Marks]
31.03.2013Rs Share Capital1,50,0001,20,000 Reserves and Surplus30,00030,000 Trade Payables20,00040,000 Fixed Tangible Assets2,00,0001,90,000
- Question 11
(a) From the following information calculate (up to two decimal places) : [6 Marks]
(i) Gross Profit Ratio
(ii) Inventory Turnover Ratio
(iii) Net Profit Ratio
Cash Revenue from OperationsRs 70,000 Net PurchasesRs 2,97,000 Credit Revenue from OperationsRs 2,80,000 Closing InventoryRs 80,000 Opening InventoryRs 60,000 Carriage inwardRs 3,000 Selling expensesRs 5,000 Administrative expensesRs 40,000 Loss on sale of fixed assetRs 10,000 Dividend receivedRs 7,000
(b) The Current Ratio of a company is 2 : 1. State whether the following will increase, reduce or not change the ratio: [2 Marks]
(i) Bills Payable Rs 5,000 discharged.(ii) Purchase of inventory Rs 20,000 on credit.
(c) Give the formulae for calculating: [2 Marks]
(i) Earning per shareVIEW SOLUTION
(ii) Trade Payables Turnover Ratio