Select Board & Class

Login

Board Paper of Class 12-Commerce 2015 Accountancy (SET 1) - Solutions

General Instructions
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.

Section A
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.

Section B
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]

    (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?

    VIEW SOLUTION
  • 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, 2014
    Particulars
    Debit
    Amount
    Rs
    Credit
    Amount
    Rs
    Share Capital (40,000 Equity Shares of Rs 10 each)
     
    4,00,000
    Bills receivable
    90,000
     
    16% Mortgage Loan
     
    1,70,000
    Stores and Spares
    1,15,000
     
    Debtors
    1,66,000
     
    Plant and Machinery
    2,90,000
     
    Goodwill
    40,000
     
    Provision for Tax
     
    26,000
    General Reserve
     
    1,30,000
    Cash in Hand
    18,000
     
    Calls in Arrears
    2,000
     
    Marketable Securities
    5,000
     
    Total
    7,26,000
    7,26,000
     
     
     
    VIEW SOLUTION
  • 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 Sheet
    as at 31st March, 2014
    Liabilities
    Amount
    Rs
    Assets
    Amount
    Rs
    Sundry Creditors
    5,000
    Goodwill
    10,000
    Bills Payable
    15,000
    Furniture
    25,000
    General Reserve  
    10,000
    Stock  
    15,000
    Capital A/c:  
     
    Sundry Debtors
    12,000
     
      Gautam
    30,000
     
      Less: Provision for Doubtful Debts
    (2,000)
    10,000
     
      Rahul
    40,000
    70,000
    Cash in hand  
    40,000
             
     
    1,00,000
     
    1,00,000
     
     
     
     

    Karim was to be taken as a partner with effect from 1st April, 2014, on the following terms:

    (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.

    VIEW SOLUTION
  • 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 Sheet
    as at 31st March, 2014
    Liabilities
    Amount
    Rs
    Assets
    Amount
    Rs
    Creditors
    39,200
    Land and Building
    48,000
    General Reserve
    16,000
    Plant
    72,000
    Capital A/c:  
     
    Inventory
    34,000
       Ram
    76,800
     
    Trade Marks
    26,400
       Krishna
    69,600
     
    Bills Receivables
    39,200
       Mohan
    54,000
    2,00,400
    Cash in Hand
    24,000
       
     
    Advertisement Suspense
    12,000
     
    2,55,600
     
    2,55,600
     
     
     
     

    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:
    2011-12
    2012-13
    2013-14
    Profit:
    Rs 31,200
    Rs 28,800
    Rs 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 Application
    Rs 4
    On Allotment
    Re 1
    On 1st Call
    Rs 3
    On 2nd and Final Call
    Rs 2

    Applications were received for 30,000 shares and pro-rata allotment was made to all the applicants.

    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.

    VIEW SOLUTION
  • 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, 2013
     
    Particulars
    Note
    No.
    31.03.2014
    Rs
    31.03.2013
    Rs
     
    I
    EQUITY AND LIABILITIES  
     
     
     
    1.
    Shareholders’ Funds  
     
     
     
    (a) Share Capital (Equity Share Capital)  
    6,00,000
    4,00,000
      (b) Reserves and Surplus (Statement of P/L)  
    2,00,000
    1,00,000
      2. Non-Current Liabilities  
     
     
      (a) Long Term Borrowing  
    1,00,000
    2,00,000
      3. Current Liabilities  
     
     
      (a) Short term borrowings (Bank loan)  
    --
    10,000
      (b) Trade Payables (Creditors)  
    45,000
    60,000
      (c) Short Term Provisions
    1.
    1,30,000
    1,20,000
     
    TOTAL
     
    10,75,000
    8,90,000
     
    II ASSETS  
     
     
     
    1.
    Non-Current Assets  
     
     
      (a) Fixed Assets  
     
     
     
    (i) Tangible (Building)
     
    6,00,000
    6,00,000
     
    (ii) Intangible (Patents)
     
    45,000
    50,000
      (b) Non-Current Investments  
    75,000
    --
     
    2.
    Current Assets  
     
     
      (a) Inventories  
    15,000
    10,000
      (b) Trade Receivables (Debtors)  
    2,55,000
    2,00,000
      (c) Cash and Cash Equivalent (Cash)  
    85,000
    30,000
     
    TOTAL
     
    10,75,000
    8,90,000
         
     
     

      Notes to Accounts:
    Particulars
    31.03.2014
    Rs
    31.03.2013
    Rs
    1
    Short term provisions    
      Proposed dividend
    60,000
    80,000
      Provision for taxation
    70,000
    40,000

    Additional Information:

    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]
     
    Particulars
    31.03.2014
    Rs
    31.03.2013
    Rs
    Revenue from Operations
    15,00,000
    12,00,000
    Other Income
    30,000
    20,000
    Cost of Materials consumed
    7,00,000
    5,50,000

    (c) From the following data, prepare Common Size Balance Sheet of Mint Ltd.                                [4 Marks]
     
    Particulars
    31.03.2014
    Rs
    31.03.2013
    Rs
    Share Capital
    1,50,000
    1,20,000
    Reserves and Surplus
    30,000
    30,000
    Trade Payables
    20,000
    40,000
    Fixed Tangible Assets
    2,00,000
    1,90,000
    VIEW SOLUTION
  • 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 Operations
    Rs 70,000
    Net Purchases
    Rs 2,97,000
    Credit Revenue from Operations
    Rs 2,80,000
    Closing Inventory
    Rs 80,000
    Opening Inventory
    Rs 60,000
    Carriage inward
    Rs 3,000
    Selling expenses
    Rs 5,000
    Administrative expenses
    Rs 40,000
    Loss on sale of fixed asset
    Rs 10,000
    Dividend received
    Rs 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 share

    (ii) Trade Payables Turnover Ratio

    VIEW SOLUTION
What are you looking for?

Syllabus