Board Paper of Class 12-Commerce 2007 Accountancy (SET 1) - Solutions

Ganesh has withdrawn as shown below:
Rs. 1,000 on   28. 02. 2006
Rs. 3,000 on   01. 07. 2006
Rs. 2,000 on   31. 08. 2006
Rs. 4,000 on   01. 10. 2006.

Calculate interest on drawings at 12% p.a. under product method for accounting year ended 31. 12. 2006. VIEW SOLUTION

A, B and C are partners sharing profits in the ratio of $\frac{1}{2}, \frac{1}{3} \& \frac{1}{6}$  respectively. A retires from the business. B and C decide to continue as equal partners.

Calculate the gain ratio of B and C.

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Ashok, Balu and Chandra are partners sharing profit and loss in the ratio of 2: 2: 1. Their capitals on 1. 1. 2005 was Rs. 50,000, Rs. 30,000 and Rs. 25,000 respectively.

Ashok died on 1. 7. 2005. Partnership deed provides the following:

(a) Salary to Ashok Rs. 400 per month.

(b) Interest on Capital at 10% p.a.

(c) His share of Goodwill, Profit and Reserve.

Goodwill of the firm valued at Rs. 25,000. Profit of the firm valued at Rs. 7,000. Reserve of the firm valued at Rs. 15,000. Prepare Ashok's Capital a/c. VIEW SOLUTION

ABC Company Limited forfeited 700 shares of Rs. 10 each for non- payment of 1st call Rs. 2 per share and final call of Rs. 3 per share.

These forfeited shares were reissued as fully paid up at Rs. 8 per share. Give necessary journal entries.

VIEW SOLUTION

What are the features of Computerised Accounting? VIEW SOLUTION

Krishna, a retailer kept his books of accounts under single entry system.

The following information is available:

Particulars	1. 1. 2006 (Rs)	31. 12. 2006 (Rs)
Cash in hand	2,000	3,000
Cash at Bank	4,000	6,000
Stock	15,000	20,000
Debtors	18,000	21,500
Bills Receivable	5,000	15,000
Bills Payable	8,000	10,000
Creditors	12,000	8,000
Machinery	25,000	25,000
Building	30,000	30,000
Furniture	10,000	10,000
Motor van (1. 7. 2006)	–	15,000

During the year, he withdrew Rs. 7,000 for his personal use. On 30. 6. 2006 he has introduced Rs. 9,000 as additional capital.

Adjustments:

(a) Depreciate Machinery, Furniture and Motor van by 10% p.a.

(b) Appreciate building by 5%.

(c) Allow interest on capital at 6% p.a.

(d) Write off bad debts Rs. 1,500 and maintain RBD at 5%.

(e) Prepaid Rent Rs. 800.

Prepare:

(i) Statement of Profit or Loss

(ii) Revised Statement of Affairs. VIEW SOLUTION

Ravi and Suri are partners sharing profit and loss in the ratio of 3: 2. Their Balance Sheet as on 31. 12. 2006 was as follows:  

Balance Sheet as on 31. 12. 2006
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Creditors		50,000	Cash		10,000
Bills Payable		25,000	Stock		40,000
Capital:			Bills Receivable		10,000
Ravi	50,000		Debtors	41,000
Suri	35,000	85,000	Less: Reserve	1,000	40,000
Profit and Loss a/c		10,000	Furniture		15,000
Reserve fund		25,000	Building		40,000
			Plant and Machinery		40,000
		1,95,000			1,95,000

Varun was admitted on 1. 1. 2007 for $\frac{1}{5}$ share on the following terms:

(a)  He brings in Rs. 15,000 as goodwill and Rs. 30,000 as capital.

(b) Half of the goodwill is to be withdrawn.

(c) Building is revalued at Rs. 55,000.

(d) Maintain RBD at 10% on debtors.

(e) Depreciate furniture and plant and machinery at 10%.

(f) Outstanding legal expenses Rs. 2,000.

Prepare:

(i) Revaluation account

(ii) Capital accounts and

(iii) New Balance Sheet.

VIEW SOLUTION

Following is the Balance Sheet of A, B and C Ltd. who share profit and loss in proportion of $\frac{1}{2}, \frac{1}{3}$ and $\frac{1}{6}$ dissolved on 31. 12. 2005.  

Balance Sheet as on 31. 12. 2005
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Creditors		12,000	Cash		11,000
Bills Payable		5,000	Debtors	8,000
A's Loan a/c		8,000	Less: Reserve	400	7,600
Capital:			Stock		12,400
A	20,000		Furniture		5,000
B	15,000		Motor van		15,000
C	10,000	45,000	Building		25,000
Reserve		6,000
		76,000			76,000

Adjustments:

(a) Assets realised as follows:

(b) Expenses of realisation amounted to Rs. 600.

(c) Creditors and Bills payable were paid in full.

(d) Outstanding Liability of Rs. 200 was also paid.

Prepare necessary Ledger accounts. VIEW SOLUTION

On 1. 1. 2000 a firm purchased a lease costing Rs. 50,000 for a term of 5 years. It is proposed to depreciate the Lease by Annuity method charging 5% interest. With reference to Annuity Tables show that Rs. 11,548.75 to be depreciated every year.

Show Lease account and Depreciation account for all the five years.

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Following is the Receipts and Payments a/c and Balance Sheet of Karnataka Sports Club, Bangalore.  

Balance Sheet as on 31. 12. 2005
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Outstanding Salary	1,600	Cash	26,200
Outstanding Rent	400	Outstanding subscription	2,400
Subscription received in advance	2,000	Investment	2,600
Capital fund	65,400	Sports Material	21,800
		Furniture	16,400
	69,400		69,400

 

Receipts and Payments A/c as on 31. 12. 2006
Receipts		Amount (Rs)	Payments		Amount (Rs)
To Balance b/d		26,200	By Rent
To Subscription			2005	400
2005	2,400		2006	4,400	4,800
2006	45,100		By Salary
2007	2,100	49,600	2005	1,600
To Donation		16,200	2006	23,200
To Entrance fee		32,600	2007	1,200	26,000
To Interest		1,400	By Printing		7,600
To Sale of sports materials (Original cost Rs. 8,000)		1,000	By General Expenses		5,400
			By Furniture		24,000
			By Sports Material		28,800
			By Balance c/d		30,400
		1,27,000			1,27,000

Adjustments:

(a) Subscriptions outstanding Rs. 2,800

(b) Printing unpaid Rs. 500

(c) Interest accrued Rs. 400

(d) Depreciate furniture by 10% & sports material by 10%.

(e) Capitalise 50% of Donations.

Prepare:

(i) Income and Expenditure Account

(ii) Balance Sheet.

VIEW SOLUTION

Following is the Trial Balance of Balaji Trading Company Limited.  

Trial Balance as on 31.12.2005
Particulars	Debit Amount (Rs)	Credit Amount (Rs)
Share Capital	–	1,25,000
Calls in arrears	2,000	–
Stock 1. 1. 2005	17,000	–
Purchases and Sales	52,500	1,04,000
Returns	4,000	2,500
Freight	3,000	–
Salary	7,500	–
Director's fees	4,900	–
Preliminary expenses	6,000	–
Debtors and Creditors	12,000	34,000
Furniture	10,000	–
Building	25,000	–
Goodwill	45,000	–
Investment	17,000	–
Bills Receivable and Payable	5,000	10,000
Interest	–	1,500
Profit and Loss a/c	–	10,000
Machinery	40,000	–
Vehicles	50,000	–
Reserve Fund	–	15,000
Dividend paid	3,000	–
Bad debts	1,600	–
Cash at Bank	14,500	–
Trade Mark	25,000	–
10% Debentures	–	28,000
Cash in hand	25,000	–
Overdraft	–	40,000
	3,70,000	3,70,000

Adjustments:

(a) Closing stock valued at Rs. 45,000.

(b) Provide RBD on debtors at 10%.

(c) Depreciate Building & Furniture at 10% each.

(d) Transfer Rs. 10,000 to Reserve fund.

(e) Half of the preliminary expenses be written off.

(f) Provide outstanding debenture interest for full year.

Prepare Final Accounts. VIEW SOLUTION