Board Paper of Class 12-Commerce 2008 Accountancy (SET 1) - Solutions

Sharada and Laxmi are partners having capitals of Rs. 1,20,000 and Rs. 1,00,000 respectively. Their profit sharing ratio is 3 : 2. On 31.12.2007 their net profit was Rs. 38,500. They decided to allow interest on capital at 5% and salary to Sharada at Rs. 750 per month. Interests on their drawings are Rs. 1,000 and Rs. 500 respectively.

Prepare Profit and Loss Appropriation Account.

VIEW SOLUTION

Ram and Laxman are partners sharing profits and losses in the ratio of 5 : 3. They admit Bharat into business and the new profit sharing ratio was agreed to be 8 : 5 : 3.

Calculate the Sacrifice Ratio.

VIEW SOLUTION

A, B and C are partners sharing profits and losses in the ratio of 2 : 2 : 1.

They get interest at 5% p.a. on their capitals. They receive salaries of Rs. 500, Rs. 400 and Rs. 300 per month respectively. Their Balance Sheet is given below:
 

Balance Sheet as on 31.12.2006
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Creditors	30,000	Cash at Bank	39,000
Capitals:		Debtors	49,000
A	60,000	Stock	32,000
B	50,000	Machinery	60,000
C	40,000
	1,80,000		1,80,000

B died on 01.07.2007. According to the partnership deed, the executors of the deceased partner are entitled to claim:
(i) Capital of B
(ii) Interest on capital
(iii) Salary
(iv) Share of goodwill.

The goodwill of the firm is valued at Rs. 40,000.
B’s drawings upto the date of death are Rs. 4,250.
Prepare B’s executors account.

VIEW SOLUTION

On 01.01.2007, the directors of Aparna Company Limited resolved that 600 shares of Rs. 100 each are forfeited for the non-payment of first call Rs. 40 and final call of Rs. 10 each.

On 01.02.2007 the above forfeited shares were reissued as fully paid at Rs. 80 per share.

Pass Journal entries for the above transactions.

VIEW SOLUTION

Mention any six features of computerised accounting. VIEW SOLUTION

Kumar is a merchant, keeping his books of accounts under single entry system. He gave the following information:
 

Particulars	01.01.2007 (Rs)	31.12.2007 (Rs)
Sundry debtors	7,800	7,250
Sundry creditors	4,500	5,450
Bank overdraft	6,400	–
Cash	1,100	2,000
Bank Balance	–	3,200
B/P	–	3,000
Stock	6,000	10,000
Machinery	15,000	15,000
Motor Car	20,000	20,000

During the year, he withdrew cash Rs. 5,000 and goods worth Rs. 2,000 for his personal use. He introduced Rs. 10,000 as additional capital on 01.04.2007.
    
Adjustments:
(i) Depreciate machinery by 5% per annum and write off Rs. 1,000 from motor car.
(ii) Write off bad debts Rs. 250 and create R.B.D. at 5% on debtors.
(iii) Outstanding salary Rs. 500 and Rent due but not received Rs. 1,200.
(iv) Allow interest on Capital at 5% including additional capital.

Prepare:
(a) Statement of Affairs    
(b) Statement of Profit or Loss    
(c) Revised Statement of Affairs VIEW SOLUTION

M, N and O were partners sharing profits in the ratio of 3 : 2 : 1 respectively.

Their Balance Sheet as on 31.12.2007 was as follows:

Balance Sheet as on 31.12.2007
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Capital:		Cash	2,500
M	40,000	Debtors	9,500
N	30,000	Stock	25,000
O	25,000	Motor Van	8,000
Reserve fund	9,000	Machinery	35,000
Creditors	24,000	Buildings	45,000
		Profit & Loss A/c	3,000
	1,28,000		1,28,000

N retires on the above date and the following adjustments were made:

(a) N’s share of goodwill was valued at Rs. 6,000. It was decided to write off the goodwill.

(b) Machinery and motor van were reduced by 10% and 5% respectively.

(c) Stock & Buildings were appreciated by 20% and 10% respectively.

(d) Provision on debtors was to be created Rs. 1,400 for Bad debts.

Prepare:

(i) Revaluation Account

(ii) Partners’ Capital Accounts

(iii) Balance Sheet of Continuing Partners.

VIEW SOLUTION

The following is the Balance Sheet of X, Y & Z as on 31.12.2007:
 

Balance Sheet as on 31.12.2007
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Creditors	15,000	Cash	6,500
Bills Payable	1,800	Debtors	8,600
Reserve fund	6,000	Investments	10,000
Capital:		Stock	13,700
X	22,000	Furniture	5,100
Y	12,000	Buildings	12,900
Z	10,000	Goodwill	10,000
	66,800		66,800

It was decided to dissolve the partnership firm on the following terms:

(a) X took over goodwill at Rs. 12,000 and furniture at Rs. 4,500.

(b) Y took over creditors at book value.

(c) Z took over Bills payable at book value.

(d) The other assets realised as under:

(e) Realisation expenses amounted to Rs. 600.

Prepare:

(i) Realisation Account

(ii) Partners’ Capital Accounts

(iii) Cash Account.

VIEW SOLUTION

Following is the Trial Balance of Jogi Company Ltd.  as on 31.12.2007:
 

Trial Balance as on 31.12.2007
Particulars	Debit Amount (Rs)	Credit Amount (Rs)
Stock	8,000	–
Purchases and Sales	30,000	70,000
Wages	8,500	–
Returns	2,000	1,500
Freight	2,000	–
Salaries	6,000	–
Discounts	6,000	1,000
Sundry expenses	2,000	–
B/R	1,000	–
Debtors & Creditors	14,000	5,700
Land & Buildings	20,000	–
Preliminary expenses	7,400	–
Machinery	8,000	–
Furniture	11,500	–
Investments	9,000	–
Cash in hand	4,600	–
Cash at Bank	6,000	–
Loose tools	10,000	–
Goodwill	10,000	–
Reserve fund	–	3,800
Share Capital (600 shares of Rs. 100 each)	–	60,000
Loan	–	10,000
Profit and Loss Appropriation Account	–	4,000
Debentures	–	10,000
	1,66,000	1,66,000

Adjustments:

(a) Closing stock Rs. 12,000.

(b) Write off Rs. 1,200 Bad debts.

(c) Write off Rs. 3,400 from preliminary expenses.

(d) Provide for dividend Rs. 7,000.

(e) Depreciate machinery at 5%.

(f) Transfer Rs. 1,000 to Reserve fund.

Prepare Final Account of the company in the prescribed form.

VIEW SOLUTION

On 01.01.2004 Krishna & Company purchased a machinery for Rs. 1,00,000.

On 01.01.2005 another machinery was purchased for Rs. 60,000.

On 30.06.2006, a part of the machinery costing Rs. 30,000, which was purchased on 01.01.2005 was sold for Rs. 22,500.

Depreciation was charged at 10% p.a. under diminishing balance method. Show machinery account and depreciation account for four years. VIEW SOLUTION

The following is the Balance Sheet of Vijay Library as on 01.01.2006:
 

The Receipts and Payments account of the Library for the year ending 31.12.2006 is as under:

Receipts and Payments Account for the year ending 31.12.2006
Receipts	Amount (Rs)	Payments	Amount (Rs)
To Cash Balance	1,400	By Rent	2,400
To Subscriptions	12,000	By Printing	1,200
To Entrance Fees	2,000	By Office Expenses	2,800
To Donations	4,000	By Books bought (31.12.2006)	10,000
To Sale of old papers	1,000	By Investment	2,000
To Sundry receipts	600	By Closing Balance	2,600
	21,000		21,000

Adjustments:

(a) Outstanding rent on 31.12.2006 was Rs. 300.

(b) Subscription receivable for the year 2006 amounted to Rs. 400.

(c) Subscription received in advance for the year 2007 was Rs. 800.

(d) Half of the Entrance fees and half of the Donations are to be capitalised.

(e) Depreciate books at 10% and furniture at 5%.

Prepare:

(i) Income and Expenditure A/c

(ii) Balance Sheet as on 31.12.2006. VIEW SOLUTION

Prepare Capital Accounts of two partners with five imaginary figures. VIEW SOLUTION

Prepare a Machinery Account for two years with imaginary figures under fixed installment method. VIEW SOLUTION

Prepare an Income and Expenditure Account with five imaginary figures. VIEW SOLUTION