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

General Instructions:
(i) This question paper contains three Sections A, B, and C.
(ii) Attempt any 8 questions from Section A,carrying 2 marks each.
(iii) Attempt any 3 questions from Section B, carrying 6 marks each .
(iv) Attempt any 4 questions from Section C, carrying 14 marks each.
(v) All parts of the questions should be attempted at one place.

• Question 4
Give journal entry to transfer Realisation A/c profit to partners A and B. VIEW SOLUTION

• Question 6

Under what headings will you show the following items in Company's Balance sheet?

(a) Bills Receivable

(b) Preliminary Expenses.

VIEW SOLUTION

• Question 7
Write the formula for calculating the amount of depreciation under original cost method if percentage is not given. VIEW SOLUTION

• Question 8
Give two examples for Capital expenditures. VIEW SOLUTION

• Question 11
Surya and Chandra are partners of a firm. Surya is drawing Rs. 2,000 at the end of every two months. Calculate the interest at 12% p.a. on drawings of Surya for the year ending 31st December, 2006 under product method. VIEW SOLUTION

• Question 12
Anil, Sunil, Kamal are partners in a firm. Sunil retires on 31.12.2002.

Sunil's Loan A/c shows a credit balance of Rs. 35,000 on 1.01.2003.

Continuing partners paid Rs. 5,000 to Sunil and agreed to pay the balance of Rs. 30,000 in three yearly equal installments with interest at 12% p.a. Show Sunil's Loan A/c until it is paid off. VIEW SOLUTION

• Question 13

Red, White and Black are partners sharing profits and losses in the ratio of 3 : 2 : 1. On  31.12.2006, their Balance Sheet is as follows:

 Balance Sheet as on 31.12.2006 Liabilities Amount (Rs) Assets Amount (Rs) Sundry Creditors 26,000 Cash at Bank 25,000 Bills Payable 20,000 Debtors 35,000 Profit and Loss A/c 18,000 Stock 30,000 Capital: Furniture 14,000 Red 40,000 Buildings 30,000 White 30,000 Machinery 20,000 Black 20,000 90,000 1,54,000 1,54,000

Black died on 1.07.2006 and the partnership deed provides in the event of death of a partner that his executors should be entitled to:

(a) his Capital on the date of last Balance Sheet.

(b) his share of undistributed profits or losses.

(c) his share of profit upto the date of death on the basis of previous year profit. The profit for 2005 was Rs. 24,000.

(d) his share of goodwill. Firm's goodwill is valued at Rs. 60,000.

(e) drawings upto the date of death Rs. 3,000.

Prepare Black's Executors A/c.

VIEW SOLUTION

• Question 14

The Star Co. Ltd. decided to issue 20,000 equity shares of Rs. 100 each with a premium of Rs. 20. The amount is payable as follows:

on application Rs. 20

on allotment Rs. 60 (including premium amount Rs. 20)

on first and final call Rs. 40.

All the shares were subscribed and all the money received except the first and final call on 1000 shares.

Give Journal entries.

VIEW SOLUTION

• Question 15
Explain the advantages of Computer accounting. VIEW SOLUTION

• Question 16

Mallik, a businessman started his business on 1.01.2006 with an opening capital of Rs. 45,000.

On 1.07.2006 he invested Rs. 15,000 as additional capital. He used Rs. 18,000 for his personal use. His financial position on 31.12.2006 was as follows:

 Rs. Stock of goods 26,000 Sundry debtors 16,000 Furniture 6,000 Cash at Bank 6,000 Cash in hand 600 Bills Receivable 4,600 Plant and Machinery 20,000 Sundry Creditors 16,000 Loan from Menaka 6,000

(a)  Depreciate furniture by Rs. 600.

(b)  Depreciate plant & machinery by 10%.

(c)  Outstanding rent Rs. 1,000.

(d) Allow Interest on Capital at 5% p.a.

Prepare:

(i) Statement of profit or loss

(ii) Revised statement of affairs.

VIEW SOLUTION

• Question 17
A company acquires lease on Jan. 1, 2000 for a term of 5 years by payment of Rs. 25,000. It is proposed to depreciate the lease by Annuity method, charging 5% Interest.  As per Annuity tables, the amount to be written off annually amounts to Rs. 5774.37

Show the (i) Lease Account and (ii) Interest Account for five years.

VIEW SOLUTION

• Question 18
Following is the Balance Sheet and Receipts and Payments account of Jayaprakash College Association.    Balance Sheet as on 31.12.2005 Liabilities Amount (Rs) Assets Amount (Rs) Capital Fund 32,000 Building 30,000 Subscription received in advance 600 Subscription O/s 380 Outstanding expenses 1,400 O/s Rent 240 Loan 5,000 Cash in hand 10,000 Income & Expenditure A/c 1,620 40,620 40,620
 Receipts and Payments A/c for the year ended 31.12.2006 Receipts Amount (Rs) Payments Amount (Rs) To Balance on 1.01.2006 10,000 By Expenses To Subscriptions 2005 1,200 2005 200 2006 2,000 3,200 2006 2,100 By Leasehold land 4,000 2007 150 2,450 By Interest 400 To Entrance fees 800 By Refreshment Expenses 2,000 To Rent 700 By Balance on 31.12.2006 8,350 To Income from Refreshments 4,000 17,950 17,950

(a) Expenses due but not paid Rs. 500.

(b) Subscriptions due but not received Rs. 100.

(c) Salary due but not paid Rs. 200.

(d) Depreciation on Building Rs. 2,000.

(e) Half of the Entrance fees to be capitalised.

Prepare:

(i) Income and Expenditure for the year ending 31.12.2006.

(ii) Balance Sheet as on that date.

VIEW SOLUTION

• Question 19

Sarat and Bharat are sharing profits and losses in the ratio of 2 : 1. On 31.12.2006 their Balance Sheet was as follows:

 Balance Sheet as on 31.12.2006 Liabilities Amount (Rs) Assets Amount (Rs) Creditors 12,000 Cash in hand 10,000 Bills Payable 8,000 Debtors 5,000 Reserve Fund 9,000 Stock 10,000 Capital Account: Furniture 4,000 Sarat 20,000 Building 40,000 Bharat 20,000 40,000 69,000 69,000

They admit Lalit into partnership giving him $\frac{1}{5}$ share in the future profit on the following terms:

(a) The new partner should bring Rs. 25,000 as his capital.

(b) Value of Buildings is to be appreciated by Rs. 7,000.

(c)  Furniture to be depreciated by Rs. 800.

(d)  Stock is valued at 10% less than the book value.

(e)  The Goodwill Account is to be raised at Rs. 24,000.

(f)  There is an outstanding printing bill for Rs. 400.

Prepare:

(i) Revaluation Account

(ii) Partners' Capital Accounts

(iii) Opening Balance Sheet of the new firm. VIEW SOLUTION

• Question 20

Roopa, Deepa and Kirpa were partners sharing profits and losses in the ratio of 2 : 1 : 1. Their Balance Sheet as on 31.12.2006 was as follows:

 Balance Sheet as on 31.12.2006 Liabilities Amount (Rs) Assets Amount (Rs) Bills Payable 2,300 Cash in hand 1,000 Creditors 5,700 Bills Receivable 400 Reserve 4,000 Stock 20,000 Capital: Debtors 7,000 Roopa 30,000 Less: Provision 400 6,600 Deepa 20,000 Joint Life Policy 4,000 Kripa 20,000 70,000 Machinery 50,000 82,000 82,000

The firm was dissolved on the above date and the details available are:

(a) Roopa took over the Joint Life Policy for Rs. 5,000.

(b) Amount realised as follows:

 Stock Rs. 22,000 Debtors Rs. 4,100 Machinery Rs. 58,000 Bills on hand realised in full.

(c) Realisation Expenses paid Rs. 500.

Prepare:

(i) Realisation Account

(ii) Partners' Capital Accounts

(iii) Cash Account.

VIEW SOLUTION

• Question 21

Following is the Trial Balance of Sundar Company Limited, Hubli.

 Trial Balance as on 31.12.2006 Particulars Debit Amount (Rs) Credit Amount (Rs) Share Capital  (25,000 shares of Rs. 10 each) – 2,50,000 Stock (1.01.2006) 45,000 – Wages 40,000 – Purchases and Sales 1,25,000 2,00,000 Freight 10,000 – Salary 10,000 – Rent 5,000 – Discount 4,000 3,000 Sundry Expenses 3,500 – Bad debts 1,000 – Profit and Loss A/c – 11,000 Dividend 2,500 – Interim Dividend 1,500 – Debtors and Creditors 35,000 24,000 Buildings 80,000 – Machinery 25,000 – Investments 75,000 – Reserve Fund – 12,000 Loans to Employees 2,000 – Cash 25,500 – 6% Debentures – 50,000 Calls in arrears 10,000 – Goodwill 50,000 5,50,000 5,50,000

(a) Stock on 31.12.2006 Rs. 50,000.

(b) Transfer Rs. 3,000 to Reserve Fund.

(c) RBD at 5%.

(d) Depreciate Machinery at 10%.

(e) Outstanding interest on debentures for one year.

Prepare Final Accounts.

VIEW SOLUTION
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