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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 1
What are the two disadvantages of single entry system? VIEW SOLUTION

• Question 2
What are the two methods of maintaining capital accounts in partnership business? VIEW SOLUTION

• Question 3
How do you close Revaluation account in admission of a partner? VIEW SOLUTION

• Question 4
State the different types of shares that can be issued by a public company. VIEW SOLUTION

• Question 5
Give the journal entry for the asset taken by a partner in dissolution of a firm. VIEW SOLUTION

• Question 6

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

(b) Discount on issue of shares.

VIEW SOLUTION

• Question 9
State any two limitations of Computerised Accounting. VIEW SOLUTION

• Question 11
Ganesh has withdrawn as shown below: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

• Question 12
A, B and C are partners sharing profits in the ratio of   respectively. A retires from the business. B and C decide to continue as equal partners.

Calculate the gain ratio of B and C.

VIEW SOLUTION

• Question 13
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

• Question 14
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

• Question 15
What are the features of Computerised Accounting? VIEW SOLUTION

• Question 16

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.

(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

• Question 17

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

• Question 18

Following is the Balance Sheet of A, B and C Ltd. who share profit and loss in proportion of  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

(a) Assets realised as follows:

Debtors Rs. 10,800; Stock Rs. 16,000; Furniture Rs. 6,000; Motor van Rs. 15,000; Building Rs. 30,000.

(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

• Question 19
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.

VIEW SOLUTION

• Question 20

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

(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

• Question 21

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

(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
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