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

General Instructions:
(i) This question paper contains four Sections A, B, C and D.
(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) Attempt any 2 questions from Section D, carrying 5 marks each.
(vi) All parts of the questions should be attempted at one place.

• Question 2
State any two contents of partnership deed. VIEW SOLUTION

• Question 6
Under which headings do the following items appear in the Company’s Balance Sheet?

(b) Discount on issue of shares. VIEW SOLUTION

• Question 7
What factors do you take into account in determining the amount of depreciation? VIEW SOLUTION

• Question 8
Point out any two differences between Capital expenditure and Revenue expenditure. VIEW SOLUTION

• Question 11
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

• Question 12
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

• Question 13

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

• Question 14

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

• Question 15
Mention any six features of computerised accounting. VIEW SOLUTION

• Question 16
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.

(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

• Question 17

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

• Question 18

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:

Debtors Rs. 8,000, Investments Rs. 8,950, Stock Rs. 15,600 and Buildings Rs. 15,750.

(e) Realisation expenses amounted to Rs. 600.

Prepare:

(i) Realisation Account

(ii) Partners’ Capital Accounts

(iii) Cash Account.

VIEW SOLUTION

• Question 19
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

(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

• Question 20

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

• Question 21
The following is the Balance Sheet of Vijay Library as on 01.01.2006:

 Balance Sheet as on 01.01.2006 Liabilities Amount (Rs) Assets Amount (Rs) Outstanding Rent 200 Cash in hand 1,400 Capital fund 23,800 Books 14,000 Furniture 8,000 Outstanding Subscription 600 24,000 24,000

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

(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

• Question 22
Prepare Capital Accounts of two partners with five imaginary figures. VIEW SOLUTION

• Question 23
Prepare a Machinery Account for two years with imaginary figures under fixed installment method. VIEW SOLUTION

• Question 24
Prepare an Income and Expenditure Account with five imaginary figures. VIEW SOLUTION
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