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# Board Paper of Class 12-Commerce 2010 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 1
What is the object of preparing the statement of affairs? VIEW SOLUTION

• Question 4
Give the journal entry for sale of assets on dissolution of partnership firm. VIEW SOLUTION

• Question 6

Under what heading do the following items appear in the Company’s Balance Sheet?

(a) Loose tools

(b) Unclaimed dividend

VIEW SOLUTION

• Question 7

What is original cost method of depreciation?

VIEW SOLUTION

• Question 10
Mention two types of accounting packages. VIEW SOLUTION

• Question 11

Suresh, a partner in a firm has withdrawn the following amounts during the year ended 31. 12. 2008 for his personal use.
Rs. 9,000 on 01. 04. 2008
Rs. 6,000 on 30. 06. 2008
Rs. 5,000 on 01. 09. 2008
Rs. 7,000 on 30. 11. 2008

Calculate the interest on drawings at 8% per annum under product method.

VIEW SOLUTION

• Question 12
Anil, Bharath and Chandra are partners sharing profits and losses in the ratio of 5 : 4 : 3. Anil retires. Bharath gets $\frac{1}{4}$th and Chandra gets $\frac{1}{6}$ th of Anil’s share. Calculate the new profit and loss sharing ratio of Bharath and Chandra. VIEW SOLUTION

• Question 13

Pavan, Rakesh and Sohan are partners sharing profits and losses in the ratio of 3 : 2 : 1. Their capital balances on 01. 01. 2008 stood at Rs. 45,000, Rs. 30,000 and Rs. 20,000 respectively.

Rakesh died on 30. 09. 2008. Partnership deed provides the following:

(a) Interest on capital at 10% per annum.

(b) Salary to Rakesh Rs. 800 per month.

(c) His share of goodwill.

(d) His share of profit upto the date of death on the basis of previous year’s profit.

(i)  Goodwill of the firm Rs. 27,000

(ii) Profits for the year 2007 Rs. 15,000

Prepare Rakesh’s Capital Account.

VIEW SOLUTION

• Question 14

Varun Company Limited forfeited 500 shares of Rs. 100 each for non-payment of the final call money Rs. 25 per share. Later these shares were reissued at Rs. 90 per share.

Give necessary Journal Entries.

VIEW SOLUTION

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

• Question 16

Arun kept his books of account under single entry system. He gave the following information:

 Particulars 01. 01. 2008 (Rs) 31. 12. 2008 (Rs) Cash 8,500 9,600 Cash at Bank 14,000 16,400 Stock 25,000 31,000 Debtors 16,000 20,000 Creditors 10,400 7,500 Bills payable 3,100 — Investments — 6,500 Furniture 15,000 15,000 Buildings 60,000 60,000

During the year, he withdrew Rs. 9,000 for personal use. On 01. 05. 2008, he has introduced Rs. 15,000 as additional capital.

(a) Depreciate furniture by 20%

(b) Appreciate buildings by 15%

(c) Allow interest on capital at 6% per annum

(d) Create reserve for doubtful debts at 5% on debtors

(e) Outstanding salary Rs. 4,500

(f) Rent receivable Rs 1,100

Prepare:

(i) Statement of affairs

(ii) Statement of profit or loss

(iii) Revised statement of affairs.

VIEW SOLUTION

• Question 17

Ratan and Suraj are partners sharing profits and losses in the ratio of 3 : 2. Their Balance sheet as on 31. 12. 2008 was as follows:

 Balance Sheet as on 31. 12. 2008 Liabilities Amount (Rs) Assets Amount (Rs) Creditors 13,500 Cash 6,500 Bills Payable 7,500 Stock 21,000 General Reserve 15,000 Debtors 18,000 Capitals: Bills Receivable 5,500 Ratan Rs. 60,000 Furniture 10,000 Suraj Rs. 30,000 90,000 Machinery 24,000 Buildings 40,000 Profit and Loss A/c. 1,000 1,26,000 1,26,000

They admit Vinod to partnership for $\frac{1}{6}$th share on 01. 01. 2009 based on the following terms:

(a) He should bring in Rs. 20,000 as capital

(b) Buildings to be revalued at Rs. 50,000

(c) Furniture and Machinery to be depreciated at10% and 5% respectively

(d) Reserve for doubtful debts to be provided at 10% on Debtors

(e) Goodwill account to be raised and maintained to the extent of Rs. 25,000.

Prepare:

(i) Revaluation Account

(ii) Capital Accounts of Partners

(iii) Balance Sheet as on 01. 01. 2009

VIEW SOLUTION

• Question 18
Mohan, Nagaraju and Prakash are partners sharing profits and losses in the ratio of 4 : 3 : 2. Their Balance sheet as on 31. 12. 2008 was as follows:
 Balance Sheet as on 31. 12. 2008 Liabilities Amount (Rs) Assets Amount (Rs) Creditors 25,000 Cash 9,000 Bills Payable 17,000 Debtors 27,000 Prakash’s Loan A/c. 10,000 Stock 15,000 Reserve Fund 18,000 Investments 5,000 Capitals: Furniture 14,000 Mohan Rs. 30,000 Goodwill 20,000 Nagaraju Rs. 20,000 Buildings 40,000 Prakash Rs. 10,000 60,000 1,30,000 1,30,000

On the above date the firm was dissolved. The assets realised as follows:

(a) Debtors realised 10% less than the book value and investments realised 20% more than the book value. Buildings realised Rs. 60,000, stock realised Rs. 12,000 and furniture sold for Rs. 15,000.

(b) Goodwill taken by Mohan at Rs. 15,000

(c) Creditors and Bills payable settled at discount of 5%

(d) Realisation expenses Rs. 2,000.

Prepare:

(i) Realisation Account

(ii) Capital Accounts of Partners

(iii) Cash Account

VIEW SOLUTION

• Question 19
On 01. 01. 2005 a firm purchased a lease costing Rs. 50,000 for a term of 4 years. It is proposed to depreciate the lease by Annuity method charging 5% interest. With reference to Annuity tables to write off Re. 1 at 5% over a period of 4 years the amount to be charged is 0.282012.

Show Lease account and Interest account for all four years. VIEW SOLUTION

• Question 20

Following are the Balance sheet and Receipts and Payments A/c. of Diamond Sports Club, Davanagere.

 Balance Sheet as on 31. 12. 07 Liabilities Amount (Rs) Assets Amount (Rs) Outstanding Salary 3,500 Cash 10,500 Pre-received Subscriptions 2,000 Sports Materials 25,000 Capital Fund 92,000 Furniture 12,000 Land and Building 50,000 97,500 97,500
 Receipts and Payments A/c for the year ended 31. 12. 08. Receipts Amount (Rs) Payments Amount (Rs) To Balance b/d 10,500 By Salary 23,000 To Subscriptions 42,000 By Sports Materials (01. 07. 2008) 14,000 To Entrance Fees 5,000 By Investments 10,000 To Sale of old newspapers 1,500 By Postage 1,200 To Sports Fees 7,200 By Electricity Charges 2,300 By Up-keep of Grounds 4,500 By Balance c/d 11,200 66,200 66,200

(a) Outstanding subscription for 2008 Rs. 1,000

(b) Outstanding salary as on 31. 12. 2008 Rs. 4,500

(c) Half of the Entrance fees to be capitalised

(d) Depreciate sports materials at 20% per annum and furniture at 5%.

Prepare:

(i) Income and Expenditure Account

(ii) Balance Sheet
VIEW SOLUTION

• Question 21
Following is the Trial Balance of Vishwas Trading Company Ltd. as on 31. 12. 2008:
 Trial Balance as on 31. 12. 2008 Particulars Debit Amount (Rs) Credit Amount (Rs) Called up Share Capital — 1,00,000 Calls in Arrear 3,000 — Stock (01. 01. 2008 ) 14,000 — Purchases and Sales 55,000 1,40,000 Returns 5,000 3,000 Freight 3,400 — Wages 11,600 — Salaries 13,000 — Director’s Fees 3,200 — Postage 1,300 — Printing Charges 2,500 — General Expenses 4,500 — Interest on Investments — 3,300 Interim Dividend 5,000 — Investments 15,000 — Goodwill 40,000 — Buildings 85,000 — Machinery 30,000 — Furniture 16,000 — Bills receivable and Bills payable 12,000 17,000 Debtors and Creditors 24,000 15,200 Debentures — 50,000 Reserve Fund — 20,000 Profit and Loss Appropriation A/c. — 12,000 Cash at Bank 17,000 — 3,60,500 3,60,500

(a) Closing stock valued at Rs. 15,000

(b) Outstanding salary Rs. 2,000

(c) Depreciate machinery at 10% and Furniture at 5%

(d) Make a provision for tax Rs. 12,000

(e) Transfer Rs. 15,000 to Reserve fund

(f) Proposed dividend Rs. 7,500.

Prepare Final Accounts.

VIEW SOLUTION

• Question 22
Prepare an Executor’s Loan Account showing the repayment in two annual equal   instalments along with interest with imaginary figures. VIEW SOLUTION

• Question 23
Prepare a Machinery Account for two years with imaginary figures under diminishing method of depreciation. VIEW SOLUTION

• Question 24

Classify the following items into Capital and Revenue:

(a) Sale of furniture

(b) Annual whitewashing and painting expenses to buildings

(c) Sale of old newspapers

(d) Donations for construction of buildings

(e) Annual maintenance grant received from government

VIEW SOLUTION
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