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# Board Paper of Class 12-Commerce 2011 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
State any two differences between Statement of Affairs and Balance Sheet. VIEW SOLUTION

• Question 3
Give Journal entry for transferring profit on Revaluation Account in admission of a partner. VIEW SOLUTION

• Question 6
State any two items which are shown under the heading 'Fixed Assets'. VIEW SOLUTION

• Question 8
Give the meaning of capital expenditure. VIEW SOLUTION

• Question 11

On 1.1. 2010 Krishna and Balarama entered into partnership contributing capitals of Rs. 1,00,000 and Rs. 75,000 respectively and sharing profits and losses in the ratio of 3 : 2.

Balarama is to be allowed a salary of Rs. 20,000 per annum. Interest on capitals is to be allowed at 5% p.a. and 6% p.a. interest is to be charged on drawings.

During the year, Krishna withdrew Rs. 15,000 and Balarama withdrew Rs. 18,000 for personal use, interest on drawings being Rs. 350 and Rs. 250 respectively. During the year, they earned a profit of Rs. 52,900 before noting the above adjustments.

Prepare Profit & Loss Appropriation A/ c.

VIEW SOLUTION

• Question 12

Uma and Suma are partners sharing profits and losses in the proportion of 3 : 2 respectively. They agree to admit Rashmi as a new partner. Future profits and losses are to be shared between all partners in the proportion of 8: 7: 5 respectively.

Find out the sacrifice ratio of old partners. VIEW SOLUTION

• Question 13

Black, White and Red are partners sharing profits and losses in the ratio of 2 : 2 : 1.

Their Balance Sheet as on 31.12.2009 was as under:

 Balance Sheet as on 31.12.2009 Liabilities Amount (Rs) Assets Amount (Rs) Creditors 60,000 Cash 15,000 Bills Payable 30,000 Stock 45,000 Reserve fund 60,000 Debtors 60,000 Capitals: Furniture 30,000 Black 60,000 Buildings 1,50,000 White 60,000 Red 30,000 1,50,000 3,00,000 3,00,000

Black died on 01.07.2010. His executors were entitled to the following:

(a) His capital as on the date of death

(b) His share of reserve fund.

(c) His share of Goodwill is Goodwill of the firm is valued at Rs. 1,50,000

(d) Interest on capital at 9% p.a.

(e) Profit till the date of death based on the previous year profit. The profit for the year 2009 was Rs. 75,000

Prepare Black's capital account. VIEW SOLUTION

• Question 14

On 01.01.2008 the directors of Balaji Company Limited forfeited 600 equity shares of Rs. 100 each for non-payment of first call money of Rs. 25 per share and final call money of Rs. 15 per share. On 01.02.2008, they were reissued the same at Rs. 88 per share as fully paid up.

Write the necessary Journal entries.

VIEW SOLUTION

• Question 15
Write any six differences between manual accounting and computerised accounting. VIEW SOLUTION

• Question 16
Sri Bharath kept his books under single entry system. He provides the following information:
 Particulars As on 01.01.2009  (Rs) As on 31.12.2009 (Rs) Cash 10,000 16,000 Bank overdraft 20,000 14,000 Bills receivable 16,000 20,000 Debtors 30,000 40,000 Stock 24,000 28,000 Furniture 20,000 20,000 Machinery 30,000 30,000 Bills Payable 6,000 10,000 Creditors 14,000 16,000 Buildings 50,000 50,000

During the year he has withdrawn cash Rs, 13,000 and goods worth Rs. 7,000 for his personal use. He has also introduced Rs. 12,000 as an additional capital on 01.04.2009.

(a) Reserve 5% on debtors for bad debts

(b) Allow interest on capital at 12% p.a.

(c) Depreciate machinery by 10% p.a. and furniture by 5% p.a.

(d) Appreciate buildings by 20% p.a.

(e) Salary payable Rs. 1,000 and commission receivable Rs. 2,000.

Prepare:

(i) Statement of affairs

(ii) Statement of profit or loss

(iii) Revised statement of affairs. VIEW SOLUTION

• Question 17

Madan, Mohan and Murthy were partners in a firm sharing profits and losses in the ratio of  and $\frac{1}{5}$ respectively. The following was their Balance Sheet as on 31.03.2009:

 Balance Sheet as on 31.03.2009 Liabilities Amount (Rs) Assets Amount (Rs) Creditors 30,000 Cash 14,500 Bills payable 15,000 Debtors 30,000 Reserve fund 30,000 (-) Reserve 1,500 28,500 Profit & Loss A/c 10,000 Stock 45,000 Capitals: Machinery 60,000 Madan 60,000 Motor van 12,000 Mohan 45,000 Buildings 60,000 Murthy 30,000 1,35,000 2,20,000 2,20,000

Mohan retires on the above date subject to the following adjustments:

(a) Machinery is to be depreciated by 10% and Motor van by 15%

(b) Stock is to be appreciated by 20% and Buildings by 10%

(c) Provision for doubtful debts is to be increased by Rs. 1,200

(d) Goodwill of the firm is to be valued at Rs. 36,000 and is to be shown in the Balance Sheet of the continuing partners.

Prepare:

(i) Revaluation Account

(ii) Partners' Capital Accounts

(iii) Balance Sheet of continuing partners.

VIEW SOLUTION

• Question 18
Kavya, Kavitha and Karishma are partners sharing profits and losses in the ratio of 3 : 2 : 1. They agreed to dissolve their firm as on 31.12.2007 on which date the Balance Sheet was as follows:
 Balance Sheet as on 31.12.2007 Liabilities Amount (Rs) Assets Amount (Rs) Creditors 60,000 Cash at Bank 30,000 Bills payable 18,000 Bill receivable 24,000 Kavya's loan 40,000 Stock 40,000 Reserve Fund 36,000 Debtors 80,000 Capitals: Motor car 20,000 Kavya 90,000 Investments 30,000 Kavitha 60,000 Furniture 26,000 Karishma 30,000 1,80,000 Machinery 60,000 Profit & Loss A/c 24,000 3,34,000 3,34,000

(a) Assets realised as follows:

Stock Rs. 44,000, Debtors Rs. 90,000, Machinery Rs. 56,000 and B/R Rs. 20,000

(b) Furniture is taken over by Kavya at Rs. 30,000, Kavitha took over investments at Rs. 40,000 and Karishma took over Motor car at Rs. 14,600.

(c) Creditors and Bills payable paid off at 10% discount.

(d) Realisation expenses amounted to Rs 8,000.

Prepare:

(i) Realisation Account

(ii) Partners' Capital Accounts

(iii) Bank Account

VIEW SOLUTION

• Question 19

On 01.01.2006 a firm acquired a lease costing Rs. 50,000 for a term of 4 years. It was proposed to depreciate it on the annuity method charging interest at 6% per annum. With reference to the annuity table, to write off Re. 1 at 6% over a period of 4 years the amount to be charged is 0.288591.

Show Lease account and Interest account for all four years.

VIEW SOLUTION

• Question 20
Following is the Trial Balance of Praja Company Limited as on 31.03.2010:
 Trial Balance as on 31.03.2010 S. No. Particulars Debit Amount (Rs) Credit Amount (Rs) 1. Share capital (2400 shares of Rs. 100 each) - 2,40,000 2. Reserve fund - 15,200 3. Stock (01.04.2009) 32,000 - 4. Purchases and Sales 1,20,000 2,80,000 5. Returns 8,000 6,000 6. Wages 34,000 -. 7. Freight 8,000 - 8. Salaries 24,000 - 9. Sundry expenses 24,000 - 10. Discounts 10,000 6,000 11. Bill receivable 4,000 - 12. Debtors and Creditors 56,000 22,800 13. Land and Buildings 80,000 - 14. Preliminary expenses 29,600 - 15. Machinery 32,000 - 16. Furniture 46,000 - 17. Investments 36,000 - 18. Cash in hand 18,400 - 19. Cash at Bank 24,000 - 20. Loose Tools 40,000 - 21. Goodwill 40,000 - 22. Loan - 40,000 23. Profit & Loss Appropriation A/ c - 16,000 24. Debentures - 40,000 Total 6,66,000 6,66,000

(a) Closing stock Rs. 48,000

(b) Depreciate machinery at 5% p.a.

(c) Write off Rs. 4,800 as bad debts.

(d) Write off Rs. 13,600 from preliminary expenses

(e) Provide for dividend Rs. 28,000

(f) Transfer Rs. 4,000 to Reserve fund.

Prepare Final accounts of the company is statutory form.

VIEW SOLUTION

• Question 21
Following is the opening Balance Sheet and Receipts and Payments are related to Lions Club, Bellary:
 Opening Balance Sheet as on 31.12.2007 Liabilities Amount (Rs) Assets Amount (Rs) Capital fund Subscription for 2008 O/s Office expenses Bank loan 1,50,000 15,000 6,000 69,000 Buildings Furniture Sports materials O/s Subscription O/s Rent Cash 1,35,000 45,000 30,000 15,000 6,000 9,000 2,40,000 2,40,000

 Receipts and Payments A/c for the year ended 31.12.2008 Receipts Amount (Rs) Payments Amount (Rs) To Cash Balance as on 01.01.2008 9,000 By Office expenses To Subscriptions 2007 6,000 2007 15,000 2008 24,000 30,000 2008 45,000 By Salary 36,000 2009 6,000 66,000 By Subscriptions to newspapers 9,000 To Entrance fee 15,000 By Bank loan paid 39,000 To Rent 30,000 By Sports material 15,000 To Sale of old newspapers 3,000 By Cash balance as on 31.12.2008 6,000 To Donations 12,000 1,35,000 1,35,000

(a) Subscriptions O/s for current year Rs. 9,000

(b) Salary outstanding Rs. 3,000

(c) Depreciate sports materials by Rs. 6,000

(d) Half of the donations and entire entrance fee are to be capitalised.

(e) Appreciate buildings by Rs. 15,000

Prepare:

(i) Income and Expenditure Account

(ii) Balance sheet as on 31.12.2008.

VIEW SOLUTION

• Question 22
Prepare Capital accounts of two partners under fluctuating capital system with five imaginary figures. VIEW SOLUTION

• Question 23
Prepare an Executor's loan account with imaginary figures, assuming that his account would be settled in two annual equal instalments along with interest. VIEW SOLUTION

• Question 24

Classify the following items into Capital and Revenue:

(a) Sale of sports materials

(b) Purchase of computer for office use

(c) Sale of old newspapers and periodicals

(d) Benefit show expenses

(e) Honorarium paid to a surgeon by a hospital VIEW SOLUTION
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