Board Paper of Class 12-Commerce 2013 Accountancy (SET 1) - Solutions

Uma and Leela were partners in a firm sharing profits in the ratio of 3 : 2. Their capitals were Rs. 25,000 and Rs. 20,000 respectively. It was agreed to allow interest on capitals at 10% p.a. Their respective interests on the drawings amounted to Rs. 150 and Rs. 200. Uma was allowed a salary of Rs. 500 per month.

The profits of the firm before making the above adjustments were Rs. 12,150.

Prepare Profit and Loss Appropriation Account. VIEW SOLUTION

Sachin, Dev and Burman were partners sharing profits and losses in the ratio of 4 : 3 : 2.
Dev retired from the business firm. Sachin and Burman decided to continue as equal partners. Calculate the Gain ratio of old partners. VIEW SOLUTION

Following is the Balance Sheet of Ram. Manohar and Lohia who share profits in the ratio of 2 : 2 : 1.
 

Balance Sheet as on 31.12.2004
Liabilities		Amount Rs	Assets	Amount Rs
Creditors		27,000	Cash	11,700
Bank Overdraft		7,000	Bills Receivable	26,000
Bills Payable		14,000	Debtors	21,600
Reserve fund		20,000	Stock	13,700
Capital:			Furniture	8,000
Ram	12,000		Machinery	33,000
Manohar	16,000
Lohia	18,000	46,000
		1,14,000		1,14,000

On 1^st July, 2005 Lohia died and his dependents are entitled to get the following :

i) His share of Capital and Reserve fund.

ii) His share of Profit to the date of death calculated on the basis of average profits of last two years which were 2004 – Rs. 10,500, 2003 – Rs. 9,500.

iii) His share of Goodwill which is valued at three times the average profits of the last two years.

Prepare Lohia’s Executors Account. VIEW SOLUTION

Rahul held 200 equity shares of Rs. 10 each in ABC Company, on which he had paid the following :

Rs. 2 on Application

Rs. 3 on Allotment

Rs. 3 on First Call.

Rahul could not pay the Final Call of Rs. 2 per share. Hence his shares were forfeited by the directors of the company and later reissued to Vikram at Rs. 8 per share.

Pass the necessary Journal Entries for Forfeiture and Re-issue of shares. VIEW SOLUTION

What is Computerised Accounting? Name the areas in which it is commonly used. VIEW SOLUTION

Anil is a small merchant keeping his books of accounts under Single Entry system. He gives you the following information :
 

Particulars	01.01.2004 (Rs)	31.12.2004 (Rs)
Debtors	7,800	7,200
Creditors	4,500	5,450
Bank Overdraft	6,400	–
Cash in hand	1,100	6,250
Bills Payable	–	3,000
Stock of Goods	6,000	10,000
Plant & Machinery	15,000	15,000
Motor Car	20,000	20,000
Buildings	30,000	30,000

During the year he withdrew Rs. 2,000 in cash and goods worth Rs. 500 for his personal use. On 1. 7. 2004 he introduced Rs. 10,000 towards additional capital into the business.
Adjustments:
i) Appreciate Buildings by 20%.
ii) Depreciate machinery and motor car by 5%.
iii) Provide a reserve of 5% for bad debts.
iv) Rent due but not received Rs. 1,200.
v) Allow interest on capital at 5% on opening and closing capitals.
Prepare
i) Statement of Affairs
ii) Statement of Profit and Loss
iii) Revised Statement of Affairs as at 31^st December, 2004. VIEW SOLUTION

Ashwini and Bharani are partners sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31. 12. 2011 was as follows :
 

Balance Sheet as at 31.12.2011
Liabilities		Amount Rs	Assets	Amount Rs
Creditors		10,000	Cash	25,000
Bills Payable		35,000	Bills Receivable	5,000
Reserve fund		10,000	Debtors	15,000
Capital:			Stock	19,500
Ashwini	30,000		Furniture	10,500
Bharani	10,000	40,000	Buildings	25,000
Profit & Loss A/c		5,000
		1,00,000		1,00,000

They admit Kratika into the partnership firm on 1. 1. 2012 on the following terms :

i) She pays Rs. 20,000 as capital for $\frac{1}{5}$ share and Rs. 10,000 as goodwill.

ii) Ashwini and Bharani withdrew half of the goodwill amount.

iii) Stock and furniture are reduced by 10%.

iv) A reserve of 6% is to be provided for Bad Debts.

v) Building to be appreciated by 25%.

Prepare

i) Revaluation Account

ii) Capital Accounts of the partners

iii) Balance Sheet of the new firm. VIEW SOLUTION

Ganga, Jamuna and Saraswati were equal partners in a firm. Their Balance Sheet was as follows:
 

Balance Sheet as at 31.12.2012
Liabilities		Amount Rs	Assets	Amount Rs
Creditors		50,000	Cash at Bank	25,000
Bills Payable		20,000	Stock	30,000
Bank Loan		10,000	Debtors	40,000
Reserve Fund		15,000	Bills Receivable	10,000
Capital:			Machinery	20,000
Ganga	60,000		Furniture	20,000
Jamuna	40,000		Investments	10,000
Saraswati	30,000	1,30,000	Motor Car	20,000
			Buildings	50,000
		2,25,000		2,25,000

On the above date the firm was dissolved and realisation went as follows :

i) The Assets were sold as below :
 
ii) Ganga took over the buildings at Rs. 60,000. Jamuna took over Motor Car at Rs. 26,600 and Saraswati took over the investments at Rs. 10,000.

iii) All the liabilities were paid in full.

iv) Realisation expenses are amounted to Rs. 5,000.

Prepare:

i) Realisation Account

ii) Partners’ Capital Accounts

iii) Bank Account. VIEW SOLUTION

On 1. 1. 2009 a firm purchased a second hand machinery for Rs. 40,000 and spent Rs. 10,000 for its repair and installation and decided to write-off depreciation at the rate of 10% under Diminishing Balance method.

On 1. 7. 2010, one more machinery was purchased for Rs. 25,000.

On 30^th June, 2011, the machinery which was purchased on 1. 1. 2009 was sold for Rs. 38,000.

Prepare Machinery Account and Depreciation Account for 4 years. Books are closed on December 31 every year. VIEW SOLUTION

The Trial Balance of MNT Company, Bangalore is given below :
 

Trial Balance as at 31. 12. 2011
Sl. No.	Particulars	Debit Balance (Rs)	Credit Balance (Rs)
1.	Share Capital
	(1,000 shares of Rs 10 each)	—	1,00,000
2.	Opening Stock	14,000	—
3.	Purchases	1,55,000	—
4.	Purchases Returns	—	3,000
5.	Sales	—	2,40,000
6.	Sales Returns	5,000	—
7.	Wages	15,000	—
8.	Salaries	19,200	—
9.	Postage	3,800	—
10.	Interest on Investments	—	3,300
11.	Rent	9,500	—
12.	Investments	15,000	—
13.	Goodwill	40,000	—
14.	Buildings	85,000	—
15.	Machinery	30,000	—
16.	Furniture	16,000	—
17.	Bills Receivable	12,000	—
18.	Bills Payable	—	17,000
19.	Debtors	24,000	—
20.	Creditors	—	15,200
21.	Reserve fund	—	70,000
22.	Profit & Loss App. Account	—	12,000
23.	Cash at Bank	17,000	—
		4,60,500	4,60,500

Adjustments:

i) Closing Stock Rs 25,000.

ii) Depreciate Machinery and Furniture by 10%.

iii) Proposed Dividend Rs. 20,000.

iv) Outstanding Salary Rs. 2,000.

v) Transfer Rs 20,000 to Reserve Fund.

Prepare the final accounts of MNT Company and the Balance Sheet as at 31. 12. 2011. VIEW SOLUTION

Following is the Receipts and Payments Account of Karnataka College Library.
 

Receipts and Payments Account for the year ended 31.12.2005
Dr.					Cr.
Receipts		Amount (Rs)	Payments	Amount (Rs)
To Balance b/d		3,000	By Salary	6,300
To Entrance fees		2,000	By Insurance	500
To Subscriptions		15,000	By Library Books (1. 1. 2005)	4,000
To Sale of old papers		100	By Repairs	1,300
To Rent of Lecture hall		2,700	By Furniture (1.1.2005)	6,000
To Proceeds from Lectures		1,200	By Office Expenses	1,800
To Interest		1,000	By Newspapers	600
			By Balance c/d	4,500
		25,000		25,000

Opening Assets on 1. 1. 2005 :
 

i)	Buildings	—	Rs.	50,000
ii)	Investments	—	Rs.	10,000
iii)	Library Books	—	Rs.	18,000
iv)	Furniture	—	Rs.	8,000
v)	Cash	—	Rs.	3,000

Adjustments

i) Subscriptions outstanding for the current year is Rs. 2,500.

ii) Rs. 1,000, towards the rent of lecture hall is due.

iii) A sum of Rs. 100 was prepaid for insurance.

iv) Depreciate buildings at 5%.

v) Library Books and furniture are to be depreciated at 10%.

Prepare:

i) Income and Expenditure Account.

ii) Balance Sheet. VIEW SOLUTION

How do you treat the following in the absence of Partnership Deed?

a) Interest on Capital

b) Interest on Drawings

c) Interest on Loan

d) Distribution of Profit or Loss

e) Salary to the partners. VIEW SOLUTION

Prepare Profit and Loss Appropriation Account of a Company with five imaginary figures. VIEW SOLUTION

Prepare Machinery Account for two years with imaginary figures under Fixed Instalment method. VIEW SOLUTION