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# Board Paper of Class 12-Commerce 2013 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 Single Entry System of Book-keeping? VIEW SOLUTION

• Question 4
Pass the Journal Entry for the payment of Realisation Expenses. VIEW SOLUTION

• Question 6
Name any two current assets which appear in the Balance Sheet of a company. VIEW SOLUTION

• Question 7
State two methods of charging depreciation. VIEW SOLUTION

• Question 11
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

• Question 12
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

• Question 13
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 1st 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

• Question 14
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

• Question 15
What is Computerised Accounting? Name the areas in which it is commonly used. VIEW SOLUTION

• Question 16
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.
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 31st December, 2004. VIEW SOLUTION

• Question 17
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

• Question 18
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 :

 Stock — Rs. 30,400 Debtors — Rs. 42,600 Bills Receivable — Rs. 9,000 Machinery — Rs. 15,000 Furniture — Rs. 18,000

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

• Question 19
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 30th 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

• Question 20
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

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

• Question 21
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

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

• Question 22
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

• Question 23
Prepare Profit and Loss Appropriation Account of a Company with five imaginary figures. VIEW SOLUTION

• Question 24
Prepare Machinery Account for two years with imaginary figures under Fixed Instalment method. VIEW SOLUTION
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