Board Paper of Class 12-Commerce 2011 Accountancy (SET 1) - Solutions

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.

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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

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

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.

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

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.

Adjustments:

(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

Madan, Mohan and Murthy were partners in a firm sharing profits and losses in the ratio of $\frac{2}{5}, \frac{2}{5}$ 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.

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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

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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.

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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

Adjustments:

(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.

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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

Adjustments:

(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.

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

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

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