Board Paper of Class 12-Commerce 2014 Accountancy (SET 1) - Solutions

Q.1 (A) Answer in one sentence only:                                      [5 Marks]

2. What is 'due date of a bill'?

4. What do you mean by 'sacrifice ratio'?

Q.1 (B) Write the word / term/ phrase which can substitute each of the following statement:    [5 Marks]        

2. The excess of total assets over total liabilities of a 'not for profit concern'.

4. Transfer of title of a bill from a debtor to a creditor.

Q.1 (C) Select the most appropriate alternative from the given below and rewrite the statement.                                        [5 Marks]

1. When shares are forfeited, share capital account is _____________.

a. debited

c. adjusted

2. A bill drawn and accepted on 23rd November, 2012 for two months will payable on __________.

a. 23rd January, 2012

c. 25th January, 2013

3. If the opening capital is Rs. 80,000, closing capital is Rs. 1,80,000, withdrawals are Rs. 10,000 and additional capital brought in is Rs. 20,000, the profit will be Rs. ______________.

a. 90,000

c. 70,000

4. Assets and liabilities are transferred to Realisation Account at their _________ value.

a. market

c. sale

5. Share of profit or a deceased partner till the date of his death is ____________

a. debited to profit and loss adjustment account

c. debited to profit and loss suspense account.

Q.1 (D) State whether the following statements are True or False:    [5 Marks]

2. The issue of debenture more than the face value is termed as issue of debenture at par.

4. Ratio analysis is useful for inter – firm comparison.

Q.1 (E) Prepare a bill of exchange from the following details:                                        [5 Marks]

Drawee : Nandkumar Sharma, Laxmi Road, Pune

Period of bill: 90 days

Date of Bill: 17th February, 2014

Accepted for: Rs. 20,000 only.

Q.2 Mr. Keshav keeps his books on single entry system and disclosed the following information of his business.

Additional information

(1) Mr. Keshav transferred Rs. 3,000 per month during the first half year and Rs. 2000 per month for the second half year from business account to his personal account.

(2) He also took goods worth Rs. 7,000 for private use.

(3) He sold his private asset for Rs. 27,000 and brought the proceeds into his business.

(4) Furniture to be depreciated by 10%

(5) Provide reserve for doubtful debts at 5% on debtors.

Prepare:

(i) Opening statement of affairs.

(ii) Closing statement of affairs.

(iii) Statement of Profit and Loss for the year ended 31st March, 2013.

Or

Q.2 A. What are the different 'Cash inflows' and 'Cash outflows' of operating activity?

Q.2 B. State and explain any 'four objectives' of financial statement analysis from business point of view                    [5 Marks]

Q.3 Mrs. Shehal and Mrs. Meenal are equal partners in a business. Their balance sheet is as follows.

They agreed to admit Mr. Komal on 1^st April, 2013 on the following terms:

(1) Komal should bring Rs. 50,000 towards her capital for one fourth (1/4^th) Share in future profit.

(2) Goodwill to be raised in the books of the firm for Rs. 40,000.

(3) R.D.D. to be maintained at 5% on debtors.

(4) Premises to be valued at Rs. 30,000 and equipments to be written off fully.

(5) Creditors allowed a discount of Rs. 1,000 and they were paid off immediately.

Prepare: Profit and Loss Adjustment Account, Partner's Capital Accounts and Balance Sheet of the new firm.

Or

Q.3 Pravin, Prakash and Paresh were partners sharing profits and losses in the proportion to their capitals. Their balance sheet of the firm on 31^st March, 2013 was as under.

Paresh died on 1^st August, 2013 and the following adjustments were made:

(1) Assets were valued as – Land and building Rs. 88,000. Investments Rs. 36,000 and Stock Rs. 34,000.

(2) All debtors were good.

(3) Goodwill of the firm valued at two times the average profit of the last 4 years' profit.

(4) Paresh's share of profit upto his death to be calculated on the basis of average profit of the last two years.

(5) Profits for the last four years were: Rs. 12,000, Rs. 24,000, Rs. 14,000 and Rs. 22,000.

Prepare:

i. Profit and Loss Adjustment Account.

ii. Paresh's Capital Account, showing the amount payable to his executor.

iii. Give working of Paresh's share in Goodwill and Profit.         [10 Marks]

1. Badrinath informs Kedarnath that Aloknath's Acceptance of Rs. 16,000 endorsed to Badrinath has been dishonoured and noting charges amounted to Rs. 500.

2. Somnath renews his acceptance of Rs. 14,400 to Kedarnath by paying cash Rs. 4,400 and accepting a new bill for 2 months for the balance plus interest @ 12% p.a.

3. Vishwanath retired his acceptance for Rs. 10,500 to Kedarnath by paying in cash Rs. 10,250

4. Recovered only 50% of the amount due from his private estate of Ramnath, who declared as insolvent, against his bill of Rs. 12,500.                                          [10 Marks]

Q.5 Devendra and Ganesh were partners sharing profits and losses in the ratio of 3 : 2. They dissolved the partnership firm on 31^st March, 2013 when their position was as follows:
The assets realised as follows:

(1) Debtors Rs. 45,000, stock Rs. 1,00,000 and goodwill Rs. 12,500

(2) Motor car was taken over by Devendra for Rs. 35,000 and furniture by Ganesh for Rs. 30,000.

(3) The creditors were paid Rs. 11,250 in full settlement.

(4) The realisation expenses were Rs. 5,000.

Pass necessary journal entries in the books of the firm.

Or

Q.5 Khandelwal Co. Ltd. made an issue of 40,000 equity shares of Rs. 20 each, payable as follows:

Allotment: Rs. 10 per share.

Second and Final Call: Rs. 2 per share.

Pass Journal Entries for the above transactions in the books of Khandelwal Co. Ltd. [10 Marks]

Q.6 Following is the Receipts and Payments Account of Chamber of Commerce, Amaravati for the year ending 31^st March, 2012 and some additional information.                        [12 Marks]

Q.7 Miss Meena and Miss Reena are in partnership sharing profits and losses in the ratio of 3 : 2.

From the following trial balance and adjustments, you are required to prepare Trading Account, Profit and Loss Account for the year ended 31^st March, 2013 and Balance Sheet as on that date.
Trial Balance as on 31.03.2013

Adjustments:

1. Stock on hand on 31^st March, 2013 was valued at Rs. 1,10,000.

2. Depreciate plant and machinery at 10% p.a.

3. Create reserve for doubtful debts at 5% on sundry debtors.

4. Salaries include Rs. 2,500 as advance to workers.

5. Partners are allowed interest at 5% p.a. on their capitals.               [15 Marks]