Board Paper of Class 12-Commerce 2014 Accountancy (SET 1) - Solutions
i. This paper consists of 7 questions.
ii. All the questions are compulsory.
iii. Question No. 1 carries 15 marks.
iv. Question No. 2 carries 8 marks.
v. Question Nos. 3, 4 and 5 carry 10 marks each.
vi. Question No. 6 carries 12 marks.
vii. Question No. 7 carries 15 marks.
viii. Use of calculator is prohibited.
i. Question No. 1 consists of five parts (A, B, C, D and E), out of which any three are to be attempted.
ii. There exists an internal choice in question nos. 2, 3 and 5.
- Question 1
Q.1 (A) Answer the following in ‘one’ sentence each: [5 Marks]
(1) What is ‘balance sheet’?VIEW SOLUTION
(2) What is ‘deficit’?
(3) What is ‘Sacrifice ratio’?
(4) What is ‘allotment of shares’?
(5) Who is a ‘drawer’?
- Question 2
Q.1 (B) Write a word / term / phrase which can substitute each of the following statements: [5 Marks]
(1) Debit balance on realisation account.VIEW SOLUTION
(2) The three extra days which are allowed over and above the period of the bill.
(3) Expenses which are due but not paid at the end of the year.
(4) A statement similar to a balance sheet.
(5) An asset which can be converted into cash immediately.
- Question 3
Q.1 (C) Select the most appropriate answer from the alternatives given below and rewrite the sentences: [5 Marks]
(1) The profit or loss from revaluation on retirement of partners is shared by _____________(a) all the partners
(b) the remaining partners
(c) only the retiring partners
(d) none of these
(2) Purchase of stationery is a ________ expenditure.(a) capital
(c) long term
(d) deferred revenue
(3) _____________ means payment of the bill before due date.(a) Discounting of bill
(b) Retirement of bill
(c) Renewal of bill
(d) Endorsement of bill
(4) Generally incomplete records are maintained by the __________(a) trader
(5) The interest on drawings is transferred to ___________ side of the profit and loss account.(a) debitVIEW SOLUTION
- Question 4
Q.1 (D) State whether the following statements are True or False: [5 Marks]
(1) The debenture holder is the owner of the company.VIEW SOLUTION
(2) The person, to whom or as per his order amount of bill is payable, is a payee.
(3) Government is not interested in the analysis of financial statement.
(4) On dissolution, the cash or bank account is closed automatically.
(5) A bill can’t be deposited into a bank for collection.
- Question 5
Q.1 (E) Prepare a specimen of a Bill of Exchange from following information. [5 Marks]
Drawer: Rahul Chaudhari, 105 Ghodbunder Road, ThaneVIEW SOLUTION
Drawee: Prakash Patil, 207, Ganga Road, Nashik
Payee: Sonal Chaudhari, M.G. Road, Dhule
Period of bill: 60 days
Amount of bill: Rs. 10,000
Date of bill : 15th December, 2013
Date of acceptance: 18th December, 2013
- Question 6
Q.2 Mrs. Asha keeps her books on Single Entry System and gives the following information:
Cash at Bank 10,000 64,000 Sundry debtors 50,000 80,000 Stock in Trade 60,000 10,000 Furniture 40,000 40,000 Machinery 1,00,000 1,00,000 Bills Payable 10,000 10,000 Sundry Creditors 30,000 40,000
Mrs. Asha withdrew from business Rs. 30,000 for personal use. She further introduced fresh capital of Rs. 50,000.
Depreciation is to be charged @ 10% p.a. on furniture and machinery.
(a) Statement of affairs as on 31.3.2011
(b) Statement of affairs as on 31.3.2012
(c) Statement of Profit or Loss for the year ending 31.3.2012.
Q.2 (A) What are the investing activities of cash flow? [4 Marks]Q.2 (B) State the limitations of analysis of financial statements. [4 Marks] VIEW SOLUTION
- Question 7
Q.3 Anil and Sunil were partners sharing profits and losses in the ratio of 2:1 respectively. Their Balance Sheet was as follows: [10 Marks]
Balance Sheet as on 31st March, 2010 Liabilities Amount (Rs) Assets Amount (Rs) Capital A/c Cash at Bank 4,000 Anil 24,000 Debtors 15,000 Sunil 16,000 Stock 23,500 Trade Creditors 26,000 Furniture 5,000 Anil’s Loan A/c 6,500 Building 25,000 72,500 72,500
On 1st April, 2010, Ram is admitted in the partnership on the following terms:
(1) Ram should bring in cash of Rs. 12,000 as capital for 1/5th share in future profit.
(2) Goodwill A/c is raised in the books of the firm for Rs. 4,500.
(3) Building is revalued at Rs. 28,000 and the value of stock be reduced by Rs. 1,500.
(4) Reserve for doubtful debts be provided at 5% on debtors.
(a) Profit and Loss Adjustment account.
(b) Capital Accounts of partners.
(c) Balance Sheet of the new firm.
Q.3 Supriya, Surekha and Sujata were partners sharing profits and Losses in the ration of 2:2:1 respectively. Their Balance Sheet as on 31st March, 2012 was as follows: [10 Marks]
Balance Sheet as on 31st march, 2012 Liabilities Amount (Rs) Assets Amount
Capital A/c Land and Building 50,000 Supriya 40,000 Stock 30,000 Surekha 40,000Debtors 37,500 Sujata 20,000(–) R.D.D. 2,500 35,000 Reserve Fund 10,000 Furniture 10,000 Creditors 16,000 Cash at Bank 5,000 Outstanding Expenses 4,000 1,30,000 1,30,000
Sujata died on 1st July, 2012 and the adjustments were agreed to as per the deed as follows:
(1) Land and Building to be valued at Rs. 60,000 and all debtors were good.
(2) Stock be depreciated by 10%.
(3) The drawings of Sujata up to the date of her death amounted to Rs. 2,000.
(4) Interest on capital was to be allowed at 10% p.a.
(5) The deceased partner’s share of goodwill is to be valued at 2 years’ purchase of average profit of last 3 years.The profits were:
2009 – 10 = Rs. 15,000
2010 – 11 = Rs. 17,000
2011 – 12 = Rs. 13,000(6) The deceased partner’s share of profit up to the date of her death should be based on average profit of the last two years.
You are required to prepare:(a) Profit and Loss Adjustment Account.VIEW SOLUTION
(b) Sujata’s Capital Account showing the balance payable to her Executor’s Loan Account.
(c) Working notes for calculation of (a) Goodwill and (b) Profit till the date of Sujata’s death.
- Question 8
Q.4 On 14th May, 2012 Rohit sold goods on credit to Devidas for Rs. 30,000. On the same date Rohit draws a bill on Devidas for Rs. 30,000 at 4 months. Devidas accepted it and returned to Rohit. On 17th June, 2012 Rohit discounted the bill with his bank @ 10% p.a. On due date Devidas finds himself unable to make payment of the bill and requests Rohit to renew it. Rohit accepted the proposal on the condition that Devidas should pay Rs. 10,000 on account along with interest Rs. 500 in cash and should accept a new bill for the balance at 2 months. These arrangements were carried through. Give Journal Entries in the books of Rohit. [10 Marks] VIEW SOLUTION
- Question 9
Q.5 Uday and Prabhakar are partners sharing profits and losses in the proportion of 3/5 and 2/5 respectively. They dissolved their partnership firm on 31st March, 2012 when their financial position was as under. [10 Marks]
Balance Sheet as on 31st March, 2012 Liabilities Amount
Sundry Creditors 15,000 Cash at bank 3,000 Uday’s Wife’s Loan 30,000Debtors 67,500 Capital A/c(–) R.D.D. 7,500 60,000 Uday 1,38,000 Stock 1,35,000 Prabhakar 90,000 Machinery 45,000 Furniture 30,000 2,73,000 2,73,000The assets were realised as under:
Goodwill Rs. 15,000, Stock Rs. 1,20,000 and Debtors Rs. 54,000.
Machinery was taken over by Prabhakar at Rs. 40,000 and furniture by Uday at book value.
Uday agreed to discharge his wife’s loan.
The creditors were paid at a rebate of Rs. 3,000
The expenses of dissolution amounted to Rs. 6,000
Pass necessary Journal Entries in the books of the firm.
Q.5 Milind and Co. Ltd. issued 20,000 equity shares of Rs. 100 each payable as under:
[10 Marks]On Application Rs. 20 per share.VIEW SOLUTION
On Allotment Rs. 35 per share.
On First Call Rs. 25 per share.
On Second Call Rs. 20 per share.
The company received applications for 30,000 equity shares. Applications for 20,000 shares were accepted and allotted shares. Applications for 10,000 shares were rejected and refunded in full. The money due on allotment and both the calls was received in full. The expenses of issue amounted to Rs. 5,000. Pass necessary journal entries in the books of the company.
- Question 10
Q.6 From the following Balance Sheet and Receipts and Payments A/c of Vidya Mandir High School, Alibag. Prepare Income and Expenditure Account for the year ended 31st March, 2008 and Balance Sheet as on that date. [12 Marks]
Balance Sheet as on 1st April, 2007 Liabilities Amount (Rs) Assets Amount (Rs) Entrance Fees 6,000 Furniture 16,800 Capital Fund 1,03,800 Laboratory 20,000 Library 25,000 Investment 40,000 Cash in hand 1,000 Cash at bank 3,000 Outstanding Tuition Fees 4,000 1,09,800 1,09,800 Receipts and Payments Account for the year ended
31st March, 2008
Receipts Amount (Rs) Payments Amount (Rs) To Balance b/d By Furniture Purchased 5,400 Cash in hand 1,000 By Salaries 60,000 Cash at bank 3,000 By Rent 28,000 To Tuition Fees 80,000 By Sundry Expenses 15,200 To Term Fees 26,200 By Annual Gathering Expenses 11,300 To Government Grant 16,000 By Insurance 4,000 To Donation of Library 30,000 By Closing Balance To Interest on Investment 2,000 Cash at bank 34,300 1,58,200 1,58,200
1. Tuition fees still receivable are Rs. 10,000.Depreciation to be charged on the closing balances of the assets. VIEW SOLUTION
2. Salaries still payable are Rs. 30,000
3. Insurance premium is paid for one year ending 30.9.2008.
4. Rent paid in advance Rs. 4,000.
5. Depreciate furniture and library at 10%.
- Question 11
Q.7 Jitesh and Lailesh are in partnership sharing profits and losses in the ratio of 2:1. From the following Trial Balance and adjustments given below, you are required to prepare Trading and Profit and Loss A/c for the year ended 31st March, 2013 and the Balance Sheet as on that date:
Trial Balance as on 31st March, 2013 Particulars Debit
Prepaid Insurance 800 Insurance 2,000 R.B.D.D. 1,000 Discount 800 Postage and telephone 3,200 Salaries 56,000 Debtors and Creditors 66,000 68,000 Wages 24,000 Opening Stock 48,000 Carriage 1,000 Purchases and Sales 1,93,200 3,01,600 Return inwards and outwards 5,600 9,200 Bank overdraft 1,20,800 Plant & Machinery 24,000 Land & Building 1,76,000 Capital Jitesh 52,000 Lailesh 48,000 Total 6,00,600 6,00,600
Adjustments:1. Write off Rs. 2,000 for bad debts and provide R.B.D.D. 5% on debtors.
2. Goods worth Rs. 4,000 were distributed as free samples.
3. Closing stock on 31.03.2013 was valued at the cost Rs. 56,000 while its market price was Rs. 60,000.
4. Salaries were outstanding Rs. 2,000.
5. Depreciate:Land and Building @ 5% p.a. andVIEW SOLUTION
Plant & Machinery @ 10% p.a.