AHSEC Class 12: Accountancy Solved Question Papers' 2016 | AHSEC | SOLVED QUESTION PAPERS

The figures in the margin indicate full marks for the questions.

1. (a) Fill in the blanks with appropriate word:                     1x4=4

(b) Choose the correct alternative:                          1x2=2

(c) State whether the following statements are true or false:                      1x2=2

2. State the meaning of Not-for-Profit organization.                        2

3. A and B are partners sharing profits in the ratio 3: 2. C is admitted as a new partner for 1/5^th share in the future profits. Calculate the new profit sharing ratio.          2

Solution:

Let the total share be 1

\C’s share = 1 – 1/5 = 4/5

\A’s new share = 4/5 x 3/5 = 12/25

\B’s new share = 4/5 x 2/5 = 8/25

\New Profit sharing ratio = 12/25 : 8/25 : 4/5

= 12 : 8 : 20

4. Mention any two distinctions between shares and debentures.          2

Ans: Refer Q.N. 22 (Or), asked in 2017 exam (Last page of the note)

5. A Ltd. forfeited 500 shares of Rs. 10/- each, Rs. 8/- paid, for non-payment of final call of Rs. 2/- each. Give Journal entry of forfeiture of share.                   2

Solution:

Journal Entries

In the books of A Ltd.

6. A and B are partners in a firm sharing profits in the ratio of 3: 2. Their capitals as on April, 1, 2014 were Rs. 2, 00,000/- and Rs. 1, 80,000/- respectively. On October 1, 2014, A introduced an additional capital of Rs. 50,000 and on January, 1, 2015, B introduced Rs. 70,000/-. Interest on capital is allowed at 10% p.a. Calculate interest on capital for both the partners for the year ending March, 31, 2015.                                      2

Solution:

Calculation of Interest on Capital of A

1-4-2014             = 2,00,000 x 10% x 1 = 20,000

Add: 1-10-2014 = 50,000 x 10% x 6/12 = 2,500

22,500

Calculation of Interest on Capital of B

1-4-2014             = 1,80,000 x 10% x 1 = 18,000

Add: 1-10-2014 = 70,000 x 10% x 3/12 = 1,750

19,750

7. Explain any three objectives of preparing a Cash Flow statement.                      1x3=3

Ans. Refer Question No. 18 (or), of 2012

Or

From the following details, calculate Current Ratio and Liquid Ratio:                                         3

Solution:

Current Ratio = Current Assets/Current Liabilities

Liquid Ratio = Liquid Assets/Current Liabilities

Current Assets = Prepaid Exp. + Stock + Sundry Debtors

= 4,000 + 80,000 + 1,00,000

= 1,84,000

Current Liabilities = Bank Overdraft + Sundry Creditors

= 20,000 + 76,000

= 96,000

\ Current Ratio = 1,84,000/96,000 = 23 : 12

Liquid Assets = Debtors = 1,00,000

\ Liquid Ratio = 1,00,000/96,000 = 1.042 : 1

8. Mention any three items that can be shown under the heading “Reserves & Surplus” in a company’s Balance Sheet. 1x3=3

Ans: Reserves and Surplus: Under this head the following items are shown:

Or

Give three objectives of financial statement analysis.                   1x3=3

Ans. Objectives of Financial Statements:

9. What is meant by Comparative Statements? What do they show?                      1+2=3

Ans. Comparative Financial Statements: Comparative Financial Statements is primarily an analytical study of the different items shown in the Income Statement and Balance Sheet over a period of time. The Financial Statements reveals the trading results and financial statement of a concern. But the Comparative Statement presents a review of two or more years. It shows the absolute change and changes in terms of percentage from one period to another. Comparison to data can be done in two ways:

(i) Financial statements of an enterprise for two or more accounting years (Inter-period Comparison)

(ii) Financial statements of different enterprises for the same accounting year (Inter-firm Comparison).

Comparative statements are of two types – “Comparative balance sheets and Comparative income statements”.

Or

Explain the Capitalization method of valuation of Goodwill.

Ans. Capitalization Method: Under this method, the value of goodwill is obtained by capitalizing the average profit or super profit of the basis of normal rate.

Value of goodwill under capitalization of average profit is

Goodwill = (Average normal profit of the business/ rate of return) – capital employed

Value of goodwill under capitalization of super profit is

Goodwill = Super profit/ rate of return

10. Mention any three distinctions between Fund-based Accounting and Non-fund based Accounting.                  1x3=3

Ans. Difference between fund based and non fund based accounting

Or

Mention three features of a non-trading organization.                   3

Ans: Following are the main features of Receipts and Payments Account:          

11. Mention any three limitations of Financial Statements.        1x3=3

Ans: Refer Q.N. 16 (or), Asked in 2012 exam

12. From the following Receipts and Payments Account for the year ended 31^st December, 2015 and other details of the Sankardev Club, prepare an Income and Expenditure Account for the year ended 31^st December, 2015:      5

Additional Information:

Solution:

Income & Expenditure A/c of Sankardev Club

For the year ended 31-12-2015

Or

Mention any five distinctions between Receipts and Payments Account and Income and Expenditure Account.     5

Ans: Refer Q.N. 12 (or), Asked in 2012 exam

13. From the following details, calculate cash from Investing and Financing Activities:                      5

During the year, machinery costing Rs. 15,000/- was sold at a loss of Rs. 3,000. Depreciation on machinery charges during the year amounted to Rs. 9,000.

Calculation of cash flow from Investing Activities

Calculation of cash flow from Financing Activities

Working Note:

(1)

Machinery A/c (WDV)

(2) Depreciation on Machinery sold = 9,000 – 3,000 = 6,000

(3) Calculation of Sale Value:

Calculation of cash flow from Investing Activities

Or

Explain any five advantages of Cash Flow Statement.                      1x5=5

Ans. ADVANTAGES of Cash Flow Statement                                              

14. From the following details, calculate Gross Profit and Sales:                               2 ½ x2=5

Average Stock = 60,000/-

Stock Turnover Ratio = 6 times.

Selling Price is 20% above cost.

Solution:

Stock Turnover Ratio = 6 Times

Þ Cost of goods sold/Average Stock = 6

Þ Cost of goods sold/60,000 = 6

Þ Cost of goods sold= 3,60,000

And, GP = 20% of Cost of goods sold

= 20/100 x 3,60,000

= 72,000

\ Sales = Cost of goods sold + GP

= 3,60,000 + 72,000

= 4,32,000

Or

Name any five ratios used for analyzing the liquidity position of a Firm.                  1x5=5

Ans:   A) Types of ratio according to traditional classification:

B) Functional classification of ratio: Under this classification, ratios may be grouped in the following types:

a) Liquidity Ratios: Liquidity ratios are calculated to have indications about the short term solvency of the business, i.e. the firm’s ability to meet its current obligations. For example: Current ratio, liquid ratio and absolute liquid ratio falls under this group.

b) Solvency Ratios or leverage ratios: Solvency ratios are calculated to determine the ability of the business to service its debt in the long Run. For example: Debt-equity ratio, total asset to debt ratio, Proprietory ratio and capital gearing ratio are covered under this group.

c) Efficiency or turnover or activity Ratios: These ratios are calculated to study the efficiency with which the resources of the unit have been used. For example: Inventory turnover ratio, debtor’s turnover ratio, creditor’s turnover ratio and fixed assets turnover ratios are covered under this group.       

d) Profitability Ratios: These ratios measure the operating efficiency i.e. the financial result of the unit during the accounting period. For example: gross profit ratio, net profit ratio, operating ratio, operating profit ratio and return on investment are covered under this group.

15. Partha, Pranoy and Prasanna are partners sharing profits and losses in the ratio of 3: 2: 1. On 31^st March, 2015, their Balance Sheet stood as follows:

Balance Sheet

Pranoy retires on that date under the following terms:

Give necessary Journal entries in the books of the firm.                                                                                5

Solution:

Journal Entries

In the books of firm

Working Note:

Gaining Ratio = 3/4 – 3/6 : 1/4 – 1/6

=( 9/12 – 6/12) : (3/12 – 2/12)

=3/12 : 1/12

\Partha’s share = 3/12 x 36,000 = 9,000

Prasanna’s share = 1/12 x 36,000 = 3,000

Or

Explain the procedure of forfeiture of shares.                    5

            The directors of the company have the power to re-issue the forfeited shares on such terms as it think fit. Thus the forfeited shares can be reissued at par, or at premium or at discount. However, if the forfeited shares are reissued at discount, the amount of discount should not exceed the amount credited to the share forfeiture A/c. If the discount allowed on reissue is less than the forfeited amount there will be the surplus left in the share forfeited A/c. This surplus will be of the nature of capital profits so it will be transferred to the Capital Reserve A/c.

Procedure for reissue of forfeited shares

16. Anupam, Binoy and Chandan were partners in a firm sharing profits in the ratio of 2: 3: 5. On 31^st March, 2014, their Balance Sheet was as follows:

Balance Sheet

Anupam died on 1^st October, 2014. It was agreed between his executors and the remaining partners that:

Prepare Anupam’s Capital Account as on the date of his death.    5

Solution:

Anupam’s Capital A/c

Working Note:

Interest on Capital = 60,000 x 10/100 x 6/12 = 3,000

Profit of Anupam’s = 40,000 x 2/10 x 6/12 = 4,000

Goodwill = 30,000 + 40,000 + 40,000 + 40,000/4 x 3

= 1,50,000/4 x 3

= 1,12,500

Gaining Ratio = 3/8 – 3/10 : 5/8 – 5/10

= 15 – 12/40 : 25 – 20/40

= 3/40 : 5/40

\Binoy’s Share = 3/40 x 1,12,500 = 8,437.5

Chandan’s Share = 5/40 x 1,12,500 = 14,062.5

And Reserve of Anupam’s = 12,000 x 2/10 = 2,400

Or

What are the causes of retirement of a Partner from a Partnership firm (any five causes)            1x5=5

Ans. A partner may retire from the firm for various reasons such as old age, bad health, strain relationship with other partners, financial problems, residence shifting or any other reasons. A partner may quit the firm with the consent of all the partners or when there is an express agreement to this effect.

17. R, M and H were in partnership sharing profits and losses in the ratio of 8: 5: 3 respectively. The firm’s balance sheet as on 31^st March, 2015 was as under:

Balance Sheet

It was resolved to dissolve the partnership as on that date. The assets were realised as follows:

Prepare Realisation Account.                      5

Solution:

Realisation A/c

Or

What do you mean by dissolution of a Partnership? State three grounds for dissolution of Partnership.       2+3=5

Ans. The dissolution of partnership between all the partners of a firm is called the "dissolution of the firm". A firm may be dissolved with the consent of all the partners or in accordance with a contract between the partners. The Indian Partnership Act, 1932 provides that a partnership firm may be dissolved in any of the following modes:

i) Compulsory Dissolution: A firm is dissolved compulsorily by the adjudication of all the partners or of all the partners but one as insolvent, or by the happening of any event which makes it unlawful for the business of the firm to be carried on or for the partners to carry it on in partnership.

ii) Dissolution on the Happening of Certain Contingencies: Subject to contract between the partners, a firm is dissolved:

iii) Dissolution by Notice of Partnership at Will: Where the partnership is at will, the firm may be dissolved by any partner giving notice in writing to all the other partners of his intention to dissolve the firm. The firm is dissolved as from the date mentioned in the notice as the date of dissolution or, if no date is so mentioned, as from the date of the communication of the notice.

18. Give the new format of the Balance Sheet of a Company (main headings only) as per the requirements of revised Schedule – VI of the Companies Act, 1956.            5

Ans: Refer Q.N. 16 , asked in 2012 exam

Or

How would you compute the amount due to a deceased Partner’s Executor?                     5

Ans: The death may come at any time. On the death of a partner, the legal heirs of the deceased partners are entitled to get the amount due to the deceased partner as per the provisions of partnership deed. On the death of a partner, the legal heirs or representatives are entitled to get the following:

The following specimen of deceased partner’s capital will help to find out the amount due to the deceased partner.

Amount Due to Deceased Partner (Sec. 37 of the partnership act)

The amount due to the deceased partner is transferred to a loan account opened in the name of executor of the deceased partner and payable by the existing partners. The agreement normally provides for the interest payable on the loan and the conditions for the repayment of such loan. In the absence of any agreement, it is provided in sec. 37 of partnership act that the estate of deceased partner has the option either to claim interest on the amount due @6% p.a. or to such a share of the subsequent profits as may be attributable to the use of his share of the property of the firm.

19. Following is the Trial Balance of SUDIP AND PRADIP as on 31^st March, 2015:      8

Prepare the Profit & Loss Account and the Profit & Loss Appropriation Account of the firm for the year ended 31^st March, 2015 and a Balance Sheet as on that date after taking into consideration the following additional information:

Solution:

Profit & Loss A/c

For the year ended 31^st March, 2015

Profit & Loss Appropriation A/c

For the year ended 31^st March, 2015

Partner’s Capital A/c

Balance Sheet

As on 31^st March, 2015

20. Assam Tea Ltd. has an authorized capital of Rs. 10, 00,000/- divided into 1, 00,000 equity shares of Rs. 10/- each. The directors decided to issue 50,000 shares to the public at a premium of 10% payable as follows:

On Application Rs. 3/-

On Allotment (including premium) Rs. 5/-

And the balance on 1^st and final call.

The company received applications for 60,000 shares. The directors decided to reject the excess applications and the money thereon was refunded. All the shares were duly subscribed for, called up and paid up. Give Journal entries and prepare a Cash Book in the books of the Company.    8

Solution: Refer Q.N.20, Asked in 2014 exam

Or

Write short notes on:                     2x4=8

21. Tata Motors Ltd. invited applications for the issue of 3,000, 10% debentures of Rs. 100/- each at a discount of 10% payable Rs. 30/- on application, Rs. 30/- on allotment (after deducting discount) and the balance on first and final call. All the debentures were subscribed and the debenture money was duly called and paid up. Give Journal entries and show how Debentures Account will be shown in the Balance Sheet of the Company.     8

Solution:

Journal Entries for Tata Motors Ltd.

Balance Sheet

Or

Give the accounting entries for issue of debentures under different situations with imaginary figures. (Any four situations)       2x4=8

Ans:

Journal Entries

In the books of _______________

22. A and B are two partners sharing profits and losses in the ratio of 3: 2. Their Balance Sheet as on 31^st March, 2015 was as follows:

On 01-4-2015, C was admitted as a new partner for 1/4^th share in the future profits on the following conditions:

Give Journal entries and prepare the Balance Sheet of the firm after C’s admission.   6+2=8

Solution:

Journal Entries

In the books of firm

Balance Sheet

As on 31/3/2015

Working Note:

A : B = 3 : 2

C’s share = 1/4

Let the Total share be 1

\C’s share = 1 – 1/4 = 3/4

\A’s share = 3/4 x 3/5 = 9/20

B’s share = 3/4 x 2/5 = 6/20

\New Ratio = 9 : 6 : 5

\Sacrificing Ratio = 3/5 – 9/16 : 2/5 – 6/16

= 48 – 45/80 : 32 – 30/80

= 3 : 2

\A’s share = 3/5 x 6,000 = 3,600

B’s share = 2/5 x 6,000 = 2,400

Or

Give the Accounting entries relating to forfeiture and re-issue of shares with imaginary figures.          8

X Ltd. company forfeited 800 shares of Rs.10 each issued at par for non-payment of 1^st call Rs.2 and final call Rs.3 each. Out of these, 500 shares are re-issued at 10% discount. Give journal entries in the books of the company.         3

Solution:

Journal Entries

In the books of X Ltd.