Board Paper of Class 12-Commerce 2016 Accountancy (SET 1) - Solutions
General Instructions
1) This question paper contains three sections: A, B and C.
2) Section A contains two parts- Part I and Part II.
3) Part I of Section A is compulsory and attempt any 4 questions from Part II of Section A.
4) Attempt only 2 questions from either Section B or from Section C.
Section A
i. This section consists of 8 questions.
ii. Question No. 1 carrying 12 marks from Part I is compulsory.
iii. Attempt any 4 questions from question nos. 2 to 8 carrying 12 marks each.
iv. This whole section is of 60 marks in total.
Section B
i. This section consists of 3 questions.
ii. Attempt any 2 questions from question nos. 9 to 11 carrying 10 marks each.
iv. This whole section is of 20 marks in total.
- Question 1
Answer briefly each of the following questions: [6 × 2 = 12 Marks]
(i) What is a contingent liability? How are contingent liabilities shown in the Balance Sheet of a company prepared as per Schedule III of the Companies Act 2013?
(ii) Why is abnormal loss not recorded in the books of a Joint Venture?
(iii) Give the formula for calculating the outgoing partner’s share in the interim profits of the firm, on the basis of sales made by the firm.
(iv) How is Workmen Compensation Fund, shown in the Balance Sheet of a partnership firm, treated at the time of its dissolution?
(v) Give any two differences between Reserve Capital and Capital Reserve.
(vi) Give the adjusting entry and closing entry for interest on debentures due to the debenture holders of a company. VIEW SOLUTION
- Question 2
Anil and Saji entered into a joint venture to buy and sell old machines. They decided to share profit and losses in the ratio of 3: 2.
[12 Marks]
Anil purchased 200 machines at Rs 3,000 each and sent them to Saji for sale.
Anil incurred Rs 26,000 on freight and transit insurance.
Saji took delivery of the machines and incurred Rs 24,000 as clearing charges and Rs 6,000 as selling expenses.
Anil drew a bill on Saji for Rs 4,00,000 which was accepted by Saji. The bill was discounted by Anil for Rs 3,90,000 with the bank.
Saji was able to sell 190 machines at Rs 3,850 per machine.
The unsold machines were taken by Anil for his next venture at the original cost plus proportionate non-recurring expenses less 10%.
Saji was entitled to a commission of 2% on the sales made by him.
The co-venturers settled their accounts by means of a bank draft.
It was decided that Anil would maintain a record of all the transactions.
You are required to pass journal entries in the books of Anil. VIEW SOLUTION
- Question 3
During the year 2014-15, A.B.C. Ltd. Issued 10,000 Equity shares of Rs 50 each at Rs 55 per share, payable as follows: [12 Marks]
On Application Rs 15 On Allotment Rs 20 (including premium Rs 5) On 1st and Final Call Rs 20
All the issued shares were subscribed for by the public.
On shareholder holding 500 shares did not pay the amount due on allotment and his shares were immediately forfeited.
Another shareholder holding 100 shares paid the amount of the 1st and Final Call with allotment.
After the company had made the 1st and Final Call, 200 of the forfeited shares were reissued as fully called up at Rs 45 per share.
The share issue expenses were Rs 7,000 which were written off at the end of the year.
You are required to pass journal entries in the books of the company for the year ending 31st March, 2015. VIEW SOLUTION
- Question 4
During the year 2014-15, Anderson Ltd. issued 12% Debentures of Rs 100 each, as per the details given below: [12 Marks]
(a) 900 Debentures issued as collateral security to a bank against a loan of Rs 60,000.
(b) The underwriters were to be paid a commission of Rs 48,000, 25% of the amount was paid to them in cash and the balance was paid by the issue of Debentures at a discount of 10% to be redeemed at par.
(c) A machine was purchased for Rs 2,18,500. The vendor was paid by the issue of Debentures at a premium of 15% to be redeemed at par.
(d) 5,000 Debentures were issued to the public at 5% premium, to be redeemed at a premium of 5%.
The company wrote off all capital losses arising from the issue of Debentures at the end of the year from its capital profits and if need be from its revenue profits.
You are required to journalize the above transactions in the books of Anderson Ltd. VIEW SOLUTION
- Question 5
Divya and Pooja are partners in a firm, sharing profits and losses in the ratio of 3:2. On 31st March, 2015, their Balance Sheet was as under: [12 Marks]
Balance Sheet of Divya and Poojaas at 31st March, 2015LiabilitiesAmount(Rs)AssetsAmount(Rs)Sundry Creditors9,800Goodwill16,000General Reserve23,400Land and Building20,000Profit and Loss A/c4,000Investments66,000Investment Fluctuation Fund12,600Sundry Debtors18,600Capital A/cBills Receivables7,400Divya60,000Cash in Hand11,100Pooja40,0001,00,000Advertisement Suspense A/c10,7001,49,8001,49,800
The partners decided that with effect from 1st April, 2015, they would share profits and losses equally.
For this purpose, they decided that:
(a) Investments to be valued at Rs 60,000.
(b) Goodwill to be valued at Rs 24,000.
(c) General Reserve not to be distributed between the partners.
You are required to :
(i) Pass journal entries
(ii) Prepare the revised Balance Sheet of the firm. VIEW SOLUTION
- Question 6
(a) Pinnacle Instruments Ltd. registered itself with a capital of Rs 20,00,000 divided into Equity Shares of Rs 100 each. [9 Marks]
On 1st June, 2014, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery.
The remaining shares were issued to the public at par.
Till the date of the Balance Sheet, the Directors had called from the public, 60% of the nominal value of the shares.
The amount called was received by the company.
You are required to prepare as at 31st March, 2015:
(i) The Balance Sheet of Pinnacle Instruments Ltd. as per Schedule III of the Companies Act, 2013.
(ii) Notes to Accounts.
(b) Under which heads and sub-heats will the following items appear in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013:
(i) Public Deposits
(ii) Calls-in-Advance
(iii) Building under construction VIEW SOLUTION
- Question 7
Shankar and Manu are partners in a firm. On 1st April, 2014, their fixed capital accounts showed a balance of Rs 2,00,000 and Rs 4,00,000 respectively. [12 Marks]
On this date, their current account balances were Rs 50,000 and Rs 1,00,000 respectively. On 1st January, 2015, Shankar introduced additional capital of Rs 2,00,000 while Manu gave a loan of Rs 1,50,000 to the firm.
The clauses of their partnership deed provided for:
(a) Interest on capital to be allowed at the rate of 10% per annum.
(b) Interest on drawings to be charged at the rate of 12% per annum.
(c) Profits to be shared by them in the ratio of 3:2.
(d) 10% of the correct net profit to be transferred to General Reserve.
During the financial year 2014-15, both partners withdrew Rs 6,000 each at the beginning of every quarter.
The net profit of the firm, before any interest, for the financial year 2014-15 was Rs 5,00,000.
You are required to prepare for the year 2014-15:
(i) Profit and Loss Appropriation Account.
(ii) Partners’ Fixed Capital Accounts.
(iii) Partners’ Current Accounts.
(iv) Partner’s Loan Account. VIEW SOLUTION
- Question 8
Pihu, Geeta and Nita are partners in a firm, sharing profits and losses in the ratio of 3:2:1. On 31st March, 2015, their Balance Sheet was as under: [12 Marks]
Balance Sheet of Pihu, Geeta and Nita
as at 31st March, 2015Liabilities Amount (Rs) Assets Amount (Rs) Sundry Creditors 15,000 Cash at Bank 16,000 General Reserve 9,000 Sundry Debtors 25,000 Capital A/c Less: Provision for Doubtful Debts(1,300) 23,700 Pihu79,000 Stock 14,300 Geeta70,000 Plant and Machinery 60,000 Nita61,000 2,10,000 Land and Building 1,20,000 2,34,000 2,34,000
Nita, retires on 1st April, 2015, subject to the following adjustments:
(a) Land and building to be reduced by 10%
(b) Goodwill to be valued at Rs 54,000.
(c) Provision for Doubtful Debts to be raised to 10% of the debtors, the excess provision being created from General Reserve. The balance of the General Reserve to be distributed amongst the partners.
(d) Creditors of Rs 3,000 were paid by Pihu for which she is not to be reimbursed.
(e) The continuing partners to share profits and losses in future in the ratio of 5:4.
(f) Nita to be paid Rs 29,800 on retirement and the remaining amount in two equal annual instalments together with interest @ 10% per annum on the outstanding balance. The first instalment of Nita’s loan to be paid on 31st March, 2016.
You are required to prepare:
(i) Revaluation Account
(ii) Partners' Capital Accounts.
(iii) Nita’s Loan Account till it is finally closed. VIEW SOLUTION